PROSPERITY BANCSHARES, INC.® REPORTS FIRST QUARTER 2025 EARNINGS

First quarter earnings per share (diluted) of $1.37, an increase of 16.1% compared to first quarter 2024 First quarter net income increased 17.9% to $130.2 million compared to first quarter 2024 First quarter net interest margin increased 35 basis points to 3.14% compared to first quarter 2024 Noninterest-bearing deposits of $9.7 billion, representing 34.5% of total deposits Borrowings decreased $500.0 million during first quarter 2025 Allowance for credit losses on loans and on off-balance sheet credit exposure of $386.7 million and allowance for credit losses on loans to total loans, excluding Warehouse Purchase Program, of 1.67%(1) Nonperforming assets remain low at 0.24% of first quarter average interest-earning assets Return (annualized) on first quarter average assets of 1.34% and average tangible common equity of 13.23%(1) Named in Forbes' 2025 America's Best Banks Ranked among "America's Best Regional Banks" by Newsweek in 2025 Named Best Overall Bank in Texas by Money for 2025 , /PRNewswire/ -- Prosperity Bancshares, Inc.® (NYSE: PB), the parent company of Prosperity Bank® (collectively, "Prosperity"), reported net income of $130.2 million for the quarter ended March 31, 2025 compared with $110.4 million for the same period in 2024. Net income per diluted common share was $1.37 for the quarter ended March 31, 2025 compared with $1.18 for the same period in 2024. The annualized return on first quarter average assets was 1.34%. Additionally, borrowings decreased $500.0 million during the first quarter of 2025. Nonperforming assets remain low at 0.24% of first quarter average interest-earning assets. "I am pleased to announce a 17.9% increase in net income and a 16.1% increase in earnings per share, each compared with the first quarter of 2024. As we predicted, our net interest margin continues to increase as our assets reprice higher. We expect this trend to continue over the next several years," said David Zalman, Prosperity's Senior Chairman and Chief Executive Officer. "We and others believe that Prosperity is doing the right thing. Prosperity has been ranked as one of Forbes Best Banks since the list's inception in 2010 and was ranked in the top 10 for 14 consecutive years. Additionally, Prosperity was named the "Best Overall Bank in Texas" by Money for 2024-2025 and was ranked among "America's Best Regional Banks" by Newsweek in 2025," added Zalman. "Prosperity continues to focus on long term relationships and our customers' success while maintaining strong asset quality, solid earnings and a fair return to shareholders. Prosperity maintained a high tangible equity to tangible assets ratio of 11.2%, with tangible equity of $3.952 billion," continued Zalman. "The Texas economy continues to expand. Employment growth was solid, and sales tax revenue increased broadly according to the Federal Reserve Bank of Dallas Texas Economic Indicators dated April 3, 2025. The March 2025 Texas Business Outlook Surveys showed continued expansion in wages and benefits across all sectors," stated Zalman. "Despite the uncertainty with tariffs, our teams in Texas and Oklahoma are optimistic based on conversations with our customers about their outlook and plans. We will continue to be opportunistic, work hard, stay close to our customers and their needs and maintain a quality loan portfolio," continued Zalman. "I would like to thank our customers for their business and continued trust and our associates, directors and officers for their hard work and dedication," concluded Zalman. Results of Operations for the Three Months Ended March 31, 2025 Net income was $130.2 million(2) for the three months ended March 31, 2025 compared with $110.4 million(3) for the same period in 2024, an increase of $19.8 million or 17.9%. Net income per diluted common share was $1.37 for the three months ended March 31, 2025 compared with $1.18 for the same period in 2024, an increase of 16.1%. The changes were primarily due to an increase in net interest income, partially offset by an increase in salaries and benefits and provision for income taxes. On a linked quarter basis, net income was $130.2 million(2) for the three months ended March 31, 2025 compared with $130.1 million(4) for the three months ended December 31, 2024. Net income per diluted common share was $1.37 for the three months ended March 31, 2025 and December 31, 2024. Annualized returns on average assets, average common equity and average tangible common equity for the three months ended March 31, 2025 were 1.34%, 6.94% and 13.23%(1), respectively. Prosperity's efficiency ratio (excluding net gains and losses on the sale, write-down or write-up of assets and securities) was 45.71%(1) for the three months ended March 31, 2025. Net interest income before provision for credit losses was $265.4 million for the three months ended March 31, 2025 compared with $238.2 million for the same period in 2024, an increase of $27.1 million or 11.4%. The change was primarily due to an increase in the average balances and average rates on loans, an increase in the average balances on federal funds sold and other earning assets and a decrease in the average balances and rates on other borrowings, partially offset by a decrease in the average balances on investment securities and an increase in the average balances on interest-bearing deposits. Net interest income before provision for credit losses decreased $2.4 million or 0.9% to $265.4 million for the three months ended March 31, 2025 compared with $267.8 million for the three months ended December 31, 2024. The net interest margin on a tax equivalent basis was 3.14% for the three months ended March 31, 2025 compared with 2.79% for the same period in 2024. The change was primarily due to an increase in the average balances and average rates on loans, an increase in the average balances on federal funds sold and other earning assets and a decrease in the average balances and average rates on other borrowings, partially offset by a decrease in the average balances on investment securities and an increase in the average balances on interest-bearing deposits. The net interest margin on a tax equivalent basis was 3.14% for the three months ended March 31, 2025 compared with 3.05% for the three months ended December 31, 2024. The change was primarily due to a decrease in the average balances and average rates on other borrowings and a decrease in the average rates on interest-bearing deposits, partially offset by a decrease in the average balances and average rates on loans and a decrease in the average balances and average rates on federal funds sold and other earning assets. Noninterest income was $41.3 million for the three months ended March 31, 2025 compared with $38.9 million for the same period in 2024, an increase of $2.4 million or 6.3%. The change was primarily due to increases in service charges on deposit accounts, nonsufficient funds fees and other noninterest income, partially offset by a decrease in trust income. Noninterest income was $41.3 million for the three months ended March 31, 2025 compared with $39.8 million for the three months ended December 31, 2024, an increase of $1.5 million or 3.7%. Noninterest expense was $140.3 million for the three months ended March 31, 2025 compared with $135.8 million for the same period in 2024, an increase of $4.5 million or 3.3%, primarily due to an increase in salaries and benefits related to the merger of Lone Star State Bancshares, Inc. ("Lone Star") with Prosperity Bancshares and the merger of Lone Star State Bank of West Texas ("Lone Star Bank") with Prosperity Bank, both effective on April 1, 2024 (collectively, the "Merger"). Noninterest expense was $140.3 million for the three months ended March 31, 2025 compared with $141.5 million for the three months ended December 31, 2024, a decrease of $1.2 million or 0.9%. Balance Sheet Information At March 31, 2025, Prosperity had $38.765 billion in total assets, an increase of $8.2 million, compared with $38.757 billion at March 31, 2024. Linked quarter total assets decreased $802.1 million compared with $39.567 billion at December 31, 2024. Loans were $21.978 billion at March 31, 2025, an increase of $712.3 million or 3.3%, compared with $21.265 billion at March 31, 2024, primarily due to the Merger. Linked quarter loans decreased $171.6 million from $22.149 billion at December 31, 2024. Loans, excluding Warehouse Purchase Program loans, were $20.920 billion at March 31, 2025 compared with $20.400 billion at March 31, 2024, an increase of $519.4 million or 2.5%, and compared with $21.068 billion at December 31, 2024, a decrease of $148.6 million. Deposits were $28.027 billion at March 31, 2025, an increase of $851.3 million or 3.1%, compared with $27.176 billion at March 31, 2024, primarily due to the Merger. Linked quarter deposits decreased $354.5 million from $28.381 billion at December 31, 2024. The table below provides detail on the impact of loans acquired and deposits assumed in the Merger: Balance Sheet Data (at period end) (In thousands) Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) Loans acquired (including new production since acquisition date): Lone Star Bank $ 976,624 $ 1,057,618 $ 1,109,783 $ 1,084,559 $ — Prosperity Bank Warehouse Purchase Program loans 1,057,893 1,080,903 1,228,706 1,081,403 864,924 All other loans 19,943,053 20,010,688 20,042,363 20,154,853 20,400,323 Total loans $ 21,977,570 $ 22,149,209 $ 22,380,852 $ 22,320,815 $ 21,265,247 Deposits assumed (including new deposits since acquisition date): Lone Star Bank $ 983,280 $ 1,093,536 $ 1,136,216 $ 1,187,821 $ — All other deposits 27,043,519 27,287,802 26,951,395 26,745,265 27,175,518 Total deposits $ 28,026,799 $ 28,381,338 $ 28,087,611 $ 27,933,086 $ 27,175,518 Excluding loans acquired in the Merger and new production at the acquired banking centers since April 1, 2024, loans at March 31, 2025 decreased $264.3 million compared with March 31, 2024 and decreased $90.6 million compared with December 31, 2024. Excluding deposits assumed in the Merger and new deposits generated at the acquired banking centers since April 1, 2024, deposits at March 31, 2025 decreased $132.0 million compared with March 31, 2024 and decreased $244.3 million compared with December 31, 2024. Asset Quality Nonperforming assets totaled $81.4 million or 0.24% of quarterly average interest-earning assets at March 31, 2025 compared with $83.8 million or 0.24% of quarterly average interest-earning assets at March 31, 2024 and $81.5 million or 0.23% of quarterly average interest-earning assets at December 31, 2024. The allowance for credit losses on loans and on off-balance sheet credit exposures was $386.7 million at March 31, 2025 compared with $366.7 million at March 31, 2024 and $389.5 million at December 31, 2024. There was no provision for credit losses for the three months ended March 31, 2025, March 31, 2024 and December 31, 2024. The allowance for credit losses on loans was $349.1 million or 1.59% of total loans at March 31, 2025 compared with $330.2 million or 1.55% of total loans at March 31, 2024 and $351.8 million or 1.59% of total loans at December 31, 2024. Excluding Warehouse Purchase Program loans, the allowance for credit losses on loans to total loans was 1.67%(1) at March 31, 2025 compared with 1.62%(1) at March 31, 2024 and 1.67%(1) at December 31, 2024. Net charge-offs were $2.7 million for the three months ended March 31, 2025 compared with net charge-offs of $2.1 million for the three months ended March 31, 2024 and net charge-offs of $2.6 million for the three months ended December 31, 2024. For the first quarter of 2025, $8.3 million of reserves on resolved purchased credit deteriorated ("PCD") loans without any related charge-offs were released to the general reserve. Dividend Prosperity Bancshares declared a second quarter 2025 cash dividend of $0.58 per share to be paid on July 1, 2025, to all shareholders of record as of June 13, 2025. Merger of Lone Star State Bancshares, Inc. On April 1, 2024, Prosperity completed the merger of Lone Star and its wholly owned subsidiary Lone Star Bank, headquartered in Lubbock, Texas. Lone Star Bank operated 5 full-service banking offices in the West Texas area, including its main office in Lubbock, and 1 banking center in each of Brownfield, Midland, Odessa and Big Spring, Texas. Pursuant to the terms of the definitive agreement, Prosperity issued 2,376,182 shares of Prosperity common stock plus approximately $64.1 million in cash for all outstanding shares of Lone Star in the second quarter of 2024. This resulted in goodwill of $106.7 million as of March 31, 2025. Conference Call Prosperity's management team will host a conference call on Wednesday, April 23, 2025, at 11:30 a.m. Eastern Time (10:30 a.m. Central Time) to discuss Prosperity's first 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 7564851. 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 March 31, 2025, Prosperity Bancshares, Inc.® is a $38.765 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 284 full-service banking locations: 65 in the Houston area, including The Woodlands; 30 in the South Texas area including Corpus Christi and Victoria; 62 in the Dallas/Fort Worth area; 22 in the East Texas area; 31 in the Central Texas area including Austin and San Antonio; 45 in the West Texas area including Lubbock, Midland-Odessa, Abilene, Amarillo and Wichita Falls; 15 in the Bryan/College Station area; 6 in the Central Oklahoma area; and 8 in the Tulsa, Oklahoma area. Cautionary Notes on Forward-Looking Statements "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: This release contains, and the remarks by Prosperity's management on the conference call may contain, forward-looking statements within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, 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 Bancshares and its subsidiaries. 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 any 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. 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, and other reports and statements Prosperity has filed with the Securities and Exchange Commission ("SEC"). Copies of the SEC filings for Prosperity may be downloaded from the Internet at no charge from http://www.prosperitybankusa.com. _______________ (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 $3.2 million, net of tax, primarily comprised of loan discount accretion of $3.3 million for the three months ended March 31, 2025. (3) Includes purchase accounting adjustments of $2.0 million, net of tax, primarily comprised of loan discount accretion of $1.9 million for the three months ended March 31, 2024. (4) Includes purchase accounting adjustments of $3.3 million, net of tax, primarily comprised of loan discount accretion of $3.6 million for the three months ended December 31, 2024. Bryan/College Station Area Garland Rusk Mont Belvieu Milwaukee Bryan Grapevine Seven Points Nederland North University Bryan-29th Street Grapevine Main Teague Needville Texas Tech Student Union Bryan-East Kiest Tyler-Beckham Rosenberg Bryan-North Lake Highlands Tyler-South Broadway Shadow Creek Midland Caldwell McKinney Tyler-University Spring North College Station McKinney Eldorado Winnsboro Tomball Wadley Hearne McKinney Redbud Waller Wall Street Huntsville North Carrolton Houston Area West Columbia West Madisonville Park Cities Houston Wharton Navasota Plano Aldine Winnie Odessa New Waverly Plano-West Alief Wirt Grant Rock Prairie Preston Forest Bellaire Kermit Highway Southwest Parkway Preston Parker Beltway South Texas Area - Parkway Tower Point Preston Royal Clear Lake Corpus Christi Wellborn Road Red Oak Copperfield Calallen San Angelo Richardson Cypress Carmel College Hills Central Texas Area Richardson-West Downtown Northwest Sherwood Way Austin Rosewood Court Eastex Saratoga Cedar Park The Colony Fairfield Timbergate Wichita Falls Congress Tollroad First Colony Water Street Cattlemans Lakeway Trinity Mills Fry Road Kell Liberty Hill Turtle Creek Gessner Victoria Northland West 15th Plano Gladebrook Victoria Main Other West Texas Area Oak Hill West Allen Grand Parkway Victoria-Navarro Locations Research Blvd Westmoreland Heights Victoria-North Big Spring Westlake Wylie Highway 6 West Victoria Salem Big Spring - East Little York Brownfield Other Central Texas Area Fort Worth Medical Center Other South Texas Area Brownwood Locations Haltom City Memorial Drive Locations Burkburnett Bastrop Hulen Northside Alice Byers Canyon Lake Keller Pasadena Aransas Pass Cisco Dime Box Museum Place Pecan Grove Beeville Comanche Dripping Springs Renaissance Square Pin Oak Colony Creek Early Elgin Roanoke River Oaks Cuero Floydada Flatonia Stockyards Sugar Land Edna Gorman Fredericksburg SW Medical Center Goliad Henrietta Georgetown Other Dallas/Fort Worth Area Tanglewood Gonzales Levelland Gruene Locations The Plaza Hallettsville Littlefield Horseshoe Bay Arlington Uptown Kingsville Merkel Kingsland Azle Waugh Drive Mathis Plainview La Grange Ennis Westheimer Padre Island Slaton Lexington Gainesville West University Palacios Snyder Marble Falls Glen Rose Woodcreek Port Lavaca New Braunfels Granbury Portland Oklahoma Pleasanton Grand Prairie Katy Rockport Central Oklahoma Area Round Rock Jacksboro Cinco Ranch Sinton Oklahoma City San Antonio Mesquite Katy-Spring Green Taft 23rd Street Schulenburg Muenster Yoakum Expressway Seguin Runaway Bay The Woodlands Yorktown I-240 Smithville Sanger The Woodlands-College Park Memorial Thorndale Waxahachie The Woodlands-I-45 West Texas Area Weimar Weatherford The Woodlands-Research Forest Abilene Other Central Oklahoma Area Antilley Road Locations Dallas/Fort Worth Area East Texas Area Other Houston Area Barrow Street Edmond Dallas Athens Locations Cypress Street Norman 14th Street Plano Blooming Grove Angleton Judge Ely Abrams Centre Canton Bay City Mockingbird Tulsa Area Addison Carthage Beaumont Tulsa Allen Corsicana Cleveland Amarillo Garnett Balch Springs Crockett East Bernard Hillside Harvard Camp Wisdom Eustace El Campo Soncy Memorial Carrollton Gilmer Dayton Sheridan Cedar Hill Grapeland Galveston Lubbock S. Harvard Coppell Gun Barrel City Groves 4th Street Utica Tower East Plano Jacksonville Hempstead 66th Street Yale Euless Kerens Hitchcock 82nd Street Frisco Longview Liberty 86th Street Other Tulsa Area Locations Frisco Warren Mount Vernon Magnolia 98th Street Owasso Frisco-West Palestine Magnolia Parkway Avenue Q - - - Prosperity Bancshares, Inc.® Financial Highlights (Unaudited) (In thousands) Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Balance Sheet Data (at period end) Loans held for sale $ 9,764 $ 10,690 $ 6,113 $ 9,951 $ 6,380 Loans held for investment 20,909,913 21,057,616 21,146,033 21,229,461 20,393,943 Loans held for investment - Warehouse Purchase Program 1,057,893 1,080,903 1,228,706 1,081,403 864,924 Total loans 21,977,570 22,149,209 22,380,852 22,320,815 21,265,247 Investment securities(A) 10,792,731 11,094,424 11,300,756 11,702,139 12,301,138 Federal funds sold 221 292 208 234 250 Allowance for credit losses on loans (349,101) (351,805) (354,397) (359,852) (330,219) Cash and due from banks 1,694,637 1,972,175 2,209,863 1,507,604 1,086,444 Goodwill 3,503,127 3,503,129 3,504,388 3,504,107 3,396,402 Core deposit intangibles, net 62,406 66,047 70,178 74,324 60,757 Other real estate owned 8,012 5,701 5,757 4,960 2,204 Fixed assets, net 373,273 371,238 373,812 377,394 372,333 Other assets 701,799 756,328 623,903 630,569 601,964 Total assets $ 38,764,675 $ 39,566,738 $ 40,115,320 $ 39,762,294 $ 38,756,520 Noninterest-bearing deposits $ 9,675,915 $ 9,798,438 $ 9,811,361 $ 9,706,505 $ 9,526,535 Interest-bearing deposits 18,350,884 18,582,900 18,276,250 18,226,581 17,648,983 Total deposits 28,026,799 28,381,338 28,087,611 27,933,086 27,175,518 Other borrowings 2,700,000 3,200,000 3,900,000 3,900,000 3,900,000 Securities sold under repurchase agreements 216,086 221,913 228,896 233,689 261,671 Allowance for credit losses on off-balance sheet credit exposures 37,646 37,646 37,646 37,646 36,503 Other liabilities 267,083 287,346 499,918 374,429 278,284 Total liabilities 31,247,614 32,128,243 32,754,071 32,478,850 31,651,976 Shareholders' equity(B) 7,517,061 7,438,495 7,361,249 7,283,444 7,104,544 Total liabilities and equity $ 38,764,675 $ 39,566,738 $ 40,115,320 $ 39,762,294 $ 38,756,520 (A) Includes $(1,374), $(2,056), $(1,070), $(2,007) and $(2,954) in unrealized losses on available for sale securities for the quarterly periods ended March 31, 2025, December 31, 2024, September 30, 2024, June 30, 2024 and March 31, 2024, respectively. (B) Includes $(1,085), $(1,624), $(845), $(1,586) and $(2,333) in after-tax unrealized losses on available for sale securities for the quarterly periods ended March 31, 2025, December 31, 2024, September 30, 2024, June 30, 2024 and March 31, 2024, respectively. Prosperity Bancshares, Inc.® Financial Highlights (Unaudited) (In thousands) Three Months Ended Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Income Statement Data Interest income: Loans $ 319,023 $ 333,055 $ 337,451 $ 336,428 $ 306,228 Securities(C) 57,886 58,260 59,617 62,428 66,421 Federal funds sold and other earning assets 15,896 19,630 20,835 14,095 9,265 Total interest income 392,805 410,945 417,903 412,951 381,914 Interest expense: Deposits 95,597 102,050 107,758 106,124 92,692 Other borrowings 30,492 39,620 46,792 46,282 48,946 Securities sold under repurchase agreements 1,334 1,501 1,662 1,759 2,032 Total interest expense 127,423 143,171 156,212 154,165 143,670 Net interest income 265,382 267,774 261,691 258,786 238,244 Provision for credit losses — — — 9,066 — Net interest income after provision for credit losses 265,382 267,774 261,691 249,720 238,244 Noninterest income: Nonsufficient funds (NSF) fees 9,147 9,960 9,016 8,153 8,288 Credit card, debit card and ATM card income 8,739 9,443 9,620 9,384 8,861 Service charges on deposit accounts 7,408 6,992 6,664 6,436 6,406 Trust income 3,601 3,514 3,479 3,601 4,156 Mortgage income 1,009 779 962 745 610 Brokerage income 1,262 1,063 1,258 1,186 1,235 Bank owned life insurance income 2,115 2,020 2,028 1,885 2,047 Net (loss) gain on sale or write-down of assets (235) 584 3,178 (903) (35) Net gain on sale or write-up of securities — — 224 10,723 298 Other noninterest income 8,255 5,482 4,670 4,793 7,004 Total noninterest income 41,301 39,837 41,099 46,003 38,870 Noninterest expense: Salaries and benefits 89,476 88,631 88,367 89,584 85,771 Net occupancy and equipment 9,146 8,957 9,291 8,915 8,623 Credit and debit card, data processing and software amortization 11,422 12,342 11,985 11,998 10,975 Regulatory assessments and FDIC insurance 5,789 5,789 5,726 10,317 5,538 Core deposit intangibles amortization 3,641 4,131 4,146 4,156 3,237 Depreciation 4,774 4,791 4,741 4,836 4,686 Communications 3,473 3,450 3,360 3,485 3,402 Other real estate expense 140 255 12 69 187 Net (gain) loss on sale or write-down of other real estate (30) (610) (97) 31 (138) Merger related expenses — — 63 4,381 — Other noninterest expense 12,470 13,809 12,744 15,070 13,567 Total noninterest expense 140,301 141,545 140,338 152,842 135,848 Income before income taxes 166,382 166,066 162,452 142,881 141,266 Provision for income taxes 36,157 35,990 35,170 31,279 30,840 Net income available to common shareholders $ 130,225 $ 130,076 $ 127,282 $ 111,602 $ 110,426 (C) Interest income on securities was reduced by net premium amortization of $5,027, $5,609, $5,574, $5,831 and $5,822 for the three months ended March 31, 2025, December 31, 2024, September 30, 2024, June 30, 2024 and March 31, 2024, respectively. Prosperity Bancshares, Inc. ® Financial Highlights (Unaudited) (Dollars and share amounts in thousands, except per share data and market prices) Three Months Ended Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Profitability Net income (D) (E) $ 130,225 $ 130,076 $ 127,282 $ 111,602 $ 110,426 Basic earnings per share $ 1.37 $ 1.37 $ 1.34 $ 1.17 $ 1.18 Diluted earnings per share $ 1.37 $ 1.37 $ 1.34 $ 1.17 $ 1.18 Return on average assets (F) (J) 1.34 % 1.31 % 1.28 % 1.12 % 1.13 % Return on average common equity (F) (J) 6.94 % 7.00 % 6.93 % 6.10 % 6.20 % Return on average tangible common equity (F) (G) (J) 13.23 % 13.50 % 13.50 % 11.81 % 12.06 % Tax equivalent net interest margin (D) (E) (H) 3.14 % 3.05 % 2.95 % 2.94 % 2.79 % Efficiency ratio (G) (I) (K) 45.71 % 46.10 % 46.87 % 51.82 % 49.07 % Liquidity and Capital Ratios Equity to assets 19.39 % 18.80 % 18.35 % 18.32 % 18.33 % Common equity tier 1 capital 16.97 % 16.42 % 15.84 % 15.42 % 15.75 % Tier 1 risk-based capital 16.97 % 16.42 % 15.84 % 15.42 % 15.75 % Total risk-based capital 18.22 % 17.67 % 17.09 % 16.67 % 17.00 % Tier 1 leverage capital 11.20 % 10.82 % 10.52 % 10.29 % 10.37 % Period end tangible equity to period end tangible assets (G) 11.23 % 10.75 % 10.36 % 10.24 % 10.33 % Other Data Weighted-average shares used in computing earnings per common share Basic 95,266 95,264 95,261 95,765 93,706 Diluted 95,266 95,264 95,261 95,765 93,706 Period end shares outstanding 95,258 95,275 95,261 95,262 93,525 Cash dividends paid per common share $ 0.58 $ 0.58 $ 0.56 $ 0.56 $ 0.56 Book value per common share $ 78.91 $ 78.07 $ 77.27 $ 76.46 $ 75.96 Tangible book value per common share (G) $ 41.48 $ 40.61 $ 39.75 $ 38.89 $ 39.00 Common Stock Market Price High $ 82.75 $ 86.76 $ 74.87 $ 66.18 $ 68.88 Low $ 68.96 $ 68.94 $ 58.66 $ 57.16 $ 60.08 Period end closing price $ 71.37 $ 75.35 $ 72.07 $ 61.14 $ 65.78 Employees – FTE (excluding overtime) 3,898 3,916 3,896 3,902 3,901 Number of banking centers 284 283 287 288 283 (D) |Includes purchase accounting adjustments for the periods presented as follows: Three Months Ended Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Loan discount accretion Non-PCD $2,615 $2,761 $3,616 $4,797 $1,312 PCD $677 $850 $1,212 $2,394 $548 Securities net accretion $705 $528 $555 $564 $561 Time deposits amortization $(9) $(21) $(40) $4 $(97) (E) Using effective tax rate of 21.7%, 21.7%, 21.6%, 21.9% and 21.8% for the three months ended March 31, 2025, December 31, 2024, September 30, 2024, June 30, 2024 and March 31, 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 Mar 31, 2025 Dec 31, 2024 Mar 31, 2024 AverageBalance InterestEarned/InterestPaid AverageYield/Rate (L) AverageBalance InterestEarned/InterestPaid AverageYield/Rate (L) AverageBalance InterestEarned/InterestPaid AverageYield/Rate (L) Interest-earning assets: Loans held for sale $ 7,570 $ 127 6.80 % $ 8,571 $ 144 6.68 % $ 5,467 $ 92 6.77 % Loans held for investment 20,959,226 305,068 5.90 % 21,038,694 313,863 5.93 % 20,415,316 292,673 5.77 % Loans held for investment - Warehouse Purchase Program 876,086 13,828 6.40 % 1,137,113 19,048 6.66 % 720,650 13,463 7.51 % Total loans 21,842,882 319,023 5.92 % 22,184,378 333,055 5.97 % 21,141,433 306,228 5.83 % Investment securities 11,017,400 57,886 2.13 % (M) 11,265,535 58,260 2.06 % (M) 12,693,268 66,421 2.10 % (M) Federal funds sold and other earning assets 1,443,220 15,896 4.47 % 1,628,050 19,630 4.80 % 672,840 9,265 5.54 % Total interest-earning assets 34,303,502 392,805 4.64 % 35,077,963 410,945 4.66 % 34,507,541 381,914 4.45 % Allowance for credit losses on loans (350,715) (353,560) (331,708) Noninterest-earning assets 5,004,291 4,902,996 4,759,697 Total assets $ 38,957,078 $ 39,627,399 $ 38,935,530 Interest-bearing liabilities: Interest-bearing demand deposits $ 5,224,796 $ 9,019 0.70 % $ 4,845,174 $ 8,535 0.70 % $ 5,143,585 $ 8,423 0.66 % Savings and money market deposits 9,007,286 45,645 2.06 % 8,915,410 47,089 2.10 % 8,889,077 47,152 2.13 % Certificates and other time deposits 4,426,521 40,933 3.75 % 4,552,445 46,426 4.06 % 3,683,815 37,117 4.05 % Other borrowings 2,776,667 30,492 4.45 % 3,332,609 39,620 4.73 % 4,083,132 48,946 4.82 % Securities sold under repurchase agreements 217,945 1,334 2.48 % 231,240 1,501 2.58 % 296,437 2,032 2.76 % Total interest-bearing liabilities 21,653,215 127,423 2.39 % (N) 21,876,878 143,171 2.60 % (N) 22,096,046 143,670 2.62 % (N) Noninterest-bearing liabilities: Noninterest-bearing demand deposits 9,504,540 9,829,912 9,443,249 Allowance for credit losses on off-balance sheet credit exposures 37,646 37,646 36,503 Other liabilities 255,876 454,298 238,480 Total liabilities 31,451,277 32,198,734 31,814,278 Shareholders' equity 7,505,801 7,428,665 7,121,252 Total liabilities and shareholders' equity $ 38,957,078 $ 39,627,399 $ 38,935,530 Net interest income and margin $ 265,382 3.14 % $ 267,774 3.04 % $ 238,244 2.78 % Non-GAAP to GAAP reconciliation: Tax equivalent adjustment 587 767 808 Net interest income and margin (tax equivalent basis) $ 265,969 3.14 % $ 268,541 3.05 % $ 239,052 2.79 % (L) Annualized and based on an actual 365-day or 366-day basis. (M) Yield on securities was impacted by net premium amortization of $5,027, $5,609 and $5,822 for the three months ended March 31, 2025, December 31, 2024 and March 31, 2024, respectively. (N) Total cost of funds, including noninterest bearing deposits, was 1.66%, 1.80% and 1.83% for the three months ended March 31, 2025, December 31, 2024 and March 31, 2024, respectively. Prosperity Bancshares, Inc.® Financial Highlights (Unaudited) (Dollars in thousands) Three Months Ended Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 YIELD TREND (O) Interest-Earning Assets: Loans held for sale 6.80 % 6.68 % 6.89 % 7.10 % 6.77 % Loans held for investment 5.90 % 5.93 % 5.97 % 6.02 % 5.77 % Loans held for investment - Warehouse Purchase Program 6.40 % 6.66 % 7.27 % 7.42 % 7.51 % Total loans 5.92 % 5.97 % 6.04 % 6.08 % 5.83 % Investment securities (P) 2.13 % 2.06 % 2.04 % 2.06 % 2.10 % Federal funds sold and other earning assets 4.47 % 4.80 % 5.41 % 5.52 % 5.54 % Total interest-earning assets 4.64 % 4.66 % 4.70 % 4.68 % 4.45 % Interest-Bearing Liabilities: Interest-bearing demand deposits 0.70 % 0.70 % 0.77 % 0.76 % 0.66 % Savings and money market deposits 2.06 % 2.10 % 2.23 % 2.22 % 2.13 % Certificates and other time deposits 3.75 % 4.06 % 4.24 % 4.27 % 4.05 % Other borrowings 4.45 % 4.73 % 4.77 % 4.77 % 4.82 % Securities sold under repurchase agreements 2.48 % 2.58 % 2.72 % 2.74 % 2.76 % Total interest-bearing liabilities 2.39 % 2.60 % 2.78 % 2.76 % 2.62 % Net Interest Margin 3.14 % 3.04 % 2.94 % 2.94 % 2.78 % Net Interest Margin (tax equivalent) 3.14 % 3.05 % 2.95 % 2.94 % 2.79 % (O) Annualized and based on average balances on an actual 365-day or 366-day basis. (P) Yield on securities was impacted by net premium amortization of $5,027, $5,609, $5,574, $5,831 and $5,822 for the three months ended March 31, 2025, December 31, 2024, September 30, 2024, June 30, 2024 and March 31, 2024, respectively. Prosperity Bancshares, Inc.® Financial Highlights (Unaudited) (Dollars in thousands) Three Months Ended Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Balance Sheet Averages Loans held for sale $ 7,570 $ 8,571 $ 7,913 $ 8,446 $ 5,467 Loans held for investment 20,959,226 21,038,694 21,107,139 21,328,824 20,415,316 Loans held for investment - Warehouse Purchase Program 876,086 1,137,113 1,114,681 917,026 720,650 Total loans 21,842,882 22,184,378 22,229,733 22,254,296 21,141,433 Investment securities 11,017,400 11,265,535 11,612,193 12,179,074 12,693,268 Federal funds sold and other earning assets 1,443,220 1,628,050 1,531,788 1,026,251 672,840 Total interest-earning assets 34,303,502 35,077,963 35,373,714 35,459,621 34,507,541 Allowance for credit losses on loans (350,715) (353,560) (358,237) (332,904) (331,708) Cash and due from banks 326,066 317,420 304,911 295,077 315,612 Goodwill 3,503,128 3,505,030 3,504,300 3,482,448 3,396,177 Core deposit intangibles, net 64,293 68,167 72,330 59,979 62,482 Other real estate 7,105 6,778 5,339 3,071 2,319 Fixed assets, net 374,448 373,561 375,626 377,369 372,458 Other assets 729,251 632,040 611,219 604,187 610,649 Total assets $ 38,957,078 $ 39,627,399 $ 39,889,202 $ 39,948,848 $ 38,935,530 Noninterest-bearing deposits $ 9,504,540 $ 9,829,912 $ 9,680,785 $ 9,780,211 $ 9,443,249 Interest-bearing demand deposits 5,224,796 4,845,174 4,774,975 4,839,194 5,143,585 Savings and money market deposits 9,007,286 8,915,410 8,908,315 9,084,051 8,889,077 Certificates and other time deposits 4,426,521 4,552,445 4,564,232 4,400,922 3,683,815 Total deposits 28,163,143 28,142,941 27,928,307 28,104,378 27,159,726 Other borrowings 2,776,667 3,332,609 3,900,000 3,900,000 4,083,132 Securities sold under repurchase agreements 217,945 231,240 242,813 258,637 296,437 Allowance for credit losses on off-balance sheet credit exposures 37,646 37,646 37,646 36,729 36,503 Other liabilities 255,876 454,298 433,171 327,847 238,480 Shareholders' equity 7,505,801 7,428,665 7,347,265 7,321,257 7,121,252 Total liabilities and equity $ 38,957,078 $ 39,627,399 $ 39,889,202 $ 39,948,848 $ 38,935,530 Prosperity Bancshares, Inc.® Financial Highlights (Unaudited) (Dollars in thousands) Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Period End Balances Loan Portfolio Commercial and industrial $1,915,124 8.7 % $1,962,111 8.8 % $1,970,844 8.8 % $2,023,531 9.1 % $1,932,534 9.1 % Warehouse purchase program 1,057,893 4.8 % 1,080,903 4.9 % 1,228,706 5.5 % 1,081,403 4.8 % 864,924 4.1 % Construction, land development and other land loans 2,845,082 13.0 % 2,859,281 12.9 % 2,814,521 12.6 % 2,828,372 12.7 % 2,876,588 13.5 % 1-4 family residential 7,576,350 34.5 % 7,581,450 34.2 % 7,557,858 33.8 % 7,496,485 33.6 % 7,331,251 34.5 % Home equity 896,529 4.1 % 906,139 4.1 % 919,676 4.1 % 930,428 4.2 % 950,169 4.5 % Commercial real estate (includes multi-family residential) 5,783,410 26.3 % 5,800,985 26.2 % 5,869,687 26.2 % 5,961,884 26.7 % 5,631,460 26.5 % Agriculture (includes farmland) 1,013,960 4.6 % 1,033,546 4.7 % 1,033,224 4.6 % 1,037,361 4.6 % 813,092 3.8 % Consumer and other 378,821 1.7 % 378,817 1.7 % 413,548 1.8 % 340,611 1.5 % 326,915 1.5 % Energy 510,401 2.3 % 545,977 2.5 % 572,788 2.6 % 620,740 2.8 % 538,314 2.5 % Total loans $21,977,570 $22,149,209 $22,380,852 $22,320,815 $21,265,247 Deposit Types Noninterest-bearing DDA $9,675,915 34.5 % $9,798,438 34.5 % $9,811,361 34.9 % $9,706,505 34.7 % $9,526,535 35.1 % Interest-bearing DDA 4,931,769 17.6 % 5,182,035 18.3 % 4,800,758 17.1 % 4,762,730 17.1 % 4,867,247 17.9 % Money market 6,339,509 22.6 % 6,229,022 21.9 % 6,166,792 22.0 % 6,180,769 22.1 % 6,134,221 22.6 % Savings 2,703,736 9.7 % 2,685,496 9.5 % 2,707,982 9.6 % 2,765,197 9.9 % 2,830,117 10.4 % Certificates and other time deposits 4,375,870 15.6 % 4,486,347 15.8 % 4,600,718 16.4 % 4,517,885 16.2 % 3,817,398 14.0 % Total deposits $28,026,799 $28,381,338 $28,087,611 $27,933,086 $27,175,518 Loan to Deposit Ratio 78.4 % 78.0 % 79.7 % 79.9 % 78.3 % Prosperity Bancshares, Inc.® Financial Highlights (Unaudited) (Dollars in thousands) Construction Loans Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Single family residential construction $ 727,417 25.6 % $ 778,067 27.2 % $ 836,571 29.7 % $ 940,381 33.2 % $ 1,031,163 35.8 % Land development 225,784 7.9 % 260,158 9.1 % 256,571 9.1 % 241,639 8.5 % 290,243 10.1 % Raw land 261,918 9.2 % 278,892 9.7 % 263,411 9.4 % 291,112 10.3 % 311,265 10.8 % Residential lots 219,115 7.7 % 209,850 7.3 % 217,920 7.7 % 222,343 7.9 % 224,901 7.8 % Commercial lots 56,343 2.0 % 59,044 2.1 % 58,472 2.1 % 60,264 2.1 % 59,691 2.1 % Commercial construction and other 1,355,587 47.6 % 1,274,619 44.6 % 1,183,127 42.0 % 1,074,361 38.0 % 959,687 33.4 % Net unaccreted discount (1,082) (1,349) (1,551) (1,728) (362) Total construction loans $ 2,845,082 $ 2,859,281 $ 2,814,521 $ 2,828,372 $ 2,876,588 Non-Owner Occupied Commercial Real Estate Loans by Metropolitan Statistical Area (MSA) as of March 31, 2025 Houston Dallas Austin OK City Tulsa Other (Q) Total Collateral Type Shopping center/retail $ 346,908 $ 267,598 $ 59,782 $ 15,378 $ 13,316 $ 329,976 $ 1,032,958 Commercial and industrial buildings 133,345 108,865 22,286 34,480 12,650 280,894 592,520 Office buildings 99,324 218,192 124,542 46,002 4,435 88,523 581,018 Medical buildings 83,321 17,176 1,672 42,396 28,386 77,225 250,176 Apartment buildings 92,435 119,450 64,487 10,802 13,696 209,732 510,602 Hotel 109,443 120,154 30,981 11,408 — 185,995 457,981 Other 174,428 53,390 19,365 7,187 6,861 92,077 353,308 Total $ 1,039,204 $ 904,825 $ 323,115 $ 167,653 $ 79,344 $ 1,264,422 $ 3,778,563 (R) Acquired Loans Non-PCD Loans PCD Loans Total Acquired Loans Balance at Acquisition Date Balance atDec 31,2024 Balance atMar 31,2025 Balance at AcquisitionDate Balance atDec 31,2024 Balance atMar 31,2025 Balance at AcquisitionDate Balance atDec 31,2024 Balance atMar 31,2025 Loan marks: Acquired banks (S) $ 368,247 $ 14,201 $ 13,536 $ 327,842 $ 5,931 $ 5,620 $ 696,089 $ 20,132 $ 19,156 Lone Star Bank (T) 20,378 13,644 11,714 4,558 1,459 1,093 24,936 15,103 12,807 Total 388,625 27,845 25,250 332,400 7,390 6,713 721,025 35,235 31,963 Acquired portfolio loan balances: Acquired banks (S) 13,307,853 1,353,801 1,281,901 1,317,564 389,794 380,484 14,625,417 1,743,595 1,662,385 Lone Star Bank (T) 1,016,128 735,828 645,440 59,109 50,230 47,559 1,075,237 786,058 692,999 Total 14,323,981 2,089,629 1,927,341 1,376,673 440,024 428,043 15,700,654 (U) 2,529,653 2,355,384 Acquired portfolio loan balances less loan marks $ 13,935,356 $ 2,061,784 $ 1,902,091 $ 1,044,273 $ 432,634 $ 421,330 $ 14,979,629 $ 2,494,418 $ 2,323,421 (Q) Includes other MSA and non-MSA regions. (R) Represents a portion of total commercial real estate loans of $5.783 billion as of March 31, 2025. (S) Includes Bank Arlington, American State Bank, Community National Bank, First Federal Bank Texas, Coppermark Bank, First Victoria National Bank, The F&M Bank & Trust Company, Tradition Bank, LegacyTexas Bank and FirstCapital Bank. (T) 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. (U) Actual principal balances acquired. Prosperity Bancshares, Inc.® Financial Highlights (Unaudited) (Dollars in thousands) Three Months Ended Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Asset Quality Nonaccrual loans $ 73,287 $ 73,647 $ 83,969 $ 84,175 $ 78,475 Accruing loans 90 or more days past due 91 2,189 20 322 3,035 Total nonperforming loans 73,378 75,836 83,989 84,497 81,510 Repossessed assets 29 4 177 113 97 Other real estate 8,012 5,701 5,757 4,960 2,204 Total nonperforming assets $ 81,419 $ 81,541 $ 89,923 $ 89,570 $ 83,811 Nonperforming assets: Commercial and industrial (includes energy) $ 8,966 $ 10,080 $ 13,642 $ 16,340 $ 10,199 Construction, land development and other land loans 1,952 4,481 4,053 4,895 15,826 1-4 family residential (includes home equity) 42,481 44,824 36,660 33,935 30,206 Commercial real estate (includes multi-family residential) 12,257 18,861 32,803 31,776 23,720 Agriculture (includes farmland) 15,725 3,208 2,686 2,550 3,714 Consumer and other 38 87 79 74 146 Total $ 81,419 $ 81,541 $ 89,923 $ 89,570 $ 83,811 Number of loans/properties 363 368 346 349 319 Allowance for credit losses on loans $ 349,101 $ 351,805 $ 354,397 $ 359,852 $ 330,219 Net charge-offs (recoveries): Commercial and industrial (includes energy) $ 330 $ 405 $ 3,309 $ 2,777 $ 283 Construction, land development and other land loans (156) 294 378 109 (2) 1-4 family residential (includes home equity) 1,051 180 409 425 457 Commercial real estate (includes multi-family residential) 178 362 258 (381) (17) Agriculture (includes farmland) — 5 (116) 214 23 Consumer and other 1,301 1,346 1,217 1,224 1,399 Total $ 2,704 $ 2,592 $ 5,455 $ 4,368 $ 2,143 Asset Quality Ratios Nonperforming assets to average interest-earning assets 0.24 % 0.23 % 0.25 % 0.25 % 0.24 % Nonperforming assets to loans and other real estate 0.37 % 0.37 % 0.40 % 0.40 % 0.39 % Net charge-offs to average loans (annualized) 0.05 % 0.05 % 0.10 % 0.08 % 0.04 % Allowance for credit losses on loans to total loans 1.59 % 1.59 % 1.58 % 1.61 % 1.55 % Allowance for credit losses on loans to total loans, excluding Warehouse Purchase Program loans (G) 1.67 % 1.67 % 1.68 % 1.69 % 1.62 % 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 Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 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) $ 1.37 $ 1.37 $ 1.34 $ 1.17 $ 1.18 Net income $ 130,225 $ 130,076 $ 127,282 $ 111,602 $ 110,426 Merger related provision for credit losses, net of tax(V) — — — 7,162 — Merger related expenses, net of tax(V) — — 50 3,461 — FDIC special assessment, net of tax(V) — — — 2,807 — Net gain on sale or write-up of securities, net of tax(V) — — (177) (8,472) (235) 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(V): $ 130,225 $ 130,076 $ 127,155 $ 116,560 $ 110,191 Weighted average diluted shares outstanding 95,266 95,264 95,261 95,765 93,706 Merger related provision for credit losses, net of tax, per diluted common share(V) $ — $ — $ — $ 0.07 $ — Merger related expenses, net of tax, per diluted common share(V) $ — $ — $ — $ 0.04 $ — FDIC special assessment, net of tax, per diluted common share(V) $ — $ — $ — $ 0.03 $ — Net gain on sale or write-up of securities, net of tax, per diluted common share(V) $ — $ — $ — $ (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:(V) $ 1.37 $ 1.37 $ 1.34 $ 1.22 $ 1.18 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) 1.34 % 1.31 % 1.28 % 1.12 % 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(V): $ 130,225 $ 130,076 $ 127,155 $ 116,560 $ 110,191 Average total assets $ 38,957,078 $ 39,627,399 $ 39,889,202 $ 39,948,848 $ 38,935,530 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) (V) 1.34 % 1.31 % 1.28 % 1.17 % 1.13 % (V) Calculated assuming a federal tax rate of 21.0%. Three Months Ended Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 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) 6.94 % 7.00 % 6.93 % 6.10 % 6.20 % 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(V): $ 130,225 $ 130,076 $ 127,155 $ 116,560 $ 110,191 Average shareholders' equity $ 7,505,801 $ 7,428,665 $ 7,347,265 $ 7,321,257 $ 7,121,252 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) (V) 6.94 % 7.00 % 6.92 % 6.37 % 6.19 % Reconciliation of return on average common equity to return on average tangible common equity: Net income $ 130,225 $ 130,076 $ 127,282 $ 111,602 $ 110,426 Average shareholders' equity $ 7,505,801 $ 7,428,665 $ 7,347,265 $ 7,321,257 $ 7,121,252 Less: Average goodwill and other intangible assets (3,567,421) (3,573,197) (3,576,630) (3,542,427) (3,458,659) Average tangible shareholders' equity $ 3,938,380 $ 3,855,468 $ 3,770,635 $ 3,778,830 $ 3,662,593 Return on average tangible common equity (F) 13.23 % 13.50 % 13.50 % 11.81 % 12.06 % 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(V): $ 130,225 $ 130,076 $ 127,155 $ 116,560 $ 110,191 Average shareholders' equity $ 7,505,801 $ 7,428,665 $ 7,347,265 $ 7,321,257 $ 7,121,252 Less: Average goodwill and other intangible assets (3,567,421) (3,573,197) (3,576,630) (3,542,427) (3,458,659) Average tangible shareholders' equity $ 3,938,380 $ 3,855,468 $ 3,770,635 $ 3,778,830 $ 3,662,593 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) (V) 13.23 % 13.50 % 13.49 % 12.34 % 12.03 % Reconciliation of book value per share to tangible book value per share: Shareholders' equity $ 7,517,061 $ 7,438,495 $ 7,361,249 $ 7,283,444 $ 7,104,544 Less: Goodwill and other intangible assets (3,565,533) (3,569,176) (3,574,566) (3,578,431) (3,457,159) Tangible shareholders' equity $ 3,951,528 $ 3,869,319 $ 3,786,683 $ 3,705,013 $ 3,647,385 Period end shares outstanding 95,258 95,275 95,261 95,262 93,525 Tangible book value per share $ 41.48 $ 40.61 $ 39.75 $ 38.89 $ 39.00 Reconciliation of equity to assets ratio to period end tangible equity to period end tangible assets ratio: Tangible shareholders' equity $ 3,951,528 $ 3,869,319 $ 3,786,683 $ 3,705,013 $ 3,647,385 Total assets $ 38,764,675 $ 39,566,738 $ 40,115,320 $ 39,762,294 $ 38,756,520 Less: Goodwill and other intangible assets (3,565,533) (3,569,176) (3,574,566) (3,578,431) (3,457,159) Tangible assets $ 35,199,142 $ 35,997,562 $ 36,540,754 $ 36,183,863 $ 35,299,361 Period end tangible equity to period end tangible assets ratio 11.23 % 10.75 % 10.36 % 10.24 % 10.33 % Three Months Ended Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 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 $ 349,101 $ 351,805 $ 354,397 $ 359,852 $ 330,219 Total loans $ 21,977,570 $ 22,149,209 $ 22,380,852 $ 22,320,815 $ 21,265,247 Less: Warehouse Purchase Program loans (1,057,893) (1,080,903) (1,228,706) (1,081,403) (864,924) Total loans less Warehouse Purchase Program $ 20,919,677 $ 21,068,306 $ 21,152,146 $ 21,239,412 $ 20,400,323 Allowance for credit losses on loans to total loans excluding Warehouse Purchase Program 1.67 % 1.67 % 1.68 % 1.69 % 1.62 % 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 $ 140,301 $ 141,545 $ 140,338 $ 152,842 $ 135,848 Net interest income $ 265,382 $ 267,774 $ 261,691 $ 258,786 $ 238,244 Noninterest income 41,301 39,837 41,099 46,003 38,870 Less: net (loss) gain on sale or write-down of assets (235) 584 3,178 (903) (35) Less: net gain on sale or write-up of securities — — 224 10,723 298 Noninterest income excluding net gains and losses on the sale, write-down or write-up of assets and securities 41,536 39,253 37,697 36,183 38,607 Total income excluding net gains and losses on the sale, write-down or write-up of assets and securities $ 306,918 $ 307,027 $ 299,388 $ 294,969 $ 276,851 Efficiency ratio, excluding net gains and losses on the sale, write-down or write-up of assets and securities 45.71 % 46.10 % 46.87 % 51.82 % 49.07 % 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 $ 140,301 $ 141,545 $ 140,338 $ 152,842 $ 135,848 Less: merger related expenses — — 63 4,381 — Less: FDIC special assessment — — — 3,554 — Noninterest expense excluding merger related expenses and FDIC special assessment $ 140,301 $ 141,545 $ 140,275 $ 144,907 $ 135,848 Net interest income $ 265,382 $ 267,774 $ 261,691 $ 258,786 $ 238,244 Noninterest income 41,301 39,837 41,099 46,003 38,870 Less: net (loss) gain on sale or write down of assets (235) 584 3,178 (903) (35) Less: net gain on sale or write-up of securities — — 224 10,723 298 Noninterest income excluding net gains and losses on the sale, write-down or write-up of assets and securities 41,536 39,253 37,697 36,183 38,607 Total income excluding net gains and losses on the sale, write-down or write-up of assets and securities $ 306,918 $ 307,027 $ 299,388 $ 294,969 $ 276,851 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 45.71 % 46.10 % 46.85 % 49.13 % 49.07 % SOURCE Prosperity Bancshares, Inc. 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PROSPERITY BANCSHARES, INC.® REPORTS FIRST QUARTER 2025 EARNINGS

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