Prosperity Bancshares, Inc. · NYSE:PB
Prosperity Bancshares — Investor Presentation (2018)
26 slides from Prosperity Bancshares's investor presentation, 2018
Slide 1: Investor Presentation First Quarter 2018
Investor Presentation First Quarter 2018
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 Bancshares, Inc.® and its subsidiaries constitute “forward-looking statements” withi
Slide 3: 2018 First Quarter Highlights
2018 First Quarter Highlights • Net income of $74.361 million and earnings per share (diluted) of $1.07 for three months ending March 31, 2018 • Assets of $22.472 billion, loans of $10.011 billion, and deposits of $17.333 billion at March 31, 2018 • Common equity tier 1 ratio was 15.31% and leverage
Slide 4: Strong Presence in Texas and Oklahoma
Strong Presence in Texas and Oklahoma • A Texas-based financial holding company with approximately $22.472 billion in total assets • Ranked #3 in deposit market share in Texas (1) • Shareholder driven with 5.1% fully diluted insider ownership (2) • Successful integration of 42 acquisitions (whole ba
Slide 5: Balance Sheet Summary
Balance Sheet Summary ($ in millions) $22,500 $4,800 Data as of 03/31/2018 Loans $10.011 Bn Deposits $17.333 Bn $4,000 $18,000 Assets $22.472 Bn 10 Year CAGR (1) Loans 12.3% $3,200 $13,500 Deposits 13.6% Assets 13.5% $2,400 $9,000 $1,600 $4,500 $800 $0 $0 2007 2008 2009 2010 2011 2012 2013 2014 2015
Slide 6: Net Income
Net Income ($ in millions) $350.0 10 Year CAGR:(1) 12.5% $297.4 $300.0 $286.6 5 Year CAGR:(2) 10.1% $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 $84.2 $84.5 $68.6 $74.4 $100.0 $65.9 $72.8 $50.0 $0.0 (3) 2007 2008 2009 2010 2011 2012
Slide 7: Earnings per Share Growth
Earnings per Share Growth $5.00 10 Year EPS CAGR:(1) 7.3% $4.32 5 Year CAGR:(2) 3.9% $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 $1.94 $1.86 $2.00 $0.99 $1.07 $0.95 $1.04 $1.00 $0.00 (3) 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 1Q17 1
Slide 8: Net Interest Margin
Net Interest Margin 4.50% 4.06% 4.08% 4.04% 3.96% 3.98% 4.00% 3.80% 3.58% 3.53% 3.50% 3.35% 3.38% 3.35% 3.29% 3.20% 3.20% 3.13% 3.16% 3.19% 3.16% 3.09% 3.11% 3.12% 3.00% 2.50% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 1Q17 1Q18 Net Interest Margin (Tax Equivalent) Net Interest Margin (E
Slide 9: Acquisitions & Efficiency Ratio
Acquisitions & Efficiency Ratio ($ in millions) $25,000 $22,037 $22,331 $22,587 $22,472 60.0% $21,508 $20,000 $18,642 55.0% 50.0% 46.2% 46.5% 46.3% $14,584 $15,000 44.8% 43.5% 44.2% 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% $6,372 35.0% $5,000 30.0% $0 25.0%
Slide 10: Return on Average Tangible Common Equity
Return on Average Tangible Common Equity ($ in millions) 40.00% $2,500 30.03% $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% 15.06% 15.82% 15.43% $1,000 10.00% $500 0.00% (1) (1) $0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 1Q17 1Q18 ROATCE Ta
Slide 11: Return on Average Assets
Return on Average Assets 2.00% 1.75% 1.47% 1.50% 1.44% 1.44% 1.38% 1.38% 1.36% 1.35% 1.33% 1.32% 1.26% 1.25% 1.22% 1.23% 1.25% 1.20% 1.00% 0.75% (1) (1) 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 1Q17 1Q18 11 (1) Interim periods shown on an annualized basis
Slide 12: Deposit Composition
Deposit Composition As of March 31, 2018 ($ in millions) CDs & Other Time $mm Cost (%)(1) 12.4% Non-Interest Bearing Demand Non-Interest Bearing Demand $5,708 0.00% 32.9% Money Interest Bearing Demand $4,106 0.47% Market & Savings Money Market & Savings $5,377 0.39% 31.0% Interest Bearing CDs & Othe
Slide 13: Loan Growth
Loan Growth ($ in millions) $12,000 65.0% $10,021 $10,011 $10,000 59.1% $9,622 $9,739 60.0% 58.4% $9,244 $9,439 57.8% 57.2% 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% 44.5% $4,000 $3,567 $3,377 $3,485 $3,766 45.0% $3,137 $2,177 $2,000 40.0% $0 35.0%
Slide 14: Loan Portfolio Overview
Loan Portfolio Overview As of March 31, 2018 ($ in millions) Loan Portfolio by Category & Geography Loans by Rate Structure Agriculture Home (Inc. Farm) Equity 1-4 Family $671 $285 $2,438 6.7% 2.8% 24.4% Floating C&I Fixed 36.0% Construction 40.0% $1,149 $1,502 ~3.1yr 11.5% 15.0% Avg. Life Consumer
Slide 15: Loan Portfolio Segment Detail
Loan Portfolio Segment Detail Commercial Real Estate Detail Energy Detail - Outstanding Balance ($ in millions) ($ in millions) Office Building Shopping Center $337 $498 10.1% 15.0% Multi-Family $168 5.0% Producers C&I $169 $281 Servicers 45.1% $3,331mm $375mm 8.5% $206 Total Total 54.9% Other Owner
Slide 16: Houston MSA CRE Portfolio
Houston MSA CRE Portfolio As of March 31, 2018 ($ in millions) Owner Occupied $537 Shopping Center / Retail Shopping Center / Retail $230 Owner 20.1% Occupied Commercial & Industrial $123 46.9% Commercial & Office $73 Industrial 10.8% Medical $53 Hotel $43 Office 6.4% Multi-Family $38 Other $47 Medi
Slide 17: Asset Quality
Asset Quality NPAs / Loans + OREO 5.00% 4.88% 4.65% 3.95% 4.00% 3.00% 2.82% 2.63% 1.91% 2.00% 1.35% 1.07% 1.04% 0.93% 1.00% 0.79% 0.49% 0.48% 0.45% 0.46% 0.50% 0.42% 0.40% 0.32% 0.40% 0.37% 0.33% 0.25% 0.29% 0.00% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 1Q17 1Q18 UBPR Peer Group (1) P
Slide 18: Securities Portfolio Detail
Securities Portfolio Detail As of March 31, 2018 ($ in millions) Other Securities 0.1% U.S. Treasury Securities / U.S. Gov. Obligations Mortgage-Backed Securities $9,277 0.3% States & Political Subdivisions $292 Mortgage- States & Political Collateralized Mortgage Obligations $96 Backed Subdivisions
Slide 19: Dividend History
Dividend History $1.60 (d) $1.38 $1.40 Compounded Annual Growth (c) Rate from 2003 - 2017 was 13.0% $1.24 (b) $1.20 $1.12 (a) $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 2015 2
Slide 20: Total Return Performance
Total Return Performance IPO (November 12, 1998) to March 31, 2018 1,800 $100,000 invested in Prosperity’s IPO on 11/12/1998 was worth $1,619,536 1,600 on 3/31/2018 1,400 1,200 1,000 800 600 400 200 0 11/12/1998 11/12/2001 11/12/2004 11/12/2007 11/12/2010 11/12/2013 11/12/2016 PB (+1,519.5%) S&P 500
Slide 21: Presence in Fast-Growing Markets
Presence in Fast-Growing Markets Positioned in Strong Markets Top 10 Fastest Growing MSAs in the U.S. (1) 2018 - 2023 • Today, Texas is the 2nd largest Prosperity Population state in the U.S. with over 28 million residents Prosperity Deposits Growth Metropolitan Statistical Area Presence ($mm) (%) L
Slide 22: Corporate Relocations to Texas
Corporate Relocations to Texas California AccentCare Active Networks The Allen Group, Inc. Allied Electronic Recycling Corporate Relocations to Texas (2004 – Present) ALL-Q-TELL Corp. Ameriflight LLC Canada Banker’s Toolbox, Inc. Absolute Software (ABT) Boreland Software Corporation Bio-Solutions Co
Slide 23: Houston Market Highlights
Houston Market Highlights Market Highlights Houston Franchise • Houston MSA is the 5th largest in the United States by population with 7 million people • Headquarters to 20 Fortune 500 companies, and only New York City is home to more publicly traded companies • Home of the Texas Medical Center – th
Slide 24: 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 7.4 million people • Headquarters to 22 Fortune 500 companies • As of November 2017, Dallas had the 2nd highest year-over-year percent j
Slide 25: Austin Market Highlights
Austin Market Highlights Market Highlights Austin Franchise • Ranked #1 place to live in the U.S. in 2017 by U.S. News and World Report • Ranked by Forbes as the #8 best place in the United States for businesses and careers in 2017 • In the Austin metro, 41.5% of adults have at least a bachelor’s de
Slide 26: 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 David Hollaway Chief Financial Officer 281-269-7199 david.hollawa