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Guys quite a few bakers on our show threw out the suppose -- financial disaster that we're living through.
Tell us that businesses -- just fine thank you very much this morning prosperity bank reported another -- quarter of profitability and we are joined now by David Salman.
CEO of Prosperity Bancshares thanks for joining us David.
-- an open platform a little details a little bit about the quarter you know the underlying fundamentals here in the near term.
Thank you -- Indiana for having me today.
As you mentioned earlier.
We're in Texas and banking still looks pretty -- Our nonperforming loans to total loans -- total assets.
Our point 26%.
Which is extremely low compared to our peer groups it probably or somewhere about one.
And a half percent we also.
He showed very strong the risk based capital of over 14%.
The tier one and could leverage ratio let me ask him this way in other words cash is flowing business was fine -- weren't floating everything.
Think that's really is the upshot but the people at home -- to know.
-- You know I I lived through the eighties and -- bank lifting the eighties where we had a bank that -- going down almost every every Friday that.
It's not like that over here I think that in Texas at least I think we're lucky to be in Texas.
Via the economy seems to be much better if there's any confidence or lack of confidence it's probably more so from watching the national news but.
Here is it the economy -- get arguably that -- job growth and that -- population growth.
We created 6700 jobs in August 252000.
Jobs over the last year 2.4 percent increase.
I mean it having said that yes you're right it's advice that in perspective arrogant that you know -- You've experienced a lot of the baking industry I understand that you actually started your career as a cashier maybe you can give us some you know context and perspective at least from what you've seen that different now.
Compared so when you started in the in the business.
You know it.
You can say it's a lot different I don't think it's a lot different for us I mean we're just applying Vanilla bank and we we really.
We watch our expenses we take in deposits.
And we make loans and and that's the key we never really got involved.
With a more esoteric products like the CDOs are these.
SI neither credit default swaps are sub prime.
Lending and we don't -- we don't you know -- shared national credits so I think you can make it is complicated -- you want a you can make it as simple if you want.
We kept it very simple and that's not that our success is because of that.
While this is all the we've had a lot of small community bankers not saying a bit their businesses just find out.
You know odds I'm trying to figure out is this because you're in the middle America you're in Texas you're not on the coast where we see such fluctuation of price.
Or is it in fact -- that you just never got involved in some of these more mortgage backed securities.
And credit derivatives that you mentioned that why didn't she get involved in those -- so profitable.
Well two things one we're living in it obviously living in Texas and -- Economy is so much better than probably the rest of the US.
The number -- you could've still been in Texas and still got involved with the sub prime lending.
-- the CEO's the SIVs and in if you did that you would still be in the same shape as as some of the banks that that are on the East Coast right now so.
You know -- you -- is still being Texas still had a lot of problems he would have gone into that kind of stuff but it wasn't it wasn't the right thing to do you know David gets plugged right thing today.
David you mentioned that tell you don't Texas has a better economy and say these appear in the northeast where we've had a bunch of -- nine year old MBAs coming up with all these fancy derivatives -- it.
The products have destroyed our economy.
Are you concerned about the downturn in oil and perhaps -- -- taxes is about to take an economic can itself.
Oil at a 13840.
Dollars was too high when I was in new York and we get -- we went from we have a lot of people we talked to and get our -- shows.
A year ago like I mention I think it oil would probably go down somewhere between 65 and 85 dollars.
And I think that's OK I don't think -- any I'm not in the oil business I don't think that any oil company really is drilled any thing.
Anticipating -- price more than 65 dollars so.
-- on the other hand it it got so crazy here in the in Houston market for example commercial real estate prices for example.
And a couple of buildings if you were -- Taipei building.
You're kind problem late last time -- at least three or four years ago maybe 25 or 26 dollars per square for the year.
Who recently they've gone up as high as 3839.
Dollars and you know I think a lot of it is because of the bubble of the oil business creating so much oil prices going so -- so.
I -- kind of look at this as a good thing it's it's it's stopping a bubble before it really happens here in Texas not I'm I'm worn by over where it is right now.
I had stated that Davis Love -- Prosperity Bancshares thank you for joining expect keep it simple just not direct.
I believe he --
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