Prosperity Bancshares, Inc. · NYSE:PB
Prosperity Bancshares — Q2 2011 Earnings Presentation
19 slides from Prosperity Bancshares's earnings presentation, Aug 2, 2011
Slide 1: Prosperity Bancshares, Inc. - Bankers... not just a bank
—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 $10 billion in assets rd 3 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 yea
Slide 4: 2Q11 Highlights
2Q11 Highlights Net Interest Margin increased to 4.06% for the second quarter 2011 Non- Performing Assets to Average Earning Assets remain low at 0.15% or $12.680 million Strong Earnings of $35.092 million or $0.75 per share (diluted) and 1.45% Return on Assets for the second quarter 2011 Tangible C
Slide 5: Banking Center Network
Banking Center Network The Dallas/ Fort Worth MSA is the 175 Full Service Locations nation’s 4th largest 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 6/30/11 $1,600 Loans = $3.665 Billion $8,400 Deposits = $7.668 Billion Assets = $9.657 Billion $1,400 $7,200 5 year CAGR $1,200 Loans = 18% $6,000 Deposits = 21% $1,000 Assets = 21% $4,800 $800 $3,600 $600 Loans Deposits $2,400
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 $0.68 $0.75 $0.75 $0.50 $0.25 $0.00 2005 2006 2007 2008 2009 2010 2Q 2010 2Q 2011 *Excluding the non-cash after tax impairment charge related to FNMA/FLHMC preferred stock of $6.5 million
Slide 8: Deposit Composition
Deposit Composition June 30, 2011 2Q11 Cost of Deposits= 0.57% Non-interest CDs & IRAs CDs & IRAs Bearing DDA >$100,000 <$100,000 23.33% 14.78% 13.53% Interest MMA & Bearing DDA Savings 17.72% 30.64% Amount % of total Non-interest Bearing DDA $ 1,788,756 23.33 % Interest Bearing DDA 1,358,649 17.72
Slide 9: Net Interest Margin
Net Interest Margin * * Tax equivalent- annualized 4.30% 4.24% 4.20% 4.20% 4.10% 4.09% 4.08% 4.00% 4.02% 3.99% 4.06% 4.00% 3.98% 3.97% 3.90% Net Interest Margin for 2008 = 3.96% 3.80% Net Interest Margin for 2009 = 4.08% Net Interest Margin for 2010 = 4.04% 3.70% 3.60% 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10
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 35.00% $400 Ratio $0 30.00% 2004 2005 2006 2007 2008 2009 2010 2Q10 2Q11 10 $ in millions
Slide 11: Loan Portfolio
Loan Portfolio June 30, 2011 Loans/ Deposits: 47.8% Agriculture CRE Loan Breakout 4.39% Home Equity Approximate $ in million Consumer 3.58% Owner Occupied: $516 2.21% Commercial Office Building: $188 R.E. 1-4 Family 38.51% Multi-family: $82 Residential Strip Center: $150 25.68% Church: $115 Construc
Slide 12: Asset Quality – NPA/ Loans + OREO
Asset Quality – NPA*/ Loans + OREO * Includes loans past due 90 days and still accruing 5.00% PRSP NPA*/Loans + OREO Peer NPA*/Loans + OREO 4.50% 4.06% 3.88% 4.00% 3.63% 3.91% 3.50% 3.00% 2.92% 2.50% 2.26% 2.00% 1.50% 1.02% 1.18% 0.83% 0.97% 1.00% 0.84% 0.70% 0.49% 0.64% 0.38% 0.48% 0.36% 0.50% 0.13
Slide 13: Asset Quality – NCO/Average Loans
Asset Quality – NCO/Average Loans (Annualized) 1.80% PRSP NCO / Loans Peer NCO / Loans 1.60% 1.38% 1.40% 1.29% 1.20% 1.00% 0.96% 0.80% 0.77% 0.74% 0.60% 0.48% 0.40% 0.41% 0.40% 0.32% 0.30% 0.29% 0.23% 0.20% 0.19% 0.23% 0.19% 0.18% 0.17% 0.20% 0.08% 0.06% 0.03% 0.04% 0.13% 0.14% 0.00% 2002 2003 2004
Slide 14: Contact Information
Contact Information Corporate Headquarters Investor Contacts Prosperity Bank Plaza David Zalman 4295 San Felipe Chairman & Chief Executive Officer Houston, Texas 77027 979.543.2200 david.zalman@prosperitybanktx.com 281.269.7199 Telephone Dan Rollins 281.269-7222 Fax President & Chief Operating Offic
Slide 15: 2nd Quarter 2011 Earnings
2nd Quarter 2011 Earnings
Slide 16: Financial Highlights
Financial Highlights As Originally Reported ($ in thousands, except EPS) 2005 2006 2007 2008 2009 2010 2Q 2011 Non Interest Income $30,021 $33,982 $52,923 $52,370 $60,097 $53,833 $13,530 Net Interest Income $110,897 $138,145 $200,435 $227,729 $307,101 $318,148 $83,630 Net Income $47,860 $61,725 $90,
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 12/31/2005 12/31/2006 12/31/2007 12/31/2008 12/31/2009 12/31/2010 CAGR Loan Composition Commercial $ 222.8 14.4% $ 297.7 13.7% $ 453.6 14.5% $ 499.1 14.0% $ 415.5 12.3% $ 440.5 12.6% 14.6% Construction $ 206.7 13.4% $ 433.2 19.9% $ 683.2 21.7% $ 666.1 18.6% $ 557.2 16.5%
Slide 19: 2nd Quarter 2011 Earnings
2nd Quarter 2011 Earnings
Prosperity Bancshares — Q2 2011 Earnings Presentation on 6ix