Prosperity Bancshares, Inc. · NYSE:PB
Prosperity Bancshares — Investor Presentation (2018)
26 slides from Prosperity Bancshares's investor presentation, 2018
Slide 1: Investor Presentation Fourth Quarter 2017
Investor Presentation Fourth Quarter 2017
Slide 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 Bancshares, Inc.® and its subsidiaries constitute “forward-looking statements” withi
Slide 3: 2017 Fourth Quarter Highlights
2017 Fourth Quarter Highlights • Net income of $67.138 million and earnings per share (diluted) of $0.97 for three months ending December 31, 2017 • Fourth quarter earnings include a one-time non-cash charge of $0.02 per diluted common share related to the Tax Cuts and Jobs Act • Assets of $22.587 b
Slide 4: Strong Presence in Texas and Oklahoma
Strong Presence in Texas and Oklahoma • A Texas-based financial holding company with approximately $22.587 billion in total assets • Ranked #3 in deposit market share in Texas (1) • Shareholder driven with 4.9% fully diluted insider ownership (2) • Successful integration of 42 acquisitions (whole ba
Slide 5: Balance Sheet Summary
Balance Sheet Summary ($ in millions) $22,500 Data as of 12/31/2017 $4,800 Loans $10.021 Bn Deposits $17.821 Bn Assets $22.587 Bn $4,000 $18,000 10 Year CAGR (1) Loans 12.3% Deposits 13.6% $3,200 Assets 13.5% $13,500 $2,400 $9,000 $1,600 $4,500 $800 $0 $0 2007 2008 2009 2010 2011 2012 2013 2014 2015
Slide 6: Net Income
Net Income ($ in millions) (1) 10 Year CAGR: 12.5% $350.0 5 Year CAGR:(2) 10.1% $297.4 $300.0 $286.6 $274.5 $272.2 $255.5 $250.6 $259.3 $250.0 $236.2 $221.4 $200.0 $185.7 $167.9 $154.9 $141.7 $150.0 $127.7 $111.9 $100.0 $84.2 $84.5 $68.8 $67.1 $64.2 $64.4 $50.0 $0.0 (3) (3) 2007 2008 2009 2010 2011
Slide 7: Earnings per Share Growth
Earnings per Share Growth (1) 10 Year CAGR: 7.3% 5 Year CAGR:(2) 3.9% $5.00 $4.32 $4.09 $3.94 $3.92 $4.00 $3.65 $3.65 $3.73 $3.43 $3.60 $3.23 $3.01 $2.98 $3.07 $3.00 $2.73 $2.41 $1.94 $1.86 $2.00 $0.99 $0.97 $0.92 $0.93 $1.00 $0.00 (3) (3) 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 4Q16
Slide 8: Net Interest Margin
Net Interest Margin 4.50% 4.06% 4.08% 4.04% 3.96% 3.98% 4.00% 3.80% 3.58% 3.53% 3.50% 3.35% 3.38% 3.35% 3.29% 3.26% 3.20% 3.13% 3.16% 3.19% 3.12% 3.20% 3.09% 3.12% 3.00% 2.50% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 4Q16 4Q17 Net Interest Margin (Tax Equivalent) Net Interest Margin (E
Slide 9: Acquisitions & Efficiency Ratio
Acquisitions & Efficiency Ratio ($ in millions) $25,000 $22,037 $22,331 $22,587 60.0% $21,508 $20,000 $18,642 55.0% 50.0% 46.2% 46.5% 46.3% $14,584 $15,000 44.8% 42.8% 43.5% 42.8% 45.0% 41.8% 41.9% 42.5% 41.6% $9,477 $9,823 $10,000 $9,072 $8,850 40.0% $6,372 35.0% $5,000 30.0% $0 25.0% 2007 2008 200
Slide 10: Return on Average Tangible Common Equity
Return on Average Tangible Common Equity ($ in millions) 40.00% $2,000 30.03% 30.00% 28.66% $1,500 27.40% 24.16% 25.11% 24.24% 21.93% 22.52% 19.98% 20.00% $1,000 16.95% 16.33% 15.06% 14.31% 10.00% $500 0.00% $0 (1) (1) 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 4Q16 4Q17 ROATCE Tangible
Slide 11: Return on Average Assets
Return on Average Assets 2.00% 1.75% 1.47% 1.50% 1.44% 1.44% 1.38% 1.38% 1.36% 1.35% 1.33% 1.26% 1.25% 1.26% 1.20% 1.22% 1.20% 1.25% 1.00% 0.75% (1) (1) 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 4Q16 4Q17 11 (1) Interim periods shown on an annualized basis
Slide 12: Deposit Composition
Deposit Composition As of December 31, 2017 ($ in millions) CDs & Other Time $mm Cost (%)(1) 12.3% Non-Interest Bearing Demand Non-Interest Bearing Demand $5,623 0.00% 31.5% Money Interest Bearing Demand $4,501 0.35% Market & Savings 30.9% Money Market & Savings $5,501 0.36% Interest Bearing Demand
Slide 13: Loan Growth
Loan Growth ($ in millions) $12,000 65.0% $10,021 $10,000 59.1% $9,622 60.0% 58.4% $9,244 $9,439 56.2% 55.6% $8,000 $7,775 55.0% 53.4% 52.2% 50.8% $6,000 48.8% 50.0% $5,180 46.5% 46.7% 46.7% $3,766 44.5% $4,000 $3,567 $3,377 $3,485 45.0% $3,137 $2,177 $2,000 40.0% $0 35.0% 2006 2007 2008 2009 2010 2
Slide 14: Loan Portfolio Overview
Loan Portfolio Overview As of December 31, 2017 ($ in millions) Loan Portfolio by Category & Geography Loans by Rate Structure Agriculture Home (Inc. Farm) Equity 1-4 Family $690 $285 $2,455 6.9% 2.8% 24.5% Floating Fixed 36.0% C&I Construction 40.0% $1,179 ~3.1yr $1,509 11.8% Avg. Life 15.1% Comm.
Slide 15: Loan Portfolio Segment Detail
Loan Portfolio Segment Detail Commercial Real Estate Detail Energy Detail - Outstanding Balance ($ in millions) ($ in millions) Shopping Center Office Building $498 $339 15.0% 10.2% Multi-Family $156 4.7% Servicers Producers C&I $277 $189 $112 $3,316mm $301mm 37.3% 8.4% 62.7% Total Total Other Owner
Slide 16: Houston MSA CRE Portfolio
Houston MSA CRE Portfolio As of December 31, 2017 ($ in millions) Owner Occupied $518 Shopping Center / Retail $232 Shopping Center / Retail Commercial & Industrial $124 Owner 20.8% Occupied Office $67 46.7% Medical $54 Commercial & Industrial Hotel $43 11.2% Multi-Family $23 Office 6.0% Other $49 M
Slide 17: Asset Quality
Asset Quality NPAs / Loans + OREO 5.00% 4.88% 4.65% 3.95% 4.00% 3.00% 2.82% 2.63% 1.91% 2.00% 1.35% 1.07% 1.04% 0.93% 1.00% 0.49% 0.48% 0.45% 0.46% 0.50% 0.40% 0.32% 0.40% 0.37% 0.25% 0.29% 0.00% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 UBPR Peer Group (1) Prosperity Bank Source: Compa
Slide 18: Securities Portfolio Detail
Securities Portfolio Detail As of December 31, 2017 ($ in millions) Other Securities 0.1% U.S. Treasury Securities / U.S. Gov. Obligations 0.3% Mortgage-Backed Securities $9,196 Mortgage- States & Political Subdivisions $330 States & Political Backed Subdivisions Collateralized Mortgage Obligations
Slide 19: Dividend History
Dividend History $1.60 (d) $1.38 $1.40 Compounded Annual Growth (c) Rate from 2003 - 2017 was 13.0% $1.24 (b) $1.20 $1.12 (a) $0.99 $1.00 $0.89 $0.80 $0.80 $0.72 $0.64 $0.57 $0.60 $0.51 $0.46 $0.41 $0.40 $0.35 $0.31 $0.25 $0.20 $0.00 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2
Slide 20: Total Return Performance
Total Return Performance IPO (November 12, 1998) to December 31, 2017 1,800 $100,000 invested in Prosperity’s IPO on 11/12/1998 was worth $1,555,155 1,600 on 12/31/2017 1,400 1,200 1,000 800 600 400 200 0 11/12/1998 11/12/2001 11/12/2004 11/12/2007 11/12/2010 11/12/2013 11/12/2016 PB (+1,455.2%) S&P
Slide 21: Presence in Fast-Growing Markets
Presence in Fast-Growing Markets Positioned in Strong Markets Top 10 Fastest Growing MSAs in the U.S. (1) 2018 - 2023 • Today, Texas is the 2nd largest state in the U.S. with over 28 Prosperity Population million residents Prosperity Deposits Growth Metropolitan Statistical Area Presence ($mm) (%) L
Slide 22: Corporate Relocations to Texas
Corporate Relocations to Texas California AccentCare Active Networks The Allen Group, Inc. Allied Electronic Recycling Corporate Relocations to Texas (2004 – Present) ALL-Q-TELL Corp. Ameriflight LLC Canada Banker’s Toolbox, Inc. Absolute Software (ABT) Boreland Software Corporation Bio-Solutions Co
Slide 23: Houston Market Highlights
Houston Market Highlights Market Highlights Houston Franchise • Houston MSA is the 5th largest in the United States by population with 7.0 million people • Headquarters to 20 Fortune 500 companies, and only New York City is home to more publicly traded companies • Home of the Texas Medical Center –
Slide 24: Dallas/Ft. Worth Market Highlights
Dallas/Ft. Worth Market Highlights Market Highlights Dallas / Ft. Worth Franchise • Dallas/Ft. Worth MSA is the 4th largest in the United States by population with 7.4 million people • Headquarters to 22 Fortune 500 companies • Total nonfarm employment in the Dallas-Fort Worth-Arlington MSA stood at
Slide 25: Austin Market Highlights
Austin Market Highlights Market Highlights Austin Franchise • Ranked #1 place to live in the U.S. in 2017 by U.S. News and World Report • Austin’s population growth rate from 2006 to 2016 was 35.7%, compared to 19.3% for Texas and 8.2% for the nation • Ranked by Forbes as the #8 best place in the Un
Slide 26: Contact Information
Contact Information Corporate Headquarters Investor Contacts Prosperity Bank Plaza David Zalman 4295 San Felipe Chairman & CEO Houston Texas 77027 979-543-2200 david.zalman@prosperitybankusa.com 281-269-7199 Telephone 281-269-7222 Fax David Hollaway Chief Financial Officer 281-269-7199 david.hollawa