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Prosperity Bancshares, Inc.® Reports First Quarter 2015 Earnings

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- First quarter 2015 earnings per share (diluted) increased 4.0% to $1.05 compared with the first quarter 2014 - Net income increased $6.504 million or 9.7% compared with the first quarter 2014 - Nonperforming assets remain low at 0.19% of first quarter average earning assets - Loans increased $1.414 billion or 18.2% compared with the first quarter 2014 - Deposits increased $2.101 billion or 13.6% compared with the first quarter 2014 - Named to the 2014 Keefe, Bruyette & Woods Honor Roll

April 24, 2015 6:03 AM EDT

HOUSTON, April 24, 2015 /PRNewswire/ -- Prosperity Bancshares, Inc.® (NYSE: PB), the parent company of Prosperity Bank® (collectively, "Prosperity"), reported net income for the quarter ended March 31, 2015 of $73.641 million, an increase of $6.504 million or 9.7%, compared with $67.137 million in net income for the quarter ended March 31, 2014. Additionally, diluted earnings per share increased 4.0% to $1.05 per diluted common share for the quarter ended March 31, 2015 compared with $1.01 per diluted common share for the same period in 2014.

"Despite a lot of press and articles concerning the demise of the Texas and Oklahoma economies due to the lower price of oil, we are not experiencing this as evidenced by the loan growth we had in our Houston market and other major metropolitan areas in Texas.  Although jobs are being reduced in the oil related fields, we still see good economics in other areas.  People continue to move to Texas and Oklahoma because of the states' friendly business climate with regulation and legislation favoring business and, in Texas, no state income taxes," said David Zalman, Prosperity's Chairman and Chief Executive Officer.   

"Most forecasters are projecting the Texas population to double in size by the year 2050.  We believe that the Texas economy is much more diversified than it was in 1980, and that resiliency is showing.  In 1980, the population in Texas was 14.2 million people, and today it is 27 million people.  In 1980, the workforce was 7 million people, and today it is 13 million people. In conclusion, we believe our market areas in Texas and Oklahoma are, and will be, dynamic growth markets into the future," continued Zalman.

"I am pleased to announce Prosperity Bancshares' inclusion in the 2014 Keefe Bruyette & Woods' Honor Roll based on our strong performance over the past ten years.  This is the tenth year that our company has received this award.  I would like to thank our whole team once again for a job well done," concluded Zalman.

Results of operations for the three months ended March 31, 2015

For the three months ended March 31, 2015, net income was $73.641 million compared with $67.137 million for the same period in 2014.  Net income per diluted common share was $1.05 for the three months ended March 31, 2015 compared with $1.01 for the same period in 2014.  Annualized returns on average assets, average common equity and average tangible common equity for the three months ended March 31, 2015 were 1.37%, 8.98% and 21.84%, respectively.  Prosperity's efficiency ratio (excluding credit loss provisions, net gains and losses on the sale of assets and taxes) was 41.83% for the three months ended March 31, 2015.

Net interest income before provision for credit losses for the quarter ended March 31, 2015, increased 13.4% to $162.905 million compared with $143.691 million during the same period in 2014.  The increase was primarily due to a 14.5% increase in average interest-earning assets for the same period.  Linked quarter net interest income before provision for credit losses decreased $14.846 million or 8.4% to $162.905 million compared with $177.751 million during the three months ended December 31, 2014. This was primarily due to an $8.943 million decrease in loan discount accretion. Additionally, interest expense was impacted during the fourth quarter 2014 by a $2.428 million credit to interest expense recorded after finalizing the fair value adjustments for certificates of deposit acquired from F&M Bancorporation Inc. and its wholly-owned subsidiary, The F&M Bank & Trust Company (collectively, "F&M"), and FVNB Corp. and its wholly-owned subsidiary, First Victoria National Bank. The net interest margin on a tax equivalent basis decreased to 3.57% for the three months ended March 31, 2015, compared with 3.62% for the same period in 2014 and 3.89% for the three months ended December 31, 2014.  Excluding purchase accounting adjustments, the net interest margin on a tax equivalent basis decreased on a linked quarter basis from 3.25% for the quarter ended December 31, 2014 to 3.17% for the quarter ended March 31, 2015. This was primarily due to liquidity from additional deposits being invested in securities at a lower yield than the average loan yield.  

Noninterest income decreased $243 thousand or 0.8% to $28.421 million for the three months ended March 31, 2015, compared with $28.664 million for the same period in 2014.  On a linked quarter basis, noninterest income decreased $959 thousand or 3.3% compared with the quarter ended December 31, 2014.

Noninterest expense increased $8.368 million or 11.8% to $79.462 million for the three months ended March 31, 2015, compared with $71.094 million for the same period in 2014. This increase was primarily due to increased salary and benefits expense, increased regulatory assessments and FDIC insurance and increased operational expenses associated with the addition of F&M.  On a linked quarter basis, noninterest expense decreased $4.574 million or 5.4%, compared with the quarter ended December 31, 2014. This was primarily due to decreases in most categories of noninterest expense and a decrease in depreciation expense resulting from finalized fair value adjustments recorded on building and equipment acquired from F&M.

Loans at March 31, 2015 were $9.166 billion, an increase of $1.414 billion or 18.2%, compared with $7.752 billion at March 31, 2014, primarily due to the acquisition of F&M. Linked quarter loans decreased $78.178 million or 0.8% from $9.244 billion at December 31, 2014. 

Deposits at March 31, 2015 were $17.561 billion, an increase of $2.101 billion or 13.6% compared with $15.460 billion at March 31, 2014, primarily due to the acquisition of F&M.  Linked quarter deposits decreased $131.806 million or 0.7% from $17.693 billion at December 31, 2014. 

Average loans increased $1.433 billion or 18.5% to $9.189 billion for the quarter ended March 31, 2015, compared with $7.756 billion for the same period in 2014.  On a linked quarter basis, average loans decreased $135.950 million or 1.5% from $9.325 billion for the quarter ended December 31, 2014. Average deposits increased $2.195 billion or 14.3% to $17.576 billion for the quarter ended March 31, 2015, compared with $15.382 billion for the same period of 2014. On a linked quarter basis, average deposits increased $458.744 million or 2.7% from $17.118 billion for the quarter ended December 31, 2014.  

The table below provides detail on loans acquired and deposits assumed in the acquisition of F&M completed on April 1, 2014:

 

Balance Sheet Data (at period end)

(In thousands)

Mar 31, 2015

Dec 31, 2014

Sep 30, 2014

Jun 30, 2014

Mar 31, 2014

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

Loans acquired (including new production since acquisition date):

   F&M

$             1,139,849

$             1,224,498

$             1,451,075

$            1,502,836

$                             -

   All other loans

8,026,156

8,019,685

7,917,813

7,805,326

7,752,400

Total loans

$             9,166,005

$             9,244,183

$             9,368,888

$            9,308,162

$                7,752,400

Deposits assumed (including new deposits since acquisition date):

   F&M

$             1,705,203

$             2,063,229

$             1,905,233

$            2,090,468

$                             -

   All other deposits

15,856,149

15,629,929

15,108,794

15,190,587

15,460,057

Total deposits

$           17,561,352

$           17,693,158

$           17,014,027

$          17,281,055

$              15,460,057

 

As reflected in the table above, loan and deposit growth was impacted by the acquisition of F&M.  Excluding loans acquired in the acquisition and new production at the acquired banking centers since the acquisition date, loans at March 31, 2015 increased $273.756 million or 3.5% compared with March 31, 2014 and increased $6.471 million or 0.1% (0.3% annualized) on a linked quarter basis. Excluding deposits assumed in the acquisition and new deposits generated at the acquired banking centers since the acquisition date, deposits at March 31, 2015 increased $396.092 million or 2.6% compared with March 31, 2014 and increased $226.220 million or 1.4% (5.8% annualized) on a linked quarter basis.

At March 31, 2015, Prosperity had $21.607 billion in total assets, $9.166 billion in loans and $17.561 billion in deposits. Assets, loans and deposits at March 31, 2015 increased by 14.2%, 18.2% and 13.6%, respectively, compared with their respective levels at March 31, 2014.

Asset Quality

Nonperforming assets totaled $35.376 million or 0.19% of quarterly average earning assets at March 31, 2015, compared with $18.696 million or 0.11% of quarterly average earning assets at March 31, 2014, and $36.919 million or 0.20% of quarterly average earning assets at December 31, 2014.  The allowance for credit losses was 0.88% of total loans at March 31, 2015 and 0.87% of total loans at both March 31, 2014 and December 31, 2014.  Excluding loans acquired that are accounted for under ASC Topics 310-20 and 310-30, the allowance for credit losses was 1.12% of remaining loans as of March 31, 2015, compared with 1.18% at March 31, 2014 and 1.14% at December 31, 2014.  Refer to the "Notes to Selected Financial Data" at the end of this Earnings Release for a reconciliation of this non-GAAP (generally accepted accounting principles) financial measure. 

The provision for credit losses was $1.250 million for the three months ended March 31, 2015 compared with $600 thousand for the three months ended March 31, 2014 and $6.350 million for the three months ended December 31, 2014. 

Net charge offs were $1.049 million for the three months ended March 31, 2015 compared with $786 thousand for the three months ended March 31, 2014 and $3.201 million for the three months ended December 31, 2014.

Conference Call

Prosperity's management team will host a conference call on Friday, April 24, 2015 at 10:30 a.m. Eastern Time (9:30 a.m. Central Time) to discuss Prosperity's first quarter 2015 earnings. Individuals and investment professionals may participate in the call by dialing 877-883-0383. The elite entry number is 8937576.

Alternatively, individuals may listen to the live webcast of the presentation by visiting Prosperity's website at http://www.prosperitybankusa.com.  The webcast may be accessed directly from Prosperity's home page by clicking the "Investor Relations" tab and then the "Presentations & Calls" link.

Non-GAAP Financial Measures

Prosperity's management uses certain non−GAAP financial measures to evaluate its performance. Specifically, Prosperity reviews tangible book value per share, return on average tangible common equity and the tangible equity to tangible assets ratio.  As a result of acquisitions, and the related purchase accounting adjustments, Prosperity uses certain non-GAAP measures and ratios that exclude the impact of these items to evaluate its allowance for credit losses to total loans (excluding acquired loans accounted for under FASB Accounting Standards Codification ("ASC") Topics 310-20, "Receivables-Nonrefundable Fees and Other Costs" and 310-30, "Receivables-Loans and Debt Securities Acquired with Deteriorated Credit Quality").  Prosperity has included in this Earnings Release information related to these non-GAAP financial measures for the applicable periods presented.  Please refer to the "Notes to Selected Financial Data" at the end of this Earnings Release for a reconciliation of these non-GAAP financial measures.

Dividend

Prosperity Bancshares, Inc. ("Bancshares") declared a second quarter cash dividend of $0.2725 per share, to be paid on July 1, 2015 to all shareholders of record as of June 15, 2015.

Capital Management

The Basel III Capital Rules adopted by the federal regulatory authorities in 2013 substantially revised the risk-based capital requirements applicable to Bancshares and Prosperity Bank. The Basel III Capital Rules became effective for Prosperity on January 1, 2015, subject to a phase-in period for certain provisions. Among other things, the Basel III Capital Rules introduced a new capital measure called "Common Equity Tier 1," which is a comparison of the sum of certain equity capital components to total risk-weighted assets, and revised the risk-weighting approach of the capital ratios with a more risk-sensitive approach that expanded the risk-weighting categories from the previous Basel I derived categories to a much larger and more risk-sensitive number of categories, depending on the nature of the assets.

In addition, during the first quarter of 2015, Bancshares redeemed all $167.5 million of its outstanding trust preferred securities which, beginning January 1, 2015, are no longer fully includable as tier 1 capital under the Basel III Capital Rules.  These redemptions were funded through dividends from Prosperity Bank.

While Prosperity's capital ratios as of March 31, 2015 reflect both the phase-in provisions of the new Basel III Capital Rules and the redemption of the trust preferred securities, the decrease in capital ratios was primarily attributable to the redemption of the trust preferred securities.

Acquisition of F&M Bancorporation Inc.

On April 1, 2014, Prosperity completed the acquisition of F&M Bancorporation Inc. ("FMBC") and its wholly-owned subsidiary, The F&M Bank & Trust Company ("F&M Bank") headquartered in Tulsa, Oklahoma.  F&M Bank operated 13 banking offices: 9 in Tulsa, Oklahoma and surrounding areas; 3 in Dallas, Texas; and 1 loan production office in Oklahoma City, Oklahoma.  As of March 31, 2014, FMBC, on a consolidated basis, reported total assets of $2.412 billion, total loans of $1.738 billion and total deposits of $2.267 billion.

Pursuant to the terms of the acquisition agreement, Prosperity issued 3,298,022 shares of Prosperity common stock plus $34.240 million in cash for all outstanding shares of FMBC capital stock, which resulted in goodwill of $206.010 million as of March 31, 2015. Additionally, Prosperity recognized $27.140 million of core deposit intangibles as of March 31, 2015.

Prosperity Bancshares, Inc. ®

As of March 31, 2015, Prosperity Bancshares Inc. ® is a $21.607 billion Houston, Texas based regional financial holding company, formed in 1983. Operating under a community banking philosophy and seeking to develop broad customer relationships based on service and convenience, Prosperity offers a variety of traditional loan and deposit products to its customers, which consist primarily of small and medium sized businesses and consumers. In addition to established banking products, Prosperity offers a complete line of services including: Internet Banking services at http://www.prosperitybankusa.com, Retail Brokerage Services, Credit Cards, MasterMoney Debit Cards, 24 hour voice response banking, Trust and Wealth Management, Mortgage Services and Mobile Banking.

Prosperity currently operates 244 full-service banking locations: 61 in the Houston area, including The Woodlands; 30 in the South Texas area including Corpus Christi and Victoria; 36 in the Dallas/Fort Worth area; 22 in the East Texas area; 30 in the Central Texas area including Austin and San Antonio; 34 in the West Texas area including Lubbock, Midland-Odessa and Abilene; 16 in the Bryan/College Station area, 6 in the Central Oklahoma area and 9 in the Tulsa, Oklahoma area.

 

Bryan/College Station Area -

Sachse

Sugar Land

Taft

Bryan

The Colony

SW Medical Center

Victoria

Bryan-29th Street

Turtle Creek

Tanglewood

Victoria-Navarro

Bryan-East

Westmoreland

Uptown

Victoria-North

Bryan-North

Waugh Drive

Yoakum

Caldwell

Fort Worth -

Westheimer

Yorktown

College Station

Haltom City

West University

Crescent Point

Keller

Woodcreek

West Texas Area -

Hearne

Roanoke

Abilene -

Huntsville

Stockyards

Other Houston Area

Antilley Road

Madisonville

Locations -

Barrow Street

Navasota

Other Dallas/Fort Worth

Angleton

Cypress Street

New Waverly

Locations -

Bay City

Judge Ely

Rock Prairie

Arlington

Beaumont

Mockingbird

Southwest Parkway

Azle

Cinco Ranch

Tower Point

Ennis

Cleveland

Lubbock -

Wellborn Road

Gainesville

East Bernard

4th Street

Glen Rose

El Campo

66th Street

Central Texas Area -

Granbury

Dayton

82nd Street

Austin -

Mesquite

Galveston

86th Street

183

Muenster

Groves

98th Street

Allandale

Sanger

Hempstead

Avenue Q

Cedar Park

Waxahachie

Hitchcock

North University

Congress

Weatherford

Katy

Texas Tech Student Union

Lakeway

Katy-Spring Green

Liberty Hill

East Texas Area -

Liberty

Midland -

Northland

Athens

Magnolia

Wadley

Oak Hill

Blooming Grove

Magnolia Parkway

Wall Street

Research Blvd

Canton

Mont Belvieu

Westlake

Carthage

Nederland

Odessa -

Corsicana

Needville

Grandview

Other Central Texas Locations -

Crockett

Rosenberg

Grant

Bastrop

Eustace

Shadow Creek

Kermit Highway

Canyon Lake

Gilmer

Spring

Parkway

Dime Box

Grapeland

Sweeny

Dripping Springs

Gun Barrel City

The Woodlands-I-45

Other West Texas Locations -

Elgin

Jacksonville

The Woodlands-Research Forest

Big Spring

Flatonia

Kerens

Tomball

Brownfield

Georgetown

Longview

Waller

Brownwood

Gruene

Mount Vernon

West Columbia

Cisco

Kingsland

Palestine

Wharton

Comanche

La Grange

Rusk

Winnie

Early

Lexington

Seven Points

Wirt

Floydada

New Braunfels

Teague

Gorman

Pleasanton

Tyler-Beckham

South Texas Area -

Levelland

Round Rock

Tyler-South Broadway

Corpus Christi -

Littlefield

San Antonio

Tyler-University

Airline

Merkel

Schulenburg

Winnsboro

Calallen

Plainview

Seguin

Carmel

San Angelo

Smithville

Houston Area -

Northwest

Slaton

Thorndale

Houston -

Saratoga

Snyder

Weimar

Aldine

Timbergate

Water Street

Oklahoma

Dallas/Fort Worth Area -

Bellaire

Central Oklahoma-

Dallas -

Beltway

Other South Texas

23rd Street

Abrams Centre

Clear Lake

Locations -

Edmond

Balch Springs

Copperfield

Alice

Expressway

Camp Wisdom

Cypress

Aransas Pass

I-240

Cedar Hill

Downtown

Beeville

Memorial

Dallas – Central Expressway

Eastex

Colony Creek

Norman

Forest Park

Fairfield

Cuero

Frisco

First Colony

Edna

Tulsa-

Frisco-West

Gessner

Goliad

Garnett

Kiest

Gladebrook

Gonzales

Harvard

McKinney

Heights

Hallettsville

Memorial

McKinney-Stonebridge

Highway 6 West

Kingsville

Owasso

Midway

Little York

Mathis

Sheridan

Northwest Highway

Medical Center

Padre Island

S. Harvard

Plano

Memorial Drive

Palacios

Utica Square

Preston Forest

Northside

Port Lavaca

Utica Tower

Preston Road

Pasadena

Portland

Yale

Red Oak

Pecan Grove

Rockport

River Oaks

Sinton

 

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: This release contains, and the remarks by Prosperity's management on the conference call may contain, forward-looking statements within the meaning of the securities laws that are based on current expectations, assumptions, estimates and projections about Prosperity and its subsidiaries.  These forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties, many of which are outside of Prosperity's control, which may cause actual results to differ materially from those expressed or implied by the forward-looking statements.  These risks and uncertainties include but are not limited to whether Prosperity can: successfully identify acquisition targets and integrate the businesses of acquired companies and banks; continue to sustain its current internal growth rate or total growth rate; provide products and services that appeal to its customers; continue to have access to debt and equity capital markets; and achieve its sales objectives.  Other risks include, but are not limited to: the possibility that credit quality could deteriorate; actions of competitors; changes in laws and regulations (including changes in governmental interpretations of regulations and changes in accounting standards); a deterioration or downgrade in the credit quality and credit agency ratings of the securities in Prosperity's securities portfolio; customer and consumer demand, including customer and consumer response to marketing; effectiveness of spending, investments or programs; fluctuations in the cost and availability of supply chain resources; economic conditions, including currency rate fluctuations and interest rate fluctuations; and weather.  These and various other factors are discussed in Prosperity's Annual Report on Form 10-K for the year ended December 31, 2014 and other reports and statements Prosperity has filed with the SEC. Copies of the SEC filings for Prosperity Bancshares® may be downloaded from the Internet at no charge from http://www.prosperitybankusa.com.

 

Prosperity Bancshares, Inc.®

Financial Highlights (Unaudited)

(In thousands)

Mar 31, 2015

 Dec 31, 2014 

 Sep 30, 2014 

 Jun 30, 2014 

 Mar 31, 2014 

Balance Sheet Data

 (at period end)

Total loans

$          9,166,005

$          9,244,183

$          9,368,888

$          9,308,162

$          7,752,400

Investment securities(A)

9,579,496

9,045,776

8,845,909

8,851,235

8,561,337

Federal funds sold 

1,639

569

484

3,630

382

Allowance for credit losses

(80,963)

(80,762)

(77,613)

(73,266)

(67,096)

Cash and due from banks

352,642

677,285

330,952

509,853

349,860

Goodwill

1,881,955

1,874,191

1,892,255

1,894,270

1,672,004

Core deposit intangibles, net

56,458

58,947

34,474

37,072

39,702

Other real estate owned

3,010

3,237

5,504

5,093

7,372

Fixed assets, net

276,468

281,549

283,011

285,751

280,812

Other assets

370,149

402,758

433,450

426,306

316,360

Total assets

$        21,606,859

$        21,507,733

$        21,117,314

$        21,248,106

$        18,913,133

Noninterest-bearing deposits

$          5,038,436

$          4,936,420

$          4,968,867

$          4,921,398

$          4,142,042

Interest-bearing deposits

12,522,916

12,756,738

12,045,160

12,359,657

11,318,015

Total deposits

17,561,352

17,693,158

17,014,027

17,281,055

15,460,057

Other borrowings

331,914

8,724

289,972

200,210

40,451

Securities sold under repurchase agreements

318,418

315,523

358,053

388,342

349,074

Junior subordinated debentures

-

167,531

167,531

167,531

124,231

Other liabilities

93,314

77,971

104,781

90,374

98,566

Total liabilities

18,304,998

18,262,907

17,934,364

18,127,512

16,072,379

Shareholders' equity(B)

3,301,861

3,244,826

3,182,950

3,120,594

2,840,754

Total liabilities and equity

$        21,606,859

$        21,507,733

$        21,117,314

$        21,248,106

$        18,913,133

(A) Includes $5,296, $5,737, $5,756, $6,706 and $7,023 in unrealized gains on available for sale securities for the quarterly periods ending March 31, 2015, December 31, 2014, September 30, 2014, June 30, 2014 and March 31, 2014, respectively.

(B) Includes $3,442, $3,729, $3,741, $4,359 and $4,565 in after-tax unrealized gains on available for sale securities for the quarterly periods ending March 31, 2015, December 31, 2014, September 30, 2014, June 30, 2014 and March 31, 2014, respectively.

 

Prosperity Bancshares, Inc.®

Financial Highlights (Unaudited)

(In thousands)

Three Months Ended

Mar 31, 2015

Dec 31, 2014

Sep 30, 2014

Jun 30, 2014

Mar 31, 2014

Income Statement Data

Interest income:

Loans

$        124,878

$       139,396

$       140,521

$       138,655

$       107,144

Securities(C)

48,562

47,108

46,910

47,670

47,056

Federal funds sold and other earning assets

165

74

35

178

48

Total interest income

173,605

186,578

187,466

186,503

154,248

Interest expense:

Deposits

9,577

7,326

10,240

10,918

9,387

Other borrowings

129

200

225

189

158

Securities sold under repurchase agreements

203

202

245

254

237

Junior subordinated debentures

791

1,099

1,099

1,087

775

Total interest expense

10,700

8,827

11,809

12,448

10,557

Net interest income

162,905

177,751

175,657

174,055

143,691

Provision for credit losses

1,250

6,350

5,000

6,325

600

Net interest income after provision for credit losses

161,655

171,401

170,657

167,730

143,091

Noninterest income:

Nonsufficient funds (NSF) fees

7,918

9,345

9,734

9,099

8,870

Credit card, debit card and ATM card income 

5,638

5,786

5,921

6,030

5,152

Service charges on deposit accounts

4,179

4,263

4,255

4,325

3,609

Trust income

2,009

2,165

2,099

2,044

1,800

Mortgage income

1,148

1,049

1,414

1,208

593

Brokerage income

1,409

1,455

1,743

1,401

1,269

Bank owned life insurance income

1,380

1,392

1,404

1,365

1,028

Net gain on sale of assets

1,379

24

23

1,301

3,310

Other noninterest income

3,361

3,901

3,598

5,824

3,033

Total noninterest income

28,421

29,380

30,191

32,597

28,664

Noninterest expense:

Salaries and benefits

49,966

49,557

52,179

54,126

43,408

Net occupancy and equipment

5,964

6,620

6,801

5,996

5,339

Debit card, data processing and software amortization

3,817

4,553

4,044

4,009

3,184

Regulatory assessments and FDIC insurance

4,354

4,354

4,051

3,886

2,726

Core deposit intangibles amortization

2,490

2,667

2,598

2,630

2,045

Depreciation

2,916

3,491

3,516

3,522

3,201

Communications

2,809

2,993

2,960

2,919

2,737

Other real estate expense

132

363

72

188

396

Net (gain) loss on sale of other real estate

-

(726)

30

(1,404)

60

Other noninterest expense

7,014

10,164

9,289

11,420

7,998

Total noninterest expense

79,462

84,036

85,540

87,292

71,094

Income before income taxes

110,614

116,745

115,308

113,035

100,661

Provision for income taxes

36,973

38,517

38,738

37,529

33,524

Net income available to common shareholders

$          73,641

$         78,228

$         76,570

$         75,506

$         67,137

(C) Interest income on securities was reduced by net premium amortization of $14,144, $13,031, $13,531, $12,837 and $12,280 for the three month periods ended March 31, 2015, December 31, 2014, September 30, 2014, June 30, 2014 and March 31, 2014, respectively. 

 

Prosperity Bancshares, Inc.®

Financial Highlights (Unaudited)

(Dollars and share amounts in thousands, except per share data and market prices)

Three Months Ended

Mar 31, 2015

Dec 31, 2014

Sep 30, 2014

Jun 30, 2014

Mar 31, 2014

Profitability

Net income

$          73,641

$         78,228

$         76,570

$         75,506

$          67,137

Basic earnings per share

$              1.05

$             1.12

$             1.10

$             1.08

$              1.01

Diluted earnings per share

$              1.05

$             1.12

$             1.10

$             1.08

$              1.01

Return on average assets(D) 

1.37%

1.48%

1.45%

1.42%

1.43%

Return on average common equity(D) 

8.98%

9.70%

9.69%

9.75%

9.52%

Return on average tangible common equity(D) (E)

21.84%

23.87%

24.84%

24.06%

24.23%

Tax equivalent net interest margin(F)

3.57%

3.89%

3.85%

3.83%

3.62%

Efficiency ratio(G)

41.83%

40.78%

41.55%

42.90%

42.04%

Liquidity and Capital Ratios

Equity to assets

15.28%

15.09%

15.07%

14.69%

15.02%

Common equity tier 1 capital(H)

12.40%

N/A

N/A

N/A

N/A

Tier 1 risk-based capital

12.40%

(I)

13.80%

13.18%

12.50%

13.85%

Total risk-based capital

13.14%

(I)

14.56%

13.90%

13.18%

14.59%

Tier 1 leverage capital

6.96%

(I)

7.69%

7.40%

6.98%

7.30%

Period end tangible equity to period end tangible assets(E)

6.93%

6.70%

6.55%

6.16%

6.56%

Other Data

Shares used in computed earnings per share

Basic

70,034

69,768

69,751

69,667

66,186

Diluted

70,055

69,796

69,791

69,728

66,280

Period end shares outstanding

70,024

69,780

69,756

69,744

66,261

Cash dividends paid per common share

$          0.2725

$         0.2725

$         0.2400

$         0.2400

$          0.2400

Book value per share

$            47.15

$           46.50

$           45.63

$           44.74

$            42.87

Tangible book value per share(E)

$            19.47

$           18.80

$           18.01

$           17.05

$            17.04

Common Stock Market Price

High

$            55.88

$           61.15

$           63.73

$           67.49

$            67.68

Low

45.01

52.62

55.99

56.04

59.75

Period end closing price

52.48

55.36

57.17

62.60

66.15

Employees – FTE

3,081

3,096

3,057

3,199

2,888

Number of banking centers

244

245

245

247

236

(D) Interim periods annualized.

(E) Refer to the "Notes to Selected Financial Data" at the end of this Earnings Release for a reconcilation of this non-GAAP financial measure.

(F) Net interest margin for all periods presented is calculated on an actual 365 day basis.

(G) Calculated by dividing total noninterest expense, excluding credit loss provisions, by net interest income plus noninterest income, excluding net gains and losses on the sale of assets.  Additionally, taxes are not part of this calculation. 

(H) Common equity tier 1 capital ratio is a new ratio required under the Basel III Capital Rules effective January 1, 2015.

(I)  Calculated pursuant to the phase-in provisions of the Basel III Capital Rules. 

 

 

Prosperity Bancshares, Inc.®

Financial Highlights (Unaudited)

(Dollars in thousands)

YIELD ANALYSIS 

Three Months Ended

Mar 31, 2015

Dec 31, 2014

Mar 31, 2014

Average Balance

Interest Earned/ Interest Paid

Average Yield/ Rate

Average Balance

Interest Earned/ Interest Paid

Average Yield/ Rate

Average Balance

Interest Earned/ Interest Paid

Average Yield/ Rate

Interest-Earning Assets: 

Loans

$                     9,189,380

$ 124,878

5.51%

$   9,325,330

$ 139,396

5.93%

$   7,755,997

$ 107,144

5.60%

Investment securities

9,241,434

48,562

2.13%

(J)

8,835,176

47,108

2.12%

(J)

8,466,946

47,056

2.25%

(J)

Federal funds sold and other earning assets

267,672

165

0.25%

143,705

74

0.20%

101,700

48

0.19%

  Total interest-earning assets 

18,698,486

$ 173,605

3.77%

18,304,211

$ 186,578

4.04%

16,324,643

$ 154,248

3.83%

Allowance for credit losses 

(80,681)

(76,948)

(67,222)

Noninterest-earning assets 

2,871,702

2,883,029

2,550,893

  Total assets

$                   21,489,507

$ 21,110,292

$ 18,808,314

Interest-Bearing Liabilities: 

Interest-bearing demand deposits

$                     4,178,883

$     2,583

0.25%

$   3,546,825

$     2,068

0.23%

$   3,554,366

$     2,132

0.24%

Savings and money market deposits

5,542,081

3,405

0.25%

5,442,568

3,301

0.24%

4,992,442

3,155

0.26%

Certificates and other time deposits 

2,956,038

3,589

0.49%

3,083,047

1,957

0.25%

2,816,701

4,100

0.59%

Other borrowings 

72,118

129

0.73%

168,167

200

0.47%

51,932

158

1.23%

Securities sold under repurchase agreements 

340,469

203

0.24%

323,882

202

0.25%

347,747

237

0.28%

Junior subordinated debentures 

119,408

791

2.69%

167,531

1,099

2.60%

124,231

775

2.53%

  Total interest-bearing liabilities 

13,208,997

10,700

0.33%

(K)

12,732,020

8,827

0.28%

(K)

11,887,419

10,557

0.36%

(K)

Noninterest-bearing liabilities: 

Noninterest-bearing demand deposits

4,899,279

5,045,097

4,018,094

Other liabilities 

100,648

106,222

82,288

  Total liabilities

18,208,924

17,883,339

15,987,801

Shareholders' equity 

3,280,583

3,226,953

2,820,513

  Total liabilities and shareholders' equity 

$                   21,489,507

$ 21,110,292

$ 18,808,314

Net interest income and margin 

$ 162,905

3.53%

$ 177,751

3.85%

$ 143,691

3.57%

Non-GAAP to GAAP reconciliation:

Tax equivalent adjustment

1,664

1,836

2,052

Net interest income and margin

     (tax equivalent basis)

$ 164,569

3.57%

$ 179,587

3.89%

$ 145,743

3.62%

(J) Yield on securities was impacted by net premium amortization of $14,144, $13,031, and $12,280 for the three month periods ended March 31, 2015, December 31, 2014 and March 31, 2014, respectively.

(K) Total cost of funds, including noninterest bearing deposits, was 0.24%, 0.20% and 0.27% for the three months ended March 31, 2015, December 31, 2014 and March 31, 2014, respectively.

 

 

Prosperity Bancshares, Inc.®

Financial Highlights (Unaudited)

(Dollars in thousands)

Three Months Ended

Mar 31, 2015

Dec 31, 2014

Sep 30, 2014

Jun 30, 2014

Mar 31, 2014

Adjustment to Loan Yield (L)

Interest on loans, as reported

$         124,878

$         139,396

$         140,521

$         138,655

$      107,144

   Purchase accounting adjustment-loan discount accretion

(19,647)

(28,590)

(28,458)

(25,352)

(13,475)

Interest on loans without discount accretion

$         105,231

$         110,806

$         112,063

$         113,303

$        93,669

Average loans

$      9,189,380

$      9,325,330

$      9,381,248

$      9,468,136

$   7,755,997

Loan yield without purchase accounting adjustment

4.64%

4.71%

4.74%

4.80%

4.90%

Loan yield, as reported

5.51%

5.93%

5.94%

5.87%

5.60%

Adjustment to Securities Yield (L)

Interest on securities, as reported

$           48,562

$           47,108

$           46,910

$           47,670

$        47,056

   Purchase accounting adjustment-securities amortization

1,647

1,590

1,466

1,570

1,964

Interest on securities without amortization

$           50,209

$           48,698

$           48,376

$           49,240

$        49,020

Average securities

$      9,241,434

$      8,835,176

$      8,836,309

$      8,748,322

$   8,466,946

Securities yield without purchase accounting adjustment

2.20%

2.19%

2.17%

2.26%

2.35%

Securities yield, as reported

2.13%

2.12%

2.11%

2.19%

2.25%

Adjustment to Time Deposits Yield (L)

Interest on time deposits, as reported

$             3,589

$             1,957

$             4,751

$             5,096

$          4,100

   Purchase accounting adjustment-time deposit amortization

420

2,443

16

16

81

Interest on time deposits without amortization

$             4,009

$             4,400

$             4,767

$             5,112

$          4,181

Average time deposits

$      2,956,038

$      3,083,047

$      3,235,185

$      3,379,819

$   2,816,701

Time deposits yield without purchase accounting adjustment

0.55%

0.57%

0.58%

0.61%

0.60%

Time deposits yield, as reported

0.49%

0.25%

0.58%

0.60%

0.59%

Net Interest Margin (tax equivalent basis, excluding purchase accounting adjustments to yield)

3.17%

3.25%

3.26%

3.31%

3.33%

Net Interest Margin (tax equivalent basis), as reported

3.57%

3.89%

3.85%

3.83%

3.62%

Net income available to common shareholders, as reported

$           73,641

$           78,228

$           76,570

$           75,506

$        67,137

    Less:  Purchase accounting adjustments, net of tax (M)

(12,263)

(19,729)

(17,935)

(15,897)

(7,731)

Net income available to common shareholders, adjusted

$           61,378

$           58,499

$           58,635

$           59,609

$        59,406

 

Acquired Loans Accounted for Under ASC 310-20

Acquired Loans Accounted for Under ASC 310-30

Total Loans Accounted for Under ASC 310-20 and 310-30

Balance at Acquisition Date

Balance at Dec 31, 2014

Balance at Mar 31, 2015

Balance at Acquisition Date

Balance at Dec 31, 2014

Balance at Mar 31, 2015

Balance at Acquisition Date

Balance at Dec 31, 2014

Balance at Mar 31, 2015

Loan marks:

Acquired banks (N)

$            225,589

$          89,105

$          78,289

$            131,906

$          72,270

$          51,647

$            357,495

$        161,375

$        129,936

Acquired portfolio loan balances:

Acquired banks (N)

5,456,934

2,186,111

1,939,609

255,846

129,412

100,973

5,712,780

 (O)

2,315,523

2,040,582

Acquired portfolio loan balances less loan marks

$         5,231,345

$     2,097,006

$     1,861,320

$            123,940

$          57,142

$          49,326

$         5,355,285

$     2,154,148

$     1,910,646

(L)  Non-GAAP financial measure.

(M) Using effective tax rate of 33.4%, 33.0%, 33.6%, 33.2% and 33.3% for the three month periods ended March 31, 2015, December 31, 2014, September 30, 2014, June 30, 2014 and March 31, 2014, respectively.

(N)  Includes Bank of Texas, Bank Arlington, American State Bank, Community National Bank, East Texas Financial Services, Coppermark, FVNB and F&M.

(O)  Actual principal balances acquired.

 

 

Prosperity Bancshares, Inc.®

Financial Highlights (Unaudited)

(Dollars in thousands)

Three Months Ended

Mar 31, 2015

 Dec 31, 2014 

 Sep 30, 2014 

 Jun 30, 2014 

 Mar 31, 2014 

YIELD TREND

Interest-Earning Assets: 

Loans

5.51%

5.93%

5.94%

5.87%

5.60%

Investment securities (P) 

2.13%

2.12%

2.11%

2.19%

2.25%

Federal funds sold and other earning assets

0.25%

0.20%

0.15%

0.30%

0.19%

  Total interest-earning assets 

3.77%

4.04%

4.06%

4.05%

3.83%

Interest-Bearing Liabilities: 

Interest-bearing demand deposits

0.25%

0.23%

0.24%

0.26%

0.24%

Savings and money market deposits

0.25%

0.24%

0.25%

0.26%

0.26%

Certificates and other time deposits 

0.49%

0.25%

0.58%

0.60%

0.59%

Other borrowings

0.73%

0.47%

0.42%

0.54%

1.23%

Securities sold under repurchase agreements

0.24%

0.25%

0.25%

0.27%

0.28%

Junior subordinated debentures 

2.69%

2.60%

2.60%

2.60%

2.53%

  Total interest-bearing liabilities 

0.33%

0.28%

0.36%

0.38%

0.36%

Net Interest Margin 

3.53%

3.85%

3.81%

3.78%

3.57%

Net Interest Margin (tax equivalent)

3.57%

3.89%

3.85%

3.83%

3.62%

(P) Yield on securities was impacted by net premium amortization of $14,144, $13,031, $13,531, $12,837 and $12,280 for the three month periods ended March 31, 2015, December 31, 2014, September 30, 2014, June 30, 2014 and March 31, 2014, respectively.

 

 

Prosperity Bancshares, Inc.®

Financial Highlights (Unaudited)

(Dollars in thousands)

Three Months Ended

Mar 31, 2015

Dec 31, 2014

Sep 30, 2014

Jun 30, 2014

Mar 31, 2014

Balance Sheet Averages

Total loans

$     9,189,380

$    9,325,330

$    9,381,248

$    9,468,136

$     7,755,997

Investment securities

9,241,434

8,835,176

8,836,309

8,748,322

8,466,946

Federal funds sold and other earning assets

267,672

143,705

95,378

234,302

101,700

Total interest-earning assets

18,698,486

18,304,211

18,312,935

18,450,760

16,324,643

Allowance for credit losses

(80,681)

(76,948)

(73,977)

(72,587)

(67,222)

Cash and due from banks

284,395

273,503

267,389

284,432

255,297

Goodwill

1,874,274

1,883,654

1,893,667

1,803,534

1,673,216

Core deposit intangibles, net

57,687

43,157

35,753

38,469

38,754

Other real estate

3,536

4,843

5,405

8,562

7,885

Fixed assets, net

280,515

282,827

285,039

292,075

282,411

Other assets

371,295

395,045

394,509

512,303

293,330

Total assets

$   21,489,507

$  21,110,292

$  21,120,720

$  21,317,548

$   18,808,314

Noninterest-bearing deposits

$     4,899,279

$    5,045,097

$    4,939,388

$    4,735,575

$     4,018,094

Interest-bearing demand deposits

4,178,883

3,546,825

3,399,655

3,568,475

3,554,366

Savings and money market deposits

5,542,081

5,442,568

5,502,326

5,479,978

4,992,442

Certificates and other time deposits

2,956,038

3,083,047

3,235,185

3,379,819

2,816,701

Total deposits

17,576,281

17,117,537

17,076,554

17,163,847

15,381,603

Other borrowings

72,118

168,167

215,222

140,906

51,932

Securities sold under repurchase agreements

340,469

323,882

389,726

382,692

347,747

Junior subordinated debentures

119,408

167,531

167,531

167,531

124,231

Other liabilities

100,648

106,222

109,287

365,169

82,288

Shareholders' equity

3,280,583

3,226,953

3,162,400

3,097,403

2,820,513

Total liabilities and equity

$   21,489,507

$  21,110,292

$  21,120,720

$  21,317,548

$   18,808,314

 

 

Prosperity Bancshares, Inc.®

Financial Highlights (Unaudited)

(Dollars in thousands)

Mar 31, 2015

Dec 31, 2014

Sep 30, 2014

Jun 30, 2014

Mar 31, 2014

Period End Balances

Loan Portfolio

Commercial and other

$    1,851,906

20.2%

$    1,952,945

21.1%

$    2,058,217

22.0%

$   2,139,983

23.0%

$   1,312,405

16.9%

Construction

1,040,845

11.3%

1,026,475

11.1%

1,041,300

11.1%

1,005,099

10.8%

888,985

11.5%

1-4 family residential

2,272,788

24.8%

2,250,251

24.4%

2,210,141

23.6%

2,153,801

23.1%

1,906,480

24.7%

Home equity

269,894

2.9%

271,930

2.9%

269,850

2.9%

267,759

2.9%

263,966

3.4%

Commercial real estate

3,021,656

33.0%

3,030,340

32.8%

3,091,090

33.0%

3,027,945

32.6%

2,709,386

34.9%

Agriculture (includes farmland)

556,839

6.1%

551,646

6.0%

534,672

5.7%

542,360

5.8%

512,857

6.6%

Consumer

152,077

1.7%

160,596

1.7%

163,618

1.7%

171,215

1.8%

158,321

2.0%

Total loans

$    9,166,005

$    9,244,183

$    9,368,888

$   9,308,162

$   7,752,400

Deposit Types

Noninterest-bearing DDA

$    5,038,436

28.7%

$    4,936,420

27.9%

$    4,968,867

29.2%

$   4,921,398

28.5%

$   4,142,042

26.9%

Interest-bearing DDA

4,038,690

23.0%

4,260,038

24.1%

3,359,606

19.7%

3,467,826

20.1%

3,446,375

22.3%

Money market

3,773,011

21.5%

3,680,711

20.8%

3,788,358

22.3%

3,861,339

22.3%

3,468,016

22.4%

Savings

1,828,790

10.4%

1,784,889

10.1%

1,728,676

10.2%

1,707,645

9.9%

1,630,395

10.5%

Certificates and other time deposits

2,882,425

16.4%

3,031,100

17.1%

3,168,520

18.6%

3,322,847

19.2%

2,773,229

17.9%

Total deposits

$  17,561,352

$  17,693,158

$  17,014,027

$ 17,281,055

$ 15,460,057

Loan to Deposit Ratio

52.2%

52.2%

55.1%

53.9%

50.1%

Construction Loans

Single family residential construction

$       356,081

34.1%

$       329,797

32.0%

$       317,307

30.3%

$      316,579

31.2%

$      292,137

32.6%

Land development

89,403

8.5%

84,051

8.2%

89,553

8.5%

88,947

8.8%

73,974

8.2%

Raw land

129,470

12.4%

106,058

10.3%

83,013

7.9%

62,731

6.2%

55,384

6.2%

Residential lots

128,064

12.2%

148,763

14.4%

154,027

14.7%

138,769

13.7%

118,733

13.2%

Commercial lots

92,677

8.9%

89,565

8.7%

86,991

8.3%

93,200

9.2%

99,300

11.1%

Commercial construction and other

249,504

23.9%

272,723

26.4%

317,355

30.3%

312,870

30.9%

257,942

28.7%

Net unaccreted discount

(4,354)

(4,482)

(6,946)

(7,997)

(8,485)

Total construction loans

$    1,040,845

$    1,026,475

$    1,041,300

$   1,005,099

$      888,985

 

 

Prosperity Bancshares, Inc.®

Financial Highlights (Unaudited)

(Dollars in thousands)

Three Months Ended

Mar 31, 2015

Dec 31, 2014

Sep 30, 2014

Jun 30, 2014

Mar 31, 2014

Asset Quality

Nonaccrual loans

$          29,252

$         31,422

$         26,804

$         23,082

$            7,714

Accruing loans 90 or more days past due

2,968

2,193

17,753

335

3,519

Total nonperforming loans

32,220

33,615

44,557

23,417

11,233

Repossessed assets

146

67

21

11

91

Other real estate

3,010

3,237

5,504

5,093

7,372

  Total nonperforming assets

$          35,376

$         36,919

$         50,082

$         28,521

$          18,696

Nonperforming assets:

Commercial and industrial

$          16,830

$         21,418

$         26,172

$         14,434

$            4,748

Construction, land development and other land loans

3,023

1,893

5,998

2,449

4,053

1-4 family residential (including home equity)

5,087

5,232

7,559

6,909

5,435

Commercial real estate (including multi-family residential)

9,736

6,695

9,686

3,970

4,196

Agriculture (including farmland)

281

473

182

140

104

Consumer and other

419

1,208

485

619

160

Total 

$          35,376

$         36,919

$         50,082

$         28,521

$          18,696

Number of loans/properties

166

169

194

179

164

Allowance for credit losses at end of period

$          80,963

$         80,762

$         77,613

$         73,266

$          67,096

Net charge-offs:

Commercial and industrial

$               504

$              318

$                17

$               (64)

$                 81

Construction, land development and other land loans

145

(1)

(28)

115

(17)

1-4 family residential (including home equity)

86

420

70

406

131

Commercial real estate (including multi-family residential)

33

1,732

(6)

5

60

Agriculture (including farmland)

(78)

(13)

(53)

(843)

(81)

Consumer and other

359

745

653

536

612

Total 

$            1,049

$           3,201

$              653

$              155

$               786

Asset Quality Ratios

Nonperforming assets to average earning assets

0.19%

0.20%

0.27%

0.15%

0.11%

Nonperforming assets to loans and other real estate

0.39%

0.40%

0.53%

0.31%

0.24%

Net charge-offs to average loans (annualized)

0.05%

0.14%

0.03%

0.01%

0.04%

Allowance for credit losses to total loans

0.88%

0.87%

0.83%

0.79%

0.87%

Allowance for credit losses to total loans (excluding acquired loans accounted for under ASC Topics 310-20 and 310-30) (E)

1.12%

1.14%

1.14%

1.15%

1.18%

 

 

Prosperity Bancshares, Inc.®Notes to Selected Financial Data (Unaudited)(Dollars and share amounts in thousands, except per share data)

Consolidated Financial Highlights

NOTES TO SELECTED FINANCIAL DATA

Prosperity's management uses certain non−GAAP (generally accepted accounting principles) financial measures to evaluate its performance. Specifically, Prosperity reviews tangible book value per share, return on average tangible common equity and the tangible equity to tangible assets ratio for internal planning and forecasting purposes. In addition, due to the application of purchase accounting, Prosperity uses certain non-GAAP measures and ratios that exclude the impact of these items to evaluate its allowance for credit losses to total loans (excluding acquired loans accounted for under ASC Topics 310-20 and 310-30).  Prosperity has included in this Earnings Release information relating to these non-GAAP financial measures for the applicable periods presented.  Prosperity believes these non-GAAP financial measures provide information useful to investors in understanding Prosperity's financial results and Prosperity believes that its presentation, together with the accompanying reconciliations, provides a complete understanding of factors and trends affecting Prosperity's business and allows investors to view performance in a manner similar to management, the entire financial services sector, bank stock analysts and bank regulators. Further, Prosperity believes that these non-GAAP measures provide useful information by excluding certain items that may not be indicative of its core operating earnings and business outlook.  These non-GAAP measures should not be considered a substitute for GAAP basis measures and results and Prosperity strongly encourages investors to review its consolidated financial statements in their entirety and not to rely on any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names.

 

Three Months Ended

Mar 31, 2015

 Dec 31, 2014 

 Sep 30, 2014 

 Jun 30, 2014 

 Mar 31, 2014 

Return on average tangible common equity:

Net income

$            73,641

$               78,228

$              76,570

$               75,506

$               67,137

Average shareholders' equity

$       3,280,583

$          3,226,953

$         3,162,400

$          3,097,403

$          2,820,513

Less: Average goodwill and other intangible assets

(1,931,961)

(1,926,811)

(1,929,420)

(1,842,003)

(1,711,970)

         Average tangible shareholders' equity

$       1,348,622

$          1,300,142

$         1,232,980

$          1,255,400

$          1,108,543

Return on average tangible common  equity:

21.84%

23.87%

24.84%

24.06%

24.23%

Tangible book value per share:

Shareholders' equity

$       3,301,861

$          3,244,826

$         3,182,950

$          3,120,594

$          2,840,754

Less: Goodwill and other intangible assets

(1,938,413)

(1,933,138)

(1,926,729)

(1,931,342)

(1,711,706)

         Tangible shareholders' equity

$       1,363,448

$          1,311,688

$         1,256,221

$          1,189,252

$          1,129,048

Period end shares outstanding

70,024

69,780

69,756

69,744

66,261

Tangible book value per share:

$              19.47

$                 18.80

$                18.01

$                 17.05

$                 17.04

Period end tangible equity to period end tangible assets ratio:

Tangible shareholders' equity

$       1,363,448

$          1,311,688

$         1,256,221

$          1,189,252

$          1,129,048

Total assets

$     21,606,859

$        21,507,733

$       21,117,314

$        21,248,106

$        18,913,133

Less: Goodwill and other intangible assets

(1,938,413)

(1,933,138)

(1,926,729)

(1,931,342)

(1,711,706)

         Tangible assets

$     19,668,446

$        19,574,595

$       19,190,585

$        19,316,764

$        17,201,427

Period end tangible equity to period end tangible assets ratio:

6.93%

6.70%

6.55%

6.16%

6.56%

Three Months Ended

Mar 31, 2015

 Dec 31, 2014 

 Sep 30, 2014 

 Jun 30, 2014 

 Mar 31, 2014 

Allowance for credit losses to total loans, excluding acquired loans:

Allowance for credit losses

$            80,963

$               80,762

$              77,613

$               73,266

$               67,096

Total loans

$       9,166,005

$          9,244,183

$         9,368,888

$          9,308,162

$          7,752,400

Less: Fair value of acquired loans (acquired portfolio loan balances less loan marks)

$       1,910,646

$          2,154,148

$         2,536,433

$          2,948,999

$          2,086,744

Total loans less acquired loans

$       7,255,358

$          7,090,035

$         6,832,455

$          6,359,163

$          5,665,656

Allowance for credit losses to total loans, excluding acquired loans (non-GAAP basis)

1.12%

1.14%

1.14%

1.15%

1.18%

 

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/prosperity-bancshares-inc-reports-first-quarter-2015-earnings-300071666.html

SOURCE Prosperity Bancshares, Inc.


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