Prosperity Bancshares, Inc. Reports Second Quarter 2025 Earnings

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Balance Sheet Information

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

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

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

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

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

Balance Sheet Data (at period end)
(In thousands)
		Jun 30, 2025				Mar 31, 2025				Dec 31, 2024				Sep 30, 2024				Jun 30, 2024
		(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)
Loans acquired (including new production since acquisition date):
Lone Star Bank		$	905,610			$	976,624			$	1,057,618			$	1,109,783			$	1,084,559
Prosperity Bank
Warehouse Purchase Program loans			1,287,440				1,057,893				1,080,903				1,228,706				1,081,403
All other loans			20,004,338				19,943,053				20,010,688				20,042,363				20,154,853
Total loans		$	22,197,388			$	21,977,570			$	22,149,209			$	22,380,852			$	22,320,815
Deposits assumed (including new deposits since acquisition date):
Lone Star Bank		$	940,726			$	983,280			$	1,093,536			$	1,136,216			$	1,187,821
All other deposits			26,532,685				27,043,519				27,287,802				26,951,395				26,745,265
Total deposits		$	27,473,411			$	28,026,799			$	28,381,338			$	28,087,611			$	27,933,086

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

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

Asset Quality

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

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

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

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

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

Dividend

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

Agreement to Acquire American Bank Holding Corporation

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

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

Conference Call

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

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

Non-GAAP Financial Measures

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

Prosperity Bancshares, Inc. ®

As of June 30, 2025, Prosperity Bancshares, Inc.^® is a $38.417 billion Houston, Texas based regional financial holding company providing personal banking services and investments to consumers and businesses throughout Texas and Oklahoma. Founded in 1983, Prosperity believes in a community banking philosophy, taking care of customers, businesses and communities in the areas it serves by providing financial solutions to simplify everyday financial needs. In addition to offering traditional deposit and loan products, Prosperity offers digital banking solutions, credit and debit cards, mortgage services, retail brokerage services, trust and wealth management, and treasury management.

Prosperity currently operates 283 full-service banking locations: 62 in the Houston area, including The Woodlands; 33 in the South Texas area including Corpus Christi and Victoria; 61 in the Dallas/Fort Worth area; 22 in the East Texas area; 31 in the Central Texas area including Austin and San Antonio; 45 in the West Texas area including Lubbock, Midland - Odessa, Abilene, Amarillo and Wichita Falls; 15 in the Bryan/College Station area; 6 in the Central Oklahoma area; and 8 in the Tulsa, Oklahoma area.

Cautionary Notes on Forward-Looking Statements

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

These forward-looking statements may include information about Prosperity's possible or assumed future economic performance or future results of operations, including future revenues, income, expenses, provision for credit losses, provision for taxes, effective tax rate, earnings per share and cash flows and Prosperity's future capital expenditures and dividends, future financial condition and changes therein, including changes in Prosperity's loan portfolio and allowance for credit losses, changes in deposits, borrowings and the investment securities portfolio, future capital structure or changes therein, as well as the plans and objectives of management for Prosperity's future operations, future or proposed acquisitions, the future or expected effect of acquisitions on Prosperity's operations, results of operations, financial condition, and future economic performance, statements about the anticipated benefits of each of the proposed transactions, and statements about the assumptions underlying any such statement. These forward-looking statements are not guarantees of future performance and are based on expectations and assumptions Prosperity currently believes to be valid. Because forward-looking statements relate to future results and occurrences, many of which are outside of Prosperity's control, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. These risks and uncertainties include, but are not limited to, whether Prosperity can: successfully identify acquisition targets and integrate the businesses of acquired companies and banks; continue to sustain its current internal growth rate or total growth rate; provide products and services that appeal to its customers; continue to have access to debt and equity capital markets; and achieve its sales objectives. Other risks include, but are not limited to: the possibility that credit quality could deteriorate; actions of competitors; changes in laws and regulations (including changes in governmental interpretations of regulations and changes in accounting standards); the possibility that the anticipated benefits of an acquisition transaction are not realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of two companies or as a result of the strength of the economy and competitive factors generally; a deterioration or downgrade in the credit quality and credit agency ratings of the securities in Prosperity's securities portfolio; customer and consumer demand, including customer and consumer response to marketing; effectiveness of spending, investments or programs; fluctuations in the cost and availability of supply chain resources; economic conditions, including currency rate, interest rate and commodity price fluctuations; changes in trade policies by the United States or other countries, such as tariffs or retaliatory tariffs; and the effect, impact, potential duration or other implications of weather and climate-related events. Many possible events or factors could adversely affect the future financial results and performance of Prosperity, American or the combined company and could cause those results or performance to differ materially from those expressed in or implied by the forward-looking statements. Such risks and uncertainties include, among others: (1) the risk that the cost savings and synergies from the transaction may not be fully realized or may take longer than anticipated to be realized, (2) disruption to Prosperity's business and to American's business as a result of the announcement and pendency of the transaction, (3) the risk that the integration of American's business and operations into Prosperity, will be materially delayed or will be more costly or difficult than expected, or that Prosperity is otherwise unable to successfully integrate American's business into its own, including as a result of unexpected factors or events, (4) the failure to obtain the necessary approval by the shareholders of American, (5) the ability by each of Prosperity and American to obtain required governmental approvals of the transaction on the timeline expected, or at all, and the risk that such approvals may result in the imposition of conditions that could adversely affect Prosperity after the closing of the transaction or adversely affect the expected benefits of the transaction, (6) reputational risk and the reaction of each company's customers, suppliers, employees or other business partners to the transaction, (7) the failure of the closing conditions in the Merger Agreement to be satisfied, or any unexpected delay in closing the transaction or the occurrence of any event, change or other circumstances that could give rise to the termination of the Merger Agreement, (8) the dilution caused by the issuance of additional shares of Prosperity's common stock in the transaction, (9) the possibility that the transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events, (10) the outcome of any legal or regulatory proceedings that may be currently pending or later instituted against Prosperity before or after the transaction, or against American, (11) diversion of management's attention from ongoing business operations and (12) general competitive, economic, political and market conditions and other factors that may affect future results of Prosperity and American. Prosperity disclaims any obligation to update such factors or to publicly announce the results of any revisions to any of the forward-looking statements included herein to reflect future events or developments. These and various other factors are discussed in Prosperity's Annual Report on Form 10-K for the year ended December 31, 2024, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K, in each case filed with the SEC, and other reports and statements Prosperity has filed with the SEC. Copies of the SEC filings for Prosperity may be downloaded from the Internet at no charge from http://www.prosperitybankusa.com.

Additional Information about the Transaction and Where to Find It

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

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

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

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.

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(1)	Refer to the "Notes to Selected Financial Data" at the end of this Earnings Release for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure.
(2)	Includes purchase accounting adjustments of $2.8 million, net of tax, primarily comprised of loan discount accretion of $3.1 million for the three months ended June 30, 2025.
(3)	Includes purchase accounting adjustments of $6.1 million, net of tax, primarily comprised of loan discount accretion of $7.2 million, merger related provision for credit losses of $9.1 million, merger related expenses of $4.4 million, FDIC special assessment of $3.6 million, and net gain on sale or write-up of securities of $10.7 million for the three months ended June 30, 2024.
(4)	Includes purchase accounting adjustments of $3.2 million, net of tax, primarily comprised of loan discount accretion of $3.3 million for the three months ended March 31, 2025.
(5)	Includes purchase accounting adjustments of $6.0 million, net of tax, primarily comprised of loan discount accretion of $6.4 million for the six months ended June 30, 2025.
(6)	Includes purchase accounting adjustments of $8.1 million, net of tax, primarily comprised of loan discount accretion of $9.1 million, merger related provision for credit losses of $9.1 million, merger related expenses of $4.4 million, FDIC special assessment of $3.6 million, and net gain on sale or write-up of securities of $11.0 million for the six months ended June 30, 2024.

Bryan/College Station Area		Grapevine		Seven Points		Shadow Creek		North University
Bryan		Grapevine Main		Teague		Spring		Texas Tech Student Union
Bryan-29th Street		Kiest		Tyler-Beckham		Tomball
Bryan-East		Lake Highlands		Tyler-South Broadway		Waller		Midland
Bryan-North		McKinney		Tyler-University		West Columbia		North
Caldwell		McKinney Eldorado		Winnsboro		Wharton		Wadley
College Station		McKinney Redbud				Winnie		Wall Street
Hearne		North Carrolton		Houston Area		Wirt		West
Huntsville		Park Cities		Houston
Madisonville		Plano		Aldine		South Texas Area -		Odessa
Navasota		Plano-West		Alief		Corpus Christi		Grant
New Waverly		Preston Forest		Bellaire		Calallen		Kermit Highway
Rock Prairie		Preston Parker		Beltway		Carmel		Parkway
Southwest Parkway		Preston Royal		Clear Lake		Northwest
Tower Point		Red Oak		Copperfield		Saratoga		San Angelo
Wellborn Road		Richardson		Cypress		Timbergate		College Hills
		Richardson-West		Downtown		Water Street		Sherwood Way
Central Texas Area		Rosewood Court		Eastex
Austin		The Colony		Fairfield		Victoria		Wichita Falls
Cedar Park		Tollroad		First Colony		Victoria Main		Cattlemans
Congress		Trinity Mills		Fry Road		Victoria-Navarro		Kell
Lakeway		Turtle Creek		Gessner		Victoria-North
Liberty Hill		West 15th Plano		Gladebrook		Victoria Salem		Other West Texas Area
Northland		West Allen		Grand Parkway				Locations
Oak Hill		Westmoreland		Heights		Other South Texas Area		Big Spring
Research Blvd		Wylie		Highway 6 West		Locations		Big Spring - East
Westlake				Little York		Alice		Brownfield
		Fort Worth		Medical Center		Aransas Pass		Brownwood
Other Central Texas Area		Haltom City		Memorial Drive		Bay City		Burkburnett
Locations		Hulen		Northside		Beeville		Byers
Bastrop		Keller		Pasadena		Colony Creek		Cisco
Canyon Lake		Museum Place		Pecan Grove		Cuero		Comanche
Dime Box		Renaissance Square		Pin Oak		East Bernard		Early
Dripping Springs		Roanoke		River Oaks		Edna		Floydada
Elgin		Stockyards		Sugar Land		El Campo		Gorman
Flatonia				SW Medical Center		Goliad		Henrietta
Fredericksburg		Other Dallas/Fort Worth Area		Tanglewood		Gonzales		Levelland
Georgetown		Locations		The Plaza		Hallettsville		Littlefield
Gruene		Arlington		Uptown		Kingsville		Merkel
Horseshoe Bay		Azle		Waugh Drive		Mathis		Plainview
Kingsland		Ennis		Westheimer		Padre Island		Slaton
La Grange		Gainesville		West University		Palacios		Snyder
Lexington		Glen Rose		Woodcreek		Port Lavaca
Marble Falls		Granbury				Portland		Oklahoma
New Braunfels		Grand Prairie		Katy		Rockport		Central Oklahoma Area
Pleasanton		Jacksboro		Cinco Ranch		Sinton		Oklahoma City
Round Rock		Mesquite		Katy-Spring Green		Taft		23rd Street
San Antonio		Muenster				Yoakum		Expressway
Schulenburg		Runaway Bay		The Woodlands		Yorktown		I-240
Seguin		Sanger		The Woodlands-College Park				Memorial
Smithville		Waxahachie		The Woodlands-I-45		West Texas Area
Thorndale		Weatherford		The Woodlands-Research Forest		Abilene		Other Central Oklahoma Area
Weimar						Antilley Road		Locations
		East Texas Area		Other Houston Area		Barrow Street		Edmond
Dallas/Fort Worth Area		Athens		Locations		Cypress Street		Norman
Dallas		Blooming Grove		Angleton		Judge Ely
14th Street Plano		Canton		Beaumont		Mockingbird		Tulsa Area
Abrams Centre		Carthage		Cleveland				Tulsa
Addison		Corsicana		Dayton		Amarillo		Garnett
Allen		Crockett		Galveston		Hillside		Harvard
Balch Springs		Eustace		Groves		Soncy		Memorial
Camp Wisdom		Gilmer		Hempstead				Sheridan
Carrollton		Grapeland		Hitchcock		Lubbock		S. Harvard
Cedar Hill		Gun Barrel City		Liberty		4th Street		Utica Tower
Coppell		Jacksonville		Magnolia		66th Street		Yale
East Plano		Kerens		Magnolia Parkway		82nd Street
Frisco		Longview		Mont Belvieu		86th Street		Other Tulsa Area Locations
Frisco Warren		Mount Vernon		Nederland		98th Street		Owasso
Frisco-West		Palestine		Needville		Avenue Q
Garland		Rusk		Rosenberg		Milwaukee

Prosperity Bancshares, Inc. ®
Financial Highlights (Unaudited)
(In thousands)
		Jun 30, 2025				Mar 31, 2025				Dec 31, 2024				Sep 30, 2024				Jun 30, 2024
Balance Sheet Data (at period end)
Loans held for sale		$	6,004			$	9,764			$	10,690			$	6,113			$	9,951
Loans held for investment			20,903,944				20,909,913				21,057,616				21,146,033				21,229,461
Loans held for investment - Warehouse Purchase Program			1,287,440				1,057,893				1,080,903				1,228,706				1,081,403
Total loans			22,197,388				21,977,570				22,149,209				22,380,852				22,320,815
Investment securities(A)			10,608,104				10,792,731				11,094,424				11,300,756				11,702,139
Federal funds sold			197				221				292				208				234
Allowance for credit losses on loans			(346,084)				(349,101)				(351,805)				(354,397)				(359,852)
Cash and due from banks			1,304,993				1,694,637				1,972,175				2,209,863				1,507,604
Goodwill			3,503,127				3,503,127				3,503,129				3,504,388				3,504,107
Core deposit intangibles, net			58,796				62,406				66,047				70,178				74,324
Other real estate owned			7,874				8,012				5,701				5,757				4,960
Fixed assets, net			374,602				373,273				371,238				373,812				377,394
Other assets			708,355				701,799				756,328				623,903				630,569
Total assets		$	38,417,352			$	38,764,675			$	39,566,738			$	40,115,320			$	39,762,294
Noninterest-bearing deposits		$	9,426,657			$	9,675,915			$	9,798,438			$	9,811,361			$	9,706,505
Interest-bearing deposits			18,046,754				18,350,884				18,582,900				18,276,250				18,226,581
Total deposits			27,473,411				28,026,799				28,381,338				28,087,611				27,933,086
Other borrowings			2,900,000				2,700,000				3,200,000				3,900,000				3,900,000
Securities sold under repurchase agreements			183,572				216,086				221,913				228,896				233,689
Allowance for credit losses on off-balance sheet credit exposures			37,646				37,646				37,646				37,646				37,646
Other liabilities			222,987				267,083				287,346				499,918				374,429
Total liabilities			30,817,616				31,247,614				32,128,243				32,754,071				32,478,850
Shareholders' equity(B)			7,599,736				7,517,061				7,438,495				7,361,249				7,283,444
Total liabilities and equity		$	38,417,352			$	38,764,675			$	39,566,738			$	40,115,320			$	39,762,294

(A)	Includes $(1,657), $(1,374), $(2,056), $(1,070) and $(2,007) in unrealized losses on available for sale securities for the quarterly periods ended June 30, 2025, March 31, 2025, December 31, 2024, September 30, 2024 and June 30, 2024, respectively.
(B)	Includes $(1,309), $(1,085), $(1,624), $(845) and $(1,586) in after-tax unrealized losses on available for sale securities for the quarterly periods ended June 30, 2025, March 31, 2025, December 31, 2024, September 30, 2024 and June 30, 2024, respectively.

Prosperity Bancshares, Inc. ®
Financial Highlights (Unaudited)
(In thousands)
		Three Months Ended																				Year-to-Date
		Jun 30, 2025				Mar 31, 2025				Dec 31, 2024				Sep 30, 2024				Jun 30, 2024				Jun 30, 2025				Jun 30, 2024
Income Statement Data
Interest income:
Loans		$	325,490			$	319,023			$	333,055			$	337,451			$	336,428			$	644,513			$	642,656
Securities(C)			57,836				57,886				58,260				59,617				62,428				115,722				128,849
Federal funds sold and other earning assets			9,438				15,896				19,630				20,835				14,095				25,334				23,360
Total interest income			392,764				392,805				410,945				417,903				412,951				785,569				794,865
Interest expense:
Deposits			93,790				95,597				102,050				107,758				106,124				189,387				198,816
Other borrowings			30,101				30,492				39,620				46,792				46,282				60,593				95,228
Securities sold under repurchase agreements			1,151				1,334				1,501				1,662				1,759				2,485				3,791
Total interest expense			125,042				127,423				143,171				156,212				154,165				252,465				297,835
Net interest income			267,722				265,382				267,774				261,691				258,786				533,104				497,030
Provision for credit losses			-				-				-				-				9,066				-				9,066
Net interest income after provision for credit losses			267,722				265,382				267,774				261,691				249,720				533,104				487,964
Noninterest income:
Nonsufficient funds (NSF) fees			8,885				9,147				9,960				9,016				8,153				18,032				16,441
Credit card, debit card and ATM card income			9,761				8,739				9,443				9,620				9,384				18,500				18,245
Service charges on deposit accounts			7,645				7,408				6,992				6,664				6,436				15,053				12,842
Trust income			3,859				3,601				3,514				3,479				3,601				7,460				7,757
Mortgage income			965				1,009				779				962				745				1,974				1,355
Brokerage income			1,225				1,262				1,063				1,258				1,186				2,487				2,421
Bank owned life insurance income			1,985				2,115				2,020				2,028				1,885				4,100				3,932
Net gain (loss) on sale or write-down of assets			1,414				(235)				584				3,178				(903)				1,179				(938)
Net gain on sale or write-up of securities			-				-				-				224				10,723				-				11,021
Other noninterest income			7,243				8,255				5,482				4,670				4,793				15,498				11,797
Total noninterest income			42,982				41,301				39,837				41,099				46,003				84,283				84,873
Noninterest expense:
Salaries and benefits			87,296				89,476				88,631				88,367				89,584				176,772				175,355
Net occupancy and equipment			9,168				9,146				8,957				9,291				8,915				18,314				17,538
Credit and debit card, data processing and software amortization			12,056				11,422				12,342				11,985				11,998				23,478				22,973
Regulatory assessments and FDIC insurance			5,508				5,789				5,789				5,726				10,317				11,297				15,855
Core deposit intangibles amortization			3,610				3,641				4,131				4,146				4,156				7,251				7,393
Depreciation			4,779				4,774				4,791				4,741				4,836				9,553				9,522
Communications			3,507				3,473				3,450				3,360				3,485				6,980				6,887
Other real estate expense			204				140				255				12				69				344				256
Net (gain) loss on sale or write-down of other real estate			(222)				(30)				(610)				(97)				31				(252)				(107)
Merger related expenses			-				-				-				63				4,381				-				4,381
Other noninterest expense			12,659				12,470				13,809				12,744				15,070				25,129				28,637
Total noninterest expense			138,565				140,301				141,545				140,338				152,842				278,866				288,690
Income before income taxes			172,139				166,382				166,066				162,452				142,881				338,521				284,147
Provision for income taxes			36,984				36,157				35,990				35,170				31,279				73,141				62,119
Net income available to common shareholders		$	135,155			$	130,225			$	130,076			$	127,282			$	111,602			$	265,380			$	222,028

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

Prosperity Bancshares, Inc. ®
Financial Highlights (Unaudited)
(Dollars and share amounts in thousands, except per share data and market prices)
		Three Months Ended																				Year-to-Date
		Jun 30, 2025				Mar 31, 2025				Dec 31, 2024				Sep 30, 2024				Jun 30, 2024				Jun 30, 2025				Jun 30, 2024
Profitability
Net income (D) (E)		$	135,155			$	130,225			$	130,076			$	127,282			$	111,602			$	265,380			$	222,028
Basic earnings per share		$	1.42			$	1.37			$	1.37			$	1.34			$	1.17			$	2.79			$	2.34
Diluted earnings per share		$	1.42			$	1.37			$	1.37			$	1.34			$	1.17			$	2.79			$	2.34
Return on average assets (F)(J)			1.41	%			1.34	%			1.31	%			1.28	%			1.12	%			1.37	%			1.13	%
Return on average common equity (F)(J)			7.13	%			6.94	%			7.00	%			6.93	%			6.10	%			7.03	%			6.15	%
Return on average tangible common equity (F) (G)(J)			13.44	%			13.23	%			13.50	%			13.50	%			11.81	%			13.33	%			11.93	%
Tax equivalent net interest margin (D) (E) (H)			3.18	%			3.14	%			3.05	%			2.95	%			2.94	%			3.16	%			2.87	%
Efficiency ratio (G) (I)(K)			44.80	%			45.71	%			46.10	%			46.87	%			51.82	%			45.26	%			50.49	%
Liquidity and Capital Ratios
Equity to assets			19.78	%			19.39	%			18.80	%			18.35	%			18.32	%			19.78	%			18.32	%
Common equity tier 1 capital			17.10	%			16.92	%			16.42	%			15.84	%			15.42	%			17.10	%			15.42	%
Tier 1 risk-based capital			17.10	%			16.92	%			16.42	%			15.84	%			15.42	%			17.10	%			15.42	%
Total risk-based capital			18.35	%			18.17	%			17.67	%			17.09	%			16.67	%			18.35	%			16.67	%
Tier 1 leverage capital			11.62	%			11.20	%			10.82	%			10.52	%			10.29	%			11.62	%			10.29	%
Period end tangible equity to period end tangible assets (G)			11.58	%			11.23	%			10.75	%			10.36	%			10.24	%			11.58	%			10.24	%
Other Data
Weighted-average shares used in computing earnings per common share
Basic			95,277				95,266				95,264				95,261				95,765				95,271				94,735
Diluted			95,277				95,266				95,264				95,261				95,765				95,271				94,735
Period end shares outstanding			95,277				95,258				95,275				95,261				95,262				95,277				95,262
Cash dividends paid per common share		$	0.58			$	0.58			$	0.58			$	0.56			$	0.56			$	1.16			$	1.12
Book value per common share		$	79.76			$	78.91			$	78.07			$	77.27			$	76.46			$	79.76			$	76.46
Tangible book value per common share (G)		$	42.38			$	41.48			$	40.61			$	39.75			$	38.89			$	42.38			$	38.89
Common Stock Market Price
High		$	74.56			$	82.75			$	86.76			$	74.87			$	66.18			$	82.75			$	68.88
Low		$	61.57			$	68.96			$	68.94			$	58.66			$	57.16			$	61.57			$	57.16
Period end closing price		$	70.24			$	71.37			$	75.35			$	72.07			$	61.14			$	70.24			$	61.14
Employees - FTE (excluding overtime)			3,921				3,898				3,916				3,896				3,902				3,921				3,902
Number of banking centers			283				284				283				287				288				283				288

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

	Three Months Ended										Year-to-Date
	Jun 30, 2025		Mar 31, 2025		Dec 31, 2024		Sep 30, 2024		Jun 30, 2024		Jun 30, 2025		Jun 30, 2024
Loan discount accretion
Non-PCD	$2,486		$2,615		$2,761		$3,616		$4,797		$5,101		$6,109
PCD	$638		$677		$850		$1,212		$2,394		$1,315		$2,942
Securities net accretion	$409		$705		$528		$555		$564		$1,114		$1,125
Time deposits amortization	$(2)		$(9)		$(21)		$(40)		$4		$(11)		$(93)

(E)	Using effective tax rate of 21.5%, 21.7%, 21.7%, 21.6% and 21.9% for the three months ended June 30, 2025, March 31, 2025, December 31, 2024, September 30, 2024 and June 30, 2024, respectively, and 21.6% and 21.9% for the six months ended June 30, 2025 and 2024, respectively.
(F)	Interim periods annualized.
(G)	Refer to the "Notes to Selected Financial Data" at the end of this Earnings Release for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure.
(H)	Net interest margin for all periods presented is based on average balances on an actual 365-day or 366-day basis.
(I)	Calculated by dividing total noninterest expense, excluding credit loss provisions, by net interest income plus noninterest income, excluding net gains and losses on the sale, write-down or write-up of assets and securities. Additionally, taxes are not part of this calculation.
(J)	For calculations of the annualized returns on average assets, average common equity and average tangible common equity excluding merger related provision for credit losses, net of tax, merger related expenses, net of tax, FDIC special assessment, net of tax, and net gain on sale or write-up of securities, net of tax refer to the "Notes to Selected Financial Data" at the end of this Earnings Release for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure.
(K)	For calculations of the efficiency ratio excluding merger related expenses and FDIC special assessment refer to the "Notes to Selected Financial Data" at the end of this Earnings Release for a reconciliation of these non-GAAP financial measures to the nearest respective GAAP financial measures.

Prosperity Bancshares, Inc.®
Financial Highlights (Unaudited)
(Dollars in thousands)
YIELD ANALYSIS		Three Months Ended
		Jun 30, 2025										Mar 31, 2025										Jun 30, 2024
		Average Balance				Interest Earned/ Interest Paid				Average Yield/ Rate	(L)	Average Balance				Interest Earned/ Interest Paid				Average Yield/ Rate	(L)	Average Balance				Interest Earned/ Interest Paid				Average Yield/ Rate	(L)
Interest-earning assets:
Loans held for sale		$	9,813			$	166			6.79 %		$	7,570			$	127			6.80 %		$	8,446			$	149			7.10 %
Loans held for investment			20,907,400				306,671			5.88 %			20,959,226				305,068			5.90 %			21,328,824				319,361			6.02 %
Loans held for investment - Warehouse Purchase Program			1,179,307				18,653			6.34 %			876,086				13,828			6.40 %			917,026				16,918			7.42 %
Total loans			22,096,520				325,490			5.91 %			21,842,882				319,023			5.92 %			22,254,296				336,428			6.08 %
Investment securities			10,867,856				57,836			2.13 %	(M)		11,017,400				57,886			2.13 %	(M)		12,179,074				62,428			2.06 %	(M)
Federal funds sold and other earning assets			841,933				9,438			4.50 %			1,443,220				15,896			4.47 %			1,026,251				14,095			5.52 %
Total interest-earning assets			33,806,309				392,764			4.66 %			34,303,502				392,805			4.64 %			35,459,621				412,951			4.68 %
Allowance for credit losses on loans			(348,310)										(350,715)										(332,904)
Noninterest-earning assets			4,933,215										5,004,291										4,822,131
Total assets		$	38,391,214									$	38,957,078									$	39,948,848
Interest-bearing liabilities:
Interest-bearing demand deposits		$	4,807,864			$	8,859			0.74 %		$	5,224,796			$	9,019			0.70 %		$	4,839,194			$	9,133			0.76 %
Savings and money market deposits			8,944,897				45,796			2.05 %			9,007,286				45,645			2.06 %			9,084,051				50,252			2.22 %
Certificates and other time deposits			4,366,510				39,135			3.59 %			4,426,521				40,933			3.75 %			4,400,922				46,739			4.27 %
Other borrowings			2,717,583				30,101			4.44 %			2,776,667				30,492			4.45 %			3,900,000				46,282			4.77 %
Securities sold under repurchase agreements			194,577				1,151			2.37 %			217,945				1,334			2.48 %			258,637				1,759			2.74 %
Total interest-bearing liabilities			21,031,431				125,042			2.38 %	(N)		21,653,215				127,423			2.39 %	(N)		22,482,804				154,165			2.76 %	(N)
Noninterest-bearing liabilities:
Noninterest-bearing demand deposits			9,508,845										9,504,540										9,780,211
Allowance for credit losses on off-balance sheet credit exposures			37,646										37,646										36,729
Other liabilities			227,002										255,876										327,847
Total liabilities			30,804,924										31,451,277										32,627,591
Shareholders' equity			7,586,290										7,505,801										7,321,257
Total liabilities and shareholders' equity		$	38,391,214									$	38,957,078									$	39,948,848
Net interest income and margin						$	267,722			3.18 %						$	265,382			3.14 %						$	258,786			2.94 %
Non-GAAP to GAAP reconciliation:
Tax equivalent adjustment							574										587										800
Net interest income and margin (tax equivalent basis)						$	268,296			3.18 %						$	265,969			3.14 %						$	259,586			2.94 %

(L)	Annualized and based on an actual 365-day or 366-day basis.
(M)	Yield on securities was impacted by net premium amortization of $4,926, $5,027 and $5,831 for the three months ended June 30, 2025, March 31, 2025 and June 30, 2024, respectively.
(N)	Total cost of funds, including noninterest bearing deposits, was 1.64%, 1.66% and 1.92% for the three months ended June 30, 2025, March 31, 2025 and June 30, 2024, respectively.

Prosperity Bancshares, Inc.®
Financial Highlights (Unaudited)
(Dollars in thousands)
YIELD ANALYSIS		Year-to-Date
		Jun 30, 2025										Jun 30, 2024
		Average Balance				Interest Earned/ Interest Paid				Average Yield/ Rate	(O)	Average Balance				Interest Earned/ Interest Paid				Average Yield/ Rate	(O)
Interest-earning assets:
Loans held for sale		$	8,698			$	293			6.79 %		$	6,957			$	241			6.97 %
Loans held for investment			20,933,170				611,739			5.89 %			20,872,069				612,034			5.90 %
Loans held for investment - Warehouse Purchase Program			1,028,534				32,481			6.37 %			818,838				30,381			7.46 %
Total loans			21,970,402				644,513			5.92 %			21,697,864				642,656			5.96 %
Investment securities			10,942,215				115,722			2.13 %	(P)		12,436,171				128,849			2.08 %	(P)
Federal funds sold and other earning assets			1,140,915				25,334			4.48 %			849,546				23,360			5.53 %
Total interest-earning assets			34,053,532				785,569			4.65 %			34,983,581				794,865			4.57 %
Allowance for credit losses on loans			(349,506)										(332,306)
Noninterest-earning assets			4,967,987										4,790,888
Total assets		$	38,672,013									$	39,442,163
Interest-bearing liabilities:
Interest-bearing demand deposits		$	5,015,178			$	17,878			0.72 %		$	4,991,390			$	17,556			0.71 %
Savings and money market deposits			8,975,919				91,441			2.05 %			8,986,565				97,404			2.18 %
Certificates and other time deposits			4,396,350				80,068			3.67 %			4,042,369				83,856			4.17 %
Other borrowings			2,746,961				60,593			4.45 %			3,991,566				95,228			4.80 %
Securities sold under repurchase agreements			206,197				2,485			2.43 %			277,537				3,791			2.75 %
Total interest-bearing liabilities			21,340,605				252,465			2.39 %	(Q)		22,289,427				297,835			2.69 %	(Q)
Noninterest-bearing liabilities:
Noninterest-bearing demand deposits			9,506,704										9,611,730
Allowance for credit losses on off-balance sheet credit exposures			37,646										36,616
Other liabilities			240,789										283,139
Total liabilities			31,125,744										32,220,912
Shareholders' equity			7,546,269										7,221,251
Total liabilities and shareholders' equity		$	38,672,013									$	39,442,163
Net interest income and margin						$	533,104			3.16 %						$	497,030			2.86 %
Non-GAAP to GAAP reconciliation:
Tax equivalent adjustment							1,161										1,608
Net interest income and margin (tax equivalent basis)						$	534,265			3.16 %						$	498,638			2.87 %

(O)	Based on an actual 365-day or 366-day basis.
(P)	Yield on securities was impacted by net premium amortization of $9,953 and $11,653 for the six months ended June 30, 2025 and 2024, respectively.
(Q)	Total cost of funds, including noninterest bearing deposits, was 1.65% and 1.88% for the six months ended June 30, 2025 and 2024, respectively.

Prosperity Bancshares, Inc. ®
Financial Highlights (Unaudited)
(Dollars in thousands)
	Three Months Ended
	Jun 30, 2025				Mar 31, 2025				Dec 31, 2024				Sep 30, 2024				Jun 30, 2024
YIELD TREND (R)
Interest-Earning Assets:
Loans held for sale		6.79	%			6.80	%			6.68	%			6.89	%			7.10	%
Loans held for investment		5.88	%			5.90	%			5.93	%			5.97	%			6.02	%
Loans held for investment - Warehouse Purchase Program		6.34	%			6.40	%			6.66	%			7.27	%			7.42	%
Total loans		5.91	%			5.92	%			5.97	%			6.04	%			6.08	%
Investment securities (S)		2.13	%			2.13	%			2.06	%			2.04	%			2.06	%
Federal funds sold and other earning assets		4.50	%			4.47	%			4.80	%			5.41	%			5.52	%
Total interest-earning assets		4.66	%			4.64	%			4.66	%			4.70	%			4.68	%
Interest-Bearing Liabilities:
Interest-bearing demand deposits		0.74	%			0.70	%			0.70	%			0.77	%			0.76	%
Savings and money market deposits		2.05	%			2.06	%			2.10	%			2.23	%			2.22	%
Certificates and other time deposits		3.59	%			3.75	%			4.06	%			4.24	%			4.27	%
Other borrowings		4.44	%			4.45	%			4.73	%			4.77	%			4.77	%
Securities sold under repurchase agreements		2.37	%			2.48	%			2.58	%			2.72	%			2.74	%
Total interest-bearing liabilities		2.38	%			2.39	%			2.60	%			2.78	%			2.76	%
Net Interest Margin		3.18	%			3.14	%			3.04	%			2.94	%			2.94	%
Net Interest Margin (tax equivalent)		3.18	%			3.14	%			3.05	%			2.95	%			2.94	%

(R)	Annualized and based on average balances on an actual 365-day or 366-day basis.
(S)	Yield on securities was impacted by net premium amortization of $4,926, $5,027, $5,609, $5,574 and $5,831 for the three months ended June 30, 2025, March 31, 2025, December 31, 2024, September 30, 2024 and June 30, 2024, respectively.

Prosperity Bancshares, Inc. ®
Financial Highlights (Unaudited)
(Dollars in thousands)
		Three Months Ended
		Jun 30, 2025				Mar 31, 2025				Dec 31, 2024				Sep 30, 2024				Jun 30, 2024
Balance Sheet Averages
Loans held for sale		$	9,813			$	7,570			$	8,571			$	7,913			$	8,446
Loans held for investment			20,907,400				20,959,226				21,038,694				21,107,139				21,328,824
Loans held for investment - Warehouse Purchase Program			1,179,307				876,086				1,137,113				1,114,681				917,026
Total loans			22,096,520				21,842,882				22,184,378				22,229,733				22,254,296
Investment securities			10,867,856				11,017,400				11,265,535				11,612,193				12,179,074
Federal funds sold and other earning assets			841,933				1,443,220				1,628,050				1,531,788				1,026,251
Total interest-earning assets			33,806,309				34,303,502				35,077,963				35,373,714				35,459,621
Allowance for credit losses on loans			(348,310)				(350,715)				(353,560)				(358,237)				(332,904)
Cash and due from banks			294,379				326,066				317,420				304,911				295,077
Goodwill			3,503,127				3,503,128				3,505,030				3,504,300				3,482,448
Core deposit intangibles, net			60,739				64,293				68,167				72,330				59,979
Other real estate			8,749				7,105				6,778				5,339				3,071
Fixed assets, net			374,486				374,448				373,561				375,626				377,369
Other assets			691,735				729,251				632,040				611,219				604,187
Total assets		$	38,391,214			$	38,957,078			$	39,627,399			$	39,889,202			$	39,948,848
Noninterest-bearing deposits		$	9,508,845			$	9,504,540			$	9,829,912			$	9,680,785			$	9,780,211
Interest-bearing demand deposits			4,807,864				5,224,796				4,845,174				4,774,975				4,839,194
Savings and money market deposits			8,944,897				9,007,286				8,915,410				8,908,315				9,084,051
Certificates and other time deposits			4,366,510				4,426,521				4,552,445				4,564,232				4,400,922
Total deposits			27,628,116				28,163,143				28,142,941				27,928,307				28,104,378
Other borrowings			2,717,583				2,776,667				3,332,609				3,900,000				3,900,000
Securities sold under repurchase agreements			194,577				217,945				231,240				242,813				258,637
Allowance for credit losses on off-balance sheet credit exposures			37,646				37,646				37,646				37,646				36,729
Other liabilities			227,002				255,876				454,298				433,171				327,847
Shareholders' equity			7,586,290				7,505,801				7,428,665				7,347,265				7,321,257
Total liabilities and equity		$	38,391,214			$	38,957,078			$	39,627,399			$	39,889,202			$	39,948,848

Prosperity Bancshares, Inc. ®
Financial Highlights (Unaudited)
(Dollars in thousands)
		Jun 30, 2025							Mar 31, 2025							Dec 31, 2024							Sep 30, 2024							Jun 30, 2024
Period End Balances
Loan Portfolio
Commercial and industrial		$	1,897,117			8.6	%		$	1,915,124			8.7	%		$	1,962,111			8.8	%		$	1,970,844			8.8	%		$	2,023,531			9.1	%
Warehouse purchase program			1,287,440			5.8	%			1,057,893			4.8	%			1,080,903			4.9	%			1,228,706			5.5	%			1,081,403			4.8	%
Construction, land development and other land loans			2,873,238			12.9	%			2,845,082			13.0	%			2,859,281			12.9	%			2,814,521			12.6	%			2,828,372			12.7	%
1-4 family residential			7,530,816			33.9	%			7,576,350			34.5	%			7,581,450			34.2	%			7,557,858			33.8	%			7,496,485			33.6	%
Home equity			869,370			3.9	%			896,529			4.1	%			906,139			4.1	%			919,676			4.1	%			930,428			4.2	%
Commercial real estate (includes multi-family residential)			5,827,645			26.3	%			5,783,410			26.3	%			5,800,985			26.2	%			5,869,687			26.2	%			5,961,884			26.7	%
Agriculture (includes farmland)			1,029,250			4.6	%			1,013,960			4.6	%			1,033,546			4.7	%			1,033,224			4.6	%			1,037,361			4.6	%
Consumer and other			368,747			1.7	%			378,821			1.7	%			378,817			1.7	%			413,548			1.8	%			340,611			1.5	%
Energy			513,765			2.3	%			510,401			2.3	%			545,977			2.5	%			572,788			2.6	%			620,740			2.8	%
Total loans		$	22,197,388						$	21,977,570						$	22,149,209						$	22,380,852						$	22,320,815
Deposit Types
Noninterest-bearing DDA		$	9,426,657			34.3	%		$	9,675,915			34.5	%		$	9,798,438			34.5	%		$	9,811,361			34.9	%		$	9,706,505			34.7	%
Interest-bearing DDA			4,708,251			17.1	%			4,931,769			17.6	%			5,182,035			18.3	%			4,800,758			17.1	%			4,762,730			17.1	%
Money market			6,302,770			23.0	%			6,339,509			22.6	%			6,229,022			21.9	%			6,166,792			22.0	%			6,180,769			22.1	%
Savings			2,667,859			9.7	%			2,703,736			9.7	%			2,685,496			9.5	%			2,707,982			9.6	%			2,765,197			9.9	%
Certificates and other time deposits			4,367,874			15.9	%			4,375,870			15.6	%			4,486,347			15.8	%			4,600,718			16.4	%			4,517,885			16.2	%
Total deposits		$	27,473,411						$	28,026,799						$	28,381,338						$	28,087,611						$	27,933,086
Loan to Deposit Ratio			80.8	%						78.4	%						78.0	%						79.7	%						79.9	%

Prosperity Bancshares, Inc. ®
Financial Highlights (Unaudited)
(Dollars in thousands)
Construction Loans
		Jun 30, 2025							Mar 31, 2025							Dec 31, 2024							Sep 30, 2024							Jun 30, 2024
Single family residential construction		$	696,569			24.2	%		$	727,417			25.6	%		$	778,067			27.2	%		$	836,571			29.7	%		$	940,381			33.2	%
Land development			227,254			7.9	%			225,784			7.9	%			260,158			9.1	%			256,571			9.1	%			241,639			8.5	%
Raw land			248,380			8.7	%			261,918			9.2	%			278,892			9.7	%			263,411			9.4	%			291,112			10.3	%
Residential lots			217,835			7.6	%			219,115			7.7	%			209,850			7.3	%			217,920			7.7	%			222,343			7.9	%
Commercial lots			55,176			1.9	%			56,343			2.0	%			59,044			2.1	%			58,472			2.1	%			60,264			2.1	%
Commercial construction and other			1,428,985			49.7	%			1,355,587			47.6	%			1,274,619			44.6	%			1,183,127			42.0	%			1,074,361			38.0	%
Net unaccreted discount			(961)							(1,082)							(1,349)							(1,551)							(1,728)
Total construction loans		$	2,873,238						$	2,845,082						$	2,859,281						$	2,814,521						$	2,828,372

Non-Owner Occupied Commercial Real Estate Loans by Metropolitan Statistical Area (MSA) as of June 30, 2025
	Houston				Dallas				Austin				OK City				Tulsa				Other (T)				Total
Collateral Type
Shopping center/retail	$	332,171			$	249,400			$	59,338			$	15,472			$	13,024			$	330,419			$	999,824
Commercial and industrial buildings		133,239				105,706				22,278				33,130				12,339				274,479				581,171
Office buildings		114,815				269,275				130,691				45,270				4,330				86,538				650,919
Medical buildings		82,882				16,788				1,657				42,053				27,437				71,247				242,064
Apartment buildings		122,871				128,913				64,053				10,615				13,530				208,395				548,377
Hotel		108,149				117,048				30,555				13,625				-				180,617				449,994
Other		174,929				58,816				20,314				6,182				6,973				97,515				364,729
Total	$	1,069,056			$	945,946			$	328,886			$	166,347			$	77,633			$	1,249,210			$	3,837,078		(U)

Acquired Loans
	Non-PCD Loans												PCD Loans												Total Acquired Loans
	Balance at Acquisition Date				Balance at Mar 31, 2025				Balance at Jun 30, 2025				Balance at Acquisition Date				Balance at Mar 31, 2025				Balance at Jun 30, 2025				Balance at Acquisition Date				Balance at Mar 31, 2025				Balance at Jun 30, 2025
Loan marks:
Acquired banks (V)	$	368,247			$	13,536			$	12,813			$	327,842			$	5,620			$	5,237			$	696,089			$	19,156			$	18,050
Lone Star Bank (W)		20,378				11,714				9,953				4,558				1,093				838				24,936				12,807				10,791
Total		388,625				25,250				22,766				332,400				6,713				6,075				721,025				31,963				28,841
Acquired portfolio loan balances:
Acquired banks (V)		13,307,853				1,281,901				1,223,988				1,317,564				380,484				342,617				14,625,417				1,662,385				1,566,605
Lone Star Bank (W)		1,016,128				645,440				562,614				59,109				47,559				44,526				1,075,237				692,999				607,140
Total		14,323,981				1,927,341				1,786,602				1,376,673				428,043				387,143				15,700,654		(X)		2,355,384				2,173,745
Acquired portfolio loan balances less loan marks	$	13,935,356			$	1,902,091			$	1,763,836			$	1,044,273			$	421,330			$	381,068			$	14,979,629			$	2,323,421			$	2,144,904

(T)	Includes other MSA and non-MSA regions.
(U)	Represents a portion of total commercial real estate loans of $5.828 billion as of June 30, 2025.
(V)	Includes Bank Arlington, American State Bank, Community National Bank, First Federal Bank Texas, Coppermark Bank, First Victoria National Bank, The F&M Bank & Trust Company, Tradition Bank and LegacyTexas Bank.
(W)	The Merger was completed on April 1, 2024 and resulted in the addition of $1.075 billion in loans with related purchase accounting adjustments of $24.9 million at acquisition date, which were subject to subsequent fair value adjustments.
(X)	Actual principal balances acquired.

Prosperity Bancshares, Inc. ®
Financial Highlights (Unaudited)
(Dollars in thousands)
	Three Months Ended																				Year-to-Date
	Jun 30, 2025				Mar 31, 2025				Dec 31, 2024				Sep 30, 2024				Jun 30, 2024				Jun 30, 2025				Jun 30, 2024
Asset Quality
Nonaccrual loans	$	102,031			$	73,287			$	73,647			$	83,969			$	84,175			$	102,031			$	84,175
Accruing loans 90 or more days past due		576				91				2,189				20				322				576				322
Total nonperforming loans		102,607				73,378				75,836				83,989				84,497				102,607				84,497
Repossessed assets		6				29				4				177				113				6				113
Other real estate		7,874				8,012				5,701				5,757				4,960				7,874				4,960
Total nonperforming assets	$	110,487			$	81,419			$	81,541			$	89,923			$	89,570			$	110,487			$	89,570
Nonperforming assets:
Commercial and industrial (includes energy)	$	27,680			$	8,966			$	10,080			$	13,642			$	16,340			$	27,680			$	16,340
Construction, land development and other land loans		1,859				1,952				4,481				4,053				4,895				1,859				4,895
1-4 family residential (includes home equity)		50,501				42,481				44,824				36,660				33,935				50,501				33,935
Commercial real estate (includes multi-family residential)		12,865				12,257				18,861				32,803				31,776				12,865				31,776
Agriculture (includes farmland)		17,547				15,725				3,208				2,686				2,550				17,547				2,550
Consumer and other		35				38				87				79				74				35				74
Total	$	110,487			$	81,419			$	81,541			$	89,923			$	89,570			$	110,487			$	89,570
Number of loans/properties		392				363				368				346				349				392				349
Allowance for credit losses on loans	$	346,084			$	349,101			$	351,805			$	354,397			$	359,852			$	346,084			$	359,852
Net charge-offs (recoveries):
Commercial and industrial (includes energy)	$	1,044			$	330			$	405			$	3,309			$	2,777			$	1,374			$	3,060
Construction, land development and other land loans		(3)				(156)				294				378				109				(159)				107
1-4 family residential (includes home equity)		342				1,051				180				409				425				1,393				882
Commercial real estate (includes multi-family residential)		55				178				362				258				(381)				233				(398)
Agriculture (includes farmland)		(14)				-				5				(116)				214				(14)				237
Consumer and other		1,593				1,301				1,346				1,217				1,224				2,894				2,623
Total	$	3,017			$	2,704			$	2,592			$	5,455			$	4,368			$	5,721			$	6,511
Asset Quality Ratios
Nonperforming assets to average interest-earning assets		0.33	%			0.24	%			0.23	%			0.25	%			0.25	%			0.32	%			0.26	%
Nonperforming assets to loans and other real estate		0.50	%			0.37	%			0.37	%			0.40	%			0.40	%			0.50	%			0.40	%
Net charge-offs to average loans (annualized)		0.05	%			0.05	%			0.05	%			0.10	%			0.08	%			0.05	%			0.06	%
Allowance for credit losses on loans to total loans		1.56	%			1.59	%			1.59	%			1.58	%			1.61	%			1.56	%			1.61	%
Allowance for credit losses on loans to total loans, excluding Warehouse Purchase Program loans (G)		1.66	%			1.67	%			1.67	%			1.68	%			1.69	%			1.66	%			1.69	%

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

NOTES TO SELECTED FINANCIAL DATA

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

		Three Months Ended																				Year-to-Date
		Jun 30, 2025				Mar 31, 2025				Dec 31, 2024				Sep 30, 2024				Jun 30, 2024				Jun 30, 2025				Jun 30, 2024
Reconciliation of diluted earnings per share to diluted earnings per share excluding merger related provision for credit losses, net of tax, merger related expenses, net of tax, FDIC special assessment, net of tax, and net gain on sale or write-up of securities, net of tax:
Diluted earnings per share (unadjusted)		$	1.42			$	1.37			$	1.37			$	1.34			$	1.17			$	2.79			$	2.34
Net income		$	135,155			$	130,225			$	130,076			$	127,282			$	111,602			$	265,380			$	222,028
Merger related provision for credit losses, net of tax(Z)			-				-				-				-				7,162				-				7,162
Merger related expenses, net of tax(Z)			-				-				-				50				3,461				-				3,461
FDIC special assessment, net of tax(Z)			-				-				-				-				2,807				-				2,807
Net gain on sale or write-up of securities, net of tax(Z)			-				-				-				(177)				(8,472)				-				(8,707)
Net income excluding merger related provision for credit losses, net of tax, merger related expenses, net of tax, FDIC special assessment, net of tax, and net gain on sale or write-up of securities, net of tax(Z):		$	135,155			$	130,225			$	130,076			$	127,155			$	116,560			$	265,380			$	226,751
Weighted average diluted shares outstanding			95,277				95,266				95,264				95,261				95,765				95,271				94,735
Merger related provision for credit losses, net of tax, per diluted common share(Z)		$	-			$	-			$	-			$	-			$	0.07			$	-			$	0.07
Merger related expenses, net of tax, per diluted common share(Z)		$	-			$	-			$	-			$	-			$	0.04			$	-			$	0.04
FDIC special assessment, net of tax, per diluted common share(Z)		$	-			$	-			$	-			$	-			$	0.03			$	-			$	0.03
Net gain on sale or write-up of securities, net of tax, per diluted common share(Z)		$	-			$	-			$	-			$	-			$	(0.09)			$	-			$	(0.09)
Diluted earnings per share excluding merger related provision for credit losses, net of tax, merger related expenses, net of tax, FDIC special assessment, net of tax, and net gain on sale or write-up of securities, net of tax:(Z)		$	1.42			$	1.37			$	1.37			$	1.34			$	1.22			$	2.79			$	2.39
Reconciliation of return on average assets to return on average assets excluding merger related provision for credit losses, net of tax, merger related expenses, net of tax, FDIC special assessment, net of tax, and net gain on sale or write-up of securities, net of tax:
Return on average assets (unadjusted)			1.41	%			1.34	%			1.31	%			1.28	%			1.12	%			1.37	%			1.13	%
Net income excluding merger related provision for credit losses, net of tax, merger related expenses, net of tax, FDIC special assessment, net of tax, and net gain on sale or write-up of securities, net of tax(Z):		$	135,155			$	130,225			$	130,076			$	127,155			$	116,560			$	265,380			$	226,751
Average total assets		$	38,391,214			$	38,957,078			$	39,627,399			$	39,889,202			$	39,948,848			$	38,672,013			$	39,442,163
Return on average assets excluding merger related provision for credit losses, net of tax, merger related expenses, net of tax, FDIC special assessment, net of tax, and net gain on sale or write-up of securities, net of tax (F) (Z)			1.41	%			1.34	%			1.31	%			1.28	%			1.17	%			1.37	%			1.15	%
(Z) Calculated assuming a federal tax rate of 21.0%.
		Three Months Ended																				Year-to-Date
		Jun 30, 2025				Mar 31, 2025				Dec 31, 2024				Sep 30, 2024				Jun 30, 2024				Jun 30, 2025				Jun 30, 2024
Reconciliation of return on average common equity to return on average common equity excluding merger related provision for credit losses, net of tax, merger related expenses, net of tax, FDIC special assessment, net of tax, and net gain on sale or write-up of securities, net of tax:
Return on average common equity (unadjusted)			7.13	%			6.94	%			7.00	%			6.93	%			6.10	%			7.03	%			6.15	%
Net income excluding merger related provision for credit losses, net of tax, merger related expenses, net of tax, FDIC special assessment, net of tax, and net gain on sale or write-up of securities, net of tax(Z):		$	135,155			$	130,225			$	130,076			$	127,155			$	116,560			$	265,380			$	226,751
Average shareholders' equity		$	7,586,290			$	7,505,801			$	7,428,665			$	7,347,265			$	7,321,257			$	7,546,269			$	7,221,251
Return on average common equity excluding merger related provision for credit losses, net of tax, merger related expenses, net of tax, FDIC special assessment, net of tax, and net gain on sale or write-up of securities, net of tax (F) (Z)			7.13	%			6.94	%			7.00	%			6.92	%			6.37	%			7.03	%			6.28	%
Reconciliation of return on average common equity to return on average tangible common equity:
Net income		$	135,155			$	130,225			$	130,076			$	127,282			$	111,602			$	265,380			$	222,028
Average shareholders' equity		$	7,586,290			$	7,505,801			$	7,428,665			$	7,347,265			$	7,321,257			$	7,546,269			$	7,221,251
Less: Average goodwill and other intangible assets			(3,563,866)				(3,567,421)				(3,573,197)				(3,576,630)				(3,542,427)				(3,565,634)				(3,500,542)
Average tangible shareholders' equity		$	4,022,424			$	3,938,380			$	3,855,468			$	3,770,635			$	3,778,830			$	3,980,635			$	3,720,709
Return on average tangible common equity (F)			13.44	%			13.23	%			13.50	%			13.50	%			11.81	%			13.33	%			11.93	%
Reconciliation of return on average common equity to return on average tangible common equity excluding merger related provision for credit losses, net of tax, merger related expenses, net of tax, and FDIC special assessment, net of tax:
Net income excluding merger related provision for credit losses, net of tax, merger related expenses, net of tax, FDIC special assessment, net of tax, and net gain on sale or write-up of securities, net of tax(Z):		$	135,155			$	130,225			$	130,076			$	127,155			$	116,560			$	265,380			$	226,751
Average shareholders' equity		$	7,586,290			$	7,505,801			$	7,428,665			$	7,347,265			$	7,321,257			$	7,546,269			$	7,221,251
Less: Average goodwill and other intangible assets			(3,563,866)				(3,567,421)				(3,573,197)				(3,576,630)				(3,542,427)				(3,565,634)				(3,500,542)
Average tangible shareholders' equity		$	4,022,424			$	3,938,380			$	3,855,468			$	3,770,635			$	3,778,830			$	3,980,635			$	3,720,709
Return on average tangible common equity excluding merger related provision for credit losses, net of tax, merger related expenses, net of tax, FDIC special assessment, net of tax, and net gain on sale or write-up of securities, net of tax (F) (Z)			13.44	%			13.23	%			13.50	%			13.49	%			12.34	%			13.33	%			12.19	%
Reconciliation of book value per share to tangible book value per share:
Shareholders' equity		$	7,599,736			$	7,517,061			$	7,438,495			$	7,361,249			$	7,283,444			$	7,599,736			$	7,283,444
Less: Goodwill and other intangible assets			(3,561,923)				(3,565,533)				(3,569,176)				(3,574,566)				(3,578,431)				(3,561,923)				(3,578,431)
Tangible shareholders' equity		$	4,037,813			$	3,951,528			$	3,869,319			$	3,786,683			$	3,705,013			$	4,037,813			$	3,705,013
Period end shares outstanding			95,277				95,258				95,275				95,261				95,262				95,277				95,262
Tangible book value per share		$	42.38			$	41.48			$	40.61			$	39.75			$	38.89			$	42.38			$	38.89
Reconciliation of equity to assets ratio to period end tangible equity to period end tangible assets ratio:
Tangible shareholders' equity		$	4,037,813			$	3,951,528			$	3,869,319			$	3,786,683			$	3,705,013			$	4,037,813			$	3,705,013
Total assets		$	38,417,352			$	38,764,675			$	39,566,738			$	40,115,320			$	39,762,294			$	38,417,352			$	39,762,294
Less: Goodwill and other intangible assets			(3,561,923)				(3,565,533)				(3,569,176)				(3,574,566)				(3,578,431)				(3,561,923)				(3,578,431)
Tangible assets		$	34,855,429			$	35,199,142			$	35,997,562			$	36,540,754			$	36,183,863			$	34,855,429			$	36,183,863
Period end tangible equity to period end tangible assets ratio			11.58	%			11.23	%			10.75	%			10.36	%			10.24	%			11.58	%			10.24	%
		Three Months Ended																				Year-to-Date
		Jun 30, 2025				Mar 31, 2025				Dec 31, 2024				Sep 30, 2024				Jun 30, 2024				Jun 30, 2025				Jun 30, 2024
Reconciliation of allowance for credit losses to total loans to allowance for credit losses on loans to total loans excluding Warehouse Purchase Program:
Allowance for credit losses on loans		$	346,084			$	349,101			$	351,805			$	354,397			$	359,852			$	346,084			$	359,852
Total loans		$	22,197,388			$	21,977,570			$	22,149,209			$	22,380,852			$	22,320,815			$	22,197,388			$	22,320,815
Less: Warehouse Purchase Program loans			(1,287,440)				(1,057,893)				(1,080,903)				(1,228,706)				(1,081,403)				(1,287,440)				(1,081,403)
Total loans less Warehouse Purchase Program		$	20,909,948			$	20,919,677			$	21,068,306			$	21,152,146			$	21,239,412			$	20,909,948			$	21,239,412
Allowance for credit losses on loans to total loans excluding Warehouse Purchase Program			1.66	%			1.67	%			1.67	%			1.68	%			1.69	%			1.66	%			1.69	%
Reconciliation of efficiency ratio to efficiency ratio excluding net gains and losses on the sale, write-down or write-up of assets and securities:
Noninterest expense		$	138,565			$	140,301			$	141,545			$	140,338			$	152,842			$	278,866			$	288,690
Net interest income		$	267,722			$	265,382			$	267,774			$	261,691			$	258,786			$	533,104			$	497,030
Noninterest income			42,982				41,301				39,837				41,099				46,003				84,283				84,873
Less: net gain (loss) on sale or write-down of assets			1,414				(235)				584				3,178				(903)				1,179				(938)
Less: net gain on sale or write-up of securities			-				-				-				224				10,723				-				11,021
Noninterest income excluding net gains and losses on the sale, write-down or write-up of assets and securities			41,568				41,536				39,253				37,697				36,183				83,104				74,790
Total income excluding net gains and losses on the sale, write-down or write-up of assets and securities		$	309,290			$	306,918			$	307,027			$	299,388			$	294,969			$	616,208			$	571,820
Efficiency ratio, excluding net gains and losses on the sale, write-down or write-up of assets and securities			44.80	%			45.71	%			46.10	%			46.87	%			51.82	%			45.26	%			50.49	%
Reconciliation of efficiency ratio to efficiency ratio, excluding net gains and losses on the sale, write-down or write-up of assets and securities, merger related expenses and FDIC special assessment:
Noninterest expense		$	138,565			$	140,301			$	141,545			$	140,338			$	152,842			$	278,866			$	288,690
Less: merger related expenses			-				-				-				63				4,381				-				4,381
Less: FDIC special assessment			-				-				-				-				3,554				-				3,554
Noninterest expense excluding merger related expenses and FDIC special assessment		$	138,565			$	140,301			$	141,545			$	140,275			$	144,907			$	278,866			$	280,755
Net interest income		$	267,722			$	265,382			$	267,774			$	261,691			$	258,786			$	533,104			$	497,030
Noninterest income			42,982				41,301				39,837				41,099				46,003				84,283				84,873
Less: net gain (loss) on sale or write down of assets			1,414				(235)				584				3,178				(903)				1,179				(938)
Less: net gain on sale or write-up of securities			-				-				-				224				10,723				-				11,021
Noninterest income excluding net gains and losses on the sale, write-down or write-up of assets and securities			41,568				41,536				39,253				37,697				36,183				83,104				74,790
Total income excluding net gains and losses on the sale, write-down or write-up of assets and securities		$	309,290			$	306,918			$	307,027			$	299,388			$	294,969			$	616,208			$	571,820
Efficiency ratio, excluding net gains and losses on the sale, write-down or write-up of assets and securities, merger related expenses and FDIC special assessment			44.80	%			45.71	%			46.10	%			46.85	%			49.13	%			45.26	%			49.10	%

SOURCE Prosperity Bancshares, Inc.