Prosperity Bancshares Inc. in Houston said Friday that its third-quarter earnings declined 35% from a year earlier, to $15.4 million, as a result of the steep decline in the value of its investments in Fannie Mae and Freddie Mac preferred stock.
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Prosperity took a $9.1 million after-tax impairment charge on the preferred shares, which have lost much of their value since the government took control of Fannie and Freddie. Excluding the impairment charge, Prosperity posted earnings of $24.6 million.
Three acquisitions since September of last year helped total loans rise 3.9%, to $3.2 billion, and deposits rise 6.7%, to $5.1 billion.
