Prosperity Bancshares, Inc. · NYSE:PB
Prosperity Bancshares — Investor Presentation (2017)
25 slides from Prosperity Bancshares's investor presentation, 2017
Slide 1: Investor Presentation Third Quarter 2017
Investor Presentation Third 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 Third Quarter Highlights
2017 Third Quarter Highlights • Net income of $67.908 million and earnings per share (diluted) of $0.98 for three months ending September 30, 2017 • Assets of $22.143 billion, loans of $9.911 billion, and deposits of $16.907 billion at September 30, 2017 • Common equity tier 1 ratio was 15.10% and l
Slide 4: Strong Presence in Texas and Oklahoma
Strong Presence in Texas and Oklahoma • A Texas‐based financial holding company with approximately $22.143 billion in total assets • Ranked #3 in deposit market share in Texas (1) • Shareholder driven with 4.9% fully diluted insider ownership • Successful integration of 42 acquisitions (whole bank,
Slide 5: Balance Sheet Summary
Balance Sheet Summary ($ in millions) Data as of 09/30/2017 $22,500 $4,000 Loans $9.911 Bn Deposits $16.907 Bn Assets $22.143 Bn $18,000 10 Year CAGR (1) $3,200 Loans 16.0% Deposits 16.6% Assets 17.1% $13,500 $2,400 $9,000 $1,600 $4,500 $800 $0 $0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 20
Slide 6: Net Income
Net Income ($ in millions) 10 Year CAGR:(1) 16.1% $350.0 5 Year CAGR:(2) 14.1% $297.4 $300.0 $286.6 $274.5 $250.0 $221.4 $200.0 $167.9 $141.7 $150.0 $127.7 $111.9 $100.0 $84.2 $84.5 $68.7 $67.9 $61.7 $63.9 $63.0 $50.0 $0.0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 3Q16 3Q17 Note: Net In
Slide 7: Earnings per Share Growth
Earnings per Share Growth 10 Year CAGR:(1) 7.3% $5.00 5 Year CAGR:(2) 5.5% $4.32 $4.09 $3.94 $4.00 $3.65 $3.23 $3.01 $3.00 $2.73 $2.41 $1.94 $1.94 $1.86 $2.00 $0.99 $0.98 $0.92 $0.91 $1.00 $0.00 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 3Q16 3Q17 Note: Net Income Includes the Following
Slide 8: Net Interest Margin
Net Interest Margin 4.50% 4.06% 4.08% 4.04% 3.96% 3.98% 4.00% 3.80% 3.80% 3.58% 3.53% 3.50% 3.35% 3.38% 3.35% 3.29% 3.29% 3.20% 3.22% 3.13% 3.16% 3.14% 3.07% 3.00% 2.50% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 3Q16 3Q17 Net Interest Margin (Tax Equivalent) Net Interest Margin (Excludi
Slide 9: Acquisitions & Efficiency Ratio
Acquisitions & Efficiency Ratio ($ in millions) $25,000 $22,037 $22,331 $22,143 60.0% $21,508 $20,000 $18,642 55.0% 50.0% 46.2% 46.5% 46.3% $14,584 $15,000 45.3% 44.8% 42.8% 43.5% 45.0% 41.8% 41.9% 42.5% 41.9% 41.6% $9,477 $9,823 $10,000 $9,072 $8,850 40.0% $6,372 35.0% $4,587 $5,000 30.0% $0 25.0%
Slide 10: Return on Average Tangible Common Equity
Return on Average Tangible Common Equity 40.00% 31.53% 30.03% 30.00% 28.66% 27.40% 24.16% 25.11% 24.24% 21.93% 22.52% 19.98% 20.00% 16.95% 16.79% 14.83% 10.00% 0.00% (1) (1) 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 3Q16 3Q17 10 (1) Interim periods shown on an annualized basis
Slide 11: Return on Average Assets
Return on Average Assets 2.00% 1.75% 1.47% 1.50% 1.44% 1.44% 1.38% 1.38% 1.36% 1.35% 1.33% 1.26% 1.25% 1.27% 1.20% 1.22% 1.25% 1.00% 0.75% (1) (1) 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 3Q16 3Q17 11 (1) Interim periods shown on an annualized basis
Slide 12: Loan Growth
Loan Growth ($ in millions) $12,000 65.0% 59.1% $9,911 $10,000 58.4% $9,439 $9,622 $9,548 60.0% $9,244 56.4% 55.6% 58.6% $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% $0 35.0% 2006 2007 2008
Slide 13: Loan Portfolio
Loan Portfolio As of September 30, 2017 ($ in millions) Loan Portfolio by Category & Geography CRE & Construction Detail Agriculture Shopping Center Office Building Home (Inc. Farm) $348 $485 Equity 1‐4 Family $693 10.6% 14.7% $284 $2,449 7.0% Multi‐ 2.9% 24.7% Family $162 C&I Comm. 4.9% Constructio
Slide 14: Energy Portfolio
Energy Portfolio Outstanding Balance Portfolio Commentary ($ in millions) • Total outstanding balance of $291.8 million, or 2.9% of total loans Servicers Producers • Total unfunded commitments of $164.4 million $185 $107 $292mm 36.6% 63.4% Total • Total energy reserves of 2.6% or $7.6 million • $13.
Slide 15: Houston MSA CRE Portfolio
Houston MSA CRE Portfolio As of September 30, 2017 ($ in millions) Owner Occupied $500.1 Shopping Shopping Center / Retail $194.5 Center / Retail Owner 18.4% Commercial & Industrial $114.9 Occupied 47.4% Commercial & Office $67.7 Industrial Medical $54.9 10.9% Hotel $42.7 Office 6.4% Multi‐Family $2
Slide 16: Asset Quality
Asset Quality NPAs / Loans + OREO 5.00% 4.88% 4.65% 3.95% 4.00% 3.00% 2.82% 2.63% 1.91% 2.00% 1.35% 1.07% 1.04% 0.93% 1.00% 0.57% 0.63% 0.49% 0.48% 0.45% 0.46% 0.50% 0.46% 0.40% 0.32% 0.40% 0.25% 0.29% 0.05% 0.00% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 3Q16 3Q17 (1) UBPR Peer Group P
Slide 17: Deposit Composition
Deposit Composition As of September 30, 2017 ($ in millions) CDs & Other Time Non‐Interest 13.4% Bearing Demand 32.3% Money Market & Savings Non‐Interest Bearing Demand $5,465 32.7% Interest Bearing Interest Bearing Demand $3,646 Demand 21.6% Money Market & Savings $5,538 CDs & Other Time $2,258 Non
Slide 18: Dividend History
Dividend History $1.40 (c) $1.24 $1.20 Compounded Annual Growth (b) $1.12 Rate from 2003 ‐ 2016 was 13.1% (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 2016 (a) 2014 div
Slide 19: Total Return Performance
Total Return Performance IPO (November 12, 1998) to September 30, 2017 1,800 $100,000 invested in Prosperity’s IPO 1,600 on 11/12/98 was worth $1,451,270 on 09/30/17 1,400 1,200 1,000 800 600 400 200 0 11/12/1998 11/12/2001 11/12/2004 11/12/2007 11/12/2010 11/12/2013 11/12/2016 PB (+1,351.3%) S&P 50
Slide 20: Presence in Fast-Growing Markets
Presence in Fast‐Growing Markets Positioned in Strong Markets Top 10 Fastest Growing MSAs in the U.S. (1) 2018 ‐ 2023 • Today, Texas is the 2nd largest state in the U.S. with over 28 Prosperity Population million residents Prosperity Deposits Growth Metropolitan Statistical Area Presence ($mm) (%) L
Slide 21: 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 22: 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 23: 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 24: 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 25: 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