Prosperity Bancshares (PB) has reported 2.76 percent fall in profit for the quarter ended Sep. 30, 2016. The company has earned $68.65 million, or $0.99 a share in the quarter, compared with $70.60 million, or $1.01 a share for the same period last year. Revenue during the quarter went down marginally by 0.45 percent to $181.75 million from $182.58 million in the previous year period. Net interest income for the quarter dropped 1.31 percent over the prior year period to $154.06 million. Non-interest income for the quarter fell 6.60 percent over the last year period to $29.68 million.
Prosperity Bancshares has made provision of $2 million for loan losses during the quarter, down 62.34 percent from $5.31 million in the same period last year.
Net interest margin contracted 1 basis points to 3.29 percent in the quarter from 3.30 percent in the last year period. Efficiency ratio for the quarter deteriorated to 43.26 percent from 40.72 percent in the previous year period. A rise in efficiency ratio suggests a fall in profitability.
"I am pleased to share the positive earnings we had for the third quarter of 2016. We showed impressive annualized returns on third quarter average tangible common equity of 16.79% and on third quarter average assets of 1.27%. I am also excited to announce that our Board raised the dividend to $0.34 per share for the fourth quarter 2016, an increase of 13.33%. The increased dividend reflects the continued confidence we have in our company," said David Zalman, Prosperitys chairman and chief executive officer.
Assets, liabilities fallTotal assets stood at $21,404.04 million as on Sep. 30, 2016, down 0.76 percent compared with $21,567.24 million on Sep. 30, 2015. On the other hand, total liabilities stood at $17,809.23 million as on Sep. 30, 2016, down 1.91 percent from $18,156 million on Sep. 30, 2015. Deposits stood at $16,921.41 million as on Sep. 30, 2016, down 0.11 percent compared with $16,939.94 million on Sep. 30, 2015.
Loans to deposits ratio was 56.40 percent for the quarter, up from 54.30 percent for the previous year quarter.
Noninterest-bearing deposit liabilities were $5,159.33 million or 30.49 percent of total deposits on Sep. 30, 2016, compared with $5,093.18 million or 30.07 percent of total deposits on Sep. 30, 2015.
Investments stood at $8,988.02 million as on Sep. 30, 2016, down 5.69 percent or $542.74 million from year-ago. Shareholders equity stood at $3,594.81 million as on Sep. 30, 2016, up 5.38 percent or $183.57 million from year-ago.
Return on average assets moved down 3 basis points to 1.27 percent in the quarter from 1.30 percent in the last year period. At the same time, return on average equity decreased 65 basis points to 7.66 percent in the quarter from 8.31 percent in the last year period.
Nonperforming assets moved up 23.73 percent or $11.54 million to $60.17 million on Sep. 30, 2016 from $48.63 million on Sep. 30, 2015.
Capital ratios improveProsperity Bancshares recorded an improvement in capital ratios during the quarter. Tier-1 leverage ratio stood at 8.50 percent for the quarter, up from 7.65 percent for the previous year quarter. Equity to assets ratio was 16.80 percent for the quarter, up from 15.82 percent for the previous year quarter. Book value per share was $51.74 for the quarter, up 6.24 percent or $3.04 compared to $48.70 for the same period last year.
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