Prosperity Bancshares Inc. in Houston reported on Friday third-quarter income of $36.4 million, up about 13% from the same period a year earlier, due to strong loan growth and a decline in problem assets. Earnings per share rose 12%, to 77 cents, beating consensus analysts' estimates by a penny, according to Thomson Reuters.
The $9.6 billion-asset company said that loans grew 9.5% compared with the third quarter of 2010, to $3.7 billion, and at an annualized rate of 7.9% on a linked quarter basis. Nonperforming assets totaled $13.4 million, down about 35% from a year ago but up about 5% from the second quarter. The drop from last year was aided by an almost 61% decline in nonperforming commercial real estate assets.
A research note from Sandler O'Neill & Partners L.P. stated that Prosperity's results were strong despite a $1 million decline in total revenues stemming from pressure on net interest income. Prosperity's shares were up 3.6% at midday Friday, to $37.07.
