Prosperity Bancshares Q3 2024 10-Q Filed

TL;DR

**PROSPERITY BANCSHARES INC (PB) FILED ITS Q3 2024 10-Q. FINANCIALS DETAILED.**

AI Summary

Prosperity Bancshares, Inc. filed its 10-Q for the period ending September 30, 2024. The filing details financial performance and positions, including various asset and liability classifications. Specific data points relate to interest rate lock commitments, guarantee obligations, and the classification of financial assets, with some data extending back to January 1, 2023, and others as of September 30, 2024.

Why It Matters

This filing provides investors and analysts with the latest financial health and operational details of Prosperity Bancshares, Inc., crucial for understanding its performance and future outlook.

Risk Assessment

Risk Level: low — The filing is a standard quarterly report and does not contain immediate red flags or significant negative news.

Key Numbers

• 20240930 — Period End Date (The end of the reporting quarter for this 10-Q filing.)
• 20241107 — Filing Date (The date this 10-Q was officially submitted to the SEC.)

Key Players & Entities

• PROSPERITY BANCSHARES INC (company) — Filer of the 10-Q
• 7136939300 (dollar_amount) — Business phone number
• 20240930 (date) — Conformed period of report
• 20241107 (date) — Filed as of date

FAQ

Key Financial Figures

• $1.00 — ch registered Common stock, par value $1.00 per share PB New York Stock Exchang

Filing Documents

• pb-20240930.htm (10-Q) — 6219KB
• pb-ex31_1.htm (EX-31.1) — 13KB
• pb-ex31_2.htm (EX-31.2) — 14KB
• pb-ex32_1.htm (EX-32.1) — 6KB
• pb-ex32_2.htm (EX-32.2) — 6KB
• 0000950170-24-123332.txt ( ) — 25032KB
• pb-20240930.xsd (EX-101.SCH) — 1729KB
• pb-20240930_htm.xml (XML) — 7318KB

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements 3 Consolidated Balance Sheets as of September 30, 2024 (unaudited) and December 31, 2023 3 Consolidated Statements of Income for the Three and Nine Months Ended September 30, 2024 and 2023 (unaudited) 4 Consolidated Statements of Comprehensive Income for the Three and Nine Months Ended September 30, 2024 and 2023 (unaudited) 5 Consolidated Statements of Changes in Shareholders' Equity for the Three and Nine Months Ended September 30, 2024 and 2023 (unaudited) 6 Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2024 and 2023 (unaudited) 7

Notes to Consolidated Financial Statements (unaudited)

Notes to Consolidated Financial Statements (unaudited) 8 Item 2.

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 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 61 Item 4.

Controls and Procedures

Controls and Procedures 61

—OTHER INFORMATION

PART II—OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 62 Item 1A.

Risk Factors

Risk Factors 62 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 62 Item 3. Defaults Upon Senior Securities 62 Item 4. Mine Safety Disclosures 62 Item 5. Other Information 62 Item 6. Exhibits 63

—FINANCI AL INFORMATION

PART I—FINANCI AL INFORMATION

FINANCI AL STATEMENTS

ITEM 1. FINANCI AL STATEMENTS PROSPERITY BANCSHARES, INC. AND SUBSIDIARIES CONSOLIDATED B ALANCE SHEETS September 30, December 31, 2024 2023 (unaudited) (Dollars in thousands, except par value) ASSETS Cash and due from banks $ 2,209,863 $ 458,153 Federal funds sold 208 260 Total cash and cash equivalents 2,210,071 458,413 Available for sale securities, at fair value 331,414 438,588 Held to maturity securities, at cost (fair value of $ 9,964,060 and $ 10,984,598 , respectively) 10,969,342 12,365,308 Total securities 11,300,756 12,803,896 Loans held for sale 6,113 5,734 Loans held for investment 21,146,033 20,352,559 Loans held for investment - Warehouse Purchase Program 1,228,706 822,245 Total loans 22,380,852 21,180,538 Less: allowance for credit losses on loans ( 354,397 ) ( 332,362 ) Loans, net 22,026,455 20,848,176 Accrued interest receivable 107,534 96,327 Goodwill 3,504,388 3,396,086 Core deposit intangibles, net 70,178 63,994 Bank premises and equipment, net 373,812 369,992 Other real estate owned 5,757 1,708 Bank owned life insurance (BOLI) 384,228 379,447 Federal Home Loan Bank of Dallas stock 10,184 8,750 Other assets 121,957 121,088 TOTAL ASSETS $ 40,115,320 $ 38,547,877 LIABILITIES AND SHAREHOLDERS' EQUITY LIABILITIES: Deposits: Noninterest-bearing $ 9,811,361 $ 9,776,572 Interest-bearing 18,276,250 17,403,237 Total deposits 28,087,611 27,179,809 Other borrowings 3,900,000 3,725,000 Securities sold under repurchase agreements 228,896 309,277 Subordinated debentures — — Accrued interest payable 174,229 34,819 Allowance for credit losses on off-balance sheet credit exposures 37,646 36,503 Other liabilities 325,689 183,139 Total liabilities 32,754,071 31,468,547 COMMITMENTS AND CONTINGENCIES — — SHAREHOLDERS' EQUITY: Preferred

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER 30, 2024 (UNAUDITED) 1. BASIS OF PRESENTATION The consolidated financial statements include the accounts of Prosperity Bancshares, Inc. ("Bancshares") and its wholly-owned subsidiary, Prosperity Bank (the "Bank," and together with Bancshares, the "Company"). All intercompany transactions and balances have been eliminated. The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for financial information and with the rules and regulations of the Securities and Exchange Commission ("SEC"). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the statements reflect all adjustments necessary for a fair presentation of the financial position, results of operations and cash flows of the Company on a consolidated basis; and all such adjustments are of a normal recurring nature. These financial statements and the notes thereto should be read in conjunction with the Company's Annual Report on Form 10-K for the year ended December 31, 2023. Operating results for the nine-month period ended September 30, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024 or any other period. 2. INCOME PER COMMON SHARE The following table illustrates the computation of basic and diluted earnings per share: Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Amount Per Share Amount Amount Per Share Amount Amount Per Share Amount Amount Per Share Amount (Amounts in thousands, except per share data) Net income $ 127,282 $ 112,208 $ 349,310 $ 323,840 Basic: Weighted average shares outstanding 95,261 $ 1.34 93,720 $ 1.20 94,912 $ 3.68 92,628 $ 3.50 Diluted: Weighted averag

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER 30, 2024 (UNAUDITED) December 15, 2024, with early adoption permitted. An entity may apply the amendments in this ASU prospectively by providing the revised disclosures for the period ending December 31, 2025 and continuing to provide the pre-ASU disclosures for the prior periods, or may apply the amendments retrospectively by providing the revised disclosures for all period presented. The Company does not expect ASU 2023-09 to have an impact on its financial statements. ASU 2023-07, Segment Reporting (Topic 280)—Improvement to Reportable Segment Disclosures . ASU 2023-07 amends the disclosure requirements related to segment reporting primarily through enhanced disclosure about significant segment expenses and by requiring disclosure of segment information on an annual and interim basis. The amendments in this update are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company does not expect ASU 2023-07 to have a significant impact on its financial statements. ASU 2023-06, Disclosure Improvements—Codification Amendments in Response to the SEC's Disclosure Update and Simplification Initiative. ASU 2023-06 amends the FASB Accounting Standards Codification to incorporate certain disclosure requirements from SEC Release No. 33-10532 - Disclosure Update and Simplification that was issued in 2018. The effective date for each amendment will be the date on which the SEC's removal of that related disclosure from Regulation S-X or Regulation S-K becomes effective, with early adoption prohibited. The Company does not expect ASU 2023-06 to have a significant impact on its financial statements. ASU 2022-02, Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. The amendments in ASU 2022-02 eliminated the accounting guidance for troubled debt restr

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER 30, 2024 (UNAUDITED) December 31, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Dollars in thousands) Available for Sale Corporate debt securities $ 20,698 $ 1,827 $ ( 738 ) $ 21,787 Collateralized mortgage obligations 321,881 967 ( 2,804 ) 320,044 Mortgage-backed securities 97,779 96 ( 1,118 ) 96,757 Total $ 440,358 $ 2,890 $ ( 4,660 ) $ 438,588 Held to Maturity U.S. Treasury securities and obligations of U.S. Government agencies $ 7,631 $ — $ ( 52 ) $ 7,579 116,497 1,864 ( 2,306 ) 116,055 Corporate debt securities 12,000 — ( 4,200 ) 7,800 Collateralized mortgage obligations 263,250 — ( 20,864 ) 242,386 Mortgage-backed securities 11,965,930 2,131 ( 1,357,283 ) 10,610,778 Total $ 12,365,308 $ 3,995 $ ( 1,384,705 ) $ 10,984,598 The investment securities portfolio is measured for expected credit losses by segregating the portfolio into two general classifications and applying the appropriate expected credit losses methodology. Investment securities classified as available for sale or held to maturity are evaluated for expected credit losses under FASB ASC 326 , "Financial Instruments – Credit Losses." Available for sale securities . For available for sale securities in an unrealized loss position, the amount of the expected credit losses recognized in earnings depends on whether an entity intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis less any current-period credit loss. If an entity intends to sell or more likely than not will be required to sell the security before recovery of its amortized cost basis less any current-period credit loss, the expected credit losses will be recognized in ear

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