Exhibit 99.1

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PRESS RELEASE

For more information contact:

 

 

Prosperity Bancshares, Inc.®

Cullen Zalman

Prosperity Bank Plaza

Executive Vice President – Banking and Corporate Activities

4295 San Felipe

281.269.7199

Houston, Texas 77027

cullen.zalman@prosperitybankusa.com

FOR IMMEDIATE RELEASE

PROSPERITY BANCSHARES, INC.®

REPORTS SECOND QUARTER

2025 EARNINGS

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

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

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

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

______________

(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.

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

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

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

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

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

The net interest margin on a tax equivalent basis was 3.18% for the three months ended June 30, 2025 compared with 2.94% for the same period in 2024. The change was primarily due to a decrease in the average balances and average rates on other borrowings and a decrease in the average rates on interest-bearing deposits, partially offset by a decrease in the average rates on loans and a decrease in the average balances on investment securities. The net interest margin on a tax equivalent basis was 3.18% for the three months ended June 30, 2025 compared with 3.14% for the three months ended March 31, 2025.

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

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

______________

(2)
Includes purchase accounting adjustments of $2.8 million, net of tax, primarily comprised of loan discount accretion of $3.1 million for the three months ended June 30, 2025.
(3)
Includes purchase accounting adjustments of $6.1 million, net of tax, primarily comprised of loan discount accretion of $7.2 million, merger related provision for credit losses of $9.1 million, merger related expenses of $4.4 million, FDIC special assessment of $3.6 million, and net gain on sale or write-up of securities of $10.7 million for the three months ended June 30, 2024.
(4)
Includes purchase accounting adjustments of $3.2 million, net of tax, primarily comprised of loan discount accretion of $3.3 million for the three months ended March 31, 2025.
(5)
Includes purchase accounting adjustments of $6.0 million, net of tax, primarily comprised of loan discount accretion of $6.4 million for the six months ended June 30, 2025.
(6)
Includes purchase accounting adjustments of $8.1 million, net of tax, primarily comprised of loan discount accretion of $9.1 million, merger related provision for credit losses of $9.1 million, merger related expenses of $4.4 million, FDIC special assessment of $3.6 million, and net gain on sale or write-up of securities of $11.0 million for the six months ended June 30, 2024.

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

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

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

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

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

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

Balance Sheet Information

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

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

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

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

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

 

Balance Sheet Data (at period end)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jun 30, 2025

 

 

Mar 31, 2025

 

 

Dec 31, 2024

 

 

Sep 30, 2024

 

 

Jun 30, 2024

 

 

 

(Unaudited)

 

 

(Unaudited)

 

 

(Unaudited)

 

 

(Unaudited)

 

 

(Unaudited)

 

Loans acquired (including new production since acquisition date):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lone Star Bank

 

$

905,610

 

 

$

976,624

 

 

$

1,057,618

 

 

$

1,109,783

 

 

$

1,084,559

 

Prosperity Bank

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Warehouse Purchase Program loans

 

 

1,287,440

 

 

 

1,057,893

 

 

 

1,080,903

 

 

 

1,228,706

 

 

 

1,081,403

 

All other loans

 

 

20,004,338

 

 

 

19,943,053

 

 

 

20,010,688

 

 

 

20,042,363

 

 

 

20,154,853

 

Total loans

 

$

22,197,388

 

 

$

21,977,570

 

 

$

22,149,209

 

 

$

22,380,852

 

 

$

22,320,815

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits assumed (including new deposits since acquisition date):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lone Star Bank

 

$

940,726

 

 

$

983,280

 

 

$

1,093,536

 

 

$

1,136,216

 

 

$

1,187,821

 

All other deposits

 

 

26,532,685

 

 

 

27,043,519

 

 

 

27,287,802

 

 

 

26,951,395

 

 

 

26,745,265

 

Total deposits

 

$

27,473,411

 

 

$

28,026,799

 

 

$

28,381,338

 

 

$

28,087,611

 

 

$

27,933,086

 

 

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

 

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

Asset Quality

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

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

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

 

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

 

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

Dividend

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

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Agreement to Acquire American Bank Holding Corporation

 

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

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

Conference Call

Prosperity’s management team will host a conference call on Wednesday, July 23, 2025, at 11:30 a.m. Eastern Time (10:30 a.m. Central Time) to discuss Prosperity’s second quarter 2025 earnings. Individuals and investment professionals may participate in the call by dialing 877-883-0383 for domestic participants, or 412-902-6506 for international participants. The participant elite entry number is 9928869.

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

Non-GAAP Financial Measures

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

Prosperity Bancshares, Inc. ®

As of June 30, 2025, Prosperity Bancshares, Inc.® is a $38.417 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

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area including Austin and San Antonio; 45 in the West Texas area including Lubbock, Midland-Odessa, Abilene, Amarillo and Wichita Falls; 15 in the Bryan/College Station area; 6 in the Central Oklahoma area; and 8 in the Tulsa, Oklahoma area.

Cautionary Notes on Forward-Looking Statements

 

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: This release contains statements regarding the proposed transaction between Prosperity and American; future financial and operating results; benefits and synergies of the transaction; future opportunities for Prosperity; the issuance of common stock of Prosperity contemplated by the Merger Agreement; the expected filing by Prosperity with the Securities and Exchange Commission (the “SEC”) of a registration statement on Form S-4 (the “Registration Statement”) and a prospectus of Prosperity and a proxy statement of American to be included therein (the “Proxy Statement/Prospectus”); the expected timing of the closing of the proposed transaction; the ability of the parties to complete the proposed transaction considering the various closing conditions and any other statements about future expectations that constitute forward-looking statements within the meaning of the federal securities laws, including the meaning of the Private Securities Litigation Reform Act of 1995, as amended, Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended. From time to time, oral or written forward-looking statements may also be included in other information released to the public. Such forward-looking statements are typically, but not exclusively, identified by the use in the statements of words or phrases such as “aim,” “anticipate,” “believe,” “estimate,” “expect,” “goal,” “guidance,” “intend,” “is anticipated,” “is expected,” “is intended,” “objective,” “plan,” “projected,” “projection,” “will affect,” “will be,” “will continue,” “will decrease,” “will grow,” “will impact,” “will increase,” “will incur,” “will reduce,” “will remain,” “will result,” “would be,” variations of such words or phrases (including where the word “could,” “may,” or “would” is used rather than the word “will” in a phrase) and similar words and phrases indicating that the statement addresses some future result, occurrence, plan or objective. Forward-looking statements include all statements other than statements of historical fact, including forecasts or trends, and are based on current expectations, assumptions, estimates, and projections about Prosperity and its subsidiaries or related to the proposed transaction and are subject to significant risks and uncertainties that could cause actual results to differ materially from the results expressed in such statements.

 

These forward-looking statements may include information about Prosperity’s possible or assumed future economic performance or future results of operations, including future revenues, income, expenses, provision for credit losses, provision for taxes, effective tax rate, earnings per share and cash flows and Prosperity’s future capital expenditures and dividends, future financial condition and changes therein, including changes in Prosperity’s loan portfolio and allowance for credit losses, changes in deposits, borrowings and the investment securities portfolio, future capital structure or changes therein, as well as the plans and objectives of management for Prosperity’s future operations, future or proposed acquisitions, the future or expected effect of acquisitions on Prosperity’s operations, results of operations, financial condition, and future economic performance, statements about the anticipated benefits of each of the proposed transactions, and statements about the assumptions underlying any such statement. These forward‑looking statements are not guarantees of future performance and are based on expectations and assumptions Prosperity currently believes to be valid. Because forward-looking statements relate to future results and occurrences, many of which are outside of Prosperity’s control, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. These risks and uncertainties include, but are not limited to, whether Prosperity can: successfully identify acquisition targets and integrate the businesses of acquired companies and banks; continue to sustain its current internal growth rate or total growth rate; provide products and services that appeal to its customers; continue to have access to debt and equity capital markets; and achieve its sales objectives. Other risks include, but are not limited to: the possibility that credit quality could deteriorate; actions of competitors; changes in laws and regulations (including changes in governmental interpretations of regulations and changes in accounting standards); the possibility that the anticipated benefits of an acquisition transaction are not realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of two companies or as a result of the strength of the economy and competitive factors generally; a deterioration or downgrade in the credit quality and credit agency ratings of the securities in Prosperity’s securities portfolio; customer and consumer demand, including customer and consumer response to marketing; effectiveness of spending, investments or programs; fluctuations in the cost and availability of supply chain resources; economic conditions, including currency rate, interest rate and commodity price fluctuations; changes in trade policies by the United States or other countries, such as tariffs or retaliatory tariffs; and the effect, impact, potential duration or other implications of weather and climate-related events. Many possible events or factors could adversely affect the future financial results and performance of Prosperity, American or the combined company and could cause those results or performance to differ materially from those expressed in or implied by the forward-looking statements. Such risks and uncertainties include, among others: (1) the risk that the cost savings and synergies from the transaction may not be fully realized or may take longer than anticipated to be realized, (2) disruption to Prosperity’s business and to American’s business as a result of the announcement and pendency of the transaction, (3) the risk that the integration of American’s business and operations into Prosperity, will be materially delayed or will be more costly or difficult than expected, or that Prosperity is otherwise unable to successfully integrate American’s business into its own, including as a result of unexpected factors or events, (4) the failure to obtain the necessary approval by the shareholders of American, (5) the ability by each of Prosperity and American to obtain required governmental approvals of the transaction on the timeline expected, or at all, and the risk that such approvals may result in the imposition of conditions that could adversely affect Prosperity after the closing of the transaction or adversely affect the expected benefits of the

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transaction, (6) reputational risk and the reaction of each company’s customers, suppliers, employees or other business partners to the transaction, (7) the failure of the closing conditions in the Merger Agreement to be satisfied, or any unexpected delay in closing the transaction or the occurrence of any event, change or other circumstances that could give rise to the termination of the Merger Agreement, (8) the dilution caused by the issuance of additional shares of Prosperity’s common stock in the transaction, (9) the possibility that the transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events, (10) the outcome of any legal or regulatory proceedings that may be currently pending or later instituted against Prosperity before or after the transaction, or against American, (11) diversion of management’s attention from ongoing business operations and (12) general competitive, economic, political and market conditions and other factors that may affect future results of Prosperity and American. Prosperity disclaims any obligation to update such factors or to publicly announce the results of any revisions to any of the forward-looking statements included herein to reflect future events or developments. These and various other factors are discussed in Prosperity’s Annual Report on Form 10-K for the year ended December 31, 2024, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K, in each case filed with the SEC, and other reports and statements Prosperity has filed with the SEC. Copies of the SEC filings for Prosperity may be downloaded from the Internet at no charge from http://www.prosperitybankusa.com.

 

Additional Information about the Transaction and Where to Find It

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

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

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

No Offer or Solicitation

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

Page 7


 

 

Bryan/College Station Area

 

Grapevine

 

Seven Points

 

Shadow Creek

 

North University

Bryan

 

Grapevine Main

 

Teague

 

Spring

 

Texas Tech Student Union

Bryan-29th Street

 

Kiest

 

Tyler-Beckham

 

Tomball

 

 

Bryan-East

 

Lake Highlands

 

Tyler-South Broadway

 

Waller

 

Midland

Bryan-North

 

McKinney

 

Tyler-University

 

West Columbia

 

North

Caldwell

 

McKinney Eldorado

 

Winnsboro

 

Wharton

 

Wadley

College Station

 

McKinney Redbud

 

 

 

Winnie

 

Wall Street

Hearne

 

North Carrolton

 

Houston Area

 

Wirt

 

West

Huntsville

 

Park Cities

 

Houston

 

 

 

 

Madisonville

 

Plano

 

Aldine

 

South Texas Area -

 

Odessa

Navasota

 

Plano-West

 

Alief

 

Corpus Christi

 

Grant

New Waverly

 

Preston Forest

 

Bellaire

 

Calallen

 

Kermit Highway

Rock Prairie

 

Preston Parker

 

Beltway

 

Carmel

 

Parkway

Southwest Parkway

 

Preston Royal

 

Clear Lake

 

Northwest

 

 

Tower Point

 

Red Oak

 

Copperfield

 

Saratoga

 

San Angelo

Wellborn Road

 

Richardson

 

Cypress

 

Timbergate

 

College Hills

 

 

Richardson-West

 

Downtown

 

Water Street

 

Sherwood Way

Central Texas Area

 

Rosewood Court

 

Eastex

 

 

 

 

Austin

 

The Colony

 

Fairfield

 

Victoria

 

Wichita Falls

Cedar Park

 

Tollroad

 

First Colony

 

Victoria Main

 

Cattlemans

Congress

 

Trinity Mills

 

Fry Road

 

Victoria-Navarro

 

Kell

Lakeway

 

Turtle Creek

 

Gessner

 

Victoria-North

 

 

Liberty Hill

 

West 15th Plano

 

Gladebrook

 

Victoria Salem

 

Other West Texas Area

Northland

 

West Allen

 

Grand Parkway

 

 

 

Locations

Oak Hill

 

Westmoreland

 

Heights

 

Other South Texas Area

 

Big Spring

Research Blvd

 

Wylie

 

Highway 6 West

 

 Locations

 

Big Spring - East

Westlake

 

 

 

Little York

 

Alice

 

Brownfield

 

 

Fort Worth

 

Medical Center

 

Aransas Pass

 

Brownwood

Other Central Texas Area

 

Haltom City

 

Memorial Drive

 

Bay City

 

Burkburnett

Locations

 

Hulen

 

Northside

 

Beeville

 

Byers

Bastrop

 

Keller

 

Pasadena

 

Colony Creek

 

Cisco

Canyon Lake

 

Museum Place

 

Pecan Grove

 

Cuero

 

Comanche

Dime Box

 

Renaissance Square

 

Pin Oak

 

East Bernard

 

Early

Dripping Springs

 

Roanoke

 

River Oaks

 

Edna

 

Floydada

Elgin

 

Stockyards

 

Sugar Land

 

El Campo

 

Gorman

Flatonia

 

 

 

SW Medical Center

 

Goliad

 

Henrietta

Fredericksburg

 

Other Dallas/Fort Worth Area

 

Tanglewood

 

Gonzales

 

Levelland

Georgetown

 

Locations

 

The Plaza

 

Hallettsville

 

Littlefield

Gruene

 

Arlington

 

Uptown

 

Kingsville

 

Merkel

Horseshoe Bay

 

Azle

 

Waugh Drive

 

Mathis

 

Plainview

Kingsland

 

Ennis

 

Westheimer

 

Padre Island

 

Slaton

La Grange

 

Gainesville

 

West University

 

Palacios

 

Snyder

Lexington

 

Glen Rose

 

Woodcreek

 

Port Lavaca

 

 

Marble Falls

 

Granbury

 

 

 

Portland

 

Oklahoma

New Braunfels

 

Grand Prairie

 

Katy

 

Rockport

 

Central Oklahoma Area

Pleasanton

 

Jacksboro

 

Cinco Ranch

 

Sinton

 

Oklahoma City

Round Rock

 

Mesquite

 

Katy-Spring Green

 

Taft

 

23rd Street

San Antonio

 

Muenster

 

 

 

Yoakum

 

Expressway

Schulenburg

 

Runaway Bay

 

The Woodlands

 

Yorktown

 

I-240

Seguin

 

Sanger

 

The Woodlands-College Park

 

 

 

Memorial

Smithville

 

Waxahachie

 

The Woodlands-I-45

 

West Texas Area

 

 

Thorndale

 

Weatherford

 

The Woodlands-Research Forest

 

Abilene

 

Other Central Oklahoma Area

Weimar

 

 

 

 

 

Antilley Road

 

 Locations

 

 

East Texas Area

 

Other Houston Area

 

Barrow Street

 

Edmond

Dallas/Fort Worth Area

 

Athens

 

Locations

 

Cypress Street

 

Norman

Dallas

 

Blooming Grove

 

Angleton

 

Judge Ely

 

 

14th Street Plano

 

Canton

 

Beaumont

 

Mockingbird

 

Tulsa Area

Abrams Centre

 

Carthage

 

Cleveland

 

 

 

Tulsa

Addison

 

Corsicana

 

Dayton

 

Amarillo

 

Garnett

Allen

 

Crockett

 

Galveston

 

Hillside

 

Harvard

Balch Springs

 

Eustace

 

Groves

 

Soncy

 

Memorial

Camp Wisdom

 

Gilmer

 

Hempstead

 

 

 

Sheridan

Carrollton

 

Grapeland

 

Hitchcock

 

Lubbock

 

S. Harvard

Cedar Hill

 

Gun Barrel City

 

Liberty

 

4th Street

 

Utica Tower

Coppell

 

Jacksonville

 

Magnolia

 

66th Street

 

Yale

East Plano

 

Kerens

 

Magnolia Parkway

 

82nd Street

 

 

Frisco

 

Longview

 

Mont Belvieu

 

86th Street

 

Other Tulsa Area Locations

Frisco Warren

 

Mount Vernon

 

Nederland

 

98th Street

 

Owasso

Frisco-West

 

Palestine

 

Needville

 

Avenue Q

 

 

Garland

 

Rusk

 

Rosenberg

 

Milwaukee

 

 

 

 

- - -

Page 8


 

Prosperity Bancshares, Inc.®

Financial Highlights (Unaudited)

(In thousands)

 

 

Jun 30, 2025

 

 

Mar 31, 2025

 

 

Dec 31, 2024

 

 

Sep 30, 2024

 

 

Jun 30, 2024

 

Balance Sheet Data (at period end)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans held for sale

 

$

6,004

 

 

$

9,764

 

 

$

10,690

 

 

$

6,113

 

 

$

9,951

 

Loans held for investment

 

 

20,903,944

 

 

 

20,909,913

 

 

 

21,057,616

 

 

 

21,146,033

 

 

 

21,229,461

 

Loans held for investment - Warehouse Purchase Program

 

 

1,287,440

 

 

 

1,057,893

 

 

 

1,080,903

 

 

 

1,228,706

 

 

 

1,081,403

 

Total loans

 

 

22,197,388

 

 

 

21,977,570

 

 

 

22,149,209

 

 

 

22,380,852

 

 

 

22,320,815

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities(A)

 

 

10,608,104

 

 

 

10,792,731

 

 

 

11,094,424

 

 

 

11,300,756

 

 

 

11,702,139

 

Federal funds sold

 

 

197

 

 

 

221

 

 

 

292

 

 

 

208

 

 

 

234

 

Allowance for credit losses on loans

 

 

(346,084

)

 

 

(349,101

)

 

 

(351,805

)

 

 

(354,397

)

 

 

(359,852

)

Cash and due from banks

 

 

1,304,993

 

 

 

1,694,637

 

 

 

1,972,175

 

 

 

2,209,863

 

 

 

1,507,604

 

Goodwill

 

 

3,503,127

 

 

 

3,503,127

 

 

 

3,503,129

 

 

 

3,504,388

 

 

 

3,504,107

 

Core deposit intangibles, net

 

 

58,796

 

 

 

62,406

 

 

 

66,047

 

 

 

70,178

 

 

 

74,324

 

Other real estate owned

 

 

7,874

 

 

 

8,012

 

 

 

5,701

 

 

 

5,757

 

 

 

4,960

 

Fixed assets, net

 

 

374,602

 

 

 

373,273

 

 

 

371,238

 

 

 

373,812

 

 

 

377,394

 

Other assets

 

 

708,355

 

 

 

701,799

 

 

 

756,328

 

 

 

623,903

 

 

 

630,569

 

Total assets

 

$

38,417,352

 

 

$

38,764,675

 

 

$

39,566,738

 

 

$

40,115,320

 

 

$

39,762,294

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

$

9,426,657

 

 

$

9,675,915

 

 

$

9,798,438

 

 

$

9,811,361

 

 

$

9,706,505

 

Interest-bearing deposits

 

 

18,046,754

 

 

 

18,350,884

 

 

 

18,582,900

 

 

 

18,276,250

 

 

 

18,226,581

 

Total deposits

 

 

27,473,411

 

 

 

28,026,799

 

 

 

28,381,338

 

 

 

28,087,611

 

 

 

27,933,086

 

Other borrowings

 

 

2,900,000

 

 

 

2,700,000

 

 

 

3,200,000

 

 

 

3,900,000

 

 

 

3,900,000

 

Securities sold under repurchase agreements

 

 

183,572

 

 

 

216,086

 

 

 

221,913

 

 

 

228,896

 

 

 

233,689

 

Allowance for credit losses on off-balance sheet credit exposures

 

 

37,646

 

 

 

37,646

 

 

 

37,646

 

 

 

37,646

 

 

 

37,646

 

Other liabilities

 

 

222,987

 

 

 

267,083

 

 

 

287,346

 

 

 

499,918

 

 

 

374,429

 

Total liabilities

 

 

30,817,616

 

 

 

31,247,614

 

 

 

32,128,243

 

 

 

32,754,071

 

 

 

32,478,850

 

Shareholders' equity(B)

 

 

7,599,736

 

 

 

7,517,061

 

 

 

7,438,495

 

 

 

7,361,249

 

 

 

7,283,444

 

Total liabilities and equity

 

$

38,417,352

 

 

$

38,764,675

 

 

$

39,566,738

 

 

$

40,115,320

 

 

$

39,762,294

 

 

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

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

 

Page 9


 

Prosperity Bancshares, Inc.®

Financial Highlights (Unaudited)

(In thousands)

 

 

 

Three Months Ended

 

 

Year-to-Date

 

 

 

Jun 30,
2025

 

 

Mar 31,
2025

 

 

Dec 31,
2024

 

 

Sep 30,
2024

 

 

Jun 30,
2024

 

 

Jun 30,
2025

 

 

Jun 30,
2024

 

Income Statement Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

$

325,490

 

 

$

319,023

 

 

$

333,055

 

 

$

337,451

 

 

$

336,428

 

 

$

644,513

 

 

$

642,656

 

Securities(C)

 

 

57,836

 

 

 

57,886

 

 

 

58,260

 

 

 

59,617

 

 

 

62,428

 

 

 

115,722

 

 

 

128,849

 

Federal funds sold and other earning assets

 

 

9,438

 

 

 

15,896

 

 

 

19,630

 

 

 

20,835

 

 

 

14,095

 

 

 

25,334

 

 

 

23,360

 

Total interest income

 

 

392,764

 

 

 

392,805

 

 

 

410,945

 

 

 

417,903

 

 

 

412,951

 

 

 

785,569

 

 

 

794,865

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

93,790

 

 

 

95,597

 

 

 

102,050

 

 

 

107,758

 

 

 

106,124

 

 

 

189,387

 

 

 

198,816

 

Other borrowings

 

 

30,101

 

 

 

30,492

 

 

 

39,620

 

 

 

46,792

 

 

 

46,282

 

 

 

60,593

 

 

 

95,228

 

Securities sold under repurchase agreements

 

 

1,151

 

 

 

1,334

 

 

 

1,501

 

 

 

1,662

 

 

 

1,759

 

 

 

2,485

 

 

 

3,791

 

Total interest expense

 

 

125,042

 

 

 

127,423

 

 

 

143,171

 

 

 

156,212

 

 

 

154,165

 

 

 

252,465

 

 

 

297,835

 

Net interest income

 

 

267,722

 

 

 

265,382

 

 

 

267,774

 

 

 

261,691

 

 

 

258,786

 

 

 

533,104

 

 

 

497,030

 

Provision for credit losses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9,066

 

 

 

 

 

 

9,066

 

Net interest income after provision for credit losses

 

 

267,722

 

 

 

265,382

 

 

 

267,774

 

 

 

261,691

 

 

 

249,720

 

 

 

533,104

 

 

 

487,964

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonsufficient funds (NSF) fees

 

 

8,885

 

 

 

9,147

 

 

 

9,960

 

 

 

9,016

 

 

 

8,153

 

 

 

18,032

 

 

 

16,441

 

Credit card, debit card and ATM card income

 

 

9,761

 

 

 

8,739

 

 

 

9,443

 

 

 

9,620

 

 

 

9,384

 

 

 

18,500

 

 

 

18,245

 

Service charges on deposit accounts

 

 

7,645

 

 

 

7,408

 

 

 

6,992

 

 

 

6,664

 

 

 

6,436

 

 

 

15,053

 

 

 

12,842

 

Trust income

 

 

3,859

 

 

 

3,601

 

 

 

3,514

 

 

 

3,479

 

 

 

3,601

 

 

 

7,460

 

 

 

7,757

 

Mortgage income

 

 

965

 

 

 

1,009

 

 

 

779

 

 

 

962

 

 

 

745

 

 

 

1,974

 

 

 

1,355

 

Brokerage income

 

 

1,225

 

 

 

1,262

 

 

 

1,063

 

 

 

1,258

 

 

 

1,186

 

 

 

2,487

 

 

 

2,421

 

Bank owned life insurance income

 

 

1,985

 

 

 

2,115

 

 

 

2,020

 

 

 

2,028

 

 

 

1,885

 

 

 

4,100

 

 

 

3,932

 

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

 

 

1,414

 

 

 

(235

)

 

 

584

 

 

 

3,178

 

 

 

(903

)

 

 

1,179

 

 

 

(938

)

Net gain on sale or write-up of securities

 

 

 

 

 

 

 

 

 

 

 

224

 

 

 

10,723

 

 

 

 

 

 

11,021

 

Other noninterest income

 

 

7,243

 

 

 

8,255

 

 

 

5,482

 

 

 

4,670

 

 

 

4,793

 

 

 

15,498

 

 

 

11,797

 

Total noninterest income

 

 

42,982

 

 

 

41,301

 

 

 

39,837

 

 

 

41,099

 

 

 

46,003

 

 

 

84,283

 

 

 

84,873

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and benefits

 

 

87,296

 

 

 

89,476

 

 

 

88,631

 

 

 

88,367

 

 

 

89,584

 

 

 

176,772

 

 

 

175,355

 

Net occupancy and equipment

 

 

9,168

 

 

 

9,146

 

 

 

8,957

 

 

 

9,291

 

 

 

8,915

 

 

 

18,314

 

 

 

17,538

 

Credit and debit card, data processing and software amortization

 

 

12,056

 

 

 

11,422

 

 

 

12,342

 

 

 

11,985

 

 

 

11,998

 

 

 

23,478

 

 

 

22,973

 

Regulatory assessments and FDIC insurance

 

 

5,508

 

 

 

5,789

 

 

 

5,789

 

 

 

5,726

 

 

 

10,317

 

 

 

11,297

 

 

 

15,855

 

Core deposit intangibles amortization

 

 

3,610

 

 

 

3,641

 

 

 

4,131

 

 

 

4,146

 

 

 

4,156

 

 

 

7,251

 

 

 

7,393

 

Depreciation

 

 

4,779

 

 

 

4,774

 

 

 

4,791

 

 

 

4,741

 

 

 

4,836

 

 

 

9,553

 

 

 

9,522

 

Communications

 

 

3,507

 

 

 

3,473

 

 

 

3,450

 

 

 

3,360

 

 

 

3,485

 

 

 

6,980

 

 

 

6,887

 

Other real estate expense

 

 

204

 

 

 

140

 

 

 

255

 

 

 

12

 

 

 

69

 

 

 

344

 

 

 

256

 

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

 

 

(222

)

 

 

(30

)

 

 

(610

)

 

 

(97

)

 

 

31

 

 

 

(252

)

 

 

(107

)

Merger related expenses

 

 

 

 

 

 

 

 

 

 

 

63

 

 

 

4,381

 

 

 

 

 

 

4,381

 

Other noninterest expense

 

 

12,659

 

 

 

12,470

 

 

 

13,809

 

 

 

12,744

 

 

 

15,070

 

 

 

25,129

 

 

 

28,637

 

Total noninterest expense

 

 

138,565

 

 

 

140,301

 

 

 

141,545

 

 

 

140,338

 

 

 

152,842

 

 

 

278,866

 

 

 

288,690

 

Income before income taxes

 

 

172,139

 

 

 

166,382

 

 

 

166,066

 

 

 

162,452

 

 

 

142,881

 

 

 

338,521

 

 

 

284,147

 

Provision for income taxes

 

 

36,984

 

 

 

36,157

 

 

 

35,990

 

 

 

35,170

 

 

 

31,279

 

 

 

73,141

 

 

 

62,119

 

Net income available to common shareholders

 

$

135,155

 

 

$

130,225

 

 

$

130,076

 

 

$

127,282

 

 

$

111,602

 

 

$

265,380

 

 

$

222,028

 

 

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

Page 10


 

Prosperity Bancshares, Inc. ®

Financial Highlights (Unaudited)

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

 

 

 

Three Months Ended

 

 

Year-to-Date

 

 

 

Jun 30,
2025

 

 

Mar 31,
2025

 

 

Dec 31,
2024

 

 

Sep 30,
2024

 

 

Jun 30,
2024

 

 

Jun 30,
2025

 

 

Jun 30,
2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profitability

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (D) (E)

 

$

135,155

 

 

$

130,225

 

 

$

130,076

 

 

$

127,282

 

 

$

111,602

 

 

$

265,380

 

 

$

222,028

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

1.42

 

 

$

1.37

 

 

$

1.37

 

 

$

1.34

 

 

$

1.17

 

 

$

2.79

 

 

$

2.34

 

Diluted earnings per share

 

$

1.42

 

 

$

1.37

 

 

$

1.37

 

 

$

1.34

 

 

$

1.17

 

 

$

2.79

 

 

$

2.34

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets (F) (J)

 

 

1.41

%

 

 

1.34

%

 

 

1.31

%

 

 

1.28

%

 

 

1.12

%

 

 

1.37

%

 

 

1.13

%

Return on average common equity (F) (J)

 

 

7.13

%

 

 

6.94

%

 

 

7.00

%

 

 

6.93

%

 

 

6.10

%

 

 

7.03

%

 

 

6.15

%

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

 

 

13.44

%

 

 

13.23

%

 

 

13.50

%

 

 

13.50

%

 

 

11.81

%

 

 

13.33

%

 

 

11.93

%

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

 

 

3.18

%

 

 

3.14

%

 

 

3.05

%

 

 

2.95

%

 

 

2.94

%

 

 

3.16

%

 

 

2.87

%

Efficiency ratio (G) (I) (K)

 

 

44.80

%

 

 

45.71

%

 

 

46.10

%

 

 

46.87

%

 

 

51.82

%

 

 

45.26

%

 

 

50.49

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liquidity and Capital Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity to assets

 

 

19.78

%

 

 

19.39

%

 

 

18.80

%

 

 

18.35

%

 

 

18.32

%

 

 

19.78

%

 

 

18.32

%

Common equity tier 1 capital

 

 

17.10

%

 

 

16.92

%

 

 

16.42

%

 

 

15.84

%

 

 

15.42

%

 

 

17.10

%

 

 

15.42

%

Tier 1 risk-based capital

 

 

17.10

%

 

 

16.92

%

 

 

16.42

%

 

 

15.84

%

 

 

15.42

%

 

 

17.10

%

 

 

15.42

%

Total risk-based capital

 

 

18.35

%

 

 

18.17

%

 

 

17.67

%

 

 

17.09

%

 

 

16.67

%

 

 

18.35

%

 

 

16.67

%

Tier 1 leverage capital

 

 

11.62

%

 

 

11.20

%

 

 

10.82

%

 

 

10.52

%

 

 

10.29

%

 

 

11.62

%

 

 

10.29

%

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

 

 

11.58

%

 

 

11.23

%

 

 

10.75

%

 

 

10.36

%

 

 

10.24

%

 

 

11.58

%

 

 

10.24

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average shares used in computing earnings per common share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

95,277

 

 

 

95,266

 

 

 

95,264

 

 

 

95,261

 

 

 

95,765

 

 

 

95,271

 

 

 

94,735

 

Diluted

 

 

95,277

 

 

 

95,266

 

 

 

95,264

 

 

 

95,261

 

 

 

95,765

 

 

 

95,271

 

 

 

94,735

 

Period end shares outstanding

 

 

95,277

 

 

 

95,258

 

 

 

95,275

 

 

 

95,261

 

 

 

95,262

 

 

 

95,277

 

 

 

95,262

 

Cash dividends paid per common share

 

$

0.58

 

 

$

0.58

 

 

$

0.58

 

 

$

0.56

 

 

$

0.56

 

 

$

1.16

 

 

$

1.12

 

Book value per common share

 

$

79.76

 

 

$

78.91

 

 

$

78.07

 

 

$

77.27

 

 

$

76.46

 

 

$

79.76

 

 

$

76.46

 

Tangible book value per common share (G)

 

$

42.38

 

 

$

41.48

 

 

$

40.61

 

 

$

39.75

 

 

$

38.89

 

 

$

42.38

 

 

$

38.89

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Stock Market Price

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

High

 

$

74.56

 

 

$

82.75

 

 

$

86.76

 

 

$

74.87

 

 

$

66.18

 

 

$

82.75

 

 

$

68.88

 

Low

 

$

61.57

 

 

$

68.96

 

 

$

68.94

 

 

$

58.66

 

 

$

57.16

 

 

$

61.57

 

 

$

57.16

 

Period end closing price

 

$

70.24

 

 

$

71.37

 

 

$

75.35

 

 

$

72.07

 

 

$

61.14

 

 

$

70.24

 

 

$

61.14

 

Employees – FTE (excluding overtime)

 

 

3,921

 

 

 

3,898

 

 

 

3,916

 

 

 

3,896

 

 

 

3,902

 

 

 

3,921

 

 

 

3,902

 

Number of banking centers

 

 

283

 

 

 

284

 

 

 

283

 

 

 

287

 

 

 

288

 

 

 

283

 

 

 

288

 

 

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

 

Three Months Ended

 

Year-to-Date

 

Jun 30,

2025

 

Mar 31,

2025

 

Dec 31,

2024

 

Sep 30,

2024

 

Jun 30,

2024

 

Jun 30,

2025

 

Jun 30,

2024

Loan discount accretion

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-PCD

$2,486

 

$2,615

 

$2,761

 

$3,616

 

$4,797

 

$5,101

 

$6,109

PCD

$638

 

$677

 

$850

 

$1,212

 

$2,394

 

$1,315

 

$2,942

Securities net accretion

$409

 

$705

 

$528

 

$555

 

$564

 

$1,114

 

$1,125

Time deposits amortization

$(2)

 

$(9)

 

$(21)

 

$(40)

 

$4

 

$(11)

 

$(93)

 

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

(F) Interim periods annualized.

(G) Refer to the “Notes to Selected Financial Data” at the end of this Earnings Release for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure.

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

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

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

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

Page 11


 

Prosperity Bancshares, Inc.®

Financial Highlights (Unaudited)

(Dollars in thousands)

YIELD ANALYSIS

 

Three Months Ended

 

 

 

Jun 30, 2025

 

Mar 31, 2025

 

Jun 30, 2024

 

 

 

Average
Balance

 

 

Interest
Earned/
Interest
Paid

 

 

Average
Yield/
Rate

(L)

Average
Balance

 

 

Interest
Earned/
Interest
Paid

 

 

Average
Yield/
Rate

(L)

Average
Balance

 

 

Interest
Earned/
Interest
Paid

 

 

Average
Yield/
Rate

(L)

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans held for sale

 

$

9,813

 

 

$

166

 

 

6.79%

 

$

7,570

 

 

$

127

 

 

6.80%

 

$

8,446

 

 

$

149

 

 

7.10%

 

Loans held for investment

 

 

20,907,400

 

 

 

306,671

 

 

5.88%

 

 

20,959,226

 

 

 

305,068

 

 

5.90%

 

 

21,328,824

 

 

 

319,361

 

 

6.02%

 

Loans held for investment - Warehouse Purchase Program

 

 

1,179,307

 

 

 

18,653

 

 

6.34%

 

 

876,086

 

 

 

13,828

 

 

6.40%

 

 

917,026

 

 

 

16,918

 

 

7.42%

 

Total loans

 

 

22,096,520

 

 

 

325,490

 

 

5.91%

 

 

21,842,882

 

 

 

319,023

 

 

5.92%

 

 

22,254,296

 

 

 

336,428

 

 

6.08%

 

Investment securities

 

 

10,867,856

 

 

 

57,836

 

 

2.13%

(M)

 

11,017,400

 

 

 

57,886

 

 

2.13%

(M)

 

12,179,074

 

 

 

62,428

 

 

2.06%

(M)

Federal funds sold and other earning assets

 

 

841,933

 

 

 

9,438

 

 

4.50%

 

 

1,443,220

 

 

 

15,896

 

 

4.47%

 

 

1,026,251

 

 

 

14,095

 

 

5.52%

 

Total interest-earning assets

 

 

33,806,309

 

 

 

392,764

 

 

4.66%

 

 

34,303,502

 

 

 

392,805

 

 

4.64%

 

 

35,459,621

 

 

 

412,951

 

 

4.68%

 

Allowance for credit losses on loans

 

 

(348,310

)

 

 

 

 

 

 

 

(350,715

)

 

 

 

 

 

 

 

(332,904

)

 

 

 

 

 

 

Noninterest-earning assets

 

 

4,933,215

 

 

 

 

 

 

 

 

5,004,291

 

 

 

 

 

 

 

 

4,822,131

 

 

 

 

 

 

 

Total assets

 

$

38,391,214

 

 

 

 

 

 

 

$

38,957,078

 

 

 

 

 

 

 

$

39,948,848

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing demand deposits

 

$

4,807,864

 

 

$

8,859

 

 

0.74%

 

$

5,224,796

 

 

$

9,019

 

 

0.70%

 

$

4,839,194

 

 

$

9,133

 

 

0.76%

 

Savings and money market deposits

 

 

8,944,897

 

 

 

45,796

 

 

2.05%

 

 

9,007,286

 

 

 

45,645

 

 

2.06%

 

 

9,084,051

 

 

 

50,252

 

 

2.22%

 

Certificates and other time deposits

 

 

4,366,510

 

 

 

39,135

 

 

3.59%

 

 

4,426,521

 

 

 

40,933

 

 

3.75%

 

 

4,400,922

 

 

 

46,739

 

 

4.27%

 

Other borrowings

 

 

2,717,583

 

 

 

30,101

 

 

4.44%

 

 

2,776,667

 

 

 

30,492

 

 

4.45%

 

 

3,900,000

 

 

 

46,282

 

 

4.77%

 

Securities sold under repurchase agreements

 

 

194,577

 

 

 

1,151

 

 

2.37%

 

 

217,945

 

 

 

1,334

 

 

2.48%

 

 

258,637

 

 

 

1,759

 

 

2.74%

 

Total interest-bearing liabilities

 

 

21,031,431

 

 

 

125,042

 

 

2.38%

(N)

 

21,653,215

 

 

 

127,423

 

 

2.39%

(N)

 

22,482,804

 

 

 

154,165

 

 

2.76%

(N)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand deposits

 

 

9,508,845

 

 

 

 

 

 

 

 

9,504,540

 

 

 

 

 

 

 

 

9,780,211

 

 

 

 

 

 

 

Allowance for credit losses on off-balance sheet credit exposures

 

 

37,646

 

 

 

 

 

 

 

 

37,646

 

 

 

 

 

 

 

 

36,729

 

 

 

 

 

 

 

Other liabilities

 

 

227,002

 

 

 

 

 

 

 

 

255,876

 

 

 

 

 

 

 

 

327,847

 

 

 

 

 

 

 

Total liabilities

 

 

30,804,924

 

 

 

 

 

 

 

 

31,451,277

 

 

 

 

 

 

 

 

32,627,591

 

 

 

 

 

 

 

Shareholders' equity

 

 

7,586,290

 

 

 

 

 

 

 

 

7,505,801

 

 

 

 

 

 

 

 

7,321,257

 

 

 

 

 

 

 

Total liabilities and shareholders' equity

 

$

38,391,214

 

 

 

 

 

 

 

$

38,957,078

 

 

 

 

 

 

 

$

39,948,848

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income and margin

 

 

 

 

$

267,722

 

 

3.18%

 

 

 

 

$

265,382

 

 

3.14%

 

 

 

 

$

258,786

 

 

2.94%

 

Non-GAAP to GAAP reconciliation:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax equivalent adjustment

 

 

 

 

 

574

 

 

 

 

 

 

 

 

587

 

 

 

 

 

 

 

 

800

 

 

 

 

Net interest income and margin
     (tax equivalent basis)

 

 

 

 

$

268,296

 

 

3.18%

 

 

 

 

$

265,969

 

 

3.14%

 

 

 

 

$

259,586

 

 

2.94%

 

 

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

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

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

 

 

Page 12


 

Prosperity Bancshares, Inc.®

Financial Highlights (Unaudited)

(Dollars in thousands)

YIELD ANALYSIS

 

Year-to-Date

 

 

 

Jun 30, 2025

 

Jun 30, 2024

 

 

 

Average
Balance

 

 

Interest
Earned/
Interest
Paid

 

 

Average
Yield/
Rate

(O)

Average
Balance

 

 

Interest
Earned/
Interest
Paid

 

 

Average
Yield/
Rate

(O)

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans held for sale

 

$

8,698

 

 

$

293

 

 

6.79%

 

$

6,957

 

 

$

241

 

 

6.97%

 

Loans held for investment

 

 

20,933,170

 

 

 

611,739

 

 

5.89%

 

 

20,872,069

 

 

 

612,034

 

 

5.90%

 

Loans held for investment - Warehouse Purchase Program

 

 

1,028,534

 

 

 

32,481

 

 

6.37%

 

 

818,838

 

 

 

30,381

 

 

7.46%

 

Total loans

 

 

21,970,402

 

 

 

644,513

 

 

5.92%

 

 

21,697,864

 

 

 

642,656

 

 

5.96%

 

Investment securities

 

 

10,942,215

 

 

 

115,722

 

 

2.13%

(P)

 

12,436,171

 

 

 

128,849

 

 

2.08%

(P)

Federal funds sold and other earning assets

 

 

1,140,915

 

 

 

25,334

 

 

4.48%

 

 

849,546

 

 

 

23,360

 

 

5.53%

 

Total interest-earning assets

 

 

34,053,532

 

 

 

785,569

 

 

4.65%

 

 

34,983,581

 

 

 

794,865

 

 

4.57%

 

Allowance for credit losses on loans

 

 

(349,506

)

 

 

 

 

 

 

 

(332,306

)

 

 

 

 

 

 

Noninterest-earning assets

 

 

4,967,987

 

 

 

 

 

 

 

 

4,790,888

 

 

 

 

 

 

 

Total assets

 

$

38,672,013

 

 

 

 

 

 

 

$

39,442,163

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing demand deposits

 

$

5,015,178

 

 

$

17,878

 

 

0.72%

 

$

4,991,390

 

 

$

17,556

 

 

0.71%

 

Savings and money market deposits

 

 

8,975,919

 

 

 

91,441

 

 

2.05%

 

 

8,986,565

 

 

 

97,404

 

 

2.18%

 

Certificates and other time deposits

 

 

4,396,350

 

 

 

80,068

 

 

3.67%

 

 

4,042,369

 

 

 

83,856

 

 

4.17%

 

Other borrowings

 

 

2,746,961

 

 

 

60,593

 

 

4.45%

 

 

3,991,566

 

 

 

95,228

 

 

4.80%

 

Securities sold under repurchase agreements

 

 

206,197

 

 

 

2,485

 

 

2.43%

 

 

277,537

 

 

 

3,791

 

 

2.75%

 

Total interest-bearing liabilities

 

 

21,340,605

 

 

 

252,465

 

 

2.39%

(Q)

 

22,289,427

 

 

 

297,835

 

 

2.69%

(Q)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand deposits

 

 

9,506,704

 

 

 

 

 

 

 

 

9,611,730

 

 

 

 

 

 

 

Allowance for credit losses on off-balance sheet credit exposures

 

 

37,646

 

 

 

 

 

 

 

 

36,616

 

 

 

 

 

 

 

Other liabilities

 

 

240,789

 

 

 

 

 

 

 

 

283,139

 

 

 

 

 

 

 

Total liabilities

 

 

31,125,744

 

 

 

 

 

 

 

 

32,220,912

 

 

 

 

 

 

 

Shareholders' equity

 

 

7,546,269

 

 

 

 

 

 

 

 

7,221,251

 

 

 

 

 

 

 

Total liabilities and shareholders' equity

 

$

38,672,013

 

 

 

 

 

 

 

$

39,442,163

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income and margin

 

 

 

 

$

533,104

 

 

3.16%

 

 

 

 

$

497,030

 

 

2.86%

 

Non-GAAP to GAAP reconciliation:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax equivalent adjustment

 

 

 

 

 

1,161

 

 

 

 

 

 

 

 

1,608

 

 

 

 

Net interest income and margin (tax equivalent basis)

 

 

 

 

$

534,265

 

 

3.16%

 

 

 

 

$

498,638

 

 

2.87%

 

 

(O) Based on an actual 365-day or 366-day basis.

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

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

 

Page 13


 

Prosperity Bancshares, Inc.®

Financial Highlights (Unaudited)

(Dollars in thousands)

 

Three Months Ended

 

 

Jun 30, 2025

 

 

Mar 31, 2025

 

 

Dec 31, 2024

 

 

Sep 30, 2024

 

 

Jun 30, 2024

 

YIELD TREND (R)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-Earning Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans held for sale

 

6.79

%

 

 

6.80

%

 

 

6.68

%

 

 

6.89

%

 

 

7.10

%

Loans held for investment

 

5.88

%

 

 

5.90

%

 

 

5.93

%

 

 

5.97

%

 

 

6.02

%

Loans held for investment - Warehouse Purchase Program

 

6.34

%

 

 

6.40

%

 

 

6.66

%

 

 

7.27

%

 

 

7.42

%

Total loans

 

5.91

%

 

 

5.92

%

 

 

5.97

%

 

 

6.04

%

 

 

6.08

%

Investment securities (S)

 

2.13

%

 

 

2.13

%

 

 

2.06

%

 

 

2.04

%

 

 

2.06

%

Federal funds sold and other earning assets

 

4.50

%

 

 

4.47

%

 

 

4.80

%

 

 

5.41

%

 

 

5.52

%

Total interest-earning assets

 

4.66

%

 

 

4.64

%

 

 

4.66

%

 

 

4.70

%

 

 

4.68

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-Bearing Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing demand deposits

 

0.74

%

 

 

0.70

%

 

 

0.70

%

 

 

0.77

%

 

 

0.76

%

Savings and money market deposits

 

2.05

%

 

 

2.06

%

 

 

2.10

%

 

 

2.23

%

 

 

2.22

%

Certificates and other time deposits

 

3.59

%

 

 

3.75

%

 

 

4.06

%

 

 

4.24

%

 

 

4.27

%

Other borrowings

 

4.44

%

 

 

4.45

%

 

 

4.73

%

 

 

4.77

%

 

 

4.77

%

Securities sold under repurchase agreements

 

2.37

%

 

 

2.48

%

 

 

2.58

%

 

 

2.72

%

 

 

2.74

%

Total interest-bearing liabilities

 

2.38

%

 

 

2.39

%

 

 

2.60

%

 

 

2.78

%

 

 

2.76

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Margin

 

3.18

%

 

 

3.14

%

 

 

3.04

%

 

 

2.94

%

 

 

2.94

%

Net Interest Margin (tax equivalent)

 

3.18

%

 

 

3.14

%

 

 

3.05

%

 

 

2.95

%

 

 

2.94

%

 

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

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

Page 14


 

Prosperity Bancshares, Inc.®

Financial Highlights (Unaudited)

(Dollars in thousands)

 

 

Three Months Ended

 

 

 

Jun 30, 2025

 

 

Mar 31, 2025

 

 

Dec 31, 2024

 

 

Sep 30, 2024

 

 

Jun 30, 2024

 

Balance Sheet Averages

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans held for sale

 

$

9,813

 

 

$

7,570

 

 

$

8,571

 

 

$

7,913

 

 

$

8,446

 

Loans held for investment

 

 

20,907,400

 

 

 

20,959,226

 

 

 

21,038,694

 

 

 

21,107,139

 

 

 

21,328,824

 

Loans held for investment - Warehouse Purchase Program

 

 

1,179,307

 

 

 

876,086

 

 

 

1,137,113

 

 

 

1,114,681

 

 

 

917,026

 

Total loans

 

 

22,096,520

 

 

 

21,842,882

 

 

 

22,184,378

 

 

 

22,229,733

 

 

 

22,254,296

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities

 

 

10,867,856

 

 

 

11,017,400

 

 

 

11,265,535

 

 

 

11,612,193

 

 

 

12,179,074

 

Federal funds sold and other earning assets

 

 

841,933

 

 

 

1,443,220

 

 

 

1,628,050

 

 

 

1,531,788

 

 

 

1,026,251

 

Total interest-earning assets

 

 

33,806,309

 

 

 

34,303,502

 

 

 

35,077,963

 

 

 

35,373,714

 

 

 

35,459,621

 

Allowance for credit losses on loans

 

 

(348,310

)

 

 

(350,715

)

 

 

(353,560

)

 

 

(358,237

)

 

 

(332,904

)

Cash and due from banks

 

 

294,379

 

 

 

326,066

 

 

 

317,420

 

 

 

304,911

 

 

 

295,077

 

Goodwill

 

 

3,503,127

 

 

 

3,503,128

 

 

 

3,505,030

 

 

 

3,504,300

 

 

 

3,482,448

 

Core deposit intangibles, net

 

 

60,739

 

 

 

64,293

 

 

 

68,167

 

 

 

72,330

 

 

 

59,979

 

Other real estate

 

 

8,749

 

 

 

7,105

 

 

 

6,778

 

 

 

5,339

 

 

 

3,071

 

Fixed assets, net

 

 

374,486

 

 

 

374,448

 

 

 

373,561

 

 

 

375,626

 

 

 

377,369

 

Other assets

 

 

691,735

 

 

 

729,251

 

 

 

632,040

 

 

 

611,219

 

 

 

604,187

 

Total assets

 

$

38,391,214

 

 

$

38,957,078

 

 

$

39,627,399

 

 

$

39,889,202

 

 

$

39,948,848

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

$

9,508,845

 

 

$

9,504,540

 

 

$

9,829,912

 

 

$

9,680,785

 

 

$

9,780,211

 

Interest-bearing demand deposits

 

 

4,807,864

 

 

 

5,224,796

 

 

 

4,845,174

 

 

 

4,774,975

 

 

 

4,839,194

 

Savings and money market deposits

 

 

8,944,897

 

 

 

9,007,286

 

 

 

8,915,410

 

 

 

8,908,315

 

 

 

9,084,051

 

Certificates and other time deposits

 

 

4,366,510

 

 

 

4,426,521

 

 

 

4,552,445

 

 

 

4,564,232

 

 

 

4,400,922

 

Total deposits

 

 

27,628,116

 

 

 

28,163,143

 

 

 

28,142,941

 

 

 

27,928,307

 

 

 

28,104,378

 

Other borrowings

 

 

2,717,583

 

 

 

2,776,667

 

 

 

3,332,609

 

 

 

3,900,000

 

 

 

3,900,000

 

Securities sold under repurchase agreements

 

 

194,577

 

 

 

217,945

 

 

 

231,240

 

 

 

242,813

 

 

 

258,637

 

Allowance for credit losses on off-balance sheet credit exposures

 

 

37,646

 

 

 

37,646

 

 

 

37,646

 

 

 

37,646

 

 

 

36,729

 

Other liabilities

 

 

227,002

 

 

 

255,876

 

 

 

454,298

 

 

 

433,171

 

 

 

327,847

 

Shareholders' equity

 

 

7,586,290

 

 

 

7,505,801

 

 

 

7,428,665

 

 

 

7,347,265

 

 

 

7,321,257

 

Total liabilities and equity

 

$

38,391,214

 

 

$

38,957,078

 

 

$

39,627,399

 

 

$

39,889,202

 

 

$

39,948,848

 

 

Page 15


 

Prosperity Bancshares, Inc.®

Financial Highlights (Unaudited)

(Dollars in thousands)

 

 

 

Jun 30, 2025

 

 

Mar 31, 2025

 

 

Dec 31, 2024

 

 

Sep 30, 2024

 

 

Jun 30, 2024

 

Period End Balances

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loan Portfolio

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

1,897,117

 

 

8.6

%

 

$

1,915,124

 

 

8.7

%

 

$

1,962,111

 

 

8.8

%

 

$

1,970,844

 

 

8.8

%

 

$

2,023,531

 

 

9.1

%

Warehouse purchase program

 

 

1,287,440

 

 

5.8

%

 

 

1,057,893

 

 

4.8

%

 

 

1,080,903

 

 

4.9

%

 

 

1,228,706

 

 

5.5

%

 

 

1,081,403

 

 

4.8

%

Construction, land development and other land loans

 

 

2,873,238

 

 

12.9

%

 

 

2,845,082

 

 

13.0

%

 

 

2,859,281

 

 

12.9

%

 

 

2,814,521

 

 

12.6

%

 

 

2,828,372

 

 

12.7

%

1-4 family residential

 

 

7,530,816

 

 

33.9

%

 

 

7,576,350

 

 

34.5

%

 

 

7,581,450

 

 

34.2

%

 

 

7,557,858

 

 

33.8

%

 

 

7,496,485

 

 

33.6

%

Home equity

 

 

869,370

 

 

3.9

%

 

 

896,529

 

 

4.1

%

 

 

906,139

 

 

4.1

%

 

 

919,676

 

 

4.1

%

 

 

930,428

 

 

4.2

%

Commercial real estate (includes multi-family residential)

 

 

5,827,645

 

 

26.3

%

 

 

5,783,410

 

 

26.3

%

 

 

5,800,985

 

 

26.2

%

 

 

5,869,687

 

 

26.2

%

 

 

5,961,884

 

 

26.7

%

Agriculture (includes farmland)

 

 

1,029,250

 

 

4.6

%

 

 

1,013,960

 

 

4.6

%

 

 

1,033,546

 

 

4.7

%

 

 

1,033,224

 

 

4.6

%

 

 

1,037,361

 

 

4.6

%

Consumer and other

 

 

368,747

 

 

1.7

%

 

 

378,821

 

 

1.7

%

 

 

378,817

 

 

1.7

%

 

 

413,548

 

 

1.8

%

 

 

340,611

 

 

1.5

%

Energy

 

 

513,765

 

 

2.3

%

 

 

510,401

 

 

2.3

%

 

 

545,977

 

 

2.5

%

 

 

572,788

 

 

2.6

%

 

 

620,740

 

 

2.8

%

Total loans

 

$

22,197,388

 

 

 

 

$

21,977,570

 

 

 

 

$

22,149,209

 

 

 

 

$

22,380,852

 

 

 

 

$

22,320,815

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposit Types

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing DDA

 

$

9,426,657

 

 

34.3

%

 

$

9,675,915

 

 

34.5

%

 

$

9,798,438

 

 

34.5

%

 

$

9,811,361

 

 

34.9

%

 

$

9,706,505

 

 

34.7

%

Interest-bearing DDA

 

 

4,708,251

 

 

17.1

%

 

 

4,931,769

 

 

17.6

%

 

 

5,182,035

 

 

18.3

%

 

 

4,800,758

 

 

17.1

%

 

 

4,762,730

 

 

17.1

%

Money market

 

 

6,302,770

 

 

23.0

%

 

 

6,339,509

 

 

22.6

%

 

 

6,229,022

 

 

21.9

%

 

 

6,166,792

 

 

22.0

%

 

 

6,180,769

 

 

22.1

%

Savings

 

 

2,667,859

 

 

9.7

%

 

 

2,703,736

 

 

9.7

%

 

 

2,685,496

 

 

9.5

%

 

 

2,707,982

 

 

9.6

%

 

 

2,765,197

 

 

9.9

%

Certificates and other time deposits

 

 

4,367,874

 

 

15.9

%

 

 

4,375,870

 

 

15.6

%

 

 

4,486,347

 

 

15.8

%

 

 

4,600,718

 

 

16.4

%

 

 

4,517,885

 

 

16.2

%

Total deposits

 

$

27,473,411

 

 

 

 

$

28,026,799

 

 

 

 

$

28,381,338

 

 

 

 

$

28,087,611

 

 

 

 

$

27,933,086

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loan to Deposit Ratio

 

 

80.8

%

 

 

 

 

78.4

%

 

 

 

 

78.0

%

 

 

 

 

79.7

%

 

 

 

 

79.9

%

 

 

 

Page 16


 

Prosperity Bancshares, Inc.®

Financial Highlights (Unaudited)

(Dollars in thousands)

 

Construction Loans

 

 

Jun 30, 2025

 

 

Mar 31, 2025

 

 

Dec 31, 2024

 

 

Sep 30, 2024

 

 

Jun 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Single family residential construction

 

$

696,569

 

 

24.2

%

 

$

727,417

 

 

25.6

%

 

$

778,067

 

 

27.2

%

 

$

836,571

 

 

29.7

%

 

$

940,381

 

 

33.2

%

Land development

 

 

227,254

 

 

7.9

%

 

 

225,784

 

 

7.9

%

 

 

260,158

 

 

9.1

%

 

 

256,571

 

 

9.1

%

 

 

241,639

 

 

8.5

%

Raw land

 

 

248,380

 

 

8.7

%

 

 

261,918

 

 

9.2

%

 

 

278,892

 

 

9.7

%

 

 

263,411

 

 

9.4

%

 

 

291,112

 

 

10.3

%

Residential lots

 

 

217,835

 

 

7.6

%

 

 

219,115

 

 

7.7

%

 

 

209,850

 

 

7.3

%

 

 

217,920

 

 

7.7

%

 

 

222,343

 

 

7.9

%

Commercial lots

 

 

55,176

 

 

1.9

%

 

 

56,343

 

 

2.0

%

 

 

59,044

 

 

2.1

%

 

 

58,472

 

 

2.1

%

 

 

60,264

 

 

2.1

%

Commercial construction and other

 

 

1,428,985

 

 

49.7

%

 

 

1,355,587

 

 

47.6

%

 

 

1,274,619

 

 

44.6

%

 

 

1,183,127

 

 

42.0

%

 

 

1,074,361

 

 

38.0

%

Net unaccreted discount

 

 

(961

)

 

 

 

 

(1,082

)

 

 

 

 

(1,349

)

 

 

 

 

(1,551

)

 

 

 

 

(1,728

)

 

 

Total construction loans

 

$

2,873,238

 

 

 

 

$

2,845,082

 

 

 

 

$

2,859,281

 

 

 

 

$

2,814,521

 

 

 

 

$

2,828,372

 

 

 

 

 

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

 

Houston

 

 

Dallas

 

 

Austin

 

 

OK City

 

 

Tulsa

 

 

Other (T)

 

 

Total

 

 

Collateral Type

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shopping center/retail

$

332,171

 

 

$

249,400

 

 

$

59,338

 

 

$

15,472

 

 

$

13,024

 

 

$

330,419

 

 

$

999,824

 

 

Commercial and industrial buildings

 

133,239

 

 

 

105,706

 

 

 

22,278

 

 

 

33,130

 

 

 

12,339

 

 

 

274,479

 

 

 

581,171

 

 

Office buildings

 

114,815

 

 

 

269,275

 

 

 

130,691

 

 

 

45,270

 

 

 

4,330

 

 

 

86,538

 

 

 

650,919

 

 

Medical buildings

 

82,882

 

 

 

16,788

 

 

 

1,657

 

 

 

42,053

 

 

 

27,437

 

 

 

71,247

 

 

 

242,064

 

 

Apartment buildings

 

122,871

 

 

 

128,913

 

 

 

64,053

 

 

 

10,615

 

 

 

13,530

 

 

 

208,395

 

 

 

548,377

 

 

Hotel

 

108,149

 

 

 

117,048

 

 

 

30,555

 

 

 

13,625

 

 

 

 

 

 

180,617

 

 

 

449,994

 

 

Other

 

174,929

 

 

 

58,816

 

 

 

20,314

 

 

 

6,182

 

 

 

6,973

 

 

 

97,515

 

 

 

364,729

 

 

Total

$

1,069,056

 

 

$

945,946

 

 

$

328,886

 

 

$

166,347

 

 

$

77,633

 

 

$

1,249,210

 

 

$

3,837,078

 

(U)

 

 

Acquired Loans

 

Non-PCD Loans

 

 

PCD Loans

 

 

Total Acquired Loans

 

 

Balance at
Acquisition
Date

 

 

Balance at
Mar 31,
2025

 

 

Balance at
Jun 30,
2025

 

 

Balance at
Acquisition
Date

 

 

Balance at
Mar 31,
2025

 

 

Balance at
Jun 30,
2025

 

 

Balance at
Acquisition
Date

 

 

Balance at
Mar 31,
2025

 

 

Balance at
Jun 30,
2025

 

Loan marks:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquired banks (V)

$

368,247

 

 

$

13,536

 

 

$

12,813

 

 

$

327,842

 

 

$

5,620

 

 

$

5,237

 

 

$

696,089

 

 

$

19,156

 

 

$

18,050

 

Lone Star Bank (W)

 

20,378

 

 

 

11,714

 

 

 

9,953

 

 

 

4,558

 

 

 

1,093

 

 

 

838

 

 

 

24,936

 

 

 

12,807

 

 

 

10,791

 

Total

 

388,625

 

 

 

25,250

 

 

 

22,766

 

 

 

332,400

 

 

 

6,713

 

 

 

6,075

 

 

 

721,025

 

 

 

31,963

 

 

 

28,841

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquired portfolio loan balances:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquired banks (V)

 

13,307,853

 

 

 

1,281,901

 

 

 

1,223,988

 

 

 

1,317,564

 

 

 

380,484

 

 

 

342,617

 

 

 

14,625,417

 

 

 

1,662,385

 

 

 

1,566,605

 

Lone Star Bank (W)

 

1,016,128

 

 

 

645,440

 

 

 

562,614

 

 

 

59,109

 

 

 

47,559

 

 

 

44,526

 

 

 

1,075,237

 

 

 

692,999

 

 

 

607,140

 

Total

 

14,323,981

 

 

 

1,927,341

 

 

 

1,786,602

 

 

 

1,376,673

 

 

 

428,043

 

 

 

387,143

 

 

 

15,700,654

 

 (X)

 

2,355,384

 

 

 

2,173,745

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquired portfolio loan balances less loan marks

$

13,935,356

 

 

$

1,902,091

 

 

$

1,763,836

 

 

$

1,044,273

 

 

$

421,330

 

 

$

381,068

 

 

$

14,979,629

 

 

$

2,323,421

 

 

$

2,144,904

 

 

(T) Includes other MSA and non-MSA regions.

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

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

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

(X) Actual principal balances acquired.

 

Page 17


 

Prosperity Bancshares, Inc.®

Financial Highlights (Unaudited)

(Dollars in thousands)

 

Three Months Ended

 

 

Year-to-Date

 

 

Jun 30,
2025

 

 

Mar 31,
2025

 

 

Dec 31,
2024

 

 

Sep 30,
2024

 

 

Jun 30,
2024

 

 

Jun 30,
2025

 

 

Jun 30,
2024

 

Asset Quality

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonaccrual loans

$

102,031

 

 

$

73,287

 

 

$

73,647

 

 

$

83,969

 

 

$

84,175

 

 

$

102,031

 

 

$

84,175

 

Accruing loans 90 or more days past due

 

576

 

 

 

91

 

 

 

2,189

 

 

 

20

 

 

 

322

 

 

 

576

 

 

 

322

 

Total nonperforming loans

 

102,607

 

 

 

73,378

 

 

 

75,836

 

 

 

83,989

 

 

 

84,497

 

 

 

102,607

 

 

 

84,497

 

Repossessed assets

 

6

 

 

 

29

 

 

 

4

 

 

 

177

 

 

 

113

 

 

 

6

 

 

 

113

 

Other real estate

 

7,874

 

 

 

8,012

 

 

 

5,701

 

 

 

5,757

 

 

 

4,960

 

 

 

7,874

 

 

 

4,960

 

Total nonperforming assets

$

110,487

 

 

$

81,419

 

 

$

81,541

 

 

$

89,923

 

 

$

89,570

 

 

$

110,487

 

 

$

89,570

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonperforming assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial (includes energy)

$

27,680

 

 

$

8,966

 

 

$

10,080

 

 

$

13,642

 

 

$

16,340

 

 

$

27,680

 

 

$

16,340

 

Construction, land development and other land loans

 

1,859

 

 

 

1,952

 

 

 

4,481

 

 

 

4,053

 

 

 

4,895

 

 

 

1,859

 

 

 

4,895

 

1-4 family residential (includes home equity)

 

50,501

 

 

 

42,481

 

 

 

44,824

 

 

 

36,660

 

 

 

33,935

 

 

 

50,501

 

 

 

33,935

 

Commercial real estate (includes multi-family residential)

 

12,865

 

 

 

12,257

 

 

 

18,861

 

 

 

32,803

 

 

 

31,776

 

 

 

12,865

 

 

 

31,776

 

Agriculture (includes farmland)

 

17,547

 

 

 

15,725

 

 

 

3,208

 

 

 

2,686

 

 

 

2,550

 

 

 

17,547

 

 

 

2,550

 

Consumer and other

 

35

 

 

 

38

 

 

 

87

 

 

 

79

 

 

 

74

 

 

 

35

 

 

 

74

 

Total

$

110,487

 

 

$

81,419

 

 

$

81,541

 

 

$

89,923

 

 

$

89,570

 

 

$

110,487

 

 

$

89,570

 

Number of loans/properties

 

392

 

 

 

363

 

 

 

368

 

 

 

346

 

 

 

349

 

 

 

392

 

 

 

349

 

Allowance for credit losses on loans

$

346,084

 

 

$

349,101

 

 

$

351,805

 

 

$

354,397

 

 

$

359,852

 

 

$

346,084

 

 

$

359,852

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net charge-offs (recoveries):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial (includes energy)

$

1,044

 

 

$

330

 

 

$

405

 

 

$

3,309

 

 

$

2,777

 

 

$

1,374

 

 

$

3,060

 

Construction, land development and other land loans

 

(3

)

 

 

(156

)

 

 

294

 

 

 

378

 

 

 

109

 

 

 

(159

)

 

 

107

 

1-4 family residential (includes home equity)

 

342

 

 

 

1,051

 

 

 

180

 

 

 

409

 

 

 

425

 

 

 

1,393

 

 

 

882

 

Commercial real estate (includes multi-family residential)

 

55

 

 

 

178

 

 

 

362

 

 

 

258

 

 

 

(381

)

 

 

233

 

 

 

(398

)

Agriculture (includes farmland)

 

(14

)

 

 

 

 

 

5

 

 

 

(116

)

 

 

214

 

 

 

(14

)

 

 

237

 

Consumer and other

 

1,593

 

 

 

1,301

 

 

 

1,346

 

 

 

1,217

 

 

 

1,224

 

 

 

2,894

 

 

 

2,623

 

Total

$

3,017

 

 

$

2,704

 

 

$

2,592

 

 

$

5,455

 

 

$

4,368

 

 

$

5,721

 

 

$

6,511

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Quality Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonperforming assets to average interest-earning assets

 

0.33

%

 

 

0.24

%

 

 

0.23

%

 

 

0.25

%

 

 

0.25

%

 

 

0.32

%

 

 

0.26

%

Nonperforming assets to loans and other real estate

 

0.50

%

 

 

0.37

%

 

 

0.37

%

 

 

0.40

%

 

 

0.40

%

 

 

0.50

%

 

 

0.40

%

Net charge-offs to average loans (annualized)

 

0.05

%

 

 

0.05

%

 

 

0.05

%

 

 

0.10

%

 

 

0.08

%

 

 

0.05

%

 

 

0.06

%

Allowance for credit losses on loans to total loans

 

1.56

%

 

 

1.59

%

 

 

1.59

%

 

 

1.58

%

 

 

1.61

%

 

 

1.56

%

 

 

1.61

%

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

 

1.66

%

 

 

1.67

%

 

 

1.67

%

 

 

1.68

%

 

 

1.69

%

 

 

1.66

%

 

 

1.69

%

 

 

Page 18


 

Prosperity Bancshares, Inc.®

Notes to Selected Financial Data (Unaudited)

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

NOTES TO SELECTED FINANCIAL DATA

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

 

 

Three Months Ended

 

 

Year-to-Date

 

 

 

Jun 30,
2025

 

 

Mar 31,
2025

 

 

Dec 31,
2024

 

 

Sep 30,
2024

 

 

Jun 30,
2024

 

 

Jun 30,
2025

 

 

Jun 30,
2024

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share (unadjusted)

 

$

1.42

 

 

$

1.37

 

 

$

1.37

 

 

$

1.34

 

 

$

1.17

 

 

$

2.79

 

 

$

2.34

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

135,155

 

 

$

130,225

 

 

$

130,076

 

 

$

127,282

 

 

$

111,602

 

 

$

265,380

 

 

$

222,028

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7,162

 

 

 

 

 

 

7,162

 

Merger related expenses, net of tax(Z)

 

 

 

 

 

 

 

 

 

 

 

50

 

 

 

3,461

 

 

 

 

 

 

3,461

 

FDIC special assessment, net of tax(Z)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,807

 

 

 

 

 

 

2,807

 

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

 

 

 

 

 

 

 

 

 

 

 

(177

)

 

 

(8,472

)

 

 

 

 

 

(8,707

)

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

 

$

135,155

 

 

$

130,225

 

 

$

130,076

 

 

$

127,155

 

 

$

116,560

 

 

$

265,380

 

 

$

226,751

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average diluted shares outstanding

 

 

95,277

 

 

 

95,266

 

 

 

95,264

 

 

 

95,261

 

 

 

95,765

 

 

 

95,271

 

 

 

94,735

 

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

 

$

 

 

$

 

 

$

 

 

$

 

 

$

0.07

 

 

$

 

 

$

0.07

 

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

 

$

 

 

$

 

 

$

 

 

$

 

 

$

0.04

 

 

$

 

 

$

0.04

 

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

 

$

 

 

$

 

 

$

 

 

$

 

 

$

0.03

 

 

$

 

 

$

0.03

 

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

 

$

 

 

$

 

 

$

 

 

$

 

 

$

(0.09

)

 

$

 

 

$

(0.09

)

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

 

$

1.42

 

 

$

1.37

 

 

$

1.37

 

 

$

1.34

 

 

$

1.22

 

 

$

2.79

 

 

$

2.39

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets (unadjusted)

 

 

1.41

%

 

 

1.34

%

 

 

1.31

%

 

 

1.28

%

 

 

1.12

%

 

 

1.37

%

 

 

1.13

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

135,155

 

 

$

130,225

 

 

$

130,076

 

 

$

127,155

 

 

$

116,560

 

 

$

265,380

 

 

$

226,751

 

Average total assets

 

$

38,391,214

 

 

$

38,957,078

 

 

$

39,627,399

 

 

$

39,889,202

 

 

$

39,948,848

 

 

$

38,672,013

 

 

$

39,442,163

 

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

 

 

1.41

%

 

 

1.34

%

 

 

1.31

%

 

 

1.28

%

 

 

1.17

%

 

 

1.37

%

 

 

1.15

%

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

Page 19


 

 

 

Three Months Ended

 

 

Year-to-Date

 

 

 

Jun 30,
2025

 

 

Mar 31,
2025

 

 

Dec 31,
2024

 

 

Sep 30,
2024

 

 

Jun 30,
2024

 

 

Jun 30,
2025

 

 

Jun 30,
2024

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average common equity (unadjusted)

 

 

7.13

%

 

 

6.94

%

 

 

7.00

%

 

 

6.93

%

 

 

6.10

%

 

 

7.03

%

 

 

6.15

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

135,155

 

 

$

130,225

 

 

$

130,076

 

 

$

127,155

 

 

$

116,560

 

 

$

265,380

 

 

$

226,751

 

Average shareholders' equity

 

$

7,586,290

 

 

$

7,505,801

 

 

$

7,428,665

 

 

$

7,347,265

 

 

$

7,321,257

 

 

$

7,546,269

 

 

$

7,221,251

 

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

 

 

7.13

%

 

 

6.94

%

 

 

7.00

%

 

 

6.92

%

 

 

6.37

%

 

 

7.03

%

 

 

6.28

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

135,155

 

 

$

130,225

 

 

$

130,076

 

 

$

127,282

 

 

$

111,602

 

 

$

265,380

 

 

$

222,028

 

Average shareholders' equity

 

$

7,586,290

 

 

$

7,505,801

 

 

$

7,428,665

 

 

$

7,347,265

 

 

$

7,321,257

 

 

$

7,546,269

 

 

$

7,221,251

 

Less: Average goodwill and other intangible assets

 

 

(3,563,866

)

 

 

(3,567,421

)

 

 

(3,573,197

)

 

 

(3,576,630

)

 

 

(3,542,427

)

 

 

(3,565,634

)

 

 

(3,500,542

)

Average tangible shareholders’ equity

 

$

4,022,424

 

 

$

3,938,380

 

 

$

3,855,468

 

 

$

3,770,635

 

 

$

3,778,830

 

 

$

3,980,635

 

 

$

3,720,709

 

Return on average tangible common equity (F)

 

 

13.44

%

 

 

13.23

%

 

 

13.50

%

 

 

13.50

%

 

 

11.81

%

 

 

13.33

%

 

 

11.93

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

135,155

 

 

$

130,225

 

 

$

130,076

 

 

$

127,155

 

 

$

116,560

 

 

$

265,380

 

 

$

226,751

 

Average shareholders' equity

 

$

7,586,290

 

 

$

7,505,801

 

 

$

7,428,665

 

 

$

7,347,265

 

 

$

7,321,257

 

 

$

7,546,269

 

 

$

7,221,251

 

Less: Average goodwill and other intangible assets

 

 

(3,563,866

)

 

 

(3,567,421

)

 

 

(3,573,197

)

 

 

(3,576,630

)

 

 

(3,542,427

)

 

 

(3,565,634

)

 

 

(3,500,542

)

Average tangible shareholders’ equity

 

$

4,022,424

 

 

$

3,938,380

 

 

$

3,855,468

 

 

$

3,770,635

 

 

$

3,778,830

 

 

$

3,980,635

 

 

$

3,720,709

 

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

 

 

13.44

%

 

 

13.23

%

 

 

13.50

%

 

 

13.49

%

 

 

12.34

%

 

 

13.33

%

 

 

12.19

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders’ equity

 

$

7,599,736

 

 

$

7,517,061

 

 

$

7,438,495

 

 

$

7,361,249

 

 

$

7,283,444

 

 

$

7,599,736

 

 

$

7,283,444

 

Less: Goodwill and other intangible assets

 

 

(3,561,923

)

 

 

(3,565,533

)

 

 

(3,569,176

)

 

 

(3,574,566

)

 

 

(3,578,431

)

 

 

(3,561,923

)

 

 

(3,578,431

)

Tangible shareholders’ equity

 

$

4,037,813

 

 

$

3,951,528

 

 

$

3,869,319

 

 

$

3,786,683

 

 

$

3,705,013

 

 

$

4,037,813

 

 

$

3,705,013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Period end shares outstanding

 

 

95,277

 

 

 

95,258

 

 

 

95,275

 

 

 

95,261

 

 

 

95,262

 

 

 

95,277

 

 

 

95,262

 

Tangible book value per share

 

$

42.38

 

 

$

41.48

 

 

$

40.61

 

 

$

39.75

 

 

$

38.89

 

 

$

42.38

 

 

$

38.89

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible shareholders’ equity

 

$

4,037,813

 

 

$

3,951,528

 

 

$

3,869,319

 

 

$

3,786,683

 

 

$

3,705,013

 

 

$

4,037,813

 

 

$

3,705,013

 

Total assets

 

$

38,417,352

 

 

$

38,764,675

 

 

$

39,566,738

 

 

$

40,115,320

 

 

$

39,762,294

 

 

$

38,417,352

 

 

$

39,762,294

 

Less: Goodwill and other intangible assets

 

 

(3,561,923

)

 

 

(3,565,533

)

 

 

(3,569,176

)

 

 

(3,574,566

)

 

 

(3,578,431

)

 

 

(3,561,923

)

 

 

(3,578,431

)

Tangible assets

 

$

34,855,429

 

 

$

35,199,142

 

 

$

35,997,562

 

 

$

36,540,754

 

 

$

36,183,863

 

 

$

34,855,429

 

 

$

36,183,863

 

Period end tangible equity to period end tangible assets ratio

 

 

11.58

%

 

 

11.23

%

 

 

10.75

%

 

 

10.36

%

 

 

10.24

%

 

 

11.58

%

 

 

10.24

%

 

 

 

 

Page 20


 

 

 

Three Months Ended

 

 

Year-to-Date

 

 

 

Jun 30,
2025

 

 

Mar 31,
2025

 

 

Dec 31,
2024

 

 

Sep 30,
2024

 

 

Jun 30,
2024

 

 

Jun 30,
2025

 

 

Jun 30,
2024

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses on loans

 

$

346,084

 

 

$

349,101

 

 

$

351,805

 

 

$

354,397

 

 

$

359,852

 

 

$

346,084

 

 

$

359,852

 

Total loans

 

$

22,197,388

 

 

$

21,977,570

 

 

$

22,149,209

 

 

$

22,380,852

 

 

$

22,320,815

 

 

$

22,197,388

 

 

$

22,320,815

 

Less: Warehouse Purchase Program loans

 

 

(1,287,440

)

 

 

(1,057,893

)

 

 

(1,080,903

)

 

 

(1,228,706

)

 

 

(1,081,403

)

 

 

(1,287,440

)

 

 

(1,081,403

)

Total loans less Warehouse Purchase Program

 

$

20,909,948

 

 

$

20,919,677

 

 

$

21,068,306

 

 

$

21,152,146

 

 

$

21,239,412

 

 

$

20,909,948

 

 

$

21,239,412

 

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

 

 

1.66

%

 

 

1.67

%

 

 

1.67

%

 

 

1.68

%

 

 

1.69

%

 

 

1.66

%

 

 

1.69

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expense

 

$

138,565

 

 

$

140,301

 

 

$

141,545

 

 

$

140,338

 

 

$

152,842

 

 

$

278,866

 

 

$

288,690

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

267,722

 

 

$

265,382

 

 

$

267,774

 

 

$

261,691

 

 

$

258,786

 

 

$

533,104

 

 

$

497,030

 

Noninterest income

 

 

42,982

 

 

 

41,301

 

 

 

39,837

 

 

 

41,099

 

 

 

46,003

 

 

 

84,283

 

 

 

84,873

 

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

 

 

1,414

 

 

 

(235

)

 

 

584

 

 

 

3,178

 

 

 

(903

)

 

 

1,179

 

 

 

(938

)

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

 

 

 

 

 

 

 

 

 

 

 

224

 

 

 

10,723

 

 

 

 

 

 

11,021

 

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

 

 

41,568

 

 

 

41,536

 

 

 

39,253

 

 

 

37,697

 

 

 

36,183

 

 

 

83,104

 

 

 

74,790

 

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

 

$

309,290

 

 

$

306,918

 

 

$

307,027

 

 

$

299,388

 

 

$

294,969

 

 

$

616,208

 

 

$

571,820

 

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

 

 

44.80

%

 

 

45.71

%

 

 

46.10

%

 

 

46.87

%

 

 

51.82

%

 

 

45.26

%

 

 

50.49

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expense

 

$

138,565

 

 

$

140,301

 

 

$

141,545

 

 

$

140,338

 

 

$

152,842

 

 

$

278,866

 

 

$

288,690

 

Less: merger related expenses

 

 

 

 

 

 

 

 

 

 

 

63

 

 

 

4,381

 

 

 

 

 

 

4,381

 

Less: FDIC special assessment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,554

 

 

 

 

 

 

3,554

 

Noninterest expense excluding merger related expenses and FDIC special assessment

 

$

138,565

 

 

$

140,301

 

 

$

141,545

 

 

$

140,275

 

 

$

144,907

 

 

$

278,866

 

 

$

280,755

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

267,722

 

 

$

265,382

 

 

$

267,774

 

 

$

261,691

 

 

$

258,786

 

 

$

533,104

 

 

$

497,030

 

Noninterest income

 

 

42,982

 

 

 

41,301

 

 

 

39,837

 

 

 

41,099

 

 

 

46,003

 

 

 

84,283

 

 

 

84,873

 

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

 

 

1,414

 

 

 

(235

)

 

 

584

 

 

 

3,178

 

 

 

(903

)

 

 

1,179

 

 

 

(938

)

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

 

 

 

 

 

 

 

 

 

 

 

224

 

 

 

10,723

 

 

 

 

 

 

11,021

 

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

 

 

41,568

 

 

 

41,536

 

 

 

39,253

 

 

 

37,697

 

 

 

36,183

 

 

 

83,104

 

 

 

74,790

 

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

 

$

309,290

 

 

$

306,918

 

 

$

307,027

 

 

$

299,388

 

 

$

294,969

 

 

$

616,208

 

 

$

571,820

 

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

 

 

44.80

%

 

 

45.71

%

 

 

46.10

%

 

 

46.85

%

 

 

49.13

%

 

 

45.26

%

 

 

49.10

%

 

Page 21