Prosperity Bancshares 3Q Profit Rises 90 Percent

HOUSTON (AP) — Prosperity Bancshares Inc. said Friday that its third-quarter profit rose 90 percent as it expanded its loan portfolio with the purchase of Franklin Bank from the FDIC.

Prosperity is the parent company of Prosperity Bank, which operates 158 branches in Texas.

The Houston-based bank holding company earned $29.3 million, or 63 cents per share, for the quarter that ended Sept. 30. That is up from $15.4 million, or 33 cents per share, it earned a year earlier, when its results were dragged down by a $9.1 million write-down in the value of Fannie Mae and Freddie Mac perpetual preferred securities.

In the most recent quarter, Prosperity beat a 61 cent per share prediction of analysts polled by Thomson Reuters.

The company said net interest income rose 34 percent to $77.4 million from $57.8 million due to the assumption of certain deposits and acquisition of certain assets of Franklin Bank.

The acquisition of those assets also raised its noninterest income by 16 percent to $15.2 million from $13.1 million as it had higher service charges on deposit accounts.

Prosperity shares added 45 cents to $35.56 in afternoon trading Friday.