PROSPERITY BANCSHARES, INC.® REPORTS THIRD QUARTER 2025 EARNINGS

Rhea-AI Summary

Prosperity Bancshares (NYSE: PB) reported Q3 2025 net income of $137.6 million and diluted EPS of $1.45. For the nine months ended September 30, 2025, net income was $402.9 million, up 15.4%, and diluted EPS was $4.23, up 14.9% year‑over‑year.

Key operating metrics: net interest margin rose 29 bps to 3.24% in Q3; deposits increased by $308.7 million during the quarter; total assets were $38.33 billion at September 30, 2025; nonperforming assets were 0.36% of quarterly average interest‑earning assets; allowance for credit losses was $377.3 million.

Corporate actions: Board raised the Q4 2025 dividend to $0.60 per share (3.45% increase) and announced a definitive merger agreement to acquire Southwest Bancshares and a pending acquisition of American Bank Holding.

Positive

• Nine‑month net income +15.4% to $402.9M
• Diluted EPS for nine months +14.9% to $4.23
• Q3 net interest margin improved 29 bps to 3.24%
• Q4 dividend increased to $0.60 per share
• Definitive merger signed with Southwest Bancshares (4,062,520 shares to be issued)

Negative

• Nonperforming assets rose to 0.36% of quarterly average interest‑earning assets
• Q3 net charge‑offs increased to $6.5M from $3.0M in Q2
• Loans decreased $353.1M year‑over‑year to $22.028B

• Board approved increase in dividend of 3.45% to $0.60 per share for fourth quarter 2025, representing the 22nd consecutive annual increase, with a compound annual growth rate of 10.7%
• Net income of $137.6 million and earnings per share (diluted) of $1.45 for third quarter 2025
• Net income of $402.9 million, increased 15.4%, and earnings per share (diluted) of $4.23, increased 14.9%, for the nine months ended September 30, 2025 compared with the same period 2024
• Third quarter net interest margin increased 29 basis points to 3.24% compared to 2.95% for third quarter 2024
• Deposits increased $308.7 million during third quarter 2025, or 4.5% annualized
• Noninterest-bearing deposits of $9.5 billion, representing 34.3% of total deposits
• Borrowings decreased $500.0 million during third quarter 2025
• Allowance for credit losses on loans and on off-balance sheet credit exposure of $377.3 million and allowance for credit losses on loans to total loans, excluding Warehouse Purchase Program, of 1.64%⁽¹⁾
• Nonperforming assets remain low at 0.36% of third quarter average interest-earning assets
• Return (annualized) on third quarter average assets of 1.44% and average tangible common equity of 13.43%⁽¹⁾
• Announced the signing of a definitive merger agreement with Southwest Bancshares, Inc. headquartered in San Antonio, Texas
• Pending acquisition of American Bank Holding Corporation, Corpus Christi, Texas

HOUSTON, Oct. 29, 2025 /PRNewswire/ -- Prosperity Bancshares, Inc.^® (NYSE: PB) ("Prosperity Bancshares"), the parent company of Prosperity Bank^® (collectively, "Prosperity"), reported net income of $137.6 million for the quarter ended September 30, 2025, compared with $127.3 million for the same period in 2024. Net income per diluted common share was $1.45 for the quarter ended September 30, 2025, compared with $1.34 for the same period in 2024. The annualized return on third quarter average assets was 1.44%. Additionally, deposits increased $308.7 million during the third quarter of 2025. Nonperforming assets remain low at 0.36% of third quarter average interest-earning assets.

"In the third quarter we signed a definitive merger agreement with Southwest Bancshares, Inc., the parent company of Texas Partners Bank headquartered in San Antonio, Texas.  We are excited about this transaction as it significantly expands our San Antonio metro footprint with 4 additional branches and increased deposit market share, bolsters our presence in the Texas Hill Country and adds an experienced C&I lending team," said David Zalman, Prosperity's Senior Chairman and Chief Executive Officer.

"I would also be remiss not to mention how excited we are about our pending merger with American Bank Holding Corporation in Corpus Christi, Texas. The combination will strengthen our presence and operations in South Texas and surrounding areas and enhance our presence in Central Texas, including San Antonio," continued Zalman.

"I am also pleased to announce that the Board of Directors approved increasing the fourth quarter 2025 dividend to $0.60 per share from $0.58 per share that was paid in the prior four quarters. The increase reflects the continued confidence the Board has in our company and our markets. The compound annual growth rate in dividends declared from 2003 to 2025 was 10.7%. We continue to share our success with our shareholders through the payment of dividends and opportunistic stock repurchases, while also continuing to grow our capital," stated Zalman.

"As of October 2025, Texas boasts one of the world's strongest and most diverse economies, ranking as the 8th largest globally with a GDP of approximately $2.77 trillion in 2024. The state produces about 9.3% of U.S. GDP and continues to outpace national growth in many metrics. Although the economy is showing some signs of moderation, influenced by factors such as tariffs and immigration policies, we believe Texas remains the best state for business with a pro-business attitude and no state income tax. This is evidenced by major corporations continuing to move their operations to Texas and Oklahoma," added Zalman.

"As of October 2025, Oklahoma's economy is demonstrating resilience and modest growth, outpacing national averages in key areas such as unemployment and population expansion despite broader U.S. slowdowns from tariffs and policy uncertainties," continued Zalman.

"I would like to thank our customers, associates, directors and shareholders for their hard work and loyalty.  Our fundamentals and resolve have never been stronger to continue to build this successful company," concluded Zalman.

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

Net income was $137.6 million⁽²⁾ for the three months ended September 30, 2025, compared with $127.3 million⁽³⁾ for the same period in 2024, an increase of $10.3 million or 8.1%. Net income per diluted common share was $1.45 for the three months ended September 30, 2025, compared with $1.34 for the same period in 2024, an increase of 8.2%. The changes were primarily due to an increase in net interest income, partially offset by an increase in provision for income taxes. On a linked quarter basis, net income was $137.6 million⁽²⁾ for the three months ended September 30, 2025, compared with $135.2 million⁽⁴⁾ for the three months ended June 30, 2025, an increase of $2.4 million or 1.8%. Net income per diluted common share was $1.45 for the three months ended September 30, 2025, compared with $1.42 for the three months ended June 30, 2025. Annualized returns on average assets, average common equity and average tangible common equity for the three months ended September 30, 2025, were 1.44%, 7.18% and 13.43%⁽¹⁾, respectively. Prosperity's efficiency ratio (excluding net gains and losses on the sale, write-down or write-up of assets and securities) was 44.06%⁽¹⁾ for the three months ended September 30, 2025.

Net interest income before provision for credit losses was $273.4 million for the three months ended September 30, 2025, compared with $261.7 million for the same period in 2024, an increase of $11.7 million or 4.5%. 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 balances and average rates on federal funds sold and other earning assets, a decrease in the average balances and average rates on loans and a decrease in loan discount accretion of $2.0 million. Net interest income before provision for credit losses increased $5.7 million or 2.1% to $273.4 million for the three months ended September 30, 2025, compared with $267.7 million for the three months ended June 30, 2025, primarily due to one extra day during the current quarter and a decrease in the average balances for other borrowings.

The net interest margin on a tax equivalent basis was 3.24% for the three months ended September 30, 2025, compared with 2.95% 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 balances and average rates on federal funds sold and other earning assets, a decrease in the average balances and average rates on loans and a decrease in loan discount accretion of $2.0 million. The net interest margin on a tax equivalent basis was 3.24% for the three months ended September 30, 2025, compared with 3.18% for the three months ended June 30, 2025, primarily due to a decrease in the average balances for other borrowings.

Noninterest income was $41.2 million for the three months ended September 30, 2025, compared with $41.1 million for the same period in 2024. Noninterest income was $41.2 million for the three months ended September 30, 2025, compared with $43.0 million for the three months ended June 30, 2025, a decrease of $1.7 million. The change was primarily due to a decrease in net gain on sale or write-down of assets.

Noninterest expense was $138.6 million for the three months ended September 30, 2025, compared with $140.3 million for the same period in 2024, a decrease of $1.7 million, primarily due to a decrease in other noninterest expense. Noninterest expense was $138.6 million for the three months ended September 30, 2025, and the three months ended June 30, 2025.

Results of Operations for the Nine Months Ended September 30, 2025

For the nine months ended September 30, 2025, net income was $402.9 million⁽⁵⁾ compared with $349.3 million⁽⁶⁾ for the same period in 2024, an increase of $53.6 million or 15.4%. Net income per diluted common share was $4.23 for the nine months ended September 30, 2025, compared with $3.68 for the same period in 2024, an increase of 14.9%. 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 in net gain on sale or write-up of securities. Returns on average assets, average common equity and average tangible common equity for the nine months ended September 30, 2025, were 1.40%, 7.08% and 13.36%⁽¹⁾, respectively.

Net interest income before provision for credit losses for the nine months ended September 30, 2025, was $806.5 million compared with $758.7 million for the same period in 2024, an increase of $47.8 million or 6.3%. 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 on investment securities, a decrease in the average balances and average rates on federal funds sold and other earning assets, a decrease in loan discount accretion of $4.6 million and a decrease in the average balances on loans.

The net interest margin on a tax equivalent basis for the nine months ended September 30, 2025, was 3.19% compared with 2.86% 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 balances on investment securities, a decrease in the average balances and average rates on federal funds sold and other earning assets, a decrease in loan discount accretion of $4.6 million and a decrease in the average balances on loans.

Noninterest income was $125.5 million for the nine months ended September 30, 2025, compared with $126.0 million for the same period in 2024.

Noninterest expense was $417.5 million for the nine months ended September 30, 2025, compared with $429.0 million for the same period in 2024, a decrease of $11.5 million or 2.7%, primarily due to decreases in regulatory assessment and FDIC insurance, merger related expenses and other noninterest expense.

Balance Sheet Information

Prosperity had $38.330 billion in total assets at September 30, 2025, compared with $38.417 billion at June 30, 2025, and $40.115 billion at September 30, 2024. The decrease was primarily due to the reduction in borrowings by $1.50 billion from September 30, 2024 to September 30, 2025.

Loans were $22.028 billion at September 30, 2025, a decrease of $169.6 million from $22.197 billion at June 30, 2025. Loans decreased $353.1 million from $22.381 billion at September 30, 2024.

Loans, excluding Warehouse Purchase Program loans, were $20.750 billion at September 30, 2025, compared with $20.910 billion at June 30, 2025, a decrease of $160.4 million, and compared with $21.152 billion at September 30, 2024, a decrease of $402.6 million.

Deposits were $27.782 billion at September 30, 2025, an increase of $308.7 million or 1.1% from $27.473 billion at June 30, 2025. Deposits decreased $305.5 million from $28.088 billion at September 30, 2024.

Asset Quality

Nonperforming assets totaled $119.6 million or 0.36% of quarterly average interest-earning assets at September 30, 2025, compared with $110.5 million or 0.33% of quarterly average interest-earning assets at June 30, 2025, and $89.9 million or 0.25% of quarterly average interest-earning assets at September 30, 2024, with a significant portion of the balance for each period attributable to acquired loans.

The allowance for credit losses on loans and off-balance sheet credit exposures was $377.3 million at September 30, 2025, compared with $383.7 million at June 30, 2025, and $392.0 million at September 30, 2024. There was no provision for credit losses for the three and nine months ended September 30, 2025, compared to no provision for credit losses for the three months ended September 30, 2024, and a $9.1 million provision for credit losses for the nine months ended September 30, 2024.

The allowance for credit losses on loans was $339.6 million or 1.54% of total loans at September 30, 2025, compared with $346.1 million or 1.56% of total loans at June 30, 2025, and $354.4 million or 1.58% of total loans at September 30, 2024 . Excluding Warehouse Purchase Program loans, the allowance for credit losses on loans to total loans was 1.64%⁽¹⁾ at September 30, 2025, compared with 1.66%⁽¹⁾ at June 30, 2025, and 1.68%⁽¹⁾ at September 30, 2024.

Net charge-offs were $6.5 million for the three months ended September 30, 2025, compared with net charge-offs of $3.0 million for the three months ended June 30, 2025, and net charge-offs of $5.5 million for the three months ended September 30, 2024. For the three months ended September 30, 2025, $4.5 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 $12.2 million for the nine months ended September 30, 2025, compared with net charge-offs of $12.0 million for the nine months ended September 30, 2024. For the nine months ended September 30, 2025, $15.0 million of reserves on resolved PCD loans without any related charge-offs were released to the general reserve.

Dividend

Prosperity Bancshares declared a fourth quarter 2025 cash dividend of $0.60 per share to be paid on January 2, 2026, to all shareholders of record as of December 15, 2025, an increase of $0.02 per share, or 3.45%, from the prior quarter.

Stock Repurchase Program

On January 21, 2025, Prosperity Bancshares announced a stock repurchase program under which up to 5%, or approximately 4.8 million shares, of its outstanding common stock may be acquired over a one-year period expiring on January 21, 2026, at the discretion of management. Under its 2025 stock repurchase program, Prosperity Bancshares repurchased 299,318 shares of its common stock at an average weighted price of $66.62 per share during the three and nine months ended September 30, 2025.

Agreement to Acquire Southwest Bancshares, Inc.

On October 1, 2025, Prosperity Bancshares and Southwest Bancshares, Inc. ("Southwest) jointly announced the signing of a definitive merger agreement (the "Prosperity/Southwest Merger Agreement") whereby Southwest, a Texas corporation and bank holding company of Texas Partners Bank ("Texas Partners"), will merge with and into Prosperity Bancshares and Texas Partners will merge with and into Prosperity Bank. Texas Partners operates 11 banking offices in Central Texas including its main office in San Antonio, and banking offices in the San Antonio area, Austin and the Hill Country. As of June 30, 2025, Southwest, on a consolidated basis, reported total assets of $2.354 billion, total loans of $1.890 billion and total deposits of $2.129 billion.

Under the terms and subject to the conditions of the Prosperity/Southwest Merger Agreement, Prosperity Bancshares will issue 4,062,520 shares of Prosperity Bancshares common stock for all outstanding shares of Southwest common stock and restricted stock awards, subject to certain potential adjustments. Southwest warrants and in-the-money Southwest stock options that are outstanding at the closing will be converted into cash payments based on the value of the merger consideration (less the applicable exercise price), as calculated pursuant to the terms of the Prosperity/Southwest Merger Agreement. Based on Prosperity Bancshares's closing price of $65.97 on September 29, 2025, the total consideration was valued at approximately $268.9 million. The transaction is subject to customary closing conditions, including the receipt of regulatory approvals and approval by the shareholders of Southwest. The transaction is expected to close during the first quarter of 2026.

Pending Acquisition of 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 "Prosperity/American 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 June 30, 2025, American, on a consolidated basis, reported total assets of $2.553 billion, total loans of $1.798 billion and total deposits of $2.293 billion.

Under the terms and subject to the conditions of the Prosperity/American 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, October 29, 2025, at 11:30 a.m. Eastern Time (10:30 a.m. Central Time) to discuss Prosperity's third 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 2818776.

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 September 30, 2025, Prosperity Bancshares, Inc.^® is a $38.330 billion Houston, 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, and the remarks by Prosperity's management on the conference call may contain, statements regarding the proposed transactions between (1) Prosperity Bancshares, Inc. ("Prosperity") and Southwest Bancshares, Inc. ("Southwest") and (2) Prosperity and American Bank Holding Corporation ("American"); future financial and operating results; benefits and synergies of the transactions; future opportunities for Prosperity; the issuances of common stock of Prosperity contemplated by the Agreement and Plan of Merger by and between Prosperity and Southwest (the "Prosperity/Southwest Merger Agreement") and the Agreement and Plan of Merger by and between Prosperity and American (the "Prosperity/American Merger Agreement" and, together with the Prosperity/Southwest Merger Agreement, the "Merger Agreements"); in connection with the proposed transaction between Prosperity and Southwest, the expected filing by Prosperity with the Securities and Exchange Commission (the "SEC") of a registration statement on Form S-4 (the "Prosperity/Southwest Registration Statement") and a prospectus of Prosperity and a proxy statement of Southwest to be included therein (the "Prosperity/Southwest Proxy Statement/Prospectus"); in connection with the proposed transaction between Prosperity and American, a registration statement on Form S-4 (the "Prosperity/American Registration Statement" and, together with the Prosperity/Southwest Registration Statement, the "Registration Statements") and a preliminary prospectus of Prosperity and a proxy statement of American included therein (the "Prosperity/American Proxy Statement/ Prospectus" and, together with the Southwest Proxy Statement/ Prospectus, the "Proxy Statement/ Prospectuses"), which registration statement was filed with the SEC on September 17, 2025, and amended on September 30, 2025; the expected timing of the closing of the proposed transactions; the ability of the parties to complete the proposed transactions 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 transactions between (1) Prosperity and Southwest and (2) Prosperity and American 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, 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); 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, Southwest or 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 transactions may not be fully realized or may take longer than anticipated to be realized, (2) disruption to Prosperity's, Southwest's and American's businesses as a result of the announcements and pendency of the transactions, (3) the risk that the integration of Southwest's and/or American's businesses 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 Southwest's and/or 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 Southwest and/or American, (5) the ability by each of Prosperity, Southwest and/or American to obtain required governmental approvals of the transactions 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 transactions or adversely affect the expected benefits of the transactions, (6) reputational risk and the reaction of each company's customers, suppliers, employees or other business partners to the transactions, (7) the failure of the closing conditions in the applicable Merger Agreements to be satisfied, or any unexpected delay in closing the transactions or the occurrence of any event, change or other circumstances that could give rise to the termination of the applicable Merger Agreements, (8) the dilution caused by the issuances of additional shares of Prosperity's common stock in the transactions, (9) the possibility that the transactions 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 any of the transactions, or against Southwest or 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, Southwest 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, 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 Transactions and Where to Find It

Prosperity intends to file with the SEC the Prosperity/Southwest Registration Statement on Form S-4 to register the shares of Prosperity common stock to be issued to the shareholders of Southwest in connection with Prosperity's and Southwest's proposed transaction. The Prosperity/Southwest Registration Statement will include the Prosperity/Southwest Proxy Statement/Prospectus which will be sent to the shareholders of Southwest in connection with the proposed transaction. This communication is not a substitute for the Prosperity/Southwest Proxy Statement/Prospectus or any other document which Prosperity may file with the SEC. In connection with Prosperity's and American's proposed transaction, Prosperity has filed with the SEC on September 17, 2025 the Prosperity/American Registration Statement on Form S-4, as amended on September 30, 2025, (the "Amended Prosperity/American Registration Statement") (which Amended Prosperity/American Registration Statement was declared effective by the SEC on September 30, 2025), to register the shares of Prosperity common stock to be issued to the shareholders of American in connection with Prosperity's and American's proposed transaction. The Prosperity/American Proxy Statement/Prospectus will be delivered to shareholders of American. Prosperity may also file other documents with the SEC regarding the proposed transaction. This communication is not a substitute for the Prosperity/American Proxy Statement/Prospectus or Amended Prosperity/American Registration Statement or any other document which Prosperity may file with the SEC. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE APPLICABLE REGISTRATION STATEMENT ON FORM S-4, THE APPLICABLE PROXY STATEMENT/PROSPECTUS INCLUDED WITHIN THE APPLICABLE REGISTRATION STATEMENT ON FORM S-4 AND ANY OTHER RELEVANT DOCUMENTS TO BE FILED WITH THE SEC IN CONNECTION WITH THE PROPOSED TRANSACTIONS OR INCORPORATED BY REFERENCE INTO THE APPLICABLE PROXY/STATEMENT PROSPECTUS, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT PROSPERITY, SOUTHWEST, AMERICAN AND THE APPLICABLE PROPOSED TRANSACTIONS. 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, free of charge, from Prosperity at http://www.prosperitybankusa.com. Copies of the Prosperity/American Proxy Statement/Prospectus (and the Prosperity/Southwest Proxy Statement/Prospectus, when it becomes available), can also be obtained, 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 with respect to the Prosperity/American Proxy Statement/Prospectus, to American Bank Holding Corporation, 800 North Shoreline Boulevard, Corpus Christi, Texas 78401, Attn: Stephen Raffaele, (512) 306-5550 or, with respect to the Prosperity/Southwest Proxy Statement/Prospectus, Southwest Bancshares, Inc., 1900 NW Loop 410, San Antonio, Texas 78213, Attention: Investor Relations, (210) 807-5511, as applicable.

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 $2.6 million, net of tax, primarily comprised of loan discount accretion of $2.9 million for the three months ended September 30, 2025.
(3)	Includes purchase accounting adjustments of $4.3 million, net of tax, primarily comprised of loan discount accretion of $4.8 million for the three months ended September 30, 2024.
(4)	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.
(5)	Includes purchase accounting adjustments of $8.5 million, net of tax, primarily comprised of loan discount accretion of $9.3 million for the nine months ended September 30, 2025.
(6)	Includes purchase accounting adjustments of $12.4 million, net of tax, primarily comprised of loan discount accretion of $13.9 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 $11.2 million for the nine months ended September 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		110th Street		Owasso
Frisco-West		Palestine		Needville		Avenue Q
Garland		Rusk		Rosenberg		Milwaukee

 

 

Prosperity Bancshares, Inc.®
Financial Highlights (Unaudited)
(In thousands)
		Sep 30, 2025				Jun 30, 2025				Mar 31, 2025				Dec 31, 2024				Sep 30, 2024
Balance Sheet Data (at period end)
Loans held for sale		$	11,297			$	6,004			$	9,764			$	10,690			$	6,113
Loans held for investment			20,738,294				20,903,944				20,909,913				21,057,616				21,146,033
Loans held for investment - Warehouse Purchase Program			1,278,178				1,287,440				1,057,893				1,080,903				1,228,706
Total loans			22,027,769				22,197,388				21,977,570				22,149,209				22,380,852
Investment securities(A)			10,232,462				10,608,104				10,792,731				11,094,424				11,300,756
Federal funds sold			210				197				221				292				208
Allowance for credit losses on loans			(339,626)				(346,084)				(349,101)				(351,805)				(354,397)
Cash and due from banks			1,766,115				1,304,993				1,694,637				1,972,175				2,209,863
Goodwill			3,503,127				3,503,127				3,503,127				3,503,129				3,504,388
Core deposit intangibles, net			55,194				58,796				62,406				66,047				70,178
Other real estate owned			13,750				7,874				8,012				5,701				5,757
Fixed assets, net			378,776				374,602				373,273				371,238				373,812
Other assets			692,692				708,355				701,799				756,328				623,903
Total assets		$	38,330,469			$	38,417,352			$	38,764,675			$	39,566,738			$	40,115,320
Noninterest-bearing deposits		$	9,522,028			$	9,426,657			$	9,675,915			$	9,798,438			$	9,811,361
Interest-bearing deposits			18,260,066				18,046,754				18,350,884				18,582,900				18,276,250
Total deposits			27,782,094				27,473,411				28,026,799				28,381,338				28,087,611
Other borrowings			2,400,000				2,900,000				2,700,000				3,200,000				3,900,000
Securities sold under repurchase agreements			185,797				183,572				216,086				221,913				228,896
Allowance for credit losses on off-balance sheet credit exposures			37,646				37,646				37,646				37,646				37,646
Other liabilities			259,994				222,987				267,083				287,346				499,918
Total liabilities			30,665,531				30,817,616				31,247,614				32,128,243				32,754,071
Shareholders' equity(B)			7,664,938				7,599,736				7,517,061				7,438,495				7,361,249
Total liabilities and equity		$	38,330,469			$	38,417,352			$	38,764,675			$	39,566,738			$	40,115,320

(A)	Includes $(1,987), $(1,657), $(1,374), $(2,056) and $(1,070) in unrealized losses on available for sale securities for the quarterly periods ended September 30, 2025, June 30, 2025, March 31, 2025, December 31, 2024 and September 30, 2024 respectively.
(B)	Includes $(1,570), $(1,309), $(1,085), $(1,624) and $(845) in after-tax unrealized losses on available for sale securities for the quarterly periods ended September 30, 2025, June 30, 2025, March 31, 2025, December 31, 2024 and September 30, 2024, respectively.

 

Prosperity Bancshares, Inc.®
Financial Highlights (Unaudited)
(In thousands)
		Three Months Ended																				Year-to-Date
		Sep 30, 2025				Jun 30, 2025				Mar 31, 2025				Dec 31, 2024				Sep 30, 2024				Sep 30, 2025				Sep 30, 2024
Income Statement Data
Interest income:
Loans		$	329,445			$	325,490			$	319,023			$	333,055			$	337,451			$	973,958			$	980,107
Securities(C)			58,207				57,836				57,886				58,260				59,617				173,929				188,466
Federal funds sold and other earning assets			10,455				9,438				15,896				19,630				20,835				35,789				44,195
Total interest income			398,107				392,764				392,805				410,945				417,903				1,183,676				1,212,768
Interest expense:
Deposits			95,965				93,790				95,597				102,050				107,758				285,352				306,574
Other borrowings			27,613				30,101				30,492				39,620				46,792				88,206				142,020
Securities sold under repurchase agreements			1,094				1,151				1,334				1,501				1,662				3,579				5,453
Total interest expense			124,672				125,042				127,423				143,171				156,212				377,137				454,047
Net interest income			273,435				267,722				265,382				267,774				261,691				806,539				758,721
Provision for credit losses			—				—				—				—				—				—				9,066
Net interest income after provision for credit losses			273,435				267,722				265,382				267,774				261,691				806,539				749,655
Noninterest income:
Nonsufficient funds (NSF) fees			9,805				8,885				9,147				9,960				9,016				27,837				25,457
Credit card, debit card and ATM card income			9,446				9,761				8,739				9,443				9,620				27,946				27,865
Service charges on deposit accounts			7,317				7,645				7,408				6,992				6,664				22,370				19,506
Trust income			3,526				3,859				3,601				3,514				3,479				10,986				11,236
Mortgage income			931				965				1,009				779				962				2,905				2,317
Brokerage income			1,328				1,225				1,262				1,063				1,258				3,815				3,679
Bank owned life insurance income			2,111				1,985				2,115				2,020				2,028				6,211				5,960
Net gain (loss) on sale or write-down of assets			3				1,414				(235)				584				3,178				1,182				2,240
Net gain on sale or write-up of securities			—				—				—				—				224				—				11,245
Other noninterest income			6,771				7,243				8,255				5,482				4,670				22,269				16,467
Total noninterest income			41,238				42,982				41,301				39,837				41,099				125,521				125,972
Noninterest expense:
Salaries and benefits			87,949				87,296				89,476				88,631				88,367				264,721				263,722
Net occupancy and equipment			9,395				9,168				9,146				8,957				9,291				27,709				26,829
Credit and debit card, data processing and software amortization			12,515				12,056				11,422				12,342				11,985				35,993				34,958
Regulatory assessments and FDIC insurance			5,198				5,508				5,789				5,789				5,726				16,495				21,581
Core deposit intangibles amortization			3,602				3,610				3,641				4,131				4,146				10,853				11,539
Depreciation			4,966				4,779				4,774				4,791				4,741				14,519				14,263
Communications			3,480				3,507				3,473				3,450				3,360				10,460				10,247
Other real estate expense			314				204				140				255				12				658				268
Net (gain) loss on sale or write-down of other real estate			(81)				(222)				(30)				(610)				(97)				(333)				(204)
Merger related expenses			62				—				—				—				63				62				4,444
Other noninterest expense			11,235				12,659				12,470				13,809				12,744				36,364				41,381
Total noninterest expense			138,635				138,565				140,301				141,545				140,338				417,501				429,028
Income before income taxes			176,038				172,139				166,382				166,066				162,452				514,559				446,599
Provision for income taxes			38,482				36,984				36,157				35,990				35,170				111,623				97,289
Net income available to common shareholders		$	137,556			$	135,155			$	130,225			$	130,076			$	127,282			$	402,936			$	349,310

(C)	Interest income on securities was reduced by net premium amortization of $2,877, $4,926, $5,027, $5,609 and $5,574 for the three months ended September 30, 2025, June 30, 2025, March 31, 2025, December 31, 2024 and September 30, 2024, respectively, and $12,830 and $17,227 for the nine months ended September 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
		Sep 30, 2025				Jun 30, 2025				Mar 31, 2025				Dec 31, 2024				Sep 30, 2024				Sep 30, 2025				Sep 30, 2024
Profitability
Net income (D) (E)		$	137,556			$	135,155			$	130,225			$	130,076			$	127,282			$	402,936			$	349,310
Basic earnings per share		$	1.45			$	1.42			$	1.37			$	1.37			$	1.34			$	4.23			$	3.68
Diluted earnings per share		$	1.45			$	1.42			$	1.37			$	1.37			$	1.34			$	4.23			$	3.68
Return on average assets (F)(J)			1.44	%			1.41	%			1.34	%			1.31	%			1.28	%			1.40	%			1.16	%
Return on average common equity (F)(J)			7.18	%			7.13	%			6.94	%			7.00	%			6.93	%			7.08	%			6.40	%
Return on average tangible common equity (F) (G)(J)			13.43	%			13.44	%			13.23	%			13.50	%			13.50	%			13.36	%			12.43	%
Tax equivalent net interest margin (D) (E) (H)			3.24	%			3.18	%			3.14	%			3.05	%			2.95	%			3.19	%			2.86	%
Efficiency ratio (G) (I)(K)			44.06	%			44.80	%			45.71	%			46.10	%			46.87	%			44.85	%			49.25	%
Liquidity and Capital Ratios
Equity to assets			20.00	%			19.78	%			19.39	%			18.80	%			18.35	%			20.00	%			18.35	%
Common equity tier 1 capital			17.53	%			17.10	%			16.92	%			16.42	%			15.84	%			17.53	%			15.84	%
Tier 1 risk-based capital			17.53	%			17.10	%			16.92	%			16.42	%			15.84	%			17.53	%			15.84	%
Total risk-based capital			18.78	%			18.35	%			18.17	%			17.67	%			17.09	%			18.78	%			17.09	%
Tier 1 leverage capital			11.90	%			11.62	%			11.20	%			10.82	%			10.52	%			11.90	%			10.52	%
Period end tangible equity to period end tangible assets (G)			11.81	%			11.58	%			11.23	%			10.75	%			10.36	%			11.81	%			10.36	%
Other Data
Weighted-average shares used in computing earnings per common share
Basic			95,093				95,277				95,266				95,264				95,261				95,211				94,912
Diluted			95,093				95,277				95,266				95,264				95,261				95,211				94,912
Period end shares outstanding			94,993				95,277				95,258				95,275				95,261				94,993				95,261
Cash dividends paid per common share		$	0.58			$	0.58			$	0.58			$	0.58			$	0.56			$	1.74			$	1.68
Book value per common share		$	80.69			$	79.76			$	78.91			$	78.07			$	77.27			$	80.69			$	77.27
Tangible book value per common share (G)		$	43.23			$	42.38			$	41.48			$	40.61			$	39.75			$	43.23			$	39.75
Common Stock Market Price
High		$	75.44			$	74.56			$	82.75			$	86.76			$	74.87			$	82.75			$	74.87
Low		$	64.27			$	61.57			$	68.96			$	68.94			$	58.66			$	61.57			$	57.16
Period end closing price		$	66.35			$	70.24			$	71.37			$	75.35			$	72.07			$	66.35			$	72.07
Employees – FTE (excluding overtime)			3,937				3,921				3,898				3,916				3,896				3,937				3,896
Number of banking centers			283				283				284				283				287				283				287

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

	Three Months Ended										Year-to-Date
	Sep 30, 2025		Jun 30, 2025		Mar 31, 2025		Dec 31, 2024		Sep 30, 2024		Sep 30, 2025		Sep 30, 2024
Loan discount accretion
Non-PCD	$2,242		$2,486		$2,615		$2,761		$3,616		$7,343		$9,725
PCD	$613		$638		$677		$850		$1,212		$1,928		$4,154
Securities net accretion	$395		$409		$705		$528		$555		$1,509		$1,680
Time deposits amortization	$(1)		$(2)		$(9)		$(21)		$(40)		$(12)		$(133)

(E)	Using effective tax rate of 21.9%, 21.5%, 21.7%, 21.7% and 21.6% for the three months ended September 30, 2025, June 30, 2025, March 31, 2025, December 31, 2024 and September 30, 2024, respectively, and 21.7% and 21.8% for the nine months ended September 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
		Sep 30, 2025										Jun 30, 2025										Sep 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		$	8,371			$	140			6.64 %		$	9,813			$	166			6.79 %		$	7,913			$	137			6.89 %
Loans held for investment			20,851,896				309,949			5.90 %			20,907,400				306,671			5.88 %			21,107,139				316,939			5.97 %
Loans held for investment - Warehouse Purchase Program			1,217,579				19,356			6.31 %			1,179,307				18,653			6.34 %			1,114,681				20,375			7.27 %
Total loans			22,077,846				329,445			5.92 %			22,096,520				325,490			5.91 %			22,229,733				337,451			6.04 %
Investment securities			10,530,807				58,207			2.19 %	(M)		10,867,856				57,836			2.13 %	(M)		11,612,193				59,617			2.04 %	(M)
Federal funds sold and other earning assets			934,318				10,455			4.44 %			841,933				9,438			4.50 %			1,531,788				20,835			5.41 %
Total interest-earning assets			33,542,971				398,107			4.71 %			33,806,309				392,764			4.66 %			35,373,714				417,903			4.70 %
Allowance for credit losses on loans			(343,872)										(348,310)										(358,237)
Noninterest-earning assets			4,930,764										4,933,215										4,873,725
Total assets		$	38,129,863									$	38,391,214									$	39,889,202
Interest-bearing liabilities:
Interest-bearing demand deposits		$	4,656,452			$	8,951			0.76 %		$	4,807,864			$	8,859			0.74 %		$	4,774,975			$	9,251			0.77 %
Savings and money market deposits			8,977,585				46,934			2.07 %			8,944,897				45,796			2.05 %			8,908,315				49,824			2.23 %
Certificates and other time deposits			4,422,996				40,080			3.60 %			4,366,510				39,135			3.59 %			4,564,232				48,683			4.24 %
Other borrowings			2,480,435				27,613			4.42 %			2,717,583				30,101			4.44 %			3,900,000				46,792			4.77 %
Securities sold under repurchase agreements			187,462				1,094			2.32 %			194,577				1,151			2.37 %			242,813				1,662			2.72 %
Total interest-bearing liabilities			20,724,930				124,672			2.39 %	(N)		21,031,431				125,042			2.38 %	(N)		22,390,335				156,212			2.78 %	(N)
Noninterest-bearing liabilities:
Noninterest-bearing demand deposits			9,451,153										9,508,845										9,680,785
Allowance for credit losses on off- balance sheet credit exposures			37,646										37,646										37,646
Other liabilities			258,156										227,002										433,171
Total liabilities			30,471,885										30,804,924										32,541,937
Shareholders' equity			7,657,978										7,586,290										7,347,265
Total liabilities and shareholders' equity		$	38,129,863									$	38,391,214									$	39,889,202
Net interest income and margin						$	273,435			3.23 %						$	267,722			3.18 %						$	261,691			2.94 %
Non-GAAP to GAAP reconciliation:
Tax equivalent adjustment							807										574										808
Net interest income and margin      (tax equivalent basis)						$	274,242			3.24 %						$	268,296			3.18 %						$	262,499			2.95 %

(L)	Annualized and based on an actual 365-day or 366-day basis.
(M)	Yield on securities was impacted by net premium amortization of $2,877, $4,926, and $5,574 for the three months ended September 30, 2025, June 30, 2025 and September 30, 2024, respectively.
(N)	Total cost of funds, including noninterest bearing deposits, was 1.64%, 1.64% and 1.94% for the three months ended September 30, 2025, June 30, 2025 and September 30, 2024, respectively.

 

Prosperity Bancshares, Inc.®
Financial Highlights (Unaudited)
(Dollars in thousands)
YIELD ANALYSIS		Year-to-Date
		Sep 30, 2025										Sep 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		$	8,588			$	433			6.74 %		$	7,278			$	378			6.94 %
Loans held for investment			20,905,781				921,688			5.89 %			21,312,440				928,973			5.82 %
Loans held for investment - Warehouse Purchase Program			1,092,241				51,837			6.35 %			918,172				50,756			7.38 %
Total loans			22,006,610				973,958			5.92 %			22,237,890				980,107			5.89 %
Investment securities			10,803,572				173,929			2.15 %	(P)		12,161,391				188,466			2.07 %	(P)
Federal funds sold and other earning assets			1,071,293				35,789			4.47 %			1,153,335				44,195			5.12 %
Total interest-earning assets			33,881,475				1,183,676			4.67 %			35,552,616				1,212,768			4.56 %
Allowance for credit losses on loans			(347,607)										(341,659)
Noninterest-earning assets			4,955,209										4,823,938
Total assets		$	38,489,077									$	40,034,895
Interest-bearing liabilities:
Interest-bearing demand deposits		$	4,894,289			$	26,829			0.73 %		$	4,947,514			$	26,807			0.72 %
Savings and money market deposits			8,976,481				138,375			2.06 %			9,060,992				147,228			2.17 %
Certificates and other time deposits			4,405,329				120,148			3.65 %			4,356,700				132,539			4.06 %
Other borrowings			2,657,143				88,206			4.44 %			3,960,821				142,020			4.79 %
Securities sold under repurchase agreements			199,883				3,579			2.39 %			265,878				5,453			2.74 %
Total interest-bearing liabilities			21,133,125				377,137			2.39 %	(Q)		22,591,905				454,047			2.68 %	(Q)
Noninterest-bearing liabilities:
Noninterest-bearing demand deposits			9,487,984										9,759,927
Allowance for credit losses on off-balance sheet credit exposures			37,646										36,994
Other liabilities			246,408										372,060
Total liabilities			30,905,163										32,760,886
Shareholders' equity			7,583,914										7,274,009
Total liabilities and shareholders' equity		$	38,489,077									$	40,034,895
Net interest income and margin						$	806,539			3.18 %						$	758,721			2.85 %
Non-GAAP to GAAP reconciliation:
Tax equivalent adjustment							1,671										2,416
Net interest income and margin (tax equivalent basis)						$	808,210			3.19 %						$	761,137			2.86 %

(O)	Based on an actual 365-day or 366-day basis.
(P)	Yield on securities was impacted by net premium amortization of $12,830 and $17,227 for the nine months ended September 30, 2025 and 2024, respectively.
(Q)	Total cost of funds, including noninterest bearing deposits, was 1.65% and 1.87% for the nine months ended September 30, 2025 and 2024, respectively.

 

 

Prosperity Bancshares, Inc.®
Financial Highlights (Unaudited)
(Dollars in thousands)
	Three Months Ended
	Sep 30, 2025				Jun 30, 2025				Mar 31, 2025				Dec 31, 2024				Sep 30, 2024
YIELD TREND (R)
Interest-Earning Assets:
Loans held for sale		6.64	%			6.79	%			6.80	%			6.68	%			6.89	%
Loans held for investment		5.90	%			5.88	%			5.90	%			5.93	%			5.97	%
Loans held for investment - Warehouse Purchase Program		6.31	%			6.34	%			6.40	%			6.66	%			7.27	%
Total loans		5.92	%			5.91	%			5.92	%			5.97	%			6.04	%
Investment securities (S)		2.19	%			2.13	%			2.13	%			2.06	%			2.04	%
Federal funds sold and other earning assets		4.44	%			4.50	%			4.47	%			4.80	%			5.41	%
Total interest-earning assets		4.71	%			4.66	%			4.64	%			4.66	%			4.70	%
Interest-Bearing Liabilities:
Interest-bearing demand deposits		0.76	%			0.74	%			0.70	%			0.70	%			0.77	%
Savings and money market deposits		2.07	%			2.05	%			2.06	%			2.10	%			2.23	%
Certificates and other time deposits		3.60	%			3.59	%			3.75	%			4.06	%			4.24	%
Other borrowings		4.42	%			4.44	%			4.45	%			4.73	%			4.77	%
Securities sold under repurchase agreements		2.32	%			2.37	%			2.48	%			2.58	%			2.72	%
Total interest-bearing liabilities		2.39	%			2.38	%			2.39	%			2.60	%			2.78	%
Net Interest Margin		3.23	%			3.18	%			3.14	%			3.04	%			2.94	%
Net Interest Margin (tax equivalent)		3.24	%			3.18	%			3.14	%			3.05	%			2.95	%

(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 $2,877, $4,926, $5,027, $5,609 and $5,574 for the three months ended September 30, 2025, June 30, 2025, March 31, 2025, December 31, 2024 and September 30, 2024, respectively.

 

Prosperity Bancshares, Inc.®
Financial Highlights (Unaudited)
(Dollars in thousands)
		Three Months Ended
		Sep 30, 2025				Jun 30, 2025				Mar 31, 2025				Dec 31, 2024				Sep 30, 2024
Balance Sheet Averages
Loans held for sale		$	8,371			$	9,813			$	7,570			$	8,571			$	7,913
Loans held for investment			20,851,896				20,907,400				20,959,226				21,038,694				21,107,139
Loans held for investment - Warehouse Purchase Program			1,217,579				1,179,307				876,086				1,137,113				1,114,681
Total loans			22,077,846				22,096,520				21,842,882				22,184,378				22,229,733
Investment securities			10,530,807				10,867,856				11,017,400				11,265,535				11,612,193
Federal funds sold and other earning assets			934,318				841,933				1,443,220				1,628,050				1,531,788
Total interest-earning assets			33,542,971				33,806,309				34,303,502				35,077,963				35,373,714
Allowance for credit losses on loans			(343,872)				(348,310)				(350,715)				(353,560)				(358,237)
Cash and due from banks			291,809				294,379				326,066				317,420				304,911
Goodwill			3,503,127				3,503,127				3,503,128				3,505,030				3,504,300
Core deposit intangibles, net			56,956				60,739				64,293				68,167				72,330
Other real estate			11,533				8,749				7,105				6,778				5,339
Fixed assets, net			377,680				374,486				374,448				373,561				375,626
Other assets			689,659				691,735				729,251				632,040				611,219
Total assets		$	38,129,863			$	38,391,214			$	38,957,078			$	39,627,399			$	39,889,202
Noninterest-bearing deposits		$	9,451,153			$	9,508,845			$	9,504,540			$	9,829,912			$	9,680,785
Interest-bearing demand deposits			4,656,452				4,807,864				5,224,796				4,845,174				4,774,975
Savings and money market deposits			8,977,585				8,944,897				9,007,286				8,915,410				8,908,315
Certificates and other time deposits			4,422,996				4,366,510				4,426,521				4,552,445				4,564,232
Total deposits			27,508,186				27,628,116				28,163,143				28,142,941				27,928,307
Other borrowings			2,480,435				2,717,583				2,776,667				3,332,609				3,900,000
Securities sold under repurchase agreements			187,462				194,577				217,945				231,240				242,813
Allowance for credit losses on off-balance sheet credit exposures			37,646				37,646				37,646				37,646				37,646
Other liabilities			258,156				227,002				255,876				454,298				433,171
Shareholders' equity			7,657,978				7,586,290				7,505,801				7,428,665				7,347,265
Total liabilities and equity		$	38,129,863			$	38,391,214			$	38,957,078			$	39,627,399			$	39,889,202

 

Prosperity Bancshares, Inc.®
Financial Highlights (Unaudited)
(Dollars in thousands)
		Sep 30, 2025							Jun 30, 2025							Mar 31, 2025							Dec 31, 2024							Sep 30, 2024
Period End Balances
Loan Portfolio
Commercial and industrial		$	1,879,282			8.5	%		$	1,897,117			8.6	%		$	1,915,124			8.7	%		$	1,962,111			8.8	%		$	1,970,844			8.8	%
Warehouse purchase program			1,278,178			5.8	%			1,287,440			5.8	%			1,057,893			4.8	%			1,080,903			4.9	%			1,228,706			5.5	%
Construction, land development and other land loans			2,865,279			13.0	%			2,873,238			12.9	%			2,845,082			13.0	%			2,859,281			12.9	%			2,814,521			12.6	%
1-4 family residential			7,461,900			33.9	%			7,530,816			33.9	%			7,576,350			34.5	%			7,581,450			34.2	%			7,557,858			33.8	%
Home equity			848,740			3.9	%			869,370			3.9	%			896,529			4.1	%			906,139			4.1	%			919,676			4.1	%
Commercial real estate (includes multi-family residential)			5,796,937			26.3	%			5,827,645			26.3	%			5,783,410			26.3	%			5,800,985			26.2	%			5,869,687			26.2	%
Agriculture (includes farmland)			1,019,589			4.6	%			1,029,250			4.6	%			1,013,960			4.6	%			1,033,546			4.7	%			1,033,224			4.6	%
Consumer and other			366,027			1.7	%			368,747			1.7	%			378,821			1.7	%			378,817			1.7	%			413,548			1.8	%
Energy			511,837			2.3	%			513,765			2.3	%			510,401			2.3	%			545,977			2.5	%			572,788			2.6	%
Total loans		$	22,027,769						$	22,197,388						$	21,977,570						$	22,149,209						$	22,380,852
Deposit Types
Noninterest-bearing DDA		$	9,522,028			34.3	%		$	9,426,657			34.3	%		$	9,675,915			34.5	%		$	9,798,438			34.5	%		$	9,811,361			34.9	%
Interest-bearing DDA			4,766,146			17.2	%			4,708,251			17.1	%			4,931,769			17.6	%			5,182,035			18.3	%			4,800,758			17.1	%
Money market			6,402,591			23.0	%			6,302,770			23.0	%			6,339,509			22.6	%			6,229,022			21.9	%			6,166,792			22.0	%
Savings			2,616,196			9.4	%			2,667,859			9.7	%			2,703,736			9.7	%			2,685,496			9.5	%			2,707,982			9.6	%
Certificates and other time deposits			4,475,133			16.1	%			4,367,874			15.9	%			4,375,870			15.6	%			4,486,347			15.8	%			4,600,718			16.4	%
Total deposits		$	27,782,094						$	27,473,411						$	28,026,799						$	28,381,338						$	28,087,611
Loan to Deposit Ratio			79.3	%						80.8	%						78.4	%						78.0	%						79.7	%

 

Prosperity Bancshares, Inc.®
Financial Highlights (Unaudited)
(Dollars in thousands)
Construction Loans
		Sep 30, 2025							Jun 30, 2025							Mar 31, 2025							Dec 31, 2024							Sep 30, 2024
Single family residential construction		$	665,194			23.2	%		$	696,569			24.2	%		$	727,417			25.6	%		$	778,067			27.2	%		$	836,571			29.7	%
Land development			248,616			8.7	%			227,254			7.9	%			225,784			7.9	%			260,158			9.1	%			256,571			9.1	%
Raw land			230,021			8.0	%			248,380			8.7	%			261,918			9.2	%			278,892			9.7	%			263,411			9.4	%
Residential lots			203,396			7.1	%			217,835			7.6	%			219,115			7.7	%			209,850			7.3	%			217,920			7.7	%
Commercial lots			59,853			2.1	%			55,176			1.9	%			56,343			2.0	%			59,044			2.1	%			58,472			2.1	%
Commercial construction and other			1,459,255			50.9	%			1,428,985			49.7	%			1,355,587			47.6	%			1,274,619			44.6	%			1,183,127			42.0	%
Net unaccreted discount			(1,056)							(961)							(1,082)							(1,349)							(1,551)
Total construction loans		$	2,865,279						$	2,873,238						$	2,845,082						$	2,859,281						$	2,814,521

 

Non-Owner Occupied Commercial Real Estate Loans by Metropolitan Statistical Area (MSA) as of September 30, 2025
	Houston				Dallas				Austin				OK City				Tulsa				Other (T)				Total
Collateral Type
Shopping center/retail	$	328,842			$	230,333			$	122,499			$	15,103			$	12,002			$	319,570			$	1,028,349
Commercial and industrial buildings		179,377				103,862				24,433				32,680				12,026				256,858				609,236
Office buildings		99,991				280,699				68,563				43,802				4,224				94,839				592,118
Medical buildings		105,993				16,818				1,642				41,745				26,479				64,595				257,272
Apartment buildings		107,677				127,757				64,215				11,115				13,508				209,436				533,708
Hotel		106,613				116,016				30,162				13,349				—				176,330				442,470
Other		170,647				59,768				19,364				5,654				6,868				93,779				356,080
Total	$	1,099,140			$	935,253			$	330,878			$	163,448			$	75,107			$	1,215,407			$	3,819,233		(U)

 

Acquired Loans
	Non-PCD Loans												PCD Loans												Total Acquired Loans
	Balance at Acquisition Date				Balance at Jun 30, 2025				Balance at Sep 30, 2025				Balance at Acquisition Date				Balance at Jun 30, 2025				Balance at Sep 30, 2025				Balance at Acquisition Date				Balance at Jun 30, 2025				Balance at Sep 30, 2025
Loan marks:
Acquired banks (V)	$	388,625			$	22,766			$	20,406			$	332,400			$	6,075			$	5,472			$	721,025			$	28,841			$	25,878
Acquired portfolio loan balances:
Acquired banks (V)		14,323,981				1,786,602				1,609,115				1,376,673				387,143				350,644				15,700,654		(W)		2,173,745				1,959,759
Acquired portfolio loan balances less loan marks	$	13,935,356			$	1,763,836			$	1,588,709			$	1,044,273			$	381,068			$	345,172			$	14,979,629			$	2,144,904			$	1,933,881

(T)	Includes other MSA and non-MSA regions.
(U)	Represents a portion of total commercial real estate loans of $5.797 billion as of September 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, LegacyTexas Bank, FirstCapital Bank and Lone Star Bank.
(W)	Actual principal balances acquired.

 

Prosperity Bancshares, Inc.®
Financial Highlights (Unaudited)
(Dollars in thousands)
	Three Months Ended																				Year-to-Date
	Sep 30, 2025				Jun 30, 2025				Mar 31, 2025				Dec 31, 2024				Sep 30, 2024				Sep 30, 2025				Sep 30, 2024
Asset Quality
Nonaccrual loans	$	105,529			$	102,031			$	73,287			$	73,647			$	83,969			$	105,529			$	83,969
Accruing loans 90 or more days past due		268				576				91				2,189				20				268				20
Total nonperforming loans		105,797				102,607				73,378				75,836				83,989				105,797				83,989
Repossessed assets		16				6				29				4				177				16				177
Other real estate		13,750				7,874				8,012				5,701				5,757				13,750				5,757
Total nonperforming assets	$	119,563			$	110,487			$	81,419			$	81,541			$	89,923			$	119,563			$	89,923
Nonperforming assets:
Commercial and industrial (includes energy)	$	27,880			$	27,680			$	8,966			$	10,080			$	13,642			$	27,880			$	13,642
Construction, land development and other land loans		583				1,859				1,952				4,481				4,053				583				4,053
1-4 family residential (includes home equity)		57,241				50,501				42,481				44,824				36,660				57,241				36,660
Commercial real estate (includes multi-family residential)		11,471				12,865				12,257				18,861				32,803				11,471				32,803
Agriculture (includes farmland)		17,080				17,547				15,725				3,208				2,686				17,080				2,686
Consumer and other		5,308				35				38				87				79				5,308				79
Total	$	119,563			$	110,487			$	81,419			$	81,541			$	89,923			$	119,563			$	89,923
Number of loans/properties		424				392				363				368				346				424				346
Allowance for credit losses on loans	$	339,626			$	346,084			$	349,101			$	351,805			$	354,397			$	339,626			$	354,397
Net charge-offs (recoveries):
Commercial and industrial (includes energy)	$	3,341			$	1,044			$	330			$	405			$	3,309			$	4,715			$	6,369
Construction, land development and other land loans		34				(3)				(156)				294				378				(125)				485
1-4 family residential (includes home equity)		853				342				1,051				180				409				2,246				1,291
Commercial real estate (includes multi-family residential)		1,015				55				178				362				258				1,248				(140)
Agriculture (includes farmland)		(40)				(14)				—				5				(116)				(54)				121
Consumer and other		1,255				1,593				1,301				1,346				1,217				4,149				3,840
Total	$	6,458			$	3,017			$	2,704			$	2,592			$	5,455			$	12,179			$	11,966
Asset Quality Ratios
Nonperforming assets to average interest-earning assets		0.36	%			0.33	%			0.24	%			0.23	%			0.25	%			0.35	%			0.25	%
Nonperforming assets to loans and other real estate		0.54	%			0.50	%			0.37	%			0.37	%			0.40	%			0.54	%			0.40	%
Net charge-offs to average loans (annualized)		0.12	%			0.05	%			0.05	%			0.05	%			0.10	%			0.07	%			0.07	%
Allowance for credit losses on loans to total loans		1.54	%			1.56	%			1.59	%			1.59	%			1.58	%			1.54	%			1.58	%
Allowance for credit losses on loans to total loans, excluding Warehouse Purchase Program loans (G)		1.64	%			1.66	%			1.67	%			1.67	%			1.68	%			1.64	%			1.68	%

 

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
		Sep 30, 2025				Jun 30, 2025				Mar 31, 2025				Dec 31, 2024				Sep 30, 2024				Sep 30, 2025				Sep 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)		$	1.45			$	1.42			$	1.37			$	1.37			$	1.34			$	4.23			$	3.68
Net income		$	137,556			$	135,155			$	130,225			$	130,076			$	127,282			$	402,936			$	349,310
Merger related provision for credit losses, net of tax(X)			—				—				—				—				—				—				7,162
Merger related expenses, net of tax(X)			49				—				—				—				50				49				3,511
FDIC special assessment, net of tax(X)			—				—				—				—				—				—				2,807
Net gain on sale or write-up of securities, net of tax(X)			—				—				—				—				(177)				—				(8,884)
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(X):		$	137,605			$	135,155			$	130,225			$	130,076			$	127,155			$	402,985			$	353,906
Weighted average diluted shares outstanding			95,093				95,277				95,266				95,264				95,261				95,211				94,912
Merger related provision for credit losses, net of tax, per diluted common share(X)		$	—			$	—			$	—			$	—			$	—			$	—			$	0.08
Merger related expenses, net of tax, per diluted common share(X)		$	—			$	—			$	—			$	—			$	—			$	—			$	0.04
FDIC special assessment, net of tax, per diluted common share(X)		$	—			$	—			$	—			$	—			$	—			$	—			$	0.03
Net gain on sale or write-up of securities, net of tax, per diluted common share(X)		$	—			$	—			$	—			$	—			$	—			$	—			$	(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:(X)		$	1.45			$	1.42			$	1.37			$	1.37			$	1.34			$	4.23			$	3.74
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)			1.44	%			1.41	%			1.34	%			1.31	%			1.28	%			1.40	%			1.16	%
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(X):		$	137,605			$	135,155			$	130,225			$	130,076			$	127,155			$	402,985			$	353,906
Average total assets		$	38,129,863			$	38,391,214			$	38,957,078			$	39,627,399			$	39,889,202			$	38,489,077			$	40,034,895
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) (X)			1.44	%			1.41	%			1.34	%			1.31	%			1.28	%			1.40	%			1.18	%
(X) Calculated assuming a federal tax rate of 21.0%.
		Three Months Ended																				Year-to-Date
		Sep 30, 2025				Jun 30, 2025				Mar 31, 2025				Dec 31, 2024				Sep 30, 2024				Sep 30, 2025				Sep 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)			7.18	%			7.13	%			6.94	%			7.00	%			6.93	%			7.08	%			6.40	%
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(X):		$	137,605			$	135,155			$	130,225			$	130,076			$	127,155			$	402,985			$	353,906
Average shareholders' equity		$	7,657,978			$	7,586,290			$	7,505,801			$	7,428,665			$	7,347,265			$	7,583,914			$	7,274,009
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) (X)			7.19	%			7.13	%			6.94	%			7.00	%			6.92	%			7.08	%			6.49	%
Reconciliation of return on average common equity to return on average tangible common equity:
Net income		$	137,556			$	135,155			$	130,225			$	130,076			$	127,282			$	402,936			$	349,310
Average shareholders' equity		$	7,657,978			$	7,586,290			$	7,505,801			$	7,428,665			$	7,347,265			$	7,583,914			$	7,274,009
Less: Average goodwill and other intangible assets			(3,560,083)				(3,563,866)				(3,567,421)				(3,573,197)				(3,576,630)				(3,563,763)				(3,526,501)
Average tangible shareholders' equity		$	4,097,895			$	4,022,424			$	3,938,380			$	3,855,468			$	3,770,635			$	4,020,151			$	3,747,508
Return on average tangible common equity (F)			13.43	%			13.44	%			13.23	%			13.50	%			13.50	%			13.36	%			12.43	%
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(X):		$	137,605			$	135,155			$	130,225			$	130,076			$	127,155			$	402,985			$	353,906
Average shareholders' equity		$	7,657,978			$	7,586,290			$	7,505,801			$	7,428,665			$	7,347,265			$	7,583,914			$	7,274,009
Less: Average goodwill and other intangible assets			(3,560,083)				(3,563,866)				(3,567,421)				(3,573,197)				(3,576,630)				(3,563,763)				(3,526,501)
Average tangible shareholders' equity		$	4,097,895			$	4,022,424			$	3,938,380			$	3,855,468			$	3,770,635			$	4,020,151			$	3,747,508
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) (X)			13.43	%			13.44	%			13.23	%			13.50	%			13.49	%			13.37	%			12.59	%
Reconciliation of book value per share to tangible book value per share:
Shareholders' equity		$	7,664,938			$	7,599,736			$	7,517,061			$	7,438,495			$	7,361,249			$	7,664,938			$	7,361,249
Less: Goodwill and other intangible assets			(3,558,321)				(3,561,923)				(3,565,533)				(3,569,176)				(3,574,566)				(3,558,321)				(3,574,566)
Tangible shareholders' equity		$	4,106,617			$	4,037,813			$	3,951,528			$	3,869,319			$	3,786,683			$	4,106,617			$	3,786,683
Period end shares outstanding			94,993				95,277				95,258				95,275				95,261				94,993				95,261
Tangible book value per share		$	43.23			$	42.38			$	41.48			$	40.61			$	39.75			$	43.23			$	39.75
		Three Months Ended																				Year-to-Date
		Sep 30, 2025				Jun 30, 2025				Mar 31, 2025				Dec 31, 2024				Sep 30, 2024				Sep 30, 2025				Sep 30, 2024
Reconciliation of equity to assets ratio to period end tangible equity to period end tangible assets ratio:
Tangible shareholders' equity		$	4,106,617			$	4,037,813			$	3,951,528			$	3,869,319			$	3,786,683			$	4,106,617			$	3,786,683
Total assets		$	38,330,469			$	38,417,352			$	38,764,675			$	39,566,738			$	40,115,320			$	38,330,469			$	40,115,320
Less: Goodwill and other intangible assets			(3,558,321)				(3,561,923)				(3,565,533)				(3,569,176)				(3,574,566)				(3,558,321)				(3,574,566)
Tangible assets		$	34,772,148			$	34,855,429			$	35,199,142			$	35,997,562			$	36,540,754			$	34,772,148			$	36,540,754
Period end tangible equity to period end tangible assets ratio			11.81	%			11.58	%			11.23	%			10.75	%			10.36	%			11.81	%			10.36	%
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		$	339,626			$	346,084			$	349,101			$	351,805			$	354,397			$	339,626			$	354,397
Total loans		$	22,027,769			$	22,197,388			$	21,977,570			$	22,149,209			$	22,380,852			$	22,027,769			$	22,380,852
Less: Warehouse Purchase Program loans			(1,278,178)				(1,287,440)				(1,057,893)				(1,080,903)				(1,228,706)				(1,278,178)				(1,228,706)
Total loans less Warehouse Purchase Program		$	20,749,591			$	20,909,948			$	20,919,677			$	21,068,306			$	21,152,146			$	20,749,591			$	21,152,146
Allowance for credit losses on loans to total loans excluding Warehouse Purchase Program			1.64	%			1.66	%			1.67	%			1.67	%			1.68	%			1.64	%			1.68	%
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		$	138,635			$	138,565			$	140,301			$	141,545			$	140,338			$	417,501			$	429,028
Net interest income		$	273,435			$	267,722			$	265,382			$	267,774			$	261,691			$	806,539			$	758,721
Noninterest income			41,238				42,982				41,301				39,837				41,099				125,521				125,972
Less: net gain (loss) on sale or write-down of assets			3				1,414				(235)				584				3,178				1,182				2,240
Less: net gain on sale or write-up of securities			—				—				—				—				224				—				11,245
Noninterest income excluding net gains and losses on the sale, write-down or write-up of assets and securities			41,235				41,568				41,536				39,253				37,697				124,339				112,487
Total income excluding net gains and losses on the sale, write-down or write-up of assets and securities		$	314,670			$	309,290			$	306,918			$	307,027			$	299,388			$	930,878			$	871,208
Efficiency ratio, excluding net gains and losses on the sale, write-down or write-up of assets and securities			44.06	%			44.80	%			45.71	%			46.10	%			46.87	%			44.85	%			49.25	%
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		$	138,635			$	138,565			$	140,301			$	141,545			$	140,338			$	417,501			$	429,028
Less: merger related expenses			62				—				—				—				63				62				4,444
Less: FDIC special assessment			—				—				—				—				—				—				3,554
Noninterest expense excluding merger related expenses and FDIC special assessment		$	138,573			$	138,565			$	140,301			$	141,545			$	140,275			$	417,439			$	421,030
Net interest income		$	273,435			$	267,722			$	265,382			$	267,774			$	261,691			$	806,539			$	758,721
Noninterest income			41,238				42,982				41,301				39,837				41,099				125,521				125,972
Less: net gain (loss) on sale or write down of assets			3				1,414				(235)				584				3,178				1,182				2,240
Less: net gain on sale or write-up of securities			—				—				—				—				224				—				11,245
Noninterest income excluding net gains and losses on the sale, write-down or write-up of assets and securities			41,235				41,568				41,536				39,253				37,697				124,339				112,487
Total income excluding net gains and losses on the sale, write-down or write-up of assets and securities		$	314,670			$	309,290			$	306,918			$	307,027			$	299,388			$	930,878			$	871,208
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			44.04	%			44.80	%			45.71	%			46.10	%			46.85	%			44.84	%			48.33	%

 

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FAQ

What were Prosperity Bancshares (PB) Q3 2025 earnings and diluted EPS?

Prosperity reported Q3 2025 net income of $137.6 million and diluted EPS of $1.45 for the quarter ended September 30, 2025.

How did Prosperity Bancshares (PB) perform year‑to‑date through September 30, 2025?

For the nine months ended September 30, 2025, Prosperity reported $402.9 million net income, up 15.4%, and $4.23 diluted EPS, up 14.9% versus 2024.

What dividend did Prosperity Bancshares (PB) declare for Q4 2025 and when is it payable?

The board approved a $0.60 per share cash dividend for Q4 2025, payable January 2, 2026, to shareholders of record December 15, 2025.

What merger activity did Prosperity Bancshares (PB) announce in October 2025?

Prosperity signed a definitive merger agreement to acquire Southwest Bancshares and also has a pending acquisition of American Bank Holding in Corpus Christi, Texas.

How did Prosperity Bancshares (PB) deposits and assets change in Q3 2025?

Deposits increased by $308.7 million during Q3 2025; total assets were $38.33 billion at September 30, 2025.

What happened to Prosperity Bancshares (PB) net interest margin in Q3 2025?

The tax‑equivalent net interest margin increased 29 basis points year‑over‑year to 3.24% for Q3 2025.