— Board approved increase in dividend of 3.57% to $0.58 for fourth quarter 2024, representing the 21st consecutive annual increase, with a compound annual growth rate of 11.1%
— Net income of $127.3 million and diluted earnings per share of $1.34 for third quarter 2024
— Net interest margin increased 23 basis points to 2.95% compared to third quarter 2023
— Deposits increased $154.5 million and loans increased $60.0 million during third quarter 2024
— Noninterest-bearing deposits of $9.8 billion, representing 34.9% of total deposits
— Allowance for credit losses on loans and on off-balance sheet credit exposure of $392.0 million and allowance for credit losses on loans to total loans, excluding Warehouse Purchase Program, of 1.68%(1)
— Nonperforming assets remain low at 0.25% of third quarter average interest-earning assets
— Return (annualized) on third quarter average assets of 1.28%, average common equity of 6.93% and average tangible common equity of 13.50%(1)
Prosperity Bancshares, Inc.® (NYSE: PB), the parent company of Prosperity Bank® (collectively, “Prosperity”), reported net income of $127.3 million for the quarter ended September30, 2024 compared with $112.2 million for the same period in 2023. Net income per diluted common share was $1.34 for the quarter ended September30, 2024 compared with $1.20 for the same period in 2023. The annualized return on third quarter average assets was 1.28%. Additionally, deposits increased $154.5million and loans increased $60.0million during the third quarter of 2024. Nonperforming assets remain low at 0.25% of third quarter average interest-earning assets. On April 1, 2024, Lone Star State Bancshares, Inc. (“Lone Star”) merged with Prosperity Bancshares and Lone Star State Bank of West Texas (“Lone Star Bank”) merged with Prosperity Bank (collectively, the “LSSB Merger”).
“I am pleased to announce that the Board of Directors approved increasing the fourth quarter 2024 dividend to $0.58 per share from $0.56 per share that was paid in the prior four quarters. The increase reflects the continued confidence the Board has in our company and our markets. The compound annual growth rate in dividends declared from 2003 to 2024 was 11.1%,” said David Zalman, Prosperity’s Senior Chairman and Chief Executive Officer.
“We continue to share our success with our shareholders through the payment of dividends and opportunistic stock repurchases, while also continuing to grow our capital. Our tangible capital increased $218 million from September 30, 2023, to September 30, 2024. This is the amount Prosperity retained after paying $212 million in dividends and repurchasing $75 million of our common stock during this period, reflecting Prosperity’s stable earnings. Further, Prosperity’s tangible book value per share has a compound annual growth rate of 11% for the last 21 years, or since 2003,” added Zalman.
“The $2.4 trillion Texas economy is the eighth-largest among the nations of the world, larger than Russia, Canada and Italy, among others.An estimated 1,000 to 1,300 people move to Texas every day. Based on US Census Bureau data, in 2023, 473,453 people moved to Texas, which equates to approximately 40,000 per month or 1,300 per day,” added Zalman.
“The Texas and Oklahoma economies continue to benefit from companies relocating from states with higher taxes and more regulation. This, combined with people moving to the states, requires additional housing and infrastructure, a driver for loans and increased business opportunities. We believe our bank is located in two of the best states we can be for future growth and continued prosperity,” concluded Zalman.
Results of Operations for the Three Months Ended September30, 2024
For the three months ended September30, 2024, net income was $127.3 million(2) or $1.34 per diluted common share compared with $112.2 million(3) or $1.20 per diluted common share for the same period in 2023, an increase of $15.1 million or 13.4%. The change was primarily due to an increase in net interest income, partially offset by an increase in noninterest expense related to three months of Lone Star Bank operations. For the three months ended September30, 2024, net income was $127.3 million(2) or $1.34 per diluted common share compared with $111.6 million(4) or $1.17 per diluted common share for the three months ended June30, 2024, an increase of $15.7 million or 14.0%. The change was primarily due to higher net interest income, lower merger related provision for credit losses and lower merger related expenses, partially offset by lower net gain on sale or write-up of securities. Annualized returns on average assets, average common equity and average tangible common equity for the three months ended September30, 2024 were 1.28%, 6.93% and 13.50%(1), respectively. Prosperity’s efficiency ratio (excluding net gains and losses on the sale, write-down or write-up of assets and securities) was 46.87%(1) for the three months ended September30, 2024.
Net interest income before provision for credit losses was $261.7 million for the three months ended September30, 2024 compared with $239.5 million for the same period in 2023, an increase of $22.2 million or 9.3%. The change was primarily due to an increase in the average balances and average rates on loans, an increase in the average balances on federal funds sold and other earning assets and a decrease in the average balances and rate on other borrowings, partially offset by a decrease in the average balances on investment securities and an increase in the average balances and rates on interest-bearing deposits. Net interest income before provision for credit losses increased $2.9 million or 1.1% to $261.7 million for the three months ended September30, 2024 compared with $258.8 million for the three months ended June30, 2024.
The net interest margin on a tax equivalent basis was 2.95% for the three months ended September30, 2024 compared with 2.72% for the same period in 2023 and 2.94% for the three months ended June30, 2024. The year-to-year change was primarily due to an increase in the average balances and average rates on loans, an increase in the average balances on federal funds sold and other earning assets and a decrease in the average balances and rate on other borrowings, partially offset by a decrease in the average balances on investment securities and an increase in the average balances and rates on interest-bearing deposits.
Noninterest income was $41.1 million for the three months ended September 30, 2024 compared $38.7 million for the same period in 2023, an increase of $2.4 million or 6.1%. The change was primarily due to an increase in the net gain (loss) on sale or write-down of assets, partially offset by a decrease in other noninterest income. Noninterest income was $41.1 million for the three months ended September 30, 2024 compared with $46.0 million for the three months ended June 30, 2024, a decrease of $4.9 million or 10.7%. The change was primarily due to lower net gain on sale or write-up of securities, partially offset by an increase in net gain (loss) on sale or write-down of assets.
Noninterest expense was $140.3 million for the three months ended September30, 2024 compared with $135.7 million for the same period in 2023, an increase of $4.7 million or 3.5%, primarily due to an increase in salaries and benefits, an increase in credit and debit card, data processing and software amortization, and additional expenses related to three months of Lone Star Bank operations, partially offset by a decrease in merger related expenses. Noninterest expense was $140.3 million for the three months ended September30, 2024 compared with $152.8 million for the three months ended June30, 2024, a decrease of $12.5 million or 8.2%, primarily due to a decrease in FDIC special assessment, a decrease in merger related expenses and a decrease in other noninterest expense.
Results of Operations for the Nine Months Ended September30, 2024
For the nine months ended September30, 2024, net income was $349.3 million(5) or $3.68 per diluted common share compared with $323.8 million(6) or $3.50 per diluted common share for the same period in 2023. Net income and net income per diluted common share for the nine months ended September 30, 2024 was impacted by an increase in net interest income, a gain on Visa Class B-1 stock exchange net of investment securities sales of $11.2 million, lower merger related provision for credit losses and a decrease in merger related expenses, partially offset by a FDIC special assessment of $3.6 million and an increase in noninterest expenses related to six months of Lone Star Bank operations. Returns on average assets, average common equity and average tangible common equity for the nine months ended September30, 2024 were 1.16%, 6.40% and 12.43%(1), respectively.
Excluding merger related provision and expenses, gain on Visa Class B-1 stock exchange net of investment securities sales, and FDIC special assessment, each net of tax, net income was $353.9 million(1) or $3.74(1) per diluted common share for the nine months ended September30, 2024 and annualized returns on average assets, average common equity and average tangible common equity for the same period were 1.18%(1), 6.49%(1) and 12.59%(1), respectively. Prosperity’s efficiency ratio was 49.25%(1) for the nine months ended September30, 2024; and excluding merger related expenses and FDIC special assessment, the efficiency ratio was 48.33%(1).
Net interest income before provision for credit losses for the nine months ended September30, 2024 was $758.7 million compared with $719.5 million for the same period in 2023, an increase of $39.3 million or 5.5%. The change was primarily due to an increase in the average balances and average rates on loans, an increase in the average balances and average rates on federal funds sold and other earning assets, an increase in loan discount accretion and a decrease in the average rates on other borrowings, partially offset by a decrease in the average balances on investment securities and an increase in the average balances and rates on interest-bearing deposits.
The net interest margin on a tax equivalent basis for the nine months ended September30, 2024 was 2.86% compared with 2.79% for the same period in 2023. The change was primarily due to an increase in the average balances and average rates on loans, an increase in the average balances and average rates on federal funds sold and other earning assets, an increase in loan discount accretion and a decrease in the average rates on other borrowings, partially offset by a decrease in the average balances on investment securities and an increase in the average balances and rates on interest-bearing deposits. The increases in the average balances on loans and deposits were primarily due to the LSSB Merger.
Noninterest income was $126.0 million for the nine months ended September 30, 2024 compared with $116.7 million for the same period in 2023, an increase of $9.3 million or 7.9%, primarily due to a gain on Visa Class B-1 stock exchange net of investment securities sales, and an increase in trust income, partially offset by a decrease in other noninterest income.
Noninterest expense was $429.0 million for the nine months ended September30, 2024 compared with $404.5 million for the same period in 2023, an increase of $24.5 million or 6.1%, primarily due to a FDIC special assessment of $3.6 million, an increase in salaries and benefits and additional expenses related to six months of Lone Star Bank operations and nine months of FirstCapital Bank of Texas, N.A. (“FirstCapital Bank”) operations, partially offset by a decrease in merger related expenses.
Balance Sheet Information
At September30, 2024, Prosperity had $40.115 billion in total assets, an increase of $819.6 million or 2.1%, compared with $39.296 billion at September30, 2023. Linked quarter total assets increased by $353.0 million or 0.9% compared with $39.762 billion at June30, 2024.
Loans were $22.381 billion at September 30, 2024, an increase of $948.1 million or 4.4%, compared with $21.433 billion at September 30, 2023. Linked quarter loans increased $60.0 million or 0.3% (1.1% annualized) from $22.321 billion at June 30, 2024. Loans, excluding Warehouse Purchase Program loans, were $21.152 billion at September 30, 2024 compared with $20.520 billion at September 30, 2023, an increase of $631.8 million or 3.1%, and compared with $21.239 billion at June 30, 2024, a decrease of $87.3 million.
Deposits were $28.088 billion at September 30, 2024, an increase of $774.8 million or 2.8%, compared with $27.313 billion at September 30, 2023. Linked quarter deposits increased $154.5 million or 0.6% (2.2% annualized) from $27.933 billion at June 30, 2024.
The table below provides detail on the impact of loans acquired and deposits assumed in the LSSB Merger:
Balance Sheet Data (at period end)
(In thousands)
Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
Loans acquired (including new production since acquisition
date):
Lone Star Bank $ 1,109,783 $ 1,084,559 $ - $ - $ -
Prosperity Bank
Warehouse Purchase Program loans 1,228,706 1,081,403 864,924 822,245 912,327
All other loans 20,042,363 20,154,853 20,400,323 20,358,293 20,520,386
Total loans $ 22,380,852 $ 22,320,815 $ 21,265,247 $ 21,180,538 $ 21,432,713
Deposits assumed (including new deposits since acquisition
date):
Lone Star Bank $ 1,136,216 $ 1,187,821 $ - $ - $ -
All other deposits 26,951,395 26,745,265 27,175,518 27,179,809 27,312,800
Total deposits $ 28,087,611 $ 27,933,086 $ 27,175,518 $ 27,179,809 $ 27,312,800
As reflected in the table above, loan and deposit growth was impacted by the LSSB Merger.
Excluding loans acquired in the LSSB Merger and new production at the acquired banking centers since April 1, 2024, loans at September 30, 2024 decreased $161.6 million compared with September 30, 2023 and increased $34.8 million compared with June 30, 2024.
Excluding deposits assumed in the LSSB Merger and new deposits generated at the acquired banking centers since April 1, 2024, deposits at September30, 2024 decreased by $361.4 million compared with September30, 2023 and increased by $206.1million compared with June30, 2024.
Asset Quality
Nonperforming assets totaled $89.9 million or 0.25% of quarterly average interest-earning assets at September30, 2024 compared with $69.5 million or 0.20% of quarterly average interest-earning assets at September30, 2023 and $89.6 million or 0.25% of quarterly average interest-earning assets at June30, 2024, with a significant portion of the balance for each period attributable to acquired loans.
The allowance for credit losses on loans and off-balance sheet credit exposures was $392.0 million at September30, 2024 compared with $388.0 million at September30, 2023 and $397.5 million at June30, 2024. There was no provision for credit losses for the three months ended September30, 2024 and 2023, and a provision for credit losses of $9.1million and $18.5 million for the nine months ended September30, 2024 and 2023, respectively. As a result of the loans acquired in the LSSB Merger, the second quarter of 2024 included a $7.9 million provision for credit losses on loans and a $1.2million provision for credit losses on off-balance sheet credit exposures.
The allowance for credit losses on loans was $354.4 million or 1.58% of total loans at September30, 2024 compared with $351.5 million or 1.64% of total loans at September30, 2023 and $359.9 million or 1.61% of total loans at June30, 2024. Excluding Warehouse Purchase Program loans, the allowance for credit losses on loans to total loans was 1.68%(1) at September30, 2024 compared with 1.71%(1) at September30, 2023 and 1.69%(1) at June30, 2024.
Net charge-offs were $5.5 million for the three months ended September30, 2024 compared with net charge-offs of $3.4 million for the three months ended September30, 2023 and net charge-offs of $4.4 million for the three months ended June30, 2024. Net charge-offs for the third quarter of 2024 included $1.4 million related to resolved purchased credit deteriorated (“PCD”) loans, which had specific reserves that were allocated to the charge-offs. Further, $5.0 million of reserves on resolved PCD loans without any related charge-offs was released to the general reserve.
Net charge-offs were $12.0 million for the nine months ended September30, 2024 compared with $18.9 million for the nine months ended September30, 2023. Net charge-offs for the nine months ended September30, 2024 included $3.3 million related to resolved PCD loans, which had specific reserves that were allocated to the charge-offs. Additionally, reserves on PCD loans increased by $26.1million due to Day One accounting for PCD loans at the time of the LSSB Merger. Further, $13.9 million of reserves on resolved PCD loans was released to the general reserve.
Visa Class B-1 Stock Exchange
During the second quarter 2024, Prosperity tendered all of its shares of Visa, Inc. (“Visa”) Class B-1 common stock in exchange for a combination of Visa Class B-2 common stock and Visa Class C common stock, pursuant to the terms and subject to the conditions of the public offering of Visa to exchange its Class B-1 common stock for a combination of shares of its Class B-2 common stock and Class C common stock, which expired on May 3, 2024. Prosperity recorded an unrealized gain of $20.6 million during the second quarter 2024 based on the conversion privilege of the Class C common stock and the closing price of Visa Class A common stock. In the exchange, Prosperity received 48,492 shares of Class B-2 stock, recorded at zero cost basis, and 19,245 shares of Class C common stock and has subsequently sold all shares of Class C stock.
Dividend
Prosperity Bancshares declared a fourth quarter 2024 cash dividend of $0.58 per share to be paid on January 2, 2025, to all shareholders of record as of December 13, 2024, an increase of $0.02 per share, or 3.57%, from the prior quarter.
Stock Repurchase Program
On January 16, 2024, Prosperity Bancshares announced a stock repurchase program under which up to 5%, or approximately 4.7million 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 2024 stock repurchase program, Prosperity Bancshares repurchased zero shares of its common stock during the three months ended September 30, 2024, and approximately 1.2million shares of its common stock at an average weighted price of $60.35 per share during the nine months ended September 30, 2024.
Merger of Lone Star State Bancshares, Inc.
On April 1, 2024, Prosperity completed the merger of Lone Star and its wholly owned subsidiary Lone Star Bank, headquartered in Lubbock, Texas. Lone Star Bank operated 5 full-service 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.
Pursuant to the terms of the definitive agreement, Prosperity issued 2,376,182 shares of Prosperity common stock plus approximately $64.1 million in cash for all outstanding shares of Lone Star in the second quarter of 2024. This resulted in goodwill of $108.0 million as of September 30, 2024, which does not include all the subsequent fair value adjustments that have not yet been finalized.
Conference Call
Prosperity’s management team will host a conference call on Wednesday, October 23, 2024, at 11:30 a.m. Eastern Time (10:30 a.m. Central Time) to discuss Prosperity’s third quarter 2024 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 7527596.
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, FDIC special assessment, net of tax, and net gain on the sale or write-up of securities, 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, write-down or write-up of assets and securities; and the efficiency ratio, excluding net gains and losses on the sale, write-down or write-up of assets and securities, merger related expenses, and 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 September30, 2024, Prosperity Bancshares, Inc.® is a $40.115 billion Houston, 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 287 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; 31 in the Central Texas area including Austin and San Antonio; 43 in the West Texas area including Lubbock, Midland-Odessa, Abilene, Amarillo and Wichita Falls; 15 in the Bryan/College Station area; 6 in the Central Oklahoma area; 8 in the Tulsa, Oklahoma area and 5 in the West Texas area currently doing business as Lone Star Bank.
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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 credit 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 credit 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, 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 any 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; 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 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, 2023, 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 $4.3 million, net of tax, primarily comprised of loan discount accretion of $4.8 million for the three months ended September 30, 2024. (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 $6.1 million, net of tax, primarily comprised of loan discount accretion of $7.2 million, merger related provision for credit losses of $9.1 million, merger related expenses of $4.4 million, FDIC special assessment of $3.6 million, and net gain on sale or write-up of securities of $10.7 million for the three months ended June 30, 2024. (5) Includes purchase accounting adjustments of $12.4 million, net of tax, primarily comprised of loan discount accretion of $13.9 million, merger related provision for credit losses of $9.1 million, merger related expenses of $4.4 million, FDIC special assessment of $3.6 million, and net gain on sale or write-up of securities of $11.2 million for the nine months ended September 30, 2024. (6) Includes purchase accounting adjustments of $5.6 million, net of tax, primarily comprised of loan discount accretion of $5.6 million, merger related provision for credit losses of $18.5 million and merger related expenses of $14.9 million for the nine months ended September 30, 2023.
Bryan/College Station Area Grapevine Teague Rosenberg Midland
Bryan Grapevine Main Tyler-Beckham Shadow Creek North
Bryan-29th Street Kiest Tyler-South Broadway Spring Wadley
Bryan-East Lake Highlands Tyler-University Tomball Wall Street
Bryan-North McKinney Winnsboro Waller West
Caldwell McKinney Eldorado West Columbia
College Station McKinney Redbud Houston Area Wharton Odessa
Hearne North Carrolton Houston Winnie Grant
Huntsville Park Cities Aldine Wirt Kermit Highway
Madisonville Plano Alief Parkway
Navasota Plano-West Bellaire South Texas Area -
New Waverly Preston Forest Beltway Corpus Christi Wichita Falls
Rock Prairie Preston Parker Clear Lake Calallen Cattlemans
Southwest Parkway Preston Royal Copperfield Carmel Kell
Tower Point Red Oak Cypress Northwest
Wellborn Road Richardson Downtown Saratoga Other West Texas Area
Richardson-West Eastex Timbergate Locations
Central Texas Area Rosewood Court Fairfield Water Street Big Spring
Austin The Colony First Colony Brownfield
Cedar Park Tollroad Fry Road Victoria Brownwood
Congress Trinity Mills Gessner Victoria Main Burkburnett
Lakeway Turtle Creek Gladebrook Victoria-Navarro Byers
Liberty Hill West 15th Plano Grand Parkway Victoria-North Cisco
Northland West Allen Heights Victoria Salem Comanche
Oak Hill Westmoreland Highway 6 West Early
Research Blvd Wylie Little York Other South Texas Area Floydada
Westlake Medical Center Locations Gorman
Fort Worth Memorial Drive Alice Henrietta
Other Central Texas Area Haltom City Northside Aransas Pass Levelland
Locations Hulen Pasadena Beeville Littlefield
Bastrop Keller Pecan Grove Colony Creek Merkel
Canyon Lake Museum Place Pin Oak Cuero Plainview
Dime Box Renaissance Square River Oaks Edna San Angelo
Dripping Springs Roanoke Sugar Land Goliad Slaton
Elgin Stockyards SW Medical Center Gonzales Snyder
Flatonia Tanglewood Hallettsville
Fredericksburg Other Dallas/Fort Worth Area The Plaza Kingsville Lone Star West Texas Area
Georgetown Locations Uptown Mathis Big Spring
Gruene Arlington Waugh Drive Padre Island Brownfield
Horseshoe Bay Azle Westheimer Palacios Lubbock
Kingsland Ennis West University Port Lavaca Midland
La Grange Gainesville Woodcreek Portland Odessa
Lexington Glen Rose Rockport
Marble Falls Granbury Katy Sinton Oklahoma
New Braunfels Grand Prairie Cinco Ranch Taft Central Oklahoma Area
Pleasanton Jacksboro Katy-Spring Green Yoakum Oklahoma City
Round Rock Mesquite Yorktown 23rd Street
San Antonio Muenster The Woodlands Expressway
Schulenburg Runaway Bay The Woodlands-College Park West Texas Area I-240
Seguin Sanger The Woodlands-I-45 Abilene Memorial
Smithville Waxahachie The Woodlands-Research Forest Antilley Road
Thorndale Weatherford Barrow Street Other Central Oklahoma Area
Weimar Other Houston Area Cypress Street Locations
East Texas Area Locations Judge Ely Edmond
Dallas/Fort Worth Area Athens Angleton Mockingbird Norman
Dallas Blooming Grove Bay City
14th Street Plano Canton Beaumont Amarillo Tulsa Area
Abrams Centre Carthage Cleveland Hillside Tulsa
Addison Corsicana East Bernard Soncy Garnett
Allen Crockett El Campo Harvard
Balch Springs Eustace Dayton Lubbock Memorial
Camp Wisdom Gilmer Galveston 4th Street Sheridan
Carrollton Grapeland Groves 66th Street S. Harvard
Cedar Hill Gun Barrel City Hempstead 82nd Street Utica Tower
Coppell Jacksonville Hitchcock 86th Street Yale
East Plano Kerens Liberty 98th Street
Euless Longview Magnolia Avenue Q Other Tulsa Area Locations
Frisco Mount Vernon Magnolia Parkway Milwaukee Owasso
Frisco Warren Palestine Mont Belvieu North University
Frisco-West Rusk Nederland Texas Tech Student Union
Garland Seven Points Needville
Prosperity Bancshares, Inc.®
Financial Highlights (Unaudited)
(In thousands)
Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023
Balance Sheet Data (at period end)
Loans held for sale $ 6,113 $ 9,951 $ 6,380 $ 5,734 $ 10,187
Loans held for investment 21,146,033 21,229,461 20,393,943 20,352,559 20,510,199
Loans held for investment - Warehouse Purchase Program 1,228,706 1,081,403 864,924 822,245 912,327
Total loans 22,380,852 22,320,815 21,265,247 21,180,538 21,432,713
Investment securities(A) 11,300,756 11,702,139 12,301,138 12,803,896 13,192,742
Federal funds sold 208 234 250 260 234
Allowance for credit losses on loans (354,397) (359,852) (330,219) (332,362) (351,495)
Cash and due from banks 2,209,863 1,507,604 1,086,444 458,153 512,239
Goodwill 3,504,388 3,504,107 3,396,402 3,396,086 3,396,459
Core deposit intangibles, net 70,178 74,324 60,757 63,994 67,553
Other real estate owned 5,757 4,960 2,204 1,708 9,320
Fixed assets, net 373,812 377,394 372,333 369,992 370,237
Other assets 623,903 630,569 601,964 605,612 665,682
Total assets $ 40,115,320 $ 39,762,294 $ 38,756,520 $ 38,547,877 $ 39,295,684
Noninterest-bearing deposits $ 9,811,361 $ 9,706,505 $ 9,526,535 $ 9,776,572 $ 10,281,893
Interest-bearing deposits 18,276,250 18,226,581 17,648,983 17,403,237 17,030,907
Total deposits 28,087,611 27,933,086 27,175,518 27,179,809 27,312,800
Other borrowings 3,900,000 3,900,000 3,900,000 3,725,000 4,250,000
Securities sold under repurchase agreements 228,896 233,689 261,671 309,277 300,714
Subordinated debentures - - - - -
Allowance for credit losses on off-balance sheet credit exposures 37,646 37,646 36,503 36,503 36,503
Other liabilities 499,918 374,429 278,284 217,958 362,990
Total liabilities 32,754,071 32,478,850 31,651,976 31,468,547 32,263,007
Shareholders' equity(B) 7,361,249 7,283,444 7,104,544 7,079,330 7,032,677
Total liabilities and equity $ 40,115,320 $ 39,762,294 $ 38,756,520 $ 38,547,877 $ 39,295,684
(A) Includes $(1,070), $(2,007), $(2,954), $(1,770) and $(2,442) in unrealized losses on available for sale securities for the quarterly periods ended September 30, 2024, June 30, 2024, March 31, 2024, December 31, 2023 and September 30, 2023, respectively. (B) Includes $(845), $(1,586), $(2,333), $(1,398) and $(1,930) in after-tax unrealized losses on available for sale securities for the quarterly periods ended September 30, 2024, June 30, 2024, March 31, 2024, December 31, 2023 and September 30, 2023, respectively.
Prosperity Bancshares, Inc.®
Financial Highlights (Unaudited)
(In thousands)
Three Months Ended Year-to-Date
Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, Sep 30, Sep 30,
2024 2024 2024 2023 2023 2024 2023
Income Statement Data
Interest income:
Loans $ 337,451 $ 336,428 $ 306,228 $ 306,562 $ 308,678 $ 980,107 $ 842,434
Securities(C) 59,617 62,428 66,421 68,077 69,987 188,466 215,225
Federal funds sold and other earning assets 20,835 14,095 9,265 1,793 1,689 44,195 10,452
Total interest income 417,903 412,951 381,914 376,432 380,354 1,212,768 1,068,111
Interest expense:
Deposits 107,758 106,124 92,692 84,969 76,069 306,574 187,376
Other borrowings 46,792 46,282 48,946 52,386 62,190 142,020 153,937
Securities sold under repurchase agreements 1,662 1,759 2,032 2,094 2,533 5,453 7,310
Subordinated debentures - - - - 38 - 38
Total interest expense 156,212 154,165 143,670 139,449 140,830 454,047 348,661
Net interest income 261,691 258,786 238,244 236,983 239,524 758,721 719,450
Provision for credit losses - 9,066 - - - 9,066 18,540
Net interest income after provision for credit losses 261,691 249,720 238,244 236,983 239,524 749,655 700,910
Noninterest income:
Nonsufficient funds (NSF) fees 9,016 8,153 8,288 8,365 8,719 25,457 25,326
Credit card, debit card and ATM card income 9,620 9,384 8,861 9,314 9,285 27,865 27,157
Service charges on deposit accounts 6,664 6,436 6,406 6,316 6,262 19,506 18,266
Trust income 3,479 3,601 4,156 3,360 3,326 11,236 9,909
Mortgage income 962 745 610 542 857 2,317 1,756
Brokerage income 1,258 1,186 1,235 1,059 1,067 3,679 3,216
Bank owned life insurance income 2,028 1,885 2,047 1,882 1,864 5,960 4,771
Net gain (loss) on sale or write-down of assets 3,178 (903) (35) (84) (45) 2,240 2,070
Net gain on sale or write-up of securities 224 10,723 298 - - 11,245 -
Other noninterest income 4,670 4,793 7,004 5,814 7,408 16,467 24,226
Total noninterest income 41,099 46,003 38,870 36,568 38,743 125,972 116,697
Noninterest expense:
Salaries and benefits 88,367 89,584 85,771 80,486 85,423 263,722 247,944
Net occupancy and equipment 9,291 8,915 8,623 9,093 9,464 26,829 26,424
Credit and debit card, data processing and software amortization 11,985 11,998 10,975 10,741 10,919 34,958 30,829
Regulatory assessments and FDIC insurance 5,726 10,317 5,538 24,940 5,155 21,581 15,225
Core deposit intangibles amortization 4,146 4,156 3,237 3,559 3,576 11,539 9,117
Depreciation 4,741 4,836 4,686 4,607 4,585 14,263 13,676
Communications 3,360 3,485 3,402 3,572 3,686 10,247 10,841
Other real estate expense 12 69 187 165 153 268 (253)
Net (gain) loss on sale or write-down of (97) 31 (138) 34 (734) (204) (780)
other real estate
Merger related expenses 63 4,381 - 278 1,104 4,444 14,855
Other noninterest expense 12,744 15,070 13,567 14,696 12,326 41,381 36,649
Total noninterest expense 140,338 152,842 135,848 152,171 135,657 429,028 404,527
Income before income taxes 162,452 142,881 141,266 121,380 142,610 446,599 413,080
Provision for income taxes 35,170 31,279 30,840 25,904 30,402 97,289 89,240
Net income available to common shareholders $ 127,282 $ 111,602 $ 110,426 $ 95,476 $ 112,208 $ 349,310 $ 323,840
(C) Interest income on securities was reduced by net premium amortization of $5,574, $5,831, $5,822, $6,428 and $6,897 for the three months ended September 30, 2024, June 30, 2024, March 31, 2024, December 31, 2023 and September 30, 2023, respectively, and $17,227 and $21,412 for the nine months ended September 30, 2024 and 2023, 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
Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, Sep 30, Sep 30,
2024 2024 2024 2023 2023 2024 2023
Profitability
Net income (D)(E) $ 127,282 $ 111,602 $ 110,426 $ 95,476 $ 112,208 $ 349,310 $ 323,840
Basic earnings per share $ 1.34 $ 1.17 $ 1.18 $ 1.02 $ 1.20 $ 3.68 $ 3.50
Diluted earnings per share $ 1.34 $ 1.17 $ 1.18 $ 1.02 $ 1.20 $ 3.68 $ 3.50
Return on average assets (F)(J) 1.28 % 1.12 % 1.13 % 0.98 % 1.13 % 1.16 % 1.11 %
Return on average common equity (F)(J) 6.93 % 6.10 % 6.20 % 5.39 % 6.39 % 6.40 % 6.25 %
Return on average tangible common equity(F)(G)(J) 13.50 % 11.81 % 12.06 % 10.54 % 12.58 % 12.43 % 12.17 %
Tax equivalent net interest margin (D) (E)(H) 2.95 % 2.94 % 2.79 % 2.75 % 2.72 % 2.86 % 2.79 %
Efficiency ratio (G) (I)(K) 46.87 % 51.82 % 49.07 % 55.61 % 48.74 % 49.25 % 48.50 %
Liquidity and Capital Ratios
Equity to assets 18.35 % 18.32 % 18.33 % 18.37 % 17.90 % 18.35 % 17.90 %
Common equity tier 1 capital 15.84 % 15.42 % 15.75 % 15.54 % 14.98 % 15.84 % 14.98 %
Tier 1 risk-based capital 15.84 % 15.42 % 15.75 % 15.54 % 14.98 % 15.84 % 14.98 %
Total risk-based capital 17.10 % 16.67 % 17.00 % 16.56 % 16.05 % 17.10 % 16.05 %
Tier 1 leverage capital 10.52 % 10.29 % 10.37 % 10.39 % 10.03 % 10.52 % 10.03 %
Period end tangible equity to period end 10.36 % 10.24 % 10.33 % 10.31 % 9.96 % 10.36 % 9.96 %
tangible assets (G)
Other Data
Weighted-average shares used in computing
earnings per common share
Basic 95,261 95,765 93,706 93,715 93,720 94,912 92,628
Diluted 95,261 95,765 93,706 93,715 93,720 94,912 92,628
Period end shares outstanding 95,261 95,262 93,525 93,722 93,717 95,261 93,717
Cash dividends paid per common share $ 0.56 $ 0.56 $ 0.56 $ 0.56 $ 0.55 $ 1.68 $ 1.65
Book value per common share $ 77.27 $ 76.46 $ 75.96 $ 75.54 $ 75.04 $ 77.27 $ 75.04
Tangible book value per common share (G) $ 39.75 $ 38.89 $ 39.00 $ 38.62 $ 38.08 $ 39.75 $ 38.08
Common Stock Market Price
High $ 74.87 $ 66.18 $ 68.88 $ 68.79 $ 63.65 $ 74.87 $ 78.76
Low $ 58.66 $ 57.16 $ 60.08 $ 49.60 $ 52.62 $ 57.16 $ 52.62
Period end closing price $ 72.07 $ 61.14 $ 65.78 $ 67.73 $ 54.58 $ 72.07 $ 54.58
Employees - FTE (excluding overtime) 3,896 3,902 3,901 3,850 3,853 3,896 3,853
Number of banking centers 287 288 283 285 285 287 285
(D) Includes purchase accounting adjustments for the periods presented as follows:
Three Months Ended Year-to-Date
Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, Sep 30, Sep 30,
2024 2024 2024 2023 2023 2024 2023
Loan discount accretion
Non-PCD $3,616 $4,797 $1,312 $1,543 $1,508 $9,725 $3,282
PCD $1,212 $2,394 $548 $937 $767 $4,154 $2,284
Securities net accretion $555 $564 $561 $598 $626 $1,680 $1,050
Time deposits amortization $(40) $4 $(97) $(150) $(210) $(133) $(450)
(E) Using effective tax rate of 21.6%, 21.9%, 21.8%, 21.3% and 21.3% for the three months ended September 30, 2024, June 30, 2024, March 31, 2024, December 31, 2023 and September 30, 2023, respectively, and 21.8% and 21.6% for the nine months ended September 30, 2024 and 2023, 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 366-day or 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, write-down or write-up 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, FDIC special assessment, net of tax, and net gain on sale or write-up of securities, 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
Sep 30, 2024 Jun 30, 2024 Sep 30, 2023
Average Interest Average (L) Average Interest Average (L) Average Interest Average (L)
Balance Earned/ Yield/ Balance Earned/ Yield/ Balance Earned/ Yield/
Interest Rate Interest Rate Interest Rate
Paid Paid Paid
Interest-earning assets:
Loans held for sale $ 7,913 $ 137 6.89% $ 8,446 $ 149 7.10% $ 9,832 $ 162 6.54%
Loans held for investment 21,107,139 316,939 5.97% 21,328,824 319,361 6.02% 20,496,075 290,566 5.62%
Loans held for investment - Warehouse Purchase Program 1,114,681 20,375 7.27% 917,026 16,918 7.42% 972,936 17,950 7.32%
Total loans 22,229,733 337,451 6.04% 22,254,296 336,428 6.08% 21,478,843 308,678 5.70%
Investment securities 11,612,193 59,617 2.04% (M) 12,179,074 62,428 2.06% (M) 13,512,137 69,987 2.05% (M)
Federal funds sold and other earning assets 1,531,788 20,835 5.41% 1,026,251 14,095 5.52% 125,690 1,689 5.33%
Total interest-earning assets 35,373,714 417,903 4.70% 35,459,621 412,951 4.68% 35,116,670 380,354 4.30%
Allowance for credit losses on loans (358,237) (332,904) (343,967)
Noninterest-earning assets 4,873,725 4,822,131 4,829,336
Total assets $ 39,889,202 $ 39,948,848 $ 39,602,039
Interest-bearing liabilities:
Interest-bearing demand deposits $ 4,774,975 $ 9,251 0.77% $ 4,839,194 $ 9,133 0.76% $ 4,768,485 $ 5,182 0.43%
Savings and money market deposits 8,908,315 49,824 2.23% 9,084,051 50,252 2.22% 8,977,824 44,446 1.96%
Certificates and other time deposits 4,564,232 48,683 4.24% 4,400,922 46,739 4.27% 3,172,178 26,441 3.31%
Other borrowings 3,900,000 46,792 4.77% 3,900,000 46,282 4.77% 4,671,449 62,190 5.28%
Securities sold under repurchase agreements 242,813 1,662 2.72% 258,637 1,759 2.74% 389,149 2,533 2.58%
Subordinated debentures - - - - - - 2,578 38 5.85%
Total interest-bearing liabilities 22,390,335 156,212 2.78% (N) 22,482,804 154,165 2.76% (N) 21,981,663 140,830 2.54% (N)
Noninterest-bearing liabilities:
Noninterest-bearing demand deposits 9,680,785 9,780,211 10,269,162
Allowance for credit losses on off-balance sheet credit exposures 37,646 36,729 36,504
Other liabilities 433,171 327,847 290,217
Total liabilities 32,541,937 32,627,591 32,577,546
Shareholders' equity 7,347,265 7,321,257 7,024,493
Total liabilities and shareholders' equity $ 39,889,202 $ 39,948,848 $ 39,602,039
Net interest income and margin $ 261,691 2.94% $ 258,786 2.94% $ 239,524 2.71%
Non-GAAP to GAAP reconciliation:
Tax equivalent adjustment 808 800 1,000
Net interest income and margin $ 262,499 2.95% $ 259,586 2.94% $ 240,524 2.72%
(tax equivalent basis)
(L) Annualized and based on an actual 366-day or 365-day basis. (M) Yield on securities was impacted by net premium amortization of $5,574, $5,831 and $6,897 for the three months ended September 30, 2024, June 30, 2024 and September 30, 2023, respectively. (N) Total cost of funds, including noninterest bearing deposits, was 1.94%, 1.92% and 1.73% for the three months ended September 30, 2024, June 30, 2024 and September 30, 2023, respectively.
Prosperity Bancshares, Inc.®
Financial Highlights (Unaudited)
(Dollars in thousands)
YIELD ANALYSIS Year-to-Date
Sep 30, 2024 Sep 30, 2023
Average Interest Average (O) Average Interest Average (O)
Balance Earned/ Yield/ Balance Earned/ Yield/
Interest Rate Interest Rate
Paid Paid
Interest-earning assets:
Loans held for sale $ 7,278 $ 378 6.94% $ 5,389 $ 267 6.62%
Loans held for investment 21,312,440 928,973 5.82% 19,546,826 797,861 5.46%
Loans held for investment - Warehouse Purchase Program 918,172 50,756 7.38% 831,143 44,306 7.13%
Total loans 22,237,890 980,107 5.89% 20,383,358 842,434 5.53%
Investment securities 12,161,391 188,466 2.07% (P) 13,937,483 215,225 2.06% (P)
Federal funds sold and other earning assets 1,153,335 44,195 5.12% 290,275 10,452 4.81%
Total interest-earning assets 35,552,616 1,212,768 4.56% 34,611,116 1,068,111 4.13%
Allowance for credit losses on loans (341,659) (303,518)
Noninterest-earning assets 4,823,938 4,722,064
Total assets $ 40,034,895 $ 39,029,662
Interest-bearing liabilities:
Interest-bearing demand deposits $ 4,947,514 $ 26,807 0.72% $ 5,260,463 $ 12,765 0.32%
Savings and money market deposits 9,060,992 147,228 2.17% 9,235,646 122,992 1.78%
Certificates and other time deposits 4,356,700 132,539 4.06% 2,627,402 51,619 2.63%
Other borrowings 3,960,821 142,020 4.79% 4,001,994 153,937 5.14%
Securities sold under repurchase agreements 265,878 5,453 2.74% 419,304 7,310 2.33%
Subordinated debentures - - - 1,375 38 3.69%
Total interest-bearing liabilities 22,591,905 454,047 2.68% (Q) 21,546,184 348,661 2.16% (Q)
Noninterest-bearing liabilities:
Noninterest-bearing demand deposits 9,759,927 10,310,878
Allowance for credit losses on off-balance sheet credit exposures 36,994 32,181
Other liabilities 372,060 232,903
Total liabilities 32,760,886 32,122,146
Shareholders' equity 7,274,009 6,907,516
Total liabilities and shareholders' equity $ 40,034,895 $ 39,029,662
Net interest income and margin $ 758,721 2.85% $ 719,450 2.78%
Non-GAAP to GAAP reconciliation:
Tax equivalent adjustment 2,416 2,866
Net interest income and margin (tax equivalent basis) $ 761,137 2.86% $ 722,316 2.79%
(O) Based on an actual 366-day or 365-day basis. (P) Yield on securities was impacted by net premium amortization of $17,227 and $21,412 for the nine months ended September 30, 2024 and 2023, respectively. (Q) Total cost of funds, including noninterest bearing deposits, was 1.87% and 1.46% for the nine months ended September 30, 2024 and 2023, respectively.
Prosperity Bancshares, Inc.®
Financial Highlights (Unaudited)
(Dollars in thousands)
Three Months Ended
Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023
YIELD TREND (R)
Interest-Earning Assets:
Loans held for sale 6.89 % 7.10 % 6.77 % 7.47 % 6.54 %
Loans held for investment 5.97 % 6.02 % 5.77 % 5.68 % 5.62 %
Loans held for investment - Warehouse 7.27 % 7.42 % 7.51 % 7.46 % 7.32 %
Purchase Program
Total loans 6.04 % 6.08 % 5.83 % 5.75 % 5.70 %
Investment securities (S) 2.04 % 2.06 % 2.10 % 2.07 % 2.05 %
Federal funds sold and other earning assets 5.41 % 5.52 % 5.54 % 5.68 % 5.33 %
Total interest-earning assets 4.70 % 4.68 % 4.45 % 4.35 % 4.30 %
Interest-Bearing Liabilities:
Interest-bearing demand deposits 0.77 % 0.76 % 0.66 % 0.56 % 0.43 %
Savings and money market deposits 2.23 % 2.22 % 2.13 % 2.03 % 1.96 %
Certificates and other time deposits 4.24 % 4.27 % 4.05 % 3.80 % 3.31 %
Other borrowings 4.77 % 4.77 % 4.82 % 5.16 % 5.28 %
Securities sold under repurchase agreements 2.72 % 2.74 % 2.76 % 2.77 % 2.58 %
Subordinated debentures - - - - 5.85 %
Total interest-bearing liabilities 2.78 % 2.76 % 2.62 % 2.58 % 2.54 %
Net Interest Margin 2.94 % 2.94 % 2.78 % 2.74 % 2.71 %
Net Interest Margin (tax equivalent) 2.95 % 2.94 % 2.79 % 2.75 % 2.72 %
(R) Annualized and based on average balances on an actual 366-day or 365-day basis. (S) Yield on securities was impacted by net premium amortization of $5,574, $5,831, $5,822, $6,428 and $6,897 for the three months ended September 30, 2024, June30, 2024, March 31, 2024, December 31, 2023 and September 30, 2023, respectively.
Prosperity Bancshares, Inc.®
Financial Highlights (Unaudited)
(Dollars in thousands)
Three Months Ended
Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023
Balance Sheet Averages
Loans held for sale $ 7,913 $ 8,446 $ 5,467 $ 9,828 $ 9,832
Loans held for investment 21,107,139 21,328,824 20,415,316 20,370,915 20,496,075
Loans held for investment - Warehouse Purchase 1,114,681 917,026 720,650 770,481 972,936
Program
Total loans 22,229,733 22,254,296 21,141,433 21,151,224 21,478,843
Investment securities 11,612,193 12,179,074 12,693,268 13,074,243 13,512,137
Federal funds sold and other earning assets 1,531,788 1,026,251 672,840 125,295 125,690
Total interest-earning assets 35,373,714 35,459,621 34,507,541 34,350,762 35,116,670
Allowance for credit losses on loans (358,237) (332,904) (331,708) (346,493) (343,967)
Cash and due from banks 304,911 295,077 315,612 302,864 301,201
Goodwill 3,504,300 3,482,448 3,396,177 3,396,224 3,387,293
Core deposit intangibles, net 72,330 59,979 62,482 65,986 69,551
Other real estate 5,339 3,071 2,319 4,781 6,301
Fixed assets, net 375,626 377,369 372,458 370,900 367,814
Other assets 611,219 604,187 610,649 670,187 697,176
Total assets $ 39,889,202 $ 39,948,848 $ 38,935,530 $ 38,815,211 $ 39,602,039
Noninterest-bearing deposits $ 9,680,785 $ 9,780,211 $ 9,443,249 $ 9,960,240 $ 10,269,162
Interest-bearing demand deposits 4,774,975 4,839,194 5,143,585 4,822,698 4,768,485
Savings and money market deposits 8,908,315 9,084,051 8,889,077 8,815,892 8,977,824
Certificates and other time deposits 4,564,232 4,400,922 3,683,815 3,442,115 3,172,178
Total deposits 27,928,307 28,104,378 27,159,726 27,040,945 27,187,649
Other borrowings 3,900,000 3,900,000 4,083,132 4,028,263 4,671,449
Securities sold under repurchase agreements 242,813 258,637 296,437 300,317 389,149
Subordinated debentures - - - - 2,578
Allowance for credit losses on off-balance sheet credit 37,646 36,729 36,503 36,503 36,504
exposures
Other liabilities 433,171 327,847 238,480 323,344 290,217
Shareholders' equity 7,347,265 7,321,257 7,121,252 7,085,839 7,024,493
Total liabilities and equity $ 39,889,202 $ 39,948,848 $ 38,935,530 $ 38,815,211 $ 39,602,039
Prosperity Bancshares, Inc.®
Financial Highlights (Unaudited)
(Dollars in thousands)
Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023
Period End Balances
Loan Portfolio
Commercial and industrial $1,970,844 8.8% $2,023,531 9.1% $1,932,534 9.1% $1,936,717 9.2% $2,153,391 10.1%
Warehouse purchase program 1,228,706 5.5% 1,081,403 4.8% 864,924 4.1% 822,245 3.9% 912,327 4.3%
Construction, land development and other land loans 2,814,521 12.6% 2,828,372 12.7% 2,876,588 13.5% 3,076,591 14.5% 3,200,479 14.9%
1-4 family residential 7,557,858 33.8% 7,496,485 33.6% 7,331,251 34.5% 7,207,226 34.0% 7,032,593 32.8%
Home equity 919,676 4.1% 930,428 4.2% 950,169 4.5% 960,852 4.5% 969,498 4.5%
Commercial real estate (includes multi-family residential) 5,869,687 26.2% 5,961,884 26.7% 5,631,460 26.5% 5,662,948 26.7% 5,606,837 26.2%
Agriculture (includes farmland) 1,033,224 4.6% 1,037,361 4.6% 813,092 3.8% 816,043 3.9% 801,933 3.7%
Consumer and other 413,548 1.8% 340,611 1.5% 326,915 1.5% 329,593 1.6% 306,018 1.4%
Energy 572,788 2.6% 620,740 2.8% 538,314 2.5% 368,323 1.7% 449,637 2.1%
Total loans $22,380,852 $22,320,815 $21,265,247 $21,180,538 $21,432,713
Deposit Types
Noninterest-bearing DDA $9,811,361 34.9% $9,706,505 34.7% $9,526,535 35.1% $9,776,572 36.0% $10,281,893 37.6%
Interest-bearing DDA 4,800,758 17.1% 4,762,730 17.1% 4,867,247 17.9% 5,115,945 18.8% 4,797,259 17.6%
Money market 6,166,792 22.0% 6,180,769 22.1% 6,134,221 22.6% 5,859,701 21.6% 5,892,505 21.6%
Savings 2,707,982 9.6% 2,765,197 9.9% 2,830,117 10.4% 2,881,397 10.6% 3,005,936 11.0%
Certificates and other time deposits 4,600,718 16.4% 4,517,885 16.2% 3,817,398 14.0% 3,546,194 13.0% 3,335,207 12.2%
Total deposits $28,087,611 $27,933,086 $27,175,518 $27,179,809 $27,312,800
Loan to Deposit Ratio 79.7% 79.9% 78.3% 77.9% 78.5%
Prosperity Bancshares, Inc.®
Financial Highlights (Unaudited)
(Dollars in thousands)
Construction Loans
Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023
Single family residential construction $ 836,571 29.7 % $ 940,381 33.2 % $ 1,031,163 35.8 % $ 1,088,636 35.4 % $ 1,157,016 36.1 %
Land development 256,571 9.1 % 241,639 8.5 % 290,243 10.1 % 367,849 12.0 % 359,518 11.2 %
Raw land 263,411 9.4 % 291,112 10.3 % 311,265 10.8 % 328,365 10.7 % 340,659 10.7 %
Residential lots 217,920 7.7 % 222,343 7.9 % 224,901 7.8 % 222,591 7.2 % 216,659 6.8 %
Commercial lots 58,472 2.1 % 60,264 2.1 % 59,691 2.1 % 155,415 5.0 % 154,425 4.8 %
Commercial construction and other 1,183,127 42.0 % 1,074,361 38.0 % 959,687 33.4 % 914,436 29.7 % 973,022 30.4 %
Net unaccreted discount (1,551) (1,728) (362) (701) (820)
Total construction loans $ 2,814,521 $ 2,828,372 $ 2,876,588 $ 3,076,591 $ 3,200,479
Non-Owner Occupied Commercial Real Estate Loans by Metropolitan Statistical Area (MSA) as of September 30, 2024
Houston Dallas Austin OK City Tulsa Other (T) Total
Collateral Type
Shopping center/retail $ 365,720 $ 263,161 $ 58,574 $ 15,161 $ 13,648 $ 324,444 $ 1,040,708
Commercial and industrial 141,749 114,151 22,622 34,900 17,150 291,397 621,969
buildings
Office buildings 99,817 215,635 91,439 46,970 3,651 95,542 553,054
Medical buildings 82,161 16,906 1,699 43,107 30,230 71,716 245,819
Apartment buildings 113,670 128,055 18,335 14,618 14,937 244,729 534,344
Hotel 106,115 99,032 32,554 17,506 - 191,873 447,080
Other 174,867 56,237 28,891 7,709 1,555 94,037 363,296
Total $ 1,084,099 $ 893,177 $ 254,114 $ 179,971 $ 81,171 $ 1,313,738 $ 3,806,270 (U)
Acquired Loans
Non-PCD Loans PCD Loans Total Acquired Loans
Balance at Balance at Balance at Balance at Balance at Balance at Balance at Balance at Balance at
Acquisition Jun 30, Sep 30, Acquisition Jun 30, Sep 30, Acquisition Jun 30, Sep 30,
Date 2024 2024 Date 2024 2024 Date 2024 2024
Loan marks:
Acquired banks (V) $ 345,599 $ (920) $ (950) $ 320,052 $ 2,412 $ 2,320 $ 665,651 $ 1,492 $ 1,370
FirstCapital Bank (W) 22,648 17,210 15,853 7,790 4,305 4,041 30,438 21,515 19,894
Lone Star Bank (X) 20,378 17,960 15,709 4,558 2,790 1,913 24,936 20,750 17,622
Total 388,625 34,250 30,612 332,400 9,507 8,274 721,025 43,757 38,886
Acquired portfolio loan
balances:
Acquired banks (V) 12,286,159 875,474 845,545 689,573 57,417 57,780 12,975,732 932,891 903,325
FirstCapital Bank (W) 1,021,694 652,527 600,616 627,991 395,743 356,084 1,649,685 1,048,270 956,700
Lone Star Bank (X) 1,016,128 919,865 868,114 59,109 59,075 54,793 1,075,237 978,940 922,907
Total 14,323,981 2,447,866 2,314,275 1,376,673 512,235 468,657 15,700,654 (Y) 2,960,101 2,782,932
Acquired portfolio loan $ 13,935,356 $ 2,413,616 $ 2,283,663 $ 1,044,273 $ 502,728 $ 460,383 $ 14,979,629 $ 2,916,344 $ 2,744,046
balances less loan marks
(T) Includes other MSA and non-MSA regions. (U) Represents a portion of total commercial real estate loans of $5.870 billion as of September 30, 2024. (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) On May 1, 2023, Prosperity completed the merger (the "FB Merger") of First Bancshares and its wholly owned subsidiary FirstCapital Bank. The FB 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) The LSSB Merger was completed on April 1, 2024 and resulted in the addition of $1.075 billion in loans with related purchase accounting adjustments of $24.9 million at acquisition date, which were subject to subsequent fair value adjustments. (Y) Actual principal balances acquired.
Prosperity Bancshares, Inc.®
Financial Highlights (Unaudited)
(Dollars in thousands)
Three Months Ended Year-to-Date
Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, Sep 30, Sep 30,
2024 2024 2024 2023 2023 2024 2023
Asset Quality
Nonaccrual loans $ 83,969 $ 84,175 $ 78,475 $ 68,688 $ 59,729 $ 83,969 $ 59,729
Accruing loans 90 or more days past due 20 322 3,035 2,195 397 20 397
Total nonperforming loans 83,989 84,497 81,510 70,883 60,126 83,989 60,126
Repossessed assets 177 113 97 76 35 177 35
Other real estate 5,757 4,960 2,204 1,708 9,320 5,757 9,320
Total nonperforming assets $ 89,923 $ 89,570 $ 83,811 $ 72,667 $ 69,481 $ 89,923 $ 69,481
Nonperforming assets:
Commercial and industrial (includes energy) $ 13,642 $ 16,340 $ 10,199 $ 8,957 $ 22,219 $ 13,642 $ 22,219
Construction, land development and other land 4,053 4,895 15,826 17,343 8,684 4,053 8,684
loans
1-4 family residential (includes home equity) 36,660 33,935 30,206 26,096 23,708 36,660 23,708
Commercial real estate (includes multi-family 32,803 31,776 23,720 18,775 13,341 32,803 13,341
residential)
Agriculture (includes farmland) 2,686 2,550 3,714 1,460 1,511 2,686 1,511
Consumer and other 79 74 146 36 18 79 18
Total $ 89,923 $ 89,570 $ 83,811 $ 72,667 $ 69,481 $ 89,923 $ 69,481
Number of loans/properties 346 349 319 292 260 346 260
Allowance for credit losses on loans $ 354,397 $ 359,852 $ 330,219 $ 332,362 $ 351,495 $ 354,397 $ 351,495
Net charge-offs (recoveries):
Commercial and industrial (includes energy) $ 3,309 $ 2,777 $ 283 $ 16,123 $ 1,594 $ 6,369 $ 282
Construction, land development and other land 378 109 (2) (5) (5) 485 32
loans
1-4 family residential (includes home equity) 409 425 457 20 (78) 1,291 (288)
Commercial real estate (includes multi-family 258 (381) (17) 1,590 570 (140) 15,526
residential)
Agriculture (includes farmland) (116) 214 23 - - 121 (84)
Consumer and other 1,217 1,224 1,399 1,405 1,327 3,840 3,390
Total $ 5,455 $ 4,368 $ 2,143 $ 19,133 $ 3,408 $ 11,966 $ 18,858
Asset Quality Ratios
Nonperforming assets to average interest-earning 0.25 % 0.25 % 0.24 % 0.21 % 0.20 % 0.25 % 0.20 %
assets
Nonperforming assets to loans and other real estate 0.40 % 0.40 % 0.39 % 0.34 % 0.32 % 0.40 % 0.32 %
Net charge-offs to average loans (annualized) 0.10 % 0.08 % 0.04 % 0.36 % 0.06 % 0.07 % 0.12 %
Allowance for credit losses on loans to total loans 1.58 % 1.61 % 1.55 % 1.57 % 1.64 % 1.58 % 1.64 %
Allowance for credit losses on loans to total loans, 1.68 % 1.69 % 1.62 % 1.63 % 1.71 % 1.68 % 1.71 %
excluding Warehouse Purchase Program loans (G)
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, FDIC special assessment, net of tax, and net gain on sale or write-up of securities, 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, write-down or write-up of assets and securities; and the efficiency ratio, excluding net gains and losses on the sale, write-down or write-up of assets and securities, merger related expenses and 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
Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, Sep 30, Sep 30,
2024 2024 2024 2023 2023 2024 2023
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, FDIC special
assessment, net of tax, and net gain on sale or write-up of
securities, net of tax:
Diluted earnings per share (unadjusted) $ 1.34 $ 1.17 $ 1.18 $ 1.02 $ 1.20 $ 3.68 $ 3.50
Net income $ 127,282 $ 111,602 $ 110,426 $ 95,476 $ 112,208 $ 349,310 $ 323,840
Merger related provision for credit losses, net of tax(Z) - 7,162 - - - 7,162 14,647
Merger related expenses, net of tax(Z) 50 3,461 - 220 872 3,511 11,735
FDIC special assessment, net of tax(Z) - 2,807 - 15,736 - 2,807 -
Net gain on sale or write-up of securities, net of tax(Z) (177) (8,472) (235) - - (8,884) -
Net income excluding merger related provision for credit losses, net $ 127,155 $ 116,560 $ 110,191 $ 111,432 $ 113,080 $ 353,906 $ 350,222
of tax, merger related expenses, net of tax, FDIC special
assessment, net of tax, and net gain on sale or write-up of securities, net of tax(Z):
Weighted average diluted shares outstanding 95,261 95,765 93,706 93,715 93,720 94,912 92,628
Merger related provision for credit losses, net of tax, per diluted common share(Z) $ - $ 0.07 $ - $ - $ - $ 0.08 $ 0.16
Merger related expenses, net of tax, per diluted common share(Z) $ - $ 0.04 $ - $ - $ 0.01 $ 0.04 $ 0.13
FDIC special assessment, net of tax, per diluted common share(Z) $ - $ 0.03 $ - $ 0.17 $ - $ 0.03 $ -
Net gain on sale or write-up of securities, net of tax, per diluted common share(Z) $ - $ (0.09) $ - $ - $ - $ (0.09) $ -
Diluted earnings per share excluding merger related provision for $ 1.34 $ 1.22 $ 1.18 $ 1.19 $ 1.21 $ 3.74 $ 3.79
credit losses, net of tax, merger related expenses, net of tax, FDIC special assessment, net of tax, and net gain on sale or write-up of securities, net of tax:(Z)
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, FDIC special
assessment, net of tax, and net gain on sale or write-up of
securities, net of tax:
Return on average assets (unadjusted) 1.28 % 1.12 % 1.13 % 0.98 % 1.13 % 1.16 % 1.11 %
Net income excluding merger related provision for credit losses, net $ 127,155 $ 116,560 $ 110,191 $ 111,432 $ 113,080 $ 353,906 $ 350,222
of tax, merger related expenses, net of tax, FDIC special
assessment, net of tax, and net gain on sale or write-up of securities, net of tax(Z):
Average total assets $ 39,889,202 $ 39,948,848 $ 38,935,530 $ 38,815,211 $ 39,602,039 $ 40,034,895 $ 39,029,662
Return on average assets excluding merger related provision for 1.28 % 1.17 % 1.13 % 1.15 % 1.14 % 1.18 % 1.20 %
credit losses, net of tax, merger related expenses, net of tax, FDIC special assessment, net of tax, and net gain on sale or write-up of securities, net of tax(F) (Z)
(Z) Calculated assuming a federal tax rate of 21.0%.
Three Months Ended Year-to-Date
Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, Sep 30, Sep 30,
2024 2024 2024 2023 2023 2024 2023
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,
FDIC special assessment, net of tax, and net gain on sale or
write-up of securities, net of tax:
Return on average common equity (unadjusted) 6.93 % 6.10 % 6.20 % 5.39 % 6.39 % 6.40 % 6.25 %
Net income excluding merger related provision for credit losses, net $ 127,155 $ 116,560 $ 110,191 $ 111,432 $ 113,080 $ 353,906 $ 350,222
of tax, merger related expenses, net of tax, FDIC special
assessment, net of tax, and net gain on sale or write-up of
securities, net of tax(Z):
Average shareholders' equity $ 7,347,265 $ 7,321,257 $ 7,121,252 $ 7,085,839 $ 7,024,493 $ 7,274,009 $ 6,907,516
Return on average common equity excluding merger related 6.92 % 6.37 % 6.19 % 6.29 % 6.44 % 6.49 % 6.76 %
provision for credit losses, net of tax, merger related expenses, net
of tax, FDIC special assessment, net of tax, and net gain on sale or write-up of securities, net of tax(F) (Z)
Reconciliation of return on average common equity to return on
average tangible common equity:
Net income $ 127,282 $ 111,602 $ 110,426 $ 95,476 $ 112,208 $ 349,310 $ 323,840
Average shareholders' equity $ 7,347,265 $ 7,321,257 $ 7,121,252 $ 7,085,839 $ 7,024,493 $ 7,274,009 $ 6,907,516
Less: Average goodwill and other intangible assets (3,576,630) (3,542,427) (3,458,659) (3,462,210) (3,456,844) (3,526,501) (3,360,296)
Average tangible shareholders' equity $ 3,770,635 $ 3,778,830 $ 3,662,593 $ 3,623,629 $ 3,567,649 $ 3,747,508 $ 3,547,220
Return on average tangible common equity(F) 13.50 % 11.81 % 12.06 % 10.54 % 12.58 % 12.43 % 12.17 %
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 $ 127,155 $ 116,560 $ 110,191 $ 111,432 $ 113,080 $ 353,906 $ 350,222
of tax, merger related expenses, net of tax, FDIC special
assessment, net of tax, and net gain on sale or write-up of securities, net of tax(Z):
Average shareholders' equity $ 7,347,265 $ 7,321,257 $ 7,121,252 $ 7,085,839 $ 7,024,493 $ 7,274,009 $ 6,907,516
Less: Average goodwill and other intangible assets (3,576,630) (3,542,427) (3,458,659) (3,462,210) (3,456,844) (3,526,501) (3,360,296)
Average tangible shareholders' equity $ 3,770,635 $ 3,778,830 $ 3,662,593 $ 3,623,629 $ 3,567,649 $ 3,747,508 $ 3,547,220
Return on average tangible common equity excluding merger 13.49 % 12.34 % 12.03 % 12.30 % 12.68 % 12.59 % 13.16 %
related provision for credit losses, net of tax, merger related
expenses, net of tax, FDIC special assessment, net of tax, and net gain on sale or write-up of securities, net of tax(F) (Z)
Reconciliation of book value per share to tangible book value
per share:
Shareholders' equity $ 7,361,249 $ 7,283,444 $ 7,104,544 $ 7,079,330 $ 7,032,677 $ 7,361,249 $ 7,032,677
Less: Goodwill and other intangible assets (3,574,566) (3,578,431) (3,457,159) (3,460,080) (3,464,012) (3,574,566) (3,464,012)
Tangible shareholders' equity $ 3,786,683 $ 3,705,013 $ 3,647,385 $ 3,619,250 $ 3,568,665 $ 3,786,683 $ 3,568,665
Period end shares outstanding 95,261 95,262 93,525 93,722 93,717 95,261 93,717
Tangible book value per share $ 39.75 $ 38.89 $ 39.00 $ 38.62 $ 38.08 $ 39.75 $ 38.08
Reconciliation of equity to assets ratio to period end tangible equity to period end tangible assets ratio:
Tangible shareholders' equity $ 3,786,683 $ 3,705,013 $ 3,647,385 $ 3,619,250 $ 3,568,665 $ 3,786,683 $ 3,568,665
Total assets $ 40,115,320 $ 39,762,294 $ 38,756,520 $ 38,547,877 $ 39,295,684 $ 40,115,320 $ 39,295,684
Less: Goodwill and other intangible assets (3,574,566) (3,578,431) (3,457,159) (3,460,080) (3,464,012) (3,574,566) (3,464,012)
Tangible assets $ 36,540,754 $ 36,183,863 $ 35,299,361 $ 35,087,797 $ 35,831,672 $ 36,540,754 $ 35,831,672
Period end tangible equity to period end tangible assets ratio 10.36 % 10.24 % 10.33 % 10.31 % 9.96 % 10.36 % 9.96 %
Three Months Ended Year-to-Date
Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, Sep 30, Sep 30,
2024 2024 2024 2023 2023 2024 2023
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 $ 354,397 $ 359,852 $ 330,219 $ 332,362 $ 351,495 $ 354,397 $ 351,495
Total loans $ 22,380,852 $ 22,320,815 $ 21,265,247 $ 21,180,538 $ 21,432,713 $ 22,380,852 $ 21,432,713
Less: Warehouse Purchase Program loans (1,228,706) (1,081,403) (864,924) (822,245) (912,327) (1,228,706) (912,327)
Total loans less Warehouse Purchase Program $ 21,152,146 $ 21,239,412 $ 20,400,323 $ 20,358,293 $ 20,520,386 $ 21,152,146 $ 20,520,386
Allowance for credit losses on loans to total loans excluding Warehouse Purchase Program 1.68 % 1.69 % 1.62 % 1.63 % 1.71 % 1.68 % 1.71 %
Reconciliation of efficiency ratio to efficiency ratio excluding
net gains and losses on the sale, write-down or write-up of
assetsand securities:
Noninterest expense $ 140,338 $ 152,842 $ 135,848 $ 152,171 $ 135,657 $ 429,028 $ 404,527
Net interest income $ 261,691 $ 258,786 $ 238,244 $ 236,983 $ 239,524 $ 758,721 $ 719,450
Noninterest income 41,099 46,003 38,870 36,568 38,743 125,972 116,697
Less: net (loss) gain on sale or write-down of assets 3,178 (903) (35) (84) (45) 2,240 2,070
Less: net gain on sale or write-up of securities 224 10,723 298 - - 11,245 -
Noninterest income excluding net gains and losses on the sale, 37,697 36,183 38,607 36,652 38,788 112,487 114,627
write-down or write-up of assets and securities
Total income excluding net gains and losses on the sale, write- $ 299,388 $ 294,969 $ 276,851 $ 273,635 $ 278,312 $ 871,208 $ 834,077
down or write-up of assets and securities
Efficiency ratio, excluding net gains and losses on the sale, write- 46.87 % 51.82 % 49.07 % 55.61 % 48.74 % 49.25 % 48.50 %
down or write-up of assets and securities
Reconciliation of efficiency ratio to efficiency ratio, excluding
net gains and losses on the sale, write-down or write-up of assets
and securities, merger related expenses and FDIC special
assessment:
Noninterest expense $ 140,338 $ 152,842 $ 135,848 $ 152,171 $ 135,657 $ 429,028 $ 404,527
Less: merger related expenses 63 4,381 - 278 1,104 4,444 14,855
Less: FDIC special assessment - 3,554 - 19,919 - 3,554 -
Noninterest expense excluding merger related expenses and FDIC special assessment $ 140,275 $ 144,907 $ 135,848 $ 131,974 $ 134,553 $ 421,030 $ 389,672
Net interest income $ 261,691 $ 258,786 $ 238,244 $ 236,983 $ 239,524 $ 758,721 $ 719,450
Noninterest income 41,099 46,003 38,870 36,568 38,743 125,972 116,697
Less: net (loss) gain on sale or write down of assets 3,178 (903) (35) (84) (45) 2,240 2,070
Less: net gain on sale or write-up of securities 224 10,723 298 - - 11,245 -
Noninterest income excluding net gains and losses on the sale, 37,697 36,183 38,607 36,652 38,788 112,487 114,627
write-down or write-up of assets and securities
Total income excluding net gains and losses on the sale, write- $ 299,388 $ 294,969 $ 276,851 $ 273,635 $ 278,312 $ 871,208 $ 834,077
down or write-up of assets and securities
Efficiency ratio, excluding net gains and losses on the sale, write- 46.85 % 49.13 % 49.07 % 48.23 % 48.35 % 48.33 % 46.72 %
down or write-up of assets and securities, merger related expenses and FDIC special assessment
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