 Exhibit 99.1 |
 2 “Safe Harbor” Statement “Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995 Statements contained in this presentation which are not historical facts and which pertain to future operating results of Prosperity Bank and its subsidiaries constitute “forward-looking statements” within the meaning of the Private Securities Litigation reform Act of 1995. These forward-looking statements involve significant risks and uncertainties. Actual results may differ materially from the results discussed in these forward-looking statements. Factors that might cause such a difference include, but are not limited to, those discussed in the company’s periodic filings with the SEC. Copies of the SEC filings for Prosperity Bancshares ® may be downloaded from the Internet at no charge from www.prosperitybanktx.com. |
 3 Corporate Profile Corporate Profile A Texas based Financial Holding Company with approximately $9 billion in assets 2 nd largest Texas based commercial bank by Texas deposits Strong balance sheet growth – 10 year CAGR of 31% loans, 30% deposits and 31% assets Strong earnings growth – 10 year CAGR of 15% for EPS (diluted) and 33% for net income Shareholder driven with approximately 11% inside ownership Excellent asset quality – Net Charge Offs / Average Loans of 0.07% for three months ending June 30, 2010 Excellent cost control – under 50% efficiency ratio Since 2000, integrated over 20 successful acquisitions a Track Record of Success |
 4 2Q10 Highlights 2Q10 Highlights Net Interest Margin was 4.00% for the three months ended June 30, 2010 Non- Performing Assets to Average Earning Assets remain low at 0.27% or $21.856 million Strong Earnings of $31.746 million or $0.68 per share (diluted) and 1.34% Return on Assets for the three months ended June 30, 2010 Tangible Common Equity Ratio was 5.19% at June 30, 2010 |
 5 Banking Center Network Banking Center Network Sources: SNL Financial and MapPoint Texas has five of the nation’s top 20 cities in population: 4 Houston 7 San Antonio 9 Dallas 16 Austin 17 Fort Worth 175 Full Service Locations 10 in Bryan/ College Station Area 33 in Central Texas Area 31 in Dallas/ Fort Worth Area 21 In East Texas Area 60 in Houston Area 20 in South Texas Area The Houston MSA is the nation’s 6th largest regional area with 5.6 million residents The Dallas/ Fort Worth MSA is the nation’s 4th largest regional area with 6.1 million residents Including U.S. Bank Branch Acquisitions |
 6 Balance Sheet Summary Balance Sheet Summary $0 $1,200 $2,400 $3,600 $4,800 $6,000 $7,200 $8,400 $9,600 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2Q2010 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 Loans Deposits Assets Equity As Originally Reported $ in millions Total footings as of 6/30/10 Loans = $3.425 Billion Deposits = $7.814 Billion Assets = $9.609 Billion 5 year CAGR Loans = 27% Deposits = 26% Assets = 27% |
 7 $0.68 $0.57 $2.41 $1.59 $1.77 $1.94 $2.06 $2.09 $0.00 $0.25 $0.50 $0.75 $1.00 $1.25 $1.50 $1.75 $2.00 $2.25 $2.50 2004 2005 2006 2007 2008 2009 2Q 2009 2Q 2010 EPS Growth Diluted EPS Growth Diluted *Excludes the non-cash after tax impairment charge related to FNMA/FLHMC preferred stock of $6.5 million. **Excludes the non-cash after tax impairment charge related to FNMA/FLHMC preferred stock of $9.1 million. * ** |
 8 Deposit Composition Deposit Composition Non-interest Bearing DDA 20.18% MMA & Savings 29.26% Interest Bearing DDA 17.39% CDs & IRAs <$100,000 16.85% CDs & IRAs >$100,000 16.32% $ in thousands 2Q10 Cost of Deposits= 0.90% June 30, 2010 Amount % of total Non-interest Bearing DDA $ 1,576,727 20.18 % Interest Bearing DDA 1,359,041 17.39 MMA & Savings 2,286,525 29.26 CD's & IRA's<100m 1,316,602 16.85 CD's & IRA's>100m 1,275,034 16.32 Total Deposits $ 7,813,929 100.00 % |
 9 Net Interest Margin * Net Interest Margin * 4.08% 4.04% 4.24% 4.00% 4.20% 3.98% 3.65% 4.15% 4.10% 4.12% 4.07% 4.09% 4.03% 3.93% 3.60% 3.70% 3.80% 3.90% 4.00% 4.10% 4.20% 4.30% 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 * Tax equivalent- annualized Net Interest Margin for 2007 = 4.06% Net Interest Margin for 2008 = 3.96% Net Interest Margin for 2009 = 4.08% |
 $0 $400 $800 $1,200 $1,600 $2,000 $2,400 $2,800 $3,200 $3,600 2004 2005 2006 2007 2008 2009 2Q 2009 2Q 2010 30.00% 35.00% 40.00% 45.00% 50.00% 55.00% 60.00% 65.00% 70.00% Loans Loan / Deposit Ratio 10 Loan Growth Loan Growth $ in millions |
 11 Loan Portfolio Loan Portfolio Home Equity 3.39% Agriculture 4.34% Consumer 2.82% 1-4 Family Residential 22.15% Commercial 12.85% Construction 15.03% Commercial R.E. 39.42% $ in thousands Loans/ Deposits: 43.8% June 30, 2010 Construction Loan Breakout Approximate $ in million Single Family: $136 Land Development: $74 Raw Land: $68 Lots: $143 Commercial/ Other: $93 CRE Loan Breakout Approximate $ in million Owner Occupied: $516 Office Building: $177 Multi-family: $81 Strip Center: $146 Church: $94 Other: $335 Amount % of total Commercial R.E. $ 1,349,834 39.42% Commercial 440,274 12.85 Construction 514,793 15.03 1-4 Family Residential 758,670 22.15 Consumer 96,628 2.82 Agriculture 148,770 4.34 Home Equity 116,071 3.39 Gross Loans $ 3,425,040 100.0% |
 Asset Quality – NPA*/ Loans + OREO * Includes loans past due 90 days and still accruing Asset Quality – NPA*/ Loans + OREO * Includes loans past due 90 days and still accruing 0.48% 0.40% 0.49% 0.05% 0.09% 0.17% 0.13% 0.38% 0.00% 0.64% 0.59% 0.57% 3.63% 2.26% 1.18% 0.84% 1.02% 0.97% 0.83% 0.70% 0.97% 4.68% 3.75% 2.75% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 5.00% 2001 2002 2003 2004 2005 2006^ 2007^ 2008^ 2009^ 2Q09^ 1Q10^ 2Q10^ PRSP NPA*/Loans + OREO Peer NPA*/Loans + OREO Source: SNL Financial Texas Peer Group Includes: CFR, EBTX, FFIN, FBTX, IBOC, MCBI, SBSI, SNBI, SBIB, SBIT, TCBI, TRBS & TXUI ^ SNBI, SBIT, TRBS & TXUI have been acquired and were excluded from 2006 & 2007 and FBTX failed and was excluded from 2008 Note: 2Q10 does not include IBOC or CFR as they have yet to report 12 |
 Asset Quality – NCO/Average Loans Asset Quality – NCO/Average Loans 0.54% 0.23% 0.40% 0.06% 0.08% 0.06% 0.03% 0.04% 0.18% 0.23% 0.52% 0.29% 0.41% 0.96% 0.32% 0.30% 0.19% 0.20% 0.19% 0.13% 0.48% 1.20% 1.68% 0.83% -0.01% 0.19% 0.39% 0.59% 0.79% 0.99% 1.20% 1.40% 1.60% 1.80% 2001 2002 2003 2004 2005 2006^ 2007^ 2008^ 2009^ 2Q09^ 1Q10^ 2Q10^ PRSP NCO / Loans Peer NCO / Loans Source: SNL Financial Texas Peer Group Includes: CFR, EBTX, FFIN, FBTX, IBOC, MCBI, SBSI, SNBI, SBIB, SBIT, TCBI, TRBS & TXUI ^ SNBI, SBIT, TRBS & TXUI have been acquired and were excluded from 2006 & 2007 and FBTX failed and was excluded from 2008 Note: 2Q10 does not include IBOC or CFR as they have yet to report (Annualized) 13 |
 14 Contact Information Contact Information Corporate Headquarters Investor Contacts Prosperity Bank Plaza David Zalman 4295 San Felipe Chairman & Chief Executive Officer Houston, Texas 77027 979.543.2200 david.zalman@prosperitybanktx.com 281.269.7199 Telephone Dan Rollins 281.269-7222 Fax President & Chief Operating Officer www.prosperitybanktx.com 281.269.7199 dan.rollins@prosperitybanktx.com David Hollaway Chief Financial Officer 979.543.2200 david.hollaway@prosperitybanktx.com |
 2 nd Quarter 2010 Earnings |
 16 Financial Highlights Financial Highlights *ROAA, ROAE, and ROAE tangible does not include the non-cash after tax impairment charge related to FNMA/FLHMC preferred stock of $6.5 million. **ROAA, ROAE, and ROAE tangible does not include the non-cash after tax impairment charge related to FNMA/FLHMC preferred stock of $9.1 million. As Originally Reported ($ in thousands, except EPS) 2004 2005 2006 2007 2008 2009 2Q 2010 Non Interest Income $23,071 $30,021 $33,982 $52,923 $52,370 $60,097 $13,296 Net Interest Income $81,967 $110,897 $138,145 $200,435 $227,729 $307,101 $80,600 Net Income $34,707 $47,860 $61,725 $90,635* $93,623** $111,879 $31,746 Book Value Per Share $12.32 $16.69 $20.26 $25.51 $27.24 $29.03 $30.12 Tangible Book Value Per Share $4.96 $6.48 $6.62 $7.42 $7.43 $7.88 $9.64 ROAA 1.36% 1.42% 1.44% 1.49% 1.33% 1.26% 1.34% ROAE 14.27% 11.56% 10.24% 8.72% 7.85% 8.57% 9.12% ROAE- tangible 33.41% 29.88% 31.53% 32.34% 26.77% 28.66% 28.08% Efficiency Ratio 49.45% 48.91% 45.27% 46.19% 46.51% 46.27% 46.04% Leverage Ratio 6.30% 7.83% 7.76% 8.09% 5.68% 6.47% 6.10% Tier I Risk Capital 13.56% 15.34% 13.52% 13.13% 10.27% 12.61% 12.31% Total Risk Capital 14.67% 16.37% 14.55% 14.11% 11.17% 13.86% 13.56% Tangible Ratio 4.38% 5.46% 5.24% 5.88% 4.19% 5.53% 5.19% |
 17 PRSP Acquisitions PRSP Acquisitions Branch Acquisitions Date of Announcement Seller # of Branches Branch Type Branch Locale State Amount of Deposits Transferred ($000) Deposit Premium ($000) Premium/ Deposits (%) Assets Transferred: Loan? Yor N 1 11/7/2008 Franklin Bank 46 Bank TX 3,700,000 60,000 1.71 Yes 2 10/22/2007 Banco Popular North America 6 Bank TX 140,000 NA 10.1 Yes 3 6/15/2000 Compass Bancshares, Inc. 5 Bank TX 87,000 NA NA Yes 4 2/27/1998 Grimes County Capital Corporation 1 Bank TX 5,900 250 4.24 No 5 3/30/1997 Wells Fargo & Company 1 Bank TX NA NA NA No 6 3/11/1996 Victoria Bankshares, Inc. 1 Bank TX 46,000 NA NA Yes Date of Announcement Seller # of Branches City State Type Consideration Accounting Method PRSP Assets ($000) Sellers' Assets ($000) Sellers' Assets Contribution (%) Deal Value ($000) 1 02/07/08 1st Choice Bancorp, Inc. 1 Houston TX Bank Mixed Purchase 6,372,343 313,900 4.69 66.2 2 05/01/07 The Bank of Navasota 1 Navasota TX Bank Common Stock Purchase 6,247,926 72,300 1.14 17.1 3 07/19/06 Texas United Bancshares, Inc. 34 La Grange TX Bank Common Stock Purchase 4,547,220 1,818,000 27.82 357.1 4 11/16/05 SNB Bancshares, Inc. 6 Houston TX Bank Mixed Purchase 3,493,972 1,121,747 24.30 242.7 5 09/12/05 Grapeland Bancshares, Inc. 2 Grapeland TX Bank Common Stock Purchase 3,479,747 73,000 2.15 7.3 6 10/26/04 FirstCapital Bankers, Inc. 20 Corpus Christi TX Thrift Common Stock Purchase 2,709,169 773,566 22.21 135.7 7 05/12/04 Village Bank and Trust 1 Austin TX Thrift Cash Purchase 2,449,553 110,400 4.31 20.2 8 04/26/04 Liberty Bank 4 Austin TX Thrift Mixed Purchase 2,449,553 186,000 7.06 42.0 9 10/06/03 First State Bank of North Texas 3 Dallas TX Bank Mixed Purchase 2,078,532 93,900 4.32 21.3 10 07/21/03 Mainbancorp 3 Dallas TX Bank Mixed Purchase 1,983,277 195,700 8.98 39.7 11 03/05/03 BankDallas SSB 1 Dallas TX Thrift Cash Purchase 1,822,256 40,716 2.19 7.0 12 02/03/03 Abrams Centre Bancshares, Inc. 1 Dallas TX Bank Cash Purchase 1,822,256 95,388 4.97 16.3 13 08/15/02 First National Bank of Bay City 1 Bay City TX Bank Cash Purchase 1,360,356 28,174 2.03 5.0 14 07/15/02 Southwest Bank Holding Company 2 Dallas TX Bank Cash Purchase 1,289,637 127,055 8.97 21.0 15 05/02/02 Paradigm Bancorporation, Incorporated 8 Houston TX Bank Common Stock Purchase 1,289,637 259,262 16.74 41.6 16 04/26/02 First State Bank 1 Needville TX Bank Cash Purchase 1,289,637 17,539 1.36 3.7 17 02/22/02 Texas Guaranty Bank, N.A. 2 Houston TX Bank Cash Purchase 1,262,152 75,019 5.61 11.8 18 11/08/00 Commercial Bancshares, Inc. 12 Houston TX Bank Common Stock Pooling 693,079 401,271 36.67 53.3 19 06/21/99 South Texas Bancshares, Inc. 3 Beeville TX Bank Cash Purchase 461,903 142,091 23.53 23.4 20 06/05/98 Union State Bank 1 East Bernard TX Bank Cash Purchase 339,287 79,174 18.92 17.6 At Announcement |
 18 Historical Loan Composition Historical Loan Composition $ in millions 12/31/2004 12/31/2005 12/31/2006 12/31/2007 12/31/2008 12/31/2009 CAGR Loan Composition Commercial $ 144.4 13.9% $ 222.8 14.4% $ 297.7 13.7% $ 453.6 14.5% $ 499.1 14.0% $ 415.5 12.3% 23.5% Construction $ 109.6 10.6% $ 206.7 13.4% $ 433.2 19.9% $ 683.2 21.7% $ 666.1 18.6% $ 557.2 16.5% 38.4% 1-4 Family Residential $ 260.5 25.2% $ 313.2 20.3% $ 377.0 17.3% $ 526.3 16.7% $ 668.1 18.7% $ 709.1 21.0% 22.2% Home Equity $ 34.5 3.3% $ 58.7 3.8% $ 63.4 2.9% $ 93.9 3.0% $ 107.0 3.0% $ 117.7 3.5% 27.8% Commercial Real Estate $ 389.6 37.7% $ 619.3 40.3% $ 881.1 40.5% $ 1,148.7 36.6% $ 1,343.4 37.7% $ 1,339.2 39.7% 28.0% Agriculture $ 44.1 4.2% $ 56.3 3.6% $ 57.4 2.6% $ 114.0 3.6% $ 145.7 4.1% $ 135.5 4.0% 25.2% Consumer $ 52.9 5.1% $ 65.1 4.2% $ 66.7 3.1% $ 123.2 3.9% $ 137.7 3.9% $ 102.4 3.0% 14.1% Total Loans $ 1,035.6 100.0% $ 1,542.1 100.0% $ 2,176.5 100.0% $ 3,142.9 100.0% $ 3,567.1 100.0% $ 3,376.7 100.0% 26.7% |
 2nd Quarter 2010 Earnings |