 Exhibit 99.1 |
 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”
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 reports and 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. |
 3
Corporate Profile
Corporate Profile
•
A Texas based financial holding company with approximately $14 billion
in assets
•
3
rd
largest Texas based commercial bank by Texas deposits
•
Strong
balance
sheet
growth
–
10
year
CAGR
of
23%
for
loans,
22%
for
deposits and 23% for assets
•
Strong
earnings
growth
–
10
year
CAGR
of
10%
for
EPS
(diluted)
and
23% for net income
•
Shareholder value driven with large inside ownership
•
Excellent
asset
quality
–
Annualized
Net
Charge
Offs
/
Average
Loans
of
0.15% for three months ending December 31, 2012
•
Excellent
cost
control
–
under
44%
efficiency
ratio
•
Integrated over 30 acquisitions over the past 16 years
a Track Record of Success |
 4
4Q12 Highlights
4Q12 Highlights
•
Net
Interest
Income
before
allowance
for
credit
losses
increased
35.2%
to
$108.30 million when compared to same period in 2011
•
Non-Performing Assets to Average Earning Assets remain low at 0.10%
or $13.02 million
•
Strong Earnings of $48.27 million or $0.85 per share (diluted) and 1.36%
Return on Assets for the fourth quarter 2012
•
Tangible Common Equity Ratio was 6.34% at December 31, 2012
•
Completed acquisitions of:
•
Bank of Texas, Austin (assets: $77.0 million; loans: $27.6
million; deposits: $70.4 million) •
The Bank Arlington, Arlington (assets: $37.3 million;
loans: $22.8 million; deposits: $33.2 million)
•
American State Bank, Lubbock (assets: $3.16 billion; loans
$1.24 billion; deposits: $2.51 billion)
•
Community National Bank, Bellaire (assets: $183.0 million,
loans: $68.0 million; deposits: $164.6 million)
•
First
Bank
Texas,
Tyler
(assets
:
$191.1
million;
loans:
$139.2
million;
deposits:
$116.0
million)
•
Announced pending acquisition of:
•
Coppermark Bank, Oklahoma City (assets: $1.3 billion;
loans : $874.2 million; deposits: $1.2 billion) |
 Banking Center Network
Banking Center Network
Sources: SNL Financial and MapPoint
Texas has six of the
nation’s top 20 cities
in population:
4 Houston
7 San Antonio
9 Dallas
16 Austin
17 Fort Worth
20 El Paso
215 Full Service Locations
10
in Bryan/ College Station Area
34
in Central Texas Area
35
in Dallas/ Fort Worth Area
23
in East Texas Area
59
in Houston Area
20
in South Texas Area
34
in West Texas Area
5 |
 Strong Texas Economy
6
www.texaswideopenforbusiness.com
Fastest Growing
Metropolitan Areas
Texas is
Adding Jobs
Per Capita
At Almost
Twice The
Pace of The
Entire U.S.
1
. Dallas / Ft Worth MSA-
345.3 people per day
2
. Houston MSA-301.6
people per day |
 Strong Texas Economy
7
www.texaswideopenforbusiness.com |
 8
Balance Sheet Summary
Balance Sheet Summary
$0
$1,200
$2,400
$3,600
$4,800
$6,000
$7,200
$8,400
$9,600
$10,800
$12,000
$13,200
$14,400
$15,600
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
$2,000
$2,200
Loans
Deposits
Assets
Equity
$ in millions
Totals as of 12/31/12
Loans =
$5.18 Billion
Deposits =
$11.64 Billion
Assets =
$14.58 Billion
10 year CAGR
Loans =
23%
Deposits =
22%
Assets =
23% |
 9
$0.85
$0.77
$3.23
$2.09
$2.06
$2.41
$3.01
$2.73
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
2007
2008
2009
2010
2011
2012
4Q 2011
4Q 2012
EPS Growth Diluted
EPS Growth Diluted
*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
*
** |
 $0
$50
$100
$150
$200
$250
$300
$350
$400
2005
2006
2007
2008
2009
2010
2011
2012
4Q11
4Q12
2.50%
2.75%
3.00%
3.25%
3.50%
3.75%
4.00%
4.25%
4.50%
4.75%
5.00%
Net Interest Income before provision for loan loss
Net Interest Margin
10
Net Interest Income
Net Interest Income
$ in millions |
 $0
$1,000
$2,000
$3,000
$4,000
$5,000
2005
2006
2007
2008
2009
2010
2011
2012
30.00%
35.00%
40.00%
45.00%
50.00%
55.00%
60.00%
65.00%
70.00%
Loans
Loan / Deposit
Ratio
11
Loan Growth
Loan Growth
$ in millions |
 12
Loan Portfolio
Loan Portfolio
$ in thousands
Loans/ Deposits: 44.5%
December 31, 2012
Construction Loan Breakout
Approximate $ in millions
Single Family:
Land Development:
Raw Land:
Lots:
Commercial/
Other:
Purchase Accounting Discount
CRE Loan Breakout
Approximate $ in millions
Owner Occupied:
$725
Office
Building:
$212
Multi-family:
$141
Strip Center:
$228
Other:
$738
Purchase Accounting Discount ($53)
Amount
% of total
Commercial R.E.
$
1,990,642
38.4%
Commercial
798,882
15.4
Construction
550,768
10.6
1-4 Family Residential
1,255,765
24.3
Consumer
111,445
2.2
Agriculture
285,637
5.5
Home Equity
186,801
3.6
Gross Loans
$
5,179,940
100.0%
Home Equity
3.6%
Agriculture
5.5%
Consumer
2.2%
1-4 Family
Residential
24.3%
Commercial
15.4%
Construction
10.6%
Commercial
R.E.
38.4%
$161
($2)
$134
$156
$59
$42 |
 Asset Quality –
NPA*/ Loans
+ OREO
*
Includes loans past due 90 days and still accruing
Asset Quality –
NPA*/ Loans
+ OREO
*
Includes loans past due 90 days and still accruing
1.74%
0.25%
0.32%
0.45%
0.48%
0.40%
0.49%
0.05%
0.09%
0.17%
0.13%
0.25%
0.28%
2.62%
3.90%
0.83%
0.70%
0.84%
1.18%
0.97%
2.26%
3.63%
1.64%
2.39%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
2003
2004
2005
2006^
2007^
2008^
2009^
2010^
2011^
2012^
3Q12^
4Q12^
PB NPA*/Loans + OREO
Peer NPA*/Loans + OREO
Source: SNL Financial
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,
SBIB was acquired and excluded from 2011, EBTX was acquired and
excluded from 2012, and IBOC has not reported 4Q12 data 13
|
 Asset Quality –
NCO/
Average Loans
Asset Quality –
NCO/
Average Loans
0.12%
0.41%
0.40%
0.23%
0.18%
0.04%
0.06%
0.23%
0.14%
0.03%
0.15%
0.08%
0.18%
0.31%
1.30%
0.96%
0.48%
0.13%
0.19%
0.20%
0.19%
0.59%
0.27%
0.33%
0.00%
0.35%
0.70%
1.05%
1.40%
2003
2004
2005
2006^
2007^
2008^
2009^
2010^
2011
2012^
3Q12^
4Q12^
PB NCO / Avg Loans
Peer NCO / Avg Loans
Source: SNL Financial
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,
SBIB was acquired and excluded from 2011, EBTX was acquired and
excluded from 2012, and IBOC has not reported 4Q12 data 14
|
 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
David Hollaway
281.269-7222 Fax
Chief Financial Officer
www.prosperitybanktx.com
281.269.7199
david.hollaway@prosperitybanktx.com |
 4th Quarter Earnings 2012 |
 17
PRSP Acquisitions
PRSP Acquisitions
At Announcement
Date of
Announcement
Seller
# of
Branches
Consideration
Accounting
Method
PRSP Assets
($000)
Sellers' Assets
($000)
Sellers' Assets
Contribution
(%)
Deal
Value
($000)
1
12/10/2012
Coppermark Bancshares (Oklahoma City)*
9
Mixed
Purchase
13,712,119
1,325,000
8.8
194.3
2
6/27/2012
Community National Bank
1
Mixed
Purchase
10,889,955
182,900
1.7
26.6
3
2/27/2012
American State Financial Corp.
37
Mixed
Purchase
9,822,671
3,081,689
31.4
529.2
4
1/19/2012
The Bank Arlington (Dallas)
1
Common Stock
Purchase
9,822,671
37,300
0.38
5.8
5
12/9/2011
East Texas Financial Services, Inc. (Tyler)
3
Common Stock
Purchase
9,822,671
210,600
2.14
21.1
6
9/13/2011
Texas Bankers, Inc. (Austin)
1
Common Stock
Purchase
9,567,087
72,500
0.76
12.7
7
02/07/08
1st Choice Bancorp, Inc. (Houston)
1
Mixed
Purchase
6,372,343
313,900
4.69
66.2
8
05/01/07
The Bank of Navasota (Navasota)
1
Common Stock
Purchase
6,247,926
72,300
1.14
17.1
9
07/19/06
Texas United Bancshares, Inc.(La Grange)
34
Common Stock
Purchase
4,547,220
1,818,000
27.82
357.1
10
11/16/05
SNB Bancshares, Inc. (Houston)
6
Mixed
Purchase
3,493,972
1,121,747
24.30
242.7
11
09/12/05
Grapeland Bancshares, Inc.(Grapeland)
2
Common Stock
Purchase
3,479,747
73,000
2.15
7.3
12
10/26/04
FirstCapital Bankers, Inc. (Corpus Chrisit)
20
Common Stock
Purchase
2,709,169
773,566
22.21
135.7
13
05/12/04
Village Bank and Trust (Austin)
1
Cash
Purchase
2,449,553
110,400
4.31
20.2
14
04/26/04
Liberty Bank (Austin)
4
Mixed
Purchase
2,449,553
186,000
7.06
42.0
15
10/06/03
First State Bank of North Texas (Dallas)
3
Mixed
Purchase
2,078,532
93,900
4.32
21.3
16
07/21/03
Mainbancorp (Dallas)
3
Mixed
Purchase
1,983,277
195,700
8.98
39.7
17
03/05/03
BankDallas SSB (Dallas)
1
Cash
Purchase
1,822,256
40,716
2.19
7.0
18
02/03/03
Abrams Centre Bancshares, Inc. (Dallas)
1
Cash
Purchase
1,822,256
95,388
4.97
16.3
19
08/15/02
First National Bank of Bay City (Bay City)
1
Cash
Purchase
1,360,356
28,174
2.03
5.0
20
07/15/02
Southwest Bank Holding Company (Dallas)
2
Cash
Purchase
1,289,637
127,055
8.97
21.0
21
05/02/02
Paradigm Bancorporation, Inc. (Houston)
8
Common Stock
Purchase
1,289,637
259,262
16.74
41.6
22
04/26/02
First State Bank (Needville)
1
Cash
Purchase
1,289,637
17,539
1.36
3.7
23
02/22/02
Texas Guaranty Bank, N.A. (Houston)
2
Cash
Purchase
1,262,152
75,019
5.61
11.8
24
11/08/00
Commercial Bancshares, Inc.(Houston)
12
Common Stock
Pooling
693,079
401,271
36.67
53.3
25
06/21/99
South Texas Bancshares, Inc. (Beeville)
3
Cash
Purchase
461,903
142,091
23.53
23.4
26
06/05/98
Union State Bank (East Bernard)
1
Cash
Purchase
339,287
79,174
18.92
17.6
*Pending Acquisition |
 18
PRSP Branch Acquisitions
PRSP Branch Acquisitions
Branch Acquisitions
Date of
Announcement
Seller
# of
Branches
Branch
Type
Branch
Locale
State
Amount of
Deposits
Transferred
($000)
Deposit
Premium
($000)
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 |
 19
Additional Information for
Shareholders
In
connection
with
the
proposed
merger
of
Coppermark
Bancshares,
Inc.
into
Prosperity
Bancshares,
Prosperity
Bancshares
has
filed
with
the
Securities
and
Exchange
Commission
a
registration
statement
on
Form
S-4
to
register
the
shares of Prosperity’s common stock to be issued to the
shareholders of Coppermark Bancshares, Inc. The registration
statement includes a proxy statement/prospectus which will be sent to
the shareholders of Coppermark Bancshares, Inc. seeking their
approval of the proposed transaction. WE URGE INVESTORS AND
SECURITY HOLDERS TO READ THE REGISTRATION STATEMENT ON FORM
S-4, THE PROXY STATEMENT/PROSPECTUS INCLUDED WITHIN THE
REGISTRATION STATEMENT ON FORM
S-4
AND
ANY
OTHER
RELEVANT
DOCUMENTS
FILED
WITH
THE
SECURITIES
AND
EXCHANGE
COMMISSION IN CONNECTION WITH THE PROPOSED TRANSACTION BECAUSE THEY
CONTAIN IMPORTANT INFORMATION ABOUT PROSPERITY, COPPERMARK
BANCSHARES AND THE PROPOSED TRANSACTION.
Investors and security holders may obtain free copies of these
documents through the website maintained by the Securities and
Exchange Commission at http://www.sec.gov. Documents filed with the SEC by Prosperity will be
available free of charge by directing a request by telephone or mail to
Prosperity Bancshares, Inc., Prosperity Bank Plaza, 4295 San
Felipe, Houston, Texas 77027 Attn: Investor Relations. Prosperity’s telephone number is (281) 269-
7199. |
 4th Quarter Earnings 2012 |