Prosperity Bancshares' profit took a hit in the third quarter from lower yields on loans and higher expenses.
Net income at the $21 billion-asset company in Houston fell 3% to $69 million from a year earlier.
Net interest income rose 1% to $152 million. Loans rose 4% to $9.5 billion; the average yield on loans fell 25 basis points to 4.82%. Prosperity's investment securities portfolio fell 6% to $8.9 billion; the average yield on investment securities rose 9 basis points to 2.08%.
Prosperity increased lending in commercial real estate, construction and residential mortgages. It reduced its exposure to energy loans by 24% to $309 million.
Noninterest income fell 7% to $30 million on lower revenue from bounced-check fees and brokerage income.
Noninterest expense rose 4% to $79 million on higher salaries and on costs tied to credit and debit cards, data processing and software amortization.