Prosperity Bancshares, Inc. · NYSE:PB
Prosperity Bancshares — Merger or Acquisition (November 2005)
16 slides from Prosperity Bancshares's merger presentation, Nov 17, 2005
Slide 1: Prosperity Bancshares Acquisition of SNB Bancshares
PROSPERITY Acquisition of November BANCSHARES, 16, 2005 INC.®
Slide 2: Forward-looking statements safe harbor
“Safe under The and materially effectiveness Exchange Copies its statements Harbor” the subsidiaries. of Private Prosperity Commission. from ofStatement contained those spending, Securities Forward-looking Bancshares, in the in investment Litigation forward-looking this presentation Inc.’s statement
Slide 3: Acquisition Summary
Acquisition Acquirer: Acquiree: Price Aggregate Consideration: Exchange Termination Walk-away: whole). Board Due 3 (1)Diligence: Assuming Per Appointments: Otherwise, Share: Prosperity SNB Ratio: Value: Summary In Fee: 60% the Completed Bancshares, a$18.59 0.3577 $PRSP $242.7 event 10.0 SNBT stock B
Slide 4: Strategic rationale and franchise value
Enhances Gives Expands In-market, SNBT Improves Creates 4 Prosperity serves aProsperity’s company Prosperity’s Franchise lowsome risk thewith of transaction Value #2 footprint the Houston deposit almost most into affluent MSA $5 market billion thedeposit fast share markets ingrowing assets (14%) mar
Slide 5: Financial benefits and accretive opportunity
Enhances Accretive Call Eliminate Ability Fund Significantly Opportunity SNBT’s Allows 9.72% Pricing Increases 5 trust strong to of Prosperity performance preferred market Shareholder restructure to floating theloan to GAAP lowers transaction increase capitalization growth rate tosecurities and SNB’
Slide 6: Transaction Highlights
Transaction Anticipated Operational Pre-tax Acquisition Book Tangible 2005 2006 Deposit (Assets: 61) Assuming First Value Cost 21.7% Premium: Book Call Closing: Price ($7.10 Highlights Integration: Savings: aValue EPS PRSP to:(1) 20.9% share): ($0.67): ($0.75): Second ($7.10 stock 29.0% Second 2.62
Slide 7: Comparable Texas Transactions
Comparable Texas General Buyer (%) Compass Average Prosperity Incorporated Weatherford 09/19/05 Mixed 459 1,710 54 107 124 165 51 25.6 24.7 243 * Note: 7 Excludes Source: 23.8 25.7 ROE 25.7 32.0 nm 22.6 29.8* 330 323 Comparables 23.6 metropolitan Name Mixed 284 323 334 Information Median 389 315 378
Slide 8: Pro Forma Balance Sheet Data
ProinIncludes ($ Data Balance Loans Loan Securities Total Deposits FHLB Common Tangible Market (1) (2) (3) (4) 8 Forma thousands) as Assets Intangibles Loss HFI Borrowings Capitalization of Sheet Common 2,879,316 Equity 1,488,339 Quarter Reserves Balance 1,514,227 all cash core retained $ 3,493,972
Slide 9: Pro Forma Branch Network
Pro Forma Active Prospective 9 SNBT PRSPBranch SNBT PRSP Branch Branch Branch Network Branch
Slide 10: Pro Forma Houston Branch Network
Pro Forma Prospective Active 10 SNBT PRSPHouston SNBT Branch Branch Branch Branch Network
Slide 11: Deposit Market Share Analysis
Deposit COUNTY: 24 624,315 15.64 MSA: Rank 1 2 3 4 5 6 7 8 Pro 9 10 12 13 14 15 18 Top Totals 41,426,391 Total 41.52 11Wells Washington SNB Capital JPMorgan Bank Zions Golden Compass Sterling Cullen/Frost Woodforest BOK Source: Texas Temple-Inland Comerica Compass MetroCorp Franklin Prosperity Moody
Slide 12: Fort Bend County: fast-growing market
FortSources: Fast-growing 26.6% 27.6% Versus Ranks Median Leads 12 Bend the second historical projected 10.8% 10.6% household nation County ESRI, county for in population the inTexas ACCRA income its nation with rate andan of for The growth 6.2% 6.3% attractive homeownership approximately median Cou
Slide 13: Pro Forma Loan Portfolio
Dollars Prosperity SNB Pro Amount Commercial Construction 1-4 Consumer Agriculture Home Other Gross Less Total Loans/Deposits: 13 Note: Family Forma unearned Bancshares, Loans 0.1% 345 Loans Equity in% Data thousands 0.1 0.0 Bancshares, 4.0% 60,113 2.0% 13,135 3.4% 73,248 Loan of Residential 3.8% 2.
Slide 14: Pro Forma Deposit Composition
Dollars Prosperity SNB Cost Pro Amount Non-interest Interest MMA CDs Total 14 Note: Forma &of Bancshares, Deposits &IRAs deposits:1.61% deposits:2.41% funding: in Bearing % Balances Savings thousands Bancshares, Deposit ofbearing <$100,000 >$100,000 total $2,879,316 $738,319 $3,617,635 DDA 3.15% 25.
Slide 15: Corporate Contacts
Contact Corporate Prosperity 4295 Houston, david.zalman@prosperitybanktx.com 713.693.9309 www.prosperitybanktx.com David dan.rollins@prosperitybanktx.com 713.693.9300 Chief 15 david.hollaway@prosperitybanktx.com 979.543.2200 San Financial Hollaway Information Texas Felipe Headquarters Bank Telephone
Slide 16: Prosperity Bancshares, Inc.
PROSPERITY BANCSHARES, INC.®
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