Prosperity Bancshares of Houston reported a 35% increase in fourth-quarter income, but SNB Bancshares Inc., the Sugar Land, Tex., company it is buying for $243 million, was not as successful.
SNB reported a $7.3 million loss it attributed largely to the sale of $205 million of low-yielding investment securities; it recorded a $5.3 million charge as a result of the sale. For 2004's fourth quarter the $1.1 billion-asset company reported a $1.45 million profit.
Both companies reported earnings Friday.
The $3.5 billion-asset Prosperity said it earned $12.6 million in the quarter.
It was helped by its March 1 acquisition of the $761 million-asset First Capital Bankers Inc. in Corpus Christi and its Dec. 1 acquisition of the $73 million-asset Grapeland Bancshares Inc. of Grapeland, Tex.
For the year Prosperity's earnings rose 38%, to $47.9 million. SNB reported a $5 million loss; for 2004 it reported a $5.9 million profit.
Prosperity expects to complete its acquisition of SNB in the second quarter.
