PROSPERITY BANCSHARES, INC.® REPORTS FOURTH QUARTER 2025 EARNINGS
Rhea-AI Summary
Prosperity Bancshares (NYSE: PB) reported Q4 2025 net income $139.9M and FY2025 net income $542.8M (+13.2% YoY), with diluted EPS $1.49 Q4 and $5.72 FY (+13.3% YoY).
Key operating metrics: net interest margin 3.30% (+25 bps YoY), deposits up $700.4M in Q4 (10.1% annualized), completed the American Bank merger (Jan 1, 2026) and agreed to acquire Stellar Bancorp (~$2.00B consideration).
Positive
- Net income +13.2% YoY to $542.8M for FY2025
- EPS +13.3% YoY to $5.72 for FY2025
- Deposits increased by $700.4M in Q4 2025 (10.1% annualized)
- Net interest margin improved 25 bps to 3.30% in Q4 2025
- Signed Stellar Bancorp merger valued at approximately $2.002B
- Completed American Bank acquisition (effective Jan 1, 2026) and approved 2026 repurchase up to 5% outstanding
Negative
- Nonperforming assets rose to 0.46% of Q4 average interest-earning assets (from 0.23% YoY)
- Net charge-offs increased to $18.1M for FY2025 (from $14.6M in 2024)
News Market Reaction – PB
On the day this news was published, PB declined 7.94%, reflecting a notable negative market reaction. Argus tracked a trough of -5.9% from its starting point during tracking. Our momentum scanner triggered 21 alerts that day, indicating elevated trading interest and price volatility. This price movement removed approximately $597M from the company's valuation, bringing the market cap to $6.92B at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
PB gained 1.29% with strong volume, while key regional peers showed mixed, mostly modest moves (e.g., CADE +0.61%, BOKF -0.92%). The reaction appears stock-specific to PB’s earnings and acquisition news rather than a broad sector rotation.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Oct 29 | Q3 2025 earnings | Positive | +2.9% | Stronger Q3 earnings, higher NIM, deposit growth, and M&A announcements. |
| Jul 23 | Q2 2025 earnings | Positive | -4.6% | Robust Q2 profit and EPS growth plus American Bank merger agreement. |
| Apr 23 | Q1 2025 earnings | Positive | +0.2% | Double‑digit EPS growth, higher NIM, and solid asset quality metrics. |
| Jan 29 | Q4 2024 earnings | Positive | -0.7% | Strong Q4 2024 earnings, higher NIM, and new repurchase program. |
| Oct 23 | Q3 2024 earnings | Positive | +1.0% | Improved earnings, higher margin, deposit and loan growth, dividend hike. |
Earnings releases have generally been positive, but price reactions have been mixed, with both rallies and selloffs following strong reports.
Across prior earnings releases from Q3 2024 through Q3 2025, Prosperity consistently reported rising net income, expanding net interest margin, and stable nonperforming assets. These updates often coincided with dividend increases and accretive M&A, including Lone Star State Bancshares, American Bank, and Southwest Bancshares deals. Today’s Q4 2025 and full-year 2025 results, paired with the Stellar Bancorp acquisition, extend that pattern of earnings growth combined with footprint-expanding transactions in key Texas markets.
Historical Comparison
Past earnings headlines moved PB about 1.88% on average. Today’s 1.29% move on Q4/annual results plus the Stellar deal sits within that historical range.
Earnings reports from late 2024 through 2025 show rising EPS and expanding net interest margin, supported by steady asset quality and serial Texas-focused acquisitions.
Market Pulse Summary
The stock moved -7.9% in the session following this news. A negative reaction despite solid Q4 and full‑year 2025 figures would fit PB’s mixed history around earnings, where some strong reports preceded declines. The update featured higher EPS, margin expansion, and deposit growth plus the announced Stellar Bancorp acquisition. Any selloff could reflect concerns about integration risk across multiple Texas bank deals or evolving credit metrics, with nonperforming assets at 0.46% and allowances trending modestly lower over time.
Key Terms
net interest margin financial
nonperforming assets financial
allowance for credit losses financial
basis points financial
definitive merger agreement financial
stock repurchase program financial
noninterest income financial
noninterest expense financial
AI-generated analysis. Not financial advice.
- Announced the signing of a definitive merger agreement to acquire Stellar Bancorp, Inc., headquartered in
Houston, Texas - Net income of
$139.9 million $1.49 - Net income of
$542.8 million 13.2% , and earnings per share (diluted) of$5.72 13.3% , for the year ended December 31, 2025 compared with the same period 2024 - Fourth quarter net interest margin increased 25 basis points to
3.30% compared to3.05% for fourth quarter 2024 - Deposits increased
$700.4 million 10.1% annualized - Allowance for credit losses on loans and on off-balance sheet credit exposure of
$371.4 million 1.63% (1) - Nonperforming assets remain low at
0.46% of fourth quarter average interest-earning assets - Return (annualized) on fourth quarter average assets of
1.49% and average tangible common equity of13.61% (1) - Completed the acquisition of American Bank Holding Corporation on January 1, 2026
- Received all necessary regulatory and shareholder approvals for the pending acquisition of Southwest Bancshares, Inc.,
San Antonio, Texas - Repurchased 2.0 million shares of common stock for
$137.2 million $157.1 million - Approved 2026 Stock Repurchase Program covering up to
5% of outstanding common stock
"I am excited to announce that on January 1, 2026, Prosperity completed the merger with our new partner American and its wholly owned subsidiary American Bank, headquartered in
"We have also received all regulatory and shareholder approvals for the merger with Southwest Bancshares, the parent company of Texas Partners Bank and expect the transaction will be effective on February 1, 2026. In connection with the Southwest deal, we are pleased that Gene Dawson, Interim Chairman of Southwest Bancshares and Chairman of the nationally recognized Pape-Dawson engineering firm will be joining our Bank Board of Directors. To further add to our
"When Prosperity went public in 1998, we were a small community bank in rural
"This morning's announcement that Prosperity is acquiring Stellar Bancorp is consistent with that strategy and this transaction marks an important milestone for the company. Our combined
"Importantly, Stellar Bancorp is a well-run bank with similar credit discipline and an envious noninterest-bearing deposit mix. It has scarcity value, a quality balance sheet and earnings power. As a result, we view the transaction as a low-risk combination that significantly enhances our
Results of Operations for the Three Months Ended December 31, 2025
Net income was
Net interest income before provision for credit losses was
Noninterest income was
Noninterest expense was
Results of Operations for the Year Ended December 31, 2025
For the year ended December 31, 2025, net income was
Net interest income before provision for credit losses for the year ended December 31, 2025, was
Noninterest income was
Noninterest expense was
Balance Sheet Information
Prosperity had
Loans were
Loans, excluding Warehouse Purchase Program loans, were
Deposits were
Asset Quality
Nonperforming assets totaled
The allowance for credit losses on loans and off-balance sheet credit exposures was
The allowance for credit losses on loans was
Net charge-offs were
Net charge-offs were
Dividend
Prosperity Bancshares declared a first quarter 2026 cash dividend of
Stock Repurchase Program
On January 26, 2026, Prosperity Bancshares announced a stock repurchase program under which up to
Pending Acquisition of Stellar Bancorp, Inc.
On January 28, 2026, Prosperity Bancshares and Stellar Bancorp, Inc. ("Stellar") jointly announced the signing of a definitive merger agreement whereby Stellar, the parent company of Stellar Bank ("Stellar Bank") will merge with and into Prosperity Bancshares. Stellar Bank operates 52 banking offices in greater
Under the terms and subject to the conditions of the definitive agreement, Prosperity Bancshares will issue 0.3803 shares of Prosperity Bancshares common stock and
Pending Acquisition of Southwest Bancshares, Inc.
On October 1, 2025, Prosperity Bancshares and Southwest Bancshares, Inc. ("Southwest") jointly announced the signing of a definitive merger agreement (the "Prosperity/Southwest Merger Agreement") whereby Southwest, a
Under the terms and subject to the conditions of the Prosperity/Southwest Merger Agreement, Prosperity Bancshares will issue 4,062,520 shares of Prosperity Bancshares common stock for all outstanding shares of Southwest common stock and restricted stock awards, subject to certain potential adjustments. Southwest warrants and in-the-money Southwest stock options that are outstanding at the closing will be converted into cash payments based on the value of the merger consideration (less the applicable exercise price), as calculated pursuant to the terms of the Prosperity/Southwest Merger Agreement. Based on Prosperity Bancshares' closing price of
Acquisition of American Bank Holding Corporation
On January 1, 2026, Prosperity completed the acquisition of American and its wholly owned subsidiary American Bank, headquartered in
Pursuant to the terms of the definitive agreement, Prosperity Bancshares issued 4,439,938 shares of Prosperity Bancshares common stock to the former shareholders and award holders of American in the first quarter of 2026.
Conference Call
Prosperity's management team will host a conference call on Wednesday, January 28, 2026, at 11:30 a.m. Eastern Time (10:30 a.m. Central Time) to discuss Prosperity's fourth quarter 2025 earnings and the Stellar acquisition announcement. 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 0259843.
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 December 31, 2025, Prosperity Bancshares, Inc.® is a
Prosperity currently operates 301 full-service banking locations: 62 in the
Cautionary Notes on Forward-Looking Statements
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: This press release contains, and the remarks by Prosperity's management on the conference call may contain, statements regarding the proposed transaction between Prosperity Bancshares, Inc. ("Prosperity") and Stellar Bancorp, Inc. ("Stellar"); future financial and operating results; benefits and synergies of the proposed transaction; future opportunities for Prosperity; the issuance of common stock of Prosperity contemplated by the Agreement and Plan of Merger by and between Prosperity and Stellar (the "Merger Agreement"); the expected filing by Prosperity with the Securities and Exchange Commission (the "SEC") of a registration statement on Form S-4 (the "Registration Statement") and a prospectus of Prosperity and a proxy statement of Stellar to be included therein (the "Proxy Statement/Prospectus"); the expected timing of the closing of the proposed transaction; the ability of the parties to complete the proposed transaction considering the various closing conditions and any other statements about future expectations that constitute forward-looking statements within the meaning of the federal securities laws, including the meaning of the Private Securities Litigation Reform Act of 1995, as amended, Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), 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, Stellar and their respective subsidiaries or related to the proposed transaction between Prosperity and Stellar and are subject to significant risks and uncertainties that could cause actual results to differ materially from the results expressed in such statements.
These forward-looking statements may include information about Prosperity's and Stellar'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 and Stellar's future capital expenditures and dividends, future financial condition and changes therein, including changes in Prosperity's and Stellar'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 and Stellar's future operations, future or proposed acquisitions, the future or expected effect of acquisitions on Prosperity's and Stellar'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.
These forward-looking statements are not guarantees of future performance and are based on expectations and assumptions Prosperity and Stellar currently believe to be valid. Because forward-looking statements relate to future results and occurrences, many of which are outside of the control of Prosperity and Stellar, 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); 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; changes in trade policies by
Additional Information about the Transaction and Where to Find It
Prosperity intends to file with the SEC the Registration Statement on Form S-4 to register the shares of Prosperity common stock to be issued to the shareholders of Stellar in connection with the proposed transaction. The Registration Statement will include the Proxy Statement/Prospectus which will be sent to the shareholders of Stellar in connection with the proposed transaction. This communication is not a substitute for the Registration Statement, the Proxy Statement/Prospectus or any other document that may be filed by Prosperity or Stellar with the SEC. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT, THE PROXY STATEMENT/PROSPECTUS AND ANY OTHER RELEVANT DOCUMENTS TO BE FILED WITH THE SEC IN CONNECTION WITH THE PROPOSED TRANSACTION OR INCORPORATED BY REFERENCE INTO THE PROXY/STATEMENT PROSPECTUS, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY, BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION. Investors and security holders will be able to obtain the Registration Statement and the Proxy Statement/Prospectus (when available) and other documents that are filed with the SEC by Prosperity or Stellar, as applicable, free of charge from the SEC's website at https://www.sec.gov or through the investor relations section of Prosperity's website at https://www.prosperitybankusa.com/investor-relations/ or Stellar's website at https://ir.stellar.bank.
Participants in the Solicitation
Prosperity, Stellar and certain of their directors and executive officers and other employees may be deemed to be participants in the solicitation of proxies from Stellar's shareholders in connection with the proposed transaction. Information about the directors and executive officers of Prosperity and their ownership of Prosperity common stock is contained in the definitive proxy statement for Prosperity's 2025 annual meeting of shareholders (the "Prosperity Annual Meeting Proxy Statement"), which was filed with the SEC on March 13, 2025, including under the headings "Item 1. Election of Directors," "Corporate Governance," "Executive Compensation and Other Matters," "Item 3. Advisory Vote on Executive Compensation," and "Beneficial Ownership of Common Stock by Management of the Company and Principal Shareholders." Information about the directors and executive officers of Stellar and their ownership of Stellar common stock is contained in the definitive proxy statement for Stellar's 2025 annual meeting of shareholders (the "Stellar Annual Meeting Proxy Statement"), which was filed with the SEC on April 10, 2025, including under the headings "Proposal 1: Election of Directors," "Certain Corporate Governance Matters," "Executive Compensation and Other Matters," "Executive Compensation Payments and Awards," "Proposal 4: Advisory Vote on the Compensation of the Company's Named Executive Officers ("Say-on-Pay Resolution")," and "Beneficial Ownership of the Company's Common Stock by Management and Principal Shareholders of the Company." Additional information regarding the persons who may, under the rules of the SEC, be deemed participants in the solicitation of the shareholders of Stellar in connection with the proposed transaction, including a description of their direct or indirect interests, by security holdings or otherwise, will be included in the Proxy Statement/Prospectus relating to the proposed transaction when it is filed with the SEC. To the extent holdings of securities by potential participants (or the identity of such participants) have changed since the information printed in the Prosperity Annual Meeting Proxy Statement or the Stellar Annual Meeting Proxy Statement, such information has been or will be reflected on Statements of Change in Ownership on Forms 3 and 4 filed with the SEC, as applicable. Free copies of the Proxy Statement/Prospectus relating to the proposed transaction and free copies of the other SEC filings to which reference is made in this paragraph may be obtained from the SEC's website at https://www.sec.gov or through the investor relations section of Prosperity's website at https://www.prosperitybankusa.com/investor-relations/ or Stellar's website at https://ir.stellar.bank.
No Offer or Solicitation
This communication is for informational purposes only and is not intended to and does not constitute an offer to subscribe for, buy or sell, or the solicitation of an offer to subscribe for, buy or sell, or an invitation to subscribe for, buy or sell any securities or a solicitation of any vote or approval in any jurisdiction, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in which such offer, invitation, sale or solicitation would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act, and otherwise in accordance with applicable law.
(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 | |||
(3) | Includes purchase accounting adjustments of | |||
(4) | Includes purchase accounting adjustments of | |||
(5) | Includes purchase accounting adjustments of | |||
(6) | Includes purchase accounting adjustments of | |||
North Carrolton | Timbergate | Sherwood Way | ||||||
Bryan | Park Cities | Beltway | Water Street | |||||
Bryan-29th Street | Clear Lake | |||||||
Bryan-East | Plano-West | Copperfield | Cattlemans | |||||
Bryan-North | Preston Forest | Cypress | Victoria Main | Kell | ||||
Preston Parker | Downtown | |||||||
Preston Royal | Eastex | Victoria-North | Other | |||||
Victoria Salem | Locations | |||||||
First Colony | ||||||||
Richardson-West | Fry Road | Other | ||||||
Rosewood Court | Gessner | Locations | ||||||
The Colony | Gladebrook | Alice | ||||||
Rock Prairie | Tollroad | Grand Parkway | ||||||
Southwest Parkway | Trinity Mills | Heights | Byers | |||||
Tower Point | Turtle Creek | Highway 6 West | Cisco | |||||
Wellborn Road | West 15th | Little York | Colony Creek | |||||
West Allen | Medical Center | Early | ||||||
Westmoreland | Memorial Drive | |||||||
Northside | Edna | |||||||
Henrietta | ||||||||
Congress | Pecan Grove | |||||||
Pin Oak | ||||||||
Hulen | ||||||||
Northland | ||||||||
Museum Place | SW Medical Center | |||||||
Research Blvd | Renaissance Square | Tanglewood | Mathis | |||||
The Plaza | Padre Island | |||||||
Stockyards | Uptown | |||||||
Other | Waugh Drive | |||||||
Locations | Other | Westheimer | ||||||
Locations | West University | 23rd Street | ||||||
Woodcreek | Expressway | |||||||
Sinton | I-240 | |||||||
Katy | Taft | Memorial | ||||||
Cinco Ranch | ||||||||
Katy- | Other | |||||||
Locations | ||||||||
Gruene | Edmond | |||||||
Norman | ||||||||
The Woodlands-I-45 | ||||||||
Muenster | The Woodlands-Research Forest | Antilley Road | ||||||
Barrow Street | ||||||||
Other | Cypress Street | Garnett | ||||||
Locations | Judge Ely | Harvard | ||||||
Mockingbird | Memorial | |||||||
Sheridan | ||||||||
S. Harvard | ||||||||
Dayton | Hillside | Utica Tower | ||||||
Soncy | ||||||||
Groves | ||||||||
Other Tulsa Area Locations | ||||||||
4th Street | ||||||||
Liberty | 66th Street | |||||||
14th Street Plano | Eustace | Magnolia | 82nd Street | American Bank - | ||||
Abrams Centre | Magnolia Parkway | 86th Street | Austin | |||||
Addison | 110th Street | |||||||
Allen | Avenue Q | Converse | ||||||
Camp Wisdom | North University | |||||||
Shadow Creek | Texas Tech Student Union | Downtown | ||||||
Spring | ||||||||
Rusk | Waller | North | ||||||
Wadley | American Bank - | |||||||
Frisco Warren | Wall Street | South | ||||||
Frisco-West | Tyler- | Winnie | West | Padre Island | ||||
Garland | Tyler-South Broadway | Wirt | Shoreline | |||||
Grapevine | Tyler-University | |||||||
Grapevine Main | Grant | |||||||
Kiest | Bay | |||||||
Lake Highlands | Calallen | Parkway | ||||||
Carmel | ||||||||
McKinney Eldorado | Aldine | Northwest | ||||||
McKinney Redbud | College Hills |
Prosperity Bancshares, Inc.® Financial Highlights (Unaudited) (In thousands) | ||||||||||||||||||||
Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | ||||||||||||||||
Balance Sheet Data (at period end) | ||||||||||||||||||||
Loans held for sale | $ | 14,155 | $ | 11,297 | $ | 6,004 | $ | 9,764 | $ | 10,690 | ||||||||||
Loans held for investment | 20,486,415 | 20,738,294 | 20,903,944 | 20,909,913 | 21,057,616 | |||||||||||||||
Loans held for investment - Warehouse Purchase Program | 1,304,798 | 1,278,178 | 1,287,440 | 1,057,893 | 1,080,903 | |||||||||||||||
Total loans | 21,805,368 | 22,027,769 | 22,197,388 | 21,977,570 | 22,149,209 | |||||||||||||||
Investment securities(A) | 10,613,425 | 10,232,462 | 10,608,104 | 10,792,731 | 11,094,424 | |||||||||||||||
Federal funds sold | 217 | 210 | 197 | 221 | 292 | |||||||||||||||
Allowance for credit losses on loans | (333,742) | (339,626) | (346,084) | (349,101) | (351,805) | |||||||||||||||
Cash and due from banks | 1,747,511 | 1,766,115 | 1,304,993 | 1,694,637 | 1,972,175 | |||||||||||||||
Goodwill | 3,503,127 | 3,503,127 | 3,503,127 | 3,503,127 | 3,503,129 | |||||||||||||||
Core deposit intangibles, net | 51,605 | 55,194 | 58,796 | 62,406 | 66,047 | |||||||||||||||
Other real estate owned | 13,296 | 13,750 | 7,874 | 8,012 | 5,701 | |||||||||||||||
Fixed assets, net | 383,449 | 378,776 | 374,602 | 373,273 | 371,238 | |||||||||||||||
Other assets | 679,169 | 692,692 | 708,355 | 701,799 | 756,328 | |||||||||||||||
Total assets | $ | 38,463,425 | $ | 38,330,469 | $ | 38,417,352 | $ | 38,764,675 | $ | 39,566,738 | ||||||||||
Noninterest-bearing deposits | $ | 9,467,911 | $ | 9,522,028 | $ | 9,426,657 | $ | 9,675,915 | $ | 9,798,438 | ||||||||||
Interest-bearing deposits | 19,014,573 | 18,260,066 | 18,046,754 | 18,350,884 | 18,582,900 | |||||||||||||||
Total deposits | 28,482,484 | 27,782,094 | 27,473,411 | 28,026,799 | 28,381,338 | |||||||||||||||
Other borrowings | 1,950,000 | 2,400,000 | 2,900,000 | 2,700,000 | 3,200,000 | |||||||||||||||
Securities sold under repurchase agreements | 201,216 | 185,797 | 183,572 | 216,086 | 221,913 | |||||||||||||||
Allowance for credit losses on off-balance sheet credit exposures | 37,646 | 37,646 | 37,646 | 37,646 | 37,646 | |||||||||||||||
Other liabilities | 175,939 | 259,994 | 222,987 | 267,083 | 287,346 | |||||||||||||||
Total liabilities | 30,847,285 | 30,665,531 | 30,817,616 | 31,247,614 | 32,128,243 | |||||||||||||||
Shareholders' equity(B) | 7,616,140 | 7,664,938 | 7,599,736 | 7,517,061 | 7,438,495 | |||||||||||||||
Total liabilities and equity | $ | 38,463,425 | $ | 38,330,469 | $ | 38,417,352 | $ | 38,764,675 | $ | 39,566,738 | ||||||||||
(A) | Includes ( |
(B) | Includes ( |
Prosperity Bancshares, Inc.® Financial Highlights (Unaudited) (In thousands) | ||||||||||||||||||||||||||||
Three Months Ended | Year-to-Date | |||||||||||||||||||||||||||
Dec 31, | Sep 30, | Jun 30, | Mar 31, | Dec 31, | Dec 31, | Dec 31, | ||||||||||||||||||||||
Income Statement Data | ||||||||||||||||||||||||||||
Interest income: | ||||||||||||||||||||||||||||
Loans | $ | 321,516 | $ | 329,445 | $ | 325,490 | $ | 319,023 | $ | 333,055 | $ | 1,295,474 | $ | 1,313,162 | ||||||||||||||
Securities(C) | 56,767 | 58,207 | 57,836 | 57,886 | 58,260 | 230,696 | 246,726 | |||||||||||||||||||||
Federal funds sold and other earning assets | 8,364 | 10,455 | 9,438 | 15,896 | 19,630 | 44,153 | 63,825 | |||||||||||||||||||||
Total interest income | 386,647 | 398,107 | 392,764 | 392,805 | 410,945 | 1,570,323 | 1,623,713 | |||||||||||||||||||||
Interest expense: | ||||||||||||||||||||||||||||
Deposits | 94,625 | 95,965 | 93,790 | 95,597 | 102,050 | 379,977 | 408,624 | |||||||||||||||||||||
Other borrowings | 16,028 | 27,613 | 30,101 | 30,492 | 39,620 | 104,234 | 181,640 | |||||||||||||||||||||
Securities sold under repurchase agreements | 1,041 | 1,094 | 1,151 | 1,334 | 1,501 | 4,620 | 6,954 | |||||||||||||||||||||
Total interest expense | 111,694 | 124,672 | 125,042 | 127,423 | 143,171 | 488,831 | 597,218 | |||||||||||||||||||||
Net interest income | 274,953 | 273,435 | 267,722 | 265,382 | 267,774 | 1,081,492 | 1,026,495 | |||||||||||||||||||||
Provision for credit losses | — | — | — | — | — | — | 9,066 | |||||||||||||||||||||
Net interest income after provision for credit losses | 274,953 | 273,435 | 267,722 | 265,382 | 267,774 | 1,081,492 | 1,017,429 | |||||||||||||||||||||
Noninterest income: | ||||||||||||||||||||||||||||
Nonsufficient funds (NSF) fees | 9,715 | 9,805 | 8,885 | 9,147 | 9,960 | 37,552 | 35,417 | |||||||||||||||||||||
Credit card, debit card and ATM card income | 9,462 | 9,446 | 9,761 | 8,739 | 9,443 | 37,408 | 37,308 | |||||||||||||||||||||
Service charges on deposit accounts | 7,618 | 7,317 | 7,645 | 7,408 | 6,992 | 29,988 | 26,498 | |||||||||||||||||||||
Trust income | 3,662 | 3,526 | 3,859 | 3,601 | 3,514 | 14,648 | 14,750 | |||||||||||||||||||||
Mortgage income | 954 | 931 | 965 | 1,009 | 779 | 3,859 | 3,096 | |||||||||||||||||||||
Brokerage income | 1,570 | 1,328 | 1,225 | 1,262 | 1,063 | 5,385 | 4,742 | |||||||||||||||||||||
Bank owned life insurance income | 2,117 | 2,111 | 1,985 | 2,115 | 2,020 | 8,328 | 7,980 | |||||||||||||||||||||
Net gain (loss) on sale or write-down of assets | 35 | 3 | 1,414 | (235) | 584 | 1,217 | 2,824 | |||||||||||||||||||||
Net gain on sale or write-up of securities | — | — | — | — | — | — | 11,245 | |||||||||||||||||||||
Other noninterest income | 7,647 | 6,771 | 7,243 | 8,255 | 5,482 | 29,916 | 21,949 | |||||||||||||||||||||
Total noninterest income | 42,780 | 41,238 | 42,982 | 41,301 | 39,837 | 168,301 | 165,809 | |||||||||||||||||||||
Noninterest expense: | ||||||||||||||||||||||||||||
Salaries and benefits | 88,384 | 87,949 | 87,296 | 89,476 | 88,631 | 353,105 | 352,353 | |||||||||||||||||||||
Net occupancy and equipment | 9,379 | 9,395 | 9,168 | 9,146 | 8,957 | 37,088 | 35,786 | |||||||||||||||||||||
Credit and debit card, data processing and | 12,621 | 12,515 | 12,056 | 11,422 | 12,342 | 48,614 | 47,300 | |||||||||||||||||||||
Regulatory assessments and FDIC insurance | 1,600 | 5,198 | 5,508 | 5,789 | 5,789 | 18,095 | 27,370 | |||||||||||||||||||||
Core deposit intangibles amortization | 3,588 | 3,602 | 3,610 | 3,641 | 4,131 | 14,441 | 15,670 | |||||||||||||||||||||
Depreciation | 5,155 | 4,966 | 4,779 | 4,774 | 4,791 | 19,674 | 19,054 | |||||||||||||||||||||
Communications | 3,528 | 3,480 | 3,507 | 3,473 | 3,450 | 13,988 | 13,697 | |||||||||||||||||||||
Other real estate expense | 219 | 314 | 204 | 140 | 255 | 877 | 523 | |||||||||||||||||||||
Net loss (gain) on sale or write-down of other | 109 | (81) | (222) | (30) | (610) | (224) | (814) | |||||||||||||||||||||
Merger related expenses | 268 | 62 | — | — | — | 330 | 4,444 | |||||||||||||||||||||
Other noninterest expense | 13,861 | 11,235 | 12,659 | 12,470 | 13,809 | 50,225 | 55,190 | |||||||||||||||||||||
Total noninterest expense | 138,712 | 138,635 | 138,565 | 140,301 | 141,545 | 556,213 | 570,573 | |||||||||||||||||||||
Income before income taxes | 179,021 | 176,038 | 172,139 | 166,382 | 166,066 | 693,580 | 612,665 | |||||||||||||||||||||
Provision for income taxes | 39,114 | 38,482 | 36,984 | 36,157 | 35,990 | 150,737 | 133,279 | |||||||||||||||||||||
Net income available to common shareholders | $ | 139,907 | $ | 137,556 | $ | 135,155 | $ | 130,225 | $ | 130,076 | $ | 542,843 | $ | 479,386 | ||||||||||||||
(C) | Interest income on securities was reduced by net premium amortization of |
Prosperity Bancshares, Inc. ® Financial Highlights (Unaudited) (Dollars and share amounts in thousands, except per share data and market prices) | ||||||||||||||||||||||||||||
Three Months Ended | Year-to-Date | |||||||||||||||||||||||||||
Dec 31, | Sep 30, | Jun 30, | Mar 31, | Dec 31, | Dec 31, | Dec 31, | ||||||||||||||||||||||
Profitability | ||||||||||||||||||||||||||||
Net income (D) (E) | $ | 139,907 | $ | 137,556 | $ | 135,155 | $ | 130,225 | $ | 130,076 | $ | 542,843 | $ | 479,386 | ||||||||||||||
Basic earnings per share | $ | 1.49 | $ | 1.45 | $ | 1.42 | $ | 1.37 | $ | 1.37 | $ | 5.72 | $ | 5.05 | ||||||||||||||
Diluted earnings per share | $ | 1.49 | $ | 1.45 | $ | 1.42 | $ | 1.37 | $ | 1.37 | $ | 5.72 | $ | 5.05 | ||||||||||||||
Return on average assets (F) (J) | 1.49 | % | 1.44 | % | 1.41 | % | 1.34 | % | 1.31 | % | 1.42 | % | 1.21 | % | ||||||||||||||
Return on average common equity (F) (J) | 7.30 | % | 7.18 | % | 7.13 | % | 6.94 | % | 7.00 | % | 7.14 | % | 6.56 | % | ||||||||||||||
Return on average tangible common | 13.61 | % | 13.43 | % | 13.44 | % | 13.23 | % | 13.50 | % | 13.43 | % | 12.73 | % | ||||||||||||||
Tax equivalent net interest margin (D) (E) (H) | 3.30 | % | 3.24 | % | 3.18 | % | 3.14 | % | 3.05 | % | 3.22 | % | 2.93 | % | ||||||||||||||
Efficiency ratio (G) (I) (K) | 43.66 | % | 44.06 | % | 44.80 | % | 45.71 | % | 46.10 | % | 44.55 | % | 48.43 | % | ||||||||||||||
Liquidity and Capital Ratios | ||||||||||||||||||||||||||||
Equity to assets | 19.80 | % | 20.00 | % | 19.78 | % | 19.39 | % | 18.80 | % | 19.80 | % | 18.80 | % | ||||||||||||||
Common equity tier 1 capital | 17.55 | % | 17.53 | % | 17.10 | % | 16.92 | % | 16.42 | % | 17.55 | % | 16.42 | % | ||||||||||||||
Tier 1 risk-based capital | 17.55 | % | 17.53 | % | 17.10 | % | 16.92 | % | 16.42 | % | 17.55 | % | 16.42 | % | ||||||||||||||
Total risk-based capital | 18.80 | % | 18.78 | % | 18.35 | % | 18.17 | % | 17.67 | % | 18.80 | % | 17.67 | % | ||||||||||||||
Tier 1 leverage capital | 11.93 | % | 11.90 | % | 11.62 | % | 11.20 | % | 10.82 | % | 11.93 | % | 10.82 | % | ||||||||||||||
Period end tangible equity to period end | 11.63 | % | 11.81 | % | 11.58 | % | 11.23 | % | 10.75 | % | 11.63 | % | 10.75 | % | ||||||||||||||
Other Data | ||||||||||||||||||||||||||||
Weighted-average shares used in | ||||||||||||||||||||||||||||
Basic | 94,044 | 95,093 | 95,277 | 95,266 | 95,264 | 94,917 | 95,000 | |||||||||||||||||||||
Diluted | 94,044 | 95,093 | 95,277 | 95,266 | 95,264 | 94,917 | 95,000 | |||||||||||||||||||||
Period end shares outstanding | 93,058 | 94,993 | 95,277 | 95,258 | 95,275 | 93,058 | 95,275 | |||||||||||||||||||||
Cash dividends paid per common share | $ | 0.60 | $ | 0.58 | $ | 0.58 | $ | 0.58 | $ | 0.58 | $ | 2.34 | $ | 2.26 | ||||||||||||||
Book value per common share | $ | 81.84 | $ | 80.69 | $ | 79.76 | $ | 78.91 | $ | 78.07 | $ | 81.84 | $ | 78.07 | ||||||||||||||
Tangible book value per common share (G) | $ | 43.64 | $ | 43.23 | $ | 42.38 | $ | 41.48 | $ | 40.61 | $ | 43.64 | $ | 40.61 | ||||||||||||||
Common Stock Market Price | ||||||||||||||||||||||||||||
High | $ | 73.90 | $ | 75.44 | $ | 74.56 | $ | 82.75 | $ | 86.76 | $ | 82.75 | $ | 86.76 | ||||||||||||||
Low | $ | 61.07 | $ | 64.27 | $ | 61.57 | $ | 68.96 | $ | 68.94 | $ | 61.07 | $ | 57.16 | ||||||||||||||
Period end closing price | $ | 69.11 | $ | 66.35 | $ | 70.24 | $ | 71.37 | $ | 75.35 | $ | 69.11 | $ | 75.35 | ||||||||||||||
Employees – FTE (excluding overtime) | 3,941 | 3,937 | 3,921 | 3,898 | 3,916 | 3,941 | 3,916 | |||||||||||||||||||||
Number of banking centers | 283 | 283 | 283 | 284 | 283 | 283 | 283 | |||||||||||||||||||||
(D) | Includes purchase accounting adjustments for the periods presented as follows: |
Three Months Ended | Year-to-Date | ||||||||||||
Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Dec 31, 2025 | Dec 31, 2024 | |||||||
Loan discount accretion | |||||||||||||
Non-PCD | |||||||||||||
PCD | |||||||||||||
Securities net accretion | |||||||||||||
Time deposits amortization | |||||||||||||
(E) | Using effective tax rate of |
(F) | Interim periods annualized. |
(G) | Refer to the "Notes to Selected Financial Data" at the end of this Earnings Release for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure. |
(H) | Net interest margin for all periods presented is based on average balances on an actual 365-day or 366-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 | ||||||||||||||||||||||||||||||
Dec 31, 2025 | Sep 30, 2025 | Dec 31, 2024 | |||||||||||||||||||||||||||||
Average | Interest | Average | (L) | Average | Interest | Average | (L) | Average | Interest | Average | (L) | ||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||||||||||||
Loans held for sale | $ | 11,077 | $ | 175 | 6.27 % | $ | 8,371 | $ | 140 | 6.64 % | $ | 8,571 | $ | 144 | 6.68 % | ||||||||||||||||
Loans held for investment | 20,603,235 | 302,679 | 5.83 % | 20,851,896 | 309,949 | 5.90 % | 21,038,694 | 313,863 | 5.93 % | ||||||||||||||||||||||
Loans held for investment - | 1,258,036 | 18,662 | 5.89 % | 1,217,579 | 19,356 | 6.31 % | 1,137,113 | 19,048 | 6.66 % | ||||||||||||||||||||||
Total loans | 21,872,348 | 321,516 | 5.83 % | 22,077,846 | 329,445 | 5.92 % | 22,184,378 | 333,055 | 5.97 % | ||||||||||||||||||||||
Investment securities | 10,378,696 | 56,767 | 2.17 % | (M) | 10,530,807 | 58,207 | 2.19 % | (M) | 11,265,535 | 58,260 | 2.06 % | (M) | |||||||||||||||||||
Federal funds sold and other | 830,926 | 8,364 | 3.99 % | 934,318 | 10,455 | 4.44 % | 1,628,050 | 19,630 | 4.80 % | ||||||||||||||||||||||
Total interest-earning assets | 33,081,970 | 386,647 | 4.64 % | 33,542,971 | 398,107 | 4.71 % | 35,077,963 | 410,945 | 4.66 % | ||||||||||||||||||||||
Allowance for credit losses on | (337,892) | (343,872) | (353,560) | ||||||||||||||||||||||||||||
Noninterest-earning assets | 4,921,850 | 4,930,764 | 4,902,996 | ||||||||||||||||||||||||||||
Total assets | $ | 37,665,928 | $ | 38,129,863 | $ | 39,627,399 | |||||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||||||||||
Interest-bearing demand deposits | $ | 4,812,342 | $ | 9,088 | 0.75 % | $ | 4,656,452 | $ | 8,951 | 0.76 % | $ | 4,845,174 | $ | 8,535 | 0.70 % | ||||||||||||||||
Savings and money market | 9,054,281 | 44,771 | 1.96 % | 8,977,585 | 46,934 | 2.07 % | 8,915,410 | 47,089 | 2.10 % | ||||||||||||||||||||||
Certificates and other time | 4,519,742 | 40,766 | 3.58 % | 4,422,996 | 40,080 | 3.60 % | 4,552,445 | 46,426 | 4.06 % | ||||||||||||||||||||||
Other borrowings | 1,595,652 | 16,028 | 3.99 % | 2,480,435 | 27,613 | 4.42 % | 3,332,609 | 39,620 | 4.73 % | ||||||||||||||||||||||
Securities sold under repurchase | 185,289 | 1,041 | 2.23 % | 187,462 | 1,094 | 2.32 % | 231,240 | 1,501 | 2.58 % | ||||||||||||||||||||||
Total interest-bearing liabilities | 20,167,306 | 111,694 | 2.20 % | (N) | 20,724,930 | 124,672 | 2.39 % | (N) | 21,876,878 | 143,171 | 2.60 % | (N) | |||||||||||||||||||
Noninterest-bearing liabilities: | |||||||||||||||||||||||||||||||
Noninterest-bearing demand | 9,543,581 | 9,451,153 | 9,829,912 | ||||||||||||||||||||||||||||
Allowance for credit losses on | 37,646 | 37,646 | 37,646 | ||||||||||||||||||||||||||||
Other liabilities | 248,593 | 258,156 | 454,298 | ||||||||||||||||||||||||||||
Total liabilities | 29,997,126 | 30,471,885 | 32,198,734 | ||||||||||||||||||||||||||||
Shareholders' equity | 7,668,802 | 7,657,978 | 7,428,665 | ||||||||||||||||||||||||||||
Total liabilities and | $ | 37,665,928 | $ | 38,129,863 | $ | 39,627,399 | |||||||||||||||||||||||||
Net interest income and margin | $ | 274,953 | 3.30 % | $ | 273,435 | 3.23 % | $ | 267,774 | 3.04 % | ||||||||||||||||||||||
Non-GAAP to GAAP | |||||||||||||||||||||||||||||||
Tax equivalent adjustment | 514 | 807 | 767 | ||||||||||||||||||||||||||||
Net interest income and margin | $ | 275,467 | 3.30 % | $ | 274,242 | 3.24 % | $ | 268,541 | 3.05 % | ||||||||||||||||||||||
(L) | Annualized and based on an actual 365-day or 366-day basis. |
(M) | Yield on securities was impacted by net premium amortization of |
(N) | Total cost of funds, including noninterest bearing deposits, was |
Prosperity Bancshares, Inc.® Financial Highlights (Unaudited) (Dollars in thousands) | |||||||||||||||||||||
YIELD ANALYSIS | Year-to-Date | ||||||||||||||||||||
Dec 31, 2025 | Dec 31, 2024 | ||||||||||||||||||||
Average | Interest | Average | (O) | Average | Interest | Average | (O) | ||||||||||||||
Interest-earning assets: | |||||||||||||||||||||
Loans held for sale | $ | 9,215 | $ | 608 | 6.60 % | $ | 7,603 | $ | 522 | 6.87 % | |||||||||||
Loans held for investment | 20,829,523 | 1,224,368 | 5.88 % | 20,973,042 | 1,242,836 | 5.93 % | |||||||||||||||
Loans held for investment - Warehouse Purchase | 1,134,031 | 70,498 | 6.22 % | 973,206 | 69,804 | 7.17 % | |||||||||||||||
Total loans | 21,972,769 | 1,295,474 | 5.90 % | 21,953,851 | 1,313,162 | 5.98 % | |||||||||||||||
Investment securities | 10,696,480 | 230,696 | 2.16 % | (P) | 11,934,793 | 246,726 | 2.07 % | (P) | |||||||||||||
Federal funds sold and other earning assets | 1,010,707 | 44,153 | 4.37 % | 1,216,728 | 63,825 | 5.25 % | |||||||||||||||
Total interest-earning assets | 33,679,956 | 1,570,323 | 4.66 % | 35,105,372 | 1,623,713 | 4.63 % | |||||||||||||||
Allowance for credit losses on loans | (345,158) | (344,167) | |||||||||||||||||||
Noninterest-earning assets | 4,946,200 | 4,839,630 | |||||||||||||||||||
Total assets | $ | 38,280,998 | $ | 39,600,835 | |||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||
Interest-bearing demand deposits | $ | 4,873,634 | $ | 35,917 | 0.74 % | $ | 4,900,189 | $ | 35,342 | 0.72 % | |||||||||||
Savings and money market deposits | 8,996,090 | 183,146 | 2.04 % | 8,949,010 | 194,317 | 2.17 % | |||||||||||||||
Certificates and other time deposits | 4,434,168 | 160,914 | 3.63 % | 4,301,763 | 178,965 | 4.16 % | |||||||||||||||
Other borrowings | 2,389,589 | 104,234 | 4.36 % | 3,802,910 | 181,640 | 4.78 % | |||||||||||||||
Securities sold under repurchase agreements | 196,205 | 4,620 | 2.35 % | 257,171 | 6,954 | 2.70 % | |||||||||||||||
Total interest-bearing liabilities | 20,889,686 | 488,831 | 2.34 % | (Q) | 22,211,043 | 597,218 | 2.69 % | (Q) | |||||||||||||
Noninterest-bearing liabilities: | |||||||||||||||||||||
Noninterest-bearing demand deposits | 9,501,997 | 9,683,980 | |||||||||||||||||||
Allowance for credit losses on off-balance sheet credit | 37,646 | 37,134 | |||||||||||||||||||
Other liabilities | 246,359 | 363,607 | |||||||||||||||||||
Total liabilities | 30,675,688 | 32,295,764 | |||||||||||||||||||
Shareholders' equity | 7,605,310 | 7,305,071 | |||||||||||||||||||
Total liabilities and shareholders' equity | $ | 38,280,998 | $ | 39,600,835 | |||||||||||||||||
Net interest income and margin | $ | 1,081,492 | 3.21 % | $ | 1,026,495 | 2.92 % | |||||||||||||||
Non-GAAP to GAAP reconciliation: | |||||||||||||||||||||
Tax equivalent adjustment | 2,185 | 3,183 | |||||||||||||||||||
Net interest income and margin (tax equivalent basis) | $ | 1,083,677 | 3.22 % | $ | 1,029,678 | 2.93 % | |||||||||||||||
(O) | Based on an actual 365-day or 366-day basis. |
(P) | Yield on securities was impacted by net premium amortization of |
(Q) | Total cost of funds, including noninterest bearing deposits, was |
Prosperity Bancshares, Inc.® Financial Highlights (Unaudited) (Dollars in thousands) | |||||||||||||||||||
Three Months Ended | |||||||||||||||||||
Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | |||||||||||||||
YIELD TREND (R) | |||||||||||||||||||
Interest-Earning Assets: | |||||||||||||||||||
Loans held for sale | 6.27 | % | 6.64 | % | 6.79 | % | 6.80 | % | 6.68 | % | |||||||||
Loans held for investment | 5.83 | % | 5.90 | % | 5.88 | % | 5.90 | % | 5.93 | % | |||||||||
Loans held for investment - Warehouse | 5.89 | % | 6.31 | % | 6.34 | % | 6.40 | % | 6.66 | % | |||||||||
Total loans | 5.83 | % | 5.92 | % | 5.91 | % | 5.92 | % | 5.97 | % | |||||||||
Investment securities (S) | 2.17 | % | 2.19 | % | 2.13 | % | 2.13 | % | 2.06 | % | |||||||||
Federal funds sold and other earning assets | 3.99 | % | 4.44 | % | 4.50 | % | 4.47 | % | 4.80 | % | |||||||||
Total interest-earning assets | 4.64 | % | 4.71 | % | 4.66 | % | 4.64 | % | 4.66 | % | |||||||||
Interest-Bearing Liabilities: | |||||||||||||||||||
Interest-bearing demand deposits | 0.75 | % | 0.76 | % | 0.74 | % | 0.70 | % | 0.70 | % | |||||||||
Savings and money market deposits | 1.96 | % | 2.07 | % | 2.05 | % | 2.06 | % | 2.10 | % | |||||||||
Certificates and other time deposits | 3.58 | % | 3.60 | % | 3.59 | % | 3.75 | % | 4.06 | % | |||||||||
Other borrowings | 3.99 | % | 4.42 | % | 4.44 | % | 4.45 | % | 4.73 | % | |||||||||
Securities sold under repurchase agreements | 2.23 | % | 2.32 | % | 2.37 | % | 2.48 | % | 2.58 | % | |||||||||
Total interest-bearing liabilities | 2.20 | % | 2.39 | % | 2.38 | % | 2.39 | % | 2.60 | % | |||||||||
Net Interest Margin | 3.30 | % | 3.23 | % | 3.18 | % | 3.14 | % | 3.04 | % | |||||||||
Net Interest Margin (tax equivalent) | 3.30 | % | 3.24 | % | 3.18 | % | 3.14 | % | 3.05 | % | |||||||||
(R) | Annualized and based on average balances on an actual 365-day or 366-day basis. |
(S) | Yield on securities was impacted by net premium amortization of |
Prosperity Bancshares, Inc.® Financial Highlights (Unaudited) (Dollars in thousands) | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | ||||||||||||||||
Balance Sheet Averages | ||||||||||||||||||||
Loans held for sale | $ | 11,077 | $ | 8,371 | $ | 9,813 | $ | 7,570 | $ | 8,571 | ||||||||||
Loans held for investment | 20,603,235 | 20,851,896 | 20,907,400 | 20,959,226 | 21,038,694 | |||||||||||||||
Loans held for investment - Warehouse Purchase | 1,258,036 | 1,217,579 | 1,179,307 | 876,086 | 1,137,113 | |||||||||||||||
Total loans | 21,872,348 | 22,077,846 | 22,096,520 | 21,842,882 | 22,184,378 | |||||||||||||||
Investment securities | 10,378,696 | 10,530,807 | 10,867,856 | 11,017,400 | 11,265,535 | |||||||||||||||
Federal funds sold and other earning assets | 830,926 | 934,318 | 841,933 | 1,443,220 | 1,628,050 | |||||||||||||||
Total interest-earning assets | 33,081,970 | 33,542,971 | 33,806,309 | 34,303,502 | 35,077,963 | |||||||||||||||
Allowance for credit losses on loans | (337,892) | (343,872) | (348,310) | (350,715) | (353,560) | |||||||||||||||
Cash and due from banks | 311,541 | 291,809 | 294,379 | 326,066 | 317,420 | |||||||||||||||
Goodwill | 3,503,127 | 3,503,127 | 3,503,127 | 3,503,128 | 3,505,030 | |||||||||||||||
Core deposit intangibles, net | 53,553 | 56,956 | 60,739 | 64,293 | 68,167 | |||||||||||||||
Other real estate | 14,004 | 11,533 | 8,749 | 7,105 | 6,778 | |||||||||||||||
Fixed assets, net | 380,254 | 377,680 | 374,486 | 374,448 | 373,561 | |||||||||||||||
Other assets | 659,371 | 689,659 | 691,735 | 729,251 | 632,040 | |||||||||||||||
Total assets | $ | 37,665,928 | $ | 38,129,863 | $ | 38,391,214 | $ | 38,957,078 | $ | 39,627,399 | ||||||||||
Noninterest-bearing deposits | $ | 9,543,581 | $ | 9,451,153 | $ | 9,508,845 | $ | 9,504,540 | $ | 9,829,912 | ||||||||||
Interest-bearing demand deposits | 4,812,342 | 4,656,452 | 4,807,864 | 5,224,796 | 4,845,174 | |||||||||||||||
Savings and money market deposits | 9,054,281 | 8,977,585 | 8,944,897 | 9,007,286 | 8,915,410 | |||||||||||||||
Certificates and other time deposits | 4,519,742 | 4,422,996 | 4,366,510 | 4,426,521 | 4,552,445 | |||||||||||||||
Total deposits | 27,929,946 | 27,508,186 | 27,628,116 | 28,163,143 | 28,142,941 | |||||||||||||||
Other borrowings | 1,595,652 | 2,480,435 | 2,717,583 | 2,776,667 | 3,332,609 | |||||||||||||||
Securities sold under repurchase agreements | 185,289 | 187,462 | 194,577 | 217,945 | 231,240 | |||||||||||||||
Allowance for credit losses on off-balance sheet | 37,646 | 37,646 | 37,646 | 37,646 | 37,646 | |||||||||||||||
Other liabilities | 248,593 | 258,156 | 227,002 | 255,876 | 454,298 | |||||||||||||||
Shareholders' equity | 7,668,802 | 7,657,978 | 7,586,290 | 7,505,801 | 7,428,665 | |||||||||||||||
Total liabilities and equity | $ | 37,665,928 | $ | 38,129,863 | $ | 38,391,214 | $ | 38,957,078 | $ | 39,627,399 | ||||||||||
Prosperity Bancshares, Inc.® Financial Highlights (Unaudited) (Dollars in thousands) | |||||||||||||||||||||||||||||||||||
Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | |||||||||||||||||||||||||||||||
Period End Balances | |||||||||||||||||||||||||||||||||||
Loan Portfolio | |||||||||||||||||||||||||||||||||||
Commercial and | $ | 1,864,337 | 8.6 | % | $ | 1,879,282 | 8.5 | % | $ | 1,897,117 | 8.6 | % | $ | 1,915,124 | 8.7 | % | $ | 1,962,111 | 8.8 | % | |||||||||||||||
Warehouse purchase | 1,304,798 | 6.0 | % | 1,278,178 | 5.8 | % | 1,287,440 | 5.8 | % | 1,057,893 | 4.8 | % | 1,080,903 | 4.9 | % | ||||||||||||||||||||
Construction, land | 2,741,455 | 12.6 | % | 2,865,279 | 13.0 | % | 2,873,238 | 12.9 | % | 2,845,082 | 13.0 | % | 2,859,281 | 12.9 | % | ||||||||||||||||||||
1-4 family residential | 7,430,929 | 34.1 | % | 7,461,900 | 33.9 | % | 7,530,816 | 33.9 | % | 7,576,350 | 34.5 | % | 7,581,450 | 34.2 | % | ||||||||||||||||||||
Home equity | 843,708 | 3.8 | % | 848,740 | 3.9 | % | 869,370 | 3.9 | % | 896,529 | 4.1 | % | 906,139 | 4.1 | % | ||||||||||||||||||||
Commercial real estate | 5,776,397 | 26.5 | % | 5,796,937 | 26.3 | % | 5,827,645 | 26.3 | % | 5,783,410 | 26.3 | % | 5,800,985 | 26.2 | % | ||||||||||||||||||||
Agriculture (includes | 1,027,904 | 4.7 | % | 1,019,589 | 4.6 | % | 1,029,250 | 4.6 | % | 1,013,960 | 4.6 | % | 1,033,546 | 4.7 | % | ||||||||||||||||||||
Consumer and other | 376,241 | 1.7 | % | 366,027 | 1.7 | % | 368,747 | 1.7 | % | 378,821 | 1.7 | % | 378,817 | 1.7 | % | ||||||||||||||||||||
Energy | 439,599 | 2.0 | % | 511,837 | 2.3 | % | 513,765 | 2.3 | % | 510,401 | 2.3 | % | 545,977 | 2.5 | % | ||||||||||||||||||||
Total loans | $ | 21,805,368 | $ | 22,027,769 | $ | 22,197,388 | $ | 21,977,570 | $ | 22,149,209 | |||||||||||||||||||||||||
Deposit Types | |||||||||||||||||||||||||||||||||||
Noninterest-bearing | $ | 9,467,911 | 33.2 | % | $ | 9,522,028 | 34.3 | % | $ | 9,426,657 | 34.3 | % | $ | 9,675,915 | 34.5 | % | $ | 9,798,438 | 34.5 | % | |||||||||||||||
Interest-bearing DDA | 5,365,795 | 18.8 | % | 4,766,146 | 17.2 | % | 4,708,251 | 17.1 | % | 4,931,769 | 17.6 | % | 5,182,035 | 18.3 | % | ||||||||||||||||||||
Money market | 6,538,213 | 23.0 | % | 6,402,591 | 23.0 | % | 6,302,770 | 23.0 | % | 6,339,509 | 22.6 | % | 6,229,022 | 21.9 | % | ||||||||||||||||||||
Savings | 2,592,873 | 9.1 | % | 2,616,196 | 9.4 | % | 2,667,859 | 9.7 | % | 2,703,736 | 9.7 | % | 2,685,496 | 9.5 | % | ||||||||||||||||||||
Certificates and other | 4,517,692 | 15.9 | % | 4,475,133 | 16.1 | % | 4,367,874 | 15.9 | % | 4,375,870 | 15.6 | % | 4,486,347 | 15.8 | % | ||||||||||||||||||||
Total deposits | $ | 28,482,484 | $ | 27,782,094 | $ | 27,473,411 | $ | 28,026,799 | $ | 28,381,338 | |||||||||||||||||||||||||
Loan to Deposit Ratio | 76.6 | % | 79.3 | % | 80.8 | % | 78.4 | % | 78.0 | % | |||||||||||||||||||||||||
Prosperity Bancshares, Inc.® Financial Highlights (Unaudited) (Dollars in thousands) | |||||||||||||||||||||||||||||||||||
Construction Loans | |||||||||||||||||||||||||||||||||||
Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | |||||||||||||||||||||||||||||||
Single family residential | $ | 613,288 | 22.4 | % | $ | 665,194 | 23.2 | % | $ | 696,569 | 24.2 | % | $ | 727,417 | 25.6 | % | $ | 778,067 | 27.2 | % | |||||||||||||||
Land development | 252,650 | 9.2 | % | 248,616 | 8.7 | % | 227,254 | 7.9 | % | 225,784 | 7.9 | % | 260,158 | 9.1 | % | ||||||||||||||||||||
Raw land | 220,169 | 8.0 | % | 230,021 | 8.0 | % | 248,380 | 8.7 | % | 261,918 | 9.2 | % | 278,892 | 9.7 | % | ||||||||||||||||||||
Residential lots | 199,709 | 7.3 | % | 203,396 | 7.1 | % | 217,835 | 7.6 | % | 219,115 | 7.7 | % | 209,850 | 7.3 | % | ||||||||||||||||||||
Commercial lots | 59,683 | 2.2 | % | 59,853 | 2.1 | % | 55,176 | 1.9 | % | 56,343 | 2.0 | % | 59,044 | 2.1 | % | ||||||||||||||||||||
Commercial construction and other | 1,396,850 | 50.9 | % | 1,459,255 | 50.9 | % | 1,428,985 | 49.7 | % | 1,355,587 | 47.6 | % | 1,274,619 | 44.6 | % | ||||||||||||||||||||
Net unaccreted discount | (894) | (1,056) | (961) | (1,082) | (1,349) | ||||||||||||||||||||||||||||||
Total construction loans | $ | 2,741,455 | $ | 2,865,279 | $ | 2,873,238 | $ | 2,845,082 | $ | 2,859,281 | |||||||||||||||||||||||||
Non-Owner Occupied Commercial Real Estate Loans by Metropolitan Statistical Area (MSA) as of December 31, 2025 | ||||||||||||||||||||||||||||
OK City | Other (T) | Total | ||||||||||||||||||||||||||
Collateral Type | ||||||||||||||||||||||||||||
Shopping center/retail | $ | 235,413 | $ | 232,707 | $ | 56,771 | $ | 15,277 | $ | 10,103 | $ | 324,838 | $ | 875,109 | ||||||||||||||
Commercial and industrial | 178,079 | 99,941 | 21,201 | 32,892 | 11,709 | 250,095 | 593,917 | |||||||||||||||||||||
Office buildings | 105,380 | 275,630 | 67,950 | 43,406 | 4,115 | 97,139 | 593,620 | |||||||||||||||||||||
Medical buildings | 105,572 | 16,583 | 1,626 | 42,405 | 26,358 | 64,697 | 257,241 | |||||||||||||||||||||
Apartment buildings | 163,772 | 125,836 | 115,077 | 10,914 | 12,734 | 213,785 | 642,118 | |||||||||||||||||||||
Hotel | 111,368 | 128,965 | 29,744 | 13,055 | — | 163,981 | 447,113 | |||||||||||||||||||||
Other | 175,802 | 63,257 | 83,831 | 5,568 | 6,767 | 77,319 | 412,544 | |||||||||||||||||||||
Total | $ | 1,075,386 | $ | 942,919 | $ | 376,200 | $ | 163,517 | $ | 71,786 | $ | 1,191,854 | $ | 3,821,662 | (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 | |||||||||||||||||||||||||||
Loan marks: | |||||||||||||||||||||||||||||||||||
Acquired banks (V) | $ | 388,625 | $ | 20,406 | $ | 17,479 | $ | 332,400 | $ | 5,472 | $ | 5,267 | $ | 721,025 | $ | 25,878 | $ | 22,746 | |||||||||||||||||
Acquired portfolio | |||||||||||||||||||||||||||||||||||
Acquired banks (V) | 14,323,981 | 1,609,115 | 1,498,731 | 1,376,673 | 350,644 | 300,010 | 15,700,654 | (W) | 1,959,759 | 1,798,741 | |||||||||||||||||||||||||
Acquired portfolio | $ | 13,935,356 | $ | 1,588,709 | $ | 1,481,252 | $ | 1,044,273 | $ | 345,172 | $ | 294,743 | $ | 14,979,629 | $ | 1,933,881 | $ | 1,775,995 | |||||||||||||||||
(T) | Includes other MSA and non-MSA regions. |
(U) | Represents a portion of total commercial real estate loans of |
(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, LegacyTexas Bank, FirstCapital Bank and Lone Star Bank. |
(W) | Actual principal balances acquired. |
Prosperity Bancshares, Inc.® Financial Highlights (Unaudited) (Dollars in thousands) | |||||||||||||||||||||||||||
Three Months Ended | Year-to-Date | ||||||||||||||||||||||||||
Dec 31, | Sep 30, | Jun 30, | Mar 31, | Dec 31, | Dec 31, | Dec 31, | |||||||||||||||||||||
Asset Quality | |||||||||||||||||||||||||||
Nonaccrual loans | $ | 137,217 | $ | 105,529 | $ | 102,031 | $ | 73,287 | $ | 73,647 | $ | 137,217 | $ | 73,647 | |||||||||||||
Accruing loans 90 or more days past due | 317 | 268 | 576 | 91 | 2,189 | 317 | 2,189 | ||||||||||||||||||||
Total nonperforming loans | 137,534 | 105,797 | 102,607 | 73,378 | 75,836 | 137,534 | 75,836 | ||||||||||||||||||||
Repossessed assets | 12 | 16 | 6 | 29 | 4 | 12 | 4 | ||||||||||||||||||||
Other real estate | 13,296 | 13,750 | 7,874 | 8,012 | 5,701 | 13,296 | 5,701 | ||||||||||||||||||||
Total nonperforming assets | $ | 150,842 | $ | 119,563 | $ | 110,487 | $ | 81,419 | $ | 81,541 | $ | 150,842 | $ | 81,541 | |||||||||||||
Nonperforming assets: | |||||||||||||||||||||||||||
Commercial and industrial (includes energy) | $ | 57,237 | $ | 27,880 | $ | 27,680 | $ | 8,966 | $ | 10,080 | $ | 57,237 | $ | 10,080 | |||||||||||||
Construction, land development and other | 2,183 | 583 | 1,859 | 1,952 | 4,481 | 2,183 | 4,481 | ||||||||||||||||||||
1-4 family residential (includes home | 60,296 | 57,241 | 50,501 | 42,481 | 44,824 | 60,296 | 44,824 | ||||||||||||||||||||
Commercial real estate (includes multi- | 9,215 | 11,471 | 12,865 | 12,257 | 18,861 | 9,215 | 18,861 | ||||||||||||||||||||
Agriculture (includes farmland) | 16,713 | 17,080 | 17,547 | 15,725 | 3,208 | 16,713 | 3,208 | ||||||||||||||||||||
Consumer and other | 5,198 | 5,308 | 35 | 38 | 87 | 5,198 | 87 | ||||||||||||||||||||
Total | $ | 150,842 | $ | 119,563 | $ | 110,487 | $ | 81,419 | $ | 81,541 | $ | 150,842 | $ | 81,541 | |||||||||||||
Number of loans/properties | 449 | 424 | 392 | 363 | 368 | 449 | 368 | ||||||||||||||||||||
Allowance for credit losses on loans | $ | 333,742 | $ | 339,626 | $ | 346,084 | $ | 349,101 | $ | 351,805 | $ | 333,742 | $ | 351,805 | |||||||||||||
Net charge-offs (recoveries): | |||||||||||||||||||||||||||
Commercial and industrial (includes | $ | 5,388 | $ | 3,341 | $ | 1,044 | $ | 330 | $ | 405 | $ | 10,103 | $ | 6,774 | |||||||||||||
Construction, land development and other | (154) | 34 | (3) | (156) | 294 | (279) | 779 | ||||||||||||||||||||
1-4 family residential (includes home | 175 | 853 | 342 | 1,051 | 180 | 2,421 | 1,471 | ||||||||||||||||||||
Commercial real estate (includes multi- | (665) | 1,015 | 55 | 178 | 362 | 583 | 222 | ||||||||||||||||||||
Agriculture (includes farmland) | (5) | (40) | (14) | — | 5 | (59) | 126 | ||||||||||||||||||||
Consumer and other | 1,145 | 1,255 | 1,593 | 1,301 | 1,346 | 5,294 | 5,186 | ||||||||||||||||||||
Total | $ | 5,884 | $ | 6,458 | $ | 3,017 | $ | 2,704 | $ | 2,592 | $ | 18,063 | $ | 14,558 | |||||||||||||
Asset Quality Ratios | |||||||||||||||||||||||||||
Nonperforming assets to average interest- | 0.46 | % | 0.36 | % | 0.33 | % | 0.24 | % | 0.23 | % | 0.45 | % | 0.23 | % | |||||||||||||
Nonperforming assets to loans and other real | 0.69 | % | 0.54 | % | 0.50 | % | 0.37 | % | 0.37 | % | 0.69 | % | 0.37 | % | |||||||||||||
Net charge-offs to average loans (annualized) | 0.11 | % | 0.12 | % | 0.05 | % | 0.05 | % | 0.05 | % | 0.08 | % | 0.07 | % | |||||||||||||
Allowance for credit losses on loans to total | 1.53 | % | 1.54 | % | 1.56 | % | 1.59 | % | 1.59 | % | 1.53 | % | 1.59 | % | |||||||||||||
Allowance for credit losses on loans to total | 1.63 | % | 1.64 | % | 1.66 | % | 1.67 | % | 1.67 | % | 1.63 | % | 1.67 | % | |||||||||||||
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 | |||||||||||||||||||||||||||||
Dec 31, | Sep 30, | Jun 30, | Mar 31, | Dec 31, | Dec 31, | Dec 31, | ||||||||||||||||||||||||
Reconciliation of diluted earnings per share to | ||||||||||||||||||||||||||||||
Diluted earnings per share (unadjusted) | $ | 1.49 | $ | 1.45 | $ | 1.42 | $ | 1.37 | $ | 1.37 | $ | 5.72 | $ | 5.05 | ||||||||||||||||
Net income | $ | 139,907 | $ | 137,556 | $ | 135,155 | $ | 130,225 | $ | 130,076 | $ | 542,843 | $ | 479,386 | ||||||||||||||||
Merger related provision for credit losses, net of | — | — | — | — | — | — | 7,162 | |||||||||||||||||||||||
Merger related expenses, net of tax(X) | 212 | 49 | — | — | — | 261 | 3,511 | |||||||||||||||||||||||
FDIC special assessment, net of tax(X) | (2,807) | — | — | — | — | (2,807) | 2,807 | |||||||||||||||||||||||
Net gain on sale or write-up of securities, net of | — | — | — | — | — | — | (8,884) | |||||||||||||||||||||||
Net income excluding merger related provision for | $ | 137,312 | $ | 137,605 | $ | 135,155 | $ | 130,225 | $ | 130,076 | $ | 540,297 | $ | 483,982 | ||||||||||||||||
Weighted average diluted shares outstanding | 94,044 | 95,093 | 95,277 | 95,266 | 95,264 | 94,917 | 95,000 | |||||||||||||||||||||||
Merger related provision for credit losses, net of tax, | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 0.08 | ||||||||||||||||
Merger related expenses, net of tax, per diluted | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 0.04 | ||||||||||||||||
FDIC special assessment, net of tax, per diluted | $ | (0.03) | $ | — | $ | — | $ | — | $ | — | $ | (0.03) | $ | 0.03 | ||||||||||||||||
Net gain on sale or write-up of securities, net of tax, | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (0.09) | ||||||||||||||||
Diluted earnings per share excluding merger related | $ | 1.46 | $ | 1.45 | $ | 1.42 | $ | 1.37 | $ | 1.37 | $ | 5.69 | $ | 5.11 | ||||||||||||||||
Reconciliation of return on average assets to | ||||||||||||||||||||||||||||||
Return on average assets (unadjusted) | 1.49 | % | 1.44 | % | 1.41 | % | 1.34 | % | 1.31 | % | 1.42 | % | 1.21 | % | ||||||||||||||||
Net income excluding merger related provision for | $ | 137,312 | $ | 137,605 | $ | 135,155 | $ | 130,225 | $ | 130,076 | $ | 540,297 | $ | 483,982 | ||||||||||||||||
Average total assets | $ | 37,665,928 | $ | 38,129,863 | $ | 38,391,214 | $ | 38,957,078 | $ | 39,627,399 | $ | 38,280,998 | $ | 39,600,835 | ||||||||||||||||
Return on average assets excluding merger related | 1.46 | % | 1.44 | % | 1.41 | % | 1.34 | % | 1.31 | % | 1.41 | % | 1.22 | % | ||||||||||||||||
(X) | Calculated assuming a federal tax rate of | |||||||||||||||||||||||||||||
Three Months Ended | Year-to-Date | |||||||||||||||||||||||||||||
Dec 31, | Sep 30, | Jun 30, | Mar 31, | Dec 31, | Dec 31, | Dec 31, | ||||||||||||||||||||||||
Reconciliation of return on average common | ||||||||||||||||||||||||||||||
Return on average common equity (unadjusted) | 7.30 | % | 7.18 | % | 7.13 | % | 6.94 | % | 7.00 | % | 7.14 | % | 6.56 | % | ||||||||||||||||
Net income excluding merger related provision for | $ | 137,312 | $ | 137,605 | $ | 135,155 | $ | 130,225 | $ | 130,076 | $ | 540,297 | $ | 483,982 | ||||||||||||||||
Average shareholders' equity | $ | 7,668,802 | $ | 7,657,978 | $ | 7,586,290 | $ | 7,505,801 | $ | 7,428,665 | $ | 7,605,310 | $ | 7,305,071 | ||||||||||||||||
Return on average common equity excluding merger | 7.16 | % | 7.19 | % | 7.13 | % | 6.94 | % | 7.00 | % | 7.10 | % | 6.63 | % | ||||||||||||||||
Reconciliation of return on average common | ||||||||||||||||||||||||||||||
Net income | $ | 139,907 | $ | 137,556 | $ | 135,155 | $ | 130,225 | $ | 130,076 | $ | 542,843 | $ | 479,386 | ||||||||||||||||
Average shareholders' equity | $ | 7,668,802 | $ | 7,657,978 | $ | 7,586,290 | $ | 7,505,801 | $ | 7,428,665 | $ | 7,605,310 | $ | 7,305,071 | ||||||||||||||||
Less: Average goodwill and other intangible assets | (3,556,680) | (3,560,083) | (3,563,866) | (3,567,421) | (3,573,197) | (3,561,978) | (3,537,930) | |||||||||||||||||||||||
Average tangible shareholders' equity | $ | 4,112,122 | $ | 4,097,895 | $ | 4,022,424 | $ | 3,938,380 | $ | 3,855,468 | $ | 4,043,332 | $ | 3,767,141 | ||||||||||||||||
Return on average tangible common equity (F) | 13.61 | % | 13.43 | % | 13.44 | % | 13.23 | % | 13.50 | % | 13.43 | % | 12.73 | % | ||||||||||||||||
Reconciliation of return on average common | ||||||||||||||||||||||||||||||
Net income excluding merger related provision for | $ | 137,312 | $ | 137,605 | $ | 135,155 | $ | 130,225 | $ | 130,076 | $ | 540,297 | $ | 483,982 | ||||||||||||||||
Average shareholders' equity | $ | 7,668,802 | $ | 7,657,978 | $ | 7,586,290 | $ | 7,505,801 | $ | 7,428,665 | $ | 7,605,310 | $ | 7,305,071 | ||||||||||||||||
Less: Average goodwill and other intangible assets | (3,556,680) | (3,560,083) | (3,563,866) | (3,567,421) | (3,573,197) | (3,561,978) | (3,537,930) | |||||||||||||||||||||||
Average tangible shareholders' equity | $ | 4,112,122 | $ | 4,097,895 | $ | 4,022,424 | $ | 3,938,380 | $ | 3,855,468 | $ | 4,043,332 | $ | 3,767,141 | ||||||||||||||||
Return on average tangible common equity | 13.36 | % | 13.43 | % | 13.44 | % | 13.23 | % | 13.50 | % | 13.36 | % | 12.85 | % | ||||||||||||||||
Reconciliation of book value per share to tangible | ||||||||||||||||||||||||||||||
Shareholders' equity | $ | 7,616,140 | $ | 7,664,938 | $ | 7,599,736 | $ | 7,517,061 | $ | 7,438,495 | $ | 7,616,140 | $ | 7,438,495 | ||||||||||||||||
Less: Goodwill and other intangible assets | (3,554,732) | (3,558,321) | (3,561,923) | (3,565,533) | (3,569,176) | (3,554,732) | (3,569,176) | |||||||||||||||||||||||
Tangible shareholders' equity | $ | 4,061,408 | $ | 4,106,617 | $ | 4,037,813 | $ | 3,951,528 | $ | 3,869,319 | $ | 4,061,408 | $ | 3,869,319 | ||||||||||||||||
Period end shares outstanding | 93,058 | 94,993 | 95,277 | 95,258 | 95,275 | 93,058 | 95,275 | |||||||||||||||||||||||
Tangible book value per share | $ | 43.64 | $ | 43.23 | $ | 42.38 | $ | 41.48 | $ | 40.61 | $ | 43.64 | $ | 40.61 | ||||||||||||||||
Three Months Ended | Year-to-Date | |||||||||||||||||||||||||||||
Dec 31, | Sep 30, | Jun 30, | Mar 31, | Dec 31, | Dec 31, | Dec 31, | ||||||||||||||||||||||||
Reconciliation of equity to assets ratio to period | ||||||||||||||||||||||||||||||
Tangible shareholders' equity | $ | 4,061,408 | $ | 4,106,617 | $ | 4,037,813 | $ | 3,951,528 | $ | 3,869,319 | $ | 4,061,408 | $ | 3,869,319 | ||||||||||||||||
Total assets | $ | 38,463,425 | $ | 38,330,469 | $ | 38,417,352 | $ | 38,764,675 | $ | 39,566,738 | $ | 38,463,425 | $ | 39,566,738 | ||||||||||||||||
Less: Goodwill and other intangible assets | (3,554,732) | (3,558,321) | (3,561,923) | (3,565,533) | (3,569,176) | (3,554,732) | (3,569,176) | |||||||||||||||||||||||
Tangible assets | $ | 34,908,693 | $ | 34,772,148 | $ | 34,855,429 | $ | 35,199,142 | $ | 35,997,562 | $ | 34,908,693 | $ | 35,997,562 | ||||||||||||||||
Period end tangible equity to period end tangible | 11.63 | % | 11.81 | % | 11.58 | % | 11.23 | % | 10.75 | % | 11.63 | % | 10.75 | % | ||||||||||||||||
Reconciliation of allowance for credit losses to | ||||||||||||||||||||||||||||||
Allowance for credit losses on loans | $ | 333,742 | $ | 339,626 | $ | 346,084 | $ | 349,101 | $ | 351,805 | $ | 333,742 | $ | 351,805 | ||||||||||||||||
Total loans | $ | 21,805,368 | $ | 22,027,769 | $ | 22,197,388 | $ | 21,977,570 | $ | 22,149,209 | $ | 21,805,368 | $ | 22,149,209 | ||||||||||||||||
Less: Warehouse Purchase Program loans | (1,304,798) | (1,278,178) | (1,287,440) | (1,057,893) | (1,080,903) | (1,304,798) | (1,080,903) | |||||||||||||||||||||||
Total loans less Warehouse Purchase Program | $ | 20,500,570 | $ | 20,749,591 | $ | 20,909,948 | $ | 20,919,677 | $ | 21,068,306 | $ | 20,500,570 | $ | 21,068,306 | ||||||||||||||||
Allowance for credit losses on loans to total loans | 1.63 | % | 1.64 | % | 1.66 | % | 1.67 | % | 1.67 | % | 1.63 | % | 1.67 | % | ||||||||||||||||
Reconciliation of efficiency ratio to efficiency | ||||||||||||||||||||||||||||||
Noninterest expense | $ | 138,712 | $ | 138,635 | $ | 138,565 | $ | 140,301 | $ | 141,545 | $ | 556,213 | $ | 570,573 | ||||||||||||||||
Net interest income | $ | 274,953 | $ | 273,435 | $ | 267,722 | $ | 265,382 | $ | 267,774 | $ | 1,081,492 | $ | 1,026,495 | ||||||||||||||||
Noninterest income | 42,780 | 41,238 | 42,982 | 41,301 | 39,837 | 168,301 | 165,809 | |||||||||||||||||||||||
Less: net gain (loss) on sale or write-down of | 35 | 3 | 1,414 | (235) | 584 | 1,217 | 2,824 | |||||||||||||||||||||||
Less: net gain on sale or write-up of securities | — | — | — | — | — | — | 11,245 | |||||||||||||||||||||||
Noninterest income excluding net gains and losses | 42,745 | 41,235 | 41,568 | 41,536 | 39,253 | 167,084 | 151,740 | |||||||||||||||||||||||
Total income excluding net gains and losses on | $ | 317,698 | $ | 314,670 | $ | 309,290 | $ | 306,918 | $ | 307,027 | $ | 1,248,576 | $ | 1,178,235 | ||||||||||||||||
Efficiency ratio, excluding net gains and losses on | 43.66 | % | 44.06 | % | 44.80 | % | 45.71 | % | 46.10 | % | 44.55 | % | 48.43 | % | ||||||||||||||||
Reconciliation of efficiency ratio to efficiency | ||||||||||||||||||||||||||||||
Noninterest expense | $ | 138,712 | $ | 138,635 | $ | 138,565 | $ | 140,301 | $ | 141,545 | $ | 556,213 | $ | 570,573 | ||||||||||||||||
Less: merger related expenses | 268 | 62 | — | — | — | 330 | 4,444 | |||||||||||||||||||||||
Less: FDIC special assessment | (3,554) | — | — | — | — | (3,554) | 3,554 | |||||||||||||||||||||||
Noninterest expense excluding merger related | $ | 141,998 | $ | 138,573 | $ | 138,565 | $ | 140,301 | $ | 141,545 | $ | 559,437 | $ | 562,575 | ||||||||||||||||
Net interest income | $ | 274,953 | $ | 273,435 | $ | 267,722 | $ | 265,382 | $ | 267,774 | $ | 1,081,492 | $ | 1,026,495 | ||||||||||||||||
Noninterest income | 42,780 | 41,238 | 42,982 | 41,301 | 39,837 | 168,301 | 165,809 | |||||||||||||||||||||||
Less: net gain (loss) on sale or write down of | 35 | 3 | 1,414 | (235) | 584 | 1,217 | 2,824 | |||||||||||||||||||||||
Less: net gain on sale or write-up of securities | — | — | — | — | — | — | 11,245 | |||||||||||||||||||||||
Noninterest income excluding net gains and losses | 42,745 | 41,235 | 41,568 | 41,536 | 39,253 | 167,084 | 151,740 | |||||||||||||||||||||||
Total income excluding net gains and losses on | $ | 317,698 | $ | 314,670 | $ | 309,290 | $ | 306,918 | $ | 307,027 | $ | 1,248,576 | $ | 1,178,235 | ||||||||||||||||
Efficiency ratio, excluding net gains and losses on | 44.70 | % | 44.04 | % | 44.80 | % | 45.71 | % | 46.10 | % | 44.81 | % | 47.75 | % | ||||||||||||||||
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SOURCE Prosperity Bancshares, Inc.
FAQ
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