Prosperity Bancshares, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Prosperity Bancshares, Inc. has submitted its comprehensive 2023 annual report (10-K), detailing financial performance and operational status.</b>

AI Summary

PROSPERITY BANCSHARES INC (PB) filed a Annual Report (10-K) with the SEC on February 28, 2024. Prosperity Bancshares, Inc. filed its 2023 Form 10-K on February 28, 2024. The filing covers the fiscal year ending December 31, 2023. Key financial data points and disclosures are included for the reporting period. The company is incorporated in Texas and operates under SIC code 6022 (State Commercial Banks). The filing details various financial assets, liabilities, and commitments as of December 31, 2023.

Why It Matters

For investors and stakeholders tracking PROSPERITY BANCSHARES INC, this filing contains several important signals. This 10-K filing provides stakeholders with a detailed overview of the company's financial health, risk exposures, and strategic positioning for the fiscal year 2023. Investors and analysts can use this report to assess the bank's performance against its peers and make informed investment decisions based on specific financial metrics and disclosures.

Risk Assessment

Risk Level: medium — PROSPERITY BANCSHARES INC shows moderate risk based on this filing. The company's 10-K filing contains numerous disclosures related to financial instruments, loan portfolios, and fair value measurements, indicating a complex financial structure and potential market sensitivities.

Analyst Insight

Review the detailed breakdown of loan portfolio segments and fair value disclosures to understand potential credit and market risks.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-02-28 — Filing Date (Date of submission)
• 6022 — SIC Code (Standard Industrial Classification)
• TX — State of Incorporation (Legal domicile)

Key Players & Entities

• PROSPERITY BANCSHARES INC (company) — Filer name
• PB (company) — Ticker symbol
• 2024-02-28 (date) — Filing date
• 2023-12-31 (date) — Fiscal year end
• 4295 SAN FELIPE STREET (address) — Business address
• HOUSTON (location) — Business address city
• TX (location) — Business address state
• 77027 (postal_code) — Business address zip

FAQ

Industry Context

Prosperity Bancshares, Inc. operates within the commercial banking sector, providing a range of financial services to individuals and businesses.

Regulatory Implications

As a commercial bank, the company is subject to regulations from various federal and state authorities, including the Federal Reserve and state banking departments.

What Investors Should Do

1. Analyze the company's loan portfolio composition and risk ratings.
2. Examine disclosures related to fair value measurements and interest rate sensitivity.
3. Review any identified risk factors and management's mitigation strategies.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K filing.
• 2024-02-28: Filing Date — Date the 10-K was officially submitted to the SEC.

Year-Over-Year Comparison

This filing represents the annual 10-K for the fiscal year ended December 31, 2023, providing a comprehensive update compared to previous filings.

Key Financial Figures

• $1.00 — ch registered Common stock, par value $1.00 per share PB New York Stock Exchang
• $2.14 b — lidated basis, reported total assets of $2.14 billion, total loans of $1.65 billion and
• $1.65 billion — assets of $2.14 billion, total loans of $1.65 billion and total deposits of $1.71 billion.
• $1.71 billion — of $1.65 billion and total deposits of $1.71 billion. 1 Pursuant to the terms of the def
• $91.5 million — s of its common stock and approximately $91.5 million in cash for all outstanding shares of F
• $164.5 million — 023, the Company recognized goodwill of $164.5 million which does not include all the subseque
• $1.37 b — lidated basis, reported total assets of $1.37 billion, total loans of $1.08 billion and
• $1.08 billion — assets of $1.37 billion, total loans of $1.08 billion and total deposits of $1.21 billion.
• $1.21 billion — of $1.08 billion and total deposits of $1.21 billion. Under the terms of the definitive ag
• $64.1 million — 376,182 shares of its common stock plus $64.1 million in cash for all outstanding shares of L
• $69.27 — price of the Company's common stock of $69.27 on October 7, 2022, the total considera
• $228.7 million — nsideration was valued at approximately $228.7 million. The transaction is subject to customar
• $2.67 b — t department maintained total assets of $2.67 billion, including managed assets of $2.2
• $2.26 billion — 67 billion, including managed assets of $2.26 billion. The trust department provides trust se
• $21.18 billion — folios. Loans at December 31, 2023 were $21.18 billion compared with $18.84 billion at Decembe

Filing Documents

• pb-20231231.htm (10-K) — 7833KB
• pb-ex21_1.htm (EX-21.1) — 22KB
• pb-ex23_1.htm (EX-23.1) — 3KB
• pb-ex31_1.htm (EX-31.1) — 12KB
• pb-ex31_2.htm (EX-31.2) — 12KB
• pb-ex32_1.htm (EX-32.1) — 5KB
• pb-ex32_2.htm (EX-32.2) — 5KB
• pb-ex97_1.htm (EX-97.1) — 43KB
• img93383481_0.jpg (GRAPHIC) — 225KB
• 0000950170-24-022171.txt (&nbsp;) — 32234KB
• pb-20231231.xsd (EX-101.SCH) — 2508KB
• pb-20231231_htm.xml (XML) — 8727KB

Business

Business 1 General 1 Recent Acquisition 1 Pending Acquisition 2 Available Information 2 Human Capital 2 Banking Activities 3 Business Strategies 4 Competition 5 Supervision and Regulation 5 Item 1A.

Risk Factors

Risk Factors 15 Item 1B. Unresolved Staff Comments 29 Item 1C. Cybersecurity 29 Item 2.

Properties

Properties 31 Item 3.

Legal Proceedings

Legal Proceedings 31 Item 4. Mine Safety Disclosures 31 PART II Item 5. Market for Registrant's Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities 32 Item 6. [Reserved] 34 Item 7.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 35 Overview 36 Recent Acquisition 37 Pending Acquisition 37 Critical Accounting Estimates 38 Results of Operations 39 Financial Condition 46 Item 7A.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 70 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 70 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 71 Item 9A.

Controls and Procedures

Controls and Procedures 71 Item 9B. Other Information 74 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 74 PART III Item 10. Directors, Executive Officers and Corporate Governance 74 Item 11.

Executive Compensation

Executive Compensation 74 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters 74 Item 13. Certain Relationships and Related Transactions and Director Independence 74 Item 14. Principal Accountant Fees and Services 74 PART IV Item 15. Exhibits and Financial Statement Schedules 75

Signatures

Signatures 78 PAR T I

BUSINESS

ITEM 1. BUSINESS Gene ral Prosperity Bancshares, Inc. , a Texas corporation (the "Company"), was formed in 1983 as a vehicle to acquire the former Allied Bank in Edna, Texas, which was chartered in 1949 as The First National Bank of Edna and is now known as Prosperity Bank. The Company is a registered financial holding company that derives substantially all of its revenues and income from the operation of its bank subsidiary, Prosperity Bank ("Prosperity Bank " or the "Bank"). The Bank provides a wide array of financial products and services to businesses and consumers throughout Texas and Oklahoma. As of December 31, 2023, the Bank operated 285 full service banking locations: 65 in the Houston area, including The Woodlands; 30 in the South Texas area including Corpus Christi and Victoria; 62 in the Dallas/Fort Worth area; 22 in the East Texas area; 32 in the Central Texas area including Austin and San Antonio; 44 in the West Texas area including Lubbock, Midland-Odessa, Abilene; Amarillo and Wichita Falls; 16 in the Bryan/College Station area, 6 in the Central Oklahoma area; and 8 in the Tulsa, Oklahoma area. The Company's principal executive office is located at Prosperity Bank Plaza, 4295 San Felipe in Houston, Texas and its telephone number is (281) 269-7199. The Company's website address is www.prosperitybankusa.com. The Company's market consists of the communities served by its banking centers. The diverse nature of the economies in each local market served by the Company provides the Company with a varied customer base and allows the Company to spread its lending risk throughout a number of different industries including professional service firms and their principals, manufacturing, tourism, recreation, petrochemicals, farming and ranching. The Company's market areas outside of Houston, Dallas, Corpus Christi, San Antonio, Lubbock, Austin, Tulsa and Oklahoma City are dominated by either small community banks or branches of larger regional banks. Manage

View Full Filing

View this 10-K filing on SEC EDGAR