Prosperity Bancshares, Inc. · NYSE:PB
Prosperity Bancshares — Q2 2009 Earnings Presentation
22 slides from Prosperity Bancshares's earnings presentation, Jul 28, 2009
Slide 1: Prosperity Bancshares, Inc. - Real bankers... not just a bank
BANCSHARES, —PROSPERITY— Real bankers… not INC.® just a bank.
Slide 2: Safe Harbor Statements
“Safe under Statements within results of 2 the Harbor” the SEC the discussed Private meaning contained filings Statement in Securities for of these in Prosperity thethis forward-looking Private Litigation presentation Bancshares’s® Securities Reform which statements. Litigation Act are mayofnot be 1
Slide 3: Corporate Profile
aCorporate A 2nd Strong Shareholder Excellent Since 3 Track Texas largest 2000, balance earnings Record based asset cost Profile Texas integrated driven control Financial quality sheet of growth based Success with growth –over ––under commercial approximately Holding Net 1020 –year Charge 50% 10 suc
Slide 4: 2Q09 Highlights
2Q09 Net Non- Strong Recorded 4 Interest Performing Highlights Earnings additional Margin ofAssets $26.510 was FDIC to 4.04% assessment Average million for the or Earning $0.57 of three approximately Assets months per share equal ended (diluted) $4.2 0.26% June million and 30, or $19.587 1.20% 2009
Slide 5: Prosperity Bank Texas Locations
Banking 158 BANK® PROSPERITY 24 51 27 4 7 9 16 17 The Big Midland Odessa Abilene Clarksville Idabel Hugo Paris Sherman Durant Denison Ardmore Duncan Mount Magnolia Arkansa Texarkana Hope Sulphur Greenville 30 Fort Waco Corsicana 35W Stephenville Dallas De Alexan LOUIS Natch Shreveport 20 Brenham Sta
Slide 6: Balance Sheet Summary
Balance As $9,600 1999 $1,400 Total Deposits 5 Loans $ 6 year inOriginally millions 2000 footings Deposits CAGR $8,400 $1,200 Sheet = 2001 $7.26 Reported Loans as Summary $7,200 $1,000 Assets 2002 of bil.6/30/09 =Assets $6,000 2003 $800 Equity 36% $600 2004 Loans Deposits =$4,800 $8.84 2005 $400 = b
Slide 7: EPS
EPS $2.25 2003 $2.09 $1.94 $1.77 $1.59 $1.36 $2.06 5 9.62 *Excludes $0.57 $0.52 preferred ***Excludes 7 yearGrowth %2004 *$2.00 ** CAGR stock the 2005 $1.75 Diluted the 9% non-cash of2006 non-cash *** $9.1 $1.50 2007 million. after $1.25 after 2008 tax $1.00 tax impairment 2Qimpairment 2008 $0.752Q
Slide 8: Deposit Composition
Deposit June 2Q09 >$100,000 CDs 20.34% <$100,000 Interest Amount 14.62% Non-interest Interst MMA CD’s Total $ 8 in thousands & 30, Deposits & Cost & Bearing IRAs Bearing IRA’s<100m IRA’s>100m Composition % 2009 Savings of 18.77% 19.54% Bearing Deposits= total $DDA DDA 7,257,895 26.73% 1,940,106 1,06
Slide 9: Net Interest Margin
* Tax 4.20% 1Q07 4.12% 4.09% 4.07% Net 3.65% 3.93% 9 Interest equivalent- 2Q07 4.10%Margin 4.15% 3.98% Margin* 3Q07 4.00% 4.04% annualized 4Q07 for 3.90% 4.03% 2007 1Q08 3.80% - 2Q08 4.06% 3.70% 3Q08 and for 3.60% 4Q08 2008 1Q09 – 3.96% 2Q09
Slide 10: Loans / Loan to Deposit Ratio
$3,600 70.00% 2003 5 Loan Loans $ 10year in millions 2004 /Growth CAGR Deposit $3,200 65.00% 2005 36% $2,800 Ratio 60.00% 2006 2007 $2,400 55.00% 2008 $2,000 50.00% 2Q08 $1,600 2Q09 45.00% $1,200 40.00% $800 $400 35.00% $0 30.00%
Slide 11: Loan Portfolio Breakout June 30, 2009
Loan June Single Land Raw Lots: Commercial/ 1-4 Construction Commercial Home Agriculture Consumer Gross CRE Approximate Owner Office Multi-family: Strip Church: Other: Amount 461,622 613,386 675,702 117,576 149,515 115,029 $ 111,318,489 3,451,319 in Family thousands Land: 30, Center: Loan Portfolio
Slide 12: Asset Quality - NPA/Loans
Asset * 3.00% 2001 PRSP 1.02% 2.26% 2.61% 0.97% 0.49% ^Texas 2Q09 Source: SNBI, Includes 2002 earnings Quality NPA*/Loans Peer 2.50% 1.18% 1.04% 0.57% SNL SBIT, loans 2003 Group Financial 2.00% 0.84% 0.38% –TRBS NPA*/ past 2004 Includes: +0.35% 1.50% 0.83% due OREO & 2005 Loans TXUI 902006^ CFR, 1.0
Slide 13: Asset Quality - NCO/Average Loans
Asset PRSP 1.00% (Annualized) 0.80% 0.42% 0.48% 0.54% 0.60% 0.23% 0.30% 0.32% 0.40% 0.20% 0.15% 2001 0.00% ^Texas 2Q09 Source: SNBI, 2002 earnings Quality NCO Peer 0.81% 0.41% 0.19% 0.18% 0.13% SNL SBIT, 2003 Group / Financial Loans 0.20% 0.06% –TRBS NCO/Average 2004 Includes: Peer 0.19% 0.08% &2005
Slide 14: Contact Information
Contact Corporate Prosperity 4295 Houston, 281.269.7199 david.zalman@prosperitybanktx.com 281.269-7222 www.prosperitybanktx.com David dan.rollins@prosperitybanktx.com Chief 14 david.hollaway@prosperitybanktx.com 979.543.2200 San Financial Hollaway Information Texas Felipe Headquarters Bank Telephone
Slide 15: 2nd Quarter 2009 Earnings
2nd Quarter 2009 Earnings
Slide 16: Supplemental Data
16 Data Supplemental
Slide 17: The Texas Market
The Texas There the * 17Source: Houston Houston Dallas/ Statistics has are approximately July five Fort MSA MSA of 2006 Worth the has isU.S. nation’s the about MSA 650 nation’s Census 70 banks is topindependent the Bureau; 20 6th nation’s incities largest Texas **Source for 4th banks (125 regional p
Slide 18: Financial Highlights
Financial As ($ Non Net Book Tangible Per *Net charge 18 inOriginally Share Interest Income Interest thousands, Income Value related Book Highlights $4.96 Per Income $34,707 Income does Reported to Value Share $6.48 except FNMA/FLHMC not $81,967 $47,860 $23,071 $12.32 include $6.62 EPS) $7.42 $110,8
Slide 19: Financial Ratios
Financial RATIOS ROAA ROAE ROAE- Efficiency Leverage Tier Total Tangible *ROAA, **ROAA, 19 I Risk Risk 14.27% 1.36% tangible Ratio 2004 ROAE, Ratio Ratios ROAE, Capital Ratio Capital 1.42% 2005 4.38% 11.56% 6.30% 33.41% 49.45% and 14.67% and 13.56% 2006 1.44% ROAE 5.46% 7.83% ROAE 10.24% 29.88% 48.9
Slide 20: History of Acquisitions
At3/11/1996 PRSP Sellers’ 7 8 9 10 11 12 13 14 15 16 17 18 19 Amount Branch Date Announcement 1 2 3 4 5 6 2002/07/08 05/01/07 07/19/06 11/16/05 09/12/05 10/26/04 05/12/04 04/26/04 10/06/03 11/7/2008 10/22/2007 6/15/2000 2/27/1998 3/30/1997 Announcement 03/05/03 07/21/03 02/03/03 08/15/02 07/15/02 05
Slide 21: Historical Loan Composition
Historical 12/31/2003 Loan Construction 1-4 Home Commercial Agriculture Consumer Total $ 21in Family millions Loans Composition Equity Loan $Residential 12/31/2004 $$54.8 $$35.9 Real $770.0 94.0 36.5 27.9 Composition 7.1% Estate 4.7% 12.2% 4.7% 100.0% 3.6% $12/31/2005 $237.1 52.9 $44.1 $283.8 109.6
Slide 22: 2nd Quarter 2009 Earnings
2nd Quarter 2009 Earnings
Prosperity Bancshares — Q2 2009 Earnings Presentation on 6ix