Net income of $95.5 million and diluted earnings per share of $1.02 for fourth quarter 2023; excluding the FDIC special assessment of $19.9 million and merger related expenses, net income was $111.4 million(1) and diluted earnings per share was $1.19(1)
Loans, excluding Warehouse Purchase Program loans, increased $2.259 billion or 12.5% during 2023
Loans, excluding Warehouse Purchase Program loans and loans acquired in the merger of First Bancshares of Texas, Inc, increased $882.7 million or 4.9% during 2023
Noninterest-bearing deposits of $9.8 billion, representing 36.0% of total deposits
Borrowings decreased by $525.0 million during the fourth quarter 2023
Net interest margin increased 3 basis points to 2.75% during the fourth quarter 2023
Allowance for credit losses on loans and on off-balance sheet credit exposure of $368.9 million and allowance for credit losses to total loans, excluding Warehouse Purchase Program, of 1.63%(1)
Nonperforming assets remain low at 0.21% of fourth quarter average interest-earning assets
Pending merger of Lone Star State Bancshares, Inc., Lubbock, Texas
Approved 2024 Stock Repurchase Program covering up to 5% of outstanding common stock
HOUSTON, Jan. 24, 2024 /PRNewswire/ -- Prosperity Bancshares, Inc.® (NYSE: PB), the parent company of Prosperity Bank® (collectively, "Prosperity"), reported net income of $95.5 million for the quarter ended December 31, 2023 compared with $137.9 million for the same period in 2022. Net income per diluted common share was $1.02 for the quarter ended December 31, 2023 compared with $1.51 for the same period in 2022. During the fourth quarter of 2023, Prosperity incurred a Federal Deposit Insurance Corporation ("FDIC") special assessment of $19.9 million, or $0.17(1) per diluted common share net of tax, which was assessed by the FDIC to recover the cost associated with protecting uninsured depositors following the closures of Silicon Valley Bank and Signature Bank in early 2023. Excluding this assessment and merger related expenses, net income was $111.4 million(1) and earnings per diluted common share was $1.19(1) for the fourth quarter of 2023. The annualized return on fourth quarter average assets was 0.98%; excluding the FDIC special assessment, net of tax, and merger related expenses, net of tax, the return was 1.15%. Nonperforming assets remain low at 0.21% of fourth quarter average interest-earning assets. On May 1, 2023, First Bancshares of Texas, Inc. ("First Bancshares") merged with Prosperity Bancshares and FirstCapital Bank of Texas, N.A. ("FirstCapital Bank") merged with Prosperity Bank (collectively, the "Merger").
"We remain excited about the growth and future of our company. Prosperity operates in two of the best economies in the U.S. Even with the recent interest rate increases, economic activity and job growth in Texas and Oklahoma remain solid," said David Zalman, Prosperity's Senior Chairman and Chief Executive Officer.
"Prosperity has a strong capital position that provides us with flexibility in pursuing strategic opportunities, such as mergers and acquisitions and the repurchase of our stock when appropriate. We expect that our net interest margin will continue to expand to our historically normal level as our assets reprice over the next several years, increasing our earnings per share. Further, we have a strong core deposit base, with 36% of our deposits in noninterest-bearing accounts," concluded Zalman.
Results of Operations for the Three Months Ended December 31, 2023
For the three months ended December 31, 2023, net income was $95.5 million(2) or $1.02 per diluted common share compared with $112.2 million(3) or $1.20 per diluted common share for the three months ended September 30, 2023. The three months ended December 31, 2023 was impacted by the FDIC special assessment of $19.9 million and merger related expenses. For the three months ended December 31, 2023, net income was $95.5 million(2) or $1.02 per diluted common share compared with $137.9 million(4) or $1.51 per diluted common share for the same period in 2022. The change was primarily due to an increase in interest expense and an increase in noninterest expense that includes the FDIC special assessment, partially offset by an increase in loan interest income. Annualized returns on average assets, average common equity and average tangible common equity for the three months ended December 31, 2023 were 0.98%, 5.39% and 10.54%(1), respectively.
Excluding the FDIC special assessment, net of tax, and merger related expenses, net of tax, net income was $111.4 million(1) or $1.19(1) per diluted common share for the three months ended December 31, 2023 and annualized returns on average assets, average common equity and average tangible common equity were 1.15%(1), 6.29%(1) and 12.30%(1), respectively, for the same period. Prosperity's efficiency ratio (excluding net gains and losses on the sale or write down of assets and securities) was 55.61%(1) for the three months ended December 31, 2023; and, excluding the FDIC special assessment and merger related expenses, the efficiency ratio was 48.23%(1).
Net interest income before provision for credit losses was $237.0 million for the three months ended December 31, 2023 compared with $239.5 million for the three months ended September 30, 2023. Net interest income before provision for credit losses decreased $19.2 million or 7.5% to $237.0 million for the three months ended December 31, 2023 compared with $256.1 million for the same period in 2022. The change was primarily due to an increase in the average balances and average rates on other borrowings and an increase in the average rates on interest-bearing deposits, partially offset by an increase in the average balances and average rates on loans.
The net interest margin on a tax equivalent basis was 2.75% for the three months ended December 31, 2023 compared with 2.72% for the three months ended September 30, 2023. The net interest margin on a tax equivalent basis was 2.75% for the three months ended December 31, 2023 compared with 3.05% for the same period in 2022. The change was primarily due to an increase in the average balances and average rates on other borrowings and an increase in the average rates on interest-bearing deposits, partially offset by an increase in the average balances and average rates on loans.
Noninterest income was $36.6 million for the three months ended December 31, 2023 compared with $38.7 million for the three months ended September 30, 2023 and $37.7 million for the three months ended December 31, 2022.
Noninterest expense was $152.2 million for the three months ended December 31, 2023 compared with $135.7 million for the three months ended September 30, 2023, an increase of $16.5 million or 12.2%. The change was primarily due to the FDIC special assessment of $19.9 million and an increase in other noninterest expense, partially offset by a decrease in salaries and benefits. Noninterest expense was $152.2 million for the three months ended December 31, 2023 compared with $119.2 million for the same period in 2022, an increase of $32.9 million or 27.6%. The change was primarily due to the FDIC special assessment of $19.9 million and additional expenses related to the Merger.
Results of Operations for the Year Ended December 31, 2023
For the year ended December 31, 2023, net income was $419.3 million(5) or $4.51 per diluted common share compared with $524.5 million(6) or $5.73 per diluted common share for the same period in 2022. The change was primarily due to lower net interest income, the FDIC special assessment of $19.9 million, merger related provision for credit losses of $18.5 million, merger related expenses of $15.1 million and additional expenses related to the Merger. Returns on average assets, average common equity and average tangible common equity for the year ended December 31, 2023 were 1.08%, 6.03% and 11.76%(1), respectively. Excluding the FDIC special assessment, net of tax, merger related provision for credit losses, net of tax, and merger related expenses, net of tax, net income was $461.7 million(1) or $4.97(1) per diluted common share for the year ended December 31, 2023 and returns on average assets, average common equity and average tangible common equity for the same period were 1.18%(1), 6.64%(1) and 12.95%(1), respectively. Prosperity's efficiency ratio (excluding net gains and losses on the sale or write down of assets and securities) was 50.26%(1) for the year ended December 31, 2023; and, excluding the FDIC special assessment and merger related expenses, the efficiency ratio was 47.09% (1).
Net interest income before provision for credit losses for the year ended December 31, 2023 was $956.4 million compared with $1.005 billion for the same period in 2022, a decrease of $48.8 million or 4.9%. The change was primarily due to an increase in the average balances and average rates on other borrowings and an increase in the average rates on interest-bearing deposits, partially offset by increases in the average balances and average rates on loans.
The net interest margin on a tax equivalent basis for the year ended December 31, 2023 was 2.78% compared with 3.00% for the same period in 2022. The change was primarily due to an increase in the average balances and average rates on other borrowings and an increase in average rates on interest-bearing deposits, partially offset by an increase in the average balances and average rates on loans.
Noninterest income was $153.3 million for the year ended December 31, 2023 compared with $145.1 million for the same period in 2022, an increase of $8.1 million or 5.6%, primarily due to the Merger, partially offset by lower net gain on sale or write-down of assets.
Noninterest expense was $556.7 million for the year ended December 31, 2023 compared with $484.2 million for the same period in 2022, an increase of $72.5 million or 15.0%, primarily due to the FDIC special assessment of $19.9 million, merger related expenses of $15.1 million and additional expenses related to the Merger.
Balance Sheet Information
At December 31, 2023, Prosperity had $38.548 billion in total assets, an increase of $858.0 million or 2.3%, compared with $37.690 billion at December 31, 2022.
Loans were $21.181 billion at December 31, 2023, an increase of $2.341 billion or 12.4%, compared with $18.840 billion at December 31, 2022. Linked quarter loans decreased $252.2 million or 1.2% from $21.433 billion at September 30, 2023. Loans, excluding Warehouse Purchase Program loans, were $20.358 billion at December 31, 2023 compared with $18.099 billion at December 31, 2022, an increase of $2.259 billion or 12.5%, and compared with $20.520 billion at September 30, 2023, a decrease of $162.1 million.
Deposits were $27.180 billion at December 31, 2023, decreased $1.354 billion or 4.7%, compared with $28.534 billion at December 31, 2022, primarily due to a decrease in business deposits and public fund deposits, partially offset by an increase in Merger acquired deposits. Linked quarter deposits decreased $133.0 million or 0.5% from $27.313 billion at September 30, 2023.
The table below provides detail on the impact of loans acquired and deposits assumed in the Merger.
Balance Sheet Data (at period end)
(In thousands)
Dec 31, 2023
Sep 30, 2023
Jun 30, 2023
Mar 31, 2023
Dec 31, 2022
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
Loans acquired (including new production since acquisition date):
FirstCapital Bank
$
1,376,356
$
1,494,378
$
1,590,137
$
-
$
-
Prosperity - Warehouse Purchase Program loans
822,245
912,327
1,148,883
799,115
740,620
Prosperity - All other loans
18,981,937
19,026,008
18,914,926
18,535,244
18,099,207
Total loans
$
21,180,538
$
21,432,713
$
21,653,946
$
19,334,359
$
18,839,827
Deposits assumed (including new deposits since acquisition date):
FirstCapital Bank
$
1,517,217
$
1,625,691
$
1,481,831
$
-
$
-
All other deposits
25,662,592
25,687,109
25,899,055
27,004,236
28,533,531
Total deposits
$
27,179,809
$
27,312,800
$
27,380,886
$
27,004,236
$
28,533,531
Excluding loans acquired in the Merger and new production since May 1, 2023 by the acquired lending operations, loans at December 31, 2023 grew $964.4 million or 5.1% compared with December 31, 2022 and decreased $134.2 million or 0.7% compared with September 30, 2023. Excluding loans acquired in the Merger, new production since May 1, 2023 by the acquired lending operations and Warehouse Purchase Program loans, loans at December 31, 2023 grew $882.7 million or 4.9% compared with December 31, 2022 and decreased $44.1 million or 0.2% compared with September 30, 2023.
Excluding deposits assumed in the Merger and new deposits generated at the acquired banking centers since May 1, 2023, deposits at December 31, 2023 decreased by $2.871 billion or 10.1% compared with December 31, 2022 and decreased by $24.5 million or 0.1% compared with September 30, 2023.
Asset Quality
Nonperforming assets totaled $72.7 million or 0.21% of quarterly average interest-earning assets at December 31, 2023 compared with $69.5 million or 0.20% of quarterly average interest-earning assets at September 30, 2023 and $27.5 million or 0.08% of quarterly average interest-earning assets at December 31, 2022. The increase during 2023 was primarily due to the Merger.
The allowance for credit losses on loans and off-balance sheet credit exposures was $368.9 million at December 31, 2023 compared with $311.5 million at December 31, 2022 and $388.0 million at September 30, 2023. There was no provision for credit losses for the three months ended December 31, 2023 and a provision for credit losses of $18.5 million for the year ended December 31, 2023 compared to no provision for credit losses for the three months and year ended December 31, 2022. The $18.5 million provision was made as a result of the loans acquired in the Merger, and included a $12.0 million provision for credit losses on loans and a $6.5 million provision for credit losses on off-balance sheet credit exposures.
The allowance for credit losses on loans was $332.4 million or 1.57% of total loans at December 31, 2023 compared with $281.6 million or 1.49% of total loans at December 31, 2022 and $351.5 million or 1.64% of total loans at September 30, 2023. Excluding Warehouse Purchase Program loans, the allowance for credit losses on loans to total loans was 1.63%(1) at December 31, 2023 compared with 1.56%(1) at December 31, 2022 and 1.71%(1) at September 30, 2023.
Net charge-offs were $19.1 million for the three months ended December 31, 2023 compared with net charge-offs of $3.4 million for the three months ended September 30, 2023 and net charge-offs of $603 thousand for the three months ended December 31, 2022. Net charge-offs for the fourth quarter of 2023 included $16.3 million related to resolved purchased credit deteriorated ("PCD") loans. The PCD loans had reserves of $16.2 million assigned as of the acquisition date. Additionally, $7.4 million of reserves on resolved PCD loans was released to the general reserve.
Net charge-offs were $38.0 million for the year ended December 31, 2023 compared with $4.8 million for the year ended December 31, 2022. Net charge-offs for the year ended December 31, 2023 included $16.6 million related to resolved PCD loans and $15.0 million related to one commercial real estate loan acquired in a previous merger. The PCD loans had reserves of $16.3 million assigned as of the acquisition date. Additionally, reserves on PCD loans increased by $76.8 million due to the Merger and $23.5 million of reserves on resolved PCD loans was released to the general reserve.
Dividend
Prosperity Bancshares declared a first quarter 2024 cash dividend of $0.56 per share to be paid on April 1, 2024, to all shareholders of record as of March 15, 2024.
Stock Repurchase Program
On January 16, 2024, Prosperity Bancshares announced a stock repurchase program under which up to 5%, or approximately 4.7 million shares, of its outstanding common stock may be acquired over a one-year period expiring on January 16, 2025, at the discretion of management. Under its 2023 stock repurchase program, Prosperity Bancshares repurchased zero shares of its common stock during the three months ended December 31, 2023, and approximately 1.21 million shares of its common stock at an average weighted price of $59.88 per share during the year ended December 31, 2023.
Merger of First Bancshares of Texas, Inc.
On May 1, 2023, Prosperity completed the merger of First Bancshares and its wholly owned subsidiary FirstCapital Bank, headquartered in Midland, Texas. FirstCapital Bank operated 16 full-service banking offices in six different markets in West, North and Central Texas areas, including its main office in Midland, and banking offices in Midland, Lubbock, Amarillo, Wichita Falls, Burkburnett, Byers, Henrietta, Dallas, Horseshoe Bay, Marble Falls and Fredericksburg, Texas.
Pursuant to the terms of the definitive agreement, Prosperity issued 3,583,370 shares of Prosperity common stock plus approximately $91.5 million in cash for all outstanding shares of First Bancshares. This resulted in goodwill of $164.5 million as of December 31, 2023, which was subject to subsequent fair value adjustments. During the second quarter of 2023, Prosperity completed the operational conversion of FirstCapital Bank.
Pending Merger of Lone Star State Bancshares, Inc.
On October 11, 2022, Prosperity Bancshares and Lone Star State Bancshares, Inc. ("Lone Star") jointly announced the signing of a definitive merger agreement whereby Lone Star, the parent company of Lone Star State Bank of West Texas ("Lone Star Bank") will merge with and into Prosperity. Lone Star Bank operates 5 banking offices in the West Texas area, including its main office in Lubbock, and 1 banking center in each of Brownfield, Midland, Odessa and Big Spring, Texas. As of December 31, 2023, Lone Star, on a consolidated basis, reported total assets of $1.372 billion, total loans of $1.081 billion and total deposits of $1.211 billion.
Under the terms of the merger agreement, Prosperity will issue 2,376,182 shares of Prosperity common stock plus $64.1 million in cash for all outstanding shares of Lone Star capital stock, subject to certain conditions and potential adjustments. Based on Prosperity's closing price of $69.27 on October 7, 2022, the total consideration was valued at approximately $228.7 million. The transaction is subject to customary closing conditions, including the receipt of regulatory approvals. The shareholders of Lone Star approved the transaction on March 28, 2023.
Conference Call
Prosperity's management team will host a conference call on Wednesday, January 24, 2024, at 11:30 a.m. Eastern Time (10:30 a.m. Central Time) to discuss Prosperity's fourth quarter 2023 earnings. Individuals and investment professionals may participate in the call by dialing 877-883-0383 for domestic participants, or 412-902-6506 for international participants. The participant elite entry number is 6674169.
Alternatively, individuals may listen to the live webcast of the presentation by visiting Prosperity's website at www.prosperitybankusa.com. The webcast may be accessed from Prosperity's Investor Relations page by selecting "Presentations, Webcasts & Calls" from the menu and following the instructions.
Non-GAAP Financial Measures
Prosperity's management uses certain non-GAAP financial measures to evaluate its performance. Specifically, for internal planning and forecasting purposes, Prosperity reviews each of diluted earnings per share, return on average assets, return on average common equity, and return on average tangible common equity, in each case excluding merger related provision for credit losses, net of tax, merger related expenses, net of tax, and the FDIC special assessment, net of tax; return on average tangible common equity; tangible book value per share; the tangible equity to tangible assets ratio; allowance for credit losses to total loans excluding Warehouse Purchase Program loans; the efficiency ratio, excluding net gains and losses on the sale or write down of assets and securities; and the efficiency ratio, excluding net gains and losses on the sale or write down of assets and securities, merger related expenses and the FDIC special assessment. Prosperity believes these non-GAAP financial measures provide information useful to investors in understanding Prosperity's financial results and their presentation, together with the accompanying reconciliations, provides a more 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 financial measures provide useful information by excluding certain items that may not be indicative of its core operating earnings and business outlook. These non-GAAP financial measures should not be considered a substitute for, nor of greater importance than, GAAP basis financial measures and results; 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. 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 to the nearest respective GAAP financial measures.
Prosperity Bancshares, Inc. ®
As of December 31, 2023, Prosperity Bancshares, Inc.® is a $38.548 billionHouston, Texas based regional financial holding company providing personal banking services and investments to consumers and businesses throughout Texas and Oklahoma. Founded in 1983, Prosperity believes in a community banking philosophy, taking care of customers, businesses and communities in the areas it serves by providing financial solutions to simplify everyday financial needs. In addition to offering traditional deposit and loan products, Prosperity offers digital banking solutions, credit and debit cards, mortgage services, retail brokerage services, trust and wealth management, and treasury management.
Prosperity currently operates 285 full-service banking locations: 65 in the Houston area, including The Woodlands; 30 in the South Texas area including Corpus Christi and Victoria; 62 in the Dallas/Fort Worth area; 22 in the East Texas area; 32 in the Central Texas area including Austin and San Antonio; 44 in the West Texas area including Lubbock, Midland-Odessa, Abilene; Amarillo and Wichita Falls; 16 in the Bryan/College Station area, 6 in the Central Oklahoma area; 8 in the Tulsa, Oklahoma area.
Cautionary Notes on Forward-Looking Statements
"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 federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. From time to time, oral or written forward-looking statements may also be included in other information released to the public. Such forward-looking statements are typically, but not exclusively, identified by the use in the statements of words or phrases such as "aim," "anticipate," "believe," "estimate," "expect," "goal," "guidance," "intend," "is anticipated," "is expected," "is intended," "objective," "plan," "projected," "projection," "will affect," "will be," "will continue," "will decrease," "will grow," "will impact," "will increase," "will incur," "will reduce," "will remain," "will result," "would be," variations of such words or phrases (including where the word "could," "may," or "would" is used rather than the word "will" in a phrase) and similar words and phrases indicating that the statement addresses some future result, occurrence, plan or objective. Forward-looking statements include all statements other than statements of historical fact, including forecasts or trends, and are based on current expectations, assumptions, estimates and projections about Prosperity Bancshares and its subsidiaries. These forward-looking statements may include information about Prosperity's possible or assumed future economic performance or future results of operations, including future revenues, income, expenses, provision for loan losses, provision for taxes, effective tax rate, earnings per share and cash flows and Prosperity's future capital expenditures and dividends, future financial condition and changes therein, including changes in Prosperity's loan portfolio and allowance for loan losses, changes in deposits, borrowings and the investment securities portfolio, future capital structure or changes therein, as well as the plans and objectives of management for Prosperity's future operations, future or proposed acquisitions, including the pending transaction with Lone Star, the future or expected effect of acquisitions on Prosperity's operations, results of operations, financial condition, and future economic performance, statements about the anticipated benefits of each of the proposed transactions, and statements about the assumptions underlying any such statement. These forward-looking statements are not guarantees of future performance and are based on expectations and assumptions Prosperity currently believes to be valid. Because forward-looking statements relate to future results and occurrences, many of which are outside of Prosperity's control, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. 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, including Lone Star; 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); the possibility that the anticipated benefits of an acquisition transaction, including the pending transaction with Lone Star, are not realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of two companies or as a result of the strength of the economy and competitive factors generally; 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, interest rate and commodity price fluctuations; and the effect, impact, potential duration or other implications of weather and climate-related events. Prosperity disclaims any obligation to update such factors or to publicly announce the results of any revisions to any of the forward-looking statements included herein to reflect future events or developments. These and various other factors are discussed in Prosperity's Annual Report on Form 10-K for the year ended December 31, 2022, and other reports and statements Prosperity has filed with the Securities and Exchange Commission ("SEC"). Copies of the SEC filings for Prosperity may be downloaded from the Internet at no charge from http://www.prosperitybankusa.com.
______________
(1)
Refer to the "Notes to Selected Financial Data" at the end of this Earnings Release for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure.
(2)
Includes purchase accounting adjustments of $2.6 million, net of tax, primarily comprised of loan discount accretion of $2.5 million, merger related expenses of $278 thousand, and the FDIC special assessment of $19.9 million for the three months ended December 31, 2023.
(3)
Includes purchase accounting adjustments of $2.5 million, net of tax, primarily comprised of loan discount accretion of $2.3 million, and merger related expenses of $1.1 million for the three months ended September 30, 2023.
(4)
Includes purchase accounting adjustments of $758 thousand, net of tax, primarily comprised of loan discount accretion of $913 thousand for the three months ended December 31, 2022.
(5)
Includes purchase accounting adjustments of $8.1 million, net of tax, primarily comprised of loan discount accretion of $8.0 million, merger related provision for credit losses of $18.5 million, merger related expenses of $15.1 million, and the FDIC special assessment of $19.9 million for the year ended December 31, 2023.
(6)
Includes purchase accounting adjustments of $6.0 million, net of tax, primarily comprised of loan discount accretion of $7.4 million for the year ended December 31, 2022.
Bryan/College Station Area
Frisco-West
Rusk
Nederland
Texas Tech Student Union
Bryan
Garland
Seven Points
Needville
Bryan-29th Street
Grapevine
Teague
Rosenberg
Midland
Bryan-East
Grapevine Main
Tyler-Beckham
Shadow Creek
North
Bryan-North
Kiest
Tyler-South Broadway
Spring
Wadley
Caldwell
Lake Highlands
Tyler-University
Tomball
Wall Street
College Station
McKinney
Winnsboro
Waller
West
Crescent Point
McKinney Eldorado
West Columbia
Hearne
McKinney Redbud
Houston Area
Wharton
Odessa
Huntsville
North Carrolton
Houston
Winnie
Grandview
Madisonville
Park Cities
Aldine
Wirt
Grant
Navasota
Plano
Alief
Kermit Highway
New Waverly
Plano-West
Bellaire
South Texas Area -
Parkway
Rock Prairie
Preston Forest
Beltway
Corpus Christi
Southwest Parkway
Preston Parker
Clear Lake
Calallen
Wichita Falls
Tower Point
Preston Royal
Copperfield
Carmel
Cattlemans
Wellborn Road
Red Oak
Cypress
Northwest
Kell
Richardson
Downtown
Saratoga
Central Texas Area
Richardson-West
Eastex
Timbergate
Other West Texas Area
Austin
Rosewood Court
Fairfield
Water Street
Locations
Allandale
The Colony
First Colony
Big Spring
Cedar Park
Tollroad
Fry Road
Victoria
Brownfield
Congress
Trinity Mills
Gessner
Victoria Main
Brownwood
Lakeway
Turtle Creek
Gladebrook
Victoria-Navarro
Burkburnett
Liberty Hill
West 15th Plano
Grand Parkway
Victoria-North
Byers
Northland
West Allen
Heights
Victoria Salem
Cisco
Oak Hill
Westmoreland
Highway 6 West
Comanche
Research Blvd
Wylie
Little York
Other South Texas Area
Early
Westlake
Medical Center
Locations
Floydada
Fort Worth
Memorial Drive
Alice
Gorman
Other Central Texas Area
Haltom City
Northside
Aransas Pass
Henrietta
Locations
Hulen
Pasadena
Beeville
Levelland
Bastrop
Keller
Pecan Grove
Colony Creek
Littlefield
Canyon Lake
Museum Place
Pin Oak
Cuero
Merkel
Dime Box
Renaissance Square
River Oaks
Edna
Plainview
Dripping Springs
Roanoke
Sugar Land
Goliad
San Angelo
Elgin
Stockyards
SW Medical Center
Gonzales
Slaton
Flatonia
Tanglewood
Hallettsville
Snyder
Fredericksburg
Other Dallas/Fort Worth Area
The Plaza
Kingsville
Georgetown
Locations
Uptown
Mathis
Oklahoma
Gruene
Arlington
Waugh Drive
Padre Island
Central Oklahoma Area
Horseshoe Bay
Azle
Westheimer
Palacios
Oklahoma City
Kingsland
Ennis
West University
Port Lavaca
23rd Street
La Grange
Gainesville
Woodcreek
Portland
Expressway
Lexington
Glen Rose
Rockport
I-240
Marble Falls
Granbury
Katy
Sinton
Memorial
New Braunfels
Grand Prairie
Cinco Ranch
Taft
Pleasanton
Jacksboro
Katy-Spring Green
Yoakum
Other Central Oklahoma Area
Round Rock
Mesquite
Yorktown
Locations
San Antonio
Muenster
The Woodlands
Edmond
Schulenburg
Runaway Bay
The Woodlands-College Park
West Texas Area
Norman
Seguin
Sanger
The Woodlands-I-45
Abilene
Smithville
Waxahachie
The Woodlands-Research Forest
Antilley Road
Tulsa Area
Thorndale
Weatherford
Barrow Street
Tulsa
Weimar
Other Houston Area
Cypress Street
Garnett
East Texas Area
Locations
Judge Ely
Harvard
Dallas/Fort Worth Area
Athens
Angleton
Mockingbird
Memorial
Dallas
Blooming Grove
Bay City
Sheridan
14th Street Plano
Canton
Beaumont
Amarillo
S. Harvard
Abrams Centre
Carthage
Cleveland
Hillside
Utica Tower
Addison
Corsicana
East Bernard
Soncy
Yale
Allen
Crockett
El Campo
Balch Springs
Eustace
Dayton
Lubbock
Other Tulsa Area Locations
Camp Wisdom
Gilmer
Galveston
4th Street
Owasso
Carrollton
Grapeland
Groves
66th Street
Cedar Hill
Gun Barrel City
Hempstead
82nd Street
Coppell
Jacksonville
Hitchcock
86th Street
East Plano
Kerens
Liberty
98th Street
Euless
Longview
Magnolia
Avenue Q
Frisco
Mount Vernon
Magnolia Parkway
Milwaukee
Frisco Warren
Palestine
Mont Belvieu
North University
Prosperity Bancshares, Inc.®
Financial Highlights (Unaudited)
(In thousands)
Dec 31, 2023
Sep 30, 2023
Jun 30, 2023
Mar 31, 2023
Dec 31, 2022
Balance Sheet Data (at period end)
Loans held for sale
$
5,734
$
10,187
$
10,656
$
1,603
$
554
Loans held for investment
20,352,559
20,510,199
20,494,407
18,533,641
18,098,653
Loans held for investment - Warehouse Purchase Program
822,245
912,327
1,148,883
799,115
740,620
Total loans
21,180,538
21,432,713
21,653,946
19,334,359
18,839,827
Investment securities(A)
12,803,896
13,192,742
13,667,319
14,071,545
14,476,005
Federal funds sold
260
234
181
222
301
Allowance for credit losses on loans
(332,362)
(351,495)
(345,209)
(282,191)
(281,576)
Cash and due from banks
458,153
512,239
396,848
405,331
423,832
Goodwill
3,396,086
3,396,459
3,383,698
3,231,636
3,231,636
Core deposit intangibles, net
63,994
67,553
71,128
48,974
51,348
Other real estate owned
1,708
9,320
3,107
1,989
1,963
Fixed assets, net
369,992
370,237
365,299
345,149
339,453
Other assets
605,612
665,682
708,814
672,218
607,040
Total assets
$
38,547,877
$
39,295,684
$
39,905,131
$
37,829,232
$
37,689,829
Noninterest-bearing deposits
$
9,776,572
$
10,281,893
$
10,364,921
$
10,108,348
$
10,915,448
Interest-bearing deposits
17,403,237
17,030,907
17,015,965
16,895,888
17,618,083
Total deposits
27,179,809
27,312,800
27,380,886
27,004,236
28,533,531
Other borrowings
3,725,000
4,250,000
4,800,000
3,365,000
1,850,000
Securities sold under repurchase agreements
309,277
300,714
434,160
434,261
428,134
Subordinated debentures
-
-
3,093
-
-
Allowance for credit losses on off-balance sheet credit exposures
36,503
36,503
36,503
29,947
29,947
Other liabilities
217,958
362,990
282,373
256,671
148,843
Total liabilities
31,468,547
32,263,007
32,937,015
31,090,115
30,990,455
Shareholders' equity(B)
7,079,330
7,032,677
6,968,116
6,739,117
6,699,374
Total liabilities and equity
$
38,547,877
$
39,295,684
$
39,905,131
$
37,829,232
$
37,689,829
(A)
Includes $(1,770), $(2,442), $(3,393), $(4,399) and $(4,396) in unrealized losses on available for sale securities for the quarterly periods ended December 31, 2023, September 30, 2023, June 30, 2023, March 31, 2023 and December 31, 2022, respectively.
(B)
Includes $(1,398), $(1,930), $(2,681), $(3,476) and $(3,473) in after-tax unrealized losses on available for sale securities for the quarterly periods ended December 31, 2023, September 30, 2023, June 30, 2023, March 31, 2023 and December 31, 2022, respectively.
Prosperity Bancshares, Inc.®
Financial Highlights (Unaudited)
(In thousands)
Three Months Ended
Year-to-Date
Dec 31, 2023
Sep 30, 2023
Jun 30, 2023
Mar 31, 2023
Dec 31, 2022
Dec 31, 2023
Dec 31, 2022
Income Statement Data
Interest income:
Loans
$
306,562
$
308,678
$
286,638
$
247,118
$
235,126
$
1,148,996
$
831,189
Securities(C)
68,077
69,987
72,053
73,185
72,533
283,302
260,416
Federal funds sold and other earning assets
1,793
1,689
1,757
7,006
933
12,245
3,230
Total interest income
376,432
380,354
360,448
327,309
308,592
1,444,543
1,094,835
Interest expense:
Deposits
84,969
76,069
63,964
47,343
36,048
272,345
68,112
Other borrowings
52,386
62,190
57,351
34,396
14,682
206,323
18,851
Securities sold under repurchase agreements
2,094
2,533
2,674
2,103
1,725
9,404
2,641
Subordinated debentures
-
38
-
-
-
38
-
Total interest expense
139,449
140,830
123,989
83,842
52,455
488,110
89,604
Net interest income
236,983
239,524
236,459
243,467
256,137
956,433
1,005,231
Provision for credit losses
-
-
18,540
-
-
18,540
-
Net interest income after provision for credit losses
236,983
239,524
217,919
243,467
256,137
937,893
1,005,231
Noninterest income:
Nonsufficient funds (NSF) fees
8,365
8,719
8,512
8,095
8,519
33,691
34,014
Credit card, debit card and ATM card income
9,314
9,285
9,206
8,666
8,816
36,471
34,764
Service charges on deposit accounts
6,316
6,262
6,078
5,926
5,932
24,582
24,730
Trust income
3,360
3,326
3,358
3,225
3,498
13,269
12,250
Mortgage income
542
857
661
238
102
2,298
1,399
Brokerage income
1,059
1,067
1,000
1,149
905
4,275
3,654
Bank owned life insurance income
1,882
1,864
1,553
1,354
1,329
6,653
5,119
Net (loss) gain on sale or write-down of assets
(84)
(45)
1,994
121
2,087
1,986
3,934
Other noninterest income
5,814
7,408
7,326
9,492
6,536
30,040
25,264
Total noninterest income
36,568
38,743
39,688
38,266
37,724
153,265
145,128
Noninterest expense:
Salaries and benefits
80,486
85,423
84,723
77,798
75,353
328,430
314,713
Net occupancy and equipment
9,093
9,464
8,935
8,025
8,147
35,517
32,446
Credit and debit card, data processing and software amortization
10,741
10,919
10,344
9,566
9,716
41,570
37,327
Regulatory assessments and FDIC insurance
24,940
5,155
5,097
4,973
2,873
40,165
11,381
Core deposit intangibles amortization
3,559
3,576
3,167
2,374
2,558
12,676
10,336
Depreciation
4,607
4,585
4,658
4,433
4,438
18,283
17,960
Communications
3,572
3,686
3,693
3,462
3,506
14,413
13,005
Other real estate expense
165
153
(464)
58
154
(88)
761
Net loss (gain) on sale or write-down of other real estate
34
(734)
(33)
(13)
(63)
(746)
(883)
Merger related expenses
278
1,104
12,891
860
272
15,133
272
Other noninterest expense
14,696
12,326
12,859
11,464
12,290
51,345
46,868
Total noninterest expense
152,171
135,657
145,870
123,000
119,244
556,698
484,186
Income before income taxes
121,380
142,610
111,737
158,733
174,617
534,460
666,173
Provision for income taxes
25,904
30,402
24,799
34,039
36,737
115,144
141,657
Net income available to common shareholders
$
95,476
$
112,208
$
86,938
$
124,694
$
137,880
$
419,316
$
524,516
(C)
Interest income on securities was reduced by net premium amortization of $6,428, $6,897, $7,131, $7,384 and $8,703 for the three months ended December 31, 2023, September 30, 2023, June 30, 2023, March 31, 2023 and December 31, 2022, respectively, and $27,840 and $42,957 for the years ended December 31, 2023 and 2022, respectively.
Prosperity Bancshares, Inc. ®
Financial Highlights (Unaudited)
(Dollars and share amounts in thousands, except per share data and market prices)
Three Months Ended
Year-to-Date
Dec 31, 2023
Sep 30, 2023
Jun 30, 2023
Mar 31, 2023
Dec 31, 2022
Dec 31, 2023
Dec 31, 2022
Profitability
Net income (D) (E)
$
95,476
$
112,208
$
86,938
$
124,694
$
137,880
$
419,316
$
524,516
Basic earnings per share
$
1.02
$
1.20
$
0.94
$
1.37
$
1.51
$
4.51
$
5.73
Diluted earnings per share
$
1.02
$
1.20
$
0.94
$
1.37
$
1.51
$
4.51
$
5.73
Return on average assets (F)(J)
0.98
%
1.13
%
0.89
%
1.31
%
1.47
%
1.08
%
1.39
%
Return on average common equity (F)(J)
5.39
%
6.39
%
5.01
%
7.38
%
8.26
%
6.03
%
7.97
%
Return on average tangible common equity(F)(G)(J)
10.54
%
12.58
%
9.67
%
14.34
%
16.26
%
11.76
%
15.94
%
Tax equivalent net interest margin (D) (E)(H)
2.75
%
2.72
%
2.73
%
2.93
%
3.05
%
2.78
%
3.00
%
Efficiency ratio (G) (I)(K)
55.61
%
48.74
%
53.21
%
43.68
%
40.87
%
50.26
%
42.23
%
Liquidity and Capital Ratios
Equity to assets
18.37
%
17.90
%
17.46
%
17.81
%
17.78
%
18.37
%
17.78
%
Common equity tier 1 capital
15.54
%
14.98
%
14.49
%
15.59
%
15.88
%
15.54
%
15.88
%
Tier 1 risk-based capital
15.54
%
14.98
%
14.49
%
15.59
%
15.88
%
15.54
%
15.88
%
Total risk-based capital
16.56
%
16.05
%
15.52
%
16.41
%
16.51
%
16.56
%
16.51
%
Tier 1 leverage capital
10.39
%
10.03
%
9.96
%
10.06
%
10.16
%
10.39
%
10.16
%
Period end tangible equity to period end tangible assets (G)
10.31
%
9.96
%
9.64
%
10.01
%
9.93
%
10.31
%
9.93
%
Other Data
Weighted-average shares used in computing earnings per common share
Basic
93,715
93,720
92,930
91,207
91,287
92,902
91,604
Diluted
93,715
93,720
92,930
91,207
91,287
92,902
91,604
Period end shares outstanding
93,722
93,717
93,721
90,693
91,314
93,722
91,314
Cash dividends paid per common share
$
0.56
$
0.55
$
0.55
$
0.55
$
0.55
$
2.21
$
2.11
Book value per common share
$
75.54
$
75.04
$
74.35
$
74.31
$
73.37
$
75.54
$
73.37
Tangible book value per common share (G)
$
38.62
$
38.08
$
37.49
$
38.13
$
37.41
$
38.62
$
37.41
Common Stock Market Price
High
$
68.79
$
63.65
$
63.13
$
78.76
$
76.32
$
78.76
$
80.46
Low
$
49.60
$
52.62
$
55.12
$
58.25
$
66.71
$
49.60
$
64.69
Period end closing price
$
67.73
$
54.58
$
56.48
$
61.52
$
72.68
$
67.73
$
72.68
Employees - FTE (excluding overtime)
3,850
3,853
3,710
3,651
3,633
3,850
3,633
Number of banking centers
285
285
286
272
272
285
272
(D) Includes purchase accounting adjustments for the periods presented as follows:
Three Months Ended
Year-to-Date
Dec 31,
2023
Sep 30,
2023
Jun 30,
2023
Mar 31,
2023
Dec 31,
2022
Dec 31,
2023
Dec 31,
2022
Loan discount accretion
Non-PCD
$1,543
$1,508
$1,242
$532
$603
$4,825
$5,924
PCD
$937
$767
$1,178
$339
$310
$3,221
$1,477
Securities net accretion (amortization)
$598
$626
$426
$(2)
$(12)
$1,648
$116
Time deposits amortization
$(150)
$(210)
$(187)
$(53)
$(59)
$(600)
$(311)
(E)
Using effective tax rate of 21.3%, 21.3%, 22.2%, 21.4% and 21.0% for the three months ended December 31, 2023, September 30, 2023, June 30, 2023, March 31, 2023 and December 31, 2022, respectively, and 21.5% and 21.3% for the years ended December 31, 2023 and 2022, respectively.
(F)
Interim periods annualized.
(G)
Refer to the "Notes to Selected Financial Data" at the end of this Earnings Release for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure.
(H)
Net interest margin for all periods presented is based on average balances on an actual 365-day basis.
(I)
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 or write down of assets and securities. Additionally, taxes are not part of this calculation.
(J)
For calculations of the annualized returns on average assets, average common equity and average tangible common equity excluding merger related provision for credit losses, net of tax, merger related expenses, net of tax, and FDIC special assessment, net of tax, refer to the "Notes to Selected Financial Data" at the end of this Earnings Release for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure.
(K)
For calculations of the efficiency ratio excluding merger related expenses and FDIC special assessment refer to the "Notes to Selected Financial Data" at the end of this Earnings Release for a reconciliation of these non-GAAP financial measures to the nearest respective GAAP financial measures.
Prosperity Bancshares, Inc.®
Financial Highlights (Unaudited)
(Dollars in thousands)
YIELD ANALYSIS
Three Months Ended
Dec 31, 2023
Sep 30, 2023
Dec 31, 2022
Average Balance
Interest Earned/ Interest Paid
Average Yield/ Rate
(L)
Average Balance
Interest Earned/ Interest Paid
Average Yield/ Rate
(L)
Average Balance
Interest Earned/ Interest Paid
Average Yield/ Rate
(L)
Interest-earning assets:
Loans held for sale
$
9,828
$
185
7.47 %
$
9,832
$
162
6.54 %
$
1,758
$
27
6.09 %
Loans held for investment
20,370,915
291,882
5.68 %
20,496,075
290,566
5.62 %
17,818,769
223,768
4.98 %
Loans held for investment - Warehouse Purchase Program
770,481
14,495
7.46 %
972,936
17,950
7.32 %
747,007
11,331
6.02 %
Total loans
21,151,224
306,562
5.75 %
21,478,843
308,678
5.70 %
18,567,534
235,126
5.02 %
Investment securities
13,074,243
68,077
2.07 %
(M)
13,512,137
69,987
2.05 %
(M)
14,715,516
72,533
1.96 %
(M)
Federal funds sold and other earning assets
125,295
1,793
5.68 %
125,690
1,689
5.33 %
101,986
933
3.63 %
Total interest-earning assets
34,350,762
376,432
4.35 %
35,116,670
380,354
4.30 %
33,385,036
308,592
3.67 %
Allowance for credit losses on loans
(346,493)
(343,967)
(282,546)
Noninterest-earning assets
4,810,942
4,829,336
4,515,412
Total assets
$
38,815,211
$
39,602,039
$
37,617,902
Interest-bearing liabilities:
Interest-bearing demand deposits
$
4,822,698
$
6,789
0.56 %
$
4,768,485
$
5,182
0.43 %
$
5,843,672
$
3,224
0.22 %
Savings and money market deposits
8,815,892
45,192
2.03 %
8,977,824
44,446
1.96 %
9,805,024
27,929
1.13 %
Certificates and other time deposits
3,442,115
32,988
3.80 %
3,172,178
26,441
3.31 %
2,066,085
4,895
0.94 %
Other borrowings
4,028,263
52,386
5.16 %
4,671,449
62,190
5.28 %
1,465,533
14,682
3.97 %
Securities sold under repurchase agreements
300,317
2,094
2.77 %
389,149
2,533
2.58 %
441,405
1,725
1.55 %
Subordinated debentures
-
-
-
2,578
38
5.85 %
-
-
-
Total interest-bearing liabilities
21,409,285
139,449
2.58 %
(N)
21,981,663
140,830
2.54 %
(N)
19,621,719
52,455
1.06 %
(N)
Noninterest-bearing liabilities:
Noninterest-bearing demand deposits
9,960,240
10,269,162
11,064,714
Allowance for credit losses on off-balance sheet credit exposures
36,503
36,504
29,947
Other liabilities
323,344
290,217
224,512
Total liabilities
31,729,372
32,577,546
30,940,892
Shareholders' equity
7,085,839
7,024,493
6,677,010
Total liabilities and shareholders' equity
$
38,815,211
$
39,602,039
$
37,617,902
Net interest income and margin
$
236,983
2.74 %
$
239,524
2.71 %
$
256,137
3.04 %
Non-GAAP to GAAP reconciliation:
Tax equivalent adjustment
952
1,000
440
Net interest income and margin (tax equivalent basis)
$
237,935
2.75 %
$
240,524
2.72 %
$
256,577
3.05 %
(L)
Annualized and based on an actual 365-day basis.
(M)
Yield on securities was impacted by net premium amortization of $6,428, $6,897 and $8,703 for the three months ended December 31, 2023, September 30, 2023 and December 31, 2022, respectively.
(N)
Total cost of funds, including noninterest bearing deposits, was 1.76%, 1.73% and 0.68% for the three months ended December 31, 2023, September 30, 2023 and December 31, 2022, respectively.
Prosperity Bancshares, Inc.®
Financial Highlights (Unaudited)
(Dollars in thousands)
YIELD ANALYSIS
Year-to-Date
Dec 31, 2023
Dec 31, 2022
Average Balance
Interest Earned/ Interest Paid
Average Yield/ Rate
(O)
Average Balance
Interest Earned/ Interest Paid
Average Yield/ Rate
(O)
Interest-earning assets:
Loans held for sale
$
6,508
$
452
6.95 %
$
3,420
$
164
4.80 %
Loans held for investment
19,754,541
1,089,743
5.52 %
17,155,082
788,504
4.60 %
Loans held for investment - Warehouse Purchase Program
815,853
58,801
7.21 %
1,051,237
42,521
4.04 %
Total loans
20,576,902
1,148,996
5.58 %
18,209,739
831,189
4.56 %
Investment securities
13,719,899
283,302
2.06 %
(P)
14,613,799
260,416
1.78 %
(P)
Federal funds sold and other earning assets
248,691
12,245
4.92 %
709,270
3,230
0.46 %
Total interest-earning assets
34,545,492
1,444,543
4.18 %
33,532,808
1,094,835
3.26 %
Allowance for credit losses on loans
(314,350)
(283,997)
Noninterest-earning assets
4,741,815
4,475,434
Total assets
$
38,972,957
$
37,724,245
Interest-bearing liabilities:
Interest-bearing demand deposits
$
5,150,049
$
19,554
0.38 %
$
6,299,924
$
10,175
0.16 %
Savings and money market deposits
9,129,845
168,184
1.84 %
10,384,178
45,907
0.44 %
Certificates and other time deposits
2,832,754
84,607
2.99 %
2,322,754
12,030
0.52 %
Other borrowings
4,008,616
206,323
5.15 %
543,107
18,851
3.47 %
Securities sold under repurchase agreements
389,313
9,404
2.42 %
457,553
2,641
0.58 %
Subordinated debentures
1,031
38
3.69 %
-
-
-
Total interest-bearing liabilities
21,511,608
488,110
2.27 %
(Q)
20,007,516
89,604
0.45 %
(Q)
Noninterest-bearing liabilities:
Noninterest-bearing demand deposits
10,224,241
10,903,539
Allowance for credit losses on off-balance sheet credit exposures
33,271
29,947
Other liabilities
253,047
204,574
Total liabilities
32,022,167
31,145,576
Shareholders' equity
6,950,790
6,578,669
Total liabilities and shareholders' equity
$
38,972,957
$
37,724,245
Net interest income and margin
$
956,433
2.77 %
$
1,005,231
3.00 %
Non-GAAP to GAAP reconciliation:
Tax equivalent adjustment
3,640
1,815
Net interest income and margin (tax equivalent basis)
$
960,073
2.78 %
$
1,007,046
3.00 %
(O)
Based on an actual 365-day basis.
(P)
Yield on securities was impacted by net premium amortization of $27,840 and $42,957 for the years ended December 31, 2023 and 2022, respectively.
(Q)
Total cost of funds, including noninterest bearing deposits, was 1.54% and 0.29% for the years ended December 31, 2023 and 2022, respectively.
Prosperity Bancshares, Inc.®
Financial Highlights (Unaudited)
(Dollars in thousands)
Three Months Ended
Dec 31, 2023
Sep 30, 2023
Jun 30, 2023
Mar 31, 2023
Dec 31, 2022
YIELD TREND (R)
Interest-Earning Assets:
Loans held for sale
7.47
%
6.54
%
6.87
%
6.58
%
6.09
%
Loans held for investment
5.68
%
5.62
%
5.48
%
5.24
%
4.98
%
Loans held for investment - Warehouse Purchase Program
7.46
%
7.32
%
7.09
%
6.88
%
6.02
%
Total loans
5.75
%
5.70
%
5.55
%
5.29
%
5.02
%
Investment securities (S)
2.07
%
2.05
%
2.07
%
2.07
%
1.96
%
Federal funds sold and other earning assets
5.68
%
5.33
%
4.69
%
4.74
%
3.63
%
Total interest-earning assets
4.35
%
4.30
%
4.15
%
3.92
%
3.67
%
Interest-Bearing Liabilities:
Interest-bearing demand deposits
0.56
%
0.43
%
0.30
%
0.26
%
0.22
%
Savings and money market deposits
2.03
%
1.96
%
1.88
%
1.50
%
1.13
%
Certificates and other time deposits
3.80
%
3.31
%
2.59
%
1.59
%
0.94
%
Other borrowings
5.16
%
5.28
%
5.20
%
4.83
%
3.97
%
Securities sold under repurchase agreements
2.77
%
2.58
%
2.43
%
1.99
%
1.55
%
Subordinated debentures
-
5.85
%
-
-
-
Total interest-bearing liabilities
2.58
%
2.54
%
2.28
%
1.63
%
1.06
%
Net Interest Margin
2.74
%
2.71
%
2.72
%
2.92
%
3.04
%
Net Interest Margin (tax equivalent)
2.75
%
2.72
%
2.73
%
2.93
%
3.05
%
(R)
Annualized and based on average balances on an actual 365-day basis.
(S)
Yield on securities was impacted by net premium amortization of $6,428, $6,897, $7,131, $7,384 and $8,703 for the three months ended December 31, 2023, September 30, 2023, June 30, 2023, March 31, 2023 and December 31, 2022, respectively.
Prosperity Bancshares, Inc.®
Financial Highlights (Unaudited)
(Dollars in thousands)
Three Months Ended
Dec 31, 2023
Sep 30, 2023
Jun 30, 2023
Mar 31, 2023
Dec 31, 2022
Balance Sheet Averages
Loans held for sale
$
9,828
$
9,832
$
3,910
$
2,343
$
1,758
Loans held for investment
20,370,915
20,496,075
19,802,751
18,317,712
17,818,769
Loans held for investment - Warehouse Purchase Program
770,481
972,936
898,768
617,822
747,007
Total loans
21,151,224
21,478,843
20,705,429
18,937,877
18,567,534
Investment securities
13,074,243
13,512,137
13,976,818
14,332,509
14,715,516
Federal funds sold and other earning assets
125,295
125,690
150,300
600,048
101,986
Total interest-earning assets
34,350,762
35,116,670
34,832,547
33,870,434
33,385,036
Allowance for credit losses on loans
(346,493)
(343,967)
(283,594)
(282,316)
(282,546)
Cash and due from banks
302,864
301,201
281,593
319,960
306,235
Goodwill
3,396,224
3,387,293
3,291,659
3,231,637
3,231,637
Core deposit intangibles, net
65,986
69,551
48,616
50,208
52,591
Other real estate
4,781
6,301
2,712
2,083
2,075
Fixed assets, net
370,900
367,814
357,593
342,380
338,572
Other assets
670,187
697,176
756,500
643,467
584,302
Total assets
$
38,815,211
$
39,602,039
$
39,287,626
$
38,177,853
$
37,617,902
Noninterest-bearing deposits
$
9,960,240
$
10,269,162
$
10,274,819
$
10,389,980
$
11,064,714
Interest-bearing demand deposits
4,822,698
4,768,485
5,147,453
5,877,641
5,843,672
Savings and money market deposits
8,815,892
8,977,824
9,156,047
9,579,679
9,805,024
Certificates and other time deposits
3,442,115
3,172,178
2,652,064
2,045,580
2,066,085
Total deposits
27,040,945
27,187,649
27,230,383
27,892,880
28,779,495
Other borrowings
4,028,263
4,671,449
4,427,914
2,887,011
1,465,533
Securities sold under repurchase agreements
300,317
389,149
441,303
427,887
441,405
Subordinated debentures
-
2,578
1,547
-
-
Allowance for credit losses on off-balance sheet credit exposures
36,503
36,504
30,022
29,947
29,947
Other liabilities
323,344
290,217
220,775
180,685
224,512
Shareholders' equity
7,085,839
7,024,493
6,935,682
6,759,443
6,677,010
Total liabilities and equity
$
38,815,211
$
39,602,039
$
39,287,626
$
38,177,853
$
37,617,902
Prosperity Bancshares, Inc.®
Financial Highlights (Unaudited)
(Dollars in thousands)
Dec 31, 2023
Sep 30, 2023
Jun 30, 2023
Mar 31, 2023
Dec 31, 2022
Period End Balances
Loan Portfolio
Commercial and industrial
$1,936,717
9.2 %
$2,153,391
10.1 %
$2,245,620
10.5 %
$2,074,078
10.7 %
$2,165,263
11.6 %
Warehouse purchase program
822,245
3.9 %
912,327
4.3 %
1,148,883
5.3 %
799,115
4.1 %
740,620
3.9 %
Construction, land development and other land loans
3,076,591
14.5 %
3,200,479
14.9 %
3,215,016
14.8 %
2,899,980
15.0 %
2,805,438
14.9 %
1-4 family residential
7,207,226
34.0 %
7,032,593
32.8 %
6,780,813
31.3 %
6,055,532
31.3 %
5,774,814
30.6 %
Home equity
960,852
4.5 %
969,498
4.5 %
977,070
4.5 %
959,124
5.0 %
966,410
5.1 %
Commercial real estate (includes multi-family residential)
5,662,948
26.7 %
5,606,837
26.2 %
5,676,526
26.2 %
5,133,693
26.6 %
4,986,211
26.5 %
Agriculture (includes farmland)
816,043
3.9 %
801,933
3.7 %
804,376
3.7 %
721,395
3.7 %
688,033
3.6 %
Consumer and other
329,593
1.6 %
306,018
1.4 %
305,207
1.4 %
288,300
1.5 %
283,559
1.5 %
Energy
368,323
1.7 %
449,637
2.1 %
500,435
2.3 %
403,142
2.1 %
429,479
2.3 %
Total loans
$21,180,538
$21,432,713
$21,653,946
$19,334,359
$18,839,827
Deposit Types
Noninterest-bearing DDA
$9,776,572
36.0 %
$10,281,893
37.6 %
$10,364,921
37.9 %
$10,108,348
37.4 %
$10,915,448
38.2 %
Interest-bearing DDA
5,115,945
18.8 %
4,797,259
17.6 %
4,953,090
18.1 %
5,332,086
19.8 %
5,986,203
21.0 %
Money market
5,859,701
21.6 %
5,892,505
21.6 %
5,904,160
21.5 %
6,021,449
22.3 %
6,164,025
21.6 %
Savings
2,881,397
10.6 %
3,005,936
11.0 %
3,179,351
11.6 %
3,304,482
12.2 %
3,471,970
12.2 %
Certificates and other time deposits
3,546,194
13.0 %
3,335,207
12.2 %
2,979,364
10.9 %
2,237,871
8.3 %
1,995,885
7.0 %
Total deposits
$27,179,809
$27,312,800
$27,380,886
$27,004,236
$28,533,531
Loan to Deposit Ratio
77.9 %
78.5 %
79.1 %
71.6 %
66.0 %
Prosperity Bancshares, Inc.®
Financial Highlights (Unaudited)
(Dollars in thousands)
Construction Loans
Dec 31, 2023
Sep 30, 2023
Jun 30, 2023
Mar 31, 2023
Dec 31, 2022
Single family residential construction
$
1,088,636
35.4
%
$
1,157,016
36.1
%
$
1,244,631
38.7
%
$
1,179,883
40.7
%
$
1,097,176
39.1
%
Land development
367,849
12.0
%
359,518
11.2
%
310,199
9.7
%
222,511
7.7
%
181,747
6.5
%
Raw land
328,365
10.7
%
340,659
10.7
%
359,228
11.2
%
326,168
11.2
%
332,603
11.9
%
Residential lots
222,591
7.2
%
216,659
6.8
%
216,706
6.7
%
226,600
7.8
%
243,942
8.7
%
Commercial lots
155,415
5.0
%
154,425
4.8
%
158,278
4.9
%
167,151
5.8
%
177,378
6.3
%
Commercial construction and other
914,436
29.7
%
973,022
30.4
%
927,025
28.8
%
777,678
26.8
%
772,606
27.5
%
Net unaccreted discount
(701)
(820)
(1,051)
(11)
(14)
Total construction loans
$
3,076,591
$
3,200,479
$
3,215,016
$
2,899,980
$
2,805,438
Non-Owner Occupied Commercial Real Estate Loans by Metropolitan Statistical Area (MSA) as of December 31, 2023
Houston
Dallas
Austin
OK City
Tulsa
Other (T)
Total
Collateral Type
Shopping center/retail
$
353,014
$
287,131
$
59,778
$
15,231
$
14,662
$
290,654
$
1,020,470
Commercial and industrial buildings
164,582
101,957
25,833
31,071
18,242
269,728
611,413
Office buildings
84,064
222,729
54,147
48,961
3,934
97,328
511,163
Medical buildings
75,533
17,124
1,740
43,605
33,186
57,860
229,048
Apartment buildings
138,011
127,623
41,696
14,215
13,543
212,276
547,364
Hotel
111,974
86,862
39,550
18,281
-
169,238
425,905
Other
92,153
62,468
41,769
8,381
1,662
78,384
284,817
Total
$
1,019,331
$
905,894
$
264,513
$
179,745
$
85,229
$
1,175,468
$
3,630,180
(U)
Acquired Loans
Non-PCD Loans
PCD Loans
Total Acquired Loans
Balance at Acquisition Date
Balance at Sept 30, 2023
Balance at Dec 31, 2023
Balance at Acquisition Date
Balance at Sept 30, 2023
Balance at Dec 31, 2023
Balance at Acquisition Date
Balance at Sept 30, 2023
Balance at Dec 31, 2023
Loan marks:
Acquired banks (V)
$
345,599
$
871
$
506
$
320,052
$
2,685
$
2,594
$
665,651
$
3,556
$
3,100
FirstCapital Bank (W)
22,648
20,672
19,486
7,790
6,658
5,320
30,438
27,330
24,806
Total
368,247
21,543
19,992
327,842
9,343
7,914
696,089
30,886
27,906
Acquired portfolio loan balances:
Acquired banks (V)
12,286,159
1,104,770
1,043,525
689,573
62,053
58,310
12,975,732
1,166,823
1,101,835
FirstCapital Bank (W)
1,021,694
855,052
780,284
627,991
558,271
475,343
1,649,685
1,413,323
1,255,627
Total
13,307,853
1,959,822
1,823,809
1,317,564
620,324
533,653
14,625,417
(X)
2,580,146
2,357,462
Acquired portfolio loan balances less loan marks
$
12,939,606
$
1,938,279
$
1,803,817
$
989,722
$
610,981
$
525,739
$
13,929,328
$
2,549,260
$
2,329,556
(T)
Includes other MSA and non-MSA regions.
(U)
Represents a portion of total commercial real estate loans of $5.663 billion as of December 31, 2023.
(V)
Includes Bank Arlington, American State Bank, Community National Bank, First Federal Bank Texas, Coppermark Bank, First Victoria National Bank, The F&M Bank & Trust Company, Tradition Bank and LegacyTexas Bank.
(W)
FirstCapital Bank merger was completed on May 1, 2023. The Merger resulted in the addition of $1.650 billion in loans with related purchase accounting adjustments of $30.4 million at acquisition date, which were subject to subsequent fair value adjustments.
(X)
Actual principal balances acquired.
Prosperity Bancshares, Inc.®
Financial Highlights (Unaudited)
(Dollars in thousands)
Three Months Ended
Year-to-Date
Dec 31, 2023
Sep 30, 2023
Jun 30, 2023
Mar 31, 2023
Dec 31, 2022
Dec 31, 2023
Dec 31, 2022
Asset Quality
Nonaccrual loans
$
68,688
$
59,729
$
57,723
$
22,496
$
19,614
$
68,688
$
19,614
Accruing loans 90 or more days past due
2,195
397
1,744
-
5,917
2,195
5,917
Total nonperforming loans
70,883
60,126
59,467
22,496
25,531
70,883
25,531
Repossessed assets
76
35
153
-
-
76
-
Other real estate
1,708
9,320
3,107
1,989
1,963
1,708
1,963
Total nonperforming assets
$
72,667
$
69,481
$
62,727
$
24,485
$
27,494
$
72,667
$
27,494
Nonperforming assets:
Commercial and industrial (includes energy)
$
8,957
$
22,219
$
24,027
$
2,832
$
3,921
$
8,957
$
3,921
Construction, land development and other land loans
17,343
8,684
4,245
3,210
6,166
17,343
6,166
1-4 family residential (includes home equity)
26,096
23,708
19,609
16,951
15,326
26,096
15,326
Commercial real estate (includes multi-family residential)
18,775
13,341
13,504
1,051
1,649
18,775
1,649
Agriculture (includes farmland)
1,460
1,511
1,284
432
421
1,460
421
Consumer and other
36
18
58
9
11
36
11
Total
$
72,667
$
69,481
$
62,727
$
24,485
$
27,494
$
72,667
$
27,494
Number of loans/properties
292
260
241
190
170
292
170
Allowance for credit losses on loans
$
332,362
$
351,495
$
345,209
$
282,191
$
281,576
$
332,362
$
281,576
Net charge-offs (recoveries):
Commercial and industrial (includes energy)
$
16,123
$
1,594
$
160
$
(1,472)
$
(643)
$
16,405
$
(841)
Construction, land development and other land loans
(5)
(5)
50
(13)
(5)
27
416
1-4 family residential (includes home equity)
20
(78)
(70)
(140)
(55)
(268)
(202)
Commercial real estate (includes multi-family residential)
1,590
570
14,957
(1)
74
17,116
860
Agriculture (includes farmland)
-
-
(78)
(6)
(14)
(84)
(7)
Consumer and other
1,405
1,327
1,046
1,017
1,246
4,795
4,578
Total
$
19,133
$
3,408
$
16,065
$
(615)
$
603
$
37,991
$
4,804
Asset Quality Ratios
Nonperforming assets to average interest-earning assets
0.21
%
0.20
%
0.18
%
0.07
%
0.08
%
0.21
%
0.08
%
Nonperforming assets to loans and other real estate
0.34
%
0.32
%
0.29
%
0.13
%
0.15
%
0.34
%
0.15
%
Net charge-offs to average loans (annualized)
0.36
%
0.06
%
0.31
%
(0.01 %)
0.01
%
0.18
%
0.03
%
Allowance for credit losses on loans to total loans
1.57
%
1.64
%
1.59
%
1.46
%
1.49
%
1.57
%
1.49
%
Allowance for credit losses on loans to total loans, excluding Warehouse Purchase Program loans (G)
1.63
%
1.71
%
1.68
%
1.52
%
1.56
%
1.63
%
1.56
%
Prosperity Bancshares, Inc.® Notes to Selected Financial Data (Unaudited) (Dollars and share amounts in thousands, except per share data)
NOTES TO SELECTED FINANCIAL DATA
Prosperity's management uses certain non-GAAP (generally accepted accounting principles) financial measures to evaluate its performance. Specifically, for internal planning and forecasting purposes, Prosperity reviews each of diluted earnings per share, return on average assets, return on average common equity, and return on average tangible common equity, in each case excluding merger related provision for credit losses, net of tax, merger related expenses, net of tax, and the FDIC special assessment, net of tax; return on average tangible common equity; tangible book value per share; the tangible equity to tangible assets ratio; allowance for credit losses to total loans excluding Warehouse Purchase Program loans; the efficiency ratio, excluding net gains and losses on the sale or write down of assets and securities; and the efficiency ratio, excluding net gains and losses on the sale or write down of assets and securities, merger related expenses and the FDIC special assessment. In addition, due to the application of purchase accounting, Prosperity uses certain non-GAAP financial measures and ratios that exclude the impact of these items to evaluate its allowance for credit losses to total loans (excluding Warehouse Purchase Program loans). Prosperity has included information below relating to these non-GAAP financial measures for the applicable periods presented.
Three Months Ended
Year-to-Date
Dec 31, 2023
Sep 30, 2023
Jun 30, 2023
Mar 31, 2023
Dec 31, 2022
Dec 31, 2023
Dec 31, 2022
Reconciliation of diluted earnings per share to diluted earnings per share excluding merger related provision for credit losses, net of tax, merger related expenses, net of tax, and FDIC special assessment, net of tax:
Diluted earnings per share (unadjusted)
$
1.02
$
1.20
$
0.94
$
1.37
$
1.51
$
4.51
$
5.73
Net income
$
95,476
$
112,208
$
86,938
$
124,694
$
137,880
$
419,316
$
524,516
Merger related provision for credit losses, net of tax(Y)
-
-
14,647
-
-
14,647
-
Merger related expenses, net of tax(Y)
220
872
10,184
679
215
11,955
215
FDIC special assessment, net of tax(Y)
15,736
-
-
-
-
15,736
-
Net income excluding merger related provision for credit losses, net of tax, merger related expenses, net of tax, and FDIC special assessment, net of tax(Y):
$
111,432
$
113,080
$
111,769
$
125,373
$
138,095
$
461,654
$
524,731
Weighted average diluted shares outstanding
93,715
93,720
92,930
91,207
91,287
92,902
91,604
Merger related provision for credit losses, net of tax, per diluted common share(Y)
$
-
$
-
$
0.16
$
-
$
-
$
0.16
$
-
Merger related expenses, net of tax, per diluted common share(Y)
$
-
$
0.01
$
0.11
$
0.01
$
-
$
0.13
$
-
FDIC special assessment, net of tax, per diluted common share(Y)
$
0.17
$
-
$
-
$
-
$
-
$
0.17
$
-
Diluted earnings per share excluding merger related provision for credit losses, net of tax, merger related expenses, net of tax, and FDIC special assessment, net of tax:(Y)
$
1.19
$
1.21
$
1.21
$
1.38
$
1.51
$
4.97
$
5.73
Reconciliation of return on average assets to return on average assets excluding merger related provision for credit losses, net of tax, merger related expenses, net of tax, and FDIC special assessment, net of tax:
Return on average assets (unadjusted)
0.98
%
1.13
%
0.89
%
1.31
%
1.47
%
1.08
%
1.39
%
Net income excluding merger related provision for credit losses, net of tax, merger related expenses, net of tax, and FDIC special assessment, net of tax(Y):
$
111,432
$
113,080
$
111,769
$
125,373
$
138,095
$
461,654
$
524,731
Average total assets
$
38,815,211
$
39,602,039
$
39,287,626
$
38,177,853
$
37,617,902
$
38,972,957
$
37,724,245
Return on average assets excluding merger related provision for credit losses, net of tax, merger related expenses, net of tax, and FDIC special assessment, net of tax (F) (Y)
1.15
%
1.14
%
1.14
%
1.31
%
1.47
%
1.18
%
1.39
%
(Y) Calculated assuming a federal tax rate of 21.0%.
Three Months Ended
Year-to-Date
Dec 31, 2023
Sep 30, 2023
Jun 30, 2023
Mar 31, 2023
Dec 31, 2022
Dec 31, 2023
Dec 31, 2022
Reconciliation of return on average common equity to return on average common equity excluding merger related provision for credit losses, net of tax, merger related expenses, net of tax, and FDIC special assessment, net of tax:
Return on average common equity (unadjusted)
5.39
%
6.39
%
5.01
%
7.38
%
8.26
%
6.03
%
7.97
%
Net income, excluding merger related provision for credit losses, net of tax, and merger related expenses, net of tax, and FDIC special assessment, net of tax(Y)
$
111,432
$
113,080
$
111,769
$
125,373
$
138,095
$
461,654
$
524,731
Average shareholders' equity
$
7,085,839
$
7,024,493
$
6,935,682
$
6,759,443
$
6,677,010
$
6,950,790
$
6,578,669
Return on average common equity excluding merger related provision for credit losses, net of tax, merger related expenses, net of tax, and FDIC special assessment, net of tax (F) (Y)
6.29
%
6.44
%
6.45
%
7.42
%
8.27
%
6.64
%
7.98
%
Reconciliation of return on average common equity to return on average tangible common equity:
Net income
$
95,476
$
112,208
$
86,938
$
124,694
$
137,880
$
419,316
$
524,516
Average shareholders' equity
$
7,085,839
$
7,024,493
$
6,935,682
$
6,759,443
$
6,677,010
$
6,950,790
$
6,578,669
Less: Average goodwill and other intangible assets
(3,462,210)
(3,456,844)
(3,340,275)
(3,281,845)
(3,284,228)
(3,385,984)
(3,288,068)
Average tangible shareholders' equity
$
3,623,629
$
3,567,649
$
3,595,407
$
3,477,598
$
3,392,782
$
3,564,806
$
3,290,601
Return on average tangible common equity(F)
10.54
%
12.58
%
9.67
%
14.34
%
16.26
%
11.76
%
15.94
%
Reconciliation of return on average common equity to return on average tangible common equity excluding merger related provision for credit losses, net of tax, merger related expenses, net of tax, and FDIC special assessment, net of tax:
Net income, excluding merger related provision for credit losses, net of tax, merger related expenses, net of tax, and FDIC special assessment, net of tax(Y)
$
111,432
$
113,080
$
111,769
$
125,373
$
138,095
$
461,654
$
524,731
Average shareholders' equity
$
7,085,839
$
7,024,493
$
6,935,682
$
6,759,443
$
6,677,010
$
6,950,790
$
6,578,669
Less: Average goodwill and other intangible assets
(3,462,210)
(3,456,844)
(3,340,275)
(3,281,845)
(3,284,228)
(3,385,984)
(3,288,068)
Average tangible shareholders' equity
$
3,623,629
$
3,567,649
$
3,595,407
$
3,477,598
$
3,392,782
$
3,564,806
$
3,290,601
Return on average tangible common equity excluding merger related provision for credit losses, net of tax, merger related expenses, net of tax, and FDIC special assessment, net of tax (F) (Y)
12.30
%
12.68
%
12.43
%
14.42
%
16.28
%
12.95
%
15.95
%
Reconciliation of book value per share to tangible book value per share:
Shareholders' equity
$
7,079,330
$
7,032,677
$
6,968,116
$
6,739,117
$
6,699,374
$
7,079,330
$
6,699,374
Less: Goodwill and other intangible assets
(3,460,080)
(3,464,012)
(3,454,826)
(3,280,610)
(3,282,984)
(3,460,080)
(3,282,984)
Tangible shareholders' equity
$
3,619,250
$
3,568,665
$
3,513,290
$
3,458,507
$
3,416,390
$
3,619,250
$
3,416,390
Period end shares outstanding
93,722
93,717
93,721
90,693
91,314
93,722
91,314
Tangible book value per share
$
38.62
$
38.08
$
37.49
$
38.13
$
37.41
$
38.62
$
37.41
Reconciliation of equity to assets ratio to period end tangible equity to period end tangible assets ratio:
Tangible shareholders' equity
$
3,619,250
$
3,568,665
$
3,513,290
$
3,458,507
$
3,416,390
$
3,619,250
$
3,416,390
Total assets
$
38,547,877
$
39,295,684
$
39,905,131
$
37,829,232
$
37,689,829
$
38,547,877
$
37,689,829
Less: Goodwill and other intangible assets
(3,460,080)
(3,464,012)
(3,454,826)
(3,280,610)
(3,282,984)
(3,460,080)
(3,282,984)
Tangible assets
$
35,087,797
$
35,831,672
$
36,450,305
$
34,548,622
$
34,406,845
$
35,087,797
$
34,406,845
Period end tangible equity to period end tangible assets ratio
10.31
%
9.96
%
9.64
%
10.01
%
9.93
%
10.31
%
9.93
%
Three Months Ended
Year-to-Date
Dec 31, 2023
Sep 30, 2023
Jun 30, 2023
Mar 31, 2023
Dec 31, 2022
Dec 31, 2023
Dec 31, 2022
Reconciliation of allowance for credit losses to total loans to allowance for credit losses on loans to total loans excluding Warehouse Purchase Program:
Allowance for credit losses on loans
$
332,362
$
351,495
$
345,209
$
282,191
$
281,576
$
332,362
$
281,576
Total loans
$
21,180,538
$
21,432,713
$
21,653,946
$
19,334,359
$
18,839,827
$
21,180,538
$
18,839,827
Less: Warehouse Purchase Program loans
(822,245)
(912,327)
(1,148,883)
(799,115)
(740,620)
(822,245)
(740,620)
Total loans less Warehouse Purchase Program
$
20,358,293
$
20,520,386
$
20,505,063
$
18,535,244
$
18,099,207
$
20,358,293
$
18,099,207
Allowance for credit losses on loans to total loans excluding Warehouse Purchase Program
1.63
%
1.71
%
1.68
%
1.52
%
1.56
%
1.63
%
1.56
%
Reconciliation of efficiency ratio to efficiency ratio excluding net gains and losses on the sale or write down of assets and securities:
Noninterest expense
$
152,171
$
135,657
$
145,870
$
123,000
$
119,244
$
556,698
$
484,186
Net interest income
$
236,983
$
239,524
$
236,459
$
243,467
$
256,137
$
956,433
$
1,005,231
Noninterest income
36,568
38,743
39,688
38,266
37,724
153,265
145,128
Less: net (loss) gain on sale or write down of assets
(84)
(45)
1,994
121
2,087
1,986
3,934
Noninterest income excluding net gains and losses on the sale or write down of assets and securities
36,652
38,788
37,694
38,145
35,637
151,279
141,194
Total income excluding net gains and losses on the sale or write down of assets and securities
$
273,635
$
278,312
$
274,153
$
281,612
$
291,774
$
1,107,712
$
1,146,425
Efficiency ratio, excluding net gains and losses on the sale or write down of assets and securities
55.61
%
48.74
%
53.21
%
43.68
%
40.87
%
50.26
%
42.23
%
Reconciliation of efficiency ratio to efficiency ratio, excluding net gains and losses on the sale or write down of assets and securities, merger related expenses and FDIC special assessment:
Noninterest expense
$
152,171
$
135,657
$
145,870
$
123,000
$
119,244
$
556,698
$
484,186
Less: merger related expenses
278
1,104
12,891
860
272
15,133
272
Less: FDIC special assessment
19,919
-
-
-
-
19,919
-
Noninterest expense excluding merger related expenses and FDIC special assessment
$
131,974
$
134,553
$
132,979
$
122,140
$
118,972
$
521,646
$
483,914
Net interest income
$
236,983
$
239,524
$
236,459
$
243,467
$
256,137
$
956,433
$
1,005,231
Noninterest income
36,568
38,743
39,688
38,266
37,724
153,265
145,128
Less: net (loss) gain on sale or write down of assets
(84)
(45)
1,994
121
2,087
1,986
3,934
Noninterest income excluding net gains and losses on the sale or write down of assets and securities
36,652
38,788
37,694
38,145
35,637
151,279
141,194
Total income excluding net gains and losses on the sale or write down of assets and securities
$
273,635
$
278,312
$
274,153
$
281,612
$
291,774
$
1,107,712
$
1,146,425
Efficiency ratio, excluding net gains and losses on the sale or write down of assets and securities, merger related expenses and FDIC special assessment