Prosperity Bancshares, Inc. · NYSE:PB
Prosperity Bancshares — Q4 2010 Earnings Presentation
19 slides from Prosperity Bancshares's earnings presentation, Feb 9, 2011
Slide 1: Prosperity Bancshares, Inc.
—PRO BANCSHARES, INC: ankers... not just a bank: — =
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 Bank and its subsidiaries constitute “forward-looking statements” within the meaning
Slide 3: Corporate Profile
Corporate Profile a Track Record of Success A Texas based Financial Holding Company with approximately $9 billion in assets nd 2 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
Slide 4: 4Q10 Highlights
4Q10 Highlights Net Interest Margin was 3.99% for the fourth quarter 2010 Non- Performing Assets to Average Earning Assets remain low at 0.20% or $15.842 million Strong Earnings of $32.798 million or $0.70 per share (diluted) and 1.41% Return on Assets for the fourth quarter 2010 Tangible Common Equ
Slide 5: Banking Center Network
Banking Center Network The Dallas/ Fort Worth MSA is the nation’s 4th largest 175 Full Service Locations regional area with 10 in Bryan/ College Station Area 6.1 million residents 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 T
Slide 6: Balance Sheet Summary
Balance Sheet Summary As Originally Reported $9,600 Total footings as of 12/31/10 $1,400 Loans = $3.485Billion $8,400 Deposits = $7.455 Billion Assets = $9.476 Billion $1,200 $7,200 5 year CAGR Loans = 18% $1,000 $6,000 Deposits = 21% Assets = 21% $800 $4,800 $600 $3,600 Loans Deposits $400 $2,400 A
Slide 7: EPS Growth
EPS Growth Diluted $3.00 $2.75 $2.73 $2.41 $2.50 $2.25 $2.09 * $2.06** $2.00 $1.94 $1.77 $1.75 $1.50 $1.25 $1.00 $0.70 $0.75 $0.65 $0.50 $0.25 $0.00 2005 2006 2007 2008 2009 2010 4Q 2009 4Q 2010 *Excluding the non-cash after tax impairment charge related to FNMA/FLHMC preferred stock of $6.5 million
Slide 8: Deposit Composition
Deposit Composition December 31, 2010 4Q10 Cost of Deposits= 0.63% Non-interest CDs & IRAs CDs & IRAs Bearing DDA >$100,000 <$100,000 22.44% 14.48% 15.01% Interest MMA & Bearing DDA Savings 18.95% 29.12% Amount % of total Non-interest Bearing DDA $ 1,673,190 22.44 % Interest Bearing DDA 1,412,337 18
Slide 9: Net Interest Margin
Net Interest Margin * * Tax equivalent- annualized 4.30% 4.24% 4.20% 4.20% 4.12% 4.10% 4.15% 4.09% 4.10% 4.08% 4.07% 4.04% 3.98% 3.99% 4.00% 4.03% 4.00% 3.97% 3.93% 3.90% Net Interest Margin for 2007 = 4.06% 3.80% Net Interest Margin for 2008 = 3.96% Net Interest Margin for 2009 = 4.08% Net Interest
Slide 10: Loan Growth
Loan Growth $3,600 70.00% $3,200 65.00% $2,800 60.00% $2,400 55.00% $2,000 50.00% $1,600 45.00% $1,200 Loans 40.00% $800 Loan / Deposit $400 Ratio 35.00% $0 30.00% 2004 2005 2006 2007 2008 2009 2010 10 $ in millions
Slide 11: Loan Portfolio
Loan Portfolio December 31, 2010 Loans/ Deposits: 46.7% Agriculture CRE Loan Breakout 4.04% Home Equity Approximate $ in million Consumer 3.41% Owner Occupied: $508 2.52% Commercial Office Building: $179 R.E. 1-4 Family Multi-family: $83 39.33% Residential Strip Center: $150 23.65% Church: $100 Cons
Slide 12: Asset Quality – NPA/Loans + OREO
Asset Quality – NPA*/ Loans + OREO * Includes loans past due 90 days and still accruing (Annualized) 5.00% PRSP NPA*/Loans + OREO Peer NPA*/Loans + OREO 4.50% 4.00% 4.01% 3.63% 3.63% 3.50% 3.29% 3.29% 3.00% 2.50% 2.26% 2.00% 1.50% 1.02% 1.18% 0.83% 0.97% 1.00% 0.84% 0.70% 0.49% 0.48% 0.60% 0.38% 0.4
Slide 13: Asset Quality – NCO/Average Loans
Asset Quality – NCO/Average Loans (Annualized) 1.80% PRSP NCO / Loans Peer NCO / Loans 1.61% 1.60% 1.44% 1.40% 1.17% 1.20% 1.00% 0.96% 1.03% 0.80% 0.60% 0.51% 0.48% 0.47% 0.40% 0.41% 0.40% 0.32% 0.30% 0.23% 0.20% 0.19% 0.23% 0.31% 0.19% 0.18% 0.20% 0.08% 0.06% 0.03% 0.04% 0.13% 0.00% 2002 2003 2004
Slide 14: Contact Information
Contact Information Corporate Headquarters Investor Contacts Prosperity Bank Plaza David Zalman 4295 San Felipe Chairman & Chief Executive Officer Houston, Texas 77027 979.543.2200 david.zalman@prosperitybanktx.com 281.269.7199 Telephone Dan Rollins 281.269-7222 Fax President & Chief Operating Offic
Slide 15: 4th Quarter 2010 Earnings
4th Quarter 2010 Earnings
Slide 16: Financial Highlights
Financial Highlights As Originally Reported ($ in thousands, except EPS) 2004 2005 2006 2007 2008 2009 2010 Non Interest Income $23,071 $30,021 $33,982 $52,923 $52,370 $60,097 $53,833 Net Interest Income $81,967 $110,897 $138,145 $200,435 $227,729 $307,101 $318,148 Net Income $34,707 $47,860 $61,725
Slide 17: PRSP Acquisitions
PRSP Acquisitions At Announcement Sellers' PRSP Sellers' Assets Deal Date of # of Accounting Assets Assets Contribution Value Announcement Seller Branches City State Type Consideration Method ($000) ($000) (%) ($ In MM 1 02/07/08 1st Choice Bancorp, Inc. 1 Houston TX Bank Mixed Purchase 6,372,343 31
Slide 18: Historical Loan Composition
Historical Loan Composition 12/31/2004 12/31/2005 12/31/2006 12/31/2007 12/31/2008 12/31/2010 CAGR Loan Composition Commercial $ 144.4 13.9% $ 222.8 14.4% $ 297.7 13.7% $ 453.6 14.5% $ 499.1 14.0% $ 440.5 12.6% 14.6% Construction $ 109.6 10.6% $ 206.7 13.4% $ 433.2 19.9% $ 683.2 21.7% $ 666.1 18.6%
Slide 19: 4th Quarter 2010 Earnings
4th Quarter 2010 Earnings
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