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Prosperity Bancshares Inc

PROSPERITY BANCSHARES, INC.® REPORTS SECOND QUARTER 2025 EARNINGS

  • Second quarter earnings per share (diluted) of $1.42, an increase of 21.4% compared to second quarter 2024
  • Second quarter net income increased 21.1% to $135.2 million compared to second quarter 2024
  • Second quarter net interest margin increased 24 basis points to 3.18% compared to second quarter 2024
  • Loans increased $219.8 million during second quarter 2025
  • Noninterest-bearing deposits of $9.4 billion, representing 34.3% of total deposits
  • Allowance for credit losses on loans and on off-balance sheet credit exposure of $383.7 million and allowance for credit losses on loans to total loans, excluding Warehouse Purchase Program, of 1.66%(1)
  • Nonperforming assets remain low at 0.33% of second quarter average interest-earning assets
  • Return (annualized) on second quarter average assets of 1.41% and average tangible common equity of 13.44%(1)
  • Announced the signing of a definitive merger agreement with American Bank Holding Corporation headquartered in Corpus Christi, Texas

HOUSTON , July 23, 2025 /PRNewswire/ -- Prosperity Bancshares, Inc.® (NYSE: PB) ("Prosperity Bancshares"), the parent company of Prosperity Bank® (collectively, "Prosperity"), reported net income of $135.2 million for the quarter ended June 30, 2025 compared with $111.6 million for the same period in 2024. Net income per diluted common share was $1.42 for the quarter ended June 30, 2025 compared with $1.17 for the same period in 2024. The annualized return on second quarter average assets was 1.41%. Additionally, loans increased $219.8 million during the second quarter of 2025. Nonperforming assets remain low at 0.33% of second quarter average interest-earning assets.

"I am excited to share that our bank continues to grow, with double digit increases in net income and earnings per share compared with the second quarter of 2024. Our net interest margin also improved to 3.28%, a 24 basis point increase compared with the second quarter of 2024 as our interest-bearing assets continue to reprice. Loans grew $219.8 million during the second quarter of 2025, and we continue to see cautious enthusiasm from our customers. As mentioned in my previous comments, these are the results we expected, and these tailwinds should continue to be positive over the next 12 and 24 months," said David Zalman, Prosperity's Senior Chairman and Chief Executive Officer.

"I am proud to announce that we entered into a definitive agreement with American Bank Holding Company in Corpus Christi to merge. We have followed American Bank closely for more than two decades and have tremendous respect for the bank and for the people that have contributed to its success. Our banks have a complementary footprint, and we are familiar with and remain committed to the communities that American Bank serves, including with both financial products and community support. This combination will strengthen our presence and operations in South Texas and surrounding areas and enhances our presence in Central Texas, including in San Antonio, a highly desirable, high growth area," stated Zalman.

"Texas and Oklahoma continue to shine as more people and companies move to the states because of the business-friendly political structure and no state income tax. Texas was recently rated as the second-best state for business in 2025 by CNBC," continued Zalman.

"Thank you to our customers, shareholders and associates that make all of this possible," concluded Zalman.

Results of Operations for the Three Months Ended June 30, 2025

Net income was $135.2 million(2) for the three months ended June 30, 2025 compared with $111.6 million(3) for the same period in 2024, an increase of $23.6 million or 21.1%. Net income per diluted common share was $1.42 for the three months ended June 30, 2025 compared with $1.17 for the same period in 2024, an increase of 21.4%. The changes were primarily due to an increase in net interest income, a decrease in merger related provision and expenses and lower regulatory assessments and FDIC insurance, partially offset by a decrease in net gain on sale or write-up of securities. On a linked quarter basis, net income was $135.2 million(2) for the three months ended June 30, 2025 compared with $130.2 million(4) for the three months ended March 31, 2025, an increase of $4.9 million or 3.8%. Net income per diluted common share was $1.42 for the three months ended June 30, 2025 compared with $1.37 for the three months ended March 31, 2025. The change was primarily due to an increase in net interest income and a decrease in salaries and benefits. Annualized returns on average assets, average common equity and average tangible common equity for the three months ended June 30, 2025 were 1.41%, 7.13% and 13.44%(1), respectively. Prosperity's efficiency ratio (excluding net gains and losses on the sale, write-down or write-up of assets and securities) was 44.80%(1) for the three months ended June 30, 2025.

Net interest income before provision for credit losses was $267.7 million for the three months ended June 30, 2025 compared with $258.8 million for the same period in 2024, an increase of $8.9 million or 3.5%. 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 rates on loans, a decrease in the average balances on investment securities and a decrease in the average balances and average rates on federal funds sold and other earning assets. Net interest income before provision for credit losses increased $2.3 million to $267.7 million for the three months ended June 30, 2025 compared with $265.4 million for the three months ended March 31, 2025.

The net interest margin on a tax equivalent basis was 3.18% for the three months ended June 30, 2025 compared with 2.94% for the same period in 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 rates on loans and a decrease in the average balances on investment securities. The net interest margin on a tax equivalent basis was 3.18% for the three months ended June 30, 2025 compared with 3.14% for the three months ended March 31, 2025.

Noninterest income was $43.0 million for the three months ended June 30, 2025 compared with $46.0 million for the same period in 2024, a decrease of $3.0 million or 6.6%. The change was primarily due to a decrease in net gain on sale or write-down of securities, partially offset by an increase in other noninterest income, increase in service charges on deposit accounts and a higher net gain on sale or write-down of assets. Noninterest income was $43.0 million for the three months ended June 30, 2025 compared with $41.3 million for the three months ended March 31, 2025, an increase of $1.7 million or 4.1%.

Noninterest expense was $138.6 million for the three months ended June 30, 2025 compared with $152.8 million for the same period in 2024, a decrease of $14.3 million or 9.3%. The change was primarily due to decreases in regulatory assessment and FDIC insurance, merger related expenses, salaries and benefits and other noninterest expense, which were higher in the second quarter of 2024 due to the merger of Lone Star State Bancshares, Inc. with Prosperity Bancshares and the merger of Lone Star State Bank of West Texas with Prosperity Bank, both effective on April 1, 2024 (collectively, the "Lone Star Merger"). Noninterest expense was $138.6 million for the three months ended June 30, 2025 compared with $140.3 million for the three months ended March 31, 2025, a decrease of $1.7 million or 1.2%.

Results of Operations for the Six Months Ended June 30, 2025

For the six months ended June 30, 2025, net income was $265.4 million(5) compared with $222.0 million(6) for the same period in 2024, an increase of $43.4 million or 19.5%. Net income per diluted common share was $2.79 for the six months ended June 30, 2025 compared with $2.34 for the same period in 2024, an increase of 19.2%. The changes were primarily due to an increase in net interest income, lower merger related provision and expenses, and lower regulatory assessments and FDIC insurance, partially offset by a decrease on net gain on sale or write-up of securities. Returns on average assets, average common equity and average tangible common equity for the six months ended June 30, 2025 were 1.37%, 7.03% and 13.33%(1), respectively.

Net interest income before provision for credit losses for the six months ended June 30, 2025 was $533.1 million compared with $497.0 million for the same period in 2024, an increase of $36.1 million or 7.3%. The change was primarily due to a decrease in the average balances and average rates on other borrowings, a decrease in the average rates on interest-bearing deposits and an increase in the average balances on loans, partially offset by a decrease in the average balances on investment securities.

The net interest margin on a tax equivalent basis for the six months ended June 30, 2025 was 3.16% compared with 2.87% for the same period in 2024. The change was primarily due to a decrease in the average balances and average rates on other borrowings, a decrease in the average rates on interest-bearing deposits, partially offset by a decrease in the average balances on investment securities.

Noninterest income was $84.3 million for the six months ended June 30, 2025 compared with $84.9 million for the same period in 2024, a decrease of $590 thousand or 0.7%.

Noninterest expense was $278.9 million for the six months ended June 30, 2025 compared with $288.7 million for the same period in 2024, a decrease of $9.8 million or 3.4%, primarily due to decreases in regulatory assessment and FDIC insurance, merger related expenses and other noninterest expense.

Balance Sheet Information

Prosperity had $38.417 billion in total assets at June 30, 2025 compared with $39.762 billion at June 30, 2024 and $38.765 billion at March 31, 2025.

Loans were $22.197 billion at June 30, 2025, a decrease of $123.4 million, compared with $22.321 billion at June 30, 2024. Linked quarter loans increased $219.8 million or 1.0% (4.0% annualized) from $21.978 billion at March 31, 2025.

Loans, excluding Warehouse Purchase Program loans, were $20.910 billion at June 30, 2025 compared with $21.239 billion at June 30, 2024, a decrease of $329.5 million or 1.6%, and compared with $20.920 billion at March 31, 2025, a decrease of $9.7 million.

Deposits were $27.473 billion at June 30, 2025, a decrease of $459.7 million or 1.6%, compared with $27.933 billion at June 30, 2024. Linked quarter deposits decreased $553.4 million or 2.0% from $28.027 billion at March 31, 2025, primarily due to a decrease in public fund deposits and business deposits. Prosperity generally experiences seasonality with its public fund deposits, as public fund customers use the tax dollars they receive in December and January throughout the year, resulting in lower deposit balances in the second and third quarters of the year.

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

Balance Sheet Data (at period end)
















(In thousands)


















Jun 30, 2025



Mar 31, 2025



Dec 31, 2024



Sep 30, 2024



Jun 30, 2024




(Unaudited)



(Unaudited)



(Unaudited)



(Unaudited)



(Unaudited)


Loans acquired (including new production since acquisition date):
















Lone Star Bank


$

905,610



$

976,624



$

1,057,618



$

1,109,783



$

1,084,559


Prosperity Bank
















Warehouse Purchase Program loans



1,287,440




1,057,893




1,080,903




1,228,706




1,081,403


All other loans



20,004,338




19,943,053




20,010,688




20,042,363




20,154,853


Total loans


$

22,197,388



$

21,977,570



$

22,149,209



$

22,380,852



$

22,320,815


















Deposits assumed (including new deposits since acquisition date):
















Lone Star Bank


$

940,726



$

983,280



$

1,093,536



$

1,136,216



$

1,187,821


All other deposits



26,532,685




27,043,519




27,287,802




26,951,395




26,745,265


Total deposits


$

27,473,411



$

28,026,799



$

28,381,338



$

28,087,611



$

27,933,086


Excluding loans acquired in the Lone Star Merger and new production at the acquired banking centers since April 1, 2024, loans at June 30, 2025 increased $55.5 million compared with June 30, 2024 and increased $290.8 million compared with March 31, 2025.

Excluding deposits assumed in the Lone Star Merger and new deposits generated at the acquired banking centers since April 1, 2024, deposits at June 30, 2025 decreased by $212.6 million compared with June 30, 2024 and decreased by $510.8 million compared with March 31, 2025.

Asset Quality

Nonperforming assets totaled $110.5 million or 0.33% of quarterly average interest-earning assets at June 30, 2025 compared with $89.6 million or 0.25% of quarterly average interest-earning assets at June 30, 2024 and $81.4 million or 0.24% of quarterly average interest-earning assets at March 31, 2025.

The allowance for credit losses on loans and off-balance sheet credit exposures was $383.7 million at June 30, 2025 compared with $397.5 million at June 30, 2024 and $386.7 million at March 31, 2025. There was no provision for credit losses for the three and six months ended June 30, 2025 compared to $9.1 million provision for credit losses for the three and six months ended June 30, 2024.

The allowance for credit losses on loans was $346.1 million or 1.56% of total loans at June 30, 2025 compared with $359.9 million or 1.61% of total loans at June 30, 2024 and $349.1 million or 1.59% of total loans at March 31, 2025. Excluding Warehouse Purchase Program loans, the allowance for credit losses on loans to total loans was 1.66%(1) at June 30, 2025 compared with 1.69%(1) at June 30, 2024 and 1.67%(1) at March 31, 2025.

Net charge-offs were $3.0 million for the three months ended June 30, 2025 compared with net charge-offs of $4.4 million for the three months ended June 30, 2024 and net charge-offs of $2.7 million for the three months ended March 31, 2025. For the second quarter of 2025, $2.1 million of reserves on resolved purchased credit deteriorated ("PCD") loans without any related charge-offs were released to the general reserve.

Net charge-offs were $5.7 million for the six months ended June 30, 2025 compared with net charge-offs of $6.5 million for the six months ended June 30, 2024. For the six months ended June 30, 2025, $10.4 million of reserves on resolved PCD loans without any related charge-offs were released to the general reserve.

Dividend

Prosperity Bancshares declared a third quarter 2025 cash dividend of $0.58 per share to be paid on October 1, 2025, to all shareholders of record as of September 15, 2025.

Agreement to Acquire American Bank Holding Corporation

On July 18, 2025, Prosperity Bancshares and American Bank Holding Corporation ("American") jointly announced the signing of a definitive merger agreement (the "Merger Agreement") whereby American, a Texas corporation and bank holding company of American Bank, N.A. ("American Bank"), will merge with and into Prosperity Bancshares and American Bank will merge with and into Prosperity Bank. American Bank operates 18 banking offices and 2 loan production offices in South and Central Texas including its main office in Corpus Christi, and banking offices in San Antonio, Austin, Victoria and the greater Corpus Christi area including Port Aransas and Rockport and a loan production office in Houston, Texas. As of March 31, 2025, American, on a consolidated basis, reported total assets of $2.517 billion, total loans of $1.752 billion and total deposits of $2.270 billion.

Under the terms and subject to the conditions of the merger agreement, Prosperity Bancshares will issue 4,439,981 shares of Prosperity Bancshares common stock for all outstanding shares of American common stock, subject to certain potential adjustments. Based on Prosperity Bancshares' closing price of $72.40 on July 16, 2025, the total consideration was valued at approximately $321.5 million. The transaction is subject to customary closing conditions, including the receipt of required regulatory approvals and approval of the shareholders of American. The transaction is expected to close during the fourth quarter of 2025 or the first quarter of 2026.

Conference Call

Prosperity's management team will host a conference call on Wednesday, July 23, 2025, at 11:30 a.m. Eastern Time (10:30 a.m. Central Time) to discuss Prosperity's second 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 9928869.

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 June 30, 2025, Prosperity Bancshares, Inc.® is a $38.417 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 283 full-service banking locations: 62 in the Houston area, including The Woodlands; 33 in the South Texas area including Corpus Christi and Victoria; 61 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 statements regarding the proposed transaction between Prosperity and American; future financial and operating results; benefits and synergies of the transaction; future opportunities for Prosperity; the issuance of common stock of Prosperity contemplated by the Merger Agreement; the expected filing by Prosperity with the Securities and Exchange Commission (the "SEC") of a registration statement on Form S-4 (the "Registration Statement") and a prospectus of Prosperity and a proxy statement of American to be included therein (the "Proxy Statement/Prospectus"); the expected timing of the closing of the proposed transaction; the ability of the parties to complete the proposed transaction considering the various closing conditions and any other statements about future expectations that constitute forward-looking statements within the meaning of the federal securities laws, including the meaning of the Private Securities Litigation Reform Act of 1995, as amended, Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), 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 and its subsidiaries or related to the proposed transaction and are subject to significant risks and uncertainties that could cause actual results to differ materially from the results expressed in such statements. 

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 each of the 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. Many possible events or factors could adversely affect the future financial results and performance of Prosperity, American or the combined company and could cause those results or performance to differ materially from those expressed in or implied by the forward-looking statements.  Such risks and uncertainties include, among others: (1) the risk that the cost savings and synergies from the transaction may not be fully realized or may take longer than anticipated to be realized, (2) disruption to Prosperity's business and to American's business as a result of the announcement and pendency of the transaction, (3) the risk that the integration of American's business and operations into Prosperity, will be materially delayed or will be more costly or difficult than expected, or that Prosperity is otherwise unable to successfully integrate American's business into its own, including as a result of unexpected factors or events, (4) the failure to obtain the necessary approval by the shareholders of American, (5) the ability by each of Prosperity and American to obtain required governmental approvals of the transaction on the timeline expected, or at all, and the risk that such approvals may result in the imposition of conditions that could adversely affect Prosperity after the closing of the transaction or adversely affect the expected benefits of the transaction, (6) reputational risk and the reaction of each company's customers, suppliers, employees or other business partners to the transaction, (7) the failure of the closing conditions in the Merger Agreement to be satisfied, or any unexpected delay in closing the transaction or the occurrence of any event, change or other circumstances that could give rise to the termination of the Merger Agreement, (8) the dilution caused by the issuance of additional shares of Prosperity's common stock in the transaction, (9) the possibility that the transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events, (10) the outcome of any legal or regulatory proceedings that may be currently pending or later instituted against Prosperity before or after the transaction, or against American, (11) diversion of management's attention from ongoing business operations and (12) general competitive, economic, political and market conditions and other factors that may affect future results of Prosperity and American. 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, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K, in each case filed with the SEC, and other reports and statements Prosperity has filed with the SEC. Copies of the SEC filings for Prosperity may be downloaded from the Internet at no charge from http://www.prosperitybankusa.com.

Additional Information about the Transaction and Where to Find It

Prosperity intends to file with the SEC a Registration Statement on Form S-4 to register the shares of Prosperity common stock to be issued to the shareholders of American in connection with the proposed transaction.  The Registration Statement will include a Proxy Statement/Prospectus which will be sent to the shareholders of American in connection with the proposed transaction.

INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT ON FORM S-4, THE PROXY STATEMENT/PROSPECTUS INCLUDED WITHIN THE REGISTRATION STATEMENT ON FORM S-4 AND ANY OTHER RELEVANT DOCUMENTS TO BE FILED WITH THE SEC IN CONNECTION WITH THE PROPOSED TRANSACTION OR INCORPORATED BY REFERENCE INTO THE PROXY/STATEMENT PROSPECTUS, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY, WHEN THEY ARE AVAILABLE, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT PROSPERITY, AMERICAN AND THE PROPOSED TRANSACTION.

Investors and security holders may obtain free copies of these documents through the website maintained by the SEC at http://www.sec.gov.  You will also be able to obtain these documents, when they are filed, free of charge, from Prosperity at http://www.prosperitybankusa.com.  Copies of the Proxy Statement/Prospectus can also be obtained, when it becomes available, free of charge, by directing a request by telephone or mail to Prosperity Bancshares, Inc., Prosperity Bank Plaza, 4295 San Felipe, Houston, Texas 77027 Attn:  Investor Relations, (281) 269-7199 or to American Bank Holding Corporation, 800 North Shoreline Boulevard, Corpus Christi, Texas 78401, Attn:  Stephen Raffaele, (512) 306-5550.

No Offer or Solicitation

This communication is for informational purposes only and is not intended to and does not constitute an offer to subscribe for, buy or sell, or the solicitation of an offer to subscribe for, buy or sell, or an invitation to subscribe for, buy or sell any securities or a solicitation of any vote or approval in any jurisdiction, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in which such offer, invitation, sale or solicitation would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.  No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act, and otherwise in accordance with applicable law.

____________________

(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 $2.8 million, net of tax, primarily comprised of loan discount accretion of $3.1 million for the three months ended June 30, 2025.

(3)

Includes purchase accounting adjustments of $6.1 million, net of tax, primarily comprised of loan discount accretion of $7.2 million, merger related provision for credit losses of $9.1 million, merger related expenses of $4.4 million, FDIC special assessment of $3.6 million, and net gain on sale or write-up of securities of $10.7 million for the three months ended June 30, 2024.

(4)

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.

(5)

Includes purchase accounting adjustments of $6.0 million, net of tax, primarily comprised of loan discount accretion of $6.4 million for the six months ended June 30, 2025.

(6)

Includes purchase accounting adjustments of $8.1 million, net of tax, primarily comprised of loan discount accretion of $9.1 million, merger related provision for credit losses of $9.1 million, merger related expenses of $4.4 million, FDIC special assessment of $3.6 million, and net gain on sale or write-up of securities of $11.0 million for the six months ended June 30, 2024.

 

Bryan/College Station Area


Grapevine


Seven Points


Shadow Creek


North University

Bryan


Grapevine Main


Teague


Spring


Texas Tech Student Union

Bryan-29th Street


Kiest


Tyler-Beckham


Tomball



Bryan-East


Lake Highlands


Tyler-South Broadway


Waller


Midland

Bryan-North


McKinney


Tyler-University


West Columbia


North

Caldwell


McKinney Eldorado


Winnsboro


Wharton


Wadley

College Station


McKinney Redbud




Winnie


Wall Street

Hearne


North Carrolton


Houston Area


Wirt


West

Huntsville


Park Cities


Houston





Madisonville


Plano


Aldine


South Texas Area -


Odessa

Navasota


Plano-West


Alief


Corpus Christi


Grant

New Waverly


Preston Forest


Bellaire


Calallen


Kermit Highway

Rock Prairie


Preston Parker


Beltway


Carmel


Parkway

Southwest Parkway


Preston Royal


Clear Lake


Northwest



Tower Point


Red Oak


Copperfield


Saratoga


San Angelo

Wellborn Road


Richardson


Cypress


Timbergate


College Hills



Richardson-West


Downtown


Water Street


Sherwood Way

Central Texas Area


Rosewood Court


Eastex





Austin


The Colony


Fairfield


Victoria


Wichita Falls

Cedar Park


Tollroad


First Colony


Victoria Main


Cattlemans

Congress


Trinity Mills


Fry Road


Victoria-Navarro


Kell

Lakeway


Turtle Creek


Gessner


Victoria-North



Liberty Hill


West 15th Plano


Gladebrook


Victoria Salem


Other West Texas Area

Northland


West Allen


Grand Parkway




Locations

Oak Hill


Westmoreland


Heights


Other South Texas Area


Big Spring

Research Blvd


Wylie


Highway 6 West


 Locations


Big Spring - East

Westlake




Little York


Alice


Brownfield



Fort Worth


Medical Center


Aransas Pass


Brownwood

Other Central Texas Area


Haltom City


Memorial Drive


Bay City


Burkburnett

Locations


Hulen


Northside


Beeville


Byers

Bastrop


Keller


Pasadena


Colony Creek


Cisco

Canyon Lake


Museum Place


Pecan Grove


Cuero


Comanche

Dime Box


Renaissance Square


Pin Oak


East Bernard


Early

Dripping Springs


Roanoke


River Oaks


Edna


Floydada

Elgin


Stockyards


Sugar Land


El Campo


Gorman

Flatonia




SW Medical Center


Goliad


Henrietta

Fredericksburg


Other Dallas/Fort Worth Area


Tanglewood


Gonzales


Levelland

Georgetown


Locations


The Plaza


Hallettsville


Littlefield

Gruene


Arlington


Uptown


Kingsville


Merkel

Horseshoe Bay


Azle


Waugh Drive


Mathis


Plainview

Kingsland


Ennis


Westheimer


Padre Island


Slaton

La Grange


Gainesville


West University


Palacios


Snyder

Lexington


Glen Rose


Woodcreek


Port Lavaca



Marble Falls


Granbury




Portland


Oklahoma

New Braunfels


Grand Prairie


Katy


Rockport


Central Oklahoma Area

Pleasanton


Jacksboro


Cinco Ranch


Sinton


Oklahoma City

Round Rock


Mesquite


Katy-Spring Green


Taft


23rd Street

San Antonio


Muenster




Yoakum


Expressway

Schulenburg


Runaway Bay


The Woodlands


Yorktown


I-240

Seguin


Sanger


The Woodlands-College Park




Memorial

Smithville


Waxahachie


The Woodlands-I-45


West Texas Area



Thorndale


Weatherford


The Woodlands-Research Forest


Abilene


Other Central Oklahoma Area

Weimar






Antilley Road


 Locations



East Texas Area


Other Houston Area


Barrow Street


Edmond

Dallas/Fort Worth Area


Athens


Locations


Cypress Street


Norman

Dallas


Blooming Grove


Angleton


Judge Ely



14th Street Plano


Canton


Beaumont


Mockingbird


Tulsa Area

Abrams Centre


Carthage


Cleveland




Tulsa

Addison


Corsicana


Dayton


Amarillo


Garnett

Allen


Crockett


Galveston


Hillside


Harvard

Balch Springs


Eustace


Groves


Soncy


Memorial

Camp Wisdom


Gilmer


Hempstead




Sheridan

Carrollton


Grapeland


Hitchcock


Lubbock


S. Harvard

Cedar Hill


Gun Barrel City


Liberty


4th Street


Utica Tower

Coppell


Jacksonville


Magnolia


66th Street


Yale

East Plano


Kerens


Magnolia Parkway


82nd Street



Frisco


Longview


Mont Belvieu


86th Street


Other Tulsa Area Locations

Frisco Warren


Mount Vernon


Nederland


98th Street


Owasso

Frisco-West


Palestine


Needville


Avenue Q



Garland


Rusk


Rosenberg


Milwaukee



 

Prosperity Bancshares, Inc. ®

Financial Highlights (Unaudited)

(In thousands)




Jun 30, 2025



Mar 31, 2025



Dec 31, 2024



Sep 30, 2024



Jun 30, 2024


Balance Sheet Data (at period end)
















Loans held for sale


$

6,004



$

9,764



$

10,690



$

6,113



$

9,951


Loans held for investment



20,903,944




20,909,913




21,057,616




21,146,033




21,229,461


Loans held for investment - Warehouse Purchase
Program



1,287,440




1,057,893




1,080,903




1,228,706




1,081,403


Total loans



22,197,388




21,977,570




22,149,209




22,380,852




22,320,815


















Investment securities(A)



10,608,104




10,792,731




11,094,424




11,300,756




11,702,139


Federal funds sold



197




221




292




208




234


Allowance for credit losses on loans



(346,084)




(349,101)




(351,805)




(354,397)




(359,852)


Cash and due from banks



1,304,993




1,694,637




1,972,175




2,209,863




1,507,604


Goodwill



3,503,127




3,503,127




3,503,129




3,504,388




3,504,107


Core deposit intangibles, net



58,796




62,406




66,047




70,178




74,324


Other real estate owned



7,874




8,012




5,701




5,757




4,960


Fixed assets, net



374,602




373,273




371,238




373,812




377,394


Other assets



708,355




701,799




756,328




623,903




630,569


Total assets


$

38,417,352



$

38,764,675



$

39,566,738



$

40,115,320



$

39,762,294


















Noninterest-bearing deposits


$

9,426,657



$

9,675,915



$

9,798,438



$

9,811,361



$

9,706,505


Interest-bearing deposits



18,046,754




18,350,884




18,582,900




18,276,250




18,226,581


Total deposits



27,473,411




28,026,799




28,381,338




28,087,611




27,933,086


Other borrowings



2,900,000




2,700,000




3,200,000




3,900,000




3,900,000


Securities sold under repurchase agreements



183,572




216,086




221,913




228,896




233,689


Allowance for credit losses on off-balance sheet credit
exposures



37,646




37,646




37,646




37,646




37,646


Other liabilities



222,987




267,083




287,346




499,918




374,429


Total liabilities



30,817,616




31,247,614




32,128,243




32,754,071




32,478,850


Shareholders' equity(B)



7,599,736




7,517,061




7,438,495




7,361,249




7,283,444


Total liabilities and equity


$

38,417,352



$

38,764,675



$

39,566,738



$

40,115,320



$

39,762,294




(A)

Includes $(1,657), $(1,374), $(2,056), $(1,070) and $(2,007) in unrealized losses on available for sale securities for the quarterly periods ended June 30, 2025, March 31, 2025, December 31, 2024, September 30, 2024 and June 30, 2024, respectively.

(B)

Includes $(1,309), $(1,085), $(1,624), $(845) and $(1,586) in after-tax unrealized losses on available for sale securities for the quarterly periods ended June 30, 2025, March 31, 2025, December 31, 2024, September 30, 2024 and June 30, 2024, respectively.

 

Prosperity Bancshares, Inc. ®

Financial Highlights (Unaudited)

(In thousands)




Three Months Ended



Year-to-Date




Jun 30,
2025



Mar 31,
2025



Dec 31,
2024



Sep 30,
2024



Jun 30,
2024



Jun 30,
2025



Jun 30,
2024


Income Statement Data






















Interest income:






















Loans


$

325,490



$

319,023



$

333,055



$

337,451



$

336,428



$

644,513



$

642,656


Securities(C)



57,836




57,886




58,260




59,617




62,428




115,722




128,849


Federal funds sold and other earning assets



9,438




15,896




19,630




20,835




14,095




25,334




23,360


Total interest income



392,764




392,805




410,945




417,903




412,951




785,569




794,865
























Interest expense:






















Deposits



93,790




95,597




102,050




107,758




106,124




189,387




198,816


Other borrowings



30,101




30,492




39,620




46,792




46,282




60,593




95,228


Securities sold under repurchase agreements



1,151




1,334




1,501




1,662




1,759




2,485




3,791


Total interest expense



125,042




127,423




143,171




156,212




154,165




252,465




297,835


Net interest income



267,722




265,382




267,774




261,691




258,786




533,104




497,030


Provision for credit losses



—




—




—




—




9,066




—




9,066


Net interest income after provision for credit losses



267,722




265,382




267,774




261,691




249,720




533,104




487,964
























Noninterest income:






















Nonsufficient funds (NSF) fees



8,885




9,147




9,960




9,016




8,153




18,032




16,441


Credit card, debit card and ATM card income



9,761




8,739




9,443




9,620




9,384




18,500




18,245


Service charges on deposit accounts



7,645




7,408




6,992




6,664




6,436




15,053




12,842


Trust income



3,859




3,601




3,514




3,479




3,601




7,460




7,757


Mortgage income



965




1,009




779




962




745




1,974




1,355


Brokerage income



1,225




1,262




1,063




1,258




1,186




2,487




2,421


Bank owned life insurance income



1,985




2,115




2,020




2,028




1,885




4,100




3,932


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



1,414




(235)




584




3,178




(903)




1,179




(938)


Net gain on sale or write-up of securities



—




—




—




224




10,723




—




11,021


Other noninterest income



7,243




8,255




5,482




4,670




4,793




15,498




11,797


Total noninterest income



42,982




41,301




39,837




41,099




46,003




84,283




84,873
























Noninterest expense:






















Salaries and benefits



87,296




89,476




88,631




88,367




89,584




176,772




175,355


Net occupancy and equipment



9,168




9,146




8,957




9,291




8,915




18,314




17,538


Credit and debit card, data processing and software
amortization



12,056




11,422




12,342




11,985




11,998




23,478




22,973


Regulatory assessments and FDIC insurance



5,508




5,789




5,789




5,726




10,317




11,297




15,855


Core deposit intangibles amortization



3,610




3,641




4,131




4,146




4,156




7,251




7,393


Depreciation



4,779




4,774




4,791




4,741




4,836




9,553




9,522


Communications



3,507




3,473




3,450




3,360




3,485




6,980




6,887


Other real estate expense



204




140




255




12




69




344




256


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



(222)




(30)




(610)




(97)




31




(252)




(107)


Merger related expenses



—




—




—




63




4,381




—




4,381


Other noninterest expense



12,659




12,470




13,809




12,744




15,070




25,129




28,637


Total noninterest expense



138,565




140,301




141,545




140,338




152,842




278,866




288,690


Income before income taxes



172,139




166,382




166,066




162,452




142,881




338,521




284,147


Provision for income taxes



36,984




36,157




35,990




35,170




31,279




73,141




62,119


Net income available to common shareholders


$

135,155



$

130,225



$

130,076



$

127,282



$

111,602



$

265,380



$

222,028




(C)

Interest income on securities was reduced by net premium amortization of $4,926, $5,027, $5,609, $5,574 and $5,831 for the three months ended June 30, 2025, March 31, 2025, December 31, 2024, September 30, 2024 and June 30, 2024, respectively, and $9,953 and $11,653 for the six months ended June 30, 2025 and 2024, respectively.

 

Prosperity Bancshares, Inc.  ®

Financial Highlights (Unaudited)

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




Three Months Ended



Year-to-Date




Jun 30,
2025



Mar 31,
2025



Dec 31,
2024



Sep 30,
2024



Jun 30,
2024



Jun 30,
2025



Jun 30,
2024
























Profitability






















Net income (D) (E)


$

135,155



$

130,225



$

130,076



$

127,282



$

111,602



$

265,380



$

222,028
























Basic earnings per share


$

1.42



$

1.37



$

1.37



$

1.34



$

1.17



$

2.79



$

2.34


Diluted earnings per share


$

1.42



$

1.37



$

1.37



$

1.34



$

1.17



$

2.79



$

2.34
























Return on average assets (F)(J)



1.41

%



1.34

%



1.31

%



1.28

%



1.12

%



1.37

%



1.13

%

Return on average common equity (F)(J)



7.13

%



6.94

%



7.00

%



6.93

%



6.10

%



7.03

%



6.15

%

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



13.44

%



13.23

%



13.50

%



13.50

%



11.81

%



13.33

%



11.93

%

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



3.18

%



3.14

%



3.05

%



2.95

%



2.94

%



3.16

%



2.87

%

Efficiency ratio (G) (I)(K)



44.80

%



45.71

%



46.10

%



46.87

%



51.82

%



45.26

%



50.49

%























Liquidity and Capital Ratios






















Equity to assets



19.78

%



19.39

%



18.80

%



18.35

%



18.32

%



19.78

%



18.32

%

Common equity tier 1 capital



17.10

%



16.92

%



16.42

%



15.84

%



15.42

%



17.10

%



15.42

%

Tier 1 risk-based capital



17.10

%



16.92

%



16.42

%



15.84

%



15.42

%



17.10

%



15.42

%

Total risk-based capital



18.35

%



18.17

%



17.67

%



17.09

%



16.67

%



18.35

%



16.67

%

Tier 1 leverage capital



11.62

%



11.20

%



10.82

%



10.52

%



10.29

%



11.62

%



10.29

%

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



11.58

%



11.23

%



10.75

%



10.36

%



10.24

%



11.58

%



10.24

%























Other Data






















Weighted-average shares used in computing
earnings per common share






















Basic



95,277




95,266




95,264




95,261




95,765




95,271




94,735


Diluted



95,277




95,266




95,264




95,261




95,765




95,271




94,735


Period end shares outstanding



95,277




95,258




95,275




95,261




95,262




95,277




95,262


Cash dividends paid per common share


$

0.58



$

0.58



$

0.58



$

0.56



$

0.56



$

1.16



$

1.12


Book value per common share


$

79.76



$

78.91



$

78.07



$

77.27



$

76.46



$

79.76



$

76.46


Tangible book value per common share (G)


$

42.38



$

41.48



$

40.61



$

39.75



$

38.89



$

42.38



$

38.89
























Common Stock Market Price






















High


$

74.56



$

82.75



$

86.76



$

74.87



$

66.18



$

82.75



$

68.88


Low


$

61.57



$

68.96



$

68.94



$

58.66



$

57.16



$

61.57



$

57.16


Period end closing price


$

70.24



$

71.37



$

75.35



$

72.07



$

61.14



$

70.24



$

61.14


Employees – FTE (excluding overtime)



3,921




3,898




3,916




3,896




3,902




3,921




3,902


Number of banking centers



283




284




283




287




288




283




288




(D)

Includes purchase accounting adjustments for the periods presented as follows:




Three Months Ended


Year-to-Date


Jun 30,

2025


Mar 31,

2025


Dec 31,

2024


Sep 30,

2024


Jun 30,

2024


Jun 30,

2025


Jun 30,

2024

Loan discount accretion














Non-PCD

$2,486


$2,615


$2,761


$3,616


$4,797


$5,101


$6,109

PCD

$638


$677


$850


$1,212


$2,394


$1,315


$2,942

Securities net accretion

$409


$705


$528


$555


$564


$1,114


$1,125

Time deposits
amortization

$(2)


$(9)


$(21)


$(40)


$4


$(11)


$(93)



(E)

Using effective tax rate of 21.5%, 21.7%, 21.7%, 21.6% and 21.9% for the three months ended June 30, 2025, March 31, 2025, December 31, 2024, September 30, 2024 and June 30, 2024, respectively, and 21.6% and 21.9% for the six months ended June 30, 2025 and 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




Jun 30, 2025


Mar 31, 2025


Jun 30, 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


$

9,813



$

166



6.79 %


$

7,570



$

127



6.80 %


$

8,446



$

149



7.10 %


Loans held for investment



20,907,400




306,671



5.88 %



20,959,226




305,068



5.90 %



21,328,824




319,361



6.02 %


Loans held for investment - Warehouse
Purchase Program



1,179,307




18,653



6.34 %



876,086




13,828



6.40 %



917,026




16,918



7.42 %


Total loans



22,096,520




325,490



5.91 %



21,842,882




319,023



5.92 %



22,254,296




336,428



6.08 %


Investment securities



10,867,856




57,836



2.13 %

(M)


11,017,400




57,886



2.13 %

(M)


12,179,074




62,428



2.06 %

(M)

Federal funds sold and other earning assets



841,933




9,438



4.50 %



1,443,220




15,896



4.47 %



1,026,251




14,095



5.52 %


Total interest-earning assets



33,806,309




392,764



4.66 %



34,303,502




392,805



4.64 %



35,459,621




412,951



4.68 %


Allowance for credit losses on loans



(348,310)









(350,715)









(332,904)








Noninterest-earning assets



4,933,215









5,004,291









4,822,131








Total assets


$

38,391,214








$

38,957,078








$

39,948,848


































Interest-bearing liabilities:


























Interest-bearing demand deposits


$

4,807,864



$

8,859



0.74 %


$

5,224,796



$

9,019



0.70 %


$

4,839,194



$

9,133



0.76 %


Savings and money market deposits



8,944,897




45,796



2.05 %



9,007,286




45,645



2.06 %



9,084,051




50,252



2.22 %


Certificates and other time deposits



4,366,510




39,135



3.59 %



4,426,521




40,933



3.75 %



4,400,922




46,739



4.27 %


Other borrowings



2,717,583




30,101



4.44 %



2,776,667




30,492



4.45 %



3,900,000




46,282



4.77 %


Securities sold under repurchase
agreements



194,577




1,151



2.37 %



217,945




1,334



2.48 %



258,637




1,759



2.74 %


Total interest-bearing liabilities



21,031,431




125,042



2.38 %

(N)


21,653,215




127,423



2.39 %

(N)


22,482,804




154,165



2.76 %

(N)



























Noninterest-bearing liabilities:


























Noninterest-bearing demand deposits



9,508,845









9,504,540









9,780,211








Allowance for credit losses on off-balance
sheet credit exposures



37,646









37,646









36,729








Other liabilities



227,002









255,876









327,847








Total liabilities



30,804,924









31,451,277









32,627,591








Shareholders' equity



7,586,290









7,505,801









7,321,257








Total liabilities and shareholders' equity


$

38,391,214








$

38,957,078








$

39,948,848


































Net interest income and margin





$

267,722



3.18 %





$

265,382



3.14 %





$

258,786



2.94 %


Non-GAAP to GAAP reconciliation:


























Tax equivalent adjustment






574









587









800





Net interest income and margin
     (tax equivalent basis)





$

268,296



3.18 %





$

265,969



3.14 %





$

259,586



2.94 %




(L)

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

(M)

Yield on securities was impacted by net premium amortization of $4,926, $5,027 and $5,831 for the three months ended June 30, 2025, March 31, 2025 and June 30, 2024, respectively.

(N)

Total cost of funds, including noninterest bearing deposits, was 1.64%, 1.66% and 1.92% for the three months ended June 30, 2025, March 31, 2025 and June 30, 2024, respectively.

 

Prosperity Bancshares, Inc. ®

Financial Highlights (Unaudited)

(Dollars in thousands)


YIELD ANALYSIS


Year-to-Date




Jun 30, 2025


Jun 30, 2024




Average
Balance



Interest
Earned/
Interest
Paid



Average
Yield/
Rate

(O)

Average
Balance



Interest
Earned/
Interest
Paid



Average
Yield/
Rate

(O)

Interest-earning assets:


















Loans held for sale


$

8,698



$

293



6.79 %


$

6,957



$

241



6.97 %


Loans held for investment



20,933,170




611,739



5.89 %



20,872,069




612,034



5.90 %


Loans held for investment - Warehouse
Purchase Program



1,028,534




32,481



6.37 %



818,838




30,381



7.46 %


Total loans



21,970,402




644,513



5.92 %



21,697,864




642,656



5.96 %


Investment securities



10,942,215




115,722



2.13 %

(P)


12,436,171




128,849



2.08 %

(P)

Federal funds sold and other earning assets



1,140,915




25,334



4.48 %



849,546




23,360



5.53 %


Total interest-earning assets



34,053,532




785,569



4.65 %



34,983,581




794,865



4.57 %


Allowance for credit losses on loans



(349,506)









(332,306)








Noninterest-earning assets



4,967,987









4,790,888








Total assets


$

38,672,013








$

39,442,163


























Interest-bearing liabilities:


















Interest-bearing demand deposits


$

5,015,178



$

17,878



0.72 %


$

4,991,390



$

17,556



0.71 %


Savings and money market deposits



8,975,919




91,441



2.05 %



8,986,565




97,404



2.18 %


Certificates and other time deposits



4,396,350




80,068



3.67 %



4,042,369




83,856



4.17 %


Other borrowings



2,746,961




60,593



4.45 %



3,991,566




95,228



4.80 %


Securities sold under repurchase agreements



206,197




2,485



2.43 %



277,537




3,791



2.75 %


Total interest-bearing liabilities



21,340,605




252,465



2.39 %

(Q)


22,289,427




297,835



2.69 %

(Q)



















Noninterest-bearing liabilities:


















Noninterest-bearing demand deposits



9,506,704









9,611,730








Allowance for credit losses on off-balance
sheet credit exposures



37,646









36,616








Other liabilities



240,789









283,139








Total liabilities



31,125,744









32,220,912








Shareholders' equity



7,546,269









7,221,251








Total liabilities and shareholders' equity


$

38,672,013








$

39,442,163


























Net interest income and margin





$

533,104



3.16 %





$

497,030



2.86 %


Non-GAAP to GAAP reconciliation:


















Tax equivalent adjustment






1,161









1,608





Net interest income and margin
     (tax equivalent basis)





$

534,265



3.16 %





$

498,638



2.87 %




(O)

Based on an actual 365-day or 366-day basis.

(P)

Yield on securities was impacted by net premium amortization of $9,953 and $11,653 for the six months ended June 30, 2025 and 2024, respectively.

(Q)

Total cost of funds, including noninterest bearing deposits, was 1.65% and 1.88% for the six months ended June 30, 2025 and 2024, respectively.

 

Prosperity Bancshares, Inc. ®

Financial Highlights (Unaudited)

(Dollars in thousands)



Three Months Ended



Jun 30, 2025



Mar 31, 2025



Dec 31, 2024



Sep 30, 2024



Jun 30, 2024


YIELD TREND (R)






























Interest-Earning Assets:















Loans held for sale


6.79

%



6.80

%



6.68

%



6.89

%



7.10

%

Loans held for investment


5.88

%



5.90

%



5.93

%



5.97

%



6.02

%

Loans held for investment - Warehouse Purchase
Program


6.34

%



6.40

%



6.66

%



7.27

%



7.42

%

Total loans


5.91

%



5.92

%



5.97

%



6.04

%



6.08

%

Investment securities (S)


2.13

%



2.13

%



2.06

%



2.04

%



2.06

%

Federal funds sold and other earning assets


4.50

%



4.47

%



4.80

%



5.41

%



5.52

%

Total interest-earning assets


4.66

%



4.64

%



4.66

%



4.70

%



4.68

%
















Interest-Bearing Liabilities:















Interest-bearing demand deposits


0.74

%



0.70

%



0.70

%



0.77

%



0.76

%

Savings and money market deposits


2.05

%



2.06

%



2.10

%



2.23

%



2.22

%

Certificates and other time deposits


3.59

%



3.75

%



4.06

%



4.24

%



4.27

%

Other borrowings


4.44

%



4.45

%



4.73

%



4.77

%



4.77

%

Securities sold under repurchase agreements


2.37

%



2.48

%



2.58

%



2.72

%



2.74

%

Total interest-bearing liabilities


2.38

%



2.39

%



2.60

%



2.78

%



2.76

%
















Net Interest Margin


3.18

%



3.14

%



3.04

%



2.94

%



2.94

%

Net Interest Margin (tax equivalent)


3.18

%



3.14

%



3.05

%



2.95

%



2.94

%



(R)

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

(S)

Yield on securities was impacted by net premium amortization of $4,926, $5,027, $5,609, $5,574 and $5,831 for the three months ended June 30, 2025, March 31, 2025, December 31, 2024, September 30, 2024 and June 30, 2024, respectively.

 

Prosperity Bancshares, Inc. ®

Financial Highlights (Unaudited)

(Dollars in thousands)




Three Months Ended




Jun 30, 2025



Mar 31, 2025



Dec 31, 2024



Sep 30, 2024



Jun 30, 2024


Balance Sheet Averages
















Loans held for sale


$

9,813



$

7,570



$

8,571



$

7,913



$

8,446


Loans held for investment



20,907,400




20,959,226




21,038,694




21,107,139




21,328,824


Loans held for investment - Warehouse Purchase
Program



1,179,307




876,086




1,137,113




1,114,681




917,026


Total loans



22,096,520




21,842,882




22,184,378




22,229,733




22,254,296


















Investment securities



10,867,856




11,017,400




11,265,535




11,612,193




12,179,074


Federal funds sold and other earning assets



841,933




1,443,220




1,628,050




1,531,788




1,026,251


Total interest-earning assets



33,806,309




34,303,502




35,077,963




35,373,714




35,459,621


Allowance for credit losses on loans



(348,310)




(350,715)




(353,560)




(358,237)




(332,904)


Cash and due from banks



294,379




326,066




317,420




304,911




295,077


Goodwill



3,503,127




3,503,128




3,505,030




3,504,300




3,482,448


Core deposit intangibles, net



60,739




64,293




68,167




72,330




59,979


Other real estate



8,749




7,105




6,778




5,339




3,071


Fixed assets, net



374,486




374,448




373,561




375,626




377,369


Other assets



691,735




729,251




632,040




611,219




604,187


Total assets


$

38,391,214



$

38,957,078



$

39,627,399



$

39,889,202



$

39,948,848


















Noninterest-bearing deposits


$

9,508,845



$

9,504,540



$

9,829,912



$

9,680,785



$

9,780,211


Interest-bearing demand deposits



4,807,864




5,224,796




4,845,174




4,774,975




4,839,194


Savings and money market deposits



8,944,897




9,007,286




8,915,410




8,908,315




9,084,051


Certificates and other time deposits



4,366,510




4,426,521




4,552,445




4,564,232




4,400,922


Total deposits



27,628,116




28,163,143




28,142,941




27,928,307




28,104,378


Other borrowings



2,717,583




2,776,667




3,332,609




3,900,000




3,900,000


Securities sold under repurchase agreements



194,577




217,945




231,240




242,813




258,637


Allowance for credit losses on off-balance sheet
credit exposures



37,646




37,646




37,646




37,646




36,729


Other liabilities



227,002




255,876




454,298




433,171




327,847


Shareholders' equity



7,586,290




7,505,801




7,428,665




7,347,265




7,321,257


Total liabilities and equity


$

38,391,214



$

38,957,078



$

39,627,399



$

39,889,202



$

39,948,848


 

Prosperity Bancshares, Inc. ®

Financial Highlights (Unaudited)

(Dollars in thousands)




Jun 30, 2025



Mar 31, 2025



Dec 31, 2024



Sep 30, 2024



Jun 30, 2024


Period End Balances




















































Loan Portfolio


























Commercial and
industrial


$

1,897,117



8.6

%


$

1,915,124



8.7

%


$

1,962,111



8.8

%


$

1,970,844



8.8

%


$

2,023,531



9.1

%

Warehouse purchase
program



1,287,440



5.8

%



1,057,893



4.8

%



1,080,903



4.9

%



1,228,706



5.5

%



1,081,403



4.8

%

Construction, land
development and other
land loans



2,873,238



12.9

%



2,845,082



13.0

%



2,859,281



12.9

%



2,814,521



12.6

%



2,828,372



12.7

%

1-4 family residential



7,530,816



33.9

%



7,576,350



34.5

%



7,581,450



34.2

%



7,557,858



33.8

%



7,496,485



33.6

%

Home equity



869,370



3.9

%



896,529



4.1

%



906,139



4.1

%



919,676



4.1

%



930,428



4.2

%

Commercial real estate
(includes multi-family
residential)



5,827,645



26.3

%



5,783,410



26.3

%



5,800,985



26.2

%



5,869,687



26.2

%



5,961,884



26.7

%

Agriculture (includes
farmland)



1,029,250



4.6

%



1,013,960



4.6

%



1,033,546



4.7

%



1,033,224



4.6

%



1,037,361



4.6

%

Consumer and other



368,747



1.7

%



378,821



1.7

%



378,817



1.7

%



413,548



1.8

%



340,611



1.5

%

Energy



513,765



2.3

%



510,401



2.3

%



545,977



2.5

%



572,788



2.6

%



620,740



2.8

%

Total loans


$

22,197,388





$

21,977,570





$

22,149,209





$

22,380,852





$

22,320,815






























Deposit Types


























Noninterest-bearing
DDA


$

9,426,657



34.3

%


$

9,675,915



34.5

%


$

9,798,438



34.5

%


$

9,811,361



34.9

%


$

9,706,505



34.7

%

Interest-bearing DDA



4,708,251



17.1

%



4,931,769



17.6

%



5,182,035



18.3

%



4,800,758



17.1

%



4,762,730



17.1

%

Money market



6,302,770



23.0

%



6,339,509



22.6

%



6,229,022



21.9

%



6,166,792



22.0

%



6,180,769



22.1

%

Savings



2,667,859



9.7

%



2,703,736



9.7

%



2,685,496



9.5

%



2,707,982



9.6

%



2,765,197



9.9

%

Certificates and other
time deposits



4,367,874



15.9

%



4,375,870



15.6

%



4,486,347



15.8

%



4,600,718



16.4

%



4,517,885



16.2

%

Total deposits


$

27,473,411





$

28,026,799





$

28,381,338





$

28,087,611





$

27,933,086






























Loan to Deposit Ratio



80.8

%





78.4

%





78.0

%





79.7

%





79.9

%



 

Prosperity Bancshares, Inc. ®

Financial Highlights (Unaudited)

(Dollars in thousands)

Construction Loans




Jun 30, 2025



Mar 31, 2025



Dec 31, 2024



Sep 30, 2024



Jun 30, 2024




























Single family residential construction


$

696,569



24.2

%


$

727,417



25.6

%


$

778,067



27.2

%


$

836,571



29.7

%


$

940,381



33.2

%

Land development



227,254



7.9

%



225,784



7.9

%



260,158



9.1

%



256,571



9.1

%



241,639



8.5

%

Raw land



248,380



8.7

%



261,918



9.2

%



278,892



9.7

%



263,411



9.4

%



291,112



10.3

%

Residential lots



217,835



7.6

%



219,115



7.7

%



209,850



7.3

%



217,920



7.7

%



222,343



7.9

%

Commercial lots



55,176



1.9

%



56,343



2.0

%



59,044



2.1

%



58,472



2.1

%



60,264



2.1

%

Commercial construction and other



1,428,985



49.7

%



1,355,587



47.6

%



1,274,619



44.6

%



1,183,127



42.0

%



1,074,361



38.0

%

Net unaccreted discount



(961)






(1,082)






(1,349)






(1,551)






(1,728)




Total construction loans


$

2,873,238





$

2,845,082





$

2,859,281





$

2,814,521





$

2,828,372




 

Non-Owner Occupied Commercial Real Estate Loans by Metropolitan Statistical Area (MSA) as of June 30, 2025



Houston



Dallas



Austin



OK City



Tulsa



Other (T)



Total



Collateral Type






















Shopping center/retail

$

332,171



$

249,400



$

59,338



$

15,472



$

13,024



$

330,419



$

999,824



Commercial and industrial buildings


133,239




105,706




22,278




33,130




12,339




274,479




581,171



Office buildings


114,815




269,275




130,691




45,270




4,330




86,538




650,919



Medical buildings


82,882




16,788




1,657




42,053




27,437




71,247




242,064



Apartment buildings


122,871




128,913




64,053




10,615




13,530




208,395




548,377



Hotel


108,149




117,048




30,555




13,625




—




180,617




449,994



Other


174,929




58,816




20,314




6,182




6,973




97,515




364,729



Total

$

1,069,056



$

945,946



$

328,886



$

166,347



$

77,633



$

1,249,210



$

3,837,078


(U)

 

Acquired Loans



Non-PCD Loans



PCD Loans



Total Acquired Loans



Balance at
Acquisition
Date



Balance at
Mar 31,
2025



Balance at
Jun 30,
2025



Balance at
Acquisition
Date



Balance at
Mar 31,
2025



Balance at
Jun 30,
2025



Balance at
Acquisition
Date



Balance at
Mar 31,
2025



Balance at
Jun 30,
2025


Loan marks:



























Acquired banks (V)

$

368,247



$

13,536



$

12,813



$

327,842



$

5,620



$

5,237



$

696,089



$

19,156



$

18,050


Lone Star Bank (W)


20,378




11,714




9,953




4,558




1,093




838




24,936




12,807




10,791


Total


388,625




25,250




22,766




332,400




6,713




6,075




721,025




31,963




28,841





























Acquired portfolio loan
balances:



























Acquired banks (V)


13,307,853




1,281,901




1,223,988




1,317,564




380,484




342,617




14,625,417




1,662,385




1,566,605


Lone Star Bank (W)


1,016,128




645,440




562,614




59,109




47,559




44,526




1,075,237




692,999




607,140


Total


14,323,981




1,927,341




1,786,602




1,376,673




428,043




387,143




15,700,654


 (X)


2,355,384




2,173,745





























Acquired portfolio loan
balances less loan marks

$

13,935,356



$

1,902,091



$

1,763,836



$

1,044,273



$

421,330



$

381,068



$

14,979,629



$

2,323,421



$

2,144,904




(T)

Includes other MSA and non-MSA regions.

(U)

Represents a portion of total commercial real estate loans of $5.828 billion as of June 30, 2025.

(V)

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 and LegacyTexas Bank.

(W)

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.

(X)

Actual principal balances acquired.

 

Prosperity Bancshares, Inc. ®

Financial Highlights (Unaudited)

(Dollars in thousands)



Three Months Ended



Year-to-Date



Jun 30,
2025



Mar 31,
2025



Dec 31,
2024



Sep 30,
2024



Jun 30,
2024



Jun 30,
2025



Jun 30,
2024


Asset Quality





















Nonaccrual loans

$

102,031



$

73,287



$

73,647



$

83,969



$

84,175



$

102,031



$

84,175


Accruing loans 90 or more days past due


576




91




2,189




20




322




576




322


Total nonperforming loans


102,607




73,378




75,836




83,989




84,497




102,607




84,497


Repossessed assets


6




29




4




177




113




6




113


Other real estate


7,874




8,012




5,701




5,757




4,960




7,874




4,960


Total nonperforming assets

$

110,487



$

81,419



$

81,541



$

89,923



$

89,570



$

110,487



$

89,570























Nonperforming assets:





















Commercial and industrial (includes energy)

$

27,680



$

8,966



$

10,080



$

13,642



$

16,340



$

27,680



$

16,340


Construction, land development and other land
loans


1,859




1,952




4,481




4,053




4,895




1,859




4,895


1-4 family residential (includes home equity)


50,501




42,481




44,824




36,660




33,935




50,501




33,935


Commercial real estate (includes multi-family
residential)


12,865




12,257




18,861




32,803




31,776




12,865




31,776


Agriculture (includes farmland)


17,547




15,725




3,208




2,686




2,550




17,547




2,550


Consumer and other


35




38




87




79




74




35




74


Total

$

110,487



$

81,419



$

81,541



$

89,923



$

89,570



$

110,487



$

89,570


Number of loans/properties


392




363




368




346




349




392




349


Allowance for credit losses on loans

$

346,084



$

349,101



$

351,805



$

354,397



$

359,852



$

346,084



$

359,852























Net charge-offs (recoveries):





















Commercial and industrial (includes energy)

$

1,044



$

330



$

405



$

3,309



$

2,777



$

1,374



$

3,060


Construction, land development and other land
loans


(3)




(156)




294




378




109




(159)




107


1-4 family residential (includes home equity)


342




1,051




180




409




425




1,393




882


Commercial real estate (includes multi-family
residential)


55




178




362




258




(381)




233




(398)


Agriculture (includes farmland)


(14)




—




5




(116)




214




(14)




237


Consumer and other


1,593




1,301




1,346




1,217




1,224




2,894




2,623


Total

$

3,017



$

2,704



$

2,592



$

5,455



$

4,368



$

5,721



$

6,511























Asset Quality Ratios





















Nonperforming assets to average interest-earning
assets


0.33

%



0.24

%



0.23

%



0.25

%



0.25

%



0.32

%



0.26

%

Nonperforming assets to loans and other real
estate


0.50

%



0.37

%



0.37

%



0.40

%



0.40

%



0.50

%



0.40

%

Net charge-offs to average loans (annualized)


0.05

%



0.05

%



0.05

%



0.10

%



0.08

%



0.05

%



0.06

%

Allowance for credit losses on loans to total loans


1.56

%



1.59

%



1.59

%



1.58

%



1.61

%



1.56

%



1.61

%

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


1.66

%



1.67

%



1.67

%



1.68

%



1.69

%



1.66

%



1.69

%

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



Year-to-Date




Jun 30,
2025



Mar 31,
2025



Dec 31,
2024



Sep 30,
2024



Jun 30,
2024



Jun 30,
2025



Jun 30,
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)


$

1.42



$

1.37



$

1.37



$

1.34



$

1.17



$

2.79



$

2.34
























Net income


$

135,155



$

130,225



$

130,076



$

127,282



$

111,602



$

265,380



$

222,028


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



—




—




—




—




7,162




—




7,162


Merger related expenses, net of tax(Z)



—




—




—




50




3,461




—




3,461


FDIC special assessment, net of tax(Z)



—




—




—




—




2,807




—




2,807


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



—




—




—




(177)




(8,472)




—




(8,707)


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(Z):


$

135,155



$

130,225



$

130,076



$

127,155



$

116,560



$

265,380



$

226,751
























Weighted average diluted shares outstanding



95,277




95,266




95,264




95,261




95,765




95,271




94,735


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


$

—



$

—



$

—



$

—



$

0.07



$

—



$

0.07


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


$

—



$

—



$

—



$

—



$

0.04



$

—



$

0.04


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


$

—



$

—



$

—



$

—



$

0.03



$

—



$

0.03


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


$

—



$

—



$

—



$

—



$

(0.09)



$

—



$

(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:(Z)


$

1.42



$

1.37



$

1.37



$

1.34



$

1.22



$

2.79



$

2.39
























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)



1.41

%



1.34

%



1.31

%



1.28

%



1.12

%



1.37

%



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(Z):


$

135,155



$

130,225



$

130,076



$

127,155



$

116,560



$

265,380



$

226,751


Average total assets


$

38,391,214



$

38,957,078



$

39,627,399



$

39,889,202



$

39,948,848



$

38,672,013



$

39,442,163


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) (Z)



1.41

%



1.34

%



1.31

%



1.28

%



1.17

%



1.37

%



1.15

%


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




Three Months Ended



Year-to-Date




Jun 30,
2025



Mar 31,
2025



Dec 31,
2024



Sep 30,
2024



Jun 30,
2024



Jun 30,
2025



Jun 30,
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)



7.13

%



6.94

%



7.00

%



6.93

%



6.10

%



7.03

%



6.15

%























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(Z):


$

135,155



$

130,225



$

130,076



$

127,155



$

116,560



$

265,380



$

226,751


Average shareholders' equity


$

7,586,290



$

7,505,801



$

7,428,665



$

7,347,265



$

7,321,257



$

7,546,269



$

7,221,251


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) (Z)



7.13

%



6.94

%



7.00

%



6.92

%



6.37

%



7.03

%



6.28

%























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






















Net income


$

135,155



$

130,225



$

130,076



$

127,282



$

111,602



$

265,380



$

222,028


Average shareholders' equity


$

7,586,290



$

7,505,801



$

7,428,665



$

7,347,265



$

7,321,257



$

7,546,269



$

7,221,251


Less: Average goodwill and other intangible assets



(3,563,866)




(3,567,421)




(3,573,197)




(3,576,630)




(3,542,427)




(3,565,634)




(3,500,542)


Average tangible shareholders' equity


$

4,022,424



$

3,938,380



$

3,855,468



$

3,770,635



$

3,778,830



$

3,980,635



$

3,720,709


Return on average tangible common equity (F)



13.44

%



13.23

%



13.50

%



13.50

%



11.81

%



13.33

%



11.93

%























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(Z):


$

135,155



$

130,225



$

130,076



$

127,155



$

116,560



$

265,380



$

226,751


Average shareholders' equity


$

7,586,290



$

7,505,801



$

7,428,665



$

7,347,265



$

7,321,257



$

7,546,269



$

7,221,251


Less: Average goodwill and other intangible assets



(3,563,866)




(3,567,421)




(3,573,197)




(3,576,630)




(3,542,427)




(3,565,634)




(3,500,542)


Average tangible shareholders' equity


$

4,022,424



$

3,938,380



$

3,855,468



$

3,770,635



$

3,778,830



$

3,980,635



$

3,720,709


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) (Z)



13.44

%



13.23

%



13.50

%



13.49

%



12.34

%



13.33

%



12.19

%























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






















Shareholders' equity


$

7,599,736



$

7,517,061



$

7,438,495



$

7,361,249



$

7,283,444



$

7,599,736



$

7,283,444


Less: Goodwill and other intangible assets



(3,561,923)




(3,565,533)




(3,569,176)




(3,574,566)




(3,578,431)




(3,561,923)




(3,578,431)


Tangible shareholders' equity


$

4,037,813



$

3,951,528



$

3,869,319



$

3,786,683



$

3,705,013



$

4,037,813



$

3,705,013
























Period end shares outstanding



95,277




95,258




95,275




95,261




95,262




95,277




95,262


Tangible book value per share


$

42.38



$

41.48



$

40.61



$

39.75



$

38.89



$

42.38



$

38.89
























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






















Tangible shareholders' equity


$

4,037,813



$

3,951,528



$

3,869,319



$

3,786,683



$

3,705,013



$

4,037,813



$

3,705,013


Total assets


$

38,417,352



$

38,764,675



$

39,566,738



$

40,115,320



$

39,762,294



$

38,417,352



$

39,762,294


Less: Goodwill and other intangible assets



(3,561,923)




(3,565,533)




(3,569,176)




(3,574,566)




(3,578,431)




(3,561,923)




(3,578,431)


Tangible assets


$

34,855,429



$

35,199,142



$

35,997,562



$

36,540,754



$

36,183,863



$

34,855,429



$

36,183,863


Period end tangible equity to period end tangible assets ratio



11.58

%



11.23

%



10.75

%



10.36

%



10.24

%



11.58

%



10.24

%




Three Months Ended



Year-to-Date




Jun 30,
2025



Mar 31,
2025



Dec 31,
2024



Sep 30,
2024



Jun 30,
2024



Jun 30,
2025



Jun 30,
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


$

346,084



$

349,101



$

351,805



$

354,397



$

359,852



$

346,084



$

359,852


Total loans


$

22,197,388



$

21,977,570



$

22,149,209



$

22,380,852



$

22,320,815



$

22,197,388



$

22,320,815


Less: Warehouse Purchase Program loans



(1,287,440)




(1,057,893)




(1,080,903)




(1,228,706)




(1,081,403)




(1,287,440)




(1,081,403)


Total loans less Warehouse Purchase Program


$

20,909,948



$

20,919,677



$

21,068,306



$

21,152,146



$

21,239,412



$

20,909,948



$

21,239,412


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



1.66

%



1.67

%



1.67

%



1.68

%



1.69

%



1.66

%



1.69

%























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


$

138,565



$

140,301



$

141,545



$

140,338



$

152,842



$

278,866



$

288,690
























Net interest income


$

267,722



$

265,382



$

267,774



$

261,691



$

258,786



$

533,104



$

497,030


Noninterest income



42,982




41,301




39,837




41,099




46,003




84,283




84,873


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



1,414




(235)




584




3,178




(903)




1,179




(938)


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



—




—




—




224




10,723




—




11,021


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



41,568




41,536




39,253




37,697




36,183




83,104




74,790


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


$

309,290



$

306,918



$

307,027



$

299,388



$

294,969



$

616,208



$

571,820


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



44.80

%



45.71

%



46.10

%



46.87

%



51.82

%



45.26

%



50.49

%























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


$

138,565



$

140,301



$

141,545



$

140,338



$

152,842



$

278,866



$

288,690


Less: merger related expenses



—




—




—




63




4,381




—




4,381


Less: FDIC special assessment



—




—




—




—




3,554




—




3,554


Noninterest expense excluding merger related expenses and
FDIC special assessment


$

138,565



$

140,301



$

141,545



$

140,275



$

144,907



$

278,866



$

280,755
























Net interest income


$

267,722



$

265,382



$

267,774



$

261,691



$

258,786



$

533,104



$

497,030


Noninterest income



42,982




41,301




39,837




41,099




46,003




84,283




84,873


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



1,414




(235)




584




3,178




(903)




1,179




(938)


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



—




—




—




224




10,723




—




11,021


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



41,568




41,536




39,253




37,697




36,183




83,104




74,790


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


$

309,290



$

306,918



$

307,027



$

299,388



$

294,969



$

616,208



$

571,820


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



44.80

%



45.71

%



46.10

%



46.85

%



49.13

%



45.26

%



49.10

%

 

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SOURCE Prosperity Bancshares, Inc.