Prosperity Bancshares, Inc. · NYSE:PB

Prosperity Bancshares — Fourth Annual Community Bank Investor Conference (July 2003)

19 slides from Prosperity Bancshares's conference presentation, Jul 31, 2003

  1. Slide 1: Fourth Annual Community Bank Investor Conference

    [LOGO] Fourth Annual Community Bank Investor Conference PROSPERITY BANCSHARES, INC. SM

  2. Slide 2: Safe Harbor Statement

    “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

  3. Slide 3: Prosperity is a Track Record of Success

    Prosperity is . . . . a Track Record of Success • A Texas based Financial Holding Company • Customer focused • Results oriented • Shareholder driven • Accretive acquisitions • Excellent asset quality • Fast growing • Serving Houston, Dallas and many communities along the NAFTA Highway southwest of H

  4. Slide 4: Recognition by Leading Business and Industry Publications

    Recognition by Leading Business and Industry Publications [PHOTOS]

  5. Slide 5: Full Service Banking Centers Existing Proposed

    49 Full Service Banking Centers 45 Existing 4 Proposed 73% of deposits are within 80 miles of Houston 12% of deposits are in the Dallas area 29 Locations in Houston CMSA 9 Locations in Dallas MSA 5 Existing 4 Proposed www.properitybanktx.com

  6. Slide 6: Total Return Performance

    Total Return Performance [GRAPH] Source: CRSP, Center for Research in Security Prices, Graduate School of Business, The University of Chicago 2003. Used with permission. All rights reserved. crsp.com SNL Financial LC (434) 977-1600 © 2003

  7. Slide 7: 2002 Highlights

    2002 Highlights EPS up 54% from 2001 Total Assets up 44% from 2001 Return on Average Equity of 18.7% Five (5) Acquisitions — Added 13 locations — Added $489 million in Assets Total Loans up 60% from 2001 Improved Houston visibility Total Deposits up 41% from 2001 Entered Dallas/Fort Worth Metroplex

  8. Slide 8: Second Quarter 2003 Highlights

    Second Quarter 2003 Highlights EPS up 17% from 2Q02 Total Assets up 46% from 2Q02 Return on Average Equity of 16% Total Loans up 46% from 2Q02 Three (3) Acquisitions — Adding 6 locations — Adding $336 million in Assets Total Deposits up 44% from 2Q02 Improved Dallas visibility Fee Based Income up 72

  9. Slide 9: Balance Sheet Summary

    Balance Sheet Summary As Originally Reported [GRAPH]

  10. Slide 10: Annual Results

    Annual Results 1997 1998 1999 2000 2001 2002 5 Year CAGR Assets $ 320,143 $ 436,312 $ 608,673 $ 703,073 $ 1,262,325 $ 1,822,256 41.60 % Loans $ 120,578 $ 170,478 $ 223,505 $ 248,665 $ 424,400 $ 679,559 41.30 % Deposits $ 291,516 $ 390,659 $ 534,756 $ 634,262 $ 1,123,397 $ 1,586,611 40.30 % Net Incom

  11. Slide 11: Quarterly Results

    Quarterly Results 6/30/02 6/30/03 Growth Growth Rate Assets $ 1,360,356 $ 1,983,277 $ 622,921 45.8 % Loans $ 478,935 $ 699,525 $ 220,590 46.1 % Deposits $ 1,211,933 $ 1,746,548 $ 534,615 44.1 % Net Income $ 4,795 $ 6,497 $ 1,702 35.50 % EPS (diluted) $ 0.29 $ 0.34 $ 0.05 17.2 % ROAA (annualized) 1.4

  12. Slide 12: Deposit Composition

    Deposit Composition As of June 30, 2003 $1.747 Billion [GRAPH] CDs & IRAs>100 $ 296.3 % Non-interest bearing DDA $ 362.2 % Interest bearing DDA $ 366.2 % CDs & IRAs<100 $ 321.8 % MMA & Savings $ 400.0 %

  13. Slide 13: Loan Composition

    Loan Composition As of June 30, 2003 $699.525 Million [CHART] Comsumer $ 56.2 % Agriculture $ 42.9 % Commercial $ 312.5 % 1-4 Family Residential $ 240.9 % Construction $ 47.5 % Real Bankers

  14. Slide 14: Credit Quality

    Credit Quality As Originally Reported [GRAPH] % of Average Earning Assets Texas Peer Group includes: CFR; IBOC; SWBT; TRBS; SBIB; CBSA; FFIN; SBSI; MCBI; SBIT; TXIU; GNTY; JXVL (Data as of 3/31/03) Real Bankers

  15. Slide 15: PRSP Completed Acquisitions

    PRSP Completed Acquisitions All announced bank acquisitions At Announcement Announce Date Seller City State Type Consideration Accounting Method PRSP Assets ($000) Sellers Assets ($000) Sellers’ Asset Contribution (%) Deal Value ($M) 03/05/2003 BankDallas SSB Dallas TX Thrift Cash Purchase 1,822,256

  16. Slide 16: Why Invest in PRSP

    Why Invest in PRSP Excellent asset quality Continuing operating efficienc’ Expanding non-interest income High-growth Texas operations Superior Long-term returns Feat Bankers not just a bank.

  17. Slide 17: Prosperity Bancshares, Inc. Contact Information

    Prosperity Bancshares, Inc. 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 Financi

  18. Slide 18: We are here to help our customers succeed

    “We are here to help our customers succeed” REAL BANKERS... NOT JUST A BANK Chris Bagley Anne Farra Bob Benter President, President, President, Waugh Drive Medical Center Post Oak Banking Center Banking Center Banking Center [LOGO] PROSPERITY BANK Forty-Two Locations in Texas to Serve You [LOGO] Mem

  19. Slide 19: Prosperity Bancshares, Inc.

    Prosperity Bancshares, Inc. SM [LOGO] —PROSPERITY— BANCSHARES, INC. SM

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