PROSPERITY BANCSHARES, INC.® REPORTS SECOND QUARTER 2022 EARNINGS – QNT Press Release


  • Second quarter net income of $128.5 million and earnings per share (diluted) of $1.40
  • Second quarter net income increased $6.2 million or 5.0% compared to the first quarter 2022
  • Loans, excluding Warehouse Purchase Program and SBA Paycheck Protection Program loans, increased $406.9 million or 2.4% (9.8% annualized) during the second quarter 2022
  • Allowance for credit losses on loans and on off-balance sheet credit exposure of $313.9 million
  • Allowance for credit losses on loans to total loans, excluding Warehouse Purchase Program and SBA Paycheck Protection Program loans, of 1.67%(1)
  • Nonperforming assets remain low at 0.07% of second quarter average interest-earning assets
  • Return (annualized) on second quarter average assets of 1.36%
  • Returns (annualized) on second quarter average common equity of 7.84% and average tangible common equity of 15.73%(1)
  • Repurchased 981,884 shares during the second quarter 2022

HOUSTON, July 27, 2022 /PRNewswire/ — Prosperity Bancshares, Inc.® (NYSE:PB), the parent company of Prosperity Bank® (collectively, "Prosperity"), reported net income of  $128.5 million for the quarter ended June 30, 2022 compared with $130.6 million for the same period in 2021. Net income per diluted common share was $1.40 for the quarter ended June 30, 2022 compared with $1.41 for the same period in 2021, and the annualized return on second quarter average assets was 1.36%. Additionally, loans, excluding Warehouse Purchase Program and SBA Paycheck Protection Program ("PPP") loans, increased $406.9 million or 2.4% (9.8% annualized) during the second quarter of 2022. Nonperforming assets remain low at 0.07% of second quarter average interest-earning assets.

"We experienced a strong second quarter of 2022. Earnings increased 5.0% compared with the first quarter of 2022 and we expect continued earnings growth as interest rates increase. Further, our core loans, excluding Warehouse Purchase Program and SBA Paycheck Protection Program loans, grew $406.9 million or 2.4% (9.8% annualized) during the quarter, while our non-performing loans remained very low," said David Zalman, Prosperity's Senior Chairman and Chief Executive Officer.

"Texas and Oklahoma continue to shine as more people and companies move to these states. For example, according to CNBC, Texas added more jobs over the last year than the 25 lowest job growth states combined. Further, during the last year, the Dallas-Fort Worth area added 295,000 jobs, three times its average annual growth, and the Houston area added 185,000 jobs. Unemployment remains unusually low," continued Zalman.

"We are optimistic about our company, with increased earnings, strong asset quality and over 250 locations in one of the best economies in the nation.  This is evidenced by our repurchase of 981,884 shares of our stock during the second quarter of 2022," added Zalman. 

"Thank you to all the customers, associates and directors for helping build a successful company," concluded Zalman.

Results of Operations for the Three Months Ended June 30, 2022

Net income was $128.5 million(2) for the three months ended June 30, 2022 compared with $130.6 million(3) for the same period in 2021. The change was primarily due to a decrease in loan interest income (including a decrease in PPP fees and interest income of $10.4 million) and loan discount accretion of $12.1 million, partially offset by an increase in securities interest income and a decrease in interest expense. Net income per diluted common share was $1.40 for the three months ended June 30, 2022 compared with $1.41 for the same period in 2021. On a linked quarter basis, net income was $128.5 million(2) for the three months ended June 30, 2022 compared with $122.3 million(4) for the three months ended March 31, 2022, an increase of $6.2 million or 5.0%. The change was primarily due to an increase in securities interest income, partially offset by a decrease in loan discount accretion of $5.1 million. Net income per diluted common share was $1.40 for the three months ended June 30, 2022 compared with $1.33 for the three months ended March 31, 2022. Annualized returns on average assets, average common equity and average tangible common equity for the three months ended June 30, 2022 were 1.36%, 7.84% and 15.73%(1), respectively. Prosperity's efficiency ratio (excluding net gains and losses on the sale or write down of assets and securities) was 43.12%(1) for the three months ended June 30, 2022.

Net interest income before provision for credit losses for the three months ended June 30, 2022 was $248.5 million compared with $245.4 million for the same period in 2021, an increase of $3.1 million or 1.3%. On a linked quarter basis, net interest income before provision for credit losses was $248.5 million compared with $239.9 million for the three months ended March 31, 2022, an increase of $8.5 million or 3.6%. The change was primarily due to an increase in the average balances and average rates on investment securities.

The net interest margin on a tax equivalent basis was 2.97% for the three months ended June 30, 2022 compared with 3.11% for the same period in 2021. The change was primarily due to a decrease in loan discount accretion of $12.1 million and a decrease in PPP fees and interest income of $10.4 million, partially offset by an increase in the average balances and average rates on investment securities and a decrease in the average rate on interest-bearing liabilities. On a linked quarter basis, the net interest margin on a tax equivalent basis was 2.97% for the three months ended June 30, 2022 compared with 2.88% for the three months ended March 31, 2022. The change was primarily due to higher average balances and average rates on investment securities and lower cash balances due to a reduction in liquidity, partially offset by a decrease in loan discount accretion of $5.1 million.

Noninterest income was $37.6 million for the three months ended June 30, 2022 compared with $35.6 million for the same period in 2021, an increase of $2.0 million or 5.7%. This change was primarily due to an increase in nonsufficient funds fees ("NSF") income, a net gain on the sale or write-down of assets and an increase in trust income, partially offset by a decrease in mortgage income. On a linked quarter basis, noninterest income was $37.6 million compared with $35.1 million for the three months ended March 31, 2022, an increase of $2.5 million or 7.0%. This change was primarily due to increases in credit card, debit card and ATM card income, a net gain on the sale or write-down of assets and other noninterest income.

Noninterest expense was $122.9 million for the three months ended June 30, 2022 compared with $115.2 million for the same period in 2021, an increase of $7.7 million or 6.7%, primarily due to an increase in salaries and benefits and the change in net loss (gain) on sale or write-down of other real estate.  On a linked quarter basis, noninterest expense increased $3.0 million or 2.5% to $122.9 million compared with $119.9 million for the three months ended March 31, 2022. The increase was primarily due to an increase in salaries and benefits, the change in net loss (gain) on sale or write-down of other real estate and an increase in other noninterest expense.

Results of Operations for the Six Months Ended June 30, 2022

Net income was $250.8 million(5) for the six months ended June 30, 2022 compared with $263.9 million(6) for the same period in 2021. Net income per diluted common share was $2.73 for the six months ended June 30, 2022 compared with $2.84 for the same period in 2021. Annualized returns on average assets, average common equity and average tangible common equity for the six months ended June 30, 2022 were 1.32%, 7.69% and 15.52%(1), respectively. Prosperity's efficiency ratio (excluding net gains and losses on the sale or write down of assets and taxes) was 43.40%(1) for the six months ended June 30, 2022.

Net interest income before provision for credit losses for the six months ended June 30, 2022 was $488.4 million compared with $500.0 million for the prior year. The change was primarily due to a decrease in the average balances and average rates on loans, a decrease in loan discount accretion of $23.3 million and a decrease in PPP fees and interest income of $22.2 million, partially offset by an increase in the average balance on investment securities and a decrease in the average rate on interest-bearing liabilities.

The net interest margin on a tax equivalent basis for the six months ended June 30, 2022 was 2.92% compared with 3.26% for the same period in 2021. The change was primarily due to a decrease in loan discount accretion of $23.3 million, a decrease in PPP fees and interest income of $22.2 million and an increase in the average balance on investment securities, partially offset by a decrease in the average rate on interest-bearing liabilities.

Noninterest income was $72.7 million for the six months ended June 30, 2022 compared with $69.6 million for the same period in 2021, an increase of $3.2 million or 4.5%. This change was primarily due to an increase in NSF income, a net gain on the sale or write-down of assets and an increase in other noninterest income, partially offset by a decrease in mortgage income.

Noninterest expense was $242.7 million for the six months ended June 30, 2022 compared with $234.3 million for the same period in 2021, an increase of $8.5 million or 3.6%. The increase was primarily due to an increase in salaries and benefits, the change in net loss (gain) on sale or write-down of other real estate, an increase in credit and debit card and data processing expense and an increase in other noninterest expense.

Balance Sheet Information

At June 30, 2022, Prosperity had $37.387 billion in total assets, an increase of $1.287 billion or 3.6%, compared with $36.100 billion at June 30, 2021.

Loans at June 30, 2022 were $18.209 billion, a decrease of $1.043 billion or 5.4%, compared with $19.252 billion at June 30, 2021, primarily due to decreases in Warehouse Purchase Program, PPP and commercial real estate loans, partially offset by increases in 1-4 family residential and construction, land development and other land loans. Linked quarter loans increased $141.3 million or 0.8% (3.1% annualized) from $18.068 billion at March 31, 2022. Excluding Warehouse Purchase Program and PPP loans, loans at June 30, 2022 were $17.044 billion compared to $16.376 billion at June 30, 2021, an increase of $667.4 million or 4.1%. Linked quarter loans, excluding Warehouse Purchase Program and PPP loans, increased $406.9 million or 2.4% (9.8% annualized) from $16.637 billion at March 31, 2022.

As part of its lending activities, Prosperity extends credit to oil and gas production and servicing companies. Oil and gas production loans are loans to companies directly involved in the exploration and/or production of oil and gas. Oil and gas servicing loans are loans to companies that provide services for oil and gas production and exploration. At June 30, 2022, oil and gas loans totaled $430.3 million (net of discount and excluding PPP loans totaling $8.2 million) or 2.4% of total loans, of which $214.0 million were production loans and $216.3 million were servicing loans, compared with total oil and gas loans of $501.8 million (net of discount and excluding PPP loans totaling $92.3 million) or 2.6% of total loans at June 30, 2021, of which $283.1 million were production loans and $218.7 million were servicing loans. In addition, as of June 30, 2022, Prosperity had total unfunded commitments to oil and gas companies of $466.7 million compared with total unfunded commitments to oil and gas companies of $298.4 million as of June 30, 2021. Unfunded commitments to producers include letters of credit issued in lieu of oil well plugging bonds.

Deposits at June 30, 2022 were $29.866 billion, an increase of $755.4 million or 2.6%, compared with $29.110 billion at June 30, 2021. Linked quarter deposits decreased $1.203 billion or 3.9% from $31.068 billion at March 31, 2022, primarily due to a decrease in public fund deposits. Prosperity generally experiences seasonality with its public fund deposits, as public fund customers use the tax dollars they receive in December and January throughout the year, resulting in lower deposit balances in the second and third quarters of the year. On a linked quarter basis, noninterest-bearing deposits increased by $255.5 million.

Asset Quality

Nonperforming assets totaled $22.2 million or 0.07% of quarterly average interest-earning assets at June 30, 2022 compared with $33.7 million or 0.11% of quarterly average interest-earning assets at June 30, 2021 and $27.2 million or 0.08% of quarterly average interest-earning assets at March 31, 2022.

The allowance for credit losses on loans and off-balance sheet credit exposures was $313.9 million at June 30, 2022 compared with $332.8 million at June 30, 2021 and $315.1 million at March 31, 2022.

The allowance for credit losses on loans was $284.0 million or 1.56% of total loans at June 30, 2022 compared with $302.9 million or 1.57% of total loans at June 30, 2021 and $285.2 million or 1.58% of total loans at March 31, 2022. Excluding Warehouse Purchase Program and PPP loans, the allowance for credit losses on loans to total loans was 1.67%(1) at June 30, 2022 compared with 1.85%(1) at June 30, 2021 and 1.71%(1) at March 31, 2022.

There was no provision for credit losses for the three months ended June 30, 2022 and 2021 or the six months ended June 30, 2022 and 2021.

Net charge-offs were $1.2 million for the three months ended June 30, 2022 compared with net charge-offs of $4.3 million for the three months ended June 30, 2021 and net charge-offs of $1.2 million for the three months ended March 31, 2022. During the second quarter of 2022, net charge-offs did not include any purchased credit deteriorated ("PCD") loans and $1.4 million of specific reserves on resolved PCD loans was released to the general reserve.

Net charge-offs were $2.4 million for the six months ended June 30, 2022 compared with $13.2 million for the six months ended June 30, 2021. Net charge-offs for the six months ended June 30, 2022 did not include any PCD loans and $2.0 million of specific reserves on resolved PCD loans was released to the general reserve during the period.

Dividend

Prosperity Bancshares declared a third quarter cash dividend of $0.52 per share to be paid on October 3, 2022, to all shareholders of record as of September 15, 2022.

Stock Repurchase Program

On January 18, 2022, Prosperity Bancshares announced a stock repurchase program under which up to 5%, or approximately

4.61 million shares, of its outstanding common stock may be acquired over a one-year period expiring on January 18, 2023, at the discretion of management. Prosperity Bancshares repurchased 981,884 shares of its common stock at an average weighted price of $66.90 per share during the three and six months ended June 30, 2022.

COVID-19 Pandemic

The Company continues to monitor the latest developments regarding a novel strain of coronavirus disease ("COVID-19"). Although the restrictions previously imposed on businesses and activities by the states of Texas and Oklahoma remained lifted as of June 30, 2022, it is possible that some restrictions could be re-introduced if the number of cases were to increase due to the emergence of a new variant of COVID-19 or otherwise. The COVID-19 pandemic has resulted in significant economic uncertainties that have had, and could continue to have, an adverse impact on the Company's operating income, financial condition and cash flows. The extent to which the COVID-19 pandemic will impact the Company's operations and financial results during 2022 cannot be reasonably or reliably estimated at this time.

Since the implementation of the Paycheck Protection Program ("PPP") in 2020, the Company has obtained Small Business Administration approvals on approximately 18,700 loans totaling $2.036 billion and, as of June 30, 2022, had an outstanding balance of 237 loans totaling $27.6 million.

In response to the COVID-19 pandemic, the Company provided relief to its loan customers through loan extensions and deferrals beginning in March 2020 to selected borrowers on a case-by-case basis. The Company's troubled debt restructurings do not include loan modifications related to COVID-19. As of June 30, 2022, the Company had no outstanding loans subject to deferral and modification agreements.

Conference Call

Prosperity's management team will host a conference call on Wednesday, July 27, 2022, at 11:30 a.m. Eastern Time (10:30 a.m. Central Time) to discuss Prosperity's second quarter 2022 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 0594487.

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 home page by selecting "Presentations, Webcasts & Calls" from the menu on the Investor Relations link and following the instructions.

Non-GAAP Financial Measures

Prosperity's management uses certain non-GAAP financial measures to evaluate its performance. Specifically, Prosperity reviews return on average tangible common equity; tangible book value per share; the tangible equity to tangible assets ratio; allowance for credit losses on loans to total loans excluding Warehouse Purchase Program and PPP loans; and the efficiency ratio excluding net gains and losses on the sale or write down of assets and securities, for internal planning and forecasting purposes. 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 June 30, 2022, Prosperity Bancshares, Inc.® is a $37.387 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 272 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; 29 in the Central Texas area including Austin and San Antonio; 34 in the West Texas area including Lubbock, MidlandOdessa and Abilene; 16 in the Bryan/College Station area; 6 in the Central Oklahoma area; and 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. Forward-looking statements are typically, but not exclusively, identified by the use in the statements of words or phrases such as "aim," "anticipate," "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, 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 the proposed transaction, and statements about the assumptions underlying any such statement, as well as expectations regarding the effects of the COVID-19 pandemic on Prosperity's operating income, financial condition and cash flows. These forward–looking statements are not guarantees of future performance and are subject to risks and uncertainties, many of which are outside of Prosperity's control, which may cause actual results to differ materially from those expressed or implied by the forward-looking statements. These risks and uncertainties include but are not limited to whether Prosperity can: successfully identify acquisition targets and integrate the businesses of acquired companies and banks; continue to sustain its current internal growth rate or total growth rate; provide products and services that appeal to its customers; continue to have access to debt and equity capital markets; and achieve its sales objectives. Other risks include, but are not limited to: the possibility that credit quality could deteriorate; actions of competitors; changes in laws and regulations (including changes in governmental interpretations of regulations and changes in accounting standards); 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; the effect, impact, potential duration or other implications of the COVID-19 pandemic; and weather. These and various other factors are discussed in Prosperity Bancshares' Annual Report on Form 10-K for the year ended December 31, 2021, and other reports and statements Prosperity Bancshares has filed with the Securities and Exchange Commission ("SEC"). Copies of the SEC filings for Prosperity Bancshares 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 $103 thousand, net of tax, primarily comprised of loan discount accretion of $59 thousand for the three months ended June 30, 2022.

(3)

Includes purchase accounting adjustments of $9.8 million, net of tax, primarily comprised of loan discount accretion of $12.2 million for the three months ended June 30, 2021.

(4)

Includes purchase accounting adjustments of $4.1 million, net of tax, primarily comprised of loan discount accretion of $5.2 million for the three months ended March 31, 2022.

(5)

Includes purchase accounting adjustments of $4.2 million, net of tax, primarily comprised of loan discount accretion of $5.3 million for the six months ended June 30, 2022.

(6)

Includes purchase accounting adjustments of $23.0 million, net of tax, primarily comprised of loan discount accretion of $28.5 million for the six months ended June 30, 2021.

 

 

Bryan/College Station Area

Garland

Palestine

Magnolia

Texas Tech Student Union

Bryan

Grapevine

Rusk

Magnolia Parkway

Bryan-29th Street

Grapevine Main

Seven Points

Mont Belvieu

Midland

Bryan-East

Kiest

Teague

Nederland

Wadley

Bryan-North

Lake Highlands

Tyler-Beckham

Needville

Wall Street

Caldwell

McKinney

Tyler-South Broadway

Rosenberg

College Station

McKinney Eldorado

Tyler-University

Shadow Creek

Odessa

Crescent Point

McKinney Redbud

Winnsboro

Spring

Grandview

Hearne

North Carrolton

Tomball

Grant

Huntsville

Park Cities

Houston Area

Waller

Kermit Highway

Madisonville

Plano

Houston

West Columbia

Parkway

Navasota

Plano-West

Aldine

Wharton

New Waverly

Preston Forest

Alief

Winnie

Other West Texas Area

Rock Prairie

Preston Parker

Bellaire

Wirt

Locations

Southwest Parkway

Preston Royal

Beltway

Big Spring

Tower Point

Red Oak

Clear Lake

South Texas Area –

Brownfield

Wellborn Road

Richardson

Copperfield

Corpus Christi

Brownwood

Richardson-West

Cypress

Calallen

Cisco

Central Texas Area

Rosewood Court

Downtown

Carmel

Comanche

Austin

The Colony

Eastex

Northwest

Early

Allandale

Tollroad

Fairfield

Saratoga

Floydada

Cedar Park

Trinity Mills

First Colony

Timbergate

Gorman

Congress

Turtle Creek

Fry Road

Water Street

Levelland

Lakeway

West 15th Plano

Gessner

Littlefield

Liberty Hill

West Allen

Gladebrook

Victoria

Merkel

Northland

Westmoreland

Grand Parkway

Victoria Main

Plainview

Oak Hill

Wylie

Heights

Victoria-Navarro

San Angelo

Research Blvd

Highway 6 West

Victoria-North

Slaton

Westlake

Fort Worth

Little York

Victoria Salem

Snyder

Haltom City

Medical Center

Other Central Texas Area

Hulen

Memorial Drive

Other South Texas Area

Oklahoma

Locations

Keller

Northside

 Locations

Central Oklahoma Area

Bastrop

Museum Place

Pasadena

Alice

Oklahoma City

Canyon Lake

Renaissance Square

Pecan Grove

Aransas Pass

23rd Street

Dime Box

Roanoke

Pin Oak

Beeville

Expressway

Dripping Springs

Stockyards

River Oaks

Colony Creek

I-240

Elgin

Sugar Land

Cuero

Memorial

Flatonia

Other Dallas/Fort Worth Area

SW Medical Center

Edna

Georgetown

Locations

Tanglewood

Goliad

Other Central Oklahoma Area

Gruene

Arlington

The Plaza

Gonzales

 Locations

Kingsland

Azle

Uptown

Hallettsville

Edmond

La Grange

Ennis

Waugh Drive

Kingsville

Norman

Lexington

Gainesville

Westheimer

Mathis

New Braunfels

Glen Rose

West University

Padre Island

Tulsa Area

Pleasanton

Granbury

Woodcreek

Palacios

Tulsa

Round Rock

Grand Prairie

Port Lavaca

Garnett

San Antonio

Jacksboro

Katy

Portland

Harvard

Schulenburg

Mesquite

Cinco Ranch

Rockport

Memorial

Seguin

Muenster

Katy-Spring Green

Sinton

Sheridan

Smithville

Runaway Bay

Taft

S. Harvard

Thorndale

Sanger

The Woodlands

Yoakum

Utica Tower

Weimar

Waxahachie

The Woodlands-College Park

Yorktown

Yale

Weatherford

The Woodlands-I-45

Dallas/Fort Worth Area

The Woodlands-Research Forest

West Texas Area

Other Tulsa Area Locations

Dallas

East Texas Area

Abilene

Owasso

14th Street Plano

Athens

Other Houston Area

Antilley Road

Abrams Centre

Blooming Grove

Locations

Barrow Street

Addison

Canton

Angleton

Cypress Street

Allen

Carthage

Bay City

Judge Ely

Balch Springs

Corsicana

Beaumont

Mockingbird

Camp Wisdom

Crockett

Cleveland

Carrollton

Eustace

East Bernard

Lubbock

Cedar Hill

Gilmer

El Campo

4th Street

Coppell

Grapeland

Dayton

66th Street

East Plano

Gun Barrel City

Galveston

82nd Street

Euless

Jacksonville

Groves

86th Street

Frisco

Kerens

Hempstead

98th Street

Frisco Warren

Longview

Hitchcock

Avenue Q

Frisco-West

Mount Vernon

Liberty

North University

 

Prosperity Bancshares, Inc.®

Financial Highlights (Unaudited)

(In thousands)

Jun 30, 2022

Mar 31, 2022

Dec 31, 2021

Sep 30, 2021

Jun 30, 2021

Balance Sheet Data (at period end)

Loans held for sale

$

3,350

$

2,810

$

7,274

$

10,197

$

9,080

Loans held for investment

17,067,871

16,720,173

16,833,171

16,949,486

17,147,146

Loans held for investment – Warehouse Purchase
      Program

1,137,623

1,344,541

1,775,699

1,998,049

2,095,559

Total loans

18,208,844

18,067,524

18,616,144

18,957,732

19,251,785

Investment securities(A)

14,912,313

14,798,127

12,818,901

12,629,368

11,918,691

Federal funds sold

201

274

241

237

281

Allowance for credit losses on loans

(283,959)

(285,163)

(286,380)

(287,187)

(302,884)

Cash and due from banks

393,716

1,560,321

2,547,739

1,055,386

1,059,879

Goodwill

3,231,636

3,231,636

3,231,636

3,231,636

3,231,636

Core deposit intangibles, net

56,483

59,064

61,684

64,539

67,417

Other real estate owned

1,555

1,705

622

150

144

Fixed assets, net

335,939

336,075

319,799

322,799

324,502

Other assets

530,528

501,623

523,584

537,459

548,473

Total assets

$

37,387,256

$

38,271,186

$

37,833,970

$

36,512,119

$

36,099,924

Noninterest-bearing deposits

$

11,032,184

$

10,776,652

$

10,750,034

$

10,326,489

$

10,099,149

Interest-bearing deposits

18,833,434

20,291,658

20,021,728

19,125,163

19,011,092

Total deposits

29,865,618

31,068,310

30,771,762

29,451,652

29,110,241

Other borrowings

300,000

Securities sold under repurchase agreements

481,785

440,891

448,099

440,969

433,069

Allowance for credit losses on off-balance sheet
      credit exposures

29,947

29,947

29,947

29,947

29,947

Other liabilities

188,079

227,614

156,926

244,110

216,330

Total liabilities

30,865,429

31,766,762

31,406,734

30,166,678

29,789,587

Shareholders' equity(B)

6,521,827

6,504,424

6,427,236

6,345,441

6,310,337

Total liabilities and equity

$

37,387,256

$

38,271,186

$

37,833,970

$

36,512,119

$

36,099,924

(A)

Includes $1,517, $2,115, $2,290, $2,483 and $1,394 in unrealized gains on available for sale securities for the quarterly periods ended June 30, 2022, March 31, 2022, December 31, 2021, September 30, 2021 and June 30, 2021, respectively.

(B)

Includes $1,198 $1,671, $1,809, $1,961 and $1,101 in after-tax unrealized gains on available for sale securities for the quarterly periods ended June 30, 2022, March 31, 2022, December 31, 2021, September 30, 2021 and June 30, 2021, respectively.

 

Prosperity Bancshares, Inc.®

Financial Highlights (Unaudited)

(In thousands)

Three Months Ended

Year-to-Date

Jun 30, 2022

Mar 31, 2022

Dec 31, 2021

Sep 30, 2021

Jun 30, 2021

Jun 30, 2022

Jun 30, 2021

Income Statement Data

Interest income:

Loans

$

192,770

$

193,025

$

206,209

$

213,821

$

216,803

$

385,795

$

449,878

Securities(C)

64,111

55,011

46,857

46,217

43,708

119,122

82,385

Federal funds sold and other earning assets

925

847

563

302

340

1,772

691

Total interest income

257,806

248,883

253,629

260,340

260,851

506,689

532,954

Interest expense:

Deposits

8,641

8,754

8,685

11,578

15,288

17,395

32,650

Other borrowings

450

450

Securities sold under repurchase agreements

244

185

184

195

164

429

323

Total interest expense

9,335

8,939

8,869

11,773

15,452

18,274

32,973

Net interest income

248,471

239,944

244,760

248,567

245,399

488,415

499,981

Provision for credit losses

Net interest income after provision for credit losses

248,471

239,944

244,760

248,567

245,399

488,415

499,981

Noninterest income:

Nonsufficient funds (NSF) fees

8,484

8,124

8,401

7,962

6,560

16,608

13,247

Credit card, debit card and ATM card income

8,880

8,179

8,894

8,837

8,918

17,059

16,949

Service charges on deposit accounts

6,365

6,211

6,237

6,115

6,062

12,576

12,040

Trust income

2,875

2,703

2,698

2,467

2,276

5,578

5,113

Mortgage income

502

455

685

1,396

2,914

957

6,221

Brokerage income

917

892

953

861

795

1,809

1,506

Bank owned life insurance income

1,293

1,283

1,317

1,325

1,294

2,576

2,586

Net gain (loss) on sale or write-down of assets

1,108

689

1,165

255

(244)

1,797

(323)

Other noninterest income

7,170

6,586

5,407

5,427

6,981

13,756

12,225

Total noninterest income

37,594

35,122

35,757

34,645

35,556

72,716

69,564

Noninterest expense:

Salaries and benefits

80,371

79,411

76,496

78,412

75,611

159,782

155,648

Net occupancy and equipment

8,039

7,848

8,140

8,165

8,046

15,887

15,879

Credit and debit card, data processing and
      software amortization

9,246

8,849

9,050

9,103

8,718

18,095

16,951

Regulatory assessments and FDIC insurance

2,851

2,850

2,801

2,497

2,670

5,701

5,340

Core deposit intangibles amortization

2,581

2,620

2,855

2,878

2,887

5,201

5,818

Depreciation

4,539

4,547

4,518

4,524

4,513

9,086

9,053

Communications

3,206

2,919

3,134

3,013

2,982

6,125

5,881

Other real estate expense

195

214

24

30

198

409

442

Net loss (gain) on sale or write-down of other real estate

14

(621)

2

4

(1,839)

(607)

(2,726)

Other noninterest expense

11,836

11,213

12,518

11,189

11,405

23,049

21,981

Total noninterest expense

122,878

119,850

119,538

119,815

115,191

242,728

234,267

Income before income taxes

163,187

155,216

160,979

163,397

165,764

318,403

335,278

Provision for income taxes

34,697

32,890

34,192

34,807

35,153

67,587

71,358

Net income available to common shareholders

$

128,490

$

122,326

$

126,787

$

128,590

$

130,611

$

250,816

$

263,920

(C)

Interest income on securities was reduced by net premium amortization of $11,450, $12,857, $16,006, $15,141 and $14,436 for the three months ended June 30, 2022, March 31, 2022, December 31, 2021, September 30, 2021 and June 30, 2021, respectively, and $24,307 and $27,280 for the six months ended June 30, 2022 and June 30, 2021, respectively.

 

<td xmlns="http://www.w3.org/1999/xhtml" class="prngen9" …

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

Jun 30, 2022

Mar 31, 2022

Dec 31, 2021

Sep 30, 2021

Jun 30, 2021

Jun 30, 2022

Jun 30, 2021

Profitability

Net income (D) (E)

$

128,490

$

122,326

$

126,787

$

128,590

$

130,611

$

250,816

$

263,920

Basic earnings per share

$

1.40

$

1.33

$

1.38

$

1.39

$

1.41

$

2.73

$

2.84

Diluted earnings per share

$

1.40

$

1.33

$

1.38

$

1.39

$

1.41

$

2.73

$

2.84

Return on average assets (F)

1.36

%

1.29

%

1.37

%

1.42

%

1.45

%

1.32

%

1.49

%

Return on average common equity (F)

7.84

%

7.54

%

7.91

%

8.07

%

8.31

%

7.69

%

8.46

%

Return on average tangible common equity   (F) (G)

15.73

%

15.30

%

16.26

%

16.72

%

17.49

%

15.52

%

17.95

%

Tax equivalent net interest margin (D) (E) (H)

2.97

%

2.88

%

2.97

%

3.10

%

3.11

%

2.92

%

3.26

%

Efficiency ratio (G) (I)

43.12

%

43.68

%

42.79

%

42.34

%

40.96

%

43.40

%

41.11

%

Full story available on Benzinga.com



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