Friday, Prosperity Bancshares, Inc.(PRSP), a regional financial holding company, reported a rise in second-quarter earnings that topped analysts' estimates, as a sharp increase in average earning assets drove up net interest income.
Net income for the quarter advanced more than 13% to $26.51 million from $23.44 million in the same period last year. Earnings per share rose to $0.57 from $0.52 per share in the year-ago quarter and exceeded the average estimate of $0.50 per share projected by fourteen analysts polled by Thomson Reuters. Analysts' estimates typically exclude special items.
Net interest income, before provision for credit losses, increased 39.9% to $75.52 million from $53.97 million in the year-ago quarter primarily due to a 40.8% increase in average earning assets mainly due to the Franklin Bank transaction.
Provisions for credit losses were $6.9 million compared to $1 million in the year-ago quarter.
Non-interest income increased 15.8% to $15.13 million from $13.1 million for the same period in 2008 primarily due to an increase in service charges on deposit accounts related to accounts assumed from the FDIC as part of the Franklin Bank transaction.
Non-interest expense increased 43.6% to $44.3 million due to increased expenses related to operating the additional banking offices that were acquired in the Franklin Bank transaction and increased FDIC insurance premiums.
Non-performing assets totaled $19.59 million or 0.26% of average earning assets at June 30, 2009 compared with $11.65 million or 0.22% of average earning assets at June 30, 2008. The allowance for credit losses was 1.23% of total loans at June 30, 2009 compared with 1.03% at June 30, 2008.
Total loans increased to $3.45 billion as of June 30, 2009 from $3.31 billion as of June 30, 2008. Total deposits as of June 2009 rose to $7.303 billion from $5.104 billion as of June 30, 2008.
For the six-month period, net income rose to $51.9 million or $1.13 per share from $46.4 million or $1.04 per share in the same period last year. Net interest income before provision for credit losses rose to $149.599 million from $105.966 million during the same period in 2008. Non-interest income increased to $30.150 million from $25.745 million in the year-ago period.
Porsperity also said that the expected full-year 2009 FDIC insurance premium, excluding any one-time assessments, is currently projected to be between $8.0 million and $9.0 million. Additionally, the FDIC imposed an emergency special assessment as of June 30, 2009, which will total about $4.2 million in pre-tax expense or $0.06 per share after tax. Prosperity's FDIC insurance premium cost for 2008 was approximately $1.4 million.
PRSP closed Thursday's regular trading session at $30.15.
For comments and feedback contact: editorial@rttnews.com
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.