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Prosperity Bancshares CEO on Loan Growth

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    Prosperity Bancshares CEO David Zalman on the bank’s strong growth over the last year.

  • Duration 4:37
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Regional banks are moving higher.

After delivering strong earnings Prosperity Bancshares as actually getting hit today there is the stock -- down more than 3% the company recently named.

America's best bank in the stock is in the -- right now consider the fourth quarter numbers beat expectations what's going up let's bring -- The chairman of the CEO David -- he joins me now in a fox visited could just.

Houston Texas and the quarterly report you -- on the top and bottom last fiscal year.

It's a good question Cheryl this -- and then the best here that we ever hand.

We had had net earnings of 169.

Million.

Compared to a 141.

Million last year about 19% increase our assets and -- 49 person so loans and to longs -- grew over a billion for.

-- deposits and they had a 44% increase in that so.

We had a look you know a lot of -- so it's it's probably -- you ever had in earnings per share.

-- three dollars and 23 cents compared to 301.

Last year about a seven point 3% increase has -- -- -- -- -- ever handle them.

Yeah what do you make of this I mean do you think that the street is misunderstandings some think is -- something and -- it.

And up violating that they.

-- -- -- -- No -- you know our.

Our stock is probably held up better than a lot of our competitors over the years if you look at what we -- -- -- As a percentage of tangible book we probably trade at a higher premium than anybody else.

When you look at our earnings -- what what we -- -- -- earnings per share were probably a good stock especially with the stock down today.

You know -- -- forward earnings and where you know we're probably cheaper than a lot of our peer groups.

-- -- this thing they weren't good they'll take notice like that all right you know what thank notice -- talk about margin compression that's actually been a big concern for many regional banks not just yours.

Obviously with the yield curve with a problem is here is that.

The end of the loans -- -- deposits are overtaking.

Deposits are far outpacing -- demand what's going on -- loan demand and know that you -- mostly small and medium businesses are they not.

Coming in that door is -- a credit quality issue what's happening.

Well we wait there's -- thanks happening -- -- we had.

Actually loan growth year over year.

We we've had -- loan -- our organic loan growth really meaning loan growth excluding acquisitions we -- up over a 6%.

Six point 2% loan growth.

One of the things that were -- is happening we're actually producing.

More loans.

Every month than we ever have before.

On the other side of the -- line.

We are seeing more payday loans than we've ever seen before so.

You have to dynamics working here I think in the third quarter of last year we saw a lot people skeptical businessman about borrowing when -- go out taking chances.

Yeah and -- Sharon what's gonna happen via our -- that the fourth quarter and fourth quarter thanks -- said well.

You know we've got this new administration when you like it or not here it is and they did go out so I think things are looking.

Okay -- like the forecast -- that you talked about Eminem we need you've announced six acquisitions -- completed five acquisitions in the past fifteen months.

One more -- -- Is it anymore and -- an activity for you are you looking around you think you're gonna have more acquisitions in 2013.

-- -- Well let me say.

The answer to that is yes but I do -- -- that and saying you know we -- from.

Nine point eight billion dollars in 2011.

C today fourteen and a half billion not counting.

Our two most recent acquisitions that we're over a billion dollars so.

Our first and foremost is to my share.

That the operational integration of banks that we've done our dead and the people -- happy.

You know the biggest the biggest thing you can do an -- it in in acquiring somebody else -- merging with somebody else is messing up on the operational integration so.

That's our first focus.

The second thing I would say is yes there's going to be.

We we are being asked.

To consider a lot of different deals that a lot different times so fair I think there will be a lot of -- there'll be a lot of -- going on.

Work we're careful what we're doing that thing going forward -- the regulatory and other regulatory burdens and everything -- you're seeing.

The net interest margin for decreasing I think you're gonna see more -- -- a lot less banks.

-- -- managers say oh well I I -- I dot think you're right on that would David down and Prosperity Bancshares chairman CEO David thank you very much got really great quarter for you thank you David.

-- for having me the.

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