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Prosperity Bancshares Inc

PROSPERITY BANCSHARES, INC.® REPORTS FIRST QUARTER 2025 EARNINGS

  • First quarter earnings per share (diluted) of $1.37, an increase of 16.1% compared to first quarter 2024
  • First quarter net income increased 17.9% to $130.2 million compared to first quarter 2024
  • First quarter net interest margin increased 35 basis points to 3.14% compared to first quarter 2024
  • Noninterest-bearing deposits of $9.7 billion, representing 34.5% of total deposits
  • Borrowings decreased $500.0 million during first quarter 2025
  • Allowance for credit losses on loans and on off-balance sheet credit exposure of $386.7 million and allowance for credit losses on loans to total loans, excluding Warehouse Purchase Program, of 1.67%(1)
  • Nonperforming assets remain low at 0.24% of first quarter average interest-earning assets
  • Return (annualized) on first quarter average assets of 1.34% and average tangible common equity of 13.23%(1)
  • Named in Forbes' 2025 America's Best Banks
  • Ranked among "America's Best Regional Banks" by Newsweek in 2025
  • Named Best Overall Bank in Texas by Money for 2025

HOUSTON , April 23, 2025 /PRNewswire/ -- Prosperity Bancshares, Inc.® (NYSE: PB), the parent company of Prosperity Bank® (collectively, "Prosperity"), reported net income of $130.2 million for the quarter ended March 31, 2025 compared with $110.4 million for the same period in 2024. Net income per diluted common share was $1.37 for the quarter ended March 31, 2025 compared with $1.18 for the same period in 2024. The annualized return on first quarter average assets was 1.34%. Additionally, borrowings decreased $500.0 million during the first quarter of 2025. Nonperforming assets remain low at 0.24% of first quarter average interest-earning assets. 

"I am pleased to announce a 17.9% increase in net income and a 16.1% increase in earnings per share, each compared with the first quarter of 2024.  As we predicted, our net interest margin continues to increase as our assets reprice higher.  We expect this trend to continue over the next several years," said David Zalman, Prosperity's Senior Chairman and Chief Executive Officer.

"We and others believe that Prosperity is doing the right thing. Prosperity has been ranked as one of Forbes Best Banks since the list's inception in 2010 and was ranked in the top 10 for 14 consecutive years. Additionally, Prosperity was named the "Best Overall Bank in Texas" by Money for 2024-2025 and was ranked among "America's Best Regional Banks" by Newsweek in 2025," added Zalman.

"Prosperity continues to focus on long term relationships and our customers' success while maintaining strong asset quality, solid earnings and a fair return to shareholders. Prosperity maintained a high tangible equity to tangible assets ratio of 11.2%, with tangible equity of $3.952 billion," continued Zalman.

"The Texas economy continues to expand.  Employment growth was solid, and sales tax revenue increased broadly according to the Federal Reserve Bank of Dallas Texas Economic Indicators dated April 3, 2025. The March 2025 Texas Business Outlook Surveys showed continued expansion in wages and benefits across all sectors," stated Zalman.

"Despite the uncertainty with tariffs, our teams in Texas and Oklahoma are optimistic based on conversations with our customers about their outlook and plans.  We will continue to be opportunistic, work hard, stay close to our customers and their needs and maintain a quality loan portfolio," continued Zalman.

"I would like to thank our customers for their business and continued trust and our associates, directors and officers for their hard work and dedication," concluded Zalman.

Results of Operations for the Three Months Ended March 31, 2025

Net income was $130.2 million(2) for the three months ended March 31, 2025 compared with $110.4 million(3) for the same period in 2024, an increase of $19.8 million or 17.9%. Net income per diluted common share was $1.37 for the three months ended March 31, 2025 compared with $1.18 for the same period in 2024, an increase of 16.1%. The changes were primarily due to an increase in net interest income, partially offset by an increase in salaries and benefits and provision for income taxes. On a linked quarter basis, net income was $130.2 million(2) for the three months ended March 31, 2025 compared with $130.1 million(4) for the three months ended December 31, 2024. Net income per diluted common share was $1.37 for the three months ended March 31, 2025 and December 31, 2024. Annualized returns on average assets, average common equity and average tangible common equity for the three months ended March 31, 2025 were 1.34%, 6.94% and 13.23%(1), respectively. Prosperity's efficiency ratio (excluding net gains and losses on the sale, write-down or write-up of assets and securities) was 45.71%(1) for the three months ended March 31, 2025.

Net interest income before provision for credit losses was $265.4 million for the three months ended March 31, 2025 compared with $238.2 million for the same period in 2024, an increase of $27.1 million or 11.4%. The change was primarily due to an increase in the average balances and average rates on loans, an increase in the average balances on federal funds sold and other earning assets and a decrease in the average balances and rates on other borrowings, partially offset by a decrease in the average balances on investment securities and an increase in the average balances on interest-bearing deposits. Net interest income before provision for credit losses decreased $2.4 million or 0.9% to $265.4 million for the three months ended March 31, 2025 compared with $267.8 million for the three months ended December 31, 2024.

The net interest margin on a tax equivalent basis was 3.14% for the three months ended March 31, 2025 compared with 2.79% for the same period in 2024. The change was primarily due to an increase in the average balances and average rates on loans, an increase in the average balances on federal funds sold and other earning assets and a decrease in the average balances and average rates on other borrowings, partially offset by a decrease in the average balances on investment securities and an increase in the average balances on interest-bearing deposits. The net interest margin on a tax equivalent basis was 3.14% for the three months ended March 31, 2025 compared with 3.05% for the three months ended December 31, 2024. The change was primarily due to a decrease in the average balances and average rates on other borrowings and a decrease in the average rates on interest-bearing deposits, partially offset by a decrease in the average balances and average rates on loans and a decrease in the average balances and average rates on federal funds sold and other earning assets.

Noninterest income was $41.3 million for the three months ended March 31, 2025 compared with $38.9 million for the same period in 2024, an increase of $2.4 million or 6.3%. The change was primarily due to increases in service charges on deposit accounts, nonsufficient funds fees and other noninterest income, partially offset by a decrease in trust income. Noninterest income was $41.3 million for the three months ended March 31, 2025 compared with $39.8 million for the three months ended December 31, 2024, an increase of $1.5 million or 3.7%.

Noninterest expense was $140.3 million for the three months ended March 31, 2025 compared with $135.8 million for the same period in 2024, an increase of $4.5 million or 3.3%, primarily due to an increase in salaries and benefits related to the merger of Lone Star State Bancshares, Inc. ("Lone Star") with Prosperity Bancshares and the merger of Lone Star State Bank of West Texas ("Lone Star Bank") with Prosperity Bank, both effective on April 1, 2024  (collectively, the "Merger"). Noninterest expense was $140.3 million for the three months ended March 31, 2025 compared with $141.5 million for the three months ended December 31, 2024, a decrease of $1.2 million or 0.9%.

Balance Sheet Information

At March 31, 2025, Prosperity had $38.765 billion in total assets, an increase of $8.2 million, compared with $38.757 billion at March 31, 2024. Linked quarter total assets decreased $802.1 million compared with $39.567 billion at December 31, 2024.

Loans were $21.978 billion at March 31, 2025, an increase of $712.3 million or 3.3%, compared with $21.265 billion at March 31, 2024, primarily due to the Merger. Linked quarter loans decreased $171.6 million from $22.149 billion at December 31, 2024. Loans, excluding Warehouse Purchase Program loans, were $20.920 billion at March 31, 2025 compared with $20.400 billion at March 31, 2024, an increase of $519.4 million or 2.5%, and compared with $21.068 billion at December 31, 2024, a decrease of $148.6 million.

Deposits were $28.027 billion at March 31, 2025, an increase of $851.3 million or 3.1%, compared with $27.176 billion at March 31, 2024, primarily due to the Merger. Linked quarter deposits decreased $354.5 million from $28.381 billion at December 31, 2024.

The table below provides detail on the impact of loans acquired and deposits assumed in the Merger:

Balance Sheet Data (at period end)
















(In thousands)


















Mar 31, 2025



Dec 31, 2024



Sep 30, 2024



Jun 30, 2024



Mar 31, 2024




(Unaudited)



(Unaudited)



(Unaudited)



(Unaudited)



(Unaudited)


Loans acquired (including new production since acquisition date):
















Lone Star Bank


$

976,624



$

1,057,618



$

1,109,783



$

1,084,559



$

—


Prosperity Bank
















Warehouse Purchase Program loans



1,057,893




1,080,903




1,228,706




1,081,403




864,924


All other loans



19,943,053




20,010,688




20,042,363




20,154,853




20,400,323


Total loans


$

21,977,570



$

22,149,209



$

22,380,852



$

22,320,815



$

21,265,247


















Deposits assumed (including new deposits since acquisition date):
















Lone Star Bank


$

983,280



$

1,093,536



$

1,136,216



$

1,187,821



$

—


All other deposits



27,043,519




27,287,802




26,951,395




26,745,265




27,175,518


Total deposits


$

28,026,799



$

28,381,338



$

28,087,611



$

27,933,086



$

27,175,518


Excluding loans acquired in the Merger and new production at the acquired banking centers since April 1, 2024, loans at March 31, 2025 decreased $264.3 million compared with March 31, 2024 and decreased $90.6 million compared with December 31, 2024.

Excluding deposits assumed in the Merger and new deposits generated at the acquired banking centers since April 1, 2024, deposits at March 31, 2025 decreased $132.0 million compared with March 31, 2024 and decreased $244.3 million compared with December 31, 2024.

Asset Quality

Nonperforming assets totaled $81.4 million or 0.24% of quarterly average interest-earning assets at March 31, 2025 compared with $83.8 million or 0.24% of quarterly average interest-earning assets at March 31, 2024 and $81.5 million or 0.23% of quarterly average interest-earning assets at December 31, 2024.

The allowance for credit losses on loans and on off-balance sheet credit exposures was $386.7 million at March 31, 2025 compared with $366.7 million at March 31, 2024 and $389.5 million at December 31, 2024. There was no provision for credit losses for the three months ended March 31, 2025, March 31, 2024 and December 31, 2024.

The allowance for credit losses on loans was $349.1 million or 1.59% of total loans at March 31, 2025 compared with $330.2 million or 1.55% of total loans at March 31, 2024 and $351.8 million or 1.59% of total loans at December 31, 2024. Excluding Warehouse Purchase Program loans, the allowance for credit losses on loans to total loans was 1.67%(1) at March 31, 2025 compared with 1.62%(1) at March 31, 2024 and 1.67%(1) at December 31, 2024.

Net charge-offs were $2.7 million for the three months ended March 31, 2025 compared with net charge-offs of $2.1 million for the three months ended March 31, 2024 and net charge-offs of $2.6 million for the three months ended December 31, 2024. For the first quarter of 2025, $8.3 million of reserves on resolved purchased credit deteriorated ("PCD") loans without any related charge-offs were released to the general reserve.

Dividend

Prosperity Bancshares declared a second quarter 2025 cash dividend of $0.58 per share to be paid on July 1, 2025, to all shareholders of record as of June 13, 2025.

Merger of Lone Star State Bancshares, Inc.

On April 1, 2024, Prosperity completed the merger of Lone Star and its wholly owned subsidiary Lone Star Bank, headquartered in Lubbock, Texas. Lone Star Bank operated 5 full-service banking offices in the West Texas area, including its main office in Lubbock, and 1 banking center in each of Brownfield, Midland, Odessa and Big Spring, Texas.

Pursuant to the terms of the definitive agreement, Prosperity issued 2,376,182 shares of Prosperity common stock plus approximately $64.1 million in cash for all outstanding shares of Lone Star in the second quarter of 2024. This resulted in goodwill of $106.7 million as of March 31, 2025.

Conference Call

Prosperity's management team will host a conference call on Wednesday, April 23, 2025, at 11:30 a.m. Eastern Time (10:30 a.m. Central Time) to discuss Prosperity's first quarter 2025 earnings. Individuals and investment professionals may participate in the call by dialing 877-883-0383 for domestic participants, or 412-902-6506 for international participants. The participant elite entry number is 7564851.

Alternatively, individuals may listen to the live webcast of the presentation by visiting Prosperity's website at www.prosperitybankusa.com. The webcast may be accessed from Prosperity's Investor Relations page by selecting "Presentations, Webcasts & Calls" from the menu and following the instructions.

Non-GAAP Financial Measures

Prosperity's management uses certain non-GAAP financial measures to evaluate its performance. Specifically, for internal planning and forecasting purposes, Prosperity reviews each of diluted earnings per share, return on average assets, return on average common equity, and return on average tangible common equity, in each case excluding merger related provision for credit losses, net of tax, merger related expenses, net of tax, Federal Deposit Insurance Corporation ("FDIC") special assessment, net of tax, and net gain on the sale or write-up of securities, net of tax; return on average tangible common equity; tangible book value per share; the tangible equity to tangible assets ratio; allowance for credit losses to total loans excluding Warehouse Purchase Program loans; the efficiency ratio, excluding net gains and losses on the sale, write-down or write-up of assets and securities; and the efficiency ratio, excluding net gains and losses on the sale, write-down or write-up of assets and securities, merger related expenses, and FDIC special assessment. Prosperity believes these non-GAAP financial measures provide information useful to investors in understanding Prosperity's financial results and their presentation, together with the accompanying reconciliations, provides a more complete understanding of factors and trends affecting Prosperity's business and allows investors to view performance in a manner similar to management, the entire financial services sector, bank stock analysts and bank regulators. Further, Prosperity believes that these non-GAAP financial measures provide useful information by excluding certain items that may not be indicative of its core operating earnings and business outlook. These non-GAAP financial measures should not be considered a substitute for, nor of greater importance than, GAAP basis financial measures and results; Prosperity strongly encourages investors to review its consolidated financial statements in their entirety and not to rely on any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names. Please refer to the "Notes to Selected Financial Data" at the end of this Earnings Release for a reconciliation of these non-GAAP financial measures to the nearest respective GAAP financial measures.

Prosperity Bancshares, Inc. ®

As of March 31, 2025, Prosperity Bancshares, Inc.® is a $38.765 billionHouston, Texas based regional financial holding company providing personal banking services and investments to consumers and businesses throughout Texas and Oklahoma. Founded in 1983, Prosperity believes in a community banking philosophy, taking care of customers, businesses and communities in the areas it serves by providing financial solutions to simplify everyday financial needs. In addition to offering traditional deposit and loan products, Prosperity offers digital banking solutions, credit and debit cards, mortgage services, retail brokerage services, trust and wealth management, and treasury management.

Prosperity currently operates 284 full-service banking locations: 65 in the Houston area, including The Woodlands; 30 in the South Texas area including Corpus Christi and Victoria; 62 in the Dallas/Fort Worth area; 22 in the East Texas area; 31 in the Central Texas area including Austin and San Antonio; 45 in the West Texas area including Lubbock, Midland-Odessa, Abilene, Amarillo and Wichita Falls; 15 in the Bryan/College Station area; 6 in the Central Oklahoma area; and 8 in the Tulsa, Oklahoma area.

Cautionary Notes on Forward-Looking Statements

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: This release contains, and the remarks by Prosperity's management on the conference call may contain, forward-looking statements within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. From time to time, oral or written forward-looking statements may also be included in other information released to the public.  Such forward-looking statements are typically, but not exclusively, identified by the use in the statements of words or phrases such as "aim," "anticipate," "believe," "estimate," "expect," "goal," "guidance," "intend," "is anticipated," "is expected," "is intended," "objective," "plan," "projected," "projection," "will affect," "will be," "will continue," "will decrease," "will grow," "will impact," "will increase," "will incur," "will reduce," "will remain," "will result," "would be," variations of such words or phrases (including where the word "could," "may," or "would" is used rather than the word "will" in a phrase) and similar words and phrases indicating that the statement addresses some future result, occurrence, plan or objective. Forward-looking statements include all statements other than statements of historical fact, including forecasts or trends, and are based on current expectations, assumptions, estimates and projections about Prosperity Bancshares and its subsidiaries. These forward-looking statements may include information about Prosperity's possible or assumed future economic performance or future results of operations, including future revenues, income, expenses, provision for credit losses, provision for taxes, effective tax rate, earnings per share and cash flows and Prosperity's future capital expenditures and dividends, future financial condition and changes therein, including changes in Prosperity's loan portfolio and allowance for credit losses, changes in deposits, borrowings and the investment securities portfolio, future capital structure or changes therein, as well as the plans and objectives of management for Prosperity's future operations, future or proposed acquisitions, the future or expected effect of acquisitions on Prosperity's operations, results of operations, financial condition, and future economic performance, statements about the anticipated benefits of any proposed transactions, and statements about the assumptions underlying any such statement. These forward‑looking statements are not guarantees of future performance and are based on expectations and assumptions Prosperity currently believes to be valid. Because forward-looking statements relate to future results and occurrences, many of which are outside of Prosperity's control, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. These risks and uncertainties include, but are not limited to, whether Prosperity can: successfully identify acquisition targets and integrate the businesses of acquired companies and banks; continue to sustain its current internal growth rate or total growth rate; provide products and services that appeal to its customers; continue to have access to debt and equity capital markets; and achieve its sales objectives. Other risks include, but are not limited to: the possibility that credit quality could deteriorate; actions of competitors; changes in laws and regulations (including changes in governmental interpretations of regulations and changes in accounting standards); the possibility that the anticipated benefits of an acquisition transaction are not realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of two companies or as a result of the strength of the economy and competitive factors generally; a deterioration or downgrade in the credit quality and credit agency ratings of the securities in Prosperity's securities portfolio; customer and consumer demand, including customer and consumer response to marketing; effectiveness of spending, investments or programs; fluctuations in the cost and availability of supply chain resources; economic conditions, including currency rate, interest rate and commodity price fluctuations; changes in trade policies by the United States or other countries, such as tariffs or retaliatory tariffs; and the effect, impact, potential duration or other implications of weather and climate-related events. Prosperity disclaims any obligation to update such factors or to publicly announce the results of any revisions to any of the forward-looking statements included herein to reflect future events or developments. These and various other factors are discussed in Prosperity's Annual Report on Form 10-K for the year ended December 31, 2024, and other reports and statements Prosperity has filed with the Securities and Exchange Commission ("SEC"). Copies of the SEC filings for Prosperity may be downloaded from the Internet at no charge from http://www.prosperitybankusa.com.

_______________

(1)

Refer to the "Notes to Selected Financial Data" at the end of this Earnings Release for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure.

(2)

Includes purchase accounting adjustments of $3.2 million, net of tax, primarily comprised of loan discount accretion of $3.3 million for the three months ended March 31, 2025.

(3)

Includes purchase accounting adjustments of $2.0 million, net of tax, primarily comprised of loan discount accretion of $1.9 million for the three months ended March 31, 2024.

(4)

Includes purchase accounting adjustments of $3.3 million, net of tax, primarily comprised of loan discount accretion of $3.6 million for the three months ended December 31, 2024.

 

Bryan/College Station Area


Garland


Rusk


Mont Belvieu


Milwaukee

Bryan


Grapevine


Seven Points


Nederland


North University

Bryan-29th Street


Grapevine Main


Teague


Needville


Texas Tech Student Union

Bryan-East


Kiest


Tyler-Beckham


Rosenberg



Bryan-North


Lake Highlands


Tyler-South Broadway


Shadow Creek


Midland

Caldwell


McKinney


Tyler-University


Spring


North

College Station


McKinney Eldorado


Winnsboro


Tomball


Wadley

Hearne


McKinney Redbud




Waller


Wall Street

Huntsville


North Carrolton


Houston Area


West Columbia


West

Madisonville


Park Cities


Houston


Wharton



Navasota


Plano


Aldine


Winnie


Odessa

New Waverly


Plano-West


Alief


Wirt


Grant

Rock Prairie


Preston Forest


Bellaire




Kermit Highway

Southwest Parkway


Preston Parker


Beltway


South Texas Area -


Parkway

Tower Point


Preston Royal


Clear Lake


Corpus Christi



Wellborn Road


Red Oak


Copperfield


Calallen


San Angelo



Richardson


Cypress


Carmel


College Hills

Central Texas Area


Richardson-West


Downtown


Northwest


Sherwood Way

Austin


Rosewood Court


Eastex


Saratoga



Cedar Park


The Colony


Fairfield


Timbergate


Wichita Falls

Congress


Tollroad


First Colony


Water Street


Cattlemans

Lakeway


Trinity Mills


Fry Road




Kell

Liberty Hill


Turtle Creek


Gessner


Victoria



Northland


West 15th Plano


Gladebrook


Victoria Main


Other West Texas Area

Oak Hill


West Allen


Grand Parkway


Victoria-Navarro


Locations

Research Blvd


Westmoreland


Heights


Victoria-North


Big Spring

Westlake


Wylie


Highway 6 West


Victoria Salem


Big Spring - East





Little York




Brownfield

Other Central Texas Area


Fort Worth


Medical Center


Other South Texas Area


Brownwood

Locations


Haltom City


Memorial Drive


 Locations


Burkburnett

Bastrop


Hulen


Northside


Alice


Byers

Canyon Lake


Keller


Pasadena


Aransas Pass


Cisco

Dime Box


Museum Place


Pecan Grove


Beeville


Comanche

Dripping Springs


Renaissance Square


Pin Oak


Colony Creek


Early

Elgin


Roanoke


River Oaks


Cuero


Floydada

Flatonia


Stockyards


Sugar Land


Edna


Gorman

Fredericksburg




SW Medical Center


Goliad


Henrietta

Georgetown


Other Dallas/Fort Worth Area


Tanglewood


Gonzales


Levelland

Gruene


Locations


The Plaza


Hallettsville


Littlefield

Horseshoe Bay


Arlington


Uptown


Kingsville


Merkel

Kingsland


Azle


Waugh Drive


Mathis


Plainview

La Grange


Ennis


Westheimer


Padre Island


Slaton

Lexington


Gainesville


West University


Palacios


Snyder

Marble Falls


Glen Rose


Woodcreek


Port Lavaca



New Braunfels


Granbury




Portland


Oklahoma

Pleasanton


Grand Prairie


Katy


Rockport


Central Oklahoma Area

Round Rock


Jacksboro


Cinco Ranch


Sinton


Oklahoma City

San Antonio


Mesquite


Katy-Spring Green


Taft


23rd Street

Schulenburg


Muenster




Yoakum


Expressway

Seguin


Runaway Bay


The Woodlands


Yorktown


I-240

Smithville


Sanger


The Woodlands-College Park




Memorial

Thorndale


Waxahachie


The Woodlands-I-45


West Texas Area



Weimar


Weatherford


The Woodlands-Research Forest


Abilene


Other Central Oklahoma Area







Antilley Road


 Locations

Dallas/Fort Worth Area


East Texas Area


Other Houston Area


Barrow Street


Edmond

Dallas


Athens


Locations


Cypress Street


Norman

14th Street Plano


Blooming Grove


Angleton


Judge Ely



Abrams Centre


Canton


Bay City


Mockingbird


Tulsa Area

Addison


Carthage


Beaumont




Tulsa

Allen


Corsicana


Cleveland


Amarillo


Garnett

Balch Springs


Crockett


East Bernard


Hillside


Harvard

Camp Wisdom


Eustace


El Campo


Soncy


Memorial

Carrollton


Gilmer


Dayton




Sheridan

Cedar Hill


Grapeland


Galveston


Lubbock


S. Harvard

Coppell


Gun Barrel City


Groves


4th Street


Utica Tower

East Plano


Jacksonville


Hempstead


66th Street


Yale

Euless


Kerens


Hitchcock


82nd Street



Frisco


Longview


Liberty


86th Street


Other Tulsa Area Locations

Frisco Warren


Mount Vernon


Magnolia


98th Street


Owasso

Frisco-West


Palestine


Magnolia Parkway


Avenue Q












 - - -

Prosperity Bancshares, Inc. ®

Financial Highlights (Unaudited)

(In thousands)

 




Mar 31, 2025



Dec 31, 2024



Sep 30, 2024



Jun 30, 2024



Mar 31, 2024


Balance Sheet Data (at period end)
















Loans held for sale


$

9,764



$

10,690



$

6,113



$

9,951



$

6,380


Loans held for investment



20,909,913




21,057,616




21,146,033




21,229,461




20,393,943


Loans held for investment - Warehouse Purchase Program



1,057,893




1,080,903




1,228,706




1,081,403




864,924


Total loans



21,977,570




22,149,209




22,380,852




22,320,815




21,265,247


















Investment securities(A)



10,792,731




11,094,424




11,300,756




11,702,139




12,301,138


Federal funds sold



221




292




208




234




250


Allowance for credit losses on loans



(349,101)




(351,805)




(354,397)




(359,852)




(330,219)


Cash and due from banks



1,694,637




1,972,175




2,209,863




1,507,604




1,086,444


Goodwill



3,503,127




3,503,129




3,504,388




3,504,107




3,396,402


Core deposit intangibles, net



62,406




66,047




70,178




74,324




60,757


Other real estate owned



8,012




5,701




5,757




4,960




2,204


Fixed assets, net



373,273




371,238




373,812




377,394




372,333


Other assets



701,799




756,328




623,903




630,569




601,964


Total assets


$

38,764,675



$

39,566,738



$

40,115,320



$

39,762,294



$

38,756,520


















Noninterest-bearing deposits


$

9,675,915



$

9,798,438



$

9,811,361



$

9,706,505



$

9,526,535


Interest-bearing deposits



18,350,884




18,582,900




18,276,250




18,226,581




17,648,983


Total deposits



28,026,799




28,381,338




28,087,611




27,933,086




27,175,518


Other borrowings



2,700,000




3,200,000




3,900,000




3,900,000




3,900,000


Securities sold under repurchase agreements



216,086




221,913




228,896




233,689




261,671


Allowance for credit losses on off-balance sheet credit exposures



37,646




37,646




37,646




37,646




36,503


Other liabilities



267,083




287,346




499,918




374,429




278,284


Total liabilities



31,247,614




32,128,243




32,754,071




32,478,850




31,651,976


Shareholders' equity(B)



7,517,061




7,438,495




7,361,249




7,283,444




7,104,544


Total liabilities and equity


$

38,764,675



$

39,566,738



$

40,115,320



$

39,762,294



$

38,756,520




(A)

Includes $(1,374), $(2,056), $(1,070), $(2,007) and $(2,954) in unrealized losses on available for sale securities for the quarterly periods ended March 31, 2025, December 31, 2024, September 30, 2024, June 30, 2024 and March 31, 2024, respectively.

(B)

Includes $(1,085), $(1,624), $(845), $(1,586) and $(2,333) in after-tax unrealized losses on available for sale securities for the quarterly periods ended March 31, 2025, December 31, 2024, September 30, 2024, June 30, 2024 and March 31, 2024, respectively.

 

Prosperity Bancshares, Inc. ®

Financial Highlights (Unaudited)

(In thousands)

 




Three Months Ended




Mar 31, 2025



Dec 31, 2024



Sep 30, 2024



Jun 30, 2024



Mar 31, 2024


Income Statement Data
















Interest income:
















Loans


$

319,023



$

333,055



$

337,451



$

336,428



$

306,228


Securities(C)



57,886




58,260




59,617




62,428




66,421


Federal funds sold and other earning assets



15,896




19,630




20,835




14,095




9,265


Total interest income



392,805




410,945




417,903




412,951




381,914


















Interest expense:
















Deposits



95,597




102,050




107,758




106,124




92,692


Other borrowings



30,492




39,620




46,792




46,282




48,946


Securities sold under repurchase agreements



1,334




1,501




1,662




1,759




2,032


Total interest expense



127,423




143,171




156,212




154,165




143,670


Net interest income



265,382




267,774




261,691




258,786




238,244


Provision for credit losses



—




—




—




9,066




—


Net interest income after provision for credit losses



265,382




267,774




261,691




249,720




238,244


















Noninterest income:
















Nonsufficient funds (NSF) fees



9,147




9,960




9,016




8,153




8,288


Credit card, debit card and ATM card income



8,739




9,443




9,620




9,384




8,861


Service charges on deposit accounts



7,408




6,992




6,664




6,436




6,406


Trust income



3,601




3,514




3,479




3,601




4,156


Mortgage income



1,009




779




962




745




610


Brokerage income



1,262




1,063




1,258




1,186




1,235


Bank owned life insurance income



2,115




2,020




2,028




1,885




2,047


Net (loss) gain on sale or write-down of assets



(235)




584




3,178




(903)




(35)


Net gain on sale or write-up of securities



—




—




224




10,723




298


Other noninterest income



8,255




5,482




4,670




4,793




7,004


Total noninterest income



41,301




39,837




41,099




46,003




38,870


















Noninterest expense:
















Salaries and benefits



89,476




88,631




88,367




89,584




85,771


Net occupancy and equipment



9,146




8,957




9,291




8,915




8,623


Credit and debit card, data processing and software amortization



11,422




12,342




11,985




11,998




10,975


Regulatory assessments and FDIC insurance



5,789




5,789




5,726




10,317




5,538


Core deposit intangibles amortization



3,641




4,131




4,146




4,156




3,237


Depreciation



4,774




4,791




4,741




4,836




4,686


Communications



3,473




3,450




3,360




3,485




3,402


Other real estate expense



140




255




12




69




187


Net (gain) loss on sale or write-down of other real estate



(30)




(610)




(97)




31




(138)


Merger related expenses



—




—




63




4,381




—


Other noninterest expense



12,470




13,809




12,744




15,070




13,567


Total noninterest expense



140,301




141,545




140,338




152,842




135,848


Income before income taxes



166,382




166,066




162,452




142,881




141,266


Provision for income taxes



36,157




35,990




35,170




31,279




30,840


Net income available to common shareholders


$

130,225



$

130,076



$

127,282



$

111,602



$

110,426




(C)

Interest income on securities was reduced by net premium amortization of $5,027, $5,609, $5,574, $5,831 and $5,822 for the three months ended March 31, 2025, December 31, 2024, September 30, 2024, June 30, 2024 and March 31, 2024, respectively.

 

Prosperity Bancshares, Inc. ®

Financial Highlights (Unaudited)

(Dollars and share amounts in thousands, except per share data and market prices)

 




Three Months Ended




Mar 31, 2025



Dec 31, 2024



Sep 30, 2024



Jun 30, 2024



Mar 31, 2024


















Profitability
















Net income (D) (E)


$

130,225



$

130,076



$

127,282



$

111,602



$

110,426


















Basic earnings per share


$

1.37



$

1.37



$

1.34



$

1.17



$

1.18


Diluted earnings per share


$

1.37



$

1.37



$

1.34



$

1.17



$

1.18


















Return on average assets (F)(J)



1.34

%



1.31

%



1.28

%



1.12

%



1.13

%

Return on average common equity (F)(J)



6.94

%



7.00

%



6.93

%



6.10

%



6.20

%

Return on average tangible common equity (F) (G)(J)



13.23

%



13.50

%



13.50

%



11.81

%



12.06

%

Tax equivalent net interest margin (D) (E) (H)



3.14

%



3.05

%



2.95

%



2.94

%



2.79

%

Efficiency ratio (G) (I)(K)



45.71

%



46.10

%



46.87

%



51.82

%



49.07

%

















Liquidity and Capital Ratios
















Equity to assets



19.39

%



18.80

%



18.35

%



18.32

%



18.33

%

Common equity tier 1 capital



16.97

%



16.42

%



15.84

%



15.42

%



15.75

%

Tier 1 risk-based capital



16.97

%



16.42

%



15.84

%



15.42

%



15.75

%

Total risk-based capital



18.22

%



17.67

%



17.09

%



16.67

%



17.00

%

Tier 1 leverage capital



11.20

%



10.82

%



10.52

%



10.29

%



10.37

%

Period end tangible equity to period end tangible assets (G)



11.23

%



10.75

%



10.36

%



10.24

%



10.33

%

















Other Data
















Weighted-average shares used in computing earnings per common share
















Basic



95,266




95,264




95,261




95,765




93,706


Diluted



95,266




95,264




95,261




95,765




93,706


Period end shares outstanding



95,258




95,275




95,261




95,262




93,525


Cash dividends paid per common share


$

0.58



$

0.58



$

0.56



$

0.56



$

0.56


Book value per common share


$

78.91



$

78.07



$

77.27



$

76.46



$

75.96


Tangible book value per common share (G)


$

41.48



$

40.61



$

39.75



$

38.89



$

39.00


















Common Stock Market Price
















High


$

82.75



$

86.76



$

74.87



$

66.18



$

68.88


Low


$

68.96



$

68.94



$

58.66



$

57.16



$

60.08


Period end closing price


$

71.37



$

75.35



$

72.07



$

61.14



$

65.78


Employees – FTE (excluding overtime)



3,898




3,916




3,896




3,902




3,901


Number of banking centers



284




283




287




288




283


 

(D) |Includes purchase accounting adjustments for the periods presented as follows:

 


Three Months Ended


Mar 31, 2025


Dec 31, 2024


Sep 30, 2024


Jun 30, 2024


Mar 31, 2024

Loan discount accretion










Non-PCD

$2,615


$2,761


$3,616


$4,797


$1,312

PCD

$677


$850


$1,212


$2,394


$548

Securities net accretion

$705


$528


$555


$564


$561

Time deposits amortization

$(9)


$(21)


$(40)


$4


$(97)



(E) 

Using effective tax rate of 21.7%, 21.7%, 21.6%, 21.9% and 21.8% for the three months ended March 31, 2025, December 31, 2024, September 30, 2024, June 30, 2024 and March 31, 2024, respectively.

(F)

Interim periods annualized.

(G)

Refer to the "Notes to Selected Financial Data" at the end of this Earnings Release for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure.

(H)

Net interest margin for all periods presented is based on average balances on an actual 365-day or 366-day basis.

(I)

Calculated by dividing total noninterest expense, excluding credit loss provisions, by net interest income plus noninterest income, excluding net gains and losses on the sale, write-down or write-up of assets and securities. Additionally, taxes are not part of this calculation.

(J)

For calculations of the annualized returns on average assets, average common equity and average tangible common equity excluding merger related provision for credit losses, net of tax, merger related expenses, net of tax, FDIC special assessment, net of tax, and net gain on sale or write-up of securities, net of tax refer to the "Notes to Selected Financial Data" at the end of this Earnings Release for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure.

(K)

For calculations of the efficiency ratio excluding merger related expenses and FDIC special assessment refer to the "Notes to Selected Financial Data" at the end of this Earnings Release for a reconciliation of these non-GAAP financial measures to the nearest respective GAAP financial measures.

 

Prosperity Bancshares, Inc. ®

Financial Highlights (Unaudited)

(Dollars in thousands)

 

YIELD ANALYSIS


Three Months Ended




Mar 31, 2025


Dec 31, 2024


Mar 31, 2024




Average
Balance



Interest
Earned/
Interest
Paid



Average
Yield/
Rate

(L)

Average
Balance



Interest
Earned/
Interest
Paid



Average
Yield/
Rate

(L)

Average
Balance



Interest
Earned/
Interest
Paid



Average
Yield/
Rate

(L)

Interest-earning assets:


























Loans held for sale


$

7,570



$

127



6.80 %


$

8,571



$

144



6.68 %


$

5,467



$

92



6.77 %


Loans held for investment



20,959,226




305,068



5.90 %



21,038,694




313,863



5.93 %



20,415,316




292,673



5.77 %


Loans held for investment - Warehouse
Purchase Program



876,086




13,828



6.40 %



1,137,113




19,048



6.66 %



720,650




13,463



7.51 %


Total loans



21,842,882




319,023



5.92 %



22,184,378




333,055



5.97 %



21,141,433




306,228



5.83 %


Investment securities



11,017,400




57,886



2.13 %

(M)


11,265,535




58,260



2.06 %

(M)


12,693,268




66,421



2.10 %

(M)

Federal funds sold and other earning assets



1,443,220




15,896



4.47 %



1,628,050




19,630



4.80 %



672,840




9,265



5.54 %


Total interest-earning assets



34,303,502




392,805



4.64 %



35,077,963




410,945



4.66 %



34,507,541




381,914



4.45 %


Allowance for credit losses on loans



(350,715)









(353,560)









(331,708)








Noninterest-earning assets



5,004,291









4,902,996









4,759,697








Total assets


$

38,957,078








$

39,627,399








$

38,935,530


































Interest-bearing liabilities:


























Interest-bearing demand deposits


$

5,224,796



$

9,019



0.70 %


$

4,845,174



$

8,535



0.70 %


$

5,143,585



$

8,423



0.66 %


Savings and money market deposits



9,007,286




45,645



2.06 %



8,915,410




47,089



2.10 %



8,889,077




47,152



2.13 %


Certificates and other time deposits



4,426,521




40,933



3.75 %



4,552,445




46,426



4.06 %



3,683,815




37,117



4.05 %


Other borrowings



2,776,667




30,492



4.45 %



3,332,609




39,620



4.73 %



4,083,132




48,946



4.82 %


Securities sold under repurchase agreements



217,945




1,334



2.48 %



231,240




1,501



2.58 %



296,437




2,032



2.76 %


Total interest-bearing liabilities



21,653,215




127,423



2.39 %

(N)


21,876,878




143,171



2.60 %

(N)


22,096,046




143,670



2.62 %

(N)



























Noninterest-bearing liabilities:


























Noninterest-bearing demand deposits



9,504,540









9,829,912









9,443,249








Allowance for credit losses on off-balance sheet
credit exposures



37,646









37,646









36,503








Other liabilities



255,876









454,298









238,480








Total liabilities



31,451,277









32,198,734









31,814,278








Shareholders' equity



7,505,801









7,428,665









7,121,252








Total liabilities and shareholders' equity


$

38,957,078








$

39,627,399








$

38,935,530


































Net interest income and margin





$

265,382



3.14 %





$

267,774



3.04 %





$

238,244



2.78 %


Non-GAAP to GAAP reconciliation:


























Tax equivalent adjustment






587









767









808





Net interest income and margin
     (tax equivalent basis)





$

265,969



3.14 %





$

268,541



3.05 %





$

239,052



2.79 %




(L)

Annualized and based on an actual 365-day or 366-day basis.

(M)

Yield on securities was impacted by net premium amortization of $5,027, $5,609 and $5,822 for the three months ended March 31, 2025, December 31, 2024 and March 31, 2024, respectively.

(N)

Total cost of funds, including noninterest bearing deposits, was 1.66%, 1.80% and 1.83% for the three months ended March 31, 2025, December 31, 2024 and March 31, 2024, respectively.

 

Prosperity Bancshares, Inc. ®

Financial Highlights (Unaudited)

(Dollars in thousands)

 


Three Months Ended



Mar 31, 2025



Dec 31, 2024



Sep 30, 2024



Jun 30, 2024



Mar 31, 2024


YIELD TREND (O)






























Interest-Earning Assets:















Loans held for sale


6.80

%



6.68

%



6.89

%



7.10

%



6.77

%

Loans held for investment


5.90

%



5.93

%



5.97

%



6.02

%



5.77

%

Loans held for investment - Warehouse Purchase Program


6.40

%



6.66

%



7.27

%



7.42

%



7.51

%

Total loans


5.92

%



5.97

%



6.04

%



6.08

%



5.83

%

Investment securities (P)


2.13

%



2.06

%



2.04

%



2.06

%



2.10

%

Federal funds sold and other earning assets


4.47

%



4.80

%



5.41

%



5.52

%



5.54

%

Total interest-earning assets


4.64

%



4.66

%



4.70

%



4.68

%



4.45

%
















Interest-Bearing Liabilities:















Interest-bearing demand deposits


0.70

%



0.70

%



0.77

%



0.76

%



0.66

%

Savings and money market deposits


2.06

%



2.10

%



2.23

%



2.22

%



2.13

%

Certificates and other time deposits


3.75

%



4.06

%



4.24

%



4.27

%



4.05

%

Other borrowings


4.45

%



4.73

%



4.77

%



4.77

%



4.82

%

Securities sold under repurchase agreements


2.48

%



2.58

%



2.72

%



2.74

%



2.76

%

Total interest-bearing liabilities


2.39

%



2.60

%



2.78

%



2.76

%



2.62

%
















Net Interest Margin


3.14

%



3.04

%



2.94

%



2.94

%



2.78

%

Net Interest Margin (tax equivalent)


3.14

%



3.05

%



2.95

%



2.94

%



2.79

%



(O)

Annualized and based on average balances on an actual 365-day or 366-day basis.

(P)

Yield on securities was impacted by net premium amortization of $5,027, $5,609, $5,574, $5,831 and $5,822 for the three months ended March 31, 2025, December 31, 2024, September 30, 2024, June 30, 2024 and March 31, 2024, respectively.

 

Prosperity Bancshares, Inc. ®

Financial Highlights (Unaudited)

(Dollars in thousands)

 



Three Months Ended




Mar 31, 2025



Dec 31, 2024



Sep 30, 2024



Jun 30, 2024



Mar 31, 2024


Balance Sheet Averages
















Loans held for sale


$

7,570



$

8,571



$

7,913



$

8,446



$

5,467


Loans held for investment



20,959,226




21,038,694




21,107,139




21,328,824




20,415,316


Loans held for investment - Warehouse Purchase Program



876,086




1,137,113




1,114,681




917,026




720,650


Total loans



21,842,882




22,184,378




22,229,733




22,254,296




21,141,433


















Investment securities



11,017,400




11,265,535




11,612,193




12,179,074




12,693,268


Federal funds sold and other earning assets



1,443,220




1,628,050




1,531,788




1,026,251




672,840


Total interest-earning assets



34,303,502




35,077,963




35,373,714




35,459,621




34,507,541


Allowance for credit losses on loans



(350,715)




(353,560)




(358,237)




(332,904)




(331,708)


Cash and due from banks



326,066




317,420




304,911




295,077




315,612


Goodwill



3,503,128




3,505,030




3,504,300




3,482,448




3,396,177


Core deposit intangibles, net



64,293




68,167




72,330




59,979




62,482


Other real estate



7,105




6,778




5,339




3,071




2,319


Fixed assets, net



374,448




373,561




375,626




377,369




372,458


Other assets



729,251




632,040




611,219




604,187




610,649


Total assets


$

38,957,078



$

39,627,399



$

39,889,202



$

39,948,848



$

38,935,530


















Noninterest-bearing deposits


$

9,504,540



$

9,829,912



$

9,680,785



$

9,780,211



$

9,443,249


Interest-bearing demand deposits



5,224,796




4,845,174




4,774,975




4,839,194




5,143,585


Savings and money market deposits



9,007,286




8,915,410




8,908,315




9,084,051




8,889,077


Certificates and other time deposits



4,426,521




4,552,445




4,564,232




4,400,922




3,683,815


Total deposits



28,163,143




28,142,941




27,928,307




28,104,378




27,159,726


Other borrowings



2,776,667




3,332,609




3,900,000




3,900,000




4,083,132


Securities sold under repurchase agreements



217,945




231,240




242,813




258,637




296,437


Allowance for credit losses on off-balance sheet credit exposures



37,646




37,646




37,646




36,729




36,503


Other liabilities



255,876




454,298




433,171




327,847




238,480


Shareholders' equity



7,505,801




7,428,665




7,347,265




7,321,257




7,121,252


Total liabilities and equity


$

38,957,078



$

39,627,399



$

39,889,202



$

39,948,848



$

38,935,530


 

Prosperity Bancshares, Inc. ®

Financial Highlights (Unaudited)

(Dollars in thousands)

 



Mar 31, 2025


Dec 31, 2024


Sep 30, 2024


Jun 30, 2024


Mar 31, 2024

Period End Balances
































Loan Portfolio
















Commercial and industrial


$1,915,124

8.7 %


$1,962,111

8.8 %


$1,970,844

8.8 %


$2,023,531

9.1 %


$1,932,534

9.1 %

Warehouse purchase program


1,057,893

4.8 %


1,080,903

4.9 %


1,228,706

5.5 %


1,081,403

4.8 %


864,924

4.1 %

Construction, land development and other land loans


2,845,082

13.0 %


2,859,281

12.9 %


2,814,521

12.6 %


2,828,372

12.7 %


2,876,588

13.5 %

1-4 family residential


7,576,350

34.5 %


7,581,450

34.2 %


7,557,858

33.8 %


7,496,485

33.6 %


7,331,251

34.5 %

Home equity


896,529

4.1 %


906,139

4.1 %


919,676

4.1 %


930,428

4.2 %


950,169

4.5 %

Commercial real estate (includes multi-family residential)


5,783,410

26.3 %


5,800,985

26.2 %


5,869,687

26.2 %


5,961,884

26.7 %


5,631,460

26.5 %

Agriculture (includes farmland)


1,013,960

4.6 %


1,033,546

4.7 %


1,033,224

4.6 %


1,037,361

4.6 %


813,092

3.8 %

Consumer and other


378,821

1.7 %


378,817

1.7 %


413,548

1.8 %


340,611

1.5 %


326,915

1.5 %

Energy


510,401

2.3 %


545,977

2.5 %


572,788

2.6 %


620,740

2.8 %


538,314

2.5 %

Total loans


$21,977,570



$22,149,209



$22,380,852



$22,320,815



$21,265,247


















Deposit Types
















Noninterest-bearing DDA


$9,675,915

34.5 %


$9,798,438

34.5 %


$9,811,361

34.9 %


$9,706,505

34.7 %


$9,526,535

35.1 %

Interest-bearing DDA


4,931,769

17.6 %


5,182,035

18.3 %


4,800,758

17.1 %


4,762,730

17.1 %


4,867,247

17.9 %

Money market


6,339,509

22.6 %


6,229,022

21.9 %


6,166,792

22.0 %


6,180,769

22.1 %


6,134,221

22.6 %

Savings


2,703,736

9.7 %


2,685,496

9.5 %


2,707,982

9.6 %


2,765,197

9.9 %


2,830,117

10.4 %

Certificates and other time deposits


4,375,870

15.6 %


4,486,347

15.8 %


4,600,718

16.4 %


4,517,885

16.2 %


3,817,398

14.0 %

Total deposits


$28,026,799



$28,381,338



$28,087,611



$27,933,086



$27,175,518


















Loan to Deposit Ratio


78.4 %



78.0 %



79.7 %



79.9 %



78.3 %


 

Prosperity Bancshares, Inc. ®

Financial Highlights (Unaudited)

(Dollars in thousands)

 

Construction Loans

 



Mar 31, 2025



Dec 31, 2024



Sep 30, 2024



Jun 30, 2024



Mar 31, 2024




























Single family residential construction


$

727,417



25.6

%


$

778,067



27.2

%


$

836,571



29.7

%


$

940,381



33.2

%


$

1,031,163



35.8

%

Land development



225,784



7.9

%



260,158



9.1

%



256,571



9.1

%



241,639



8.5

%



290,243



10.1

%

Raw land



261,918



9.2

%



278,892



9.7

%



263,411



9.4

%



291,112



10.3

%



311,265



10.8

%

Residential lots



219,115



7.7

%



209,850



7.3

%



217,920



7.7

%



222,343



7.9

%



224,901



7.8

%

Commercial lots



56,343



2.0

%



59,044



2.1

%



58,472



2.1

%



60,264



2.1

%



59,691



2.1

%

Commercial construction and other



1,355,587



47.6

%



1,274,619



44.6

%



1,183,127



42.0

%



1,074,361



38.0

%



959,687



33.4

%

Net unaccreted discount



(1,082)






(1,349)






(1,551)






(1,728)






(362)




Total construction loans


$

2,845,082





$

2,859,281





$

2,814,521





$

2,828,372





$

2,876,588




 

Non-Owner Occupied Commercial Real Estate Loans by Metropolitan Statistical Area (MSA) as of March 31, 2025

 


Houston



Dallas



Austin



OK City



Tulsa



Other (Q)



Total



Collateral Type






















Shopping center/retail

$

346,908



$

267,598



$

59,782



$

15,378



$

13,316



$

329,976



$

1,032,958



Commercial and industrial buildings


133,345




108,865




22,286




34,480




12,650




280,894




592,520



Office buildings


99,324




218,192




124,542




46,002




4,435




88,523




581,018



Medical buildings


83,321




17,176




1,672




42,396




28,386




77,225




250,176



Apartment buildings


92,435




119,450




64,487




10,802




13,696




209,732




510,602



Hotel


109,443




120,154




30,981




11,408




—




185,995




457,981



Other


174,428




53,390




19,365




7,187




6,861




92,077




353,308



Total

$

1,039,204



$

904,825



$

323,115



$

167,653



$

79,344



$

1,264,422



$

3,778,563


(R)

 

Acquired Loans

 


Non-PCD Loans



PCD Loans



Total Acquired Loans



Balance at
Acquisition
Date



Balance at
Dec 31,
2024



Balance at
Mar 31,
2025



Balance at
Acquisition
Date



Balance at
Dec 31,
2024



Balance at
Mar 31,
2025



Balance at
Acquisition
Date



Balance at
Dec 31,
2024



Balance at
Mar 31,
2025


Loan marks:



























Acquired banks (S)

$

368,247



$

14,201



$

13,536



$

327,842



$

5,931



$

5,620



$

696,089



$

20,132



$

19,156


Lone Star Bank (T)


20,378




13,644




11,714




4,558




1,459




1,093




24,936




15,103




12,807


Total


388,625




27,845




25,250




332,400




7,390




6,713




721,025




35,235




31,963





























Acquired portfolio loan balances:



























Acquired banks (S)


13,307,853




1,353,801




1,281,901




1,317,564




389,794




380,484




14,625,417




1,743,595




1,662,385


Lone Star Bank (T)


1,016,128




735,828




645,440




59,109




50,230




47,559




1,075,237




786,058




692,999


Total


14,323,981




2,089,629




1,927,341




1,376,673




440,024




428,043




15,700,654


 (U)


2,529,653




2,355,384





























Acquired portfolio loan balances less loan marks

$

13,935,356



$

2,061,784



$

1,902,091



$

1,044,273



$

432,634



$

421,330



$

14,979,629



$

2,494,418



$

2,323,421




(Q)

Includes other MSA and non-MSA regions.

(R)

Represents a portion of total commercial real estate loans of $5.783 billion as of March 31, 2025.

(S)

Includes Bank Arlington, American State Bank, Community National Bank, First Federal Bank Texas, Coppermark Bank, First Victoria National Bank, The F&M Bank & Trust Company, Tradition Bank, LegacyTexas Bank and FirstCapital Bank.

(T)

The Merger was completed on April 1, 2024 and resulted in the addition of $1.075 billion in loans with related purchase accounting adjustments of $24.9 million at acquisition date, which were subject to subsequent fair value adjustments.

(U)

Actual principal balances acquired.

 

Prosperity Bancshares, Inc. ®

Financial Highlights (Unaudited)

(Dollars in thousands)

 


Three Months Ended



Mar 31, 2025



Dec 31, 2024



Sep 30, 2024



Jun 30, 2024



Mar 31, 2024


Asset Quality















Nonaccrual loans

$

73,287



$

73,647



$

83,969



$

84,175



$

78,475


Accruing loans 90 or more days past due


91




2,189




20




322




3,035


Total nonperforming loans


73,378




75,836




83,989




84,497




81,510


Repossessed assets


29




4




177




113




97


Other real estate


8,012




5,701




5,757




4,960




2,204


Total nonperforming assets

$

81,419



$

81,541



$

89,923



$

89,570



$

83,811

















Nonperforming assets:















Commercial and industrial (includes energy)

$

8,966



$

10,080



$

13,642



$

16,340



$

10,199


Construction, land development and other land loans


1,952




4,481




4,053




4,895




15,826


1-4 family residential (includes home equity)


42,481




44,824




36,660




33,935




30,206


Commercial real estate (includes multi-family residential)


12,257




18,861




32,803




31,776




23,720


Agriculture (includes farmland)


15,725




3,208




2,686




2,550




3,714


Consumer and other


38




87




79




74




146


Total

$

81,419



$

81,541



$

89,923



$

89,570



$

83,811


Number of loans/properties


363




368




346




349




319


Allowance for credit losses on loans

$

349,101



$

351,805



$

354,397



$

359,852



$

330,219

















Net charge-offs (recoveries):















Commercial and industrial (includes energy)

$

330



$

405



$

3,309



$

2,777



$

283


Construction, land development and other land loans


(156)




294




378




109




(2)


1-4 family residential (includes home equity)


1,051




180




409




425




457


Commercial real estate (includes multi-family residential)


178




362




258




(381)




(17)


Agriculture (includes farmland)


—




5




(116)




214




23


Consumer and other


1,301




1,346




1,217




1,224




1,399


Total

$

2,704



$

2,592



$

5,455



$

4,368



$

2,143

















Asset Quality Ratios















Nonperforming assets to average interest-earning assets


0.24

%



0.23

%



0.25

%



0.25

%



0.24

%

Nonperforming assets to loans and other real estate


0.37

%



0.37

%



0.40

%



0.40

%



0.39

%

Net charge-offs to average loans (annualized)


0.05

%



0.05

%



0.10

%



0.08

%



0.04

%

Allowance for credit losses on loans to total loans


1.59

%



1.59

%



1.58

%



1.61

%



1.55

%

Allowance for credit losses on loans to total loans, excluding Warehouse Purchase Program loans (G)


1.67

%



1.67

%



1.68

%



1.69

%



1.62

%

 

Prosperity Bancshares, Inc. ®
 Notes to Selected Financial Data (Unaudited)
(Dollars and share amounts in thousands, except per share data)

NOTES TO SELECTED FINANCIAL DATA

Prosperity's management uses certain non-GAAP (generally accepted accounting principles) financial measures to evaluate its performance. Specifically, for internal planning and forecasting purposes, Prosperity reviews each of diluted earnings per share, return on average assets, return on average common equity, and return on average tangible common equity, in each case excluding merger related provision for credit losses, net of tax, merger related expenses, net of tax, FDIC special assessment, net of tax, and net gain on sale or write-up of securities, net of tax; return on average tangible common equity; tangible book value per share; the tangible equity to tangible assets ratio; allowance for credit losses to total loans excluding Warehouse Purchase Program loans; the efficiency ratio, excluding net gains and losses on the sale, write-down or write-up of assets and securities; and the efficiency ratio, excluding net gains and losses on the sale, write-down or write-up of assets and securities, merger related expenses and FDIC special assessment. In addition, due to the application of purchase accounting, Prosperity uses certain non-GAAP financial measures and ratios that exclude the impact of these items to evaluate its allowance for credit losses to total loans (excluding Warehouse Purchase Program loans). Prosperity has included information below relating to these non-GAAP financial measures for the applicable periods presented.

Three Months Ended



Mar 31, 2025


Dec 31, 2024


Sep 30, 2024


Jun 30, 2024


Mar 31, 2024

Reconciliation of diluted earnings per share to diluted earnings per
share excluding merger related provision for credit losses, net of tax,
merger related expenses, net of tax, FDIC special assessment, net of tax,
and net gain on sale or write-up of securities, net of tax:











Diluted earnings per share (unadjusted)


$                     1.37


$                     1.37


$                     1.34


$                     1.17


$                     1.18












Net income


$                130,225


$                130,076


$                127,282


$                111,602


$                110,426

Merger related provision for credit losses, net of tax(V)


—


—


—


7,162


—

Merger related expenses, net of tax(V)


—


—


50


3,461


—

FDIC special assessment, net of tax(V)


—


—


—


2,807


—

Net gain on sale or write-up of securities, net of tax(V)


—


—


(177)


(8,472)


(235)

Net income excluding merger related provision for credit losses, net of tax,
merger related expenses, net of tax, FDIC special assessment, net of tax, and
net gain on sale or write-up of securities, net of tax(V):


$                130,225


$                130,076


$                127,155


$                116,560


$                110,191












Weighted average diluted shares outstanding


95,266


95,264


95,261


95,765


93,706

Merger related provision for credit losses, net of tax, per diluted common share(V)


$                       —


$                       —


$                       —


$                     0.07


$                       —

Merger related expenses, net of tax, per diluted common share(V)


$                       —


$                       —


$                       —


$                     0.04


$                       —

FDIC special assessment, net of tax, per diluted common share(V)


$                       —


$                       —


$                       —


$                     0.03


$                       —

Net gain on sale or write-up of securities, net of tax, per diluted common share(V)


$                       —


$                       —


$                       —


$                   (0.09)


$                       —

Diluted earnings per share excluding merger related provision for credit
losses, net of tax, merger related expenses, net of tax, FDIC special
assessment, net of tax, and net gain on sale or write-up of securities, net of tax:(V)


$                     1.37


$                     1.37


$                     1.34


$                     1.22


$                     1.18












Reconciliation of return on average assets to return on average assets
excluding merger related provision for credit losses, net of tax, merger
related expenses, net of tax, FDIC special assessment, net of tax, and net
gain on sale or write-up of securities, net of tax:











Return on average assets (unadjusted)


1.34 %


1.31 %


1.28 %


1.12 %


1.13 %












Net income excluding merger related provision for credit losses, net of tax,
merger related expenses, net of tax, FDIC special assessment, net of tax, and
net gain on sale or write-up of securities, net of tax(V):


$                130,225


$                130,076


$                127,155


$                116,560


$                110,191

Average total assets


$           38,957,078


$           39,627,399


$           39,889,202


$           39,948,848


$           38,935,530

Return on average assets excluding merger related provision for credit losses,
net of tax, merger related expenses, net of tax, FDIC special assessment, net
of tax, and net gain on sale or write-up of securities, net of tax (F) (V)


1.34 %


1.31 %


1.28 %


1.17 %


1.13 %












(V) Calculated assuming a federal tax rate of 21.0%.
























Three Months Ended



Mar 31, 2025


Dec 31, 2024


Sep 30, 2024


Jun 30, 2024


Mar 31, 2024

Reconciliation of return on average common equity to return on average
common equity excluding merger related provision for credit losses, net
of tax, merger related expenses, net of tax, FDIC special assessment, net
of tax, and net gain on sale or write-up of securities, net of tax:











Return on average common equity (unadjusted)


6.94 %


7.00 %


6.93 %


6.10 %


6.20 %












Net income excluding merger related provision for credit losses, net of tax,
merger related expenses, net of tax, FDIC special assessment, net of tax, and
net gain on sale or write-up of securities, net of tax(V):


$                130,225


$                130,076


$                127,155


$                116,560


$                110,191

Average shareholders' equity


$             7,505,801


$             7,428,665


$             7,347,265


$             7,321,257


$             7,121,252

Return on average common equity excluding merger related provision for
credit losses, net of tax, merger related expenses, net of tax, FDIC special
assessment, net of tax, and net gain on sale or write-up of securities, net of tax (F) (V)


6.94 %


7.00 %


6.92 %


6.37 %


6.19 %












Reconciliation of return on average common equity to return on average
tangible common equity:











Net income


$                130,225


$                130,076


$                127,282


$                111,602


$                110,426

Average shareholders' equity


$             7,505,801


$             7,428,665


$             7,347,265


$             7,321,257


$             7,121,252

Less: Average goodwill and other intangible assets


(3,567,421)


(3,573,197)


(3,576,630)


(3,542,427)


(3,458,659)

Average tangible shareholders' equity


$             3,938,380


$             3,855,468


$             3,770,635


$             3,778,830


$             3,662,593

Return on average tangible common equity (F)


13.23 %


13.50 %


13.50 %


11.81 %


12.06 %












Reconciliation of return on average common equity to return on average
tangible common equity excluding merger related provision for credit
losses, net of tax, merger related expenses, net of tax, and FDIC special
assessment, net of tax:











Net income excluding merger related provision for credit losses, net of tax,
merger related expenses, net of tax, FDIC special assessment, net of tax, and
net gain on sale or write-up of securities, net of tax(V):


$                130,225


$                130,076


$                127,155


$                116,560


$                110,191

Average shareholders' equity


$             7,505,801


$             7,428,665


$             7,347,265


$             7,321,257


$             7,121,252

Less: Average goodwill and other intangible assets


(3,567,421)


(3,573,197)


(3,576,630)


(3,542,427)


(3,458,659)

Average tangible shareholders' equity


$             3,938,380


$             3,855,468


$             3,770,635


$             3,778,830


$             3,662,593

Return on average tangible common equity excluding merger related
provision for credit losses, net of tax, merger related expenses, net of tax,
FDIC special assessment, net of tax, and net gain on sale or write-up of
securities, net of tax (F) (V)


13.23 %


13.50 %


13.49 %


12.34 %


12.03 %












Reconciliation of book value per share to tangible book value per share:











Shareholders' equity


$             7,517,061


$             7,438,495


$             7,361,249


$             7,283,444


$             7,104,544

Less: Goodwill and other intangible assets


(3,565,533)


(3,569,176)


(3,574,566)


(3,578,431)


(3,457,159)

Tangible shareholders' equity


$             3,951,528


$             3,869,319


$             3,786,683


$             3,705,013


$             3,647,385












Period end shares outstanding


95,258


95,275


95,261


95,262


93,525

Tangible book value per share


$                   41.48


$                   40.61


$                   39.75


$                   38.89


$                   39.00












Reconciliation of equity to assets ratio to period end tangible equity to
period end tangible assets ratio:











Tangible shareholders' equity


$             3,951,528


$             3,869,319


$             3,786,683


$             3,705,013


$             3,647,385

Total assets


$           38,764,675


$           39,566,738


$           40,115,320


$           39,762,294


$           38,756,520

Less: Goodwill and other intangible assets


(3,565,533)


(3,569,176)


(3,574,566)


(3,578,431)


(3,457,159)

Tangible assets


$           35,199,142


$           35,997,562


$           36,540,754


$           36,183,863


$           35,299,361

Period end tangible equity to period end tangible assets ratio


11.23 %


10.75 %


10.36 %


10.24 %


10.33 %




































Three Months Ended



Mar 31, 2025


Dec 31, 2024


Sep 30, 2024


Jun 30, 2024


Mar 31, 2024

Reconciliation of allowance for credit losses to total loans to allowance
for credit losses on loans to total loans excluding Warehouse Purchase Program:











Allowance for credit losses on loans


$                349,101


$                351,805


$                354,397


$                359,852


$                330,219

Total loans


$           21,977,570


$           22,149,209


$           22,380,852


$           22,320,815


$           21,265,247

Less: Warehouse Purchase Program loans


(1,057,893)


(1,080,903)


(1,228,706)


(1,081,403)


(864,924)

Total loans less Warehouse Purchase Program


$           20,919,677


$           21,068,306


$           21,152,146


$           21,239,412


$           20,400,323

Allowance for credit losses on loans to total loans excluding Warehouse
Purchase Program


1.67 %


1.67 %


1.68 %


1.69 %


1.62 %












Reconciliation of efficiency ratio to efficiency ratio excluding net gains
and losses on the sale, write-down  or write-up of assets and securities:











Noninterest expense


$                140,301


$                141,545


$                140,338


$                152,842


$                135,848












Net interest income


$                265,382


$                267,774


$                261,691


$                258,786


$                238,244

Noninterest income


41,301


39,837


41,099


46,003


38,870

Less: net (loss) gain on sale or write-down of assets


(235)


584


3,178


(903)


(35)

Less: net gain on sale or write-up of securities


—


—


224


10,723


298

Noninterest income excluding net gains and losses on the sale, write-down or
write-up of assets and securities


41,536


39,253


37,697


36,183


38,607

Total income excluding net gains and losses on the sale, write-down or
write-up of assets and securities


$                306,918


$                307,027


$                299,388


$                294,969


$                276,851

Efficiency ratio, excluding net gains and losses on the sale, write-down or
write-up of assets and securities


45.71 %


46.10 %


46.87 %


51.82 %


49.07 %












Reconciliation of efficiency ratio to efficiency ratio, excluding net gains
and losses on the sale, write-down or write-up of assets and securities,
merger related expenses and FDIC special assessment:











Noninterest expense


$                140,301


$                141,545


$                140,338


$                152,842


$                135,848

Less: merger related expenses


—


—


63


4,381


—

Less: FDIC special assessment


—


—


—


3,554


—

Noninterest expense excluding merger related expenses and FDIC special assessment


$                140,301


$                141,545


$                140,275


$                144,907


$                135,848












Net interest income


$                265,382


$                267,774


$                261,691


$                258,786


$                238,244

Noninterest income


41,301


39,837


41,099


46,003


38,870

Less: net (loss) gain on sale or write down of assets


(235)


584


3,178


(903)


(35)

Less: net gain on sale or write-up of securities


—


—


224


10,723


298

Noninterest income excluding net gains and losses on the sale, write-down or
write-up of assets and securities


41,536


39,253


37,697


36,183


38,607

Total income excluding net gains and losses on the sale, write-down or
write-up of assets and securities


$                306,918


$                307,027


$                299,388


$                294,969


$                276,851

Efficiency ratio, excluding net gains and losses on the sale, write-down or
write-up of assets and securities, merger related expenses and FDIC special assessment


45.71 %


46.10 %


46.85 %


49.13 %


49.07 %

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/prosperity-bancshares-inc--reports-first-quarter-2025-earnings-302435233.html

SOURCE Prosperity Bancshares, Inc.