Prosperity Bancshares, Inc. · NYSE:PB
Prosperity Bancshares — Q3 2009 Earnings Presentation
19 slides from Prosperity Bancshares's earnings presentation, Nov 12, 2009
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 36% loans, 34% deposits and 36% assets Strong earnings growth – 10 year
Slide 4: 3Q09 Highlights
3Q09 Highlights Net Interest Margin was 4.08% for the three months ended September 30, 2009 Non- Performing Assets to Average Earning Assets remain low at 0.29% or $21.920 million Strong Earnings of $29.322 million or $0.63 per share (diluted) and 1.32% Return on Assets for the three months ended Se
Slide 5: Banking Center Network
Banking Center Network The Dallas/ Fort Worth MSA is the nation’s 4th largest regional area with 158 Full Service Locations 6.1 million residents 9 in Bryan/ College Station Area 27 in Central Texas Area 24 in Dallas/ Fort Worth Area 20 in East Texas Area 51 in Houston Area 27 in South Texas Area Te
Slide 6: Balance Sheet Summary
Balance Sheet Summary As Originally Reported $9,600 $1,400 Total footings as of 9/30/09 Loans = $3.41 bil. $8,400 Deposits = $7.12 bil. $1,200 Assets = $8.96 bil. 5 year CAGR Loans = 36% $7,200 Deposits = 29% $1,000 Assets = 31% $6,000 $800 $4,800 $600 $3,600 Loans Deposits $400 $2,400 Assets Equity
Slide 7: EPS Growth
EPS Growth Diluted $2.25 $2.09 * $2.06 ** $1.94 $2.00 $1.77 $1.75 $1.59 $1.50 $1.36 $1.25 $1.00 $0.75 $0.63 $0.53 ** $0.50 $0.25 $0.00 2003 2004 2005 2006 2007 2008 3Q 2008 3Q 2009 *Excludes the non-cash after tax impairment charge related to FNMA/FLHMC preferred stock of $6.5 million. **Excludes th
Slide 8: Deposit Composition
Deposit Composition September 30, 2009 CDs & IRAs Non-interest 3Q09 Cost of Deposits= 1.26% >$100,000 Bearing DDA 18.07% 20.70% CDs & IRAs <$100,000 18.11% Interest Bearing DDA MMA & 14.99% Savings 28.13% Amount % of total Non-interest Bearing DDA $ 1,473,189 20.70 % Interst Bearing DDA 1,066,778 14
Slide 9: Net Interest Margin
Net Interest Margin * * Tax equivalent - annualized 4.20% 4.12% 4.10% 4.09% 4.15% 4.10% 4.08% 4.07% 4.04% 3.98% 4.00% 4.03% 3.93% 3.90% 3.80% Net Interest Margin for 2007 - 4.06% and for 2008 – 3.96% 3.70% 3.65% 3.60% 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 9
Slide 10: 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% 2003 2004 2005 2006 2007 2008 3Q08 3Q09 10 $ in millions
Slide 11: Loan Portfolio
Loan Portfolio September 30, 2009 Loans/ Deposits: 47.6% Agriculture CRE Loan Breakout 4% Home Equity Approximate $ in million Consumer 3% Owner Occupied: $616 3% Commercial Office Building: $82 R.E. 1-4 Family Multi-family: $74 39.25% Residential Strip Center: $152 20% Church: $87 Construction Comm
Slide 12: Asset Quality – NPA/ Loans + OREO
Asset Quality – NPA*/ Loans + OREO * Includes loans past due 90 days and still accruing 3.50% PRSP NPA*/Loans + OREO Peer NPA*/Loans + OREO 3.22% 3.00% 2.50% 2.26% 2.00% 1.50% 1.18% 1.46% 0.97% 1.02% 0.84% 0.83% 1.00% 0.97% 0.70% 0.49% 0.45% 0.64% 0.50% 0.38% 0.13% 0.17% 0.40% 0.09% 0.05% 0.00% 0.00
Slide 13: Asset Quality – NCO/Average Loans
Asset Quality – NCO/Average Loans (Annualized) 1.20% 1.13% PRSP NCO / Loans Peer NCO / Loans 1.00% 0.80% 0.60% 0.54% 0.48% 0.44% 0.40% 0.32% 0.30% 0.30% 0.23% 0.22% 0.23% 0.19% 0.20% 0.19% 0.18% 0.20% 0.06% 0.13% 0.08% 0.03% 0.06% 0.04% 0.00% 2001 2002 2003 2004 2005 2006^ 2007^ 2008^ 3Q08^ 3Q09^ Te
Slide 14: Contact Information
Contact Information Corporate Headquarters Investor Contacts Prosperity Bank Plaza David Zalman 4295 San Felipe Chairman & Chief Executive Officer Houston, Texas 77027 979.543.2200 david.zalman@prosperitybanktx.com 281.269.7199 Telephone Dan Rollins 281.269-7222 Fax President & Chief Operating Offic
Slide 15: 3rd Quarter 2009 Earnings
3rd Quarter 2009 Earnings
Slide 16: Financial Highlights
Financial Highlights As Originally Reported ($ in thousands, except EPS) 2004 2005 2006 2007 2008 3Q08 3Q09 Non Interest Income $23,071 $30,021 $33,982 $52,923 $52,370 $13,117 $15,236 Net Interest Income $81,967 $110,897 $138,145 $200,435 $227,729 $57,806 $77,413 Net Income $34,707 $47,860 $61,725 $
Slide 17: 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 18: Historical Loan Composition
Historical Loan Composition 12/31/2003 12/31/2004 12/31/2005 12/31/2006 12/31/2007 12/31/2008 CAGR Loan Composition Commercial $ 94.0 12.2% $ 144.4 13.9% $ 222.8 14.4% $ 297.7 13.7% $ 453.6 14.5% $ 499.1 14.0% 39.6% Construction $ 36.5 4.7% $ 109.6 10.6% $ 206.7 13.4% $ 433.2 19.9% $ 683.2 21.7% $ 6
Slide 19: 3rd Quarter 2009 Earnings
3rd Quarter 2009 Earnings
Prosperity Bancshares — Q3 2009 Earnings Presentation on 6ix