Prosperity Bancshares, Inc. · NYSE:PB
Prosperity Bancshares — Investor Presentation (July 2005)
24 slides from Prosperity Bancshares's investor presentation, Jul 26, 2005
Slide 1: Prosperity Bancshares, Inc.
Exhibit 99.1
Slide 2: Safe Harbor Statement under the Private Securities Litigation Reform Act
“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1999 The statements contained in this presentation which are not historical facts contain forward-looking information with respect to plans, projections, or future performance of Prosperity Bancshares, Inc. and its subsidi
Slide 3: Prosperity is . . . a Track Record of Success
Prosperity is . . . .. a Track Record of Success A $3.5 billion Texas based Financial Holding Company Customer focused Results oriented Shareholder driven Accretive acquisition Excellent asset quality Fast growing Serving Houston, Dallas, Austin, Corpus Christi and many communities southwest of Hous
Slide 4: Growth Rates
Growth Rates Percent Change 5 Year 2Q04-2Q05 CAGR 2000—2004 Asset Growth 41.59% 34.68% Loan Growth 92.20% 35.89% Deposit Growth 36.92% 34.08% Non-Interest Income Growth 44.47% 45.57% Net Income Growth 45.99% 39.91% EPS (diluted) Growth 12.82% 21.52%
Slide 5: Banking Center Locations
Banking Center Locations 85 Full Service Locations 33 in Houston CMSA 16 in Corpus Christi area 11 in Dallas area 7 in Austin MSA 18 in South Texas Southwest of Houston Total Population: Texas: 22,293,020 Population (CMSA) Houston: 5,106,853 Dallas: 5,643,259 Austin: 1,393,420 Corpus Christi: 406,74
Slide 6: Balance Sheet Summary
Balance Sheet Summary As Originally Reported $3,600 $3,300 $3,000 $2,700 $2,400 $2,100 $1,800 $1,500 $1,200 $900 $600 $300 $0 Loans Deposits Assets Equity In Millions 1997 1998 1999 2000 2001 2002 2003 2004 2Q05 Equity in Millions $500 $400 $300 $200 $100 $0
Slide 7: EPS Growth Diluted
EPS Growth Diluted $1.75 $1.50 $1.25 $1.00 $0.75 $0.50 $0.25 $0.00 $0.74 $0.79 $1.22 $1.36 $1.59 2000 2001 2002 2003 2004 2Q04 2Q05 $0.39 $0.44 12.8% 5 year CAGR 21.5%
Slide 8: Net Interest Income and Margin
Net Interest Income and Margin (fte) $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0 Net Intere st Income Net Interest Margin 3.65% 3.57% 3.62% 3.68% 3.81% 3.82% 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3.85% 3.80% 3.75% 3.70% 3.65% 3.60% 3.55% 3.50% 3.45% 3.40% In Thousands
Slide 9: Efficiency Ratio
Efficiency Ratio 55.00% 52.50% 50.00% 47.50% 45.00% 50.36% 51.58% 51.06% 49.23% 48.99% 4 acquisitions $425.7 assets acquired 5 acquisitions $507.2 assets acquired 2 acquisitions $296.4 assets acquired 1 acquisition $773.5 assets acquired 2002 2003 2004 1Q05 2Q05 In Millions
Slide 10: Tangible Equity Ratio
Tangible Equity Ratio 5.40% 5.20% 5.00% 4.80% 4.60% 4.40% 4.20% 4.00% 4.70% 4.17% 4.38% 4.86% 5.21% 12 /31/2002 12/31/2003 12/31/2004 1Q05 2Q05
Slide 11: Deposit Composition
Deposit Composition June 30, 2005 Total Deposits $2,847,770 CDs & IRAs <$100,000 $559,115 19.6% CDs & IRAs >$100,000 $502,535 17.6% Non-interest bearing DDA $607,690 21.3% MMA & Savings $710,138 24.9% Interest Bearing DDA $468,292 16.4% In Thousands
Slide 12: Bond Portfolio
Bond Portfolio June 30, 2005 Total Market Value of Investment Securities $1,478,349 Municipals $41,780 3% Preferred $24,808 2% US Agencies & Treasury $124,879 8% Corporate $11,092 1% CMOs $258,354 17% MBS $1,023,531 69% In Thousands Portfolio Allocation HTM $ 1,179,110 79.7% AFS $ 305,334(+) 20.3% S
Slide 13: Loan Composition
Loan Composition June 30, 2005 Total Loans $1,520,175 Commercial Real Estate $598,719 39.4% Commercial $238,961 15.7% Construction $200,898 13.2% Home Equity $51,874 3.4% Agriculture $57,440 3.8% Consumer $69,671 4.6% 1-4 Family Residential $302,612 19.9% In Thousands
Slide 14: Loan Growth
Loan Growth Loans Loan/Deposit Ratio 1,6001,400 1,200 1,000 800 600 400 2000 2000 2001 2002 2003 2004 2005 60.00% 55.0 0% 50.00% 45.00% 40.00% 35.00% 30.00 % In Millions 5year CAGR 35.9%
Slide 15: Historical Loan Composition
Historical Loan Composition CAGR 12/31/2002 12/31/2003 12/31/2004 6/30/2005 Loan Composition: Commercial $93.8 13.8% $94.0 12.2% $144.4 13.9% $238.9 15.7% 30.6% Construction $52.4 7.7% $36.5 4.7% $109.6 10.6% $200.9 13.2% 46.8% 1-4 Family Residential $206.6 30.4% $237.1 30.8% $260.5 25.2% $302.6 19.
Slide 16: Merger & Acquisition History
Merger & Acquisition History $30 $25 $20 $15 $10 $5 $0 Nov-98 May-99 Nov-99 May-00 Nov-00 May-01 Nov-01 May-02 Nov-02 May-03 Nov-03 May-04 Nov-04 May-05 In Millions 06/21/99 South Texas Bancshares, Inc. Deal Value: $23.4 Location: Beeville 05/02/02 Paradigm Bank Deal Value: $41.6 Location: Houston 0
Slide 17: Why Invest in PRSP?
Why Invest in PRSP? Excellent asset quality Continuing operating efficiencies High-growth markets Expanding non-interest income Superior Long-Term Returns 17
Slide 18: Total Return
Total Return Performance (Percent) 350 300 250 200 150 100 50 -50 May-99 Feb-00 Nov-00 Aug-01 Jun-02 Mar-03 Dec-03 Sep-04 Jun-05 IPO PRSP Bank NASDAQ Russell 3000 $100,000 invested in PRSP at IPO on 11/12/1998 was worth $ 508,370 on 06/30/2005 Source: CRSP, Center for Research in Security Prices, Gr
Slide 19: Contact Information
Contact Information Corporate Headquarters Investor Contacts Prosperity Bank Plaza David Zalman 4295 San Felipe Chief Executive Officer Houston, Texas 77027 979.543.2200 david.zalman@prosperitybanktx.com 713.693.9300 Telephone David Hollaway 713.693.9309 Fax Chief Financial Officer www.prosperityban
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Slide 21: Annual Results
Annual Results As Originally Reported (Dollars in thousands, except EPS) 5 Year 1999 2000 2001 2002 2003 2004 CAGR Assets $608,673 $703,073 $1,263,169 $1,823,286 $2,400,487 $2,697,228 34.68% Loans $223,505 $248,665 $424,400 $679,559 $770,053 $1,035,513 35.89% Deposits $534,756 $634,262 $1,123,397 $1
Slide 22: Quarterly Results
Quarterly Results As Originally Reported (Dollars in thousands, except EPS) Percent 2Q04 3Q04 4Q04 1Q05 2Q05 Change 2Q04-2Q05 Assets $2,434,344 $2,713,314 $2,697,228 $3,479,747 $3,446,816 41.59% Loans $790,920 $1,007,420 $1,035,513 $1,500,138 $1,520,175 92.20% Deposits $2,079,917 $2,327,278 $2,317,0
Slide 23: PRSP Completed Acquisitions
PRSP Completed Acquisitions All announced bank acquisitions At Announcement PRSP Sellers Sellers’ Asset Deal Announce Accounting Assets Assets Contribution Value Date Seller City State Type Consideration Method ($000) ($000) (%) ($ 000) 10/26/2004 FirstCapital Bankers, Inc. Corpus Christi TX Thrift
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