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Announced the signing of a definitive merger agreement to acquire Stellar Bancorp, Inc., headquartered in Houston, Texas
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Net income of $139.9 million and earnings per share (diluted) of $1.49 for fourth quarter 2025
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Net income of $542.8 million, increased 13.2%, and earnings per share (diluted) of $5.72, increased 13.3%, for the year ended December 31, 2025 compared with the same period 2024
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Fourth quarter net interest margin increased 25 basis points to 3.30% compared to 3.05% for fourth quarter 2024
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Deposits increased $700.4 million during fourth quarter 2025, or 10.1% annualized
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Allowance for credit losses on loans and on off-balance sheet credit exposure of $371.4 million and allowance for credit losses on loans to total loans, excluding Warehouse Purchase Program, of 1.63%(1)
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Nonperforming assets remain low at 0.46% of fourth quarter average interest-earning assets
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Return (annualized) on fourth quarter average assets of 1.49% and average tangible common equity of 13.61%(1)
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Completed the acquisition of American Bank Holding Corporation on January 1, 2026
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Received all necessary regulatory and shareholder approvals for the pending acquisition of Southwest Bancshares, Inc., San Antonio, Texas
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Repurchased 2.0 million shares of common stock for $137.2 million during fourth quarter 2025, and 2.3 million shares of common stock for $157.1 million during 2025
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Approved 2026 Stock Repurchase Program covering up to 5% of outstanding common stock
Prosperity Bancshares, Inc.® (NYSE: PB) (“Prosperity Bancshares”), the parent company of Prosperity Bank® (collectively, “Prosperity”), reported net income of $139.9 million for the quarter ended December 31, 2025, compared with $130.1 million for the same period in 2024. Net income per diluted common share was $1.49 for the quarter ended December 31, 2025, compared with $1.37 for the same period in 2024. The annualized return on fourth quarter average assets was 1.49%. Additionally, deposits increased $700.4 million during the fourth quarter of 2025. Nonperforming assets remain low at 0.46% of fourth quarter average interest-earning assets. On January 1, 2026, American Bank Holding Corporation (“American”) merged with Prosperity Bancshares and American Bank, N.A. (“American Bank”) merged with Prosperity Bank (collectively, the “Prosperity/American Merger”).
“I am excited to announce that on January 1, 2026, Prosperity completed the merger with our new partner American and its wholly owned subsidiary American Bank, headquartered in Corpus Christi, Texas. In connection with that transaction, we are pleased that Patt Wallace, the daughter of one of the founding families of the bank, and Steve Rafaelle, the CEO of American Bank, have joined our Bank Board of Directors,” said David Zalman, Prosperity’s Senior Chairman and Chief Executive Officer.
“We have also received all regulatory and shareholder approvals for the merger with Southwest Bancshares, the parent company of Texas Partners Bank and expect the transaction will be effective on February 1, 2026. In connection with the Southwest deal, we are pleased that Gene Dawson, Interim Chairman of Southwest Bancshares and Chairman of the nationally recognized Pape-Dawson engineering firm will be joining our Bank Board of Directors. To further add to our San Antonio presence, Charlie Amato has joined our Bank Board of Directors. In addition to his successful business, Charlie previously served as a board member of Federal Reserve Board of Dallas, San Antonio Branch, a Regent of the Texas State University System and is an investor in the San Antonio Spurs,” continued Zalman.
“When Prosperity went public in 1998, we were a small community bank in rural Texas with less than $500 million in assets. For 27 years, we have remained disciplined and focused on the same strategy. Delivering shareholder value by prioritizing low-cost core deposits, operational efficiency, sound credit quality, and growth via opportunistic M&A,” added Zalman.
“This morning’s announcement that Prosperity is acquiring Stellar Bancorp is consistent with that strategy and this transaction marks an important milestone for the company. Our combined Houston bank deposit rank increases from number 9 to number 5, making us the largest Texas-based bank in the market and 2nd largest by bank deposits in the state,” stated Zalman.
“Importantly, Stellar Bancorp is a well-run bank with similar credit discipline and an envious noninterest-bearing deposit mix. It has scarcity value, a quality balance sheet and earnings power. As a result, we view the transaction as a low-risk combination that significantly enhances our Texas footprint,” concluded Zalman.
Results of Operations for the Three Months Ended December 31, 2025
Net income was $139.9 million(2) for the three months ended December 31, 2025, compared with $130.1 million(3) for the same period in 2024, an increase of $9.8 million or 7.6%. Net income per diluted common share was $1.49 for the three months ended December 31, 2025, compared with $1.37 for the same period in 2024, an increase of 8.8%. The changes were primarily due to an increase in net interest income and a decrease in Federal Deposit Insurance Corporation (“FDIC”) special assessment, partially offset by an increase in provision for income taxes. On a linked quarter basis, net income was $139.9 million(2) for the three months ended December 31, 2025, compared with $137.6 million(4) for the three months ended September 30, 2025, an increase of $2.4 million or 1.7%. Net income per diluted common share was $1.49 for the three months ended December 31, 2025, compared with $1.45 for the three months ended September 30, 2025, an increase of 2.8%. Annualized returns on average assets, average common equity and average tangible common equity for the three months ended December 31, 2025, were 1.49%, 7.30% and 13.61%(1), respectively. Prosperity’s efficiency ratio (excluding net gains and losses on the sale, write-down or write-up of assets and securities) was 43.66%(1) for the three months ended December 31, 2025.
Net interest income before provision for credit losses was $275.0 million for the three months ended December 31, 2025, compared with $267.8 million for the same period in 2024, an increase of $7.2 million or 2.7%. The net interest margin on a tax equivalent basis was 3.30% for the three months ended December 31, 2025, compared with 3.05% for the same period in 2024. The changes to both measures were primarily due to a decrease in the average balances and average rates on other borrowings and a decrease in the average rates on interest-bearing deposits, partially offset by a decrease in the average balances and average rates on loans and federal funds sold and other earning assets. Net interest income before provision for credit losses increased $1.5 million to $275.0 million for the three months ended December 31, 2025, compared with $273.4 million for the three months ended September 30, 2025. The net interest margin on a tax equivalent basis was 3.30% for the three months ended December 31, 2025, compared with 3.24% for the three months ended September 30, 2025. The changes to both measures were primarily due to a decrease in the average balances and average rates on other borrowings, partially offset by a decrease in the average balances and average rates on loans and federal funds sold and other earning assets.
Noninterest income was $42.8 million for the three months ended December 31, 2025, compared with $39.8 million for the same period in 2024, an increase of $2.9 million, primarily due to increases in other noninterest income and service charges on deposit accounts. Noninterest income was $42.8 million for the three months ended December 31, 2025, compared with $41.2 million for the three months ended September 30, 2025, an increase of $1.5 million.
Noninterest expense was $138.7 million for the three months ended December 31, 2025, compared with $141.5 million for the same period in 2024, a decrease of $2.8 million, primarily due to a reversal of the 2024 FDIC special assessment, partially offset by a change in the net loss on sale or write-down of other real estate and an excise tax expense due to stock repurchases. Noninterest expense was $138.7 million for the three months ended December 31, 2025, and $138.6 million for the three months ended September 30, 2025.
Results of Operations for the Year Ended December 31, 2025
For the year ended December 31, 2025, net income was $542.8 million(5) compared with $479.4 million(6) for the same period in 2024, an increase of $63.5 million or 13.2%. Net income per diluted common share was $5.72 for the year ended December 31, 2025, compared with $5.05 for the same period in 2024, an increase of 13.3%. 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 year ended December 31, 2025, were 1.42%, 7.14% and 13.43%(1), respectively.
Net interest income before provision for credit losses for the year ended December 31, 2025, was $1.081 billion compared with $1.026 billion for the same period in 2024, an increase of $55.0 million or 5.4%. The net interest margin on a tax equivalent basis for the year ended December 31, 2025, was 3.22% compared with 2.93% for the same period in 2024. The changes to both measures were 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 on investment securities, a decrease in the average rates on loans and a decrease in loan discount accretion of $5.1 million.
Noninterest income was $168.3 million for the year ended December 31, 2025, compared with $165.8 million for the same period in 2024, an increase of $2.5 million, primarily due to increases in other noninterest income and service charges on deposit accounts, partially offset by a decrease in net gain on sale or write-up of securities.
Noninterest expense was $556.2 million for the year ended December 31, 2025, compared with $570.6 million for the same period in 2024, a decrease of $14.4 million, primarily due lower regulatory assessments and FDIC insurance, a reversal of the 2024 FDIC special assessment, a decrease in other noninterest expense and a decrease in merger related expenses.
Balance Sheet Information
Prosperity had $38.463 billion in total assets at December 31, 2025, compared with $38.330 billion at September 30, 2025, and $39.567 billion at December 31, 2024. The year-over-year decrease was primarily due to the reduction in borrowings by $1.250 billion from December 31, 2024 to December 31, 2025.
Loans were $21.805 billion at December 31, 2025, a decrease of $222.4 million from $22.028 billion at September 30, 2025. Loans decreased $343.8 million from $22.149 billion at December 31, 2024.
Loans, excluding Warehouse Purchase Program loans, were $20.501 billion at December 31, 2025, compared with $20.750 billion at September 30, 2025, a decrease of $249.0 million, and compared with $21.068 billion at December 31, 2024, a decrease of $567.7 million.
Deposits were $28.482 billion at December 31, 2025, an increase of $700.4 million from $27.782 billion at September 30, 2025. Deposits increased $101.1 million from $28.381 billion at December 31, 2024.
Asset Quality
Nonperforming assets totaled $150.8 million or 0.46% of quarterly average interest-earning assets at December 31, 2025, compared with $119.6 million or 0.36% of quarterly average interest-earning assets at September 30, 2025, and $81.5 million or 0.23% of quarterly average interest-earning assets at December 31, 2024.
The allowance for credit losses on loans and off-balance sheet credit exposures was $371.4 million at December 31, 2025, compared with $377.3 million at September 30, 2025, and $389.5 million at December 31, 2024. There was no provision for credit losses for the three months and year ended December 31, 2025, compared with no provision for credit losses for the three months ended December 31, 2024, and a $9.1 million provision for credit losses related to acquisitions for the year ended December 31, 2024.
The allowance for credit losses on loans was $333.7 million or 1.53% of total loans at December 31, 2025, compared with $339.6 million or 1.54% of total loans at September 30, 2025, and $351.8 million or 1.59% of total loans at December 31, 2024. Excluding Warehouse Purchase Program loans, the allowance for credit losses on loans to total loans was 1.63%(1) at December 31, 2025, compared with 1.64%(1) at September 30, 2025, and 1.67%(1) at December 31, 2024.
Net charge-offs were $5.9 million for the three months ended December 31, 2025, compared with net charge-offs of $6.5 million for the three months ended September 30, 2025, and net charge-offs of $2.6 million for the three months ended December 31, 2024. For the three months ended December 31, 2025, $3.9 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 $18.1 million for the year ended December 31, 2025, compared with net charge-offs of $14.6 million for the year ended December 31, 2024. For the year ended December 31, 2025, $18.9 million of reserves on resolved PCD loans without any related charge-offs were released to the general reserve.
Dividend
Prosperity Bancshares declared a first quarter 2026 cash dividend of $0.60 per share to be paid on April 1, 2026, to all shareholders of record as of March 13, 2026.
Stock Repurchase Program
On January 26, 2026, Prosperity Bancshares announced a stock repurchase program under which up to 5%, or approximately 4.87 million shares, of its outstanding common stock may be acquired over a one-year period expiring on January 26, 2027, at the discretion of management. Under its 2025 stock repurchase program, Prosperity Bancshares repurchased approximately 2.04 million shares of its common stock at an average weighted price of $67.10 per share during the three months ended December 31, 2025, and approximately 2.34 million shares of its common stock at an average weighted price of $67.04 per share during the year ended December 31, 2025.
Pending Acquisition of Stellar Bancorp, Inc.
On January 28, 2026, Prosperity Bancshares and Stellar Bancorp, Inc. (“Stellar”) jointly announced the signing of a definitive merger agreement whereby Stellar, the parent company of Stellar Bank (“Stellar Bank”) will merge with and into Prosperity Bancshares. Stellar Bank operates 52 banking offices in greater Houston and Beaumont, Texas and surrounding areas. As of December 31, 2025, Stellar, on a consolidated basis, reported total assets of $10.807 billion, total loans of $7.301 billion and total deposits of $9.021 billion.
Under the terms and subject to the conditions of the definitive agreement, Prosperity Bancshares will issue 0.3803 shares of Prosperity Bancshares common stock and $11.36 in cash for each outstanding share of Stellar common stock. Based on Prosperity Bancshares’ closing price of $72.90 on January 27, 2026, the total consideration was valued at approximately $2.002 billion.
Pending Acquisition of 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 December 31, 2025, Southwest, on a consolidated basis, reported total assets of $2.426 billion, total loans of $1.941 billion and total deposits of $2.187 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’ closing price of $65.97 on September 29, 2025, the total consideration was valued at approximately $268.9 million. Prosperity has received all necessary regulatory approvals for the acquisition of Southwest, and the shareholders of Southwest approved the transaction on January 22, 2026. The transaction is expected to become effective on February 1, 2026, subject to customary closing conditions.
Acquisition of American Bank Holding Corporation
On January 1, 2026, Prosperity completed the acquisition of American and its wholly owned subsidiary American Bank, headquartered in Corpus Christi, Texas. American Bank operated 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 December 31, 2025, American, on a consolidated basis, reported total assets of $2.506 billion, total loans of $1.907 billion and total deposits of $2.271 billion.
Pursuant to the terms of the definitive agreement, Prosperity Bancshares issued 4,439,938 shares of Prosperity Bancshares common stock to the former shareholders and award holders of American in the first quarter of 2026.
Conference Call
Prosperity’s management team will host a conference call on Wednesday, January 28, 2026, at 11:30 a.m. Eastern Time (10:30 a.m. Central Time) to discuss Prosperity’s fourth quarter 2025 earnings and the Stellar acquisition announcement. 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 0259843.
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, 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 December 31, 2025, Prosperity Bancshares, Inc.® is a $38.463 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 301 full-service banking locations: 62 in the Houston area, including The Woodlands; 36 in the South Texas area including Corpus Christi and Victoria; 61 in the Dallas/Fort Worth area; 22 in the East Texas area; 28 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 and 18 in the Central, South Texas and San Antonio areas currently doing business as American Bank.
Cautionary Notes on Forward-Looking Statements
“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: This press release contains, and the remarks by Prosperity’s management on the conference call may contain, statements regarding the proposed transaction between Prosperity Bancshares, Inc. (“Prosperity”) and Stellar Bancorp, Inc. (“Stellar”); future financial and operating results; benefits and synergies of the proposed transaction; future opportunities for Prosperity; the issuance of common stock of Prosperity contemplated by the Agreement and Plan of Merger by and between Prosperity and Stellar (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 Stellar 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, Stellar and their respective subsidiaries or related to the proposed transaction between Prosperity and Stellar 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 and Stellar’s possible or assumed future economic performance or future results of operations, including future revenues, income, expenses, provision for loan losses, provision for taxes, effective tax rate, earnings per share and cash flows and Prosperity’s and Stellar’s future capital expenditures and dividends, future financial condition and changes therein, including changes in Prosperity’s and Stellar’s loan portfolio and allowance for loan losses, future capital structure or changes therein, as well as the plans and objectives of management for Prosperity’s and Stellar’s future operations, future or proposed acquisitions, the future or expected effect of acquisitions on Prosperity’s and Stellar’s operations, results of operations, financial condition, and future economic performance, statements about the anticipated benefits of the proposed transaction, 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 and Stellar currently believe to be valid. Because forward-looking statements relate to future results and occurrences, many of which are outside of the control of Prosperity and Stellar, 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, Stellar 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 proposed transaction may not be fully realized or may take longer than anticipated to be realized, (2) disruption to Prosperity’s and Stellar’s businesses as a result of the announcements and pendency of the proposed transaction, (3) the risk that the integration of Stellar’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 Stellar’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 Stellar, (5) the ability by Prosperity and/or Stellar to obtain required governmental approvals of the proposed 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 proposed transaction or adversely affect the expected benefits of the proposed transaction, (6) reputational risk and the reaction of each company’s customers, suppliers, employees or other business partners to the proposed transaction, (7) the failure of the closing conditions in the Merger Agreement to be satisfied, or any unexpected delay in closing the proposed 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 issuances of additional shares of Prosperity’s common stock in the proposed transaction, (9) the possibility that the proposed 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 proposed transaction, or against Stellar, (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 Stellar. Prosperity and Stellar disclaim 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 risks, uncertainties, assumptions, and factors are discussed in the respective Annual Reports on Form 10-K for the year ended December 31, 2024, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K, filed by Prosperity or Stellar and in other filings made by Prosperity and Stellar with the SEC from time to time.
Additional Information about the Transaction and Where to Find It
Prosperity intends to file with the SEC the Registration Statement on Form S-4 to register the shares of Prosperity common stock to be issued to the shareholders of Stellar in connection with the proposed transaction. The Registration Statement will include the Proxy Statement/Prospectus which will be sent to the shareholders of Stellar in connection with the proposed transaction. This communication is not a substitute for the Registration Statement, the Proxy Statement/Prospectus or any other document that may be filed by Prosperity or Stellar with the SEC. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT, THE PROXY STATEMENT/PROSPECTUS 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, BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION. Investors and security holders will be able to obtain the Registration Statement and the Proxy Statement/Prospectus (when available) and other documents that are filed with the SEC by Prosperity or Stellar, as applicable, free of charge from the SEC’s website at https://www.sec.gov or through the investor relations section of Prosperity’s website at https://www.prosperitybankusa.com/investor-relations/ or Stellar’s website at https://ir.stellar.bank.
Participants in the Solicitation
Prosperity, Stellar and certain of their directors and executive officers and other employees may be deemed to be participants in the solicitation of proxies from Stellar’s shareholders in connection with the proposed transaction. Information about the directors and executive officers of Prosperity and their ownership of Prosperity common stock is contained in the definitive proxy statement for Prosperity’s 2025 annual meeting of shareholders (the “Prosperity Annual Meeting Proxy Statement”), which was filed with the SEC on March 13, 2025, including under the headings “Item 1. Election of Directors,” “Corporate Governance,” “Executive Compensation and Other Matters,” “Item 3. Advisory Vote on Executive Compensation,” and “Beneficial Ownership of Common Stock by Management of the Company and Principal Shareholders.” Information about the directors and executive officers of Stellar and their ownership of Stellar common stock is contained in the definitive proxy statement for Stellar’s 2025 annual meeting of shareholders (the “Stellar Annual Meeting Proxy Statement”), which was filed with the SEC on April 10, 2025, including under the headings “Proposal 1: Election of Directors,” “Certain Corporate Governance Matters,” “Executive Compensation and Other Matters,” “Executive Compensation Payments and Awards,” “Proposal 4: Advisory Vote on the Compensation of the Company’s Named Executive Officers (“Say-on-Pay Resolution”),” and “Beneficial Ownership of the Company’s Common Stock by Management and Principal Shareholders of the Company.” Additional information regarding the persons who may, under the rules of the SEC, be deemed participants in the solicitation of the shareholders of Stellar in connection with the proposed transaction, including a description of their direct or indirect interests, by security holdings or otherwise, will be included in the Proxy Statement/Prospectus relating to the proposed transaction when it is filed with the SEC. To the extent holdings of securities by potential participants (or the identity of such participants) have changed since the information printed in the Prosperity Annual Meeting Proxy Statement or the Stellar Annual Meeting Proxy Statement, such information has been or will be reflected on Statements of Change in Ownership on Forms 3 and 4 filed with the SEC, as applicable. Free copies of the Proxy Statement/Prospectus relating to the proposed transaction and free copies of the other SEC filings to which reference is made in this paragraph may be obtained from the SEC’s website at https://www.sec.gov or through the investor relations section of Prosperity’s website at https://www.prosperitybankusa.com/investor-relations/ or Stellar’s website at https://ir.stellar.bank.
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 $2.7 million, net of tax, primarily comprised of loan discount accretion of $3.1 million for the three months ended
December 31, 2025.
(3) Includes purchase accounting adjustments of $3.3 million, net of tax, primarily comprised of loan discount accretion of $3.6 million for the three months ended
December 31, 2024.
(4) Includes purchase accounting adjustments of $3.4 million, net of tax, primarily comprised of loan discount accretion of $2.9 million for the three months ended
September 30, 2025.
(5) Includes purchase accounting adjustments of $12.1 million, net of tax, primarily comprised of loan discount accretion of $12.4 million for the year ended December
31, 2025.
(6) Includes purchase accounting adjustments of $15.7 million, net of tax, primarily comprised of loan discount accretion of $17.5 million, merger related provision for
credit losses of $9.1 million, merger related expenses of $4.5 million, FDIC special assessment of $3.6 million, and net gain on sale or write-up of securities of
$11.2 million for the year ended December 31, 2024.
Bryan/College Station Area North Carrolton
Bellaire
Timbergate
Sherwood Way
Bryan
Park Cities
Beltway Water Street
Bryan-29th Street
Plano
Clear Lake Wichita Falls
Bryan-East
Plano-West
Copperfield Victoria
Cattlemans
Bryan-North
Preston Forest
Cypress Victoria Main
Kell
Caldwell
Preston Parker
Downtown Victoria-Navarro
College Station
Preston Royal
Eastex Victoria-North Other West Texas Area
Hearne
Red Oak
Fairfield Victoria Salem Locations
Huntsville
Richardson
First Colony
Big Spring
Madisonville Richardson-West
Fry Road Other South Texas
Area
Big Spring - East
Navasota
Rosewood Court
Gessner Locations
Brownfield
New Waverly
The Colony
Gladebrook
Alice
Brownwood
Rock Prairie
Tollroad
Grand Parkway Aransas Pass
Burkburnett
Southwest Parkway
Trinity Mills
Heights
Bay City
Byers
Tower Point
Turtle Creek
Highway 6 West
Beeville
Cisco
Wellborn Road West 15th Plano
Little York Colony Creek
Comanche
West Allen
Medical Center
Cuero
Early
Central Texas Area
Westmoreland
Memorial Drive East Bernard
Floydada
Austin
Wylie
Northside
Edna
Gorman
Cedar Park
Pasadena
El Campo
Henrietta
Congress Fort Worth
Pecan Grove
Flatonia
Levelland
Lakeway
Haltom City
Pin Oak
Goliad
Littlefield
Liberty Hill
Hulen
River Oaks
Gonzales
Merkel
Northland
Keller
Sugar Land Hallettsville
Plainview
Oak Hill
Museum Place SW Medical Center
Kingsville
Slaton
Research Blvd Renaissance Square
Tanglewood
Mathis
Snyder
Westlake
Roanoke
The Plaza Padre Island
Stockyards
Uptown
Palacios Oklahoma
Other Central Texas Area
Waugh Drive Port Lavaca Central Oklahoma Area
Locations Other Dallas/Fort Worth
Area
Westheimer
Portland Oklahoma City
Bastrop Locations
West University
Rockport
23rd Street
Canyon Lake
Arlington
Woodcreek Schulenburg
Expressway
Dime Box
Azle
Sinton
I-240
Dripping Springs
Ennis Katy
Taft
Memorial
Elgin
Gainesville
Cinco Ranch
Weimar
Fredericksburg
Glen Rose Katy-Spring Green
Yoakum Other Central Oklahoma Area
Georgetown
Granbury
Yorktown Locations
Gruene
Grand Prairie The Woodlands
Edmond
Horseshoe Bay
Jacksboro The Woodlands-College Park West Texas Area
Norman
Kingsland
Mesquite The Woodlands-I-45 Abilene
La Grange
Muenster The Woodlands-Research
Forest Antilley Road Tulsa Area
Lexington
Runaway Bay Barrow Street
Tulsa
Marble Falls
Sanger Other Houston Area Cypress Street
Garnett
New Braunfels
Waxahachie Locations
Judge Ely
Harvard
Pleasanton
Weatherford
Angleton Mockingbird
Memorial
Round Rock
Beaumont
Sheridan
San Antonio East Texas Area
Cleveland Amarillo
S. Harvard
Seguin
Athens
Dayton
Hillside
Utica Tower
Smithville
Blooming Grove
Galveston
Soncy
Yale
Thorndale
Canton
Groves
Carthage
Hempstead Lubbock Other Tulsa Area Locations
Dallas/Fort Worth Area
Corsicana
Hitchcock
4th Street
Owasso
Dallas
Crockett
Liberty 66th Street
14th Street Plano
Eustace
Magnolia 82nd Street American Bank -Central Texas
Area
Abrams Centre
Gilmer
Magnolia Parkway 86th Street
Austin Westlake
Addison
Grapeland
Mont Belvieu 110th Street
Concord
Allen Gun Barrel City
Nederland
Avenue Q
Converse
Balch Springs
Jacksonville
Needville
Milwaukee
New Braunfels
Camp Wisdom
Kerens
Rosenberg North University
San Antonio 281
Carrollton
Longview
Shadow Creek Texas Tech Student
Union
Downtown
Cedar Hill
Mount Vernon
Spring
East Central
Coppell
Palestine
Tomball Midland
Universal City
East Plano
Rusk
Waller
North
Frisco
Seven Points
West Columbia
Wadley American Bank -South Texas
Area
Frisco Warren
Teague
Wharton Wall Street
South
Frisco-West
Tyler-Beckham
Winnie
West
Padre Island
Garland Tyler-South Broadway
Wirt
Shoreline
Grapevine Tyler-University Odessa
Port Aransas
Grapevine Main
Winnsboro South Texas Area -
Grant
Alameda
Kiest Corpus Christi Kermit Highway
Bay
Lake Highlands Houston Area
Calallen
Parkway
Saratoga
McKinney Houston
Carmel
Rockport
McKinney Eldorado
Aldine
Northwest San Angelo
Goliad
McKinney Redbud
Alief
Saratoga College Hills
Victoria
Prosperity Bancshares, Inc.(R)
Financial Highlights (Unaudited)
(In thousands)
Dec 31, 2025 Sep 30, 2025 Jun 30, 2025 Mar 31, 2025 Dec 31, 2024
Balance Sheet Data (at period end)
Loans held for sale $
14,155 $
11,297 $
6,004 $
9,764 $
10,690
Loans held for investment 20,486,415 20,738,294 20,903,944 20,909,913 21,057,616
Loans held for investment - Warehouse Purchase Program 1,304,798 1,278,178 1,287,440 1,057,893 1,080,903
Total loans 21,805,368 22,027,769 22,197,388 21,977,570 22,149,209
Investment securities(A) 10,613,425 10,232,462 10,608,104 10,792,731 11,094,424
Federal funds sold 217 210 197 221 292
Allowance for credit losses on loans (333,742) (339,626) (346,084) (349,101) (351,805)
Cash and due from banks 1,747,511 1,766,115 1,304,993 1,694,637 1,972,175
Goodwill 3,503,127 3,503,127 3,503,127 3,503,127 3,503,129
Core deposit intangibles, net 51,605 55,194 58,796 62,406 66,047
Other real estate owned 13,296 13,750 7,874 8,012 5,701
Fixed assets, net 383,449 378,776 374,602 373,273 371,238
Other assets 679,169 692,692 708,355 701,799 756,328
Total assets $
38,463,425 $
38,330,469 $
38,417,352 $
38,764,675 $
39,566,738
Noninterest-bearing deposits $
9,467,911 $
9,522,028 $
9,426,657 $
9,675,915 $
9,798,438
Interest-bearing deposits 19,014,573 18,260,066 18,046,754 18,350,884 18,582,900
Total deposits 28,482,484 27,782,094 27,473,411 28,026,799 28,381,338
Other borrowings 1,950,000 2,400,000 2,900,000 2,700,000 3,200,000
Securities sold under repurchase agreements 201,216 185,797 183,572 216,086 221,913
Allowance for credit losses on off-balance sheet credit exposures 37,646 37,646 37,646 37,646 37,646
Other liabilities 175,939 259,994 222,987 267,083 287,346
Total liabilities 30,847,285 30,665,531 30,817,616 31,247,614 32,128,243
Shareholders' equity(B) 7,616,140 7,664,938 7,599,736 7,517,061 7,438,495
Total liabilities and equity $
38,463,425 $
38,330,469 $
38,417,352 $
38,764,675 $
39,566,738
(A) Includes ($375), ($1,987), ($1,657), ($1,374) and ($2,056) in unrealized losses on available for sale securities for the quarterly periods ended December 31, 2025,
September 30, 2025, June 30, 2025, March 31, 2025, and December 31, 2024, respectively.
(B) Includes ($296), ($1,570), ($1,309), ($1,085) and ($1,624) in after-tax unrealized losses on available for sale securities for the quarterly periods ended December
31, 2025, September 30, 2025, June 30, 2025, March 31, 2025, and December 31, 2024, respectively.
Prosperity Bancshares, Inc.(R)
Financial Highlights (Unaudited)
(In thousands)
Three Months Ended Year-to-Date
Dec 31, Sep 30, Jun 30, Mar 31, Dec 31, Dec 31, Dec 31,
2025 2025 2025 2025 2024 2025 2024
Income Statement Data
Interest income:
Loans $
321,516 $
329,445 $
325,490 $
319,023 $
333,055 $
1,295,474 $
1,313,162
Securities(C) 56,767 58,207 57,836 57,886 58,260 230,696 246,726
Federal funds sold and other earning assets 8,364 10,455 9,438 15,896 19,630 44,153 63,825
Total interest income 386,647 398,107 392,764 392,805 410,945 1,570,323 1,623,713
Interest expense:
Deposits 94,625 95,965 93,790 95,597 102,050 379,977 408,624
Other borrowings 16,028 27,613 30,101 30,492 39,620 104,234 181,640
Securities sold under repurchase agreements 1,041 1,094 1,151 1,334 1,501 4,620 6,954
Total interest expense 111,694 124,672 125,042 127,423 143,171 488,831 597,218
Net interest income 274,953 273,435 267,722 265,382 267,774 1,081,492 1,026,495
Provision for credit losses 9,066
Net interest income after provision for credit losses 274,953 273,435 267,722 265,382 267,774 1,081,492 1,017,429
Noninterest income:
Nonsufficient funds (NSF) fees 9,715 9,805 8,885 9,147 9,960 37,552 35,417
Credit card, debit card and ATM card income 9,462 9,446 9,761 8,739 9,443 37,408 37,308
Service charges on deposit accounts 7,618 7,317 7,645 7,408 6,992 29,988 26,498
Trust income 3,662 3,526 3,859 3,601 3,514 14,648 14,750
Mortgage income 954 931 965 1,009 779 3,859 3,096
Brokerage income 1,570 1,328 1,225 1,262 1,063 5,385 4,742
Bank owned life insurance income 2,117 2,111 1,985 2,115 2,020 8,328 7,980
Net gain (loss) on sale or write-down of assets 35 3 1,414 (235) 584 1,217 2,824
Net gain on sale or write-up of securities 11,245
Other noninterest income 7,647 6,771 7,243 8,255 5,482 29,916 21,949
Total noninterest income 42,780 41,238 42,982 41,301 39,837 168,301 165,809
Noninterest expense:
Salaries and benefits 88,384 87,949 87,296 89,476 88,631 353,105 352,353
Net occupancy and equipment 9,379 9,395 9,168 9,146 8,957 37,088 35,786
Credit and debit card, data processing and 12,621 12,515 12,056 11,422 12,342 48,614 47,300
software amortization
Regulatory assessments and FDIC insurance 1,600 5,198 5,508 5,789 5,789 18,095 27,370
Core deposit intangibles amortization 3,588 3,602 3,610 3,641 4,131 14,441 15,670
Depreciation 5,155 4,966 4,779 4,774 4,791 19,674 19,054
Communications 3,528 3,480 3,507 3,473 3,450 13,988 13,697
Other real estate expense 219 314 204 140 255 877 523
Net loss (gain) on sale or write-down of other 109 (81) (222) (30) (610) (224) (814)
real estate
Merger related expenses 268 62 330 4,444
Other noninterest expense 13,861 11,235 12,659 12,470 13,809 50,225 55,190
Total noninterest expense 138,712 138,635 138,565 140,301 141,545 556,213 570,573
Income before income taxes 179,021 176,038 172,139 166,382 166,066 693,580 612,665
Provision for income taxes 39,114 38,482 36,984 36,157 35,990 150,737 133,279
Net income available to common shareholders $
139,907 $
137,556 $
135,155 $
130,225 $
130,076 $
542,843 $
479,386
(C) Interest income on securities was reduced by net premium amortization of $4,668, $2,877, $4,926, $5,027, and $5,609 for the three months ended December 31, 2025,
September 30, 2025, June 30, 2025, March 31, 2025, and December 31, 2024, respectively, and $17,498 and $22,836 for the year ended December 31, 2025, and 2024,
respectively.
Prosperity Bancshares, Inc. (R)
Financial Highlights (Unaudited)
(Dollars and share amounts in thousands, except per share data and market prices)
Three Months Ended Year-to-Date
Dec 31, Sep 30, Jun 30, Mar 31, Dec 31, Dec 31, Dec 31,
2025 2025 2025 2025 2024 2025 2024
Profitability
Net income (D) (E) $
139,907 $
137,556 $
135,155 $
130,225 $
130,076 $
542,843 $
479,386
Basic earnings per share $
1.49 $
1.45 $
1.42 $
1.37 $
1.37 $
5.72 $
5.05
Diluted earnings per share $
1.49 $
1.45 $
1.42 $
1.37 $
1.37 $
5.72 $
5.05
Return on average assets (F) (J) 1.49 1.44 1.41 1.34 1.31 1.42 1.21
% % % % % % %
Return on average common equity (F) (J) 7.30 7.18 7.13 6.94 7.00 7.14 6.56
% % % % % % %
Return on average tangible common 13.61 13.43 13.44 13.23 13.50 13.43 12.73
% % % % % % %
equity (F) (G) (J)
Tax equivalent net interest margin (D) (E) (H) 3.30 3.24 3.18 3.14 3.05 3.22 2.93
% % % % % % %
Efficiency ratio (G) (I) (K) 43.66 44.06 44.80 45.71 46.10 44.55 48.43
% % % % % % %
Liquidity and Capital Ratios
Equity to assets 19.80 20.00 19.78 19.39 18.80 19.80 18.80
% % % % % % %
Common equity tier 1 capital 17.55 17.53 17.10 16.92 16.42 17.55 16.42
% % % % % % %
Tier 1 risk-based capital 17.55 17.53 17.10 16.92 16.42 17.55 16.42
% % % % % % %
Total risk-based capital 18.80 18.78 18.35 18.17 17.67 18.80 17.67
% % % % % % %
Tier 1 leverage capital 11.93 11.90 11.62 11.20 10.82 11.93 10.82
% % % % % % %
Period end tangible equity to period end 11.63 11.81 11.58 11.23 10.75 11.63 10.75
% % % % % % %
tangible assets (G)
Other Data
Weighted-average shares used in
computing earnings per common share
Basic 94,044 95,093 95,277 95,266 95,264 94,917 95,000
Diluted 94,044 95,093 95,277 95,266 95,264 94,917 95,000
Period end shares outstanding 93,058 94,993 95,277 95,258 95,275 93,058 95,275
Cash dividends paid per common share $
0.60 $
0.58 $
0.58 $
0.58 $
0.58 $
2.34 $
2.26
Book value per common share $
81.84 $
80.69 $
79.76 $
78.91 $
78.07 $
81.84 $
78.07
Tangible book value per common share (G) $
43.64 $
43.23 $
42.38 $
41.48 $
40.61 $
43.64 $
40.61
Common Stock Market Price
High $
73.90 $
75.44 $
74.56 $
82.75 $
86.76 $
82.75 $
86.76
Low $
61.07 $
64.27 $
61.57 $
68.96 $
68.94 $
61.07 $
57.16
Period end closing price $
69.11 $
66.35 $
70.24 $
71.37 $
75.35 $
69.11 $
75.35
Employees - FTE (excluding overtime) 3,941 3,937 3,921 3,898 3,916 3,941 3,916
Number of banking centers 283 283 283 284 283 283 283
(D) Includes purchase accounting adjustments for the periods presented as
follows:
Three Months Ended Year-to-Date
Dec 31, Sep 30, Jun 30, Mar 31, Dec 31, Dec 31, Dec 31,
2025 2025 2025 2025 2024 2025 2024
Loan discount accretion
Non-PCD $2,926 $2,242 $2,486 $2,615 $2,761 $10,269 $12,486
PCD $205 $613 $638 $677 $850 $2,133 $5,004
Securities net accretion $342 $1,475 $409 $705 $528 $2,931 $2,208
Time deposits amortization $(1) $(1) $(2) $(9) $(21) $(13) $(154)
(E) Using effective tax rate of 21.8%, 21.9%, 21.5%, 21.7% and 21.7% for the three months ended December 31, 2025, September 30, 2025, June 30, 2025, March 31, 2025 and
December 31, 2024, respectively, and 21.7% and 21.8% for the year ended December 31, 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.(R)
Financial Highlights (Unaudited)
(Dollars in thousands)
YIELD ANALYSIS
Three Months Ended
Dec 31, 2025
Sep 30, 2025
Dec 31, 2024
Average Interest Average (L) Average Interest Average (L) Average Interest Average (L)
Balance Earned/ Yield/ Balance Earned/ Yield/ Balance Earned/ Yield/
Interest Rate Interest Rate Interest Rate
Paid Paid Paid
Interest-earning assets:
Loans held for sale $
11,077 $
175 6.27 % $
8,371 $
140 6.64 % $
8,571 $
144 6.68 %
Loans held for investment 20,603,235 302,679 5.83 % 20,851,896 309,949 5.90 % 21,038,694 313,863 5.93 %
Loans held for investment - 1,258,036 18,662 5.89 % 1,217,579 19,356 6.31 % 1,137,113 19,048 6.66 %
Warehouse Purchase Program
Total loans 21,872,348 321,516 5.83 % 22,077,846 329,445 5.92 % 22,184,378 333,055 5.97 %
Investment securities 10,378,696 56,767 2.17 % (M) 10,530,807 58,207 2.19 % (M) 11,265,535 58,260 2.06 % (M)
Federal funds sold and other 830,926 8,364 3.99 % 934,318 10,455 4.44 % 1,628,050 19,630 4.80 %
earning assets
Total interest-earning assets 33,081,970 386,647 4.64 % 33,542,971 398,107 4.71 % 35,077,963 410,945 4.66 %
Allowance for credit losses on (337,892) (343,872) (353,560)
loans
Noninterest-earning assets 4,921,850 4,930,764 4,902,996
Total assets $
37,665,928 $
38,129,863 $
39,627,399
Interest-bearing liabilities:
Interest-bearing demand deposits $
4,812,342 $
9,088 0.75 % $
4,656,452 $
8,951 0.76 % $
4,845,174 $
8,535 0.70 %
Savings and money market 9,054,281 44,771 1.96 % 8,977,585 46,934 2.07 % 8,915,410 47,089 2.10 %
deposits
Certificates and other time 4,519,742 40,766 3.58 % 4,422,996 40,080 3.60 % 4,552,445 46,426 4.06 %
deposits
Other borrowings 1,595,652 16,028 3.99 % 2,480,435 27,613 4.42 % 3,332,609 39,620 4.73 %
Securities sold under repurchase 185,289 1,041 2.23 % 187,462 1,094 2.32 % 231,240 1,501 2.58 %
agreements
Total interest-bearing liabilities 20,167,306 111,694 2.20 % (N) 20,724,930 124,672 2.39 % (N) 21,876,878 143,171 2.60 % (N)
Noninterest-bearing liabilities:
Noninterest-bearing demand 9,543,581 9,451,153 9,829,912
deposits
Allowance for credit losses on 37,646 37,646 37,646
off-balance sheet credit
exposures
Other liabilities 248,593 258,156 454,298
Total liabilities 29,997,126 30,471,885 32,198,734
Shareholders' equity 7,668,802 7,657,978 7,428,665
Total liabilities and $
37,665,928 $
38,129,863 $
39,627,399
shareholders' equity
Net interest income and margin $
274,953 3.30 % $
273,435 3.23 % $
267,774 3.04 %
Non-GAAP to GAAP
reconciliation:
Tax equivalent adjustment 514 807 767
Net interest income and margin $
275,467 3.30 % $
274,242 3.24 % $
268,541 3.05 %
(tax equivalent basis)
(L)
Annualized and based on an actual 365-day or 366-day basis.
(M) Yield on securities was impacted by net premium amortization of $4,668, $2,877, and $5,609 for the three months ended December 31, 2025, September 30, 2025, and
December 31, 2024, respectively.
(N) Total cost of funds, including noninterest bearing deposits, was 1.49%, 1.64% and 1.80% for the three months ended December 31, 2025, September 30, 2025, and
December 31, 2024, respectively.
Prosperity Bancshares, Inc.(R)
Financial Highlights (Unaudited)
(Dollars in thousands)
YIELD ANALYSIS
Year-to-Date
Dec 31, 2025
Dec 31, 2024
Average Interest Average (O) Average Interest Average (O)
Balance Earned/ Yield/ Balance Earned/ Yield/
Interest Rate Interest Rate
Paid Paid
Interest-earning assets:
Loans held for sale $
9,215 $
608 6.60 % $
7,603 $
522 6.87 %
Loans held for investment 20,829,523 1,224,368 5.88 % 20,973,042 1,242,836 5.93 %
Loans held for investment - Warehouse Purchase 1,134,031 70,498 6.22 % 973,206 69,804 7.17 %
Program
Total loans 21,972,769 1,295,474 5.90 % 21,953,851 1,313,162 5.98 %
Investment securities 10,696,480 230,696 2.16 % (P) 11,934,793 246,726 2.07 % (P)
Federal funds sold and other earning assets 1,010,707 44,153 4.37 % 1,216,728 63,825 5.25 %
Total interest-earning assets 33,679,956 1,570,323 4.66 % 35,105,372 1,623,713 4.63 %
Allowance for credit losses on loans (345,158) (344,167)
Noninterest-earning assets 4,946,200 4,839,630
Total assets $
38,280,998 $
39,600,835
Interest-bearing liabilities:
Interest-bearing demand deposits $
4,873,634 $
35,917 0.74 % $
4,900,189 $
35,342 0.72 %
Savings and money market deposits 8,996,090 183,146 2.04 % 8,949,010 194,317 2.17 %
Certificates and other time deposits 4,434,168 160,914 3.63 % 4,301,763 178,965 4.16 %
Other borrowings 2,389,589 104,234 4.36 % 3,802,910 181,640 4.78 %
Securities sold under repurchase agreements 196,205 4,620 2.35 % 257,171 6,954 2.70 %
Total interest-bearing liabilities 20,889,686 488,831 2.34 % (Q) 22,211,043 597,218 2.69 % (Q)
Noninterest-bearing liabilities:
Noninterest-bearing demand deposits 9,501,997 9,683,980
Allowance for credit losses on off-balance sheet credit 37,646 37,134
exposures
Other liabilities 246,359 363,607
Total liabilities 30,675,688 32,295,764
Shareholders' equity 7,605,310 7,305,071
Total liabilities and shareholders' equity $
38,280,998 $
39,600,835
Net interest income and margin $
1,081,492 3.21 % $
1,026,495 2.92 %
Non-GAAP to GAAP reconciliation:
Tax equivalent adjustment 2,185 3,183
Net interest income and margin (tax equivalent basis) $
1,083,677 3.22 % $
1,029,678 2.93 %
(O)
Based on an actual 365-day or 366-day basis.
(P) Yield on securities was impacted by net premium amortization of $17,498 and $22,836 for the year ended December 31, 2025, and
2024, respectively.
(Q) Total cost of funds, including noninterest bearing deposits, was 1.61% and 1.87% for the year ended December 31, 2025, and
2024, respectively.
Prosperity Bancshares, Inc.(R)
Financial Highlights (Unaudited)
(Dollars in thousands)
Three Months Ended
Dec 31, 2025 Sep 30, Jun 30, Mar 31,
2025 2025 2025 Dec 31, 2024
YIELD TREND (R)
Interest-Earning Assets:
Loans held for sale 6.27 6.64 6.79 6.80 6.68
% % % % %
Loans held for investment 5.83 5.90 5.88 5.90 5.93
% % % % %
Loans held for investment - Warehouse 5.89 6.31 6.34 6.40 6.66
% % % % %
Purchase Program
Total loans 5.83 5.92 5.91 5.92 5.97
% % % % %
Investment securities (S) 2.17 2.19 2.13 2.13 2.06
% % % % %
Federal funds sold and other earning assets 3.99 4.44 4.50 4.47 4.80
% % % % %
Total interest-earning assets 4.64 4.71 4.66 4.64 4.66
% % % % %
Interest-Bearing Liabilities:
Interest-bearing demand deposits 0.75 0.76 0.74 0.70 0.70
% % % % %
Savings and money market deposits 1.96 2.07 2.05 2.06 2.10
% % % % %
Certificates and other time deposits 3.58 3.60 3.59 3.75 4.06
% % % % %
Other borrowings 3.99 4.42 4.44 4.45 4.73
% % % % %
Securities sold under repurchase agreements 2.23 2.32 2.37 2.48 2.58
% % % % %
Total interest-bearing liabilities 2.20 2.39 2.38 2.39 2.60
% % % % %
Net Interest Margin 3.30 3.23 3.18 3.14 3.04
% % % % %
Net Interest Margin (tax equivalent) 3.30 3.24 3.18 3.14 3.05
% % % % %
(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 $4,668, $2,877, $4,926, $5,027 and $5,609 for the three months ended December 31, 2025, September
30, 2025, June 30, 2025, March 31, 2025, and December 31, 2024, respectively.
Prosperity Bancshares, Inc.(R)
Financial Highlights (Unaudited)
(Dollars in thousands)
Three Months Ended
Dec 31, 2025 Sep 30, 2025 Jun 30, 2025 Mar 31, 2025 Dec 31, 2024
Balance Sheet Averages
Loans held for sale $
11,077 $
8,371 $
9,813 $
7,570 $
8,571
Loans held for investment 20,603,235 20,851,896 20,907,400 20,959,226 21,038,694
Loans held for investment - Warehouse Purchase 1,258,036 1,217,579 1,179,307 876,086 1,137,113
Program
Total loans 21,872,348 22,077,846 22,096,520 21,842,882 22,184,378
Investment securities 10,378,696 10,530,807 10,867,856 11,017,400 11,265,535
Federal funds sold and other earning assets 830,926 934,318 841,933 1,443,220 1,628,050
Total interest-earning assets 33,081,970 33,542,971 33,806,309 34,303,502 35,077,963
Allowance for credit losses on loans (337,892) (343,872) (348,310) (350,715) (353,560)
Cash and due from banks 311,541 291,809 294,379 326,066 317,420
Goodwill 3,503,127 3,503,127 3,503,127 3,503,128 3,505,030
Core deposit intangibles, net 53,553 56,956 60,739 64,293 68,167
Other real estate 14,004 11,533 8,749 7,105 6,778
Fixed assets, net 380,254 377,680 374,486 374,448 373,561
Other assets 659,371 689,659 691,735 729,251 632,040
Total assets $
37,665,928 $
38,129,863 $
38,391,214 $
38,957,078 $
39,627,399
Noninterest-bearing deposits $
9,543,581 $
9,451,153 $
9,508,845 $
9,504,540 $
9,829,912
Interest-bearing demand deposits 4,812,342 4,656,452 4,807,864 5,224,796 4,845,174
Savings and money market deposits 9,054,281 8,977,585 8,944,897 9,007,286 8,915,410
Certificates and other time deposits 4,519,742 4,422,996 4,366,510 4,426,521 4,552,445
Total deposits 27,929,946 27,508,186 27,628,116 28,163,143 28,142,941
Other borrowings 1,595,652 2,480,435 2,717,583 2,776,667 3,332,609
Securities sold under repurchase agreements 185,289 187,462 194,577 217,945 231,240
Allowance for credit losses on off-balance sheet 37,646 37,646 37,646 37,646 37,646
credit exposures
Other liabilities 248,593 258,156 227,002 255,876 454,298
Shareholders' equity 7,668,802 7,657,978 7,586,290 7,505,801 7,428,665
Total liabilities and equity $
37,665,928 $
38,129,863 $
38,391,214 $
38,957,078 $
39,627,399
Prosperity Bancshares, Inc.(R)
Financial Highlights (Unaudited)
(Dollars in thousands)
Dec 31, 2025 Sep 30, 2025 Jun 30, 2025 Mar 31, 2025 Dec 31, 2024
Period End Balances
Loan Portfolio
Commercial and $
1,864,337 8.6 $
1,879,282 8.5 $
1,897,117 8.6 $
1,915,124 8.7 $
1,962,111 8.8
% % % % %
industrial
Warehouse purchase 1,304,798 6.0 1,278,178 5.8 1,287,440 5.8 1,057,893 4.8 1,080,903 4.9
% % % % %
program
Construction, land 2,741,455 12.6 2,865,279 13.0 2,873,238 12.9 2,845,082 13.0 2,859,281 12.9
% % % % %
development and other
land loans
1-4 family residential 7,430,929 34.1 7,461,900 33.9 7,530,816 33.9 7,576,350 34.5 7,581,450 34.2
% % % % %
Home equity 843,708 3.8 848,740 3.9 869,370 3.9 896,529 4.1 906,139 4.1
% % % % %
Commercial real estate 5,776,397 26.5 5,796,937 26.3 5,827,645 26.3 5,783,410 26.3 5,800,985 26.2
% % % % %
(includes multi-family
residential)
Agriculture (includes 1,027,904 4.7 1,019,589 4.6 1,029,250 4.6 1,013,960 4.6 1,033,546 4.7
% % % % %
farmland)
Consumer and other 376,241 1.7 366,027 1.7 368,747 1.7 378,821 1.7 378,817 1.7
% % % % %
Energy 439,599 2.0 511,837 2.3 513,765 2.3 510,401 2.3 545,977 2.5
% % % % %
Total loans $
21,805,368 $
22,027,769 $
22,197,388 $
21,977,570 $
22,149,209
Deposit Types
Noninterest-bearing $
9,467,911 33.2 $
9,522,028 34.3 $
9,426,657 34.3 $
9,675,915 34.5 $
9,798,438 34.5
% % % % %
DDA
Interest-bearing DDA 5,365,795 18.8 4,766,146 17.2 4,708,251 17.1 4,931,769 17.6 5,182,035 18.3
% % % % %
Money market 6,538,213 23.0 6,402,591 23.0 6,302,770 23.0 6,339,509 22.6 6,229,022 21.9
% % % % %
Savings 2,592,873 9.1 2,616,196 9.4 2,667,859 9.7 2,703,736 9.7 2,685,496 9.5
% % % % %
Certificates and other 4,517,692 15.9 4,475,133 16.1 4,367,874 15.9 4,375,870 15.6 4,486,347 15.8
% % % % %
time deposits
Total deposits $
28,482,484 $
27,782,094 $
27,473,411 $
28,026,799 $
28,381,338
Loan to Deposit Ratio 76.6 79.3 80.8 78.4 78.0
% % % % %
Prosperity Bancshares, Inc.(R)
Financial Highlights (Unaudited)
(Dollars in thousands)
Construction Loans
Dec 31, 2025 Sep 30, 2025 Jun 30, 2025 Mar 31, 2025 Dec 31, 2024
Single family residential $
613,288 22.4 $
665,194 23.2 $
696,569 24.2 $
727,417 25.6 $
778,067 27.2
% % % % %
construction
Land development 252,650 9.2 248,616 8.7 227,254 7.9 225,784 7.9 260,158 9.1
% % % % %
Raw land 220,169 8.0 230,021 8.0 248,380 8.7 261,918 9.2 278,892 9.7
% % % % %
Residential lots 199,709 7.3 203,396 7.1 217,835 7.6 219,115 7.7 209,850 7.3
% % % % %
Commercial lots 59,683 2.2 59,853 2.1 55,176 1.9 56,343 2.0 59,044 2.1
% % % % %
Commercial construction and other 1,396,850 50.9 1,459,255 50.9 1,428,985 49.7 1,355,587 47.6 1,274,619 44.6
% % % % %
Net unaccreted discount (894) (1,056) (961) (1,082) (1,349)
Total construction loans $
2,741,455 $
2,865,279 $
2,873,238 $
2,845,082 $
2,859,281
Non-Owner Occupied Commercial Real Estate Loans by Metropolitan Statistical Area (MSA) as of December 31, 2025
Houston Dallas Austin OK City Tulsa Other (T) Total
Collateral Type
Shopping center/retail $
235,413 $
232,707 $
56,771 $
15,277 $
10,103 $
324,838 $
875,109
Commercial and industrial 178,079 99,941 21,201 32,892 11,709 250,095 593,917
buildings
Office buildings 105,380 275,630 67,950 43,406 4,115 97,139 593,620
Medical buildings 105,572 16,583 1,626 42,405 26,358 64,697 257,241
Apartment buildings 163,772 125,836 115,077 10,914 12,734 213,785 642,118
Hotel 111,368 128,965 29,744 13,055 163,981 447,113
Other 175,802 63,257 83,831 5,568 6,767 77,319 412,544
Total $
1,075,386 $
942,919 $
376,200 $
163,517 $
71,786 $
1,191,854 $
3,821,662 (U)
Acquired Loans
Non-PCD Loans
PCD Loans
Total Acquired Loans
Balance at Balance at Balance at Balance at Balance at Balance at Balance at Balance at Balance at
Acquisition Sep 30, Dec 31, Acquisition Sep 30, Dec 31, Acquisition Sep 30, Dec 31,
Date 2025 2025 Date 2025 2025 Date 2025 2025
Loan marks:
Acquired banks (V) $
388,625 $
20,406 $
17,479 $
332,400 $
5,472 $
5,267 $
721,025 $
25,878 $
22,746
Acquired portfolio
loan balances:
Acquired banks (V) 14,323,981 1,609,115 1,498,731 1,376,673 350,644 300,010 15,700,654 (W) 1,959,759 1,798,741
Acquired portfolio $
13,935,356 $
1,588,709 $
1,481,252 $
1,044,273 $
345,172 $
294,743 $
14,979,629 $
1,933,881 $
1,775,995
loan balances less
loan marks
(T)
Includes other MSA and non-MSA regions.
(U)
Represents a portion of total commercial real estate loans of $5.776 billion as of December 31, 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.(R)
Financial Highlights (Unaudited)
(Dollars in thousands)
Three Months Ended Year-to-Date
Dec 31, Sep 30, Jun 30, Mar 31, Dec 31, Dec 31, Dec 31,
2025 2025 2025 2025 2024 2025 2024
Asset Quality
Nonaccrual loans $
137,217 $
105,529 $
102,031 $
73,287 $
73,647 $
137,217 $
73,647
Accruing loans 90 or more days past due 317 268 576 91 2,189 317 2,189
Total nonperforming loans 137,534 105,797 102,607 73,378 75,836 137,534 75,836
Repossessed assets 12 16 6 29 4 12 4
Other real estate 13,296 13,750 7,874 8,012 5,701 13,296 5,701
Total nonperforming assets $
150,842 $
119,563 $
110,487 $
81,419 $
81,541 $
150,842 $
81,541
Nonperforming assets:
Commercial and industrial (includes energy) $
57,237 $
27,880 $
27,680 $
8,966 $
10,080 $
57,237 $
10,080
Construction, land development and other 2,183 583 1,859 1,952 4,481 2,183 4,481
land loans
1-4 family residential (includes home 60,296 57,241 50,501 42,481 44,824 60,296 44,824
equity)
Commercial real estate (includes multi- 9,215 11,471 12,865 12,257 18,861 9,215 18,861
family residential)
Agriculture (includes farmland) 16,713 17,080 17,547 15,725 3,208 16,713 3,208
Consumer and other 5,198 5,308 35 38 87 5,198 87
Total $
150,842 $
119,563 $
110,487 $
81,419 $
81,541 $
150,842 $
81,541
Number of loans/properties 449 424 392 363 368 449 368
Allowance for credit losses on loans $
333,742 $
339,626 $
346,084 $
349,101 $
351,805 $
333,742 $
351,805
Net charge-offs (recoveries):
Commercial and industrial (includes $
5,388 $
3,341 $
1,044 $
330 $
405 $
10,103 $
6,774
energy)
Construction, land development and other (154) 34 (3) (156) 294 (279) 779
land loans
1-4 family residential (includes home 175 853 342 1,051 180 2,421 1,471
equity)
Commercial real estate (includes multi- (665) 1,015 55 178 362 583 222
family residential)
Agriculture (includes farmland) (5) (40) (14) 5 (59) 126
Consumer and other 1,145 1,255 1,593 1,301 1,346 5,294 5,186
Total $
5,884 $
6,458 $
3,017 $
2,704 $
2,592 $
18,063 $
14,558
Asset Quality Ratios
Nonperforming assets to average interest- 0.46 0.36 0.33 0.24 0.23 0.45 0.23
% % % % % % %
earning assets
Nonperforming assets to loans and other real 0.69 0.54 0.50 0.37 0.37 0.69 0.37
% % % % % % %
estate
Net charge-offs to average loans (annualized) 0.11 0.12 0.05 0.05 0.05 0.08 0.07
% % % % % % %
Allowance for credit losses on loans to total 1.53 1.54 1.56 1.59 1.59 1.53 1.59
% % % % % % %
loans
Allowance for credit losses on loans to total 1.63 1.64 1.66 1.67 1.67 1.63 1.67
% % % % % % %
loans, excluding Warehouse Purchase Program
loans (G)
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
Dec 31, Sep 30, Jun 30, Mar 31, Dec 31, Dec 31, Dec 31,
2025 2025 2025 2025 2024 2025 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) $
1.49 $
1.45 $
1.42 $
1.37 $
1.37 $
5.72 $
5.05
Net income $
139,907 $
137,556 $
135,155 $
130,225 $
130,076 $
542,843 $
479,386
Merger related provision for credit losses, net of 7,162
tax(X)
Merger related expenses, net of tax(X) 212 49 261 3,511
FDIC special assessment, net of tax(X) (2,807) (2,807) 2,807
Net gain on sale or write-up of securities, net of (8,884)
tax(X)
Net income excluding merger related provision for $
137,312 $
137,605 $
135,155 $
130,225 $
130,076 $
540,297 $
483,982
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):
Weighted average diluted shares outstanding 94,044 95,093 95,277 95,266 95,264 94,917 95,000
Merger related provision for credit losses, net of tax,
$
$
$
$
$
$ $
0.08
per diluted common share(X)
Merger related expenses, net of tax, per diluted
$
$
$
$
$
$ $
0.04
common share(X)
FDIC special assessment, net of tax, per diluted $
(0.03)
$
$
$
$ $
(0.03) $
0.03
common share(X)
Net gain on sale or write-up of securities, net of tax,
$
$
$
$
$
$ $
(0.09)
per diluted common
share(X)
Diluted earnings per share excluding merger related $
1.46 $
1.45 $
1.42 $
1.37 $
1.37 $
5.69 $
5.11
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)
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) 1.49 1.44 1.41 1.34 1.31 1.42 1.21
% % % % % % %
Net income excluding merger related provision for $
137,312 $
137,605 $
135,155 $
130,225 $
130,076 $
540,297 $
483,982
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):
Average total assets $
37,665,928 $
38,129,863 $
38,391,214 $
38,957,078 $
39,627,399 $
38,280,998 $
39,600,835
Return on average assets excluding merger related 1.46 1.44 1.41 1.34 1.31 1.41 1.22
% % % % % % %
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)
(X) Calculated assuming a federal tax rate of
21.0%.
Three Months Ended Year-to-Date
Dec 31, Sep 30, Jun 30, Mar 31, Dec 31, Dec 31, Dec 31,
2025 2025 2025 2025 2024 2025 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) 7.30 7.18 7.13 6.94 7.00 7.14 6.56
% % % % % % %
Net income excluding merger related provision for $
137,312 $
137,605 $
135,155 $
130,225 $
130,076 $
540,297 $
483,982
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):
Average shareholders' equity $
7,668,802 $
7,657,978 $
7,586,290 $
7,505,801 $
7,428,665 $
7,605,310 $
7,305,071
Return on average common equity excluding merger 7.16 7.19 7.13 6.94 7.00 7.10 6.63
% % % % % % %
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)
Reconciliation of return on average common
equity to return on average tangible common
equity:
Net income $
139,907 $
137,556 $
135,155 $
130,225 $
130,076 $
542,843 $
479,386
Average shareholders' equity $
7,668,802 $
7,657,978 $
7,586,290 $
7,505,801 $
7,428,665 $
7,605,310 $
7,305,071
Less: Average goodwill and other intangible assets (3,556,680) (3,560,083) (3,563,866) (3,567,421) (3,573,197) (3,561,978) (3,537,930)
Average tangible shareholders' equity $
4,112,122 $
4,097,895 $
4,022,424 $
3,938,380 $
3,855,468 $
4,043,332 $
3,767,141
Return on average tangible common equity (F) 13.61 13.43 13.44 13.23 13.50 13.43 12.73
% % % % % % %
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 $
137,312 $
137,605 $
135,155 $
130,225 $
130,076 $
540,297 $
483,982
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):
Average shareholders' equity $
7,668,802 $
7,657,978 $
7,586,290 $
7,505,801 $
7,428,665 $
7,605,310 $
7,305,071
Less: Average goodwill and other intangible assets (3,556,680) (3,560,083) (3,563,866) (3,567,421) (3,573,197) (3,561,978) (3,537,930)
Average tangible shareholders' equity $
4,112,122 $
4,097,895 $
4,022,424 $
3,938,380 $
3,855,468 $
4,043,332 $
3,767,141
Return on average tangible common equity 13.36 13.43 13.44 13.23 13.50 13.36 12.85
% % % % % % %
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)
Reconciliation of book value per share to tangible
book value per share:
Shareholders' equity $
7,616,140 $
7,664,938 $
7,599,736 $
7,517,061 $
7,438,495 $
7,616,140 $
7,438,495
Less: Goodwill and other intangible assets (3,554,732) (3,558,321) (3,561,923) (3,565,533) (3,569,176) (3,554,732) (3,569,176)
Tangible shareholders' equity $
4,061,408 $
4,106,617 $
4,037,813 $
3,951,528 $
3,869,319 $
4,061,408 $
3,869,319
Period end shares outstanding 93,058 94,993 95,277 95,258 95,275 93,058 95,275
Tangible book value per share $
43.64 $
43.23 $
42.38 $
41.48 $
40.61 $
43.64 $
40.61
Three Months Ended Year-to-Date
Dec 31, Sep 30, Jun 30, Mar 31, Dec 31, Dec 31, Dec 31,
2025 2025 2025 2025 2024 2025 2024
Reconciliation of equity to assets ratio to period
end tangible equity to period end tangible assets
ratio:
Tangible shareholders' equity $
4,061,408 $
4,106,617 $
4,037,813 $
3,951,528 $
3,869,319 $
4,061,408 $
3,869,319
Total assets $
38,463,425 $
38,330,469 $
38,417,352 $
38,764,675 $
39,566,738 $
38,463,425 $
39,566,738
Less: Goodwill and other intangible assets (3,554,732) (3,558,321) (3,561,923) (3,565,533) (3,569,176) (3,554,732) (3,569,176)
Tangible assets $
34,908,693 $
34,772,148 $
34,855,429 $
35,199,142 $
35,997,562 $
34,908,693 $
35,997,562
Period end tangible equity to period end tangible 11.63 11.81 11.58 11.23 10.75 11.63 10.75
% % % % % % %
assets ratio
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 $
333,742 $
339,626 $
346,084 $
349,101 $
351,805 $
333,742 $
351,805
Total loans $
21,805,368 $
22,027,769 $
22,197,388 $
21,977,570 $
22,149,209 $
21,805,368 $
22,149,209
Less: Warehouse Purchase Program loans (1,304,798) (1,278,178) (1,287,440) (1,057,893) (1,080,903) (1,304,798) (1,080,903)
Total loans less Warehouse Purchase Program $
20,500,570 $
20,749,591 $
20,909,948 $
20,919,677 $
21,068,306 $
20,500,570 $
21,068,306
Allowance for credit losses on loans to total loans 1.63 1.64 1.66 1.67 1.67 1.63 1.67
% % % % % % %
excluding Warehouse Purchase Program
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 $
138,712 $
138,635 $
138,565 $
140,301 $
141,545 $
556,213 $
570,573
Net interest income $
274,953 $
273,435 $
267,722 $
265,382 $
267,774 $
1,081,492 $
1,026,495
Noninterest income 42,780 41,238 42,982 41,301 39,837 168,301 165,809
Less: net gain (loss) on sale or write-down of 35 3 1,414 (235) 584 1,217 2,824
assets
Less: net gain on sale or write-up of securities 11,245
Noninterest income excluding net gains and losses 42,745 41,235 41,568 41,536 39,253 167,084 151,740
on the sale, write-down or write-up of assets and
securities
Total income excluding net gains and losses on $
317,698 $
314,670 $
309,290 $
306,918 $
307,027 $
1,248,576 $
1,178,235
the sale, write-down or write-up of assets and
securities
Efficiency ratio, excluding net gains and losses on 43.66 44.06 44.80 45.71 46.10 44.55 48.43
% % % % % % %
the sale, write-down or write-up of assets and
securities
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 $
138,712 $
138,635 $
138,565 $
140,301 $
141,545 $
556,213 $
570,573
Less: merger related expenses 268 62 330 4,444
Less: FDIC special assessment (3,554) (3,554) 3,554
Noninterest expense excluding merger related $
141,998 $
138,573 $
138,565 $
140,301 $
141,545 $
559,437 $
562,575
expenses and FDIC special assessment
Net interest income $
274,953 $
273,435 $
267,722 $
265,382 $
267,774 $
1,081,492 $
1,026,495
Noninterest income 42,780 41,238 42,982 41,301 39,837 168,301 165,809
Less: net gain (loss) on sale or write down of 35 3 1,414 (235) 584 1,217 2,824
assets
Less: net gain on sale or write-up of securities 11,245
Noninterest income excluding net gains and losses 42,745 41,235 41,568 41,536 39,253 167,084 151,740
on the sale, write-down or write-up of assets and
securities
Total income excluding net gains and losses on $
317,698 $
314,670 $
309,290 $
306,918 $
307,027 $
1,248,576 $
1,178,235
the sale, write-down or write-up of assets and
securities
Efficiency ratio, excluding net gains and losses on 44.70 44.04 44.80 45.71 46.10 44.81 47.75
% % % % % % %
the sale, write-down or write-up of assets and
securities, merger related expenses and FDIC
special assessment
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SOURCE Prosperity Bancshares, Inc.
https://rt.newswire.ca/rt.gif?NewsItemId=DA71116&Transmission_Id=202601280645PR_NEWS_USPR_____DA71116&DateId=20260128
COMTEX_472503111/1005/2026-01-28T06:45:17