Prosperity Bancshares, Inc. · NYSE:PB
Prosperity Bancshares — Investor Presentation (2019)
27 slides from Prosperity Bancshares's investor presentation, 2019
Slide 1: Investor Presentation Second Quarter 2019
Investor Presentation Second Quarter 2019
Slide 2: Important Information
Important Information Cautionary Notes on Forward-Looking Statements This communication contains statements which, to the extent they are not statements of historical fact, constitute “forward-looking statements” within the meaning of the federal securities laws, including Section 27A of the Securit
Slide 3: 2019 Second Quarter Highlights
2019 Second Quarter Highlights • Net income of $82.258 million and earnings per share (diluted) of $1.18 for three months ended June 30, 2019 • Assets of $22.375 billion, loans of $10.587 billion, and deposits of $16.888 billion at June 30, 2019 • Common equity tier 1 ratio was 16.59% and leverage r
Slide 4: Strong Presence in Texas and Oklahoma
Strong Presence in Texas and Oklahoma • A Texas-based financial holding company with $22.375 billion in total assets • Ranked #3 in deposit market share in Texas (1) • Texas and Oklahoma continue to benefit from strong economies, and are home to 54 Fortune 500 headquartered companies • Shareholder d
Slide 5: Recently Announced Merger with LegacyTexas
Recently Announced Merger with LegacyTexas Partnering to Create a Premier Franchise Pro Forma Branch Footprint with LegacyTexas Pro Forma Deposit Market Share - Texas Pro Forma Deposit Market Share – Dallas / Ft. Worth Area Market No. of Deposits Share Rank Institution (State) Branches ($ millions)
Slide 6: Balance Sheet Summary
Balance Sheet Summary ($ in millions) $25,000 $4,800 Data as of 06/30/2019 Loans $10.587 Bn Deposits $16.888 Bn Assets $22.375 Bn $4,000 $20,000 10 Year CAGR (1) Loans 11.3% $3,200 Deposits 9.0% $15,000 Assets 9.6% $2,400 $10,000 $1,600 $5,000 $800 $0 $0 2008 2009 2010 2011 2012 2013 2014 2015 2016
Slide 7: Net Income
Net Income ($ in millions) $350.0 10 Year CAGR:(1) 14.3% $321.8 $311.7 5 Year CAGR:(2) 7.8% $297.4 $300.0 $286.6 $274.5 $272.2 $255.5 $250.6 $259.3 $250.0 $236.2 $221.4 $200.0 $185.7 $167.9 $141.7 $154.9 $150.0 $127.7 $111.9 $82.3 $81.6 $100.0 $84.5 $81.5 $77.7 $50.0 $0.0 (3) 2008 2009 2010 2011 201
Slide 8: Earnings Per Share
Earnings Per Share $5.00 10 Year EPS CAGR:(1) 9.5% $4.61 $4.32 $4.46 5 Year EPS CAGR:(2) 4.8% $4.09 $3.94 $3.92 $4.00 $3.65 $3.65 $3.73 $3.43 $3.60 $3.23 $3.01 $2.98 $3.07 $3.00 $2.73 $2.41 $2.00 $1.86 $1.17 $1.18 $1.11 $1.17 $1.00 $0.00 (3) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2Q1
Slide 9: Net Interest Margin
Net Interest Margin 4.50% 4.08% 4.04% 3.98% 4.00% 3.96% 3.80% 3.58% 3.53% 3.50% 3.35% 3.38% 3.35% 3.29% 3.28% 3.20% 3.16% 3.13% 3.16% 3.19% 3.18% 3.18% 3.12% 3.14% 3.09% 3.00% 2.50% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2Q18 2Q19 Net Interest Margin (Tax Equivalent) Net Interest Mar
Slide 10: Efficiency Ratio
Efficiency Ratio ($ in millions) $25,000 $22,331 $22,587 $22,693 $22,571 $22,375 $21,508 $22,037 60.0% $20,000 $18,642 55.0% 50.0% 46.5% 46.3% $14,584 $15,000 44.8% 43.5% 43.7% 44.0% 43.7% 42.8% 42.5% 42.8% 45.0% 41.6% 41.8% 41.9% $9,477 $9,823 $10,000 $9,072 $8,850 40.0% 35.0% $5,000 30.0% $0 25.0%
Slide 11: Return on Average Tangible Common Equity
Return on Average Tangible Common Equity ($ in millions) 40.00% $2,500 $2,000 30.00% 28.66% 27.40% 24.16% 25.11% 24.24% 21.93% 22.52% $1,500 19.98% 20.00% 16.95% 16.00% 16.48% 15.06% 14.82% $1,000 10.00% $500 0.00% (1) (1) $0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2Q18 2Q19 ROATCE Ta
Slide 12: Return on Average Assets
Return on Average Assets 2.00% 1.75% 1.47% 1.44% 1.46% 1.50% 1.44% 1.42% 1.38% 1.36% 1.35% 1.33% 1.26% 1.25% 1.20% 1.22% 1.25% 1.00% 0.75% (1) (1) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2Q18 2Q19 12 (1) Interim periods shown on an annualized basis
Slide 13: Deposit Composition
Deposit Composition As of June 30, 2019 ($ in millions) CDs & Other Time $mm Cost (%)(1) 12.3% Noninterest- Bearing Noninterest-Bearing Demand $5,691 0.00% Demand Interest-Bearing Demand $3,531 0.63% 33.7% Money Money Market & Savings $5,596 0.90% Market & Savings CDs & Other Time $2,069 1.57% 33.1%
Slide 14: Loan Growth
Loan Growth ($ in millions) $12,000 65.0% 62.7% $10,370 $10,147 $10,021 $10,587 $10,000 $9,439 $9,622 60.0% $9,244 60.1% 59.8% 56.2% 55.6% $8,000 $7,775 55.0% 53.4% 52.2% 50.8% $6,000 48.8% 50.0% $5,180 46.5% 46.7% 46.7% $3,766 44.5% $4,000 $3,567 $3,377 $3,485 45.0% $2,000 40.0% $0 35.0% 2008 2009
Slide 15: Loan Portfolio Overview
Loan Portfolio Overview As of June 30, 2019 ($ in millions) Loan Portfolio by Category & Geography Loans by Rate Structure Home Agriculture Equity (Inc. Farm) $257 1-4 Family $736 2.4% $2,457 7.0% 23.2% Fixed Floating C&I Construction 37.9% 38.6% $1,159 $1,739 ~2.9yr 10.9% 16.4% Avg. Life Comm. R.E.
Slide 16: Loan Portfolio Segment Detail
Loan Portfolio Segment Detail Commercial Real Estate Detail Energy Detail - Outstanding Balance ($ in millions) Office ($ in millions) Shopping Building Center / Retail $353 $573 Multi- 10% 16% Family $185 5% Servicers $272 C&I 74% $283 $367mm Producers $3,552mm 8% $95 Total Total 26% Other Owner $6
Slide 17: Houston MSA CRE Portfolio
Houston MSA CRE Portfolio As of June 30, 2019 ($ in millions) Owner Occupied $540 Shopping Center / Retail $277 Shopping Center / Retail Commercial & Industrial $126 23.0% Owner Office $81 Occupied 44.9% Commercial & Medical $30 Industrial 10.4% Hotel $52 Office Multi-Family $46 6.8% Other $50 Medic
Slide 18: Asset Quality
Asset Quality NPAs / Loans + OREO 5.00% 4.88% 4.65% 3.95% 4.00% 3.00% 2.82% 2.63% 1.91% 2.00% 1.35% 1.07% 1.04% 0.93% 1.00% 0.79% 0.66% 0.49% 0.48% 0.45% 0.46% 0.50% 0.40% 0.32% 0.40% 0.37% 0.31% 0.39% 0.25% 0.29% 0.18% 0.00% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2Q18 2Q19 UBPR
Slide 19: Securities Portfolio Detail
Securities Portfolio Detail As of June 30, 2019 ($ in millions) U.S. Government Agency Securities 0.3% Mortgage-Backed Securities $8,467 Mortgage- States & Political Backed Collateralized Mortgage Obligations $246 Subdivisions Securities 2.4% States & Political Subdivisions $216 94.6% U.S. Governmen
Slide 20: Dividend History
Dividend History $1.60 (d) $1.49 (c) $1.38 $1.40 Compounded Annual Growth (b) Rate from 2003 - 2018 was 12.6% $1.24 (a) $1.20 $1.12 $0.99 $1.00 $0.89 $0.80 $0.80 $0.72 $0.64 $0.57 $0.60 $0.51 $0.46 $0.41 $0.40 $0.35 $0.31 $0.25 $0.20 $0.00 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Slide 21: Total Return Performance
Total Return Performance IPO (November 12, 1998) to June 30, 2019 $100,000 invested in Prosperity’s IPO on 11/12/98 was worth $1,514,722 on 6/30/2019 21 Source: S&P Global. Market data as of 6/28/2019.
Slide 22: Presence in Fast-Growing Markets
Presence in Fast-Growing Markets Positioned in Strong Markets Top 10 Fastest Growing MSAs in the U.S. (1) Prosperity 2019 - 2024 • Today, Texas is the 2nd largest state in the U.S., and largest in Prosperity Deposits Population the 48 contiguous U.S. with over Metropolitan Statistical Area Presence
Slide 23: Corporate Relocations to Texas
California Corporate Relocations to Texas Aatonomy AccentCare Active Networks AEND Industries, Inc. The Allen Group, Inc. Allied Electronic Recycling Corporate Relocations to Texas (2004 – Present) ALL-Q-TELL Corp. Canada Ameriflight LLC Absolute Software (ABT) Banker’s Toolbox, Inc. Bio-Solutions C
Slide 24: Houston Market Highlights
Houston Market Highlights Market Highlights Houston Franchise • Houston MSA is the 5th largest in the United States by population with 7.0 million people • Headquarters to 20 Fortune 500 companies in 2019 • For the twelve months ended April 2019, Houston added 86,100 jobs, representing a growth rate
Slide 25: Dallas / Ft. Worth Market Highlights
Dallas / Ft. Worth Market Highlights Market Highlights Dallas / Ft. Worth Franchise • Dallas / Ft. Worth MSA is the 4th largest in the United States by population with 7.6 million residents • Headquarters to 24 Fortune 500 companies in 2019, up from 22 in 2018, with five in the top 100 • Dallas has
Slide 26: Austin Market Highlights
Austin Market Highlights Market Highlights Austin Franchise • Ranked #1 place to live in the U.S. in 2019 by U.S. News and World Report for the third year in a row • For the twelve months ended May 2019, Austin added 25,400 jobs, representing a growth rate of 2.4% • Wholesale trade was Austin’s fast
Slide 27: Contact Information
Contact Information Corporate Headquarters Investor Contacts Prosperity Bank Plaza David Zalman 4295 San Felipe Chairman & CEO Houston Texas 77027 979-543-2200 david.zalman@prosperitybankusa.com 281-269-7199 Telephone 281-269-7222 Fax Cullen Zalman Investor Relations 281-269-7176 cullen.zalman@prosp