PROSPERITY BANCSHARES, INC.® REPORTS THIRD QUARTER 2025 EARNINGS

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

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

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

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

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

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

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

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

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

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

The net interest margin on a tax equivalent basis was 3.24% for the three months ended September 30, 2025, compared with 2.95% for the same period in 2024. The change was primarily due to a decrease in the average balances and average rates on other borrowings and a decrease in the average rates on interest-bearing deposits, partially offset by a decrease in the average balances and average rates on federal funds sold and other earning assets, a decrease in the average balances and average rates on loans and a decrease in loan discount accretion of $2.0 million. The net interest margin on a tax equivalent basis was 3.24% for the three months ended September 30, 2025, compared with 3.18% for the three months ended June 30, 2025, primarily due to a decrease in the average balances for other borrowings.

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

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

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

For the nine months ended September 30, 2025, net income was $402.9 million (5) compared with $349.3 million (6) for the same period in 2024, an increase of $53.6 million or 15.4%. Net income per diluted common share was $4.23 for the nine months ended September 30, 2025, compared with $3.68 for the same period in 2024, an increase of 14.9%. The changes were primarily due to an increase in net interest income, lower merger related provision and expenses, and lower regulatory assessments and FDIC insurance, partially offset by a decrease in net gain on sale or write-up of securities. Returns on average assets, average common equity and average tangible common equity for the nine months ended September 30, 2025, were 1.40%, 7.08% and 13.36% (1), respectively.

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

The net interest margin on a tax equivalent basis for the nine months ended September 30, 2025, was 3.19% compared with 2.86% for the same period in 2024. The change was primarily due to a decrease in the average balances and average rates on other borrowings and a decrease in the average rates on interest-bearing deposits, partially offset by a decrease in the average balances on investment securities, a decrease in the average balances and average rates on federal funds sold and other earning assets, a decrease in loan discount accretion of $4.6 million and a decrease in the average balances on loans.

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

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

Balance Sheet Information

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

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

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

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

Asset Quality

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

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

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

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

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

Dividend

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

Stock Repurchase Program

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

Agreement to Acquire Southwest Bancshares, Inc.

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

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

Pending Acquisition of American Bank Holding Corporation

On July 18, 2025, Prosperity Bancshares and American Bank Holding Corporation ("American") jointly announced the signing of a definitive merger agreement (the "Prosperity/American Merger Agreement") whereby American, a Texas corporation and bank holding company of American Bank, N.A. ("American Bank"), will merge with and into Prosperity Bancshares and American Bank will merge with and into Prosperity Bank. American Bank operates 18 banking offices and 2 loan production offices in South and Central Texas including its main office in Corpus Christi, and banking offices in San Antonio, Austin, Victoria and the greater Corpus Christi area including Port Aransas and Rockport and a loan production office in Houston, Texas. As of June 30, 2025, American, on a consolidated basis, reported total assets of $2.553 billion, total loans of $1.798 billion and total deposits of $2.293 billion.

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

Conference Call

Prosperity's management team will host a conference call on Wednesday, October 29, 2025, at 11:30 a.m. Eastern Time (10:30 a.m. Central Time) to discuss Prosperity's third quarter 2025 earnings. Individuals and investment professionals may participate in the call by dialing 877-883-0383 for domestic participants, or 412-902-6506 for international participants. The participant elite entry number is 2818776.

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

Non-GAAP Financial Measures

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

Prosperity Bancshares, Inc. ®

As of September 30, 2025, Prosperity Bancshares, Inc. ® is a $38.330 billion Houston, Texas based regional financial holding company providing personal banking services and investments to consumers and businesses throughout Texas and Oklahoma. Founded in 1983, Prosperity believes in a community banking philosophy, taking care of customers, businesses and communities in the areas it serves by providing financial solutions to simplify everyday financial needs. In addition to offering traditional deposit and loan products, Prosperity offers digital banking solutions, credit and debit cards, mortgage services, retail brokerage services, trust and wealth management, and treasury management.

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

Cautionary Notes on Forward-Looking Statements

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: This release contains, and the remarks by Prosperity's management on the conference call may contain, statements regarding the proposed transactions between (1) Prosperity Bancshares, Inc. ("Prosperity") and Southwest Bancshares, Inc. ("Southwest") and (2) Prosperity and American Bank Holding Corporation ("American"); future financial and operating results; benefits and synergies of the transactions; future opportunities for Prosperity; the issuances of common stock of Prosperity contemplated by the Agreement and Plan of Merger by and between Prosperity and Southwest (the "Prosperity/Southwest Merger Agreement") and the Agreement and Plan of Merger by and between Prosperity and American (the "Prosperity/American Merger Agreement" and, together with the Prosperity/Southwest Merger Agreement, the "Merger Agreements"); in connection with the proposed transaction between Prosperity and Southwest, the expected filing by Prosperity with the Securities and Exchange Commission (the "SEC") of a registration statement on Form S-4 (the "Prosperity/Southwest Registration Statement") and a prospectus of Prosperity and a proxy statement of Southwest to be included therein (the "Prosperity/Southwest Proxy Statement/Prospectus"); in connection with the proposed transaction between Prosperity and American, a registration statement on Form S-4 (the "Prosperity/American Registration Statement" and, together with the Prosperity/Southwest Registration Statement, the "Registration Statements") and a preliminary prospectus of Prosperity and a proxy statement of American included therein (the "Prosperity/American Proxy Statement/ Prospectus" and, together with the Southwest Proxy Statement/ Prospectus, the "Proxy Statement/ Prospectuses"), which registration statement was filed with the SEC on September 17, 2025, and amended on September 30, 2025; the expected timing of the closing of the proposed transactions; the ability of the parties to complete the proposed transactions considering the various closing conditions and any other statements about future expectations that constitute forward-looking statements within the meaning of the federal securities laws, including the meaning of the Private Securities Litigation Reform Act of 1995, as amended, Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended. From time to time, oral or written forward-looking statements may also be included in other information released to the public. Such forward-looking statements are typically, but not exclusively, identified by the use in the statements of words or phrases such as "aim," "anticipate," "believe," "estimate," "expect," "goal," "guidance," "intend," "is anticipated," "is expected," "is intended," "objective," "plan," "projected," "projection," "will affect," "will be," "will continue," "will decrease," "will grow," "will impact," "will increase," "will incur," "will reduce," "will remain," "will result," "would be," variations of such words or phrases (including where the word "could," "may," or "would" is used rather than the word "will" in a phrase) and similar words and phrases indicating that the statement addresses some future result, occurrence, plan or objective. Forward-looking statements include all statements other than statements of historical fact, including forecasts or trends, and are based on current expectations, assumptions, estimates, and projections about Prosperity and its subsidiaries or related to the proposed transactions between (1) Prosperity and Southwest and (2) Prosperity and American and are subject to significant risks and uncertainties that could cause actual results to differ materially from the results expressed in such statements.

These forward-looking statements may include information about Prosperity's possible or assumed future economic performance or future results of operations, including future revenues, income, expenses, provision for credit losses, provision for taxes, effective tax rate, earnings per share and cash flows and Prosperity's future capital expenditures and dividends, future financial condition and changes therein, including changes in Prosperity's loan portfolio and allowance for credit losses, future capital structure or changes therein, as well as the plans and objectives of management for Prosperity's future operations, future or proposed acquisitions, the future or expected effect of acquisitions on Prosperity's operations, results of operations, financial condition, and future economic performance, statements about the anticipated benefits of each of the proposed transactions, and statements about the assumptions underlying any such statement.

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

Additional Information about the Transactions and Where to Find It

Prosperity intends to file with the SEC the Prosperity/Southwest Registration Statement on Form S-4 to register the shares of Prosperity common stock to be issued to the shareholders of Southwest in connection with Prosperity's and Southwest's proposed transaction. The Prosperity/Southwest Registration Statement will include the Prosperity/Southwest Proxy Statement/Prospectus which will be sent to the shareholders of Southwest in connection with the proposed transaction. This communication is not a substitute for the Prosperity/Southwest Proxy Statement/Prospectus or any other document which Prosperity may file with the SEC. In connection with Prosperity's and American's proposed transaction, Prosperity has filed with the SEC on September 17, 2025 the Prosperity/American Registration Statement on Form S-4, as amended on September 30, 2025, (the "Amended Prosperity/American Registration Statement") (which Amended Prosperity/American Registration Statement was declared effective by the SEC on September 30, 2025), to register the shares of Prosperity common stock to be issued to the shareholders of American in connection with Prosperity's and American's proposed transaction. The Prosperity/American Proxy Statement/Prospectus will be delivered to shareholders of American. Prosperity may also file other documents with the SEC regarding the proposed transaction. This communication is not a substitute for the Prosperity/American Proxy Statement/Prospectus or Amended Prosperity/American Registration Statement or any other document which Prosperity may file with the SEC. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE APPLICABLE REGISTRATION STATEMENT ON FORM S-4, THE APPLICABLE PROXY STATEMENT/PROSPECTUS INCLUDED WITHIN THE APPLICABLE REGISTRATION STATEMENT ON FORM S-4 AND ANY OTHER RELEVANT DOCUMENTS TO BE FILED WITH THE SEC IN CONNECTION WITH THE PROPOSED TRANSACTIONS OR INCORPORATED BY REFERENCE INTO THE APPLICABLE PROXY/STATEMENT PROSPECTUS, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT PROSPERITY, SOUTHWEST, AMERICAN AND THE APPLICABLE PROPOSED TRANSACTIONS. Investors and security holders may obtain free copies of these documents through the website maintained by the SEC at http://www.sec.gov. You will also be able to obtain these documents, free of charge, from Prosperity at http://www.prosperitybankusa.com. Copies of the Prosperity/American Proxy Statement/Prospectus (and the Prosperity/Southwest Proxy Statement/Prospectus, when it becomes available), can also be obtained, free of charge, by directing a request by telephone or mail to Prosperity Bancshares, Inc., Prosperity Bank Plaza, 4295 San Felipe, Houston, Texas 77027 Attn: Investor Relations, (281) 269-7199, or with respect to the Prosperity/American Proxy Statement/Prospectus, to American Bank Holding Corporation, 800 North Shoreline Boulevard, Corpus Christi, Texas 78401, Attn: Stephen Raffaele, (512) 306-5550 or, with respect to the Prosperity/Southwest Proxy Statement/Prospectus, Southwest Bancshares, Inc., 1900 NW Loop 410, San Antonio, Texas 78213, Attention: Investor Relations, (210) 807-5511, as applicable.

No Offer or Solicitation

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

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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 $2.6 million, net of tax, primarily comprised of loan discount accretion of $2.9 million for the three months ended September 30, 2025.

(3)

Includes purchase accounting adjustments of $4.3 million, net of tax, primarily comprised of loan discount accretion of $4.8 million for the three months ended September 30, 2024.

(4)

Includes purchase accounting adjustments of $2.8 million, net of tax, primarily comprised of loan discount accretion of $3.1 million for the three months ended June 30, 2025.

(5)

Includes purchase accounting adjustments of $8.5 million, net of tax, primarily comprised of loan discount accretion of $9.3 million for the nine months ended September 30, 2025.

(6)

Includes purchase accounting adjustments of $12.4 million, net of tax, primarily comprised of loan discount accretion of $13.9 million, merger related provision for credit losses of $9.1 million, merger related expenses of $4.4 million, FDIC special assessment of $3.6 million, and net gain on sale or write-up of securities of $11.2 million for the nine months ended September 30, 2024.

Bryan/College Station Area

Grapevine

Seven Points

Shadow Creek

North University

Bryan

Grapevine Main

Teague

Spring

Texas Tech Student Union

Bryan-29 th 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

23 rd Street

San Antonio

Muenster

Yoakum

Expressway

Schulenburg

Runaway Bay

The Woodlands

Yorktown

I-240

Seguin

Sanger

The Woodlands-College Park

Memorial

Smithville

Waxahachie

The Woodlands-I-45

West Texas Area

Thorndale

Weatherford

The Woodlands-Research Forest

Abilene

Other Central Oklahoma Area

Weimar

Antilley Road

Locations

East Texas Area

Other Houston Area

Barrow Street

Edmond

Dallas/Fort Worth Area

Athens

Locations

Cypress Street

Norman

Dallas

Blooming Grove

Angleton

Judge Ely

14th Street Plano

Canton

Beaumont

Mockingbird

Tulsa Area

Abrams Centre

Carthage

Cleveland

Tulsa

Addison

Corsicana

Dayton

Amarillo

Garnett

Allen

Crockett

Galveston

Hillside

Harvard

Balch Springs

Eustace

Groves

Soncy

Memorial

Camp Wisdom

Gilmer

Hempstead

Sheridan

Carrollton

Grapeland

Hitchcock

Lubbock

S. Harvard

Cedar Hill

Gun Barrel City

Liberty

4th Street

Utica Tower

Coppell

Jacksonville

Magnolia

66th Street

Yale

East Plano

Kerens

Magnolia Parkway

82nd Street

Frisco

Longview

Mont Belvieu

86th Street

Other Tulsa Area Locations

Frisco Warren

Mount Vernon

Nederland

110th Street

Owasso

Frisco-West

Palestine

Needville

Avenue Q

Garland

Rusk

Rosenberg

Milwaukee

Prosperity Bancshares, Inc. ®

Financial Highlights (Unaudited)

(In thousands)

Sep 30, 2025

Jun 30, 2025

Mar 31, 2025

Dec 31, 2024

Sep 30, 2024

Balance Sheet Data (at period end)

Loans held for sale

$

11,297

$

6,004

$

9,764

$

10,690

$

6,113

Loans held for investment

20,738,294

20,903,944

20,909,913

21,057,616

21,146,033

Loans held for investment - Warehouse Purchase

Program

1,278,178

1,287,440

1,057,893

1,080,903

1,228,706

Total loans

22,027,769

22,197,388

21,977,570

22,149,209

22,380,852

Investment securities (A)

10,232,462

10,608,104

10,792,731

11,094,424

11,300,756

Federal funds sold

210

197

221

292

208

Allowance for credit losses on loans

(339,626)

(346,084)

(349,101)

(351,805)

(354,397)

Cash and due from banks

1,766,115

1,304,993

1,694,637

1,972,175

2,209,863

Goodwill

3,503,127

3,503,127

3,503,127

3,503,129

3,504,388

Core deposit intangibles, net

55,194

58,796

62,406

66,047

70,178

Other real estate owned

13,750

7,874

8,012

5,701

5,757

Fixed assets, net

378,776

374,602

373,273

371,238

373,812

Other assets

692,692

708,355

701,799

756,328

623,903

Total assets

$

38,330,469

$

38,417,352

$

38,764,675

$

39,566,738

$

40,115,320

Noninterest-bearing deposits

$

9,522,028

$

9,426,657

$

9,675,915

$

9,798,438

$

9,811,361

Interest-bearing deposits

18,260,066

18,046,754

18,350,884

18,582,900

18,276,250

Total deposits

27,782,094

27,473,411

28,026,799

28,381,338

28,087,611

Other borrowings

2,400,000

2,900,000

2,700,000

3,200,000

3,900,000

Securities sold under repurchase agreements

185,797

183,572

216,086

221,913

228,896

Allowance for credit losses on off-balance sheet credit

exposures

37,646

37,646

37,646

37,646

37,646

Other liabilities

259,994

222,987

267,083

287,346

499,918

Total liabilities

30,665,531

30,817,616

31,247,614

32,128,243

32,754,071

Shareholders' equity (B)

7,664,938

7,599,736

7,517,061

7,438,495

7,361,249

Total liabilities and equity

$

38,330,469

$

38,417,352

$

38,764,675

$

39,566,738

$

40,115,320

(A)

Includes $(1,987), $(1,657), $(1,374), $(2,056) and $(1,070) in unrealized losses on available for sale securities for the quarterly periods ended September 30, 2025, June 30, 2025, March 31, 2025, December 31, 2024 and September 30, 2024 respectively.

(B)

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

Prosperity Bancshares, Inc. ®

Financial Highlights (Unaudited)

(In thousands)

Three Months Ended

Year-to-Date

Sep 30,

2025

Jun 30,

2025

Mar 31,

2025

Dec 31,

2024

Sep 30,

2024

Sep 30,

2025

Sep 30,

2024

Income Statement Data

Interest income:

Loans

$

329,445

$

325,490

$

319,023

$

333,055

$

337,451

$

973,958

$

980,107

Securities (C)

58,207

57,836

57,886

58,260

59,617

173,929

188,466

Federal funds sold and other earning assets

10,455

9,438

15,896

19,630

20,835

35,789

44,195

Total interest income

398,107

392,764

392,805

410,945

417,903

1,183,676

1,212,768

Interest expense:

Deposits

95,965

93,790

95,597

102,050

107,758

285,352

306,574

Other borrowings

27,613

30,101

30,492

39,620

46,792

88,206

142,020

Securities sold under repurchase agreements

1,094

1,151

1,334

1,501

1,662

3,579

5,453

Total interest expense

124,672

125,042

127,423

143,171

156,212

377,137

454,047

Net interest income

273,435

267,722

265,382

267,774

261,691

806,539

758,721

Provision for credit losses

—

—

—

—

—

—

9,066

Net interest income after provision for credit losses

273,435

267,722

265,382

267,774

261,691

806,539

749,655

Noninterest income:

Nonsufficient funds (NSF) fees

9,805

8,885

9,147

9,960

9,016

27,837

25,457

Credit card, debit card and ATM card income

9,446

9,761

8,739

9,443

9,620

27,946

27,865

Service charges on deposit accounts

7,317

7,645

7,408

6,992

6,664

22,370

19,506

Trust income

3,526

3,859

3,601

3,514

3,479

10,986

11,236

Mortgage income

931

965

1,009

779

962

2,905

2,317

Brokerage income

1,328

1,225

1,262

1,063

1,258

3,815

3,679

Bank owned life insurance income

2,111

1,985

2,115

2,020

2,028

6,211

5,960

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

3

1,414

(235)

584

3,178

1,182

2,240

Net gain on sale or write-up of securities

—

—

—

—

224

—

11,245

Other noninterest income

6,771

7,243

8,255

5,482

4,670

22,269

16,467

Total noninterest income

41,238

42,982

41,301

39,837

41,099

125,521

125,972

Noninterest expense:

Salaries and benefits

87,949

87,296

89,476

88,631

88,367

264,721

263,722

Net occupancy and equipment

9,395

9,168

9,146

8,957

9,291

27,709

26,829

Credit and debit card, data processing and

software amortization

12,515

12,056

11,422

12,342

11,985

35,993

34,958

Regulatory assessments and FDIC insurance

5,198

5,508

5,789

5,789

5,726

16,495

21,581

Core deposit intangibles amortization

3,602

3,610

3,641

4,131

4,146

10,853

11,539

Depreciation

4,966

4,779

4,774

4,791

4,741

14,519

14,263

Communications

3,480

3,507

3,473

3,450

3,360

10,460

10,247

Other real estate expense

314

204

140

255

12

658

268

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

real estate

(81)

(222)

(30)

(610)

(97)

(333)

(204)

Merger related expenses

62

—

—

—

63

62

4,444

Other noninterest expense

11,235

12,659

12,470

13,809

12,744

36,364

41,381

Total noninterest expense

138,635

138,565

140,301

141,545

140,338

417,501

429,028

Income before income taxes

176,038

172,139

166,382

166,066

162,452

514,559

446,599

Provision for income taxes

38,482

36,984

36,157

35,990

35,170

111,623

97,289

Net income available to common shareholders

$

137,556

$

135,155

$

130,225

$

130,076

$

127,282

$

402,936

$

349,310

(C)

Interest income on securities was reduced by net premium amortization of $2,877, $4,926, $5,027, $5,609 and $5,574 for the three months ended September 30, 2025, June 30, 2025, March 31, 2025, December 31, 2024 and September 30, 2024, respectively, and $12,830 and $17,227 for the nine months ended September 30, 2025 and 2024, respectively.

Prosperity Bancshares, Inc. ®

Financial Highlights (Unaudited)

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

Three Months Ended

Year-to-Date

Sep 30,

2025

Jun 30,

2025

Mar 31,

2025

Dec 31,

2024

Sep 30,

2024

Sep 30,

2025

Sep 30,

2024

Profitability

Net income (D) (E)

$

137,556

$

135,155

$

130,225

$

130,076

$

127,282

$

402,936

$

349,310

Basic earnings per share

$

1.45

$

1.42

$

1.37

$

1.37

$

1.34

$

4.23

$

3.68

Diluted earnings per share

$

1.45

$

1.42

$

1.37

$

1.37

$

1.34

$

4.23

$

3.68

Return on average assets (F) (J)

1.44

%

1.41

%

1.34

%

1.31

%

1.28

%

1.40

%

1.16

%

Return on average common equity (F) (J)

7.18

%

7.13

%

6.94

%

7.00

%

6.93

%

7.08

%

6.40

%

Return on average tangible common

equity (F) (G) (J)

13.43

%

13.44

%

13.23

%

13.50

%

13.50

%

13.36

%

12.43

%

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

3.24

%

3.18

%

3.14

%

3.05

%

2.95

%

3.19

%

2.86

%

Efficiency ratio (G) (I) (K)

44.06

%

44.80

%

45.71

%

46.10

%

46.87

%

44.85

%

49.25

%

Liquidity and Capital Ratios

Equity to assets

20.00

%

19.78

%

19.39

%

18.80

%

18.35

%

20.00

%

18.35

%

Common equity tier 1 capital

17.53

%

17.10

%

16.92

%

16.42

%

15.84

%

17.53

%

15.84

%

Tier 1 risk-based capital

17.53

%

17.10

%

16.92

%

16.42

%

15.84

%

17.53

%

15.84

%

Total risk-based capital

18.78

%

18.35

%

18.17

%

17.67

%

17.09

%

18.78

%

17.09

%

Tier 1 leverage capital

11.90

%

11.62

%

11.20

%

10.82

%

10.52

%

11.90

%

10.52

%

Period end tangible equity to period end

tangible assets (G)

11.81

%

11.58

%

11.23

%

10.75

%

10.36

%

11.81

%

10.36

%

Other Data

Weighted-average shares used in computing

earnings per common share

Basic

95,093

95,277

95,266

95,264

95,261

95,211

94,912

Diluted

95,093

95,277

95,266

95,264

95,261

95,211

94,912

Period end shares outstanding

94,993

95,277

95,258

95,275

95,261

94,993

95,261

Cash dividends paid per common share

$

0.58

$

0.58

$

0.58

$

0.58

$

0.56

$

1.74

$

1.68

Book value per common share

$

80.69

$

79.76

$

78.91

$

78.07

$

77.27

$

80.69

$

77.27

Tangible book value per common share (G)

$

43.23

$

42.38

$

41.48

$

40.61

$

39.75

$

43.23

$

39.75

Common Stock Market Price

High

$

75.44

$

74.56

$

82.75

$

86.76

$

74.87

$

82.75

$

74.87

Low

$

64.27

$

61.57

$

68.96

$

68.94

$

58.66

$

61.57

$

57.16

Period end closing price

$

66.35

$

70.24

$

71.37

$

75.35

$

72.07

$

66.35

$

72.07

Employees – FTE (excluding overtime)

3,937

3,921

3,898

3,916

3,896

3,937

3,896

Number of banking centers

283

283

284

283

287

283

287

(D)

Includes purchase accounting adjustments for the periods presented as follows:

Three Months Ended

Year-to-Date

Sep 30,

2025

Jun 30,

2025

Mar 31,

2025

Dec 31,

2024

Sep 30,

2024

Sep 30,

2025

Sep 30,

2024

Loan discount accretion

Non-PCD

$2,242

$2,486

$2,615

$2,761

$3,616

$7,343

$9,725

PCD

$613

$638

$677

$850

$1,212

$1,928

$4,154

Securities net accretion

$395

$409

$705

$528

$555

$1,509

$1,680

Time deposits amortization

$(1)

$(2)

$(9)

$(21)

$(40)

$(12)

$(133)

(E)

Using effective tax rate of 21.9%, 21.5%, 21.7%, 21.7% and 21.6% for the three months ended September 30, 2025, June 30, 2025, March 31, 2025, December 31, 2024 and September 30, 2024, respectively, and 21.7% and 21.8% for the nine months ended September 30, 2025 and 2024, respectively.

(F)

Interim periods annualized.

(G)

Refer to the "Notes to Selected Financial Data" at the end of this Earnings Release for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure.

(H)

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

(I)

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

(J)

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

(K)

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

Prosperity Bancshares, Inc. ®

Financial Highlights (Unaudited)

(Dollars in thousands)

YIELD ANALYSIS

Three Months Ended

Sep 30, 2025

Jun 30, 2025

Sep 30, 2024

Average

Balance

Interest

Earned/

Interest

Paid

Average

Yield/

Rate

(L)

Average

Balance

Interest

Earned/

Interest

Paid

Average

Yield/

Rate

(L)

Average

Balance

Interest

Earned/

Interest

Paid

Average

Yield/

Rate

(L)

Interest-earning assets:

Loans held for sale

$

8,371

$

140

6.64 %

$

9,813

$

166

6.79 %

$

7,913

$

137

6.89 %

Loans held for investment

20,851,896

309,949

5.90 %

20,907,400

306,671

5.88 %

21,107,139

316,939

5.97 %

Loans held for investment -

Warehouse Purchase Program

1,217,579

19,356

6.31 %

1,179,307

18,653

6.34 %

1,114,681

20,375

7.27 %

Total loans

22,077,846

329,445

5.92 %

22,096,520

325,490

5.91 %

22,229,733

337,451

6.04 %

Investment securities

10,530,807

58,207

2.19 %

(M)

10,867,856

57,836

2.13 %

(M)

11,612,193

59,617

2.04 %

(M)

Federal funds sold and other

earning assets

934,318

10,455

4.44 %

841,933

9,438

4.50 %

1,531,788

20,835

5.41 %

Total interest-earning assets

33,542,971

398,107

4.71 %

33,806,309

392,764

4.66 %

35,373,714

417,903

4.70 %

Allowance for credit losses on

loans

(343,872)

(348,310)

(358,237)

Noninterest-earning assets

4,930,764

4,933,215

4,873,725

Total assets

$

38,129,863

$

38,391,214

$

39,889,202

Interest-bearing liabilities:

Interest-bearing demand deposits

$

4,656,452

$

8,951

0.76 %

$

4,807,864

$

8,859

0.74 %

$

4,774,975

$

9,251

0.77 %

Savings and money market

deposits

8,977,585

46,934

2.07 %

8,944,897

45,796

2.05 %

8,908,315

49,824

2.23 %

Certificates and other time

deposits

4,422,996

40,080

3.60 %

4,366,510

39,135

3.59 %

4,564,232

48,683

4.24 %

Other borrowings

2,480,435

27,613

4.42 %

2,717,583

30,101

4.44 %

3,900,000

46,792

4.77 %

Securities sold under repurchase

agreements

187,462

1,094

2.32 %

194,577

1,151

2.37 %

242,813

1,662

2.72 %

Total interest-bearing liabilities

20,724,930

124,672

2.39 %

(N)

21,031,431

125,042

2.38 %

(N)

22,390,335

156,212

2.78 %

(N)

Noninterest-bearing liabilities:

Noninterest-bearing demand

deposits

9,451,153

9,508,845

9,680,785

Allowance for credit losses on off-

balance sheet credit exposures

37,646

37,646

37,646

Other liabilities

258,156

227,002

433,171

Total liabilities

30,471,885

30,804,924

32,541,937

Shareholders' equity

7,657,978

7,586,290

7,347,265

Total liabilities and

shareholders' equity

$

38,129,863

$

38,391,214

$

39,889,202

Net interest income and margin

$

273,435

3.23 %

$

267,722

3.18 %

$

261,691

2.94 %

Non-GAAP to GAAP

reconciliation:

Tax equivalent adjustment

807

574

808

Net interest income and margin

(tax equivalent basis)

$

274,242

3.24 %

$

268,296

3.18 %

$

262,499

2.95 %

(L)

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

(M)

Yield on securities was impacted by net premium amortization of $2,877, $4,926, and $5,574 for the three months ended September 30, 2025, June 30, 2025 and September 30, 2024, respectively.

(N)

Total cost of funds, including noninterest bearing deposits, was 1.64%, 1.64% and 1.94% for the three months ended September 30, 2025, June 30, 2025 and September 30, 2024, respectively.

Prosperity Bancshares, Inc. ®

Financial Highlights (Unaudited)

(Dollars in thousands)

YIELD ANALYSIS

Year-to-Date

Sep 30, 2025

Sep 30, 2024

Average

Balance

Interest

Earned/

Interest

Paid

Average

Yield/

Rate

(O)

Average

Balance

Interest

Earned/

Interest

Paid

Average

Yield/

Rate

(O)

Interest-earning assets:

Loans held for sale

$

8,588

$

433

6.74 %

$

7,278

$

378

6.94 %

Loans held for investment

20,905,781

921,688

5.89 %

21,312,440

928,973

5.82 %

Loans held for investment - Warehouse Purchase Program

1,092,241

51,837

6.35 %

918,172

50,756

7.38 %

Total loans

22,006,610

973,958

5.92 %

22,237,890

980,107

5.89 %

Investment securities

10,803,572

173,929

2.15 %

(P)

12,161,391

188,466

2.07 %

(P)

Federal funds sold and other earning assets

1,071,293

35,789

4.47 %

1,153,335

44,195

5.12 %

Total interest-earning assets

33,881,475

1,183,676

4.67 %

35,552,616

1,212,768

4.56 %

Allowance for credit losses on loans

(347,607)

(341,659)

Noninterest-earning assets

4,955,209

4,823,938

Total assets

$

38,489,077

$

40,034,895

Interest-bearing liabilities:

Interest-bearing demand deposits

$

4,894,289

$

26,829

0.73 %

$

4,947,514

$

26,807

0.72 %

Savings and money market deposits

8,976,481

138,375

2.06 %

9,060,992

147,228

2.17 %

Certificates and other time deposits

4,405,329

120,148

3.65 %

4,356,700

132,539

4.06 %

Other borrowings

2,657,143

88,206

4.44 %

3,960,821

142,020

4.79 %

Securities sold under repurchase agreements

199,883

3,579

2.39 %

265,878

5,453

2.74 %

Total interest-bearing liabilities

21,133,125

377,137

2.39 %

(Q)

22,591,905

454,047

2.68 %

(Q)

Noninterest-bearing liabilities:

Noninterest-bearing demand deposits

9,487,984

9,759,927

Allowance for credit losses on off-balance sheet credit

exposures

37,646

36,994

Other liabilities

246,408

372,060

Total liabilities

30,905,163

32,760,886

Shareholders' equity

7,583,914

7,274,009

Total liabilities and shareholders' equity

$

38,489,077

$

40,034,895

Net interest income and margin

$

806,539

3.18 %

$

758,721

2.85 %

Non-GAAP to GAAP reconciliation:

Tax equivalent adjustment

1,671

2,416

Net interest income and margin (tax equivalent basis)

$

808,210

3.19 %

$

761,137

2.86 %

(O)

Based on an actual 365-day or 366-day basis.

(P)

Yield on securities was impacted by net premium amortization of $12,830 and $17,227 for the nine months ended September 30, 2025 and 2024, respectively.

(Q)

Total cost of funds, including noninterest bearing deposits, was 1.65% and 1.87% for the nine months ended September 30, 2025 and 2024, respectively.

Prosperity Bancshares, Inc. ®

Financial Highlights (Unaudited)

(Dollars in thousands)

Three Months Ended

Sep 30, 2025

Jun 30, 2025

Mar 31, 2025

Dec 31, 2024

Sep 30, 2024

YIELD TREND (R)

Interest-Earning Assets:

Loans held for sale

6.64

%

6.79

%

6.80

%

6.68

%

6.89

%

Loans held for investment

5.90

%

5.88

%

5.90

%

5.93

%

5.97

%

Loans held for investment - Warehouse Purchase

Program

6.31

%

6.34

%

6.40

%

6.66

%

7.27

%

Total loans

5.92

%

5.91

%

5.92

%

5.97

%

6.04

%

Investment securities (S)

2.19

%

2.13

%

2.13

%

2.06

%

2.04

%

Federal funds sold and other earning assets

4.44

%

4.50

%

4.47

%

4.80

%

5.41

%

Total interest-earning assets

4.71

%

4.66

%

4.64

%

4.66

%

4.70

%

Interest-Bearing Liabilities:

Interest-bearing demand deposits

0.76

%

0.74

%

0.70

%

0.70

%

0.77

%

Savings and money market deposits

2.07

%

2.05

%

2.06

%

2.10

%

2.23

%

Certificates and other time deposits

3.60

%

3.59

%

3.75

%

4.06

%

4.24

%

Other borrowings

4.42

%

4.44

%

4.45

%

4.73

%

4.77

%

Securities sold under repurchase agreements

2.32

%

2.37

%

2.48

%

2.58

%

2.72

%

Total interest-bearing liabilities

2.39

%

2.38

%

2.39

%

2.60

%

2.78

%

Net Interest Margin

3.23

%

3.18

%

3.14

%

3.04

%

2.94

%

Net Interest Margin (tax equivalent)

3.24

%

3.18

%

3.14

%

3.05

%

2.95

%

(R)

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

(S)

Yield on securities was impacted by net premium amortization of $2,877, $4,926, $5,027, $5,609 and $5,574 for the three months ended September 30, 2025, June 30, 2025, March 31, 2025, December 31, 2024 and September 30, 2024, respectively.

Prosperity Bancshares, Inc. ®

Financial Highlights (Unaudited)

(Dollars in thousands)

Three Months Ended

Sep 30, 2025

Jun 30, 2025

Mar 31, 2025

Dec 31, 2024

Sep 30, 2024

Balance Sheet Averages

Loans held for sale

$

8,371

$

9,813

$

7,570

$

8,571

$

7,913

Loans held for investment

20,851,896

20,907,400

20,959,226

21,038,694

21,107,139

Loans held for investment - Warehouse Purchase

Program

1,217,579

1,179,307

876,086

1,137,113

1,114,681

Total loans

22,077,846

22,096,520

21,842,882

22,184,378

22,229,733

Investment securities

10,530,807

10,867,856

11,017,400

11,265,535

11,612,193

Federal funds sold and other earning assets

934,318

841,933

1,443,220

1,628,050

1,531,788

Total interest-earning assets

33,542,971

33,806,309

34,303,502

35,077,963

35,373,714

Allowance for credit losses on loans

(343,872)

(348,310)

(350,715)

(353,560)

(358,237)

Cash and due from banks

291,809

294,379

326,066

317,420

304,911

Goodwill

3,503,127

3,503,127

3,503,128

3,505,030

3,504,300

Core deposit intangibles, net

56,956

60,739

64,293

68,167

72,330

Other real estate

11,533

8,749

7,105

6,778

5,339

Fixed assets, net

377,680

374,486

374,448

373,561

375,626

Other assets

689,659

691,735

729,251

632,040

611,219

Total assets

$

38,129,863

$

38,391,214

$

38,957,078

$

39,627,399

$

39,889,202

Noninterest-bearing deposits

$

9,451,153

$

9,508,845

$

9,504,540

$

9,829,912

$

9,680,785

Interest-bearing demand deposits

4,656,452

4,807,864

5,224,796

4,845,174

4,774,975

Savings and money market deposits

8,977,585

8,944,897

9,007,286

8,915,410

8,908,315

Certificates and other time deposits

4,422,996

4,366,510

4,426,521

4,552,445

4,564,232

Total deposits

27,508,186

27,628,116

28,163,143

28,142,941

27,928,307

Other borrowings

2,480,435

2,717,583

2,776,667

3,332,609

3,900,000

Securities sold under repurchase agreements

187,462

194,577

217,945

231,240

242,813

Allowance for credit losses on off-balance sheet

credit exposures

37,646

37,646

37,646

37,646

37,646

Other liabilities

258,156

227,002

255,876

454,298

433,171

Shareholders' equity

7,657,978

7,586,290

7,505,801

7,428,665

7,347,265

Total liabilities and equity

$

38,129,863

$

38,391,214

$

38,957,078

$

39,627,399

$

39,889,202

Prosperity Bancshares, Inc. ®

Financial Highlights (Unaudited)

(Dollars in thousands)

Sep 30, 2025

Jun 30, 2025

Mar 31, 2025

Dec 31, 2024

Sep 30, 2024

Period End Balances

Loan Portfolio

Commercial and industrial

$

1,879,282

8.5

%

$

1,897,117

8.6

%

$

1,915,124

8.7

%

$

1,962,111

8.8

%

$

1,970,844

8.8

%

Warehouse purchase

program

1,278,178

5.8

%

1,287,440

5.8

%

1,057,893

4.8

%

1,080,903

4.9

%

1,228,706

5.5

%

Construction, land

development and other

land loans

2,865,279

13.0

%

2,873,238

12.9

%

2,845,082

13.0

%

2,859,281

12.9

%

2,814,521

12.6

%

1-4 family residential

7,461,900

33.9

%

7,530,816

33.9

%

7,576,350

34.5

%

7,581,450

34.2

%

7,557,858

33.8

%

Home equity

848,740

3.9

%

869,370

3.9

%

896,529

4.1

%

906,139

4.1

%

919,676

4.1

%

Commercial real estate

(includes multi-family

residential)

5,796,937

26.3

%

5,827,645

26.3

%

5,783,410

26.3

%

5,800,985

26.2

%

5,869,687

26.2

%

Agriculture (includes

farmland)

1,019,589

4.6

%

1,029,250

4.6

%

1,013,960

4.6

%

1,033,546

4.7

%

1,033,224

4.6

%

Consumer and other

366,027

1.7

%

368,747

1.7

%

378,821

1.7

%

378,817

1.7

%

413,548

1.8

%

Energy

511,837

2.3

%

513,765

2.3

%

510,401

2.3

%

545,977

2.5

%

572,788

2.6

%

Total loans

$

22,027,769

$

22,197,388

$

21,977,570

$

22,149,209

$

22,380,852

Deposit Types

Noninterest-bearing DDA

$

9,522,028

34.3

%

$

9,426,657

34.3

%

$

9,675,915

34.5

%

$

9,798,438

34.5

%

$

9,811,361

34.9

%

Interest-bearing DDA

4,766,146

17.2

%

4,708,251

17.1

%

4,931,769

17.6

%

5,182,035

18.3

%

4,800,758

17.1

%

Money market

6,402,591

23.0

%

6,302,770

23.0

%

6,339,509

22.6

%

6,229,022

21.9

%

6,166,792

22.0

%

Savings

2,616,196

9.4

%

2,667,859

9.7

%

2,703,736

9.7

%

2,685,496

9.5

%

2,707,982

9.6

%

Certificates and other time

deposits

4,475,133

16.1

%

4,367,874

15.9

%

4,375,870

15.6

%

4,486,347

15.8

%

4,600,718

16.4

%

Total deposits

$

27,782,094

$

27,473,411

$

28,026,799

$

28,381,338

$

28,087,611

Loan to Deposit Ratio

79.3

%

80.8

%

78.4

%

78.0

%

79.7

%

Prosperity Bancshares, Inc. ®

Financial Highlights (Unaudited)

(Dollars in thousands)

Construction Loans

Sep 30, 2025

Jun 30, 2025

Mar 31, 2025

Dec 31, 2024

Sep 30, 2024

Single family residential construction

$

665,194

23.2

%

$

696,569

24.2

%

$

727,417

25.6

%

$

778,067

27.2

%

$

836,571

29.7

%

Land development

248,616

8.7

%

227,254

7.9

%

225,784

7.9

%

260,158

9.1

%

256,571

9.1

%

Raw land

230,021

8.0

%

248,380

8.7

%

261,918

9.2

%

278,892

9.7

%

263,411

9.4

%

Residential lots

203,396

7.1

%

217,835

7.6

%

219,115

7.7

%

209,850

7.3

%

217,920

7.7

%

Commercial lots

59,853

2.1

%

55,176

1.9

%

56,343

2.0

%

59,044

2.1

%

58,472

2.1

%

Commercial construction and other

1,459,255

50.9

%

1,428,985

49.7

%

1,355,587

47.6

%

1,274,619

44.6

%

1,183,127

42.0

%

Net unaccreted discount

(1,056)

(961)

(1,082)

(1,349)

(1,551)

Total construction loans

$

2,865,279

$

2,873,238

$

2,845,082

$

2,859,281

$

2,814,521

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

Houston

Dallas

Austin

OK City

Tulsa

Other (T)

Total

Collateral Type

Shopping center/retail

$

328,842

$

230,333

$

122,499

$

15,103

$

12,002

$

319,570

$

1,028,349

Commercial and industrial

buildings

179,377

103,862

24,433

32,680

12,026

256,858

609,236

Office buildings

99,991

280,699

68,563

43,802

4,224

94,839

592,118

Medical buildings

105,993

16,818

1,642

41,745

26,479

64,595

257,272

Apartment buildings

107,677

127,757

64,215

11,115

13,508

209,436

533,708

Hotel

106,613

116,016

30,162

13,349

—

176,330

442,470

Other

170,647

59,768

19,364

5,654

6,868

93,779

356,080

Total

$

1,099,140

$

935,253

$

330,878

$

163,448

$

75,107

$

1,215,407

$

3,819,233

(U)

Acquired Loans

Non-PCD Loans

PCD Loans

Total Acquired Loans

Balance at

Acquisition

Date

Balance at

Jun 30,

2025

Balance at

Sep 30,

2025

Balance at

Acquisition

Date

Balance at

Jun 30,

2025

Balance at

Sep 30,

2025

Balance at

Acquisition

Date

Balance at

Jun 30,

2025

Balance at

Sep 30,

2025

Loan marks:

Acquired banks (V)

$

388,625

$

22,766

$

20,406

$

332,400

$

6,075

$

5,472

$

721,025

$

28,841

$

25,878

Acquired portfolio

loan balances:

Acquired banks (V)

14,323,981

1,786,602

1,609,115

1,376,673

387,143

350,644

15,700,654

(W)

2,173,745

1,959,759

Acquired portfolio

loan balances less

loan marks

$

13,935,356

$

1,763,836

$

1,588,709

$

1,044,273

$

381,068

$

345,172

$

14,979,629

$

2,144,904

$

1,933,881

(T)

Includes other MSA and non-MSA regions.

(U)

Represents a portion of total commercial real estate loans of $5.797 billion as of September 30, 2025.

(V)

Includes Bank Arlington, American State Bank, Community National Bank, First Federal Bank Texas, Coppermark Bank, First Victoria National Bank, The F&M Bank & Trust Company, Tradition Bank, LegacyTexas Bank, FirstCapital Bank and Lone Star Bank.

(W)

Actual principal balances acquired.

Prosperity Bancshares, Inc. ®

Financial Highlights (Unaudited)

(Dollars in thousands)

Three Months Ended

Year-to-Date

Sep 30,

2025

Jun 30,

2025

Mar 31,

2025

Dec 31,

2024

Sep 30,

2024

Sep 30,

2025

Sep 30,

2024

Asset Quality

Nonaccrual loans

$

105,529

$

102,031

$

73,287

$

73,647

$

83,969

$

105,529

$

83,969

Accruing loans 90 or more days past due

268

576

91

2,189

20

268

20

Total nonperforming loans

105,797

102,607

73,378

75,836

83,989

105,797

83,989

Repossessed assets

16

6

29

4

177

16

177

Other real estate

13,750

7,874

8,012

5,701

5,757

13,750

5,757

Total nonperforming assets

$

119,563

$

110,487

$

81,419

$

81,541

$

89,923

$

119,563

$

89,923

Nonperforming assets:

Commercial and industrial (includes energy)

$

27,880

$

27,680

$

8,966

$

10,080

$

13,642

$

27,880

$

13,642

Construction, land development and other land

loans

583

1,859

1,952

4,481

4,053

583

4,053

1-4 family residential (includes home equity)

57,241

50,501

42,481

44,824

36,660

57,241

36,660

Commercial real estate (includes multi-family

residential)

11,471

12,865

12,257

18,861

32,803

11,471

32,803

Agriculture (includes farmland)

17,080

17,547

15,725

3,208

2,686

17,080

2,686

Consumer and other

5,308

35

38

87

79

5,308

79

Total

$

119,563

$

110,487

$

81,419

$

81,541

$

89,923

$

119,563

$

89,923

Number of loans/properties

424

392

363

368

346

424

346

Allowance for credit losses on loans

$

339,626

$

346,084

$

349,101

$

351,805

$

354,397

$

339,626

$

354,397

Net charge-offs (recoveries):

Commercial and industrial (includes energy)

$

3,341

$

1,044

$

330

$

405

$

3,309

$

4,715

$

6,369

Construction, land development and other land

loans

34

(3)

(156)

294

378

(125)

485

1-4 family residential (includes home equity)

853

342

1,051

180

409

2,246

1,291

Commercial real estate (includes multi-family

residential)

1,015

55

178

362

258

1,248

(140)

Agriculture (includes farmland)

(40)

(14)

—

5

(116)

(54)

121

Consumer and other

1,255

1,593

1,301

1,346

1,217

4,149

3,840

Total

$

6,458

$

3,017

$

2,704

$

2,592

$

5,455

$

12,179

$

11,966

Asset Quality Ratios

Nonperforming assets to average interest-earning

assets

0.36

%

0.33

%

0.24

%

0.23

%

0.25

%

0.35

%

0.25

%

Nonperforming assets to loans and other real

estate

0.54

%

0.50

%

0.37

%

0.37

%

0.40

%

0.54

%

0.40

%

Net charge-offs to average loans (annualized)

0.12

%

0.05

%

0.05

%

0.05

%

0.10

%

0.07

%

0.07

%

Allowance for credit losses on loans to total loans

1.54

%

1.56

%

1.59

%

1.59

%

1.58

%

1.54

%

1.58

%

Allowance for credit losses on loans to total

loans, excluding Warehouse Purchase Program

loans (G)

1.64

%

1.66

%

1.67

%

1.67

%

1.68

%

1.64

%

1.68

%

Prosperity Bancshares, Inc. ®

Notes to Selected Financial Data (Unaudited)

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

NOTES TO SELECTED FINANCIAL DATA

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

Three Months Ended

Year-to-Date

Sep 30,

2025

Jun 30,

2025

Mar 31,

2025

Dec 31,

2024

Sep 30,

2024

Sep 30,

2025

Sep 30,

2024

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

Diluted earnings per share (unadjusted)

$

1.45

$

1.42

$

1.37

$

1.37

$

1.34

$

4.23

$

3.68

Net income

$

137,556

$

135,155

$

130,225

$

130,076

$

127,282

$

402,936

$

349,310

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

—

—

—

—

—

—

7,162

Merger related expenses, net of tax (X)

49

—

—

—

50

49

3,511

FDIC special assessment, net of tax (X)

—

—

—

—

—

—

2,807

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

—

—

—

—

(177)

—

(8,884)

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

$

137,605

$

135,155

$

130,225

$

130,076

$

127,155

$

402,985

$

353,906

Weighted average diluted shares outstanding

95,093

95,277

95,266

95,264

95,261

95,211

94,912

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

$

—

$

—

$

—

$

—

$

—

$

—

$

0.08

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

$

—

$

—

$

—

$

—

$

—

$

—

$

0.04

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

$

—

$

—

$

—

$

—

$

—

$

—

$

0.03

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

$

—

$

—

$

—

$

—

$

—

$

—

$

(0.09)

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

$

1.45

$

1.42

$

1.37

$

1.37

$

1.34

$

4.23

$

3.74

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

Return on average assets (unadjusted)

1.44

%

1.41

%

1.34

%

1.31

%

1.28

%

1.40

%

1.16

%

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

$

137,605

$

135,155

$

130,225

$

130,076

$

127,155

$

402,985

$

353,906

Average total assets

$

38,129,863

$

38,391,214

$

38,957,078

$

39,627,399

$

39,889,202

$

38,489,077

$

40,034,895

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

1.44

%

1.41

%

1.34

%

1.31

%

1.28

%

1.40

%

1.18

%

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

Three Months Ended

Year-to-Date

Sep 30,

2025

Jun 30,

2025

Mar 31,

2025

Dec 31,

2024

Sep 30,

2024

Sep 30,

2025

Sep 30,

2024

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

Return on average common equity (unadjusted)

7.18

%

7.13

%

6.94

%

7.00

%

6.93

%

7.08

%

6.40

%

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

$

137,605

$

135,155

$

130,225

$

130,076

$

127,155

$

402,985

$

353,906

Average shareholders' equity

$

7,657,978

$

7,586,290

$

7,505,801

$

7,428,665

$

7,347,265

$

7,583,914

$

7,274,009

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

7.19

%

7.13

%

6.94

%

7.00

%

6.92

%

7.08

%

6.49

%

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

Net income

$

137,556

$

135,155

$

130,225

$

130,076

$

127,282

$

402,936

$

349,310

Average shareholders' equity

$

7,657,978

$

7,586,290

$

7,505,801

$

7,428,665

$

7,347,265

$

7,583,914

$

7,274,009

Less: Average goodwill and other intangible assets

(3,560,083)

(3,563,866)

(3,567,421)

(3,573,197)

(3,576,630)

(3,563,763)

(3,526,501)

Average tangible shareholders' equity

$

4,097,895

$

4,022,424

$

3,938,380

$

3,855,468

$

3,770,635

$

4,020,151

$

3,747,508

Return on average tangible common equity (F)

13.43

%

13.44

%

13.23

%

13.50

%

13.50

%

13.36

%

12.43

%

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

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

$

137,605

$

135,155

$

130,225

$

130,076

$

127,155

$

402,985

$

353,906

Average shareholders' equity

$

7,657,978

$

7,586,290

$

7,505,801

$

7,428,665

$

7,347,265

$

7,583,914

$

7,274,009

Less: Average goodwill and other intangible assets

(3,560,083)

(3,563,866)

(3,567,421)

(3,573,197)

(3,576,630)

(3,563,763)

(3,526,501)

Average tangible shareholders' equity

$

4,097,895

$

4,022,424

$

3,938,380

$

3,855,468

$

3,770,635

$

4,020,151

$

3,747,508

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

13.43

%

13.44

%

13.23

%

13.50

%

13.49

%

13.37

%

12.59

%

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

Shareholders' equity

$

7,664,938

$

7,599,736

$

7,517,061

$

7,438,495

$

7,361,249

$

7,664,938

$

7,361,249

Less: Goodwill and other intangible assets

(3,558,321)

(3,561,923)

(3,565,533)

(3,569,176)

(3,574,566)

(3,558,321)

(3,574,566)

Tangible shareholders' equity

$

4,106,617

$

4,037,813

$

3,951,528

$

3,869,319

$

3,786,683

$

4,106,617

$

3,786,683

Period end shares outstanding

94,993

95,277

95,258

95,275

95,261

94,993

95,261

Tangible book value per share

$

43.23

$

42.38

$

41.48

$

40.61

$

39.75

$

43.23

$

39.75

Three Months Ended

Year-to-Date

Sep 30,

2025

Jun 30,

2025

Mar 31,

2025

Dec 31,

2024

Sep 30,

2024

Sep 30,

2025

Sep 30,

2024

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

Tangible shareholders' equity

$

4,106,617

$

4,037,813

$

3,951,528

$

3,869,319

$

3,786,683

$

4,106,617

$

3,786,683

Total assets

$

38,330,469

$

38,417,352

$

38,764,675

$

39,566,738

$

40,115,320

$

38,330,469

$

40,115,320

Less: Goodwill and other intangible assets

(3,558,321)

(3,561,923)

(3,565,533)

(3,569,176)

(3,574,566)

(3,558,321)

(3,574,566)

Tangible assets

$

34,772,148

$

34,855,429

$

35,199,142

$

35,997,562

$

36,540,754

$

34,772,148

$

36,540,754

Period end tangible equity to period end tangible assets ratio

11.81

%

11.58

%

11.23

%

10.75

%

10.36

%

11.81

%

10.36

%

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

Allowance for credit losses on loans

$

339,626

$

346,084

$

349,101

$

351,805

$

354,397

$

339,626

$

354,397

Total loans

$

22,027,769

$

22,197,388

$

21,977,570

$

22,149,209

$

22,380,852

$

22,027,769

$

22,380,852

Less: Warehouse Purchase Program loans

(1,278,178)

(1,287,440)

(1,057,893)

(1,080,903)

(1,228,706)

(1,278,178)

(1,228,706)

Total loans less Warehouse Purchase Program

$

20,749,591

$

20,909,948

$

20,919,677

$

21,068,306

$

21,152,146

$

20,749,591

$

21,152,146

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

1.64

%

1.66

%

1.67

%

1.67

%

1.68

%

1.64

%

1.68

%

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

Noninterest expense

$

138,635

$

138,565

$

140,301

$

141,545

$

140,338

$

417,501

$

429,028

Net interest income

$

273,435

$

267,722

$

265,382

$

267,774

$

261,691

$

806,539

$

758,721

Noninterest income

41,238

42,982

41,301

39,837

41,099

125,521

125,972

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

3

1,414

(235)

584

3,178

1,182

2,240

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

—

—

—

—

224

—

11,245

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

41,235

41,568

41,536

39,253

37,697

124,339

112,487

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

$

314,670

$

309,290

$

306,918

$

307,027

$

299,388

$

930,878

$

871,208

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

44.06

%

44.80

%

45.71

%

46.10

%

46.87

%

44.85

%

49.25

%

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

Noninterest expense

$

138,635

$

138,565

$

140,301

$

141,545

$

140,338

$

417,501

$

429,028

Less: merger related expenses

62

—

—

—

63

62

4,444

Less: FDIC special assessment

—

—

—

—

—

—

3,554

Noninterest expense excluding merger related expenses and FDIC special assessment

$

138,573

$

138,565

$

140,301

$

141,545

$

140,275

$

417,439

$

421,030

Net interest income

$

273,435

$

267,722

$

265,382

$

267,774

$

261,691

$

806,539

$

758,721

Noninterest income

41,238

42,982

41,301

39,837

41,099

125,521

125,972

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

3

1,414

(235)

584

3,178

1,182

2,240

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

—

—

—

—

224

—

11,245

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

41,235

41,568

41,536

39,253

37,697

124,339

112,487

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

$

314,670

$

309,290

$

306,918

$

307,027

$

299,388

$

930,878

$

871,208

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

44.04

%

44.80

%

45.71

%

46.10

%

46.85

%

44.84

%

48.33

%

SOURCE Prosperity Bancshares, Inc.