Prosperity Bancshares in Houston reported a sharp decline in deposits during the first quarter that it attributed to public funds.
The $37.8 billion-asset company said in a press release that deposits fell by 5.4% from the fourth quarter and 13.1% from a year earlier, to $27 billion.
Prosperity said the total reflected a decline in business demand deposits and public fund deposits.
The company’s loan-to-deposit ratio was 70.4% on March 31.
The net interest margin compressed by 13 basis points from the fourth quarter and widened by 5 basis points from a year earlier, to 2.93%.
Net income rose by 2% from a year earlier, to $124.7 million, reflecting higher revenue and relatively flat expenses.