PROSPERITY BANCSHARES INC 0001068851 --12-31 Q2 false 742331986 false P90D P10Y 742331986 0001068851 2019-01-01 2019-06-30 xbrli:shares 0001068851 2019-07-30 iso4217:USD 0001068851 2019-06-30 0001068851 2018-12-31 iso4217:USD xbrli:shares 0001068851 2019-04-01 2019-06-30 0001068851 2018-04-01 2018-06-30 0001068851 2018-01-01 2018-06-30 0001068851 us-gaap:CommonStockMember 2019-03-31 0001068851 us-gaap:AdditionalPaidInCapitalMember 2019-03-31 0001068851 us-gaap:RetainedEarningsMember 2019-03-31 0001068851 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-03-31 0001068851 2019-03-31 0001068851 us-gaap:RetainedEarningsMember 2019-04-01 2019-06-30 0001068851 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-04-01 2019-06-30 0001068851 us-gaap:CommonStockMember 2019-04-01 2019-06-30 0001068851 us-gaap:AdditionalPaidInCapitalMember 2019-04-01 2019-06-30 0001068851 us-gaap:CommonStockMember 2019-06-30 0001068851 us-gaap:AdditionalPaidInCapitalMember 2019-06-30 0001068851 us-gaap:RetainedEarningsMember 2019-06-30 0001068851 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-06-30 0001068851 us-gaap:CommonStockMember 2018-12-31 0001068851 us-gaap:AdditionalPaidInCapitalMember 2018-12-31 0001068851 us-gaap:RetainedEarningsMember 2018-12-31 0001068851 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-31 0001068851 us-gaap:RetainedEarningsMember 2019-01-01 2019-06-30 0001068851 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-01-01 2019-06-30 0001068851 us-gaap:CommonStockMember 2019-01-01 2019-06-30 0001068851 us-gaap:AdditionalPaidInCapitalMember 2019-01-01 2019-06-30 0001068851 us-gaap:CommonStockMember 2018-03-31 0001068851 us-gaap:AdditionalPaidInCapitalMember 2018-03-31 0001068851 us-gaap:RetainedEarningsMember 2018-03-31 0001068851 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-03-31 0001068851 2018-03-31 0001068851 us-gaap:RetainedEarningsMember 2018-04-01 2018-06-30 0001068851 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-04-01 2018-06-30 0001068851 us-gaap:CommonStockMember 2018-04-01 2018-06-30 0001068851 us-gaap:AdditionalPaidInCapitalMember 2018-04-01 2018-06-30 0001068851 us-gaap:CommonStockMember 2018-06-30 0001068851 us-gaap:AdditionalPaidInCapitalMember 2018-06-30 0001068851 us-gaap:RetainedEarningsMember 2018-06-30 0001068851 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-06-30 0001068851 2018-06-30 0001068851 us-gaap:CommonStockMember 2017-12-31 0001068851 us-gaap:AdditionalPaidInCapitalMember 2017-12-31 0001068851 us-gaap:RetainedEarningsMember 2017-12-31 0001068851 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2017-12-31 0001068851 2017-12-31 0001068851 us-gaap:RetainedEarningsMember 2018-01-01 2018-06-30 0001068851 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-01-01 2018-06-30 0001068851 us-gaap:CommonStockMember 2018-01-01 2018-06-30 0001068851 us-gaap:AdditionalPaidInCapitalMember 2018-01-01 2018-06-30 0001068851 us-gaap:AccountingStandardsUpdate201602Member 2019-01-01 0001068851 us-gaap:USStatesAndPoliticalSubdivisionsMember 2019-06-30 0001068851 us-gaap:CollateralizedMortgageObligationsMember 2019-06-30 0001068851 us-gaap:MortgageBackedSecuritiesMember 2019-06-30 0001068851 pb:UsTreasurySecuritiesAndObligationsOfUsGovernmentAgenciesMember 2019-06-30 0001068851 us-gaap:USStatesAndPoliticalSubdivisionsMember 2018-12-31 0001068851 us-gaap:CollateralizedMortgageObligationsMember 2018-12-31 0001068851 us-gaap:MortgageBackedSecuritiesMember 2018-12-31 0001068851 pb:UsTreasurySecuritiesAndObligationsOfUsGovernmentAgenciesMember 2018-12-31 pb:Segment pb:Security xbrli:pure 0001068851 us-gaap:StockholdersEquityTotalMember pb:SecuritiesConcentrationRiskMember 2019-01-01 2019-06-30 0001068851 us-gaap:StockholdersEquityTotalMember pb:SecuritiesConcentrationRiskMember 2018-01-01 2018-12-31 0001068851 us-gaap:CollateralizedSecuritiesMember 2019-06-30 0001068851 us-gaap:CollateralizedSecuritiesMember 2018-12-31 0001068851 pb:ResidentialMortgageLoansMember 2019-06-30 0001068851 pb:ResidentialMortgageLoansMember 2018-12-31 0001068851 us-gaap:CommercialAndIndustrialSectorMember 2019-06-30 0001068851 us-gaap:CommercialAndIndustrialSectorMember 2018-12-31 0001068851 pb:ConstructionLandDevelopmentAndOtherLandLoansMember us-gaap:RealEstateSectorMember 2019-06-30 0001068851 pb:ConstructionLandDevelopmentAndOtherLandLoansMember us-gaap:RealEstateSectorMember 2018-12-31 0001068851 pb:FamilyResidential14IncludesHomeEquityMember us-gaap:RealEstateSectorMember 2019-06-30 0001068851 pb:FamilyResidential14IncludesHomeEquityMember us-gaap:RealEstateSectorMember 2018-12-31 0001068851 pb:CommercialRealEstateIncludesMultifamilyResidentialMember us-gaap:RealEstateSectorMember 2019-06-30 0001068851 pb:CommercialRealEstateIncludesMultifamilyResidentialMember us-gaap:RealEstateSectorMember 2018-12-31 0001068851 pb:FarmlandMember us-gaap:RealEstateSectorMember 2019-06-30 0001068851 pb:FarmlandMember us-gaap:RealEstateSectorMember 2018-12-31 0001068851 us-gaap:AgriculturalSectorMember 2019-06-30 0001068851 us-gaap:AgriculturalSectorMember 2018-12-31 0001068851 pb:ConsumerAndOtherMember 2019-06-30 0001068851 pb:ConsumerAndOtherMember 2018-12-31 0001068851 2018-01-01 2018-12-31 0001068851 pb:ConstructionLandDevelopmentAndOtherLandLoansMember pb:FinancingReceivables30To89DaysPastDueMember us-gaap:RealEstateSectorMember 2019-06-30 0001068851 pb:AgricultureAndAgricultureRealEstateIncludesFarmlandMember pb:FinancingReceivables30To89DaysPastDueMember 2019-06-30 0001068851 pb:FamilyResidential14IncludesHomeEquityMember pb:FinancingReceivables30To89DaysPastDueMember us-gaap:RealEstateSectorMember 2019-06-30 0001068851 pb:CommercialRealEstateIncludesMultifamilyResidentialMember pb:FinancingReceivables30To89DaysPastDueMember us-gaap:RealEstateSectorMember 2019-06-30 0001068851 pb:FinancingReceivables30To89DaysPastDueMember us-gaap:CommercialAndIndustrialSectorMember 2019-06-30 0001068851 pb:FinancingReceivables30To89DaysPastDueMember pb:ConsumerAndOtherMember 2019-06-30 0001068851 pb:FinancingReceivables30To89DaysPastDueMember 2019-06-30 0001068851 pb:ConstructionLandDevelopmentAndOtherLandLoansMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember us-gaap:RealEstateSectorMember 2019-06-30 0001068851 pb:FamilyResidential14IncludesHomeEquityMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember us-gaap:RealEstateSectorMember 2019-06-30 0001068851 us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember us-gaap:CommercialAndIndustrialSectorMember 2019-06-30 0001068851 us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2019-06-30 0001068851 pb:AgricultureAndAgricultureRealEstateIncludesFarmlandMember 2019-06-30 0001068851 pb:FinancingReceivables30To89DaysPastDueMember pb:ConstructionLandDevelopmentAndOtherLandLoansMember us-gaap:RealEstateSectorMember 2018-12-31 0001068851 pb:FinancingReceivables30To89DaysPastDueMember pb:AgricultureAndAgricultureRealEstateIncludesFarmlandMember 2018-12-31 0001068851 pb:FinancingReceivables30To89DaysPastDueMember pb:FamilyResidential14IncludesHomeEquityMember us-gaap:RealEstateSectorMember 2018-12-31 0001068851 pb:FinancingReceivables30To89DaysPastDueMember pb:CommercialRealEstateIncludesMultifamilyResidentialMember us-gaap:RealEstateSectorMember 2018-12-31 0001068851 pb:FinancingReceivables30To89DaysPastDueMember us-gaap:CommercialAndIndustrialSectorMember 2018-12-31 0001068851 pb:FinancingReceivables30To89DaysPastDueMember pb:ConsumerAndOtherMember 2018-12-31 0001068851 pb:FinancingReceivables30To89DaysPastDueMember 2018-12-31 0001068851 us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember pb:ConstructionLandDevelopmentAndOtherLandLoansMember us-gaap:RealEstateSectorMember 2018-12-31 0001068851 us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember pb:FamilyResidential14IncludesHomeEquityMember us-gaap:RealEstateSectorMember 2018-12-31 0001068851 us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember us-gaap:CommercialAndIndustrialSectorMember 2018-12-31 0001068851 us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2018-12-31 0001068851 pb:AgricultureAndAgricultureRealEstateIncludesFarmlandMember 2018-12-31 0001068851 us-gaap:NonperformingFinancingReceivableMember pb:FinancingReceivableNonAccrualStatusMember 2019-06-30 0001068851 us-gaap:NonperformingFinancingReceivableMember pb:FinancingReceivableNonAccrualStatusMember 2018-12-31 0001068851 us-gaap:NonperformingFinancingReceivableMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2019-06-30 0001068851 us-gaap:NonperformingFinancingReceivableMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2018-12-31 0001068851 us-gaap:NonperformingFinancingReceivableMember 2019-06-30 0001068851 us-gaap:NonperformingFinancingReceivableMember 2018-12-31 0001068851 pb:TroubledDebtRestructuringMember us-gaap:NonperformingFinancingReceivableMember pb:FinancingReceivableNonAccrualStatusMember 2019-06-30 0001068851 pb:TroubledDebtRestructuringMember us-gaap:NonperformingFinancingReceivableMember pb:FinancingReceivableNonAccrualStatusMember 2018-12-31 0001068851 pb:NonperformingFinancingReceivableAssetsMember 2019-06-30 0001068851 pb:NonperformingFinancingReceivableAssetsMember 2018-12-31 0001068851 pb:PciLoansMember 2019-06-30 0001068851 pb:PciLoansMember 2018-12-31 0001068851 pb:PciLoansMember 2019-03-31 0001068851 pb:PciLoansMember 2018-03-31 0001068851 pb:PciLoansMember 2017-12-31 0001068851 pb:PciLoansMember 2019-04-01 2019-06-30 0001068851 pb:PciLoansMember 2018-04-01 2018-06-30 0001068851 pb:PciLoansMember 2019-01-01 2019-06-30 0001068851 pb:PciLoansMember 2018-01-01 2018-06-30 0001068851 pb:PciLoansMember 2018-06-30 0001068851 pb:NonPciLoansMember 2019-06-30 0001068851 pb:NonPciLoansMember 2018-12-31 0001068851 pb:NonPciLoansMember 2019-03-31 0001068851 pb:NonPciLoansMember 2018-03-31 0001068851 pb:NonPciLoansMember 2017-12-31 0001068851 pb:NonPciLoansMember 2018-04-01 2018-06-30 0001068851 pb:NonPciLoansMember 2018-01-01 2018-06-30 0001068851 pb:NonPciLoansMember 2019-04-01 2019-06-30 0001068851 pb:NonPciLoansMember 2019-01-01 2019-06-30 0001068851 pb:NonPciLoansMember 2018-06-30 0001068851 pb:ConstructionLandDevelopmentAndOtherLandLoansMember us-gaap:RealEstateSectorMember 2019-01-01 2019-06-30 0001068851 pb:AgricultureAndAgricultureRealEstateIncludesFarmlandMember 2019-01-01 2019-06-30 0001068851 pb:FamilyResidential14IncludesHomeEquityMember us-gaap:RealEstateSectorMember 2019-01-01 2019-06-30 0001068851 pb:CommercialRealEstateIncludesMultifamilyResidentialMember us-gaap:RealEstateSectorMember 2019-01-01 2019-06-30 0001068851 us-gaap:CommercialAndIndustrialSectorMember 2019-01-01 2019-06-30 0001068851 pb:ConsumerAndOtherMember 2019-01-01 2019-06-30 0001068851 pb:ConstructionLandDevelopmentAndOtherLandLoansMember us-gaap:RealEstateSectorMember 2018-01-01 2018-12-31 0001068851 pb:AgricultureAndAgricultureRealEstateIncludesFarmlandMember 2018-01-01 2018-12-31 0001068851 pb:FamilyResidential14IncludesHomeEquityMember us-gaap:RealEstateSectorMember 2018-01-01 2018-12-31 0001068851 pb:CommercialRealEstateIncludesMultifamilyResidentialMember us-gaap:RealEstateSectorMember 2018-01-01 2018-12-31 0001068851 us-gaap:CommercialAndIndustrialSectorMember 2018-01-01 2018-12-31 0001068851 pb:ConsumerAndOtherMember 2018-01-01 2018-12-31 0001068851 pb:ConstructionLandDevelopmentAndOtherLandLoansMember us-gaap:InternalInvestmentGradeMember us-gaap:RealEstateSectorMember 2019-06-30 0001068851 pb:AgricultureAndAgricultureRealEstateIncludesFarmlandMember us-gaap:InternalInvestmentGradeMember 2019-06-30 0001068851 pb:FamilyResidential14IncludesHomeEquityMember us-gaap:InternalInvestmentGradeMember us-gaap:RealEstateSectorMember 2019-06-30 0001068851 pb:CommercialRealEstateIncludesMultifamilyResidentialMember us-gaap:InternalInvestmentGradeMember us-gaap:RealEstateSectorMember 2019-06-30 0001068851 us-gaap:InternalInvestmentGradeMember us-gaap:CommercialAndIndustrialSectorMember 2019-06-30 0001068851 us-gaap:InternalInvestmentGradeMember pb:ConsumerAndOtherMember 2019-06-30 0001068851 us-gaap:InternalInvestmentGradeMember 2019-06-30 0001068851 pb:ConstructionLandDevelopmentAndOtherLandLoansMember us-gaap:PrimeMember us-gaap:RealEstateSectorMember 2019-06-30 0001068851 pb:AgricultureAndAgricultureRealEstateIncludesFarmlandMember us-gaap:PrimeMember 2019-06-30 0001068851 pb:FamilyResidential14IncludesHomeEquityMember us-gaap:PrimeMember us-gaap:RealEstateSectorMember 2019-06-30 0001068851 pb:CommercialRealEstateIncludesMultifamilyResidentialMember us-gaap:PrimeMember us-gaap:RealEstateSectorMember 2019-06-30 0001068851 us-gaap:PrimeMember us-gaap:CommercialAndIndustrialSectorMember 2019-06-30 0001068851 us-gaap:PrimeMember pb:ConsumerAndOtherMember 2019-06-30 0001068851 us-gaap:PrimeMember 2019-06-30 0001068851 pb:ConstructionLandDevelopmentAndOtherLandLoansMember pb:Grade3Member us-gaap:RealEstateSectorMember 2019-06-30 0001068851 pb:AgricultureAndAgricultureRealEstateIncludesFarmlandMember pb:Grade3Member 2019-06-30 0001068851 pb:FamilyResidential14IncludesHomeEquityMember pb:Grade3Member us-gaap:RealEstateSectorMember 2019-06-30 0001068851 pb:CommercialRealEstateIncludesMultifamilyResidentialMember pb:Grade3Member us-gaap:RealEstateSectorMember 2019-06-30 0001068851 pb:Grade3Member us-gaap:CommercialAndIndustrialSectorMember 2019-06-30 0001068851 pb:Grade3Member pb:ConsumerAndOtherMember 2019-06-30 0001068851 pb:Grade3Member 2019-06-30 0001068851 pb:ConstructionLandDevelopmentAndOtherLandLoansMember pb:Grade4Member us-gaap:RealEstateSectorMember 2019-06-30 0001068851 pb:AgricultureAndAgricultureRealEstateIncludesFarmlandMember pb:Grade4Member 2019-06-30 0001068851 pb:FamilyResidential14IncludesHomeEquityMember pb:Grade4Member us-gaap:RealEstateSectorMember 2019-06-30 0001068851 pb:CommercialRealEstateIncludesMultifamilyResidentialMember pb:Grade4Member us-gaap:RealEstateSectorMember 2019-06-30 0001068851 pb:Grade4Member us-gaap:CommercialAndIndustrialSectorMember 2019-06-30 0001068851 pb:Grade4Member pb:ConsumerAndOtherMember 2019-06-30 0001068851 pb:Grade4Member 2019-06-30 0001068851 pb:ConstructionLandDevelopmentAndOtherLandLoansMember us-gaap:SpecialMentionMember us-gaap:RealEstateSectorMember 2019-06-30 0001068851 pb:AgricultureAndAgricultureRealEstateIncludesFarmlandMember us-gaap:SpecialMentionMember 2019-06-30 0001068851 pb:FamilyResidential14IncludesHomeEquityMember us-gaap:SpecialMentionMember us-gaap:RealEstateSectorMember 2019-06-30 0001068851 pb:CommercialRealEstateIncludesMultifamilyResidentialMember us-gaap:SpecialMentionMember us-gaap:RealEstateSectorMember 2019-06-30 0001068851 us-gaap:SpecialMentionMember us-gaap:CommercialAndIndustrialSectorMember 2019-06-30 0001068851 us-gaap:SpecialMentionMember pb:ConsumerAndOtherMember 2019-06-30 0001068851 us-gaap:SpecialMentionMember 2019-06-30 0001068851 pb:ConstructionLandDevelopmentAndOtherLandLoansMember pb:SubstandardAndNonImpairedMember us-gaap:RealEstateSectorMember 2019-06-30 0001068851 pb:AgricultureAndAgricultureRealEstateIncludesFarmlandMember pb:SubstandardAndNonImpairedMember 2019-06-30 0001068851 pb:FamilyResidential14IncludesHomeEquityMember pb:SubstandardAndNonImpairedMember us-gaap:RealEstateSectorMember 2019-06-30 0001068851 pb:CommercialRealEstateIncludesMultifamilyResidentialMember pb:SubstandardAndNonImpairedMember us-gaap:RealEstateSectorMember 2019-06-30 0001068851 pb:SubstandardAndNonImpairedMember us-gaap:CommercialAndIndustrialSectorMember 2019-06-30 0001068851 pb:SubstandardAndNonImpairedMember pb:ConsumerAndOtherMember 2019-06-30 0001068851 pb:SubstandardAndNonImpairedMember 2019-06-30 0001068851 pb:ConstructionLandDevelopmentAndOtherLandLoansMember pb:SubstandardAndImpairedMember us-gaap:RealEstateSectorMember 2019-06-30 0001068851 pb:AgricultureAndAgricultureRealEstateIncludesFarmlandMember pb:SubstandardAndImpairedMember 2019-06-30 0001068851 pb:FamilyResidential14IncludesHomeEquityMember pb:SubstandardAndImpairedMember us-gaap:RealEstateSectorMember 2019-06-30 0001068851 pb:CommercialRealEstateIncludesMultifamilyResidentialMember pb:SubstandardAndImpairedMember us-gaap:RealEstateSectorMember 2019-06-30 0001068851 pb:SubstandardAndImpairedMember us-gaap:CommercialAndIndustrialSectorMember 2019-06-30 0001068851 pb:SubstandardAndImpairedMember pb:ConsumerAndOtherMember 2019-06-30 0001068851 pb:SubstandardAndImpairedMember 2019-06-30 0001068851 pb:ConstructionLandDevelopmentAndOtherLandLoansMember us-gaap:DoubtfulMember us-gaap:RealEstateSectorMember 2019-06-30 0001068851 pb:AgricultureAndAgricultureRealEstateIncludesFarmlandMember us-gaap:DoubtfulMember 2019-06-30 0001068851 pb:FamilyResidential14IncludesHomeEquityMember us-gaap:DoubtfulMember us-gaap:RealEstateSectorMember 2019-06-30 0001068851 pb:CommercialRealEstateIncludesMultifamilyResidentialMember us-gaap:DoubtfulMember us-gaap:RealEstateSectorMember 2019-06-30 0001068851 us-gaap:DoubtfulMember us-gaap:CommercialAndIndustrialSectorMember 2019-06-30 0001068851 us-gaap:DoubtfulMember pb:ConsumerAndOtherMember 2019-06-30 0001068851 us-gaap:DoubtfulMember 2019-06-30 0001068851 pb:ConstructionLandDevelopmentAndOtherLandLoansMember us-gaap:UnlikelyToBeCollectedFinancingReceivableMember us-gaap:RealEstateSectorMember 2019-06-30 0001068851 pb:AgricultureAndAgricultureRealEstateIncludesFarmlandMember us-gaap:UnlikelyToBeCollectedFinancingReceivableMember 2019-06-30 0001068851 pb:FamilyResidential14IncludesHomeEquityMember us-gaap:UnlikelyToBeCollectedFinancingReceivableMember us-gaap:RealEstateSectorMember 2019-06-30 0001068851 pb:CommercialRealEstateIncludesMultifamilyResidentialMember us-gaap:UnlikelyToBeCollectedFinancingReceivableMember us-gaap:RealEstateSectorMember 2019-06-30 0001068851 us-gaap:UnlikelyToBeCollectedFinancingReceivableMember us-gaap:CommercialAndIndustrialSectorMember 2019-06-30 0001068851 us-gaap:UnlikelyToBeCollectedFinancingReceivableMember pb:ConsumerAndOtherMember 2019-06-30 0001068851 us-gaap:UnlikelyToBeCollectedFinancingReceivableMember 2019-06-30 0001068851 pb:ConstructionLandDevelopmentAndOtherLandLoansMember pb:PciLoansMember us-gaap:RealEstateSectorMember 2019-06-30 0001068851 pb:AgricultureAndAgricultureRealEstateIncludesFarmlandMember pb:PciLoansMember 2019-06-30 0001068851 pb:FamilyResidential14IncludesHomeEquityMember pb:PciLoansMember us-gaap:RealEstateSectorMember 2019-06-30 0001068851 pb:CommercialRealEstateIncludesMultifamilyResidentialMember pb:PciLoansMember us-gaap:RealEstateSectorMember 2019-06-30 0001068851 pb:PciLoansMember us-gaap:CommercialAndIndustrialSectorMember 2019-06-30 0001068851 pb:PciLoansMember pb:ConsumerAndOtherMember 2019-06-30 0001068851 pb:PciLoansMember 2019-06-30 0001068851 us-gaap:InternalInvestmentGradeMember pb:ConstructionLandDevelopmentAndOtherLandLoansMember us-gaap:RealEstateSectorMember 2018-12-31 0001068851 us-gaap:InternalInvestmentGradeMember pb:AgricultureAndAgricultureRealEstateIncludesFarmlandMember 2018-12-31 0001068851 us-gaap:InternalInvestmentGradeMember pb:FamilyResidential14IncludesHomeEquityMember us-gaap:RealEstateSectorMember 2018-12-31 0001068851 us-gaap:InternalInvestmentGradeMember pb:CommercialRealEstateIncludesMultifamilyResidentialMember us-gaap:RealEstateSectorMember 2018-12-31 0001068851 us-gaap:InternalInvestmentGradeMember us-gaap:CommercialAndIndustrialSectorMember 2018-12-31 0001068851 us-gaap:InternalInvestmentGradeMember pb:ConsumerAndOtherMember 2018-12-31 0001068851 us-gaap:InternalInvestmentGradeMember 2018-12-31 0001068851 us-gaap:PrimeMember pb:ConstructionLandDevelopmentAndOtherLandLoansMember us-gaap:RealEstateSectorMember 2018-12-31 0001068851 us-gaap:PrimeMember pb:AgricultureAndAgricultureRealEstateIncludesFarmlandMember 2018-12-31 0001068851 us-gaap:PrimeMember pb:FamilyResidential14IncludesHomeEquityMember us-gaap:RealEstateSectorMember 2018-12-31 0001068851 us-gaap:PrimeMember pb:CommercialRealEstateIncludesMultifamilyResidentialMember us-gaap:RealEstateSectorMember 2018-12-31 0001068851 us-gaap:PrimeMember us-gaap:CommercialAndIndustrialSectorMember 2018-12-31 0001068851 us-gaap:PrimeMember pb:ConsumerAndOtherMember 2018-12-31 0001068851 us-gaap:PrimeMember 2018-12-31 0001068851 pb:Grade3Member pb:ConstructionLandDevelopmentAndOtherLandLoansMember us-gaap:RealEstateSectorMember 2018-12-31 0001068851 pb:Grade3Member pb:AgricultureAndAgricultureRealEstateIncludesFarmlandMember 2018-12-31 0001068851 pb:Grade3Member pb:FamilyResidential14IncludesHomeEquityMember us-gaap:RealEstateSectorMember 2018-12-31 0001068851 pb:Grade3Member pb:CommercialRealEstateIncludesMultifamilyResidentialMember us-gaap:RealEstateSectorMember 2018-12-31 0001068851 pb:Grade3Member us-gaap:CommercialAndIndustrialSectorMember 2018-12-31 0001068851 pb:Grade3Member pb:ConsumerAndOtherMember 2018-12-31 0001068851 pb:Grade3Member 2018-12-31 0001068851 pb:Grade4Member pb:ConstructionLandDevelopmentAndOtherLandLoansMember us-gaap:RealEstateSectorMember 2018-12-31 0001068851 pb:Grade4Member pb:AgricultureAndAgricultureRealEstateIncludesFarmlandMember 2018-12-31 0001068851 pb:Grade4Member pb:FamilyResidential14IncludesHomeEquityMember us-gaap:RealEstateSectorMember 2018-12-31 0001068851 pb:Grade4Member pb:CommercialRealEstateIncludesMultifamilyResidentialMember us-gaap:RealEstateSectorMember 2018-12-31 0001068851 pb:Grade4Member us-gaap:CommercialAndIndustrialSectorMember 2018-12-31 0001068851 pb:Grade4Member pb:ConsumerAndOtherMember 2018-12-31 0001068851 pb:Grade4Member 2018-12-31 0001068851 us-gaap:SpecialMentionMember pb:ConstructionLandDevelopmentAndOtherLandLoansMember us-gaap:RealEstateSectorMember 2018-12-31 0001068851 us-gaap:SpecialMentionMember pb:AgricultureAndAgricultureRealEstateIncludesFarmlandMember 2018-12-31 0001068851 us-gaap:SpecialMentionMember pb:FamilyResidential14IncludesHomeEquityMember us-gaap:RealEstateSectorMember 2018-12-31 0001068851 us-gaap:SpecialMentionMember pb:CommercialRealEstateIncludesMultifamilyResidentialMember us-gaap:RealEstateSectorMember 2018-12-31 0001068851 us-gaap:SpecialMentionMember us-gaap:CommercialAndIndustrialSectorMember 2018-12-31 0001068851 us-gaap:SpecialMentionMember pb:ConsumerAndOtherMember 2018-12-31 0001068851 us-gaap:SpecialMentionMember 2018-12-31 0001068851 pb:SubstandardAndNonImpairedMember pb:ConstructionLandDevelopmentAndOtherLandLoansMember us-gaap:RealEstateSectorMember 2018-12-31 0001068851 pb:SubstandardAndNonImpairedMember pb:AgricultureAndAgricultureRealEstateIncludesFarmlandMember 2018-12-31 0001068851 pb:SubstandardAndNonImpairedMember pb:FamilyResidential14IncludesHomeEquityMember us-gaap:RealEstateSectorMember 2018-12-31 0001068851 pb:SubstandardAndNonImpairedMember pb:CommercialRealEstateIncludesMultifamilyResidentialMember us-gaap:RealEstateSectorMember 2018-12-31 0001068851 pb:SubstandardAndNonImpairedMember us-gaap:CommercialAndIndustrialSectorMember 2018-12-31 0001068851 pb:SubstandardAndNonImpairedMember pb:ConsumerAndOtherMember 2018-12-31 0001068851 pb:SubstandardAndNonImpairedMember 2018-12-31 0001068851 pb:SubstandardAndImpairedMember pb:ConstructionLandDevelopmentAndOtherLandLoansMember us-gaap:RealEstateSectorMember 2018-12-31 0001068851 pb:SubstandardAndImpairedMember pb:AgricultureAndAgricultureRealEstateIncludesFarmlandMember 2018-12-31 0001068851 pb:SubstandardAndImpairedMember pb:FamilyResidential14IncludesHomeEquityMember us-gaap:RealEstateSectorMember 2018-12-31 0001068851 pb:SubstandardAndImpairedMember pb:CommercialRealEstateIncludesMultifamilyResidentialMember us-gaap:RealEstateSectorMember 2018-12-31 0001068851 pb:SubstandardAndImpairedMember us-gaap:CommercialAndIndustrialSectorMember 2018-12-31 0001068851 pb:SubstandardAndImpairedMember pb:ConsumerAndOtherMember 2018-12-31 0001068851 pb:SubstandardAndImpairedMember 2018-12-31 0001068851 us-gaap:DoubtfulMember pb:ConstructionLandDevelopmentAndOtherLandLoansMember us-gaap:RealEstateSectorMember 2018-12-31 0001068851 us-gaap:DoubtfulMember pb:AgricultureAndAgricultureRealEstateIncludesFarmlandMember 2018-12-31 0001068851 us-gaap:DoubtfulMember pb:FamilyResidential14IncludesHomeEquityMember us-gaap:RealEstateSectorMember 2018-12-31 0001068851 us-gaap:DoubtfulMember pb:CommercialRealEstateIncludesMultifamilyResidentialMember us-gaap:RealEstateSectorMember 2018-12-31 0001068851 us-gaap:DoubtfulMember us-gaap:CommercialAndIndustrialSectorMember 2018-12-31 0001068851 us-gaap:DoubtfulMember pb:ConsumerAndOtherMember 2018-12-31 0001068851 us-gaap:DoubtfulMember 2018-12-31 0001068851 us-gaap:UnlikelyToBeCollectedFinancingReceivableMember pb:ConstructionLandDevelopmentAndOtherLandLoansMember us-gaap:RealEstateSectorMember 2018-12-31 0001068851 us-gaap:UnlikelyToBeCollectedFinancingReceivableMember pb:AgricultureAndAgricultureRealEstateIncludesFarmlandMember 2018-12-31 0001068851 us-gaap:UnlikelyToBeCollectedFinancingReceivableMember pb:FamilyResidential14IncludesHomeEquityMember us-gaap:RealEstateSectorMember 2018-12-31 0001068851 us-gaap:UnlikelyToBeCollectedFinancingReceivableMember pb:CommercialRealEstateIncludesMultifamilyResidentialMember us-gaap:RealEstateSectorMember 2018-12-31 0001068851 us-gaap:UnlikelyToBeCollectedFinancingReceivableMember us-gaap:CommercialAndIndustrialSectorMember 2018-12-31 0001068851 us-gaap:UnlikelyToBeCollectedFinancingReceivableMember pb:ConsumerAndOtherMember 2018-12-31 0001068851 us-gaap:UnlikelyToBeCollectedFinancingReceivableMember 2018-12-31 0001068851 pb:PciLoansMember pb:ConstructionLandDevelopmentAndOtherLandLoansMember us-gaap:RealEstateSectorMember 2018-12-31 0001068851 pb:PciLoansMember pb:AgricultureAndAgricultureRealEstateIncludesFarmlandMember 2018-12-31 0001068851 pb:PciLoansMember pb:FamilyResidential14IncludesHomeEquityMember us-gaap:RealEstateSectorMember 2018-12-31 0001068851 pb:PciLoansMember pb:CommercialRealEstateIncludesMultifamilyResidentialMember us-gaap:RealEstateSectorMember 2018-12-31 0001068851 pb:PciLoansMember us-gaap:CommercialAndIndustrialSectorMember 2018-12-31 0001068851 pb:PciLoansMember pb:ConsumerAndOtherMember 2018-12-31 0001068851 pb:PciLoansMember 2018-12-31 0001068851 pb:ConstructionLandDevelopmentAndOtherLandLoansMember us-gaap:RealEstateSectorMember 2019-03-31 0001068851 pb:AgricultureAndAgricultureRealEstateIncludesFarmlandMember 2019-03-31 0001068851 pb:FamilyResidential14IncludesHomeEquityMember us-gaap:RealEstateSectorMember 2019-03-31 0001068851 pb:CommercialRealEstateIncludesMultifamilyResidentialMember us-gaap:RealEstateSectorMember 2019-03-31 0001068851 us-gaap:CommercialAndIndustrialSectorMember 2019-03-31 0001068851 pb:ConsumerAndOtherMember 2019-03-31 0001068851 pb:ConstructionLandDevelopmentAndOtherLandLoansMember us-gaap:RealEstateSectorMember 2019-04-01 2019-06-30 0001068851 pb:AgricultureAndAgricultureRealEstateIncludesFarmlandMember 2019-04-01 2019-06-30 0001068851 pb:FamilyResidential14IncludesHomeEquityMember us-gaap:RealEstateSectorMember 2019-04-01 2019-06-30 0001068851 pb:CommercialRealEstateIncludesMultifamilyResidentialMember us-gaap:RealEstateSectorMember 2019-04-01 2019-06-30 0001068851 us-gaap:CommercialAndIndustrialSectorMember 2019-04-01 2019-06-30 0001068851 pb:ConsumerAndOtherMember 2019-04-01 2019-06-30 0001068851 pb:ConstructionLandDevelopmentAndOtherLandLoansMember us-gaap:RealEstateSectorMember 2018-03-31 0001068851 pb:AgricultureAndAgricultureRealEstateIncludesFarmlandMember 2018-03-31 0001068851 pb:FamilyResidential14IncludesHomeEquityMember us-gaap:RealEstateSectorMember 2018-03-31 0001068851 pb:CommercialRealEstateIncludesMultifamilyResidentialMember us-gaap:RealEstateSectorMember 2018-03-31 0001068851 us-gaap:CommercialAndIndustrialSectorMember 2018-03-31 0001068851 pb:ConsumerAndOtherMember 2018-03-31 0001068851 pb:ConstructionLandDevelopmentAndOtherLandLoansMember us-gaap:RealEstateSectorMember 2018-04-01 2018-06-30 0001068851 pb:AgricultureAndAgricultureRealEstateIncludesFarmlandMember 2018-04-01 2018-06-30 0001068851 pb:FamilyResidential14IncludesHomeEquityMember us-gaap:RealEstateSectorMember 2018-04-01 2018-06-30 0001068851 pb:CommercialRealEstateIncludesMultifamilyResidentialMember us-gaap:RealEstateSectorMember 2018-04-01 2018-06-30 0001068851 us-gaap:CommercialAndIndustrialSectorMember 2018-04-01 2018-06-30 0001068851 pb:ConsumerAndOtherMember 2018-04-01 2018-06-30 0001068851 pb:ConstructionLandDevelopmentAndOtherLandLoansMember us-gaap:RealEstateSectorMember 2018-06-30 0001068851 pb:AgricultureAndAgricultureRealEstateIncludesFarmlandMember 2018-06-30 0001068851 pb:FamilyResidential14IncludesHomeEquityMember us-gaap:RealEstateSectorMember 2018-06-30 0001068851 pb:CommercialRealEstateIncludesMultifamilyResidentialMember us-gaap:RealEstateSectorMember 2018-06-30 0001068851 us-gaap:CommercialAndIndustrialSectorMember 2018-06-30 0001068851 pb:ConsumerAndOtherMember 2018-06-30 0001068851 pb:ConstructionLandDevelopmentAndOtherLandLoansMember us-gaap:RealEstateSectorMember 2017-12-31 0001068851 pb:AgricultureAndAgricultureRealEstateIncludesFarmlandMember 2017-12-31 0001068851 pb:FamilyResidential14IncludesHomeEquityMember us-gaap:RealEstateSectorMember 2017-12-31 0001068851 pb:CommercialRealEstateIncludesMultifamilyResidentialMember us-gaap:RealEstateSectorMember 2017-12-31 0001068851 us-gaap:CommercialAndIndustrialSectorMember 2017-12-31 0001068851 pb:ConsumerAndOtherMember 2017-12-31 0001068851 pb:ConstructionLandDevelopmentAndOtherLandLoansMember us-gaap:RealEstateSectorMember 2018-01-01 2018-06-30 0001068851 pb:AgricultureAndAgricultureRealEstateIncludesFarmlandMember 2018-01-01 2018-06-30 0001068851 pb:FamilyResidential14IncludesHomeEquityMember us-gaap:RealEstateSectorMember 2018-01-01 2018-06-30 0001068851 pb:CommercialRealEstateIncludesMultifamilyResidentialMember us-gaap:RealEstateSectorMember 2018-01-01 2018-06-30 0001068851 us-gaap:CommercialAndIndustrialSectorMember 2018-01-01 2018-06-30 0001068851 pb:ConsumerAndOtherMember 2018-01-01 2018-06-30 0001068851 pb:TroubledDebtRestructuringMember 2019-06-30 0001068851 pb:TroubledDebtRestructuringMember 2018-06-30 pb:contract 0001068851 us-gaap:USStatesAndPoliticalSubdivisionsMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2019-06-30 0001068851 us-gaap:USStatesAndPoliticalSubdivisionsMember us-gaap:FairValueMeasurementsRecurringMember 2019-06-30 0001068851 us-gaap:CollateralizedMortgageObligationsMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2019-06-30 0001068851 us-gaap:CollateralizedMortgageObligationsMember us-gaap:FairValueMeasurementsRecurringMember 2019-06-30 0001068851 us-gaap:MortgageBackedSecuritiesMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2019-06-30 0001068851 us-gaap:MortgageBackedSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2019-06-30 0001068851 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2019-06-30 0001068851 us-gaap:FairValueMeasurementsRecurringMember 2019-06-30 0001068851 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member us-gaap:USStatesAndPoliticalSubdivisionsMember 2018-12-31 0001068851 us-gaap:FairValueMeasurementsRecurringMember us-gaap:USStatesAndPoliticalSubdivisionsMember 2018-12-31 0001068851 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member us-gaap:CollateralizedMortgageObligationsMember 2018-12-31 0001068851 us-gaap:FairValueMeasurementsRecurringMember us-gaap:CollateralizedMortgageObligationsMember 2018-12-31 0001068851 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member us-gaap:MortgageBackedSecuritiesMember 2018-12-31 0001068851 us-gaap:FairValueMeasurementsRecurringMember us-gaap:MortgageBackedSecuritiesMember 2018-12-31 0001068851 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member 2018-12-31 0001068851 us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0001068851 us-gaap:CarryingReportedAmountFairValueDisclosureMember 2019-06-30 0001068851 us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:FairValueInputsLevel1Member 2019-06-30 0001068851 us-gaap:EstimateOfFairValueFairValueDisclosureMember 2019-06-30 0001068851 us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:FairValueInputsLevel2Member 2019-06-30 0001068851 us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:FairValueInputsLevel3Member 2019-06-30 0001068851 us-gaap:CarryingReportedAmountFairValueDisclosureMember 2018-12-31 0001068851 us-gaap:FairValueInputsLevel1Member us-gaap:EstimateOfFairValueFairValueDisclosureMember 2018-12-31 0001068851 us-gaap:EstimateOfFairValueFairValueDisclosureMember 2018-12-31 0001068851 us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember 2018-12-31 0001068851 us-gaap:FairValueInputsLevel3Member us-gaap:EstimateOfFairValueFairValueDisclosureMember 2018-12-31 0001068851 srt:MinimumMember 2019-01-01 2019-06-30 0001068851 srt:MaximumMember 2019-01-01 2019-06-30 pb:Plan 0001068851 pb:StockIncentive2012PlanMember 2012-12-31 0001068851 pb:StockIncentive2012PlanMember 2019-01-01 2019-06-30 0001068851 us-gaap:RestrictedStockMember 2019-04-01 2019-06-30 0001068851 us-gaap:RestrictedStockMember 2018-04-01 2018-06-30 0001068851 us-gaap:RestrictedStockMember 2019-01-01 2019-06-30 0001068851 us-gaap:RestrictedStockMember 2018-01-01 2018-06-30 0001068851 pb:FederalHomeLoanBankAdvancesAndNotesPayableMember 2019-06-30 0001068851 us-gaap:GuaranteeObligationsMember us-gaap:StandbyLettersOfCreditMember 2019-06-30 0001068851 us-gaap:FinancialGuaranteeMember us-gaap:GuaranteeObligationsMember 2019-06-30 0001068851 us-gaap:GuaranteeObligationsMember 2019-06-30 0001068851 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2018-12-31 0001068851 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2019-01-01 2019-06-30 0001068851 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2019-06-30 0001068851 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2017-12-31 0001068851 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2018-01-01 2018-06-30 0001068851 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2018-06-30 pb:Location 0001068851 pb:LegacyTexasFinancialGroupIncMember pb:NorthTexasMember 2019-06-17 2019-06-17 pb:City 0001068851 pb:LegacyTexasFinancialGroupIncMember 2019-06-30 0001068851 pb:LegacyTexasFinancialGroupIncMember 2019-06-17 2019-06-17 0001068851 2019-06-14 0001068851 pb:LegacyTexasFinancialGroupIncMember 2019-06-13 2019-06-14 0001068851 pb:LegacyTexasFinancialGroupIncMember 2019-06-14

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2019

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE TRANSITION PERIOD FROM              TO             

COMMISSION FILE NUMBER: 001-35388

 

PROSPERITY BANCSHARES, INC.®

(Exact name of registrant as specified in its charter)

 

 

TEXAS

74-2331986

(State or other jurisdiction

of incorporation or organization)

(I.R.S. Employer

Identification No.)

 

Prosperity Bank Plaza

 

4295 San Felipe, Houston, Texas

77027

(Address of principal executive offices)

(Zip Code)

 

(281) 269-7199

(Registrant’s telephone number, including area code)

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading Symbol(s)

 

Name of each exchange on which registered

Common stock, par value $1.00 per share

 

PB

 

New York Stock Exchange, Inc.

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definitions of “accelerated filer”, “large accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act:

 

Large Accelerated Filer

 

Accelerated Filer

 

 

 

 

 

Non-accelerated Filer

 

Smaller Reporting Company

 

 

 

 

 

 

 

 

Emerging Growth Company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  

As of July 30, 2019, there were 69,053,368 outstanding shares of the registrant’s Common Stock, par value $1.00 per share.  

 

 

 


 

PROSPERITY BANCSHARES, INC.® AND SUBSIDIARIES

INDEX TO FORM 10-Q

 

PART I—FINANCIAL INFORMATION

 

 

 

 

Item 1.

Financial Statements

3

 

Consolidated Balance Sheets as of June 30, 2019 (unaudited) and December 31, 2018

3

 

Consolidated Statements of Income for the Three and Six Months Ended June 30, 2019 and 2018 (unaudited)

4

 

Consolidated Statements of Comprehensive Income for the Three and Six Months Ended June 30, 2019 and 2018 (unaudited)

5

 

Consolidated Statements of Changes in Shareholders’ Equity for the Three and Six Months Ended June 30, 2019 and 2018 (unaudited)

6

 

Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2019 and 2018 (unaudited)

7

 

Notes to Consolidated Financial Statements (unaudited)

8

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

32

Item 3.

Quantitative and Qualitative Disclosures about Market Risk

53

Item 4.

Controls and Procedures

53

 

 

PART II—OTHER INFORMATION

 

 

 

 

Item 1.

Legal Proceedings

55

Item 1A.

Risk Factors

55

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

55

Item 3.

Defaults Upon Senior Securities

55

Item 4.

Mine Safety Disclosures

55

Item 5.

Other Information

55

Item 6.

Exhibits

56

Signatures

57

 

 

 

2


 

PART I—FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

PROSPERITY BANCSHARES, INC.® AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

 

 

June 30,

 

 

December 31,

 

 

 

2019

 

 

2018

 

 

 

(unaudited)

 

 

 

 

 

 

 

(Dollars in thousands, except par value)

 

ASSETS

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

302,069

 

 

$

410,575

 

Federal funds sold

 

 

555

 

 

 

552

 

Total cash and cash equivalents

 

 

302,624

 

 

 

411,127

 

Available for sale securities, at fair value

 

 

306,777

 

 

 

84,155

 

Held to maturity securities, at cost (fair value of $8,656,409 and $9,081,236, respectively)

 

 

8,645,163

 

 

 

9,324,811

 

Total securities

 

 

8,951,940

 

 

 

9,408,966

 

Loans held for sale

 

 

20,315

 

 

 

29,367

 

Loans held for investment

 

 

10,567,060

 

 

 

10,340,946

 

Total loans

 

 

10,587,375

 

 

 

10,370,313

 

Less: allowance for credit losses

 

 

(87,006

)

 

 

(86,440

)

Loans, net

 

 

10,500,369

 

 

 

10,283,873

 

Accrued interest receivable

 

 

57,382

 

 

 

56,532

 

Goodwill

 

 

1,900,845

 

 

 

1,900,845

 

Core deposit intangibles, net

 

 

30,299

 

 

 

32,883

 

Bank premises and equipment, net

 

 

262,479

 

 

 

257,046

 

Other real estate owned

 

 

2,005

 

 

 

1,805

 

Bank owned life insurance (BOLI)

 

 

261,372

 

 

 

260,335

 

Federal Home Loan Bank of Dallas stock

 

 

56,459

 

 

 

55,959

 

Other assets

 

 

49,447

 

 

 

24,031

 

TOTAL ASSETS

 

$

22,375,221

 

 

$

22,693,402

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

LIABILITIES:

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

Noninterest-bearing

 

$

5,691,236

 

 

$

5,666,115

 

Interest-bearing

 

 

11,196,393

 

 

 

11,590,443

 

Total deposits

 

 

16,887,629

 

 

 

17,256,558

 

Other borrowings

 

 

940,874

 

 

 

1,031,126

 

Securities sold under repurchase agreements

 

 

313,825

 

 

 

284,720

 

Accrued interest payable

 

 

5,171

 

 

 

4,201

 

Other liabilities

 

 

99,827

 

 

 

63,973

 

Total liabilities

 

 

18,247,326

 

 

 

18,640,578

 

COMMITMENTS AND CONTINGENCIES

 

 

 

 

 

 

SHAREHOLDERS’ EQUITY:

 

 

 

 

 

 

 

 

Preferred stock, $1 par value; 20,000,000 shares authorized; none issued or outstanding

 

 

 

 

 

 

Common stock, $1 par value; 200,000,000 shares authorized; 69,261,431 shares issued and outstanding at June 30, 2019; 69,846,825 shares issued and outstanding at December 31, 2018

 

 

69,261

 

 

 

69,847

 

Capital surplus

 

 

2,012,665

 

 

 

2,045,351

 

Retained earnings

 

 

2,044,696

 

 

 

1,937,316

 

Accumulated other comprehensive income —net unrealized gain on available for sale securities, net of tax expense of $338 and $82, respectively

 

 

1,273

 

 

 

310

 

Total shareholders’ equity

 

 

4,127,895

 

 

 

4,052,824

 

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

 

$

22,375,221

 

 

$

22,693,402

 

 

 

See notes to consolidated financial statements.

 

3


 

PROSPERITY BANCSHARES, INC.® AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

 

 

(Dollars in thousands, except per share data)

 

INTEREST INCOME:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, including fees

 

$

133,525

 

 

$

128,445

 

 

$

263,590

 

 

$

244,691

 

Securities

 

 

53,944

 

 

 

55,577

 

 

 

109,592

 

 

 

110,034

 

Federal funds sold and other earning assets

 

 

318

 

 

 

299

 

 

 

720

 

 

 

614

 

Total interest income

 

 

187,787

 

 

 

184,321

 

 

 

373,902

 

 

 

355,339

 

INTEREST EXPENSE:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

26,562

 

 

 

16,061

 

 

 

51,690

 

 

 

30,533

 

Other borrowings

 

 

5,556

 

 

 

6,046

 

 

 

10,873

 

 

 

9,019

 

Securities sold under repurchase agreements

 

 

831

 

 

 

411

 

 

 

1,590

 

 

 

761

 

Total interest expense

 

 

32,949

 

 

 

22,518

 

 

 

64,153

 

 

 

40,313

 

NET INTEREST INCOME

 

 

154,838

 

 

 

161,803

 

 

 

309,749

 

 

 

315,026

 

PROVISION FOR CREDIT LOSSES

 

 

800

 

 

 

4,000

 

 

 

1,500

 

 

 

13,000

 

NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES

 

 

154,038

 

 

 

157,803

 

 

 

308,249

 

 

 

302,026

 

NONINTEREST INCOME:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonsufficient funds (NSF) fees

 

 

7,973

 

 

 

7,828

 

 

 

15,789

 

 

 

15,655

 

Credit card, debit card and ATM card income

 

 

6,480

 

 

 

6,335

 

 

 

12,451

 

 

 

12,296

 

Service charges on deposit accounts

 

 

4,989

 

 

 

5,150

 

 

 

9,987

 

 

 

10,425

 

Trust income

 

 

2,558

 

 

 

2,251

 

 

 

5,153

 

 

 

4,979

 

Mortgage income

 

 

990

 

 

 

1,109

 

 

 

1,712

 

 

 

1,872

 

Brokerage income

 

 

541

 

 

 

687

 

 

 

1,214

 

 

 

1,312

 

Gain (loss) on sale of assets

 

 

2

 

 

 

(44

)

 

 

60

 

 

 

(44

)

Net loss on sale of securities

 

 

 

 

 

(13

)

 

 

 

 

 

(13

)

Other

 

 

6,425

 

 

 

5,068

 

 

 

11,736

 

 

 

9,827

 

Total noninterest income

 

 

29,958

 

 

 

28,371

 

 

 

58,102

 

 

 

56,309

 

NONINTEREST EXPENSE:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

52,941

 

 

 

53,360

 

 

 

104,014

 

 

 

103,759

 

Net occupancy and equipment

 

 

5,492

 

 

 

5,692

 

 

 

10,958

 

 

 

11,301

 

Credit and debit card, data processing and software amortization

 

 

4,904

 

 

 

4,356

 

 

 

9,477

 

 

 

8,804

 

Regulatory assessments and FDIC insurance

 

 

2,325

 

 

 

3,575

 

 

 

4,699

 

 

 

7,150

 

Core deposit intangibles amortization

 

 

1,265

 

 

 

1,501

 

 

 

2,584

 

 

 

3,069

 

Depreciation

 

 

3,111

 

 

 

3,054

 

 

 

6,215

 

 

 

6,087

 

Communications

 

 

2,183

 

 

 

2,606

 

 

 

4,453

 

 

 

5,186

 

Other real estate expense, net

 

 

66

 

 

 

93

 

 

 

(28

)

 

 

304

 

Other

 

 

8,534

 

 

 

9,365

 

 

 

17,020

 

 

 

17,996

 

Total noninterest expense

 

 

80,821

 

 

 

83,602

 

 

 

159,392

 

 

 

163,656

 

INCOME BEFORE INCOME TAXES

 

 

103,175

 

 

 

102,572

 

 

 

206,959

 

 

 

194,679

 

PROVISION FOR INCOME TAXES

 

 

20,917

 

 

 

20,975

 

 

 

42,299

 

 

 

38,721

 

NET INCOME

 

$

82,258

 

 

$

81,597

 

 

$

164,660

 

 

$

155,958

 

EARNINGS PER SHARE:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

1.18

 

 

$

1.17

 

 

$

2.36

 

 

$

2.23

 

Diluted

 

$

1.18

 

 

$

1.17

 

 

$

2.36

 

 

$

2.23

 

 

See notes to consolidated financial statements.

 

4


 

PROSPERITY BANCSHARES, INC.® AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(UNAUDITED)

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

 

 

(Dollars in thousands)

 

Net income

 

$

82,258

 

 

$

81,597

 

 

$

164,660

 

 

$

155,958

 

Other comprehensive income, before tax:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Securities available for sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in unrealized gain during the period

 

 

716

 

 

 

380

 

 

 

1,219

 

 

 

580

 

Total other comprehensive income

 

 

716

 

 

 

380

 

 

 

1,219

 

 

 

580

 

Deferred taxes related to other comprehensive income

 

 

(150

)

 

 

(80

)

 

 

(256

)

 

 

(122

)

Other comprehensive income, net of tax

 

 

566

 

 

 

300

 

 

 

963

 

 

 

458

 

Comprehensive income

 

$

82,824

 

 

$

81,897

 

 

$

165,623

 

 

$

156,416

 

 

See notes to consolidated financial statements.

 

 

5


 

PROSPERITY BANCSHARES, INC.® AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

(UNAUDITED)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

Total

 

 

 

Common Stock

 

 

Capital

 

 

Retained

 

 

Comprehensive

 

 

Shareholders’

 

 

 

Shares

 

 

Amount

 

 

Surplus

 

 

Earnings

 

 

Income

 

 

Equity

 

 

 

(In thousands, except share and per share data)

 

Three Months Ended

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BALANCE AT MARCH 31, 2019

 

 

69,845,925

 

 

$

69,846

 

 

$

2,048,156

 

 

$

1,991,081

 

 

$

707

 

 

$

4,109,790

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

82,258

 

 

 

 

 

 

 

82,258

 

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

566

 

 

 

566

 

Common stock issued in connection with the issuance of restricted stock awards, net

 

 

14,334

 

 

 

14

 

 

 

(14

)

 

 

 

 

 

 

 

 

 

 

 

Common stock repurchase

 

 

(598,828

)

 

 

(599

)

 

 

(37,822

)

 

 

 

 

 

 

 

 

 

 

(38,421

)

Stock based compensation expense

 

 

 

 

 

 

 

 

 

 

2,345

 

 

 

 

 

 

 

 

 

 

 

2,345

 

Cash dividends declared, $0.41 per share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(28,643

)

 

 

 

 

 

 

(28,643

)

BALANCE AT JUNE 30, 2019

 

 

69,261,431

 

 

$

69,261

 

 

$

2,012,665

 

 

$

2,044,696

 

 

$

1,273

 

 

$

4,127,895