EX-99.1 2 dex991.htm INVESTOR PRESENTATION GIVEN FEBRUARY 24, 2010 Investor presentation given February 24, 2010
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
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.
®

3
Corporate Profile
Corporate Profile
A Texas based Financial Holding Company with approximately $9 billion
in assets
2
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
CAGR
of
15%
for
EPS
(diluted)
and
33% for net income
Shareholder driven with approximately 11% inside ownership
Excellent
asset
quality
–
Net
Charge
Offs
/
Average
Loans
of
0.12%
for
three months ending December 31, 2009
Excellent
cost
control
–
under
50%
efficiency
ratio
Since 2000, integrated over 20 successful acquisitions
a Track Record of Success
nd

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 December 31, 2009
Tangible Common Equity Ratio increases 40 basis points to 5.53%

5
Banking Center Network
Banking Center Network
Sources:  SNL Financial and MapPoint
Texas has five of the
nation’s top 20 cities
in population:
4  Houston
7  San Antonio
9  Dallas
16  Austin
17  Fort Worth
161 Full Service Locations
9
in Bryan/ College Station Area
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
The Houston MSA is
the nation’s 6th
largest regional area
with 5.6 million
residents
The Dallas/ Fort
Worth MSA is the
nation’s 4th largest
regional area with
6.1 million residents
Including U.S. Bank Branch Acquisitions

PRSP Pro Forma Banking Center Map
6
Dallas, TX
Houston, TX
Prosperity Bancshares
First Banks, Inc.
Prosperity Bancshares
First Banks, Inc.

7
Balance Sheet Summary
Balance Sheet Summary
As Originally Reported
$ in millions
$0
$1,200
$2,400
$3,600
$4,800
$6,000
$7,200
$8,400
$9,600
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
Loans
Deposits
Assets
Equity
5 year CAGR
Loans = 27%
Deposits = 26%
Assets = 27%
Total footings as of 12/31/09
Loans = $3.377 bil.
Deposits = $7.259 bil.
Assets = $8.850 bil.

8
$0.65
$0.49
$2.41
$1.59
$1.77
$1.94
$2.06
$2.09
$0.00
$0.25
$0.50
$0.75
$1.00
$1.25
$1.50
$1.75
$2.00
$2.25
$2.50
2004
2005
2006
2007
2008
2009
4Q 2008
4Q 2009
EPS Growth Diluted
EPS Growth Diluted
*
**
*Excludes the non-cash after tax impairment charge related to FNMA/FLHMC preferred stock of $6.5 million.
**Excludes the non-cash after tax impairment charge related to FNMA/FLHMC preferred stock of $9.1 million.

9
Deposit Composition
Deposit Composition
Non-interest
Bearing DDA
20.56%
MMA &
Savings
26.76%
Interest
Bearing DDA
19.17%
CDs & IRAs
<$100,000
16.65%
CDs & IRAs
>$100,000
16.86%
$ in thousands
4Q09 Cost of Deposits= 1.01%
December 31, 2009
Amount
% of total
Non-interest Bearing DDA
$
1,492,612
20.56%
Interst
Bearing DDA
1,391,133
19.17
MMA & Savings
1,942,369
26.76
CD's & IRA's<100m
1,208,658
16.65
CD's & IRA's>100m
1,223,778
16.86
Total Deposits
$
7,258,550
100.00%

10
Net Interest Margin
*
Net Interest Margin
*
4.04%
4.08%
4.24%
3.98%
3.65%
4.15%
4.10%
4.12%
4.07%
4.09%
4.03%
3.93%
3.60%
3.70%
3.80%
3.90%
4.00%
4.10%
4.20%
4.30%
1Q07
2Q07
3Q07
4Q07
1Q08
2Q08
3Q08
4Q08
1Q09
2Q09
3Q09
4Q09
* Tax equivalent-
annualized
Net Interest Margin for 2007 = 4.06%
Net Interest Margin for 2008 = 3.96% 
Net Interest Margin for 2009 = 4.08%

$0
$400
$800
$1,200
$1,600
$2,000
$2,400
$2,800
$3,200
$3,600
2004
2005
2006
2007
2008
2009
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
Home Equity
3.48%
Agriculture
4.01%
Consumer
3.03%
1-4 Family
Residential
21.00%
Commercial
12.31%
Construction
16.51%
Commercial
R.E.
39.66%
$ in thousands
Loans/ Deposits: 46.5%
December 31, 2009
Construction Loan Breakout
Approximate $ in million
CRE Loan Breakout
Approximate $ in million
Owner Occupied:     
$614
Office Building:              
$81
Multi-family:                
$78
Strip Center:
$151
Church:
$92
Other:
$323
Amount
% of total
Commercial R.E.
$
1,339,219
39.66%
Commercial
415,512
12.31
Construction
557,245
16.51
1-4 Family Residential
709,101
21.00
Consumer
102,436
3.03
Agriculture
135,529
4.01
Home Equity
117,661
3.48
Gross Loans
$
3,376,703
100.0%
$146
Single Family:
Land Development:
$89
Raw Land:
Lots:
$79
$153
Commercial/ Other:
$90

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
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
Note: 4Q09 does not include IBOC, or MCBI as they have yet to report 4Q09 earnings
13
0.48%
0.40%
0.49%
0.05%
0.09%
0.17%
0.13%
0.38%
0.00%
0.48%
0.64%
0.40%
3.24%
2.26%
1.18%
0.84%
1.02%
0.97%
0.83%
0.70%
0.97%
3.24%
3.22%
2.26%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
2001
2002
2003
2004
2005
2006^
2007^
2008^
2009^
4Q08^
3Q09^
4Q09^
PRSP NPA*/Loans + OREO
Peer NPA*/Loans + OREO

Asset Quality –
NCO/Average Loans
Asset Quality –
NCO/Average Loans
0.54%
0.23%
0.40%
0.06%
0.08%
0.06%
0.03%
0.04%
0.18%
0.23%
0.30%
0.47%
0.36%
0.92%
0.32%
0.30%
0.19%
0.20%
0.19%
0.13%
0.48%
1.23%
0.98%
0.80%
0.00%
0.20%
0.40%
0.60%
0.80%
1.00%
1.20%
1.40%
2001
2002
2003
2004
2005
2006^
2007^
2008^
2009^
4Q08^
3Q09^
4Q09^
PRSP NCO / Loans
Peer NCO / 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
Note: 4Q09 does not include IBOC, or MCBI as they have yet to report 4Q09 earnings
(Annualized)
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
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

4th Quarter 2009 Earnings

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
$111,879
Book Value Per Share
$12.32
$16.69
$20.26
$25.54
$27.24
$29.03
Tangible Book Value Per Share
$4.96
$6.48
$6.62
$7.42
$7.43
$9.43
ROAA
1.36%
1.42%
1.49%
1.49%
1.33%
1.26%
ROAE
14.27%
11.56%
10.24%
8.72%
7.85%
8.57%
ROAE-
tangible
33.41%
29.88%
31.53%
32.34%
26.77%
28.66%
Efficiency Ratio
49.45%
48.93%
45.29%
46.29%
46.51%
46.27%
Leverage Ratio
6.30%
7.83%
7.76%
8.09%
5.68%
6.47%
Tier I Risk Capital
13.56%
15.34%
13.52%
13.13%
10.27%
12.61%
Total Risk Capital
14.67%
16.37%
14.55%
14.11%
11.17%
13.86%
Tangible Ratio
4.38%
5.46%
5.24%
5.88%
4.19%
5.53%
*
**
*ROAA, ROAE, and ROAE tangible does not include the non-cash after tax impairment charge related to FNMA/FLHMC preferred stock of $6.5 million.
**ROAA, ROAE, and ROAE tangible does not include the non-cash after tax impairment charge related to FNMA/FLHMC preferred stock of $9.1 million.

18
PRSP Acquisitions
PRSP Acquisitions
Branch Acquisitions
Date of
Announcement
Seller
# of
Branches
Branch
Type
Branch
Locale
State
Amount of
Deposits
Transferred
($000)
Deposit
Premium
($000)
Premium/
Deposits (%)
Assets
Transferred:
Loan?
Y or
N
1
11/7/2008
Franklin Bank
46
Bank
TX
3,700,000
60,000
1.71
Yes
2
10/22/2007
Banco
Popular North America
6
Bank
TX
140,000
NA
10.1
Yes
3
6/15/2000
Compass Bancshares, Inc.
5
Bank
TX
87,000
NA
NA
Yes
4
2/27/1998
Grimes County Capital Corporation
1
Bank
TX
5,900
250
4.24
No
5
3/30/1997
Wells Fargo & Company
1
Bank
TX
NA
NA
NA
No
6
3/11/1996
Victoria Bankshares, Inc.
1
Bank
TX
46,000
NA
NA
Yes
Date of
Announcement
Seller
# of
Branches
City
State
Type
Consideration
Accounting
Method
PRSP
Assets
($000)
Sellers'
Assets
($000)
Sellers'
Assets
Contribution
(%)
Deal
Value
($000)
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
At Announcement

19
Historical Loan Composition
Historical Loan Composition
$ in millions
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%
$
557.2
16.5%
38.4%
1-4 Family Residential
$
260.5
25.2%
$
313.2
20.3%
$
377.0
17.3%
$
526.3
16.7%
$
668.1
18.7%
$
709.1
21.0%
22.2%
Home Equity
$
34.5
3.3%
$
58.7
3.8%
$
63.4
2.9%
$
93.9
3.0%
$
107.0
3.0%
$
117.7
3.5%
27.8%
Commercial Real Estate
$
389.6
37.7%
$
619.3
40.3%
$
881.1
40.5%
$
1,148.7
36.6%
$
1,343.4
37.7%
$
1,339.2
39.7%
28.0%
Agriculture
$
44.1
4.2%
$
56.3
3.6%
$
57.4
2.6%
$
114.0
3.6%
$
145.7
4.1%
$
135.5
4.0%
25.2%
Consumer
$
52.9
5.1%
$
65.1
4.2%
$
66.7
3.1%
$
123.2
3.9%
$
137.7
3.9%
$
102.4
3.0%
14.1%
Total Loans
$
1,035.6
100.0%
$
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%
26.7%

4th Quarter 2009 Earnings