Prosperity Bancshares (PB) 8-K/A Results of Operations and Financial Condition

Exhibit 99.1

Prosperity Bancshares, Inc. ^®

Revised Financial Highlights

(Dollars and share amounts in thousands, except per share data)

	Three Months Ended				Twelve Months Ended
	Dec 31, 2007		Dec 31, 2006		Dec 31, 2007		Dec 31, 2006
Selected Earnings and Per	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Share Data
Total interest income	$	85,441	$	62,893	$	340,608	$	231,739
Total interest expense		33,807		26,487		140,173		93,594
Net interest income		51,634		36,406		200,435		138,145
Provision for credit losses		120		144		760		504
Net interest income after provision for credit losses		51,514		36,262		199,675		137,641
Total non-interest income		13,248		8,241		52,923		33,982
Total non-interest expense		39,413		19,192		126,843		77,669
Net income before taxes		25,349		25,311		125,755		93,954
Provision for federal income taxes		8,268		8,709		41,604		32,229
Net income	$	17,081	$	16,602	$	84,151	$	61,725
Basic earnings per share	$	0.39	$	0.51	$	1.96	$	1.96
Diluted earnings per share	$	0.38	$	0.50	$	1.94	$	1.94
Period end shares outstanding		44,151		32,793		44,151		32,793
Weighted average shares outstanding (basic)		44,133		32,791		42,928		31,491
Weighted average shares outstanding (diluted)		44,420		33,199		43,310		31,893

Prosperity Bancshares, Inc.^®

Revised Financial Highlights

(Dollars in thousands)

	Three Months Ended				Twelve Months Ended
	Dec 31, 2007		Dec 31, 2006		Dec 31, 2007		Dec 31, 2006
Income Statement Data	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Interest on loans	$	61,682	$	43,741	$	247,600	$	157,426
Interest on securities		22,446		18,034		89,467		72,632
Interest on federal funds sold and other earning assets		1,313		1,118		3,541		1,681
Total interest income		85,441		62,893		340,608		231,739
Interest expense—deposits		30,354		23,455		122,682		80,942
Interest expense—debentures		2,206		2,095		10,058		7,592
Interest expense—other		1,247		937		7,433		5,060
Total interest expense		33,807		26,487		140,173		93,594
Net interest income(B)		51,634		36,406		200,435		138,145
Provision for credit losses		120		144		760		504
Net interest income after provision for credit losses		51,514		36,262		199,675		137,641
Service charges on deposit accounts		11,029		6,769		40,937		27,379
Net gain on sale of assets		85		44		819		622
Brokered mortgage income		105		178		679		839
Net gain on sale of securities		28		0		86		0
Net gain on sale of held for sale loans		132		0		1,334		0
Other non-interest income		1,869		1,250		9,068		5,142
Total non-interest income		13,248		8,241		52,923		33,982
Salaries and benefits(C)		15,747		10,103		63,910		41,298
CDI amortization		2,620		1,253		9,917		4,869
Net occupancy and equipment		2,775		2,070		10,534		7,884
Depreciation		1,955		1,281		7,611		5,048
Data processing and software amortization		1,123		884		4,570		3,612
Impairment write down on securities		9,975		0		9,975		0
Other non-interest expense		5,218		3,601		20,326		14,958
Total non-interest expense		39,413		19,192		126,843		77,669
Net income before taxes		25,349		25,311		125,755		93,954
Federal income taxes		8,268		8,709		41,604		32,229
Net income available to common shareholders	$	17,081	$	16,602	$	84,151	$	61,725

^(B) Net interest income on a tax equivalent basis would be $52,467 and $36,891 for the three months ended December 31, 2007 and December 31, 2006, respectively, and $203,554 and $139,961 for the twelve months ended December 31, 2007 and December 31, 2006, respectively.

^(C) Salaries and benefits includes equity compensation expenses of $477 and $244 for the three months ended December 31, 2007 and December 31, 2006, respectively, and $1,968 and $850 for the twelve months ended December 31, 2007 and December 31, 2006, respectively.

Prosperity Bancshares, Inc.^®

Revised Financial Highlights

(Dollars and share amounts in thousands, except per share data)

	Three Months Ended				Twelve Months Ended
	Dec 31, 2007		Dec 31, 2006		Dec 31, 2007		Dec 31, 2006
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Common Share and Other Data
Employees—FTE		1,359		908		1,359		908
Book value per share	$	25.54	$	20.26	$	25.54	$	20.26
Tangible book value per share	$	7.42	$	6.62	$	7.42	$	6.62
Period end shares outstanding		44,151		32,793		44,151		32,793
Weighted average shares outstanding (basic)		44,133		32,791		42,928		31,491
Weighted average shares outstanding (diluted)		44,420		33,199		43,310		31,893
Non-accrual loans	$	1,035	$	181	$	1,035	$	181
Accruing loans 90 or more days past due		4,092		767		4,092		767
Restructured loans		0		0		0		0
Total non-performing loans		5,127		948		5,127		948
Repossessed assets		56		32		56		32
Other real estate		10,207		140		10,207		140
Total non-performing assets	$	15,390	$	1,120	$	15,390	$	1,120
Allowance for credit losses at end of period	$	32,543	$	23,990	$	32,543	$	23,990
Net charge-offs	$	3,113	$	247	$	5,593	$	771
Basic earnings per share	$	0.39	$	0.51	$	1.96	$	1.96
Diluted earnings per share	$	0.38	$	0.50	$	1.94	$	1.94

Prosperity Bancshares, Inc.^®

Revised Financial Highlights

	Three Months Ended						Twelve Months Ended
	Dec 31, 2007			Dec 31, 2006			Dec 31, 2007			Dec 31, 2006
Performance Ratios	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Return on average assets (annualized)		1.11	%		1.47	%		1.38	%		1.44	%
Return on average common equity (annualized)		6.09	%		10.08	%		8.09	%		10.24	%
Return on average tangible common equity (annualized)		28.73	%		31.64	%		32.34	%		31.53	%
Net interest margin (tax equivalent) (annualized)		4.12	%		3.79	%		4.06	%		3.80	%
Efficiency ratio(D)		45.45	%		43.03	%		46.29	%		45.29	%
Asset Quality Ratios
Non-performing assets to average earning assets		0.30	%		0.03	%		0.31	%		0.03	%
Non-performing assets to loans and other real estate		0.49	%		0.05	%		0.49	%		0.05	%
Net charge-offs to average loans		0.10	%		0.01	%		0.18	%		0.04	%
Allowance for credit losses to total loans		1.04	%		1.10	%		1.04	%		1.10	%
Common Stock Market Price
High	$	35.07		$	35.38		$	37.11		$	36.16
Low	$	28.18		$	32.54		$	27.70		$	28.50
Period end market price	$	29.39		$	34.51		$	29.39		$	34.51

^(D) Calculated by dividing total non-interest expense (excluding credit loss provisions and impairment write-down on securities) by net interest income plus non-interest income (excluding net gains and losses on the sale of securities and assets). Additionally, taxes are not part of this calculation.

Prosperity Bancshares, Inc.^®

Revised Financial Highlights

(Dollars in thousands)

	Dec 31, 2007			Sept 30, 2007			June 30, 2007			Mar 31, 2007			Dec 31, 2006
Balance Sheet Data (at period end)		(Unaudited	)		(Unaudited	)		(Unaudited	)		(Unaudited	)		(Unaudited	)
Total loans	$	3,142,971		$	3,127,555		$	3,181,176		$	3,247,708		$	2,176,507
Investment securities (E)		1,857,606			1,804,326			1,818,723			1,886,294			1,590,303
Federal funds sold and other earning assets		193,043			101,173			32,243			66,457			154,040
Total earning assets		5,193,620			5,033,054			5,032,142			5,200,459			3,920,850
Allowance for credit losses		(32,543	)		(35,536	)		(36,129	)		(36,341	)		(23,990	)
Cash and due from banks		178,247			141,662			153,854			135,497			116,078
Goodwill		753,909			745,650			736,624			739,328			424,339
Core deposit intangibles		46,069			48,689			49,317			51,883			23,032
Other real estate		10,207			1,460			3,637			2,138			140
Fixed assets, net		120,044			120,794			120,810			118,287			63,057
Other assets		102,713			114,751			124,659			115,448			63,263
Total assets	$	6,372,343		$	6,170,524		$	6,184,914		$	6,326,699		$	4,586,769
Non-Interest bearing deposits	$	1,168,069		$	1,165,089		$	1,184,172		$	1,188,741		$	835,876
Interest bearing deposits		3,798,338			3,618,925			3,592,210			3,739,499			2,889,802
Total deposits		4,966,407			4,784,014			4,776,382			4,928,240			3,725,678
Securities sold under repurchase agreements		84,581			79,484			86,035			73,916			47,225
Federal funds purchased and other interest bearing liabilities		31,466			31,988			59,499			65,621			26,408
Junior subordinated debentures		112,885			112,885			120,617			145,360			100,519
Other liabilities		49,573			50,908			60,805			46,993			22,528
Total liabilities		5,244,912			5,059,279			5,103,338			5,260,130			3,922,358
Shareholders’ equity (F)		1,127,431			1,111,245			1,081,576			1,066,569			664,411
Total liabilities and equity	$	6,372,343		$	6,170,524		$	6,184,914		$	6,326,699		$	4,586,769

^(E) Includes $2,180, ($2,924), ($5,111), ($2,435) and ($4,538) in unrealized gains (losses) on available for sale securities for the quarterly periods ending December 31, 2007, September 30, 2007 June 30, 2007, March 31, 2007 and December 31, 2006, respectively.

^(F) Includes $1,417, ($1,901), ($3,322), ($1,583) and ($2,950) in after tax unrealized gains (losses) on available for sale securities for the quarterly periods ending December 31, 2007, September 30, 2007, June 30, 2007, March 31, 2007 and December 31, 2006, respectively.

Prosperity Bancshares, Inc.^®

Revised Financial Highlights

	Three Months Ended
	Dec 31, 2007		Sept 30, 2007		June 30, 2007		Mar 31, 2007		Dec 31, 2006
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Comparative Quarterly Asset Quality, Performance & Capital Ratios
Return on average assets (annualized)	1.11	%	1.53	%	1.47	%	1.40	%	1.47	%
Return on average common equity (annualized)	6.09	%	8.67	%	8.54	%	8.71	%	10.08	%
Return on average tangible common equity (annualized)	28.73	%	30.53	%	32.04	%	31.24	%	31.64	%
Net interest margin (tax equivalent) (annualized)	4.12	%	4.07	%	4.09	%	3.93	%	3.79	%
Employees—FTE	1,359		1,369		1,408		1,432		908
Efficiency ratio	45.45	%	46.41	%	46.19	%	47.23	%	43.03	%
Non-performing assets to average earning assets	0.30	%	0.19	%	0.22	%	0.09	%	0.03	%
Non-performing assets to loans and other real estate	0.49	%	0.30	%	0.35	%	0.13	%	0.05	%
Net charge-offs to average loans	0.10	%	0.04	%	0.02	%	0.02	%	0.01	%
Allowance for credit losses to total loans	1.04	%	1.14	%	1.14	%	1.12	%	1.10	%
Tier 1 risk-based capital	13.13	%	13.03	%	12.36	%	12.08	%	13.55	%
Total risk-based capital	14.11	%	14.11	%	14.18	%	13.13	%	14.58	%
Tier 1 leverage capital	8.09	%	7.83	%	7.57	%	8.31	%	7.76	%
Tangible equity to tangible assets	5.88	%	5.89	%	5.48	%	4.97	%	5.24	%
Equity to assets	17.69	%	18.01	%	17.49	%	16.86	%	14.49	%