Prosperity Bancshares, Inc.®, a Texas corporation, was formed in 1983 as
a vehicle to acquire the former Allied Bank in Edna, Texas, which was chartered
in 1949 as The First National Bank of Edna and is now known as Prosperity Bank.
The Company is a registered financial holding company that derives substantially
all of its revenues and income from the operation of its bank subsidiary, Prosperity
Bank® (“Prosperity Bank®” or the “Bank”). The
Bank provides a wide array of financial products and services to small and medium-sized
businesses and consumers. As of December 31, 2015, the Bank operated 241 full
service banking locations; 60 in the Houston area, including The Woodlands;
30 in the South Texas area, including Corpus Christi and Victoria; 36 in the
Dallas/Fort Worth area; 22 in the East Texas area; 29 in the Central Texas area,
including Austin and San Antonio; 34 in the West Texas area, including Lubbock,
Midland-Odessa and Abilene; 16 in the Bryan/College Station area, 6 in the Central
Oklahoma area and 8 in the Tulsa, Oklahoma area. The Company’s principal
executive office is located at Prosperity Bank Plaza, 4295 San Felipe in Houston,
Texas and its telephone number is (713) 693-9300. The Company’s website
address is www.prosperitybankusa.com.
The Company’s market consists of the communities served by its banking
centers. The diverse nature of the economies in each local market served by
the Company provides the Company with a varied customer base and allows the
Company to spread its lending risk throughout a number of different industries
including professional service firms and their principals, manufacturing, tourism,
recreation, petrochemicals, farming and ranching. The Company’s market
areas outside of Houston, Dallas, Corpus Christi, San Antonio, Lubbock, Austin,
Tulsa and Oklahoma City are dominated by either small community banks or branches
of larger regional banks. Management believes that the Company, through its
responsive customer service and community banking philosophy, combined with
the sophistication of a larger regional bank holding company, has a competitive
advantage in its market areas and excellent growth opportunities through acquisitions,
new banking center locations and additional business development.
Operating under a community banking philosophy, the Company seeks to develop
broad customer relationships based on service and convenience while maintaining
its conservative approach to lending and sound asset quality. The Company has
grown through a combination of internal growth, the acquisition of community
banks and branches of banks and the opening of new banking centers. Utilizing
a low cost of funds and employing stringent cost controls, the Company has been
profitable in every year of its existence, including the periods of adverse
economic conditions in Texas.
The Company, through the Bank, offers a variety of traditional loan and deposit
products to its customers, which consist primarily of consumers and small and
medium-sized businesses. The Bank tailors its products to the specific needs
of customers in a given market.
Continue Community Banking Emphasis. Although the Company has significantly
grown in the last several years, it intends to continue operating as a community
banking organization focused on meeting the specific needs of consumers and
small and medium-sized businesses in its market areas. The Company provides
a high degree of responsiveness combined with a wide variety of banking products
and services. The Company staffs its banking centers with experienced bankers
with lending expertise in the specific industries found in the given community,
and gives them authority to make certain pricing and credit decisions, avoiding
the bureaucratic structure of larger banks.
Expand Market Share Through Internal Growth and a Disciplined Acquisition Strategy.
The Company intends to continue seeking opportunities, both inside and outside
its existing markets, to expand either by acquiring existing banks or branches
of banks or by establishing new banking centers. All of the Company’s
acquisitions have been accretive to earnings within 12 months after acquisition
date and generally have supplied the Company with relatively low-cost deposits
which have been used to fund the Company’s lending and investing activities.
However, the Company makes no guarantee that future acquisitions, if any, will
be accretive to earnings within any particular time period. Factors used by
the Company to evaluate expansion opportunities include (1) the similarity in
management and operating philosophies, (2) whether the acquisition will be accretive
to earnings and enhance shareholder value, (3) the ability to improve the efficiency
ratio through economies of scale, (4) whether the acquisition will strategically
expand the Company’s geographic footprint, and (5) the opportunity to
enhance the Company’s market presence in existing market areas.
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