Filed by Prosperity Bancshares, Inc.
Pursuant to Rule 425 under the Securities Act of 1933
Subject Company: MainBancorp, Inc.
Commission File No. 333-106000
In connection with the proposed merger of MainBancorp, Inc. into Prosperity Bancshares, Inc., Prosperity Bancshares has previously filed with the Securities and Exchange Commission a registration statement on Form S-4 to register shares of Prosperity Bancshares common stock to be issued in one or more transactions involving the acquisition of businesses, assets, properties or securities. In connection with the proposed transaction between Prosperity Bancshares and MainBancorp, the shares of common stock to be issued by Prosperity Bancshares to the shareholders of MainBancorp have been registered under the registration statement on Form S-4 previously filed with the Securities and Exchange Commission. Investors and security holders are advised to read the registration statement and the prospectus included within the registration statement because they contain important information about Prosperity Bancshares. Investors and security holders may obtain free copies of these documents through the website maintained by the SEC at http://www.sec.gov. Free copies of the prospectus may also be obtained 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 Bancshares’ telephone number is (713) 693-9307.
The following are materials used in connection with a presentation at the Fourth Annual KBW Community Bank Investor Conference held on July 30, 2003:
Prosperity Bancshares, Inc.SM
[LOGO]
Fourth Annual
Community Bank
Investor Conference
PROSPERITY
BANCSHARES, INC.SM
| Real Bankers... | ||
| www.prosperitybanktx.com |
not just a bank.SM |
Prosperity Bancshares, Inc.SM
“Safe Harbor” Statement
under the Private Securities Litigation Reform Act of 1999
The statements contained in this presentation which are not historical facts contain forward-looking information with respect to plans, projections, or future performance of Prosperity Bancshares, Inc. and its subsidiaries. Forward-looking statements, within the meaning of Section 21E of the Securities Exchange Act of 1934, may have been made in this document. Prosperity’s results may differ materially from those in the forward-looking statements for a variety of reasons, including actions of competitors; changes in laws and regulations; customer and consumer response to marketing; effectiveness of spending, investment or programs; and economic conditions. These factors, and others, are more fully described in Prosperity Bancshares, Inc.’s filings with the Securities and Exchange Commission.
Copies of Prosperity Bancshares, Inc.’s SEC filings are available over the Internet at no charge from www.freeedgar.com.
| Real Bankers... | ||
| www.prosperitybanktx.com |
not just a bank.SM |
Prosperity Bancshares, Inc.SM
Prosperity is . . . .
a Track Record of Success
| • | A Texas based Financial Holding Company |
| • | Customer focused |
| • | Results oriented |
| • | Shareholder driven |
| • | Accretive acquisitions |
| • | Excellent asset quality |
| • | Fast growing |
| • | Serving Houston, Dallas and many communities along the NAFTA Highway southwest of Houston |
| Real Bankers... | ||
| www.prosperitybanktx.com |
not just a bank.SM |
Prosperity Bancshares, Inc.SM
Recognition by Leading Business and Industry Publications
[PHOTOS]
| www.prosperitybanktx.com |
Real Bankers... not just a bank.SM |
Prosperity Bancshares, Inc.SM
49 Full Service Banking Centers
45 Existing
4 Proposed
73% of deposits are within 80 miles of Houston
12% of deposits are in the Dallas area
29 Locations in Houston CMSA
9 Locations in Dallas MSA
5 Existing
4 Proposed
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Real Bankers... not just a bank.SM |
Prosperity Bancshares, Inc.SM
Total Return Performance
[GRAPH]
Source: CRSP, Center for Research in Security Prices, Graduate School of Business, The University of Chicago 2003.
Used with permission. All rights reserved. crsp.com
SNL Financial LC (434) 977-1600
© 2003
| www.prosperitybanktx.com |
Real Bankers... not just a bank.SM |
Prosperity Bancshares, Inc.SM
2002 Highlights
| EPS up 54% from 2001 |
Total Assets up 44% from 2001 | |
| Return on Average Equity of 18.7% |
Five (5) Acquisitions
— Added 13 locations
— Added $489 million in Assets | |
| Total Loans up 60% from 2001 |
Improved Houston visibility | |
| Total Deposits up 41% from 2001 |
Entered Dallas/Fort Worth Metroplex | |
| www.prosperitybanktx.com |
Real Bankers... not just a bank.SM |
Prosperity Bancshares, Inc.SM
Second Quarter 2003 Highlights
| EPS up 17% from 2Q02 |
Total Assets up 46% from 2Q02 | |
| Return on Average Equity of 16%
Total Loans up 46% from 2Q02 |
Three (3) Acquisitions
— Adding 6 locations
— Adding $336 million in Assets | |
| Total Deposits up 44% from 2Q02 |
Improved Dallas visibility | |
| Fee Based Income up 72% from 2Q02 |
TV and Radio advertising improved name recognition | |
| www.prosperitybanktx.com |
Real Bankers... not just a bank.SM |
Prosperity Bancshares, Inc.SM
Balance Sheet Summary
As Originally Reported
[GRAPH]
| www.prosperitybanktx.com |
Real Bankers... not just a bank.SM |
Prosperity Bancshares, Inc.SM
Annual Results
| 1997 |
1998 |
1999 |
2000 |
2001 |
2002 |
5 Year CAGR |
|||||||||||||||||||||
| Assets |
$ | 320,143 | $ | 436,312 | $ | 608,673 | $ | 703,073 | $ | 1,262,325 | $ | 1,822,256 | 41.60 | % | |||||||||||||
| Loans |
$ | 120,578 | $ | 170,478 | $ | 223,505 | $ | 248,665 | $ | 424,400 | $ | 679,559 | 41.30 | % | |||||||||||||
| Deposits |
$ | 291,516 | $ | 390,659 | $ | 534,756 | $ | 634,262 | $ | 1,123,397 | $ | 1,586,611 | 40.30 | % | |||||||||||||
| Net Income |
$ | 3,562 | $ | 4,460 | $ | 6,474 | $ | 8,027 | $ | 12,958 | $ | 21,321 | 43.00 | % | |||||||||||||
| EPS (diluted) |
$ | 0.46 | $ | 0.52 | $ | 0.60 | $ | 0.74 | $ | 0.79 | $ | 1.22 | 21.54 | % | |||||||||||||
| EPS Growth |
13.00 | % | 15.40 | % | 23.30 | % | 6.80 | % | 54.40 | % | |||||||||||||||||
| ROAA |
1.17 | % | 1.26 | % | 1.33 | % | 1.29 | % | 1.09 | % | 1.45 | % | |||||||||||||||
| ROAE |
16.32 | % | 15.97 | % | 15.15 | % | 17.41 | % | 15.19 | % | 18.66 | % | |||||||||||||||
| NIM (te) |
4.02 | % | 4.13 | % | 4.18 | % | 4.09 | % | 3.86 | % | 4.16 | % | |||||||||||||||
| Efficiency Ratio |
59.48 | % | 57.38 | % | 55.13 | % | 56.57 | % | 60.14 | % | 50.36 | % | |||||||||||||||
| Real Bankers... | ||
| www.prosperitybanktx.com |
not just a bank.SM |
Prosperity Bancshares, Inc.SM
Quarterly Results
| 6/30/02 |
6/30/03 |
Growth |
Growth Rate |
|||||||||||
| Assets |
$ | 1,360,356 | $ | 1,983,277 | $ | 622,921 | 45.8 | % | ||||||
| Loans |
$ | 478,935 | $ | 699,525 | $ | 220,590 | 46.1 | % | ||||||
| Deposits |
$ | 1,211,933 | $ | 1,746,548 | $ | 534,615 | 44.1 | % | ||||||
| Net Income |
$ | 4,795 | $ | 6,497 | $ | 1,702 | 35.50 | % | ||||||
| EPS (diluted) |
$ | 0.29 | $ | 0.34 | $ | 0.05 | 17.2 | % | ||||||
| ROAA (annualized) |
1.43 | % | 1.34 | % | ||||||||||
| ROAE (annualized) |
20.16 | % | 15.88 | % | ||||||||||
| NIM (te) (annualized) |
4.21 | % | 3.77 | % | ||||||||||
| Efficiency Ratio |
52.06 | % | 50.73 | % | ||||||||||
| Real Bankers... | ||
| www.prosperitybanktx.com |
not just a bank.SM |
Prosperity Bancshares, Inc.SM
Deposit Composition
As of June 30, 2003
$1.747 Billion
[GRAPH]
| CDs & IRAs>100 |
$ | 296.3 | 17 | % | ||
| Non-interest bearing DDA |
$ | 362.2 | 21 | % | ||
| Interest bearing DDA |
$ | 366.2 | 21 | % | ||
| CDs & IRAs<100 |
$ | 321.8 | 18 | % | ||
| MMA & Savings |
$ | 400.0 | 23 | % |
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| www.prosperitybanktx.com |
not just a bank.SM |
Prosperity Bancshares, Inc.SM
Loan Composition
As of June 30, 2003
$699.525 Million
[CHART]
| Comsumer |
$ | 56.2 | 8 | % | ||||
| Agriculture |
$ | 42.9 | 6 | % | ||||
| Commercial |
$ | 312.5 | 45 | % | ||||
| 1-4 Family Residential |
$ | 240.9 | 34 | % | ||||
| Construction |
$ | 47.5 | 7 | % |
| www.prosperitybanktx.com |
Real Bankers not just a bank.SM |
Prosperity Bancshares, Inc.SM
Credit Quality
As Originally Reported
[GRAPH]
% of Average Earning Assets
| Texas Peer Group includes: CFR; IBOC; SWBT; TRBS; SBIB; CBSA; FFIN; SBSI; MCBI; SBIT; TXIU; GNTY; JXVL (Data as of 3/31/03) |
| www.prosperitybanktx.com |
Real Bankers not just a bank.SM |
Prosperity Bancshares, Inc.SM
PRSP Completed Acquisitions
All announced bank acquisitions
| At Announcement | ||||||||||||||||||||
| Announce |
Seller |
City |
State |
Type |
Consideration |
Accounting Method |
PRSP ($000) |
Sellers ($000) |
Sellers’ Asset Contribution (%) |
Deal Value ($M) | ||||||||||
| 03/05/2003 |
BankDallas SSB | Dallas | TX | Thrift | Cash | Purchase | 1,822,256 | 40,716 | 2.19 | 7.0 | ||||||||||
| 02/03/2003 |
Abrams Centre Bancshares, Inc. | Dallas | TX | Bank | Cash | Purchase | 1,822,256 | 95,388 | 4.97 | 16.3 | ||||||||||
| 08/15/2002 |
First National Bank of Bay City | Bay City | TX | Bank | Cash | Purchase | 1,360,356 | 28,174 | 2.03 | 5.0 | ||||||||||
| 07/15/2002 |
Southwest Bank Holding Company | Dallas | TX | Bank | Cash | Purchase | 1,289,637 | 127,055 | 8.97 | 21.0 | ||||||||||
| 05/02/2002 |
Paradigm Bancorporation, Incorporated | Houston | TX | Bank | Common Stock |
Purchase | 1,289,637 | 259,262 | 16.74 | 41.6 | ||||||||||
| 04/26/2002 |
First State Bank | Needville | TX | Bank | Cash | Purchase | 1,289,637 | 17,754 | 1.36 | 3.7 | ||||||||||
| 02/22/2002 |
Texas Guaranty Bank, N.A. | Houston | TX | Bank | Cash | Purchase | 1,262,152 | 75,019 | 5.61 | 11.8 | ||||||||||
| 11/08/2000 |
Commercial Bancshares, Inc. | Houston | TX | Bank | Common Stock |
Pooling | 693,079 | 401,271 | 36.67 | 53.3 | ||||||||||
| 06/21/1999 |
South Texas Bancshares, Inc. | Beeville | TX | Bank | Cash | Purchase | 461,903 | 142,091 | 23.53 | 23.4 | ||||||||||
| 06/05/1998 |
Union State Bank | East Bernard |
TX | Bank | Cash | Purchase | 339,287 | 79,174 | 18.92 | 17.6 | ||||||||||
| Announce |
Seller |
# of Brchs |
Branch Type |
Branch Locale State |
Amount of ($000) |
Deposit ($000) |
Premium/ Deposits (%) |
Assets Transferred: Loans? Y or N | ||||||||
| 06/15/00 |
Compass Bancshares Inc. | 5 | Bank | TX | 87,000 | NA | NA | Yes | ||||||||
| 02/27/98 |
Grimes County Capital Corporation | 1 | Bank | TX | 5,900 | 250 | 4.24 | No | ||||||||
| 03/30/97 |
Wells Fargo & Company | 1 | Bank | TX | NA | NA | NA | No | ||||||||
| 03/11/96 |
Victoria Bankshares, Inc. | 1 | Bank | TX | 46,000 | NA | NA | Yes |
| www.prosperitybanktx.com |
Real Bankers not just a bank.SM |
Prosperity Bancshares, Inc.SM
Why Invest in PRSP
[GRAPH]
| Real Bankers... | ||
| www.prosperitybanktx.com |
not just a bank.SM |
Prosperity Bancshares, Inc.
Contact Information
| Corporate Headquarters |
Investor Contacts | |
| Prosperity Bank Plaza |
David Zalman | |
| 4295 San Felipe |
Chief Executive Officer | |
| Houston, Texas 77027 |
979.543.2200 david.zalman@prosperitybanktx.com | |
| 713.693.9300 Telephone |
David Hollaway | |
| 713.693.9309 Fax |
Chief Financial Officer | |
| www.prosperitybanktx.com |
979.543.2200 david.hollaway@prosperitybanktx.com | |
| Dan Rollins | ||
| Senior Vice President | ||
| 713.693.9300 dan.rollins@prosperitybanktx.com | ||
| Real Bankers... | ||
| www.prosperitybanktx.com |
not just a bank.SM |
“We are here to help our customers succeed”
REAL BANKERS... NOT JUST A BANK
| Chris Bagley | Anne Farra | Bob Benter | ||
| President, |
President, | President, | ||
| Waugh Drive |
Medical Center | Post Oak | ||
| Banking Center |
Banking Center | Banking Center |
[LOGO]
PROSPERITY BANK
Forty-Two Locations
in Texas to Serve You
| [LOGO] Member FDIC |
www.prosperitybanktx.com |
Prosperity Bancshares, Inc. SM
[LOGO]
—PROSPERITY—
BANCSHARES, INC.SM
| Real Bankers... | ||
| www.prosperitybanktx.com |
not just a bank.SM |