Prosperity Bancshares, Inc. · NYSE:PB
Prosperity Bancshares — Q4 2009 Earnings Presentation
20 slides from Prosperity Bancshares's earnings presentation, Feb 24, 2010
Slide 1: Prosperity Bancshares, Inc.
—PRO BANCSHARES, INC: ankers... not just a bank: 7 =
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 $9 billion in assets 2nd largest Texas based commercial bank by Texas deposits Strong balance sheet growth – 10 year CAGR of 31% loans, 30% deposits and 31% assets Strong earnings growth – 10 year
Slide 4: 4Q09 Highlights
4Q09 Highlights Net Interest Margin was 4.24% for the three months ended December 31, 2009 Non- Performing Assets to Average Earning Assets remain low at 0.22% or $16.356 million Strong Earnings of $30.569 million or $0.65 per share (diluted) and 1.39% Return on Assets for the three months ended Dec
Slide 5: Banking Center Network
Banking Center Network The Dallas/ Fort Worth MSA is the nation’s 4th largest 161 Full Service Locations regional area with 9 in Bryan/ College Station Area 6.1 million residents 27 in Central Texas Area 24 in Dallas/ Fort Worth Area 20 in East Texas Area 54 in Houston Area 27 in South Texas Area Te
Slide 6: PRSP Pro Forma Banking Center Map
PRSP Pro Forma Banking Center Map Houston, TX Dallas, TX Prosperity Bancshares Prosperity Bancshares First Banks, Inc. First Banks, Inc. 6
Slide 7: Balance Sheet Summary
Balance Sheet Summary As Originally Reported $9,600 $1,400 Total footings as of 12/31/09 Loans = $3.377 bil. $8,400 Deposits = $7.259 bil. $1,200 Assets = $8.850 bil. 5 year CAGR Loans = 27% $7,200 Deposits = 26% Assets = 27% $1,000 $6,000 $800 $4,800 $600 $3,600 Loans Deposits $400 $2,400 Assets Eq
Slide 8: EPS Growth
EPS Growth Diluted $2.50 $2.41 $2.25 $2.09 * $2.06 ** $2.00 $1.94 $1.77 $1.75 $1.59 $1.50 $1.25 $1.00 $0.75 $0.65 $0.49 $0.50 $0.25 $0.00 2004 2005 2006 2007 2008 2009 4Q 2008 4Q 2009 *Excludes the non-cash after tax impairment charge related to FNMA/FLHMC preferred stock of $6.5 million. **Excludes
Slide 9: Deposit Composition
Deposit Composition December 31, 2009 CDs & IRAs Non-interest 4Q09 Cost of Deposits= 1.01% >$100,000 Bearing DDA 16.86% 20.56% CDs & IRAs <$100,000 16.65% Interest Bearing DDA MMA & 19.17% Savings 26.76% Amount % of total Non-interest Bearing DDA $ 1,492,612 20.56% Interst Bearing DDA 1,391,133 19.1
Slide 10: Net Interest Margin
Net Interest Margin * * Tax equivalent- annualized 4.30% 4.24% 4.20% 4.12% 4.10% 4.09% 4.15% 4.10% 4.08% 4.07% 3.98% 4.04% 4.00% 4.03% 3.90% 3.93% 3.80% Net Interest Margin for 2007 = 4.06% Net Interest Margin for 2008 = 3.96% 3.70% Net Interest Margin for 2009 = 4.08% 3.65% 3.60% 1Q07 2Q07 3Q07 4Q0
Slide 11: 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 $400 Ratio 35.00% $0 30.00% 2004 2005 2006 2007 2008 2009 11 $ in millions
Slide 12: Loan Portfolio
Loan Portfolio December 31, 2009 Loans/ Deposits: 46.5% Agriculture CRE Loan Breakout 4.01% Home Equity Approximate $ in million Consumer 3.48% Owner Occupied: $614 3.03% Commercial Office Building: $81 1-4 Family R.E. 39.66% Multi-family: $78 Residential Strip Center: $151 21.00% Church: $92 Constr
Slide 13: Asset Quality – NPA/Loans + OREO
Asset Quality – NPA*/ Loans + OREO * Includes loans past due 90 days and still accruing 3.50% 3.24% 3.24% PRSP NPA*/Loans + OREO Peer NPA*/Loans + OREO 3.22% 3.00% 2.50% 2.26% 2.26% 2.00% 1.50% 1.18% 0.97% 1.02% 0.97% 0.84% 0.83% 1.00% 0.70% 0.64% 0.49% 0.48% 0.50% 0.38% 0.17% 0.40% 0.48% 0.13% 0.09
Slide 14: Asset Quality – NCO/Average Loans
Asset Quality – NCO/Average Loans (Annualized) 1.40% PRSP NCO / Loans Peer NCO / Loans 1.23% 1.20% 1.00% 0.92% 0.98% 0.80% 0.80% 0.60% 0.54% 0.48% 0.47% 0.40% 0.40% 0.32% 0.30% 0.30% 0.23% 0.36% 0.23% 0.19% 0.20% 0.19% 0.18% 0.20% 0.08% 0.06% 0.06% 0.03% 0.04% 0.13% 0.00% 2001 2002 2003 2004 2005 20
Slide 15: Contact Information
Contact Information Corporate Headquarters Investor Contacts Prosperity Bank Plaza David Zalman 4295 San Felipe Chairman & Chief Executive Officer Houston, Texas 77027 979.543.2200 david.zalman@prosperitybanktx.com 281.269.7199 Telephone Dan Rollins 281.269-7222 Fax President & Chief Operating Offic
Slide 16: 4th Quarter 2009 Earnings
4th Quarter 2009 Earnings
Slide 17: Financial Highlights
Financial Highlights As Originally Reported ($ in thousands, except EPS) 2004 2005 2006 2007 2008 2009 Non Interest Income $23,071 $30,021 $33,982 $52,923 $52,370 $60,097 Net Interest Income $81,967 $110,897 $138,145 $200,435 $227,729 $307,101 Net Income $34,707 $47,860 $61,725 $90,635 * $93,623 **
Slide 18: 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) (%) ($000) 1 02/07/08 1st Choice Bancorp, Inc. 1 Houston TX Bank Mixed Purchase 6,372,343 313,
Slide 19: Historical Loan Composition
Historical Loan Composition 12/31/2004 12/31/2005 12/31/2006 12/31/2007 12/31/2008 12/31/2009 CAGR Loan Composition Commercial $ 144.4 13.9% $ 222.8 14.4% $ 297.7 13.7% $ 453.6 14.5% $ 499.1 14.0% $ 415.5 12.3% 23.5% Construction $ 109.6 10.6% $ 206.7 13.4% $ 433.2 19.9% $ 683.2 21.7% $ 666.1 18.6%
Slide 20: 4th Quarter 2009 Earnings
4th Quarter 2009 Earnings
Prosperity Bancshares — Q4 2009 Earnings Presentation on 6ix