Exhibit 99.1
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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.
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a Track Record of Success
• | A Texas based Financial Holding Company with approximately $10 billion in assets |
• | 3rd 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 0.01% for three months ending September 30, 2011 |
• | Excellent cost control – under 50% efficiency ratio |
• | Since 2000, integrated over 20 successful acquisitions |
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• | Net Interest Margin was 4.02% for the third quarter 2011 |
• | Non- Performing Assets to Average Earning Assets remain low at 0.16% or $13.363 million |
• | Strong Earnings of $36.373 million or $0.77 per share (diluted) and 1.52% Return on Assets for the third quarter 2011 |
• | Tangible Common Equity Ratio improved to 6.89% at September 30, 2011 |
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U.S. Bureau of Labor Statistics | ||||
www.texaswideopenforbusiness.com |
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U.S. Bureau of Labor Statistics | ||||
www.texaswideopenforbusiness.com |
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U.S. Bureau of Labor Statistics | ||||
www.texaswideopenforbusiness.com |
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$ in millions
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* | 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 |
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September 30, 2011
3Q11 Cost of Deposits= 0.50%
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Amount | % of total | |||||||
Non-interest Bearing DDA | $ | 1,861,907 | 23.87 | % | ||||
Interest Bearing DDA | 1,332,914 | 17.09 | ||||||
MMA & Savings | 2,493,699 | 31.98 | ||||||
CD’s & IRA’s<100m | 1,005,672 | 12.90 | ||||||
CD’s & IRA’s>100m | 1,104,547 | 14.16 | ||||||
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Total Deposits | $ | 7,798,739 | 100.00 | % |
$ in thousands
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$ in millions
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$ in thousands
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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: 3Q11 does not include IBOC or TCBI as required data was not reported
Source: SNL Financial
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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
Source: SNL Financial
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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 |
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As Originally Reported ($ in thousands, except EPS) | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 3Q 2011 | |||||||||||||||||||||
Non Interest Income | $ | 30,021 | $ | 33,982 | $ | 52,923 | $ | 52,370 | $ | 60,097 | $ | 53,833 | $ | 14,581 | ||||||||||||||
Net Interest Income | $ | 110,897 | $ | 138,145 | $ | 200,435 | $ | 227,729 | $ | 307,101 | $ | 318,148 | $ | 82,538 | ||||||||||||||
Net Income | $ | 47,860 | $ | 61,725 | $ | 90,635 | * | $ | 93,623 | ** | $ | 111,879 | $ | 127,708 | $ | 36,373 | ||||||||||||
Book Value Per Share | $ | 16.69 | $ | 20.26 | $ | 25.51 | $ | 27.24 | $ | 29.03 | $ | 31.11 | $ | 32.87 | ||||||||||||||
Tangible Book Value Per Share | $ | 6.48 | $ | 6.62 | $ | 7.42 | $ | 7.43 | $ | 9.43 | $ | 10.70 | $ | 12.67 | ||||||||||||||
ROAA | 1.42 | % | 1.44 | % | 1.49 | %* | 1.33 | %** | 1.26 | % | 1.38 | % | 1.52 | % | ||||||||||||||
ROAE | 11.56 | % | 10.24 | % | 8.72 | %* | 7.85 | %** | 8.57 | % | 9.08 | % | 9.51 | % | ||||||||||||||
ROAE- tangible | 29.88 | % | 31.53 | % | 32.34 | %* | 26.77 | %** | 28.66 | % | 27.40 | % | 25.03 | % | ||||||||||||||
Efficiency Ratio | 48.91 | % | 45.27 | % | 46.19 | % | 46.51 | % | 46.27 | % | 44.83 | % | 42.38 | % | ||||||||||||||
Leverage Ratio | 7.83 | % | 7.76 | % | 8.09 | % | 5.68 | % | 6.47 | % | 6.87 | % | 7.70 | % | ||||||||||||||
Tier I Risk Capital | 15.34 | % | 13.52 | % | 13.13 | % | 10.27 | % | 12.61 | % | 13.64 | % | 15.47 | % | ||||||||||||||
Total Risk Capital | 16.37 | % | 14.55 | % | 14.11 | % | 11.17 | % | 13.86 | % | 14.87 | % | 16.69 | % | ||||||||||||||
Tangible Ratio | 5.46 | % | 5.24 | % | 5.88 | % | 4.19 | % | 5.53 | % | 5.86 | % | 6.89 | % |
* | 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. |
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At Announcement | ||||||||||||||||||||||||||||||||
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 |
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 |
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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 | % | ||||||||||||||||||||||||||
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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 | % | ||||||||||||||||||||||||||
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$ in millions
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