Prosperity Bancshares (PB) 8-K Other Events

Exhibit 99.1

SELECTED CONSOLIDATED FINANCIAL DATA

The following selected consolidated financial data for, and as of the end of, each of the years in the five-year period ended December 31, 2003 are derived from and should be read in conjunction with the Company’s consolidated financial statements and the notes thereto and the information contained in “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.” The consolidated financial statements as of December 31, 2003 and 2002 and for each of the years in the three-year period ended December 31, 2003 and the report thereon of Deloitte & Touche LLP are included elsewhere in this document. The historical financial data of the Company has been restated to include the accounts and operations of Commercial Bancshares, Inc. for all periods prior to February 23, 2001. All per share data for 2002 and prior years has been restated to include the two-for-one stock split effective May 31, 2002.

	As of and for the Years Ended December 31,
	2003			2002			2001			2000			1999
	(Dollars in thousands, except per share data)
Income Statement Data:
Interest income	$	90,845		$	80,742		$	76,520		$	70,079		$	56,458
Interest expense		26,346			28,101			37,410			36,751			26,336
Net interest income		64,499			52,641			39,110			33,328			30,122
Provision for credit losses		483			1,010			700			275			420
Net interest income after provision for credit losses		64,016			51,631			38,410			33,053			29,702
Noninterest income		16,966			11,594			8,635			7,796			6,156
Noninterest expense		42,021			32,349			28,715	(1)		25,616			21,680
Income before taxes		38,961			30,876			18,330	(1)		15,233			14,178
Provision for income taxes		12,413			9,555			5,372	(1)		4,532			4,747
Net income.	$	26,548		$	21,321		$	12,958	(1)	$	10,701		$	9,431
Per Share Data(2):
Basic earnings per share	$	1.38		$	1.25		$	0.80	(3)	$	0.67		$	0.59
Diluted earnings per share		1.36			1.22			0.79	(3)		0.65			0.58
Book value per share		10.49			8.19			5.47			4.98			4.32
Cash dividends declared		0.25			0.22			0.195			0.18			0.10
Dividend payout ratio		18.29	%		18.13	%		24.39	%		25.75	%		19.10	%
Weighted average shares outstanding (basic) (in thousands)		20,046			17,122			16,172			16,064			15,972
Weighted average shares outstanding (diluted) (in thousands)		20,357			17,442			16,498			16,454			16,408
Shares outstanding at end of period (in thousands)		20,930			18,896			16,210			16,144			15,990
Balance Sheet Data (at period end):
Total assets	$	2,400,487		$	1,823,286		$	1,263,169		$	1,146,520		$	1,028,011
Securities		1,376,880			950,317			752,322			586,952			514,983
Loans		770,053			679,559			424,400			411,203			366,803
Allowance for credit losses		10,345			9,580			5,985			5,523			5,031
Total deposits		2,083,748			1,586,611			1,123,397			1,033,546			878,589
Borrowings and notes payable		30,936			37,939			18,080			13,931			53,119
Total shareholders’ equity		219,588			154,739			88,725			80,333			69,025
Junior subordinated debentures		59,804	(4)		34,030			27,844			12,380			12,380
Average Balance Sheet Data:
Total assets	$	2,006,869		$	1,470,758		$	1,191,783		$	1,046,262		$	875,829
Securities		1,108,153			818,362			666,241			550,431			465,788
Loans		697,235			524,885			419,553			383,054			319,178
Allowance for credit losses		9,525			7,350			5,586			5,245			4,272
Total deposits		1,749,045			1,300,884			1,061,195			920,526			767,879
Total shareholders’ equity		170,167			114,234			85,319			72,952			64,911
Junior subordinated debentures		39,400	(4)		29,648			19,468			12,380			1,548

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	As of and for the Years Ended December 31,
	2003		2002		2001		2000		1999
	(Dollars in thousands, except per share data)
Performance Ratios:
Return on average assets	1.32	%	1.45	%	1.09	%(5)	1.02	%	1.08	%
Return on average equity	15.60		18.66		15.19	(5)	14.67		14.53
Net interest margin (tax-equivalent)(6)	3.64		4.00		3.71		3.56		3.74
Efficiency ratio(7)	51.58		50.36		60.14	(5)	62.29		59.29
Asset Quality Ratios(8):
Nonperforming assets to total loans and other real estate	0.13	%	0.38	%	0.00	%	0.32	%	0.34	%
Net loan charge-offs (recoveries) to average loans	0.23		0.08		0.06		(0.04	)	(0.11	)
Allowance for credit losses to total loans	1.34		1.41		1.41		1.34		1.37
Allowance for credit losses to nonperforming loans(9)	1,115.97		408.53		n/m	(10)	700.89		657.65
Capital Ratios(8):
Leverage ratio	7.10	%	6.56	%	7.57	%	6.17	%	6.17	%
Average shareholders’ equity to average total assets	8.52		8.52		7.16		6.98		7.41
Tier 1 risk-based capital ratio	15.82		14.10		18.34		13.80		13.89
Total risk-based capital ratio	16.90		15.30		19.52		14.93		15.74

(1) Certain income statement data for the year ended December 31, 2001 includes the merger-related expenses of $2.4 million, net of tax.

(2) Adjusted for a two-for one stock split effective May 31, 2002.

(3) Earnings per share amounts for the year ended December 31, 2001 include the merger-related expenses of $2.4 million.

(4) Consists of $12.4 million of junior subordinated debentures issued to Prosperity Capital Trust I due November 12, 2029, $15.5 million of junior subordinated debentures issued to Prosperity Statutory Trust II due July 31, 2031, $6.2 million of junior subordinated debentures issued to Paradigm Capital Trust II due February 20, 2031, $12.9 million of junior subordinated debentures issued to Prosperity Statutory Trust III due September 17, 2033 and $12.9 million of junior subordinated debentures issued to Prosperity Statutory Trust IV due December 30, 2033.

(5) Selected performance ratios for the year ended December 31, 2001 include the merger-related expenses of $2.4 million.

(6) Calculated on a tax-equivalent basis using a 35% federal income tax rate for the years ended December 31, 2003, 2002 and 2001 and a 34% federal income tax rate for the years ended December 31, 1999 and 2000.

(7) Calculated by dividing total noninterest expense, excluding securities losses and credit loss provisions, by net interest income plus noninterest income. Additionally, taxes are not part of this calculation.

(8) At period end, except for net loan charge-offs to average loans and average shareholders’ equity to average total assets, which is for periods ended at such dates.

(9) Nonperforming loans consist of nonaccrual loans, loans contractually past due 90 days or more, restructured loans and any other loan management deems to be nonperforming.

(10) Amount not meaningful. Nonperforming assets totaled $1,000 at December 31, 2001.

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