Prosperity Bancshares, Inc. · NYSE:PB
Prosperity Bancshares — Q4 2016 Earnings Presentation
23 slides from Prosperity Bancshares's earnings presentation, 2017
Slide 1: 4th Quarter 2016
ee . Sd —PROSPERITY BANCSHARES, INC? 4h Quarter 2016
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: 4Q16 Highlights
4Q16 Highlights • Net Income of $68.793 million and earnings per share (diluted) of $0.99 for three months ending December 31, 2016 • Assets of $22.331 billion, loans of $9.622 billion, and deposits of $17.307 billion at December 31, 2016 • Common equity tier 1 ratio was 14.48% and leverage ratio wa
Slide 4: Corporate Profile
Corporate Profile • A Texas based financial holding company with approximately $22.331 billion in assets, and the 2nd largest Texas-based commercial bank • Shareholder driven with 4.9% fully diluted insider ownership • Successful integration of 42 acquisitions (includes branch and failed bank transa
Slide 5: Balance Sheet Summary
Balance Sheet Summary Totals as of 12/31/2016 $4,000 $22,500 $21,000 Loans = $9.622 Billion Deposits = $17.307 Billion $3,500 $19,500 Assets = $22.331 Billion $18,000 10 year CAGR $3,000 $16,500 Loans = 16.0% $15,000 Deposits = 16.6% $2,500 $13,500 Assets = 17.1% $12,000 Loans $2,000 $10,500 Deposit
Slide 6: Net Income
Net Income $350 Net Income Net Income (excluding Purchase Accounting Adjustments (PAA)) $297.4 $300 10 Year CAGR 16.1% (excluding PAA 15.0%) $286.6 $274.5 5 Year CAGR 14.1% (excluding PAA 12.1%) $255.5 $250.6 $250 $236.2 $221.4 $200 $185.7 $167.9 $154.9 $150 $141.7 $127.7 $111.9 $100 $84.2 $84.5 $70
Slide 7: EPS Growth Diluted
EPS Growth Diluted $5.00 EPS EPS (excluding Purchase Accounting Adjustments (PAA)) $4.32 10 Year CAGR 7.3% (excluding PAA 6.4%) $4.09 $3.94 $4.00 5 Year CAGR 5.5% (excluding PAA 3.6%) $3.65 $3.65 $3.60 $3.43 $3.23 $3.01 $2.98 $3.07 $3.00 $2.73 $2.41 $1.94 $1.94 $1.86 $2.00 $1.01 $0.99 $1.00 $0.94 $0
Slide 8: Net Interest Margin
Net Interest Margin 4.50% Net Interest Margin (Tax Equivalent) 4.25% Net Interest Margin (excluding Purchase Accounting Adjustments) 4.00% 3.89% 3.82% 3.83% 3.85% 3.75% 3.59% 3.62% 3.57% 3.48% 3.50% 3.42% 3.43% 3.39% 3.37% 3.30% 3.24% 3.29% 3.26% 3.25% 3.35% 3.33% 3.31% 3.26% 3.25% 3.19% 3.21% 3.19%
Slide 9: Acquisitions & Efficiency Ratio
Acquisitions & Efficiency Ratio* $25,000 Total Assets Acquired (at Acquisition Closing) $22,331 $22,037 Total Assets without Acquisitions $21,508 Efficiency Ratio $20,000 $18,642 $15,000 $14,584 45.27% 46.19% 46.51% 46.27% 44.83% 42.76% 43.48% 41.81% 41.87% 42.50% 41.60% $10,000 $9,072 $8,850 $9,823
Slide 10: Return on Average Tangible Common Equity
Return on Average Tangible Common Equity 40.00% 35.00% 31.53% 30.03% 30.00% 27.40% 28.66% 25.11% 24.16% 24.24% 25.00% 21.93% 19.98% 22.52% 18.56% 20.00% 15.00% 16.95% 16.33% 10.00% 5.00% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 4Q15 4Q16 10 Interim periods annualized.
Slide 11: Return on Average Assets
Return on Average Assets 2.00% 1.75% 1.50% 1.44% 1.47% 1.44% 1.38% 1.38% 1.35% 1.36% 1.33% 1.26% 1.30% 1.25% 1.25% 1.20% 1.26% 1.00% 0.75% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 4Q15 4Q16 11 Interim periods annualized.
Slide 12: Loan Growth
Loan Growth $10,000 Loans $9,622 70.0% $9,439 65.4% $9,244 $9,000 Loans/Deposits 65.0% $8,000 $7,775 59.1% 60.0% $7,000 55.6% 52.2% 53.4% 55.0% $6,000 $5,180 50.8% $5,000 48.8% 50.0% 46.5% 46.7% 46.7% 44.5% $4,000 $3,567 $3,485 $3,766 $3,093 $3,377 45.0% $3,000 $2,037 40.0% $2,000 $1,000 35.0% $0 30
Slide 13: Loan Portfolio
Loan Portfolio December 31, 2016 Consumer Loans By Area Loans/Deposits: 55.6% 2.8% Approximate $ in millions Energy Bryan/College Station: $603 3.0% Commercial Agriculture 13.0% Central Oklahoma: $493 7.0% Central Texas: $1,287 Construction 13.1% Dallas/Ft. Worth: $1,004 Commercial R.E. East Texas:
Slide 14: Energy Portfolio
Energy Portfolio As of December 31, 2016 Outstanding Balance Portfolio Commentary Total outstanding balance of $284.5 million, or 3.0% of total loans Total unfunded commitments of $145.4 million Producers Servicers $119.9 $164.6 42% Total energy reserves of 2.10% or $6.0 million 58% $19.0 mi
Slide 15: Houston MSA CRE Portfolio
Houston MSA CRE Portfolio As of December 31, 2016 TOTAL: $1.1 Billion Shopping Center/Retail 19.5% Owner Occupied Shopping Center/Retail - $211.0 45.5% Commercial & Industrial - $93.3 Commercial & Industrial Office - $76.4 8.6% Medical - $61.0 Multi-Family - $44.9 Hotel - $33.1 Office 7.1% Other - $
Slide 16: Asset Quality
Asset Quality NPA*/Loans + OREO 5.00% 4.88% 4.65% 4.50% Prosperity Bank UBPR - Peer Group 3.95% 4.00% 3.50% 3.00% 2.82% 2.63% 2.50% 2.00% 1.91% 1.50% 1.35% 1.07% 1.04% 1.00% 0.61% 0.57% 0.49% 0.40% 0.48% 0.45% 0.40% 0.50% 0.50% 0.32% 0.29% 0.46% 0.25% 0.09% 0.05% 0.00% 2005 2006 2007 2008 2009 2010
Slide 17: Deposit Composition
Deposit Composition December 31, 2016 Cost of Deposits: 0.22% Certificates & Other Time Deposits 13.9% DDA - Non- Interest Bearing 30.0% Amount DDA - Non-Interest Bearing $ 5,191 DDA - Interest Bearing 4,216 Money Market & Savings 5,494 Money Market & Certificates & Other Savings Time Deposits 2,406
Slide 18: Dividend History
Dividend History (c) $1.25 $1.24 (b) Dividend Payment $1.12 (a) $1.05 $0.99 $0.89 $0.85 $0.80 $0.72 $0.64 $0.65 $0.57 $0.51 $0.46 $0.41 $0.45 $0.35 Compounded Annual Growth $0.31 $0.25 Rate from 2003-2016 was $0.25 13.11% $0.05 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 -$
Slide 19: Total Return Performance
Total Return Performance IPO (November 12, 1998) to December 31, 2016 1,800 $100,000 invested in Prosperity’s 1,600 IPO on 11/12/98 was worth $1,560,705 on 12/31/16 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 (+1,460.7%) S&P 500
Slide 20: Corporate Relocations to Texas
Corporate Relocations to Texas California AccentCare Active Networks The Allen Group, Inc. Corporate Relocations to Texas (2004 – Present) Allied Electronic Recycling Canada ALL-Q-TELL Corp. Ameriflight LLC Absolute Software (ABT) Banker’s Toolbox, Inc. Bio-Solutions Corp (BISU) Boreland Software Co
Slide 21: The Houston Market: Overview
The Houston Market: Overview Estimated Growth From January 2016 to January 2017 Growth Drivers Houston is estimated to have added more people In the 12 months ending December 2016, Houston created approximately 22,000 than any other MSA jobs 200.0 188.8 Mining and logging (oil and gas extraction
Slide 22: The Houston Market: Economic Diversity
The Houston Market: Economic Diversity Houston maintains a diverse and productive economy despite recent turbulence in the oil and gas industry The Perryman Group forecasts sustained growth for the Houston metro over the next quarter century November 2016 Employment by Industry Forecasted Housto
Slide 23: 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@prosperitybankusa.com 281.269.7199 Telephone David Hollaway 281.269-7222 Fax Chief Financial Officer www.p
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