Attached files
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| 8-K - FORM 8K - PROSPERITY BANCSHARES INC | d261556d8k.htm |
Exhibit 99.1
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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 of the Private Securities Litigation reform Act of 1995. These forward-looking statements involve significant risks and uncertainties. Actual results may differ materially from the results discussed in these forward-looking statements. Factors that might cause such a difference include, but are not limited to, those discussed in the company’s periodic filings with the SEC. Copies of the SEC filings for Prosperity Bancshares® may be downloaded from the Internet at no charge from www.prosperitybanktx.com.
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a Track Record of Success
| • | A Texas based Financial Holding Company with approximately $10 billion in assets |
| • | 3rd largest Texas based commercial bank by Texas deposits |
| • | Strong balance sheet growth – 10 year CAGR of 30% loans, 28% deposits and 30% assets |
| • | Strong earnings growth – 10 year CAGR of 14% for EPS (diluted) and 32% for net income |
| • | Shareholder driven with approximately 9% inside ownership |
| • | Excellent asset quality – Net Charge Offs / Average Loans of 0.01% for three months ending September 30, 2011 |
| • | Excellent cost control – under 50% efficiency ratio |
| • | Since 2000, integrated over 20 successful acquisitions |
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| • | Net Interest Margin was 4.02% for the third quarter 2011 |
| • | Non- Performing Assets to Average Earning Assets remain low at 0.16% or $13.363 million |
| • | Strong Earnings of $36.373 million or $0.77 per share (diluted) and 1.52% Return on Assets for the third quarter 2011 |
| • | Tangible Common Equity Ratio improved to 6.89% at September 30, 2011 |
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| U.S. Bureau of Labor Statistics | ||||
| www.texaswideopenforbusiness.com | ||||
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| U.S. Bureau of Labor Statistics | ||||
| www.texaswideopenforbusiness.com | ||||
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| U.S. Bureau of Labor Statistics | ||||
| www.texaswideopenforbusiness.com | ||||
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$ in millions
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| * | Excluding the non-cash after tax impairment charge related to FNMA/FLHMC preferred stock of $6.5 million, EPS was $1.94 |
| ** | Excluding the non-cash after tax impairment charge related to FNMA/FLHMC preferred stock of $9.1 million, EPS was $1.86 |
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September 30, 2011
3Q11 Cost of Deposits= 0.50%
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| Amount | % of total | |||||||
| Non-interest Bearing DDA |
$ | 1,861,907 | 23.87 | % | ||||
| Interest Bearing DDA |
1,332,914 | 17.09 | ||||||
| MMA & Savings |
2,493,699 | 31.98 | ||||||
| CD’s & IRA’s<100m |
1,005,672 | 12.90 | ||||||
| CD’s & IRA’s>100m |
1,104,547 | 14.16 | ||||||
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| Total Deposits |
$ | 7,798,739 | 100.00 | % | ||||
$ in thousands
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$ in millions
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$ in thousands
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Texas Peer Group Includes: CFR, EBTX, FFIN, FBTX, IBOC, MCBI, SBSI, SNBI, SBIB, SBIT, TCBI, TRBS & TXUI
^ SNBI, SBIT, TRBS & TXUI have been acquired and were excluded from 2006 & 2007 and FBTX failed and was excluded from 2008
NOTE: 3Q11 does not include IBOC or TCBI as required data was not reported
Source: SNL Financial
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Texas Peer Group Includes: CFR, EBTX, FFIN, FBTX, IBOC, MCBI, SBSI, SNBI, SBIB, SBIT, TCBI, TRBS & TXUI
^ SNBI, SBIT, TRBS & TXUI have been acquired and were excluded from 2006 & 2007 and FBTX failed and was excluded from 2008
Source: SNL Financial
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| 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 Officer | |
| www.prosperitybanktx.com | 281.269.7199 | |
| dan.rollins@prosperitybanktx.com | ||
| David Hollaway | ||
| Chief Financial Officer | ||
| 979.543.2200 | ||
| david.hollaway@prosperitybanktx.com | ||
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| As Originally Reported ($ in thousands, except EPS) |
2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 3Q 2011 | |||||||||||||||||||||
| Non Interest Income |
$ | 30,021 | $ | 33,982 | $ | 52,923 | $ | 52,370 | $ | 60,097 | $ | 53,833 | $ | 14,581 | ||||||||||||||
| Net Interest Income |
$ | 110,897 | $ | 138,145 | $ | 200,435 | $ | 227,729 | $ | 307,101 | $ | 318,148 | $ | 82,538 | ||||||||||||||
| Net Income |
$ | 47,860 | $ | 61,725 | $ | 90,635 | * | $ | 93,623 | ** | $ | 111,879 | $ | 127,708 | $ | 36,373 | ||||||||||||
| Book Value Per Share |
$ | 16.69 | $ | 20.26 | $ | 25.51 | $ | 27.24 | $ | 29.03 | $ | 31.11 | $ | 32.87 | ||||||||||||||
| Tangible Book Value Per Share |
$ | 6.48 | $ | 6.62 | $ | 7.42 | $ | 7.43 | $ | 9.43 | $ | 10.70 | $ | 12.67 | ||||||||||||||
| ROAA |
1.42 | % | 1.44 | % | 1.49 | %* | 1.33 | %** | 1.26 | % | 1.38 | % | 1.52 | % | ||||||||||||||
| ROAE |
11.56 | % | 10.24 | % | 8.72 | %* | 7.85 | %** | 8.57 | % | 9.08 | % | 9.51 | % | ||||||||||||||
| ROAE- tangible |
29.88 | % | 31.53 | % | 32.34 | %* | 26.77 | %** | 28.66 | % | 27.40 | % | 25.03 | % | ||||||||||||||
| Efficiency Ratio |
48.91 | % | 45.27 | % | 46.19 | % | 46.51 | % | 46.27 | % | 44.83 | % | 42.38 | % | ||||||||||||||
| Leverage Ratio |
7.83 | % | 7.76 | % | 8.09 | % | 5.68 | % | 6.47 | % | 6.87 | % | 7.70 | % | ||||||||||||||
| Tier I Risk Capital |
15.34 | % | 13.52 | % | 13.13 | % | 10.27 | % | 12.61 | % | 13.64 | % | 15.47 | % | ||||||||||||||
| Total Risk Capital |
16.37 | % | 14.55 | % | 14.11 | % | 11.17 | % | 13.86 | % | 14.87 | % | 16.69 | % | ||||||||||||||
| Tangible Ratio |
5.46 | % | 5.24 | % | 5.88 | % | 4.19 | % | 5.53 | % | 5.86 | % | 6.89 | % | ||||||||||||||
| * | Does not include the non-cash after tax impairment charge related to FNMA/FLHMC preferred stock of $6.5 million. |
| ** | Does not include the non-cash after tax impairment charge related to FNMA/FLHMC preferred stock of $9.1 million. |
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| At Announcement | ||||||||||||||||||||||||||||||||
| Date of Announcement |
Seller |
# of Branches |
City |
State | Type | Consideration |
Accounting Method |
PRSP Assets ($000) |
Sellers’ Assets ($000) |
Sellers’ Assets Contribution (%) |
Deal Value ($ In MM |
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| 1 | 02/07/08 | 1st Choice Bancorp, Inc. |
1 | Houston |
TX | Bank | Mixed | Purchase | 6,372,343 | 313,900 | 4.69 | 66.2 | ||||||||||||||||||||
| 2 | 05/01/07 | The Bank of Navasota |
1 | Navasota |
TX | Bank | Common Stock | Purchase | 6,247,926 | 72,300 | 1.14 | 17.1 | ||||||||||||||||||||
| 3 | 07/19/06 | Texas United Bancshares, Inc. |
34 | La Grange |
TX | Bank | Common Stock | Purchase | 4,547,220 | 1,818,000 | 27.82 | 357.1 | ||||||||||||||||||||
| 4 | 11/16/05 | SNB Bancshares, Inc. |
6 | Houston |
TX | Bank | Mixed | Purchase | 3,493,972 | 1,121,747 | 24.30 | 242.7 | ||||||||||||||||||||
| 5 | 09/12/05 | Grapeland Bancshares, Inc. |
2 | Grapeland |
TX | Bank | Common Stock | Purchase | 3,479,747 | 73,000 | 2.15 | 7.3 | ||||||||||||||||||||
| 6 | 10/26/04 | FirstCapital Bankers, Inc. |
20 | Corpus Christi |
TX | Thrift | Common Stock | Purchase | 2,709,169 | 773,566 | 22.21 | 135.7 | ||||||||||||||||||||
| 7 | 05/12/04 | Village Bank and Trust |
1 | Austin |
TX | Thrift | Cash | Purchase | 2,449,553 | 110,400 | 4.31 | 20.2 | ||||||||||||||||||||
| 8 | 04/26/04 | Liberty Bank |
4 | Austin |
TX | Thrift | Mixed | Purchase | 2,449,553 | 186,000 | 7.06 | 42.0 | ||||||||||||||||||||
| 9 | 10/06/03 | First State Bank of North Texas |
3 | Dallas |
TX | Bank | Mixed | Purchase | 2,078,532 | 93,900 | 4.32 | 21.3 | ||||||||||||||||||||
| 10 | 07/21/03 | Mainbancorp |
3 | Dallas |
TX | Bank | Mixed | Purchase | 1,983,277 | 195,700 | 8.98 | 39.7 | ||||||||||||||||||||
| 11 | 03/05/03 | BankDallas SSB |
1 | Dallas |
TX | Thrift | Cash | Purchase | 1,822,256 | 40,716 | 2.19 | 7.0 | ||||||||||||||||||||
| 12 | 02/03/03 | Abrams Centre Bancshares, Inc. |
1 | Dallas |
TX | Bank | Cash | Purchase | 1,822,256 | 95,388 | 4.97 | 16.3 | ||||||||||||||||||||
| 13 | 08/15/02 | First National Bank of Bay City |
1 | Bay City |
TX | Bank | Cash | Purchase | 1,360,356 | 28,174 | 2.03 | 5.0 | ||||||||||||||||||||
| 14 | 07/15/02 | Southwest Bank Holding Company |
2 | Dallas |
TX | Bank | Cash | Purchase | 1,289,637 | 127,055 | 8.97 | 21.0 | ||||||||||||||||||||
| 15 | 05/02/02 | Paradigm Bancorporation, Incorporated |
8 | Houston |
TX | Bank | Common Stock | Purchase | 1,289,637 | 259,262 | 16.74 | 41.6 | ||||||||||||||||||||
| 16 | 04/26/02 | First State Bank |
1 | Needville |
TX | Bank | Cash | Purchase | 1,289,637 | 17,539 | 1.36 | 3.7 | ||||||||||||||||||||
| 17 | 02/22/02 | Texas Guaranty Bank, N.A. |
2 | Houston |
TX | Bank | Cash | Purchase | 1,262,152 | 75,019 | 5.61 | 11.8 | ||||||||||||||||||||
| 18 | 11/08/00 | Commercial Bancshares, Inc. |
12 | Houston |
TX | Bank | Common Stock | Pooling | 693,079 | 401,271 | 36.67 | 53.3 | ||||||||||||||||||||
| 19 | 06/21/99 | South Texas Bancshares, Inc. |
3 | Beeville |
TX | Bank | Cash | Purchase | 461,903 | 142,091 | 23.53 | 23.4 | ||||||||||||||||||||
| 20 | 06/05/98 | Union State Bank |
1 | East Bernard |
TX | Bank | Cash | Purchase | 339,287 | 79,174 | 18.92 | 17.6 | ||||||||||||||||||||
Branch Acquisitions
| Date of Announcement |
Seller |
# of Branches | Branch Type | Branch Locale State |
Amount of Deposits Transferred ($000) |
Deposit Premium ($000) |
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| 1 | 2/8/2010 | First Bank |
19 | Bank | TX | 500,000 | 36,000 | |||||||||||
| 2 | 1/19/2010 | U.S. Bank |
3 | Bank | TX | 420,000 | 13,000 | |||||||||||
| 3 | 11/7/2008 | Franklin Bank |
46 | Bank | TX | 3,700,000 | 60,000 | |||||||||||
| 4 | 10/22/2007 | Banco Popular North America |
6 | Bank | TX | 140,000 | NA | |||||||||||
| 5 | 6/15/2000 | Compass Bancshares, Inc. |
5 | Bank | TX | 87,000 | NA | |||||||||||
| 6 | 2/27/1998 | Grimes County Capital Corporation |
1 | Bank | TX | 5,900 | 250 | |||||||||||
| 7 | 3/30/1997 | Wells Fargo & Company |
1 | Bank | TX | NA | NA | |||||||||||
| 8 | 3/11/1996 | Victoria Bankshares, Inc. |
1 | Bank | TX | 46,000 | NA | |||||||||||
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| 12/31/2005 | 12/31/2006 | 12/31/2007 | 12/31/2008 | 12/31/2009 | 12/31/2010 | CAGR | ||||||||||||||||||||||||||||||||||||||||||||||
| Loan Composition |
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| Commercial |
$ | 222.8 | 14.4 | % | $ | 297.7 | 13.7 | % | $ | 453.6 | 14.5 | % | $ | 499.1 | 14.0 | % | $ | 415.5 | 12.3 | % | $ | 440.5 | 12.6 | % | 14.6 | % | ||||||||||||||||||||||||||
| Construction |
$ | 206.7 | 13.4 | % | $ | 433.2 | 19.9 | % | $ | 683.2 | 21.7 | % | $ | 666.1 | 18.6 | % | $ | 557.2 | 16.5 | % | $ | 502.3 | 14.4 | % | 19.4 | % | ||||||||||||||||||||||||||
| 1-4 Family Residential |
$ | 313.2 | 20.3 | % | $ | 377.0 | 17.3 | % | $ | 526.3 | 16.7 | % | $ | 668.1 | 18.7 | % | $ | 709.1 | 21.0 | % | $ | 824.1 | 23.6 | % | 21.3 | % | ||||||||||||||||||||||||||
| Home Equity |
$ | 58.7 | 3.8 | % | $ | 63.4 | 2.9 | % | $ | 93.9 | 3.0 | % | $ | 107.0 | 3.0 | % | $ | 117.7 | 3.5 | % | $ | 118.8 | 3.4 | % | 15.1 | % | ||||||||||||||||||||||||||
| Commercial Real Estate |
$ | 619.3 | 40.3 | % | $ | 881.1 | 40.5 | % | $ | 1,148.7 | 36.6 | % | $ | 1,343.4 | 37.7 | % | $ | 1,339.2 | 39.7 | % | $ | 1,370.6 | 39.3 | % | 17.2 | % | ||||||||||||||||||||||||||
| Agriculture |
$ | 56.3 | 3.6 | % | $ | 57.4 | 2.6 | % | $ | 114.0 | 3.6 | % | $ | 145.7 | 4.1 | % | $ | 135.5 | 4.0 | % | $ | 140.8 | 4.0 | % | 20.1 | % | ||||||||||||||||||||||||||
| Consumer |
$ | 65.1 | 4.2 | % | $ | 66.7 | 3.1 | % | $ | 123.2 | 3.9 | % | $ | 137.7 | 3.9 | % | $ | 102.4 | 3.0 | % | $ | 88.0 | 2.5 | % | 6.2 | % | ||||||||||||||||||||||||||
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| Total Loans |
$ | 1,542.1 | 100.0 | % | $ | 2,176.5 | 100.0 | % | $ | 3,142.9 | 100.0 | % | $ | 3,567.1 | 100.0 | % | $ | 3,376.7 | 100.0 | % | $ | 3,485.0 | 100.0 | % | 17.7 | % | ||||||||||||||||||||||||||
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$ in millions
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