Prosperity Bancshares (PB) in Houston ended a year in which it completed five deals and announced another with a jump in profit.
Prosperity reported Friday that its fourth-quarter profit rose 33% from the prior-year period, to $48.2 million. Per-share earnings of 86 cents were 2 cents higher than the expectations of analysts polled by Bloomberg.
The main driver was an increase in Prosperity's asset base. Its total assets grew 49% in 2012, to $14.6 billion, as the company bought five Texas banks.
Prosperity's quarterly net interest income rose 35%, to $108.3 million, compared with the fourth quarter of 2011. Net interest margin declined by 29 basis points, to 3.53%. Prosperity's provision for loan loss rose by more than $2 million, to $3.6 million, while chargeoffs declined by 8%, to $1.9 million.
The bank's noninterest income rose 71%, to $24.1 million, because of higher revenue from overdrafts, cards, mortgage banking, trusts and insurance.
Prosperity's noninterest expense rose 48%, to $57 million, mainly on a $10 million rise in salary and benefit costs.
Prosperity bought East Texas Financial Services, Community National Bank, American State Bank, The Bank Arlington and Texas Bankers. Last month, Prosperity announced that it had agreed to buy Coppermark Bancshares of Oklahoma City for $194 million; it would be Prosperity's first expansion beyond Texas.
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