Prosperity Bancshares (PB) 8-K Statements contained in this presentation which are not historical

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 $10

billion in assets

3

rd

largest

Texas

based

commercial

bank

by

Texas

deposits

Strong

balance

sheet

growth

–

10

year

CAGR

of

30%

loans,

28%

deposits and 30% assets

Strong

earnings

growth

–

10

year

CAGR

of

14%

for

EPS

(diluted)

and

32% for net income

Shareholder driven with approximately 9% inside ownership

Excellent

asset

quality

–

Net

Charge

Offs

/

Average

Loans

of

0.03%

for

three months ending June 30, 2011

Excellent

cost

control

–

under

50%

efficiency

ratio

Since 2000, integrated over 20 successful acquisitions

a Track Record of Success

4

2Q11 Highlights

2Q11 Highlights

Net Interest Margin increased to 4.06% for the second quarter 2011

Non-

Performing Assets to Average Earning Assets remain low at 0.15%

or $12.680 million

Strong Earnings of $35.092 million or $0.75 per share (diluted) and

1.45% Return on Assets for the second quarter 2011

Tangible Common Equity Ratio improved to 6.46% at June 30, 2011

Banking Center Network

Banking Center Network

Sources:  SNL Financial and MapPoint

Texas has six of the

nation’s top 20 cities

in population:

4  Houston

7  San Antonio

9  Dallas

16  Austin

17  Fort Worth

20  El Paso

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

2010

2Q

2011

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

Loans

Deposits

Assets

Equity

As Originally Reported

$ in millions

Total footings as of 6/30/11

Loans =

$3.665 Billion

Deposits =

$7.668 Billion

Assets =

$9.657 Billion

5 year CAGR

Loans =

18%

Deposits =

21%

Assets =

21%

7

$0.75

$0.68

$2.73

$1.77

$1.94

$2.09

$2.41

$2.06

$0.00

$0.25

$0.50

$0.75

$1.00

$1.25

$1.50

$1.75

$2.00

$2.25

$2.50

$2.75

$3.00

2005

2006

2007

2008

2009

2010

2Q 2010

2Q 2011

EPS Growth Diluted

EPS Growth Diluted

*

**

*Excluding the non-cash after tax impairment charge related to FNMA/FLHMC preferred stock of $6.5 million, EPS was $1.94

**Excluding the non-cash after tax impairment charge related to FNMA/FLHMC preferred stock of $9.1 million, EPS was $1.86

8

Deposit Composition

Deposit Composition

Non-interest

Bearing DDA

23.33%

MMA &

Savings

30.64%

Interest

Bearing DDA

17.72%

CDs & IRAs

<$100,000

13.53%

CDs & IRAs

>$100,000

14.78%

$ in thousands

2Q11 Cost of Deposits= 0.57%

June 30, 2011

Amount

% of total

Non-interest Bearing DDA

$

1,788,756

23.33 %

Interest Bearing DDA

1,358,649

17.72

MMA & Savings

2,349,761

30.64

CD's & IRA's<100m

1,037,492

13.53

CD's & IRA's>100m

1,133,034

14.78

Total Deposits

$

7,667,692

100.00 %

9

Net Interest Margin

*

Net Interest Margin

*

4.06%

4.02%

3.99%

3.97%

4.00%

4.24%

4.08%

4.09%

4.20%

3.98%

3.60%

3.70%

3.80%

3.90%

4.00%

4.10%

4.20%

4.30%

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11

Net Interest Margin for 2008 = 3.96% 

Net Interest Margin for 2009 = 4.08%

Net Interest Margin for 2010 = 4.04%

*

Tax equivalent- annualized 

$0

$400

$800

$1,200

$1,600

$2,000

$2,400

$2,800

$3,200

$3,600

2004

2005

2006

2007

2008

2009

2010

2Q10

2Q11

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

3.58%

Agriculture

4.39%

Consumer

2.21%

1-4 Family

Residential

25.68%

Commercial

12.44%

Construction

13.19%

Commercial

R.E.

38.51%

$ in thousands

Loans/ Deposits: 47.8%

June 30, 2011

Construction Loan Breakout

Approximate $ in million

Single Family:

$125

Land Development:

$46

Raw Land:

$70

Lots:                                       $141

Commercial/ Other:             $101

CRE Loan Breakout

Approximate $ in million

Owner Occupied:     

$516

Office Building: ��            

$188

Multi-family:                

$82

Strip Center:

$150

Church:

$115

Other:

$361

Amount

% of total

Commercial R.E.

$

1,411,501

38.51%

Commercial

455,791

12.44

Construction

483,581

13.19

1-4 Family Residential

941,250

25.68

Consumer

81,132

2.21

Agriculture

160,780

4.39

Home Equity

131,213

3.58

Gross Loans

$

3,665,248

100.0%

0.45%

0.48%

0.40%

0.49%

0.05%

0.09%

0.17%

0.13%

0.38%

0.35%

0.36%

0.64%

3.91%

3.63%

0.84%

0.83%

1.18%

1.02%

0.70%

0.97%

2.26%

2.92%

3.88%

4.06%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

4.00%

4.50%

5.00%

2002

2003

2004

2005

2006^

2007^

2008^

2009^

2010^

2Q10^

1Q11^

2Q11^

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

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: 2Q11 does not include EBTX or IBOC as they have yet to report earnings

12

PRSP

NPA*/Loans

+

OREO

Peer

NPA*/Loans

+

OREO

Asset Quality –

NCO/Average Loans

Asset Quality –

NCO/Average Loans

0.40%

0.23%

0.18%

0.04%

0.03%

0.23%

0.08%

0.41%

0.06%

0.29%

0.14%

0.17%

0.32%

0.96%

0.48%

0.13%

0.19%

0.20%

0.19%

0.30%

1.29%

1.38%

0.74%

0.77%

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

1.20%

1.40%

1.60%

1.80%

2002

2003

2004

2005

2006^

2007^

2008^

2009^

2010^

2Q10^

1Q11^

2Q11^

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: 2Q11 does not include EBTX or IBOC as they have yet to report earnings

(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

2nd Quarter 2011 Earnings

Financial Highlights

Financial Highlights

16

As Originally Reported                                          

($ in thousands, except EPS)

2005

2006

2007

2008

2009

2010

2Q 2011

Non Interest Income

$30,021

$33,982

$52,923

$52,370

$60,097

$53,833

$13,530

Net Interest Income

$110,897

$138,145

$200,435

$227,729

$307,101

$318,148

$83,630

Net Income

$47,860

$61,725

$90,635*

$93,623**

$111,879

$127,708

$35,092

Book Value Per Share

$16.69

$20.26

$25.51

$27.24

$29.03

$31.11

$32.24

Tangible Book Value Per Share

$6.48

$6.62

$7.42

$7.43

$9.43

$10.70

$11.99

ROAA

1.42%

1.44%

1.49%*

1.33%**

1.26%

1.38%

1.45%

ROAE

11.56%

10.24%

8.72%*

7.85%**

8.57%

9.08%

9.36%

ROAE-

tangible

29.88%

31.53%

32.34%*

26.77%**

28.66%

27.40%

25.56%

Efficiency Ratio

48.91%

45.27%

46.19%

46.51%

46.27%

44.83%

43.58%

Leverage Ratio

7.83%

7.76%

8.09%

5.68%

6.47%

6.87%

7.24%

Tier I Risk Capital

15.34%

13.52%

13.13%

10.27%

12.61%

13.64%

14.72%

Total Risk Capital

16.37%

14.55%

14.11%

11.17%

13.86%

14.87%

15.93%

Tangible Ratio

5.46%

5.24%

5.88%

4.19%

5.53%

5.86%

6.46%

*Does not include the non-cash after tax impairment charge related to FNMA/FLHMC preferred stock of $6.5 million.

**Does not include the non-cash after tax impairment charge related to FNMA/FLHMC preferred stock of $9.1 million.

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)

1

2/8/2010

First Bank

19

Bank

TX

500,000

36,000

2

1/19/2010

U.S. Bank

3

Bank

TX

420,000

13,000

3

11/7/2008

Franklin Bank

46

Bank

TX

3,700,000

60,000

4

10/22/2007

Banco Popular North America

6

Bank

TX

140,000

NA

5

6/15/2000

Compass Bancshares, Inc.

5

Bank

TX

87,000

NA

6

2/27/1998

Grimes County Capital Corporation

1

Bank

TX

5,900

250

7

3/30/1997

Wells Fargo & Company

1

Bank

TX

NA

NA

8

3/11/1996

Victoria Bankshares, Inc.

1

Bank

TX

46,000

NA

Date of

Announcement

Seller

# of

Branches

City

State

Type

Consideration

Accounting

Method

PRSP

Assets

($000)

Sellers'

Assets

($000)

Sellers'

Assets

Contribution

(%)

Deal

Value

($ In MM

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

12/31/2005

12/31/2006

12/31/2007

12/31/2008

12/31/2009

12/31/2010

CAGR

Loan Composition

Commercial

$

222.8

14.4%

$

297.7

13.7%

$

453.6

14.5%

$

499.1

14.0%

$

415.5

12.3%

$

440.5

12.6%

14.6%

Construction

$

206.7

13.4%

$

433.2

19.9%

$

683.2

21.7%

$

666.1

18.6%

$

557.2

16.5%

$

502.3

14.4%

19.4%

1-4 Family Residential

$

313.2

20.3%

$

377.0

17.3%

$

526.3

16.7%

$

668.1

18.7%

$

709.1

21.0%

$

824.1

23.6%

21.3%

Home Equity

$

58.7

3.8%

$

63.4

2.9%

$

93.9

3.0%

$

107.0

3.0%

$

117.7

3.5%

$

118.8

3.4%

15.1%

Commercial Real Estate

$

619.3

40.3%

$

881.1

40.5%

$

1,148.7

36.6%

$

1,343.4

37.7%

$

1,339.2

39.7%

$

1,370.6

39.3%

17.2%

Agriculture

$

56.3

3.6%

$

57.4

2.6%

$

114.0

3.6%

$

145.7

4.1%

$

135.5

4.0%

$

140.8

4.0%

20.1%

Consumer

$

65.1

4.2%

$

66.7

3.1%

$

123.2

3.9%

$

137.7

3.9%

$

102.4

3.0%

$

88.0

2.5%

6.2%

Total Loans

$

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%

$

3,485.0

100.0%

17.7%

2nd Quarter 2011 Earnings