PROSPERITY BANCSHARES, INC.® REPORTS FOURTH QUARTER 2022 EARNINGS

Rhea-AI Summary

Prosperity Bancshares reported a Q4 2022 net income of $137.9 million or $1.51 per share, an increase of 8.7% year-over-year. Total loans rose by $518.5 million (3.0%) in Q4 and $1.422 billion (8.5%) throughout 2022. The net interest margin improved to 3.05% from 2.97% the previous year. Nonperforming assets stayed low at 0.08%. The company announced a stock repurchase program for up to 5% of its common stock and is pursuing acquisitions of First Bancshares and Lone Star State Bancshares, expected to close in mid-2023. The 2023 dividend of $0.55 per share will be paid on April 3, 2023.

Positive

• Q4 2022 net income increased by 8.7% to $137.9 million.
• Earnings per share rose 9.4% to $1.51 in Q4 2022.
• Loan growth of $518.5 million (3.0%) in Q4 2022.
• Proposed stock repurchase program covering up to 5% of outstanding stock.

Negative

• Deposits decreased by $2.238 billion (7.3%) year-over-year.
• Net interest margin fell from 3.14% in 2021 to 3.00% for 2022.

• Fourth quarter net income of $137.9 million and earnings per share (diluted) of $1.51
• Fourth quarter net income increased 8.7% compared to fourth quarter 2021
• Loans, excluding Warehouse Purchase Program and SBA Paycheck Protection Program loans, increased $518.5 million or 3.0% (11.8% annualized) during fourth quarter 2022
• Loans, excluding Warehouse Purchase Program and SBA Paycheck Protection Program loans, increased $1.422 billion or 8.5% during 2022
• Allowance for credit losses on loans to total loans, excluding Warehouse Purchase Program and SBA Paycheck Protection Program loans, of 1.56%⁽¹⁾
• Nonperforming assets remain low at 0.08% of fourth quarter average interest-earning assets
• Return (annualized) on fourth quarter average assets of 1.47%, average common equity of 8.26%, average tangible common equity of 16.26%⁽¹⁾, and efficiency ratio of 40.87%
• Pending acquisitions of First Bancshares of Texas, Inc., Midland, Texas, and Lone Star State Bancshares, Inc., Lubbock, Texas
• Approved 2023 Stock Repurchase Program covering up to 5% of outstanding common stock

HOUSTON, Jan. 25, 2023 /PRNewswire/ -- Prosperity Bancshares, Inc.^® (NYSE: PB), the parent company of Prosperity Bank^® (collectively, "Prosperity"), reported net income of $137.9 million for the quarter ended December 31, 2022 compared with $126.8 million for the same period in 2021. Net income per diluted common share was $1.51 for the quarter ended December 31, 2022 compared with $1.38 for the same period in 2021, an increase of 9.4%, and the annualized return on fourth quarter average assets was 1.47%. Additionally, loans, excluding Warehouse Purchase Program and SBA Paycheck Protection Program ("PPP") loans, increased $518.5 million or 3.0% (11.8% annualized) during the fourth quarter of 2022. Nonperforming assets remain low at 0.08% of fourth quarter average interest-earning assets.

"During the fourth quarter of 2022, Prosperity continued to see growth in loans, which we expect will continue in 2023. The growth comes from new loans as well as existing loans not paying off as fast as they did when rates were low and it was opportunistic for borrowers to repay or move the loans. Consumer spending remains strong, especially in the tourism, restaurant and hospitality sectors.  Real estate sales and pricing have been affected by the increase in rates, but we expect that because of inventory levels and population growth, the impact will be less in Texas and Oklahoma," said David Zalman, Prosperity's Senior Chairman and Chief Executive Officer.

"We believe that the economies in Texas and Oklahoma will outperform other states over the next several years as companies and individuals continue to move to the states because of lower tax rates and a business-friendly political environment. We expect that companies will need more infrastructure and buildings and consumers will need more housing and places to spend their money, and both will need banks to finance the growth," continued Zalman.

"While the net interest margin at some banks has improved immediately because of higher rates, we expect Prosperity's net interest margin to continue to increase over the next several years as our bond portfolio, which yielded 1.96% during the fourth quarter of 2022, reprices to higher yields assuming that rates normalize near the current rate," concluded Zalman.

Results of Operations for the Three Months Ended December 31, 2022

Net income was $137.9 million⁽²⁾ for the three months ended December 31, 2022 compared with $126.8 million⁽³⁾ for the same period in 2021, an increase of $11.1 million or 8.7%. The change was primarily due to an increase in loans and securities interest income, partially offset by a decrease in PPP fees and interest income of $8.5 million, a decrease in loan discount accretion of $4.5 million, and an increase in interest expense. Net income per diluted common share was $1.51 for the three months ended December 31, 2022 compared with $1.38 for the same period in 2021, an increase of 9.4%. On a linked quarter basis, net income was $137.9 million⁽²⁾ for the three months ended December 31, 2022 compared with $135.8 million⁽⁴⁾ for the three months ended September 30, 2022, an increase of $2.1 million or 1.5%. The change was primarily due to an increase in noninterest income and a decrease in noninterest expense, partially offset by a decrease in net interest income. Net income per diluted common share was $1.51 for the three months ended December 31, 2022 compared with $1.49 for the three months ended September 30, 2022, an increase of 1.3%. Annualized returns on average assets, average common equity and average tangible common equity for the three months ended December 31, 2022 were 1.47%, 8.26% and 16.26%⁽¹⁾, respectively. Prosperity's efficiency ratio (excluding net gains and losses on the sale or write down of assets and securities) was 40.87%⁽¹⁾ for the three months ended December 31, 2022.

Net interest income before provision for credit losses for the three months ended December 31, 2022 was $256.1 million compared with $244.8 million for the same period in 2021, an increase of $11.4 million or 4.6%. The change was primarily due to an increase in the average balances and average rates on loans held for investment and on investment securities, partially offset by a decrease in PPP fees and interest income of $8.5 million, a decrease in loan discount accretion of $4.5 million and an increase in the average rates on interest-bearing liabilities. On a linked quarter basis, net interest income before provision for credit losses was $256.1 million compared with $260.7 million for the three months ended September 30, 2022, a decrease of $4.5 million or 1.7%.

The net interest margin on a tax equivalent basis was 3.05% for the three months ended December 31, 2022 compared with 2.97% for the same period in 2021. The change was primarily due to an increase in the average balances and average rates on loans held for investment and on investment securities, partially offset by a decrease in PPP fees and interest income of $8.5 million, a decrease in loan discount accretion of $4.5 million and an increase in the average rates on interest-bearing liabilities. On a linked quarter basis, the net interest margin on a tax equivalent basis was 3.05% for the three months ended December 31, 2022 compared with 3.11% for the three months ended September 30, 2022. The linked quarter decrease was primarily due to an increase in the average rates on interest-bearing liabilities, partially offset by higher average balances and higher average rates on loans and average rates on investment securities.

Noninterest income was $37.7 million for the three months ended December 31, 2022 compared with $35.8 million for the same period in 2021, an increase of $2.0 million or 5.5%.  This change was primarily due to a higher net gain on sale or write-down of assets, an increase in trust income and an increase in other noninterest income.  On a linked quarter basis, noninterest income was $37.7 million compared with $34.7 million for the three months ended September 30, 2022, an increase of $3.0 million or 8.8%, primarily due to a higher net gain on the sale or write-down of assets and an increase in other noninterest income.

Noninterest expense was $119.2 million for the three months ended December 31, 2022 compared with $119.5 million for the same period in 2021, a decrease of $294 thousand.  On a linked quarter basis, noninterest expense decreased $3.0 million  or 2.4% to $119.2 million compared with $122.2 million for the three months ended September 30, 2022. This change was primarily due to a decrease in salaries and benefits, partially offset by an increase in other noninterest expense.

Results of Operations for the Year Ended December 31, 2022

Net income was $524.5 million⁽⁵⁾ for the year ended December 31, 2022 compared with $519.3 million⁽⁶⁾ for 2021, an increase of $5.2 million or 1.0%. Net income per diluted common share was $5.73 for the year ended December 31, 2022 compared with $5.60 for 2021, an increase of 2.3%. Annualized returns on average assets, average common equity and average tangible common equity for the year ended December 31, 2022 were 1.39%, 7.97% and 15.94%⁽¹⁾, respectively. Prosperity's efficiency ratio (excluding net gains and losses on the sale or write down of assets and securities) was 42.23%⁽¹⁾ for the year ended December 31, 2022.

Net interest income before provision for credit losses for the year ended December 31, 2022 was $1.005 billion compared with $993.3 million for the prior year, an increase of $11.9 million or 1.2%.  The change was primarily due to an increase in average balances and average rates on investment securities, partially offset by a decrease in PPP fees and interest income of $44.6 million, a decrease in loan discount accretion of $31.9 million and an increase in the average rates on interest-bearing liabilities.

The net interest margin on a tax equivalent basis for the year ended December 31, 2022 was 3.00% compared with 3.14% for 2021. The change was primarily due to an increase in the average balances on investment securities, partially offset by a decrease in PPP fees and interest income of $44.6 million, a decrease in loan discount accretion of $31.9 million and an increase in the average rates on interest-bearing liabilities.

Noninterest income was $145.1 million for the year ended December 31, 2022 compared with $140.0 million for 2021, an increase of $5.2 million or 3.7%, primarily due to an increase in NSF income, a net gain on the sale or write-down of assets, an increase in trust income and an increase in other noninterest income, partially offset by a decrease in mortgage income.

Noninterest expense was $484.2 million for the year ended December 31, 2022 compared with $473.6 million for 2021, an increase of $10.6 million or 2.2%. The change was primarily due to an increase in salaries and benefits, an increase in credit and debit card and data processing expense and the change in net loss (gain) on sale or write-down of other real estate.

Balance Sheet Information

At December 31, 2022, Prosperity had $37.690 billion in total assets, a decrease of $144.1 million or 0.4%, compared with $37.834 billion at December 31, 2021.

Loans at December 31, 2022 were $18.840 billion, an increase of $223.7 million or 1.2%, compared with $18.616 billion at December 31, 2021, primarily due to increases in 1-4 family residential and construction, land development and other land loans, partially offset by decreases in Warehouse Purchase Program, PPP and commercial real estate loans. Linked quarter loans increased $333.5 million or 1.8% (7.2% annualized) from $18.506 billion at September 30, 2022. Excluding Warehouse Purchase Program and PPP loans, loans at December 31, 2022 were $18.093 billion compared to $16.671 billion at December 31, 2021, an increase of $1.422 billion or 8.5%. Linked quarter loans, excluding Warehouse Purchase Program and PPP loans, increased $518.5 million or 3.0% (11.8% annualized) from $17.575 billion at September 30, 2022.

As part of its lending activities, Prosperity extends credit to oil and gas production and servicing companies. Oil and gas production loans are loans to companies directly involved in the exploration and/or production of oil and gas. Oil and gas servicing loans are loans to companies that provide services for oil and gas production and exploration. At December 31, 2022, oil and gas loans totaled $429.5 million (net of discount and excluding PPP loans totaling $3.4 million) or 2.3% of total loans, of which $209.0 million were production loans and $220.5 million were servicing loans, compared with total oil and gas loans of $491.3 million (net of discount and excluding PPP loans totaling $27.9 million) or 2.6% of total loans at December 31, 2021, of which $294.1 million were production loans and $197.2 million were servicing loans. In addition, as of December 31, 2022, Prosperity had total unfunded commitments to oil and gas companies of $453.4 million compared with total unfunded commitments to oil and gas companies of $419.0 million as of December 31, 2021. Unfunded commitments to producers include letters of credit issued in lieu of oil well plugging bonds.

Deposits at December 31, 2022 were $28.534 billion, a decrease of $2.238 billion or 7.3%, compared with $30.772 billion at December 31, 2021, primarily due to a decrease in public fund deposits. Linked quarter deposits decreased $766.6 million or 2.6% from $29.300 billion at September 30, 2022.

Asset Quality

Nonperforming assets totaled $27.5 million or 0.08% of quarterly average interest-earning assets at December 31, 2022 compared with $28.1 million or 0.09% of quarterly average interest-earning assets at December 31, 2021 and $19.9 million or 0.06% of quarterly average interest-earning assets at September 30, 2022.

The allowance for credit losses on loans and off-balance sheet credit exposures was $311.5 million at December 31, 2022 compared with $316.3 million at December 31, 2021 and $312.1 million at September 30, 2022. There was no provision for credit losses for the three months and years ended December 31, 2022  and 2021.

The allowance for credit losses on loans was $281.6 million or 1.49% of total loans at December 31, 2022 compared with $286.4 million or 1.54% of total loans at December 31, 2021 and $282.2 million or 1.52% of total loans at September 30, 2022. Excluding Warehouse Purchase Program and PPP loans, the allowance for credit losses on loans to total loans was 1.56%⁽¹⁾ at December 31, 2022 compared with 1.72%⁽¹⁾ at December 31, 2021 and 1.61%⁽¹⁾ at September 30, 2022.

Net charge-offs were $603 thousand for the three months ended December 31, 2022 compared with net charge-offs of $807 thousand for the three months ended December 31, 2021 and net charge-offs of $1.8 million for the three months ended September 30, 2022. During the fourth quarter of 2022, net charge-offs did not include any purchased credit deteriorated ("PCD") loans and $6.2 million of specific reserves on resolved PCD loans was released to the general reserve.

Net charge-offs were $4.8 million for the year ended December 31, 2022 compared with $29.7 million for the year ended December 31, 2021. Net charge-offs for the year ended December 31, 2022 did not include any PCD loans and $8.2 million of specific reserves on resolved PCD loans was released to the general reserve during the period.

Dividend

Prosperity Bancshares declared a first quarter 2023 cash dividend of $0.55 per share to be paid on April 3, 2023, to all shareholders of record as of March 15, 2023.

Stock Repurchase Program

On January 17, 2023, Prosperity Bancshares announced a stock repurchase program under which up to 5%, or approximately 4.6 million shares, of its outstanding common stock may be acquired over a one-year period expiring on January 17, 2024, at the discretion of management. Under its 2022 stock repurchase program, Prosperity Bancshares repurchased zero shares of its common stock during the three months ended December 31, 2022 and 981,884 shares of its common stock at an average weighted price of $66.90 per share during the year ended December 31, 2022.

Pending Acquisition of First Bancshares of Texas, Inc.

On October 11, 2022, Prosperity Bancshares and First Bancshares of Texas, Inc. ("First Bancshares") jointly announced the signing of a definitive merger agreement whereby First Bancshares, the parent company of FirstCapital Bank of Texas, N.A. ("FirstCapital Bank") will merge with and into Prosperity. FirstCapital Bank operates 16 full-service banking offices in 6 different markets in West, North and Central Texas areas, including its main office in Midland, and banking offices in Midland, Lubbock, Amarillo, Wichita Falls, Burkburnett, Byers, Henrietta, Dallas, Horseshoe Bay, Marble Falls and Fredericksburg, Texas.  As of September 30, 2022, First Bancshares, on a consolidated basis, reported total assets of $2.203 billion, total loans of $1.631 billion and total deposits of $1.842 billion.

Under the terms of the merger agreement, Prosperity will issue 3,583,370 shares of Prosperity common stock plus $93.4 million in cash for all outstanding shares of First Bancshares capital stock, subject to certain conditions and potential adjustments. Based on Prosperity's closing price of $69.27 on October 7, 2022, the total consideration was valued at approximately $341.6 million. The transaction is subject to customary closing conditions, including the receipt of regulatory approvals and approval of the shareholders of First Bancshares. The transaction is expected to close during the first half of 2023, although delays could occur.

Pending Acquisition of Lone Star State Bancshares, Inc.

On October 11, 2022, Prosperity Bancshares and Lone Star State Bancshares, Inc. ("Lone Star") jointly announced the signing of a definitive merger agreement whereby Lone Star, the parent company of Lone Star State Bank of West Texas ("Lone Star Bank") will merge with and into Prosperity. Lone Star Bank operates 5 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.  As of September 30, 2022, Lone Star, on a consolidated basis, reported total assets of $1.387 billion, total loans of $940.5 million and total deposits of $1.249 billion.

Under the terms of the merger agreement, Prosperity will issue 2,376,182 shares of Prosperity common stock plus $64.1 million in cash for all outstanding shares of Lone Star capital stock, subject to certain conditions and potential adjustments. Based on Prosperity's closing price of $69.27 on October 7, 2022, the total consideration was valued at approximately $228.7 million. The transaction is subject to customary closing conditions, including the receipt of regulatory approvals and approval of the shareholders of Lone Star. The transaction is expected to close during the first half of 2023, although delays could occur.

Conference Call

Prosperity's management team will host a conference call on Wednesday, January 25, 2023, at 11:30 a.m. Eastern Time (10:30 a.m. Central Time) to discuss Prosperity's fourth quarter 2022 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 6262776.

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 home page by selecting "Presentations, Webcasts & Calls" from the menu on the Investor Relations link and following the instructions.

Non-GAAP Financial Measures

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

Prosperity Bancshares, Inc. ®

As of December 31, 2022, Prosperity Bancshares, Inc.^® is a $37.690 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 272 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; 29 in the Central Texas area including Austin and San Antonio; 34 in the West Texas area including Lubbock, Midland-Odessa and Abilene; 16 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 loan 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 loan 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, including the proposed transactions with First Bancshares and Lone Star, 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, as well as expectations regarding the effects of the COVID-19 pandemic on Prosperity's operating income, financial condition and cash flows. 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. Many possible events or factors could adversely affect the future financial results and performance of Prosperity, First Bancshares, Lone Star 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: the occurrence of any event, change or other circumstance that could give rise to the right of a party to terminate the merger agreement with First Bancshares or Lone Star, as applicable, the outcome of any legal proceedings that may be instituted against Prosperity, First Bancshares or Lone Star, delays in completing either of the transactions, the failure to obtain necessary regulatory approvals (and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of each of the transactions) or First Bancshares shareholder approval or Lone Star shareholder approval or to satisfy any of the other conditions to the transactions on a timely basis or at all, the possibility that the anticipated benefits of the transactions are not realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of the two companies or as a result of the strength of the economy and competitive factors generally, or specifically in the West Texas area and the West, North and Central Texas area where First Bancshares and Lone Star, respectively, do a majority of their respective business and Prosperity has a significant presence, the possibility that the transactions may be more expensive to complete than anticipated, including as a result of unexpected factors or events, diversion of management's attention from ongoing business operations and opportunities, potential adverse reactions or changes to business or employee relationships, including those resulting from the announcement or completion of the transactions, Prosperity's ability to complete the acquisition and integration of First Bancshares and of Lone Star successfully, and the dilution caused by Prosperity's issuance of additional shares of its common stock in connection with the transactions. 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, 2021, 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.

Additional Information about the First Bancshares Merger and Where to Find It

In connection with the proposed merger of First Bancshares into Prosperity, Prosperity has filed with the SEC a registration statement on Form S-4 to register the shares of Prosperity common stock to be issued to the shareholders of First Bancshares. The registration statement includes a preliminary proxy statement/prospectus. The definitive proxy statement/prospectus will be sent to the shareholders of First Bancshares seeking their approval of the proposed transaction.

WE URGE INVESTORS AND SECURITY HOLDERS TO READ THE REGISTRATION STATEMENT ON FORM S-4, THE PROXY STATEMENT/PROSPECTUS INCLUDED WITHIN THE REGISTRATION STATEMENT ON FORM S-4 AND ANY OTHER RELEVANT DOCUMENTS TO BE FILED WITH THE SECURITIES AND EXCHANGE COMMISSION IN CONNECTION WITH THE PROPOSED TRANSACTION BECAUSE THEY CONTAIN IMPORTANT INFORMATION ABOUT PROSPERITY, FIRST BANCSHARES AND THE PROPOSED TRANSACTION.

Investors and security holders may obtain free copies of these documents through the website maintained by the SEC at http://www.sec.gov. You will also be able to obtain these documents, when they are filed, free of charge, from Prosperity at http://www.prosperitybankusa.com. Copies of the proxy statement/prospectus can also be obtained, when it becomes available, free of charge, by directing a request by telephone or mail to Prosperity Bancshares, Inc., Prosperity Bank Plaza, 4295 San Felipe, Houston, Texas 77027 Attn: Investor Relations, (281) 269-7199 or to First Bancshares of Texas, Inc., 310 West Wall Street, Suite 1200, Midland, Texas 79701, Attention: Ken Burgess, (844) 322-8392.

Additional Information about the Lone Star Merger and Where to Find It

In connection with the proposed merger of Lone Star into Prosperity, Prosperity has filed with the SEC a registration statement on Form S-4 to register the shares of Prosperity common stock to be issued to the shareholders of Lone Star. The registration statement includes a preliminary proxy statement/prospectus. The definitive proxy statement/prospectus will be sent to the shareholders of Lone Star seeking their approval of the proposed transaction.

WE URGE INVESTORS AND SECURITY HOLDERS TO READ THE REGISTRATION STATEMENT ON FORM S-4, THE PROXY STATEMENT/PROSPECTUS INCLUDED WITHIN THE REGISTRATION STATEMENT ON FORM S-4 AND ANY OTHER RELEVANT DOCUMENTS TO BE FILED WITH THE SECURITIES AND EXCHANGE COMMISSION IN CONNECTION WITH THE PROPOSED TRANSACTION BECAUSE THEY CONTAIN IMPORTANT INFORMATION ABOUT PROSPERITY, LONE STAR AND THE PROPOSED TRANSACTION.

Investors and security holders may obtain free copies of these documents through the website maintained by the SEC at http://www.sec.gov. You will also be able to obtain these documents, when they are filed, free of charge, from Prosperity at http://www.prosperitybankusa.com. Copies of the proxy statement/prospectus can also be obtained, when it becomes available, free of charge, by directing a request by telephone or mail to Prosperity Bancshares, Inc., Prosperity Bank Plaza, 4295 San Felipe, Houston, Texas 77027 Attn: Investor Relations, (281) 269-7199 or to Lone Star State Bancshares, Inc., 6220 Milwaukee Avenue, Lubbock, Texas 79424, Attention: Alan Lackey, (806) 771-7717.

Participants in the Solicitation

Prosperity, First Bancshares and their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from the shareholders of First Bancshares in connection with the proposed transaction. Certain information regarding the interests of these participants and a description of their direct and indirect interests, by security holdings or otherwise, is included in the registration statement and proxy statement/prospectus regarding the proposed transaction and other relevant materials to be filed with the SEC when they become available. 

Prosperity, Lone Star and their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from the shareholders of Lone Star in connection with the proposed transaction. Certain information regarding the interests of these participants and a description of their direct and indirect interests, by security holdings or otherwise, is included in the registration statement and proxy statement/prospectus regarding the proposed transaction and other relevant materials to be filed with the SEC when they become available.  

Additional information about Prosperity and its directors and executive officers may be found in the definitive proxy statement of Prosperity relating to its 2022 Annual Meeting of Shareholders filed with the SEC on March 14, 2022, and other documents filed by Prosperity with the SEC. These documents can be obtained free of charge from the sources described above.

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 of 1933, as amended, 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 $758 thousand, net of tax, primarily comprised of loan discount accretion of $913 thousand for the three months ended December 31, 2022.
(3)	Includes purchase accounting adjustments of $4.2 million, net of tax, primarily comprised of loan discount accretion of $5.4 million for the three months ended December 31, 2021.
(4)	Includes purchase accounting adjustments of $997 thousand, net of tax, primarily comprised of loan discount accretion of $1.2 million for the three months ended September 30, 2022.
(5)	Includes purchase accounting adjustments of $6.0 million, net of tax, primarily comprised of loan discount accretion of $7.4 million for the year ended December 31, 2022.
(6)	Includes purchase accounting adjustments of $31.5 million, net of tax, primarily comprised of loan discount accretion of $39.3 million for the year ended December 31, 2021.

 

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

 - - -

 

 

Prosperity Bancshares, Inc.® Financial Highlights (Unaudited) (In thousands)
		Dec 31, 2022				Sep 30, 2022				Jun 30, 2022				Mar 31, 2022				Dec 31, 2021
Balance Sheet Data (at period end)
Loans held for sale		$	554			$	2,871			$	3,350			$	2,810			$	7,274
Loans held for investment			18,098,653				17,580,653				17,067,871				16,720,173				16,833,171
Loans held for investment - Warehouse Purchase Program			740,620				922,764				1,137,623				1,344,541				1,775,699
Total loans			18,839,827				18,506,288				18,208,844				18,067,524				18,616,144
Investment securities(A)			14,476,005				14,806,487				14,912,313				14,798,127				12,818,901
Federal funds sold			301				244				201				274				241
Allowance for credit losses on loans			(281,576)				(282,179)				(283,959)				(285,163)				(286,380)
Cash and due from banks			423,832				602,152				393,716				1,560,321				2,547,739
Goodwill			3,231,636				3,231,636				3,231,636				3,231,636				3,231,636
Core deposit intangibles, net			51,348				53,906				56,483				59,064				61,684
Other real estate owned			1,963				1,758				1,555				1,705				622
Fixed assets, net			339,453				337,099				335,939				336,075				319,799
Other assets			607,040				586,111				530,528				501,623				523,584
Total assets		$	37,689,829			$	37,843,502			$	37,387,256			$	38,271,186			$	37,833,970
Noninterest-bearing deposits		$	10,915,448			$	11,154,143			$	11,032,184			$	10,776,652			$	10,750,034
Interest-bearing deposits			17,618,083				18,145,952				18,833,434				20,291,658				20,021,728
Total deposits			28,533,531				29,300,095				29,865,618				31,068,310				30,771,762
Other borrowings			1,850,000				1,165,000				300,000				—				—
Securities sold under repurchase agreements			428,134				454,304				481,785				440,891				448,099
Allowance for credit losses on off-balance sheet credit exposures			29,947				29,947				29,947				29,947				29,947
Other liabilities			148,843				282,514				188,079				227,614				156,926
Total liabilities			30,990,455				31,231,860				30,865,429				31,766,762				31,406,734
Shareholders' equity(B)			6,699,374				6,611,642				6,521,827				6,504,424				6,427,236
Total liabilities and equity		$	37,689,829			$	37,843,502			$	37,387,256			$	38,271,186			$	37,833,970

(A)	Includes $(4,396), $(296), $1,517, $2,115 and $2,290 in unrealized (losses) gains on available for sale securities for the quarterly periods ended December 31, 2022, September 30, 2022, June 30, 2022, March 31, 2022 and December 31, 2021, respectively.
(B)	Includes $(3,473), $(234), $1,198 $1,671 and $1,809 in after-tax unrealized (losses) gains on available for sale securities for the quarterly periods ended December 31, 2022, September 30, 2022, June 30, 2022, March 31, 2022 and December 31, 2021, respectively.

 

Prosperity Bancshares, Inc.® Financial Highlights (Unaudited) (In thousands)
		Three Months Ended																				Year-to-Date
		Dec 31, 2022				Sep 30, 2022				Jun 30, 2022				Mar 31, 2022				Dec 31, 2021				Dec 31, 2022				Dec 31, 2021
Income Statement Data
Interest income:
Loans		$	235,126			$	210,268			$	192,770			$	193,025			$	206,209			$	831,189			$	869,908
Securities(C)			72,533				68,761				64,111				55,011				46,857				260,416				175,459
Federal funds sold and other earning assets			933				525				925				847				563				3,230				1,556
Total interest income			308,592				279,554				257,806				248,883				253,629				1,094,835				1,046,923
Interest expense:
Deposits			36,048				14,669				8,641				8,754				8,685				68,112				52,913
Other borrowings			14,682				3,719				450				—				—				18,851				—
Securities sold under repurchase agreements			1,725				487				244				185				184				2,641				702
Total interest expense			52,455				18,875				9,335				8,939				8,869				89,604				53,615
Net interest income			256,137				260,679				248,471				239,944				244,760				1,005,231				993,308
Provision for credit losses			—				—				—				—				—				—				—
Net interest income after provision for credit losses			256,137				260,679				248,471				239,944				244,760				1,005,231				993,308
Noninterest income:
Nonsufficient funds (NSF) fees			8,519				8,887				8,484				8,124				8,401				34,014				29,610
Credit card, debit card and ATM card income			8,816				8,889				8,880				8,179				8,894				34,764				34,680
Service charges on deposit accounts			5,932				6,222				6,365				6,211				6,237				24,730				24,392
Trust income			3,498				3,174				2,875				2,703				2,698				12,250				10,278
Mortgage income			102				340				502				455				685				1,399				8,302
Brokerage income			905				940				917				892				953				3,654				3,320
Bank owned life insurance income			1,329				1,214				1,293				1,283				1,317				5,119				5,228
Net gain (loss) on sale or write-down of assets			2,087				50				1,108				689				1,165				3,934				1,097
Other noninterest income			6,536				4,972				7,170				6,586				5,407				25,264				23,059
Total noninterest income			37,724				34,688				37,594				35,122				35,757				145,128				139,966
Noninterest expense:
Salaries and benefits			75,353				79,578				80,371				79,411				76,496				314,713				310,556
Net occupancy and equipment			8,147				8,412				8,039				7,848				8,140				32,446				32,184
Credit and debit card, data processing and software amortization			9,716				9,516				9,246				8,849				9,050				37,327				35,104
Regulatory assessments and FDIC insurance			2,873				2,807				2,851				2,850				2,801				11,381				10,638
Core deposit intangibles amortization			2,558				2,577				2,581				2,620				2,855				10,336				11,551
Depreciation			4,438				4,436				4,539				4,547				4,518				17,960				18,095
Communications			3,506				3,374				3,206				2,919				3,134				13,005				12,028
Other real estate expense			154				198				195				214				24				761				496
Net loss (gain) on sale or write-down of other real estate			(63)				(213)				14				(621)				2				(883)				(2,720)
Merger related expenses			272				—				—				—				—				272				—
Other noninterest expense			12,290				11,529				11,836				11,213				12,518				46,868				45,688
Total noninterest expense			119,244				122,214				122,878				119,850				119,538				484,186				473,620
Income before income taxes			174,617				173,153				163,187				155,216				160,979				666,173				659,654
Provision for income taxes			36,737				37,333				34,697				32,890				34,192				141,657				140,357
Net income available to common shareholders		$	137,880			$	135,820			$	128,490			$	122,326			$	126,787			$	524,516			$	519,297

(C)	Interest income on securities was reduced by net premium amortization of $8,703, $9,947, $11,450, $12,857 and $16,006 for the three months ended December 31, 2022, September 30, 2022, June 30, 2022, March 31, 2022 and December 31, 2021, respectively, and $42,957 and $58,427 for the years ended December 31, 2022 and December 31, 2021, 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
		Dec 31, 2022				Sep 30, 2022				Jun 30, 2022				Mar 31, 2022				Dec 31, 2021				Dec 31, 2022				Dec 31, 2021
Profitability
Net income (D) (E)		$	137,880			$	135,820			$	128,490			$	122,326			$	126,787			$	524,516			$	519,297
Basic earnings per share		$	1.51			$	1.49			$	1.40			$	1.33			$	1.38			$	5.73			$	5.60
Diluted earnings per share		$	1.51			$	1.49			$	1.40			$	1.33			$	1.38			$	5.73			$	5.60
Return on average assets (F)			1.47	%			1.45	%			1.36	%			1.29	%			1.37	%			1.39	%			1.44	%
Return on average common equity (F)			8.26	%			8.24	%			7.84	%			7.54	%			7.91	%			7.97	%			8.21	%
Return on average tangible common equity (F) (G)			16.26	%			16.44	%			15.73	%			15.30	%			16.26	%			15.94	%			17.18	%
Tax equivalent net interest margin (D) (E) (H)			3.05	%			3.11	%			2.97	%			2.88	%			2.97	%			3.00	%			3.14	%
Efficiency ratio (G) (I)			40.87	%			41.38	%			43.12	%			43.68	%			42.79	%			42.23	%			41.83	%
Liquidity and Capital Ratios
Equity to assets			17.78	%			17.47	%			17.44	%			17.00	%			16.99	%			17.78	%			16.99	%
Common equity tier 1 capital			15.88	%	(J)		15.44	%	(J)		15.26	%	(J)		15.32	%	(J)		15.10	%			15.88	%	(J)		15.10	%
Tier 1 risk-based capital			15.88	%	(J)		15.44	%	(J)		15.26	%	(J)		15.32	%	(J)		15.10	%			15.88	%	(J)		15.10	%
Total risk-based capital			16.51	%	(J)		16.09	%	(J)		15.91	%	(J)		15.99	%	(J)		15.45	%			16.51	%	(J)		15.45	%
Tier 1 leverage capital			10.16	%	(J)		9.94	%	(J)		9.58	%	(J)		9.44	%	(J)		9.62	%			10.16	%	(J)		9.62	%
Period end tangible equity to period end tangible assets (G)			9.93	%			9.62	%			9.48	%			9.19	%			9.07	%			9.93	%			9.07	%
Other Data
Weighted-average shares used in computing earnings per common share
Basic			91,287				91,209				91,772				92,161				92,162				91,604				92,657
Diluted			91,287				91,209				91,772				92,161				92,162				91,604				92,657
Period end shares outstanding			91,314				91,210				91,196				92,160				92,170				91,314				92,170
Cash dividends paid per common share		$	0.55			$	0.52			$	0.52			$	0.52			$	0.52			$	2.11			$	1.99
Book value per common share		$	73.37			$	72.49			$	71.51			$	70.58			$	69.73			$	73.37			$	69.73
Tangible book value per common share (G)		$	37.41			$	36.47			$	35.46			$	34.87			$	34.00			$	37.41			$	34.00
Common Stock Market Price
High		$	76.32			$	77.93			$	73.50			$	80.46			$	78.67			$	80.46			$	83.02
Low		$	66.71			$	65.37			$	64.69			$	69.08			$	68.53			$	64.69			$	64.40
Period end closing price		$	72.68			$	66.68			$	68.27			$	69.38			$	72.35			$	72.68			$	72.35
Employees – FTE (excluding overtime)			3,633				3,592				3,576				3,595				3,704				3,633				3,704
Number of banking centers			272				272				272				272				273				272				273

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

	Three Months Ended										Year-to-Date
	Dec 31, 2022		Sep 30, 2022		Jun 30, 2022		Mar 31, 2022		Dec 31, 2021		Dec 31, 2022		Dec 31, 2021
Loan discount accretion
ASC 310-20	$603		$912		$(265)		$4,674		$4,635		$5,924		$31,440
ASC 310-30	$310		$322		$324		$521		$731		$1,477		$7,838
Securities net amortization	$12		$40		$12		$52		$139		$116		$557
Time deposits amortization	$59		$68		$84		$100		$127		$311		$1,162

(E)	Using effective tax rate of 21.0%, 21.6%, 21.3%, 21.2% and 21.2% for the three months ended December 31, 2022, September 30, 2022, June 30, 2022, March 31, 2022 and December 31, 2021, respectively, and 21.3% for the years ended December 31, 2022 and December 31, 2021.
(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 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 or write down of assets and securities. Additionally, taxes are not part of this calculation.
(J)	Beginning on January 1, 2022, the cumulative amount of the current expected credit loss ("CECL") transition adjustments is being phased in over a three-year transition period.

 

Prosperity Bancshares, Inc.® Financial Highlights (Unaudited) (Dollars in thousands)
YIELD ANALYSIS		Three Months Ended
		Dec 31, 2022										Sep 30, 2022										Dec 31, 2021
		Average Balance				Interest Earned/ Interest Paid				Average Yield/ Rate	(K)	Average Balance				Interest Earned/ Interest Paid				Average Yield/ Rate	(K)	Average Balance				Interest Earned/ Interest Paid				Average Yield/ Rate			(K)
Interest-earning assets:
Loans held for sale		$	1,758			$	27			6.09 %		$	4,136			$	57			5.47 %		$	8,794			$	71			3.20 %
Loans held for investment			17,818,769				223,768			4.98 %			17,275,866				199,417			4.58 %			16,830,163				192,200			4.53 %
Loans held for investment - Warehouse Purchase Program			747,007				11,331			6.02 %			938,589				10,794			4.56 %			1,772,971				13,938			3.12 %
Total Loans			18,567,534				235,126			5.02 %			18,218,591				210,268			4.58 %			18,611,928				206,209			4.40 %
Investment securities			14,715,516				72,533			1.96 %	(L)		14,962,847				68,761			1.82 %	(L)		12,751,857				46,857			1.46 %			(L)
Federal funds sold and other earning assets			101,986				933			3.63 %			87,859				525			2.37 %			1,393,859				563			0.16 %
Total interest-earning assets			33,385,036				308,592			3.67 %			33,269,297				279,554			3.33 %			32,757,644				253,629			3.07 %
Allowance for credit losses on loans			(282,546)										(283,244)										(287,191)
Noninterest-earning assets			4,515,412										4,480,512										4,476,582
Total assets		$	37,617,902									$	37,466,565									$	36,947,035
Interest-bearing liabilities:
Interest-bearing demand deposits		$	5,843,672			$	3,224			0.22 %		$	6,155,511			$	2,345			0.15 %		$	6,196,283			$	2,187			0.14 %
Savings and money market deposits			9,805,024				27,929			1.13 %			10,172,986				9,479			0.37 %			10,286,650				3,817			0.15 %
Certificates and other time deposits			2,066,085				4,895			0.94 %			2,185,529				2,845			0.52 %			2,766,123				2,681			0.38 %
Other borrowings			1,465,533				14,682			3.97 %			577,828				3,719			2.55 %			—				—				—
Securities sold under repurchase agreements			441,405				1,725			1.55 %			473,584				487			0.41 %			432,981				184			0.17 %
Total interest-bearing liabilities			19,621,719				52,455			1.06 %	(M)		19,565,438				18,875			0.38 %	(M)		19,682,037				8,869			0.18 %			(M)
Noninterest-bearing liabilities:
Noninterest-bearing demand deposits			11,064,714										11,048,856										10,587,441
Allowance for credit losses on off-balance sheet credit exposures			29,947										29,947										29,947
Other liabilities			224,512										231,812										234,746
Total liabilities			30,940,892										30,876,053										30,534,171
Shareholders' equity			6,677,010										6,590,512										6,412,864
Total liabilities and shareholders' equity		$	37,617,902									$	37,466,565									$	36,947,035
Net interest income and margin						$	256,137			3.04 %						$	260,679			3.11 %						$	244,760			2.96 %
Non-GAAP to GAAP reconciliation:
Tax equivalent adjustment							440										458										457
Net interest income and margin      (tax equivalent basis)						$	256,577			3.05 %						$	261,137			3.11 %						$	245,217			2.97 %

(K)	Annualized and based on an actual 365-day basis.
(L)	Yield on securities was impacted by net premium amortization of $8,703, $9,947 and $16,006 for the three months ended December 31, 2022, September 30 and December 31, 2021, respectively.
(M)	Total cost of funds, including noninterest bearing deposits, was 0.68%, 0.24% and 0.12% for the three months ended December 31, 2022, September 30, 2022 and December 31, 2021, respectively.

 

Prosperity Bancshares, Inc.® Financial Highlights (Unaudited) (Dollars in thousands)
YIELD ANALYSIS		Year-to-Date
		Dec 31, 2022										Dec 31, 2021
		Average Balance				Interest Earned/ Interest Paid				Average Yield/ Rate	(N)	Average Balance				Interest Earned/ Interest Paid				Average Yield/ Rate			(N)
Interest-earning assets:
Loans held for sale		$	3,420			$	164			4.80 %		$	16,807			$	510			3.03 %
Loans held for investment			17,155,082				788,504			4.60 %			17,128,069				806,012			4.71 %
Loans held for investment - Warehouse Purchase Program			1,051,237				42,521			4.04 %			1,988,724				63,386			3.19 %
Total loans			18,209,739				831,189			4.56 %			19,133,600				869,908			4.55 %
Investment securities			14,613,799				260,416			1.78 %	(O)		11,328,903				175,459			1.55 %			(O)
Federal funds sold and other earning assets			709,270				3,230			0.46 %			1,212,698				1,556			0.13 %
Total interest-earning assets			33,532,808				1,094,835			3.26 %			31,675,201				1,046,923			3.31 %
Allowance for credit losses on loans			(283,997)										(302,381)
Noninterest-earning assets			4,475,434										4,602,458
Total assets		$	37,724,245									$	35,975,278
Interest-bearing liabilities:
Interest-bearing demand deposits		$	6,299,924			$	10,175			0.16 %		$	6,169,864			$	17,215			0.28 %
Savings and money market deposits			10,384,178				45,907			0.44 %			9,883,549				19,582			0.20 %
Certificates and other time deposits			2,322,754				12,030			0.52 %			2,917,976				16,116			0.55 %
Other borrowings			543,107				18,851			3.47 %			—				—				—
Securities sold under repurchase agreements			457,553				2,641			0.58 %			410,747				702			0.17 %
Total interest-bearing liabilities			20,007,516				89,604			0.45 %	(P)		19,382,136				53,615			0.28 %			(P)
Noninterest-bearing liabilities:
Noninterest-bearing demand deposits			10,903,539										10,036,519
Allowance for credit losses on off-balance sheet credit exposures			29,947										29,947
Other liabilities			204,574										204,522
Total liabilities			31,145,576										29,653,124
Shareholders' equity			6,578,669										6,322,154
Total liabilities and shareholders' equity			37,724,245									$	35,975,278
Net interest income and margin						$	1,005,231			3.00 %						$	993,308			3.14 %
Non-GAAP to GAAP reconciliation:
Tax equivalent adjustment							1,815										2,229
Net interest income and margin (tax equivalent basis)						$	1,007,046			3.00 %						$	995,537			3.14 %

(N)	Annualized and based on an actual 365-day basis.
(O)	Yield on securities was impacted by net premium amortization of $42,957 and $58,427 for the years ended December 31, 2022 and 2021, respectively.
(P)	Total cost of funds, including noninterest bearing deposits, was 0.29% and 0.18% for the years ended December 31, 2022 and 2021, respectively.

 

Prosperity Bancshares, Inc.® Financial Highlights (Unaudited) (Dollars in thousands)
	Three Months Ended
	Dec 31, 2022				Sep 30, 2022				Jun 30, 2022				Mar 31, 2022				Dec 31, 2021
YIELD TREND (Q)
Interest-Earning Assets:
Loans held for sale		6.09	%			5.47	%			5.02	%			3.52	%			3.20	%
Loans held for investment		4.98	%			4.58	%			4.35	%			4.44	%			4.53	%
Loans held for investment - Warehouse Purchase Program		6.02	%			4.56	%			3.33	%			3.18	%			3.12	%
Total loans		5.02	%			4.58	%			4.28	%			4.35	%			4.40	%
Investment securities (R)		1.96	%			1.82	%			1.72	%			1.62	%			1.46	%
Federal funds sold and other earning assets		3.63	%			2.37	%			0.69	%			0.16	%			0.16	%
Total interest-earning assets		3.67	%			3.33	%			3.08	%			2.98	%			3.07	%
Interest-Bearing Liabilities:
Interest-bearing demand deposits		0.22	%			0.15	%			0.13	%			0.15	%			0.14	%
Savings and money market deposits		1.13	%			0.37	%			0.17	%			0.15	%			0.15	%
Certificates and other time deposits		0.94	%			0.52	%			0.34	%			0.35	%			0.38	%
Other borrowings		3.97	%			2.55	%			1.60	%			—				—
Securities sold under repurchase agreements		1.55	%			0.41	%			0.21	%			0.17	%			0.17	%
Total interest-bearing liabilities		1.06	%			0.38	%			0.19	%			0.17	%			0.18	%
Net Interest Margin		3.04	%			3.11	%			2.97	%			2.87	%			2.96	%
Net Interest Margin (tax equivalent)		3.05	%			3.11	%			2.97	%			2.88	%			2.97	%

(Q)	Annualized and based on average balances on an actual 365-day basis.
(R)	Yield on securities was impacted by net premium amortization of $8,703, $9,947, $11,450, $12,857 and $16,006 for the three months ended December 31, 2022, September 30, 2022, June 30, 2022, March 31, 2022 and December 31, 2021, respectively.

 

Prosperity Bancshares, Inc.® Financial Highlights (Unaudited) (Dollars in thousands)
		Three Months Ended
		Dec 31, 2022				Sep 30, 2022				Jun 30, 2022				Mar 31, 2022				Dec 31, 2021
Balance Sheet Averages
Loans held for sale		$	1,758			$	4,136			$	3,199			$	4,611			$	8,794
Loans held for investment			17,818,769				17,275,866				16,799,609				16,712,690				16,830,163
Loans held for investment - Warehouse Purchase Program			747,007				938,589				1,257,521				1,268,715				1,772,971
Total Loans			18,567,534				18,218,591				18,060,329				17,986,016				18,611,928
Investment securities			14,715,516				14,962,847				14,989,666				13,772,974				12,751,857
Federal funds sold and other earning assets			101,986				87,859				540,907				2,135,503				1,393,859
Total interest-earning assets			33,385,036				33,269,297				33,590,902				33,894,493				32,757,644
Allowance for credit losses on loans			(282,546)				(283,244)				(284,550)				(285,692)				(287,191)
Cash and due from banks			306,235				302,479				309,223				326,552				329,406
Goodwill			3,231,637				3,231,637				3,231,637				3,231,637				3,231,637
Core deposit intangibles, net			52,591				55,158				57,728				60,346				63,091
Other real estate			2,075				1,652				1,639				1,893				321
Fixed assets, net			338,572				336,657				336,242				327,297				321,524
Other assets			584,302				552,929				511,591				510,944				530,603
Total assets		$	37,617,902			$	37,466,565			$	37,754,412			$	38,067,470			$	36,947,035
Noninterest-bearing deposits		$	11,064,714			$	11,048,856			$	10,855,802			$	10,636,624			$	10,587,441
Interest-bearing demand deposits			5,843,672				6,155,511				6,437,614				6,775,114				6,196,283
Savings and money market deposits			9,805,024				10,172,986				10,702,273				10,870,461				10,286,650
Certificates and other time deposits			2,066,085				2,185,529				2,409,663				2,637,529				2,766,123
Total deposits			28,779,495				29,562,882				30,405,352				30,919,728				29,836,497
Other borrowings			1,465,533				577,828				112,582				—				—
Securities sold under repurchase agreements			441,405				473,584				463,108				452,054				432,981
Allowance for credit losses on off-balance sheet credit exposures			29,947				29,947				29,947				29,947				29,947
Other liabilities			224,512				231,812				186,344				176,360				234,746
Shareholders' equity			6,677,010				6,590,512				6,557,079				6,489,381				6,412,864
Total liabilities and equity		$	37,617,902			$	37,466,565			$	37,754,412			$	38,067,470			$	36,947,035

 

Prosperity Bancshares, Inc.® Financial Highlights (Unaudited) (Dollars in thousands)
		Dec 31, 2022			Sep 30, 2022			Jun 30, 2022			Mar 31, 2022			Dec 31, 2021
Period End Balances
Loan Portfolio
Commercial and industrial		$2,159,057	11.5 %		$2,188,029	11.8 %		$2,155,727	11.8 %		$2,007,783	11.1 %		$2,050,631	11.0 %
Warehouse purchase program		740,620	3.9 %		922,764	5.0 %		1,137,623	6.2 %		1,344,541	7.4 %		1,775,699	9.5 %
Construction, land development and other land loans		2,805,438	14.9 %		2,659,552	14.4 %		2,460,526	13.5 %		2,327,837	12.9 %		2,299,715	12.4 %
1-4 family residential		5,774,814	30.6 %		5,447,993	29.4 %		5,156,200	28.3 %		4,970,620	27.5 %		4,860,419	26.1 %
Home equity		966,410	5.1 %		943,197	5.1 %		932,725	5.1 %		870,130	4.8 %		808,289	4.4 %
Commercial real estate (includes multi-family residential)		4,986,211	26.5 %		4,966,243	26.8 %		4,967,662	27.3 %		5,150,555	28.5 %		5,251,368	28.2 %
Agriculture (includes farmland)		688,033	3.6 %		670,603	3.6 %		665,960	3.7 %		617,418	3.4 %		620,338	3.3 %
Consumer and other		283,559	1.5 %		288,834	1.6 %		274,532	1.5 %		246,433	1.4 %		288,496	1.6 %
Energy		429,479	2.3 %		410,069	2.2 %		430,339	2.4 %		445,949	2.5 %		491,305	2.6 %
Paycheck Protection Program		6,206	0.1 %		9,004	0.1 %		27,550	0.2 %		86,258	0.5 %		169,884	0.9 %
Total loans		$18,839,827			$18,506,288			$18,208,844			$18,067,524			$18,616,144
Deposit Types
Noninterest-bearing DDA		$10,915,448	38.2 %		$11,154,143	38.1 %		$11,032,184	36.9 %		$10,776,652	34.7 %		$10,750,034	34.9 %
Interest-bearing DDA		5,986,203	21.0 %		6,027,157	20.6 %		6,331,314	21.2 %		6,603,934	21.2 %		6,741,092	21.9 %
Money market		6,164,025	21.6 %		6,438,787	22.0 %		6,646,726	22.3 %		7,603,329	24.5 %		7,178,904	23.3 %
Savings		3,471,970	12.2 %		3,563,776	12.1 %		3,597,820	12.0 %		3,543,300	11.4 %		3,401,727	11.1 %
Certificates and other time deposits		1,995,885	7.0 %		2,116,232	7.2 %		2,257,574	7.6 %		2,541,095	8.2 %		2,700,005	8.8 %
Total deposits		$28,533,531			$29,300,095			$29,865,618			$31,068,310			$30,771,762
Loan to Deposit Ratio		66.0 %			63.2 %			61.0 %			58.2 %			60.5 %

 

Prosperity Bancshares, Inc.® Financial Highlights (Unaudited) (Dollars in thousands)
Construction Loans
		Dec 31, 2022							Sep 30, 2022							Jun 30, 2022							Mar 31, 2022							Dec 31, 2021
Single family residential construction		$	1,097,176			39.1	%		$	1,004,000			37.8	%		$	911,443			37.0	%		$	816,072			35.0	%		$	728,393			31.7	%
Land development			181,747			6.5	%			145,303			5.5	%			133,398			5.4	%			103,853			4.5	%			99,099			4.3	%
Raw land			332,603			11.9	%			343,066			12.9	%			316,750			12.9	%			310,987			13.4	%			322,673			14.0	%
Residential lots			243,942			8.7	%			237,714			8.9	%			223,703			9.1	%			212,029			9.1	%			206,978			9.0	%
Commercial lots			177,378			6.3	%			181,679			6.8	%			184,794			7.5	%			183,760			7.9	%			184,901			8.0	%
Commercial construction and other			772,606			27.5	%			747,803			28.1	%			690,453			28.1	%			701,148			30.1	%			757,687			33.0	%
Net unaccreted discount			(14)							(13)							(15)							(12)							(16)
Total construction loans		$	2,805,438						$	2,659,552						$	2,460,526						$	2,327,837						$	2,299,715

 

Non-Owner Occupied Commercial Real Estate Loans by Metropolitan Statistical Area (MSA) as of December 31, 2022
	Houston				Dallas				Austin				OK City				Tulsa				Other (S)				Total
Collateral Type
Shopping center/retail	$	404,150			$	242,437			$	49,492			$	18,421			$	20,660			$	279,922			$	1,015,082
Commercial and industrial buildings		161,356				76,607				20,912				32,365				14,092				207,638				512,970
Office buildings		90,430				258,544				32,174				68,116				4,289				65,188				518,741
Medical buildings		76,168				18,964				3,795				26,252				37,882				55,653				218,714
Apartment buildings		128,858				58,075				13,579				14,615				8,174				151,494				374,795
Hotel		108,718				68,012				34,065				28,058				—				129,254				368,107
Other		74,426				79,556				43,939				8,841				1,812				76,637				285,211
Total	$	1,044,106			$	802,195			$	197,956			$	196,668			$	86,909			$	965,786			$	3,293,620		(T)

 

Acquired Loans
	Non-PCD Loans												PCD Loans												Total Acquired Loans
	Balance at Acquisition Date				Balance at Sep 30, 2022				Balance at Dec 31, 2022				Balance at Acquisition Date				Balance at Sep 30, 2022				Balance at Dec 31, 2022				Balance at Acquisition Date				Balance at Sep 30, 2022				Balance at Dec 31, 2022
Loan marks:
Acquired banks (U)	$	345,599			$	2,836			$	2,233			$	320,052			$	3,671			$	3,361			$	665,651			$	6,507			$	5,594
Acquired portfolio loan balances:
Acquired banks (U)		12,286,159				1,410,748				1,319,507				689,573				66,613				63,383				12,975,732		(V)		1,477,361				1,382,890
Acquired portfolio loan balances less loan marks	$	11,940,560			$	1,407,912			$	1,317,274			$	369,521			$	62,942			$	60,022			$	12,310,081			$	1,470,854			$	1,377,296

(S)	Includes other MSA and non-MSA regions.
(T)	Represents a portion of total commercial real estate loans of $4.986 billion as of December 31, 2022.
(U)	Includes Bank Arlington, American State Bank, Community National Bank, First Federal Bank Texas, Coppermark Bank, First Victoria National Bank, The F&M Bank & Trust Company, Tradition Bank and LegacyTexas Bank.
(V)	Actual principal balances acquired.

  

Prosperity Bancshares, Inc.® Financial Highlights (Unaudited) (Dollars in thousands)
	Three Months Ended																				Year-to-Date
	Dec 31, 2022				Sep 30, 2022				Jun 30, 2022				Mar 31, 2022				Dec 31, 2021				Dec 31, 2022				Dec 31, 2021
Asset Quality
Nonaccrual loans	$	19,614			$	17,729			$	20,619			$	21,765			$	26,269			$	19,614			$	26,269
Accruing loans 90 or more days past due		5,917				378				13				3,695				887				5,917				887
Total nonperforming loans		25,531				18,107				20,632				25,460				27,156				25,531				27,156
Repossessed assets		—				13				—				19				310				—				310
Other real estate		1,963				1,758				1,555				1,705				622				1,963				622
Total nonperforming assets	$	27,494			$	19,878			$	22,187			$	27,184			$	28,088			$	27,494			$	28,088
Nonperforming assets:
Commercial and industrial (includes energy)	$	3,921			$	2,376			$	2,964			$	4,403			$	6,150			$	3,921			$	6,150
Construction, land development and other land loans		6,166				1,712				1,866				1,761				1,841				6,166				1,841
1-4 family residential (includes home equity)		15,326				13,986				14,335				11,899				11,990				15,326				11,990
Commercial real estate (includes multi-family residential)		1,649				1,364				2,448				7,685				7,276				1,649				7,276
Agriculture (includes farmland)		421				434				567				1,402				816				421				816
Consumer and other		11				6				7				34				15				11				15
Total	$	27,494			$	19,878			$	22,187			$	27,184			$	28,088			$	27,494			$	28,088
Number of loans/properties		170				150				160				147				157				170				157
Allowance for credit losses on loans	$	281,576			$	282,179			$	283,959			$	285,163			$	286,380			$	281,576			$	286,380
Net charge-offs (recoveries):
Commercial and industrial (includes energy)	$	(643)			$	(15)			$	(197)			$	14			$	177			$	(841)			$	9,053
Construction, land development and other land loans		(5)				(4)				(5)				430				(162)				416				(276)
1-4 family residential (includes home equity)		(55)				(202)				(32)				87				(72)				(202)				35
Commercial real estate (includes multi-family residential)		74				757				395				(366)				(10)				860				18,276
Agriculture (includes farmland)		(14)				119				(9)				(103)				(102)				(7)				(141)
Consumer and other		1,246				1,125				1,052				1,155				976				4,578				2,741
Total	$	603			$	1,780			$	1,204			$	1,217			$	807			$	4,804			$	29,688
Asset Quality Ratios
Nonperforming assets to average interest-earning assets		0.08	%			0.06	%			0.07	%			0.08	%			0.09	%			0.08	%			0.09	%
Nonperforming assets to loans and other real estate		0.15	%			0.11	%			0.12	%			0.15	%			0.15	%			0.15	%			0.15	%
Net charge-offs to average loans (annualized)		0.01	%			0.04	%			0.03	%			0.03	%			0.02	%			0.03	%			0.16	%
Allowance for credit losses on loans to total loans		1.49	%			1.52	%			1.56	%			1.58	%			1.54	%			1.49	%			1.54	%
Allowance for credit losses on loans to total loans, excluding Warehouse Purchase Program loans and Paycheck Protection Program loans (G)		1.56	%			1.61	%			1.67	%			1.71	%			1.72	%			1.56	%			1.72	%

 

 

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, Prosperity reviews return on average tangible common equity; tangible book value per share; the tangible equity to tangible assets ratio; allowance for credit losses on loans to total loans excluding Warehouse Purchase Program and PPP loans; and the efficiency ratio, excluding net gains and losses on the sale or write down of assets and securities, for internal planning and forecasting purposes. 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 on loans to total loans (excluding Warehouse Purchase Program loans and PPP loans). Prosperity has included information below relating to these non-GAAP financial measures for the applicable periods presented.

		Three Months Ended																				Year-to-Date
		Dec 31, 2022				Sep 30, 2022				Jun 30, 2022				Mar 31, 2022				Dec 31, 2021				Dec 31, 2022				Dec 31, 2021
Reconciliation of return on average common equity to return on average tangible common equity:
Net income		$	137,880			$	135,820			$	128,490			$	122,326			$	126,787			$	524,516			$	519,297
Average shareholders' equity		$	6,677,010			$	6,590,512			$	6,557,079			$	6,489,381			$	6,412,864			$	6,578,669			$	6,322,154
Less: Average goodwill and other intangible assets			(3,284,228)				(3,286,795)				(3,289,365)				(3,291,983)				(3,294,728)				(3,288,068)				(3,299,412)
Average tangible shareholders' equity		$	3,392,782			$	3,303,717			$	3,267,714			$	3,197,398			$	3,118,136			$	3,290,601			$	3,022,742
Return on average tangible common equity (F)			16.26	%			16.44	%			15.73	%			15.30	%			16.26	%			15.94	%			17.18	%
Reconciliation of book value per share to tangible book value per share:
Shareholders' equity		$	6,699,374			$	6,611,642			$	6,521,827			$	6,504,424			$	6,427,236			$	6,699,374			$	6,427,236
Less: Goodwill and other intangible assets			(3,282,984)				(3,285,542)				(3,288,119)				(3,290,700)				(3,293,320)				(3,282,984)				(3,293,320)
Tangible shareholders' equity		$	3,416,390			$	3,326,100			$	3,233,708			$	3,213,724			$	3,133,916			$	3,416,390			$	3,133,916
Period end shares outstanding			91,314				91,210				91,196				92,160				92,170				91,314				92,170
Tangible book value per share		$	37.41			$	36.47			$	35.46			$	34.87			$	34.00			$	37.41			$	34.00
Reconciliation of equity to assets ratio to period end tangible equity to period end tangible assets ratio:
Tangible shareholders' equity		$	3,416,390			$	3,326,100			$	3,233,708			$	3,213,724			$	3,133,916			$	3,416,390			$	3,133,916
Total assets		$	37,689,829			$	37,843,502			$	37,387,256			$	38,271,186			$	37,833,970			$	37,689,829			$	37,833,970
Less: Goodwill and other intangible assets			(3,282,984)				(3,285,542)				(3,288,119)				(3,290,700)				(3,293,320)				(3,282,984)				(3,293,320)
Tangible assets		$	34,406,845			$	34,557,960			$	34,099,137			$	34,980,486			$	34,540,650			$	34,406,845			$	34,540,650
Period end tangible equity to period end tangible assets ratio			9.93	%			9.62	%			9.48	%			9.19	%			9.07	%			9.93	%			9.07	%
Reconciliation of allowance for credit losses to total loans to allowance for credit losses on loans to total loans excluding Warehouse Purchase Program and Paycheck Protection Program loans:
Allowance for credit losses on loans		$	281,576			$	282,179			$	283,959			$	285,163			$	286,380			$	281,576			$	286,380
Total loans		$	18,839,827			$	18,506,288			$	18,208,844			$	18,067,524			$	18,616,144			$	18,839,827			$	18,616,144
Less: Warehouse Purchase Program loans			(740,620)				(922,764)				(1,137,623)				(1,344,541)				(1,775,699)				(740,620)				(1,775,699)
Less: Paycheck Protection Program loans			(6,206)				(9,004)				(27,550)				(86,258)				(169,884)				(6,206)				(169,884)
Total loans less Warehouse Purchase Program and Paycheck Protection Program loans		$	18,093,001			$	17,574,520			$	17,043,671			$	16,636,725			$	16,670,561			$	18,093,001			$	16,670,561
Allowance for credit losses on loans to total loans excluding Warehouse Purchase Program and Paycheck Protection Program loans			1.56	%			1.61	%			1.67	%			1.71	%			1.72	%			1.56	%			1.72	%
Reconciliation of efficiency ratio to efficiency ratio excluding net gains and losses on the sale of assets and securities:
Noninterest expense		$	119,244			$	122,214			$	122,878			$	119,850			$	119,538			$	484,186			$	473,620
Net interest income		$	256,137			$	260,679			$	248,471			$	239,944			$	244,760			$	1,005,231			$	993,308
Noninterest income			37,724				34,688				37,594				35,122				35,757				145,128				139,966
Less: net gain (loss) on sale or write down of assets			2,087				50				1,108				689				1,165				3,934				1,097
Noninterest income excluding net gains and losses on the sale or write down of assets and securities			35,637				34,638				36,486				34,433				34,592				141,194				138,869
Total income excluding net gains and losses on the sale or write down of assets and securities		$	291,774			$	295,317			$	284,957			$	274,377			$	279,352			$	1,146,425			$	1,132,177
Efficiency ratio, excluding net gains and losses on the sale or write down of assets and securities			40.87	%			41.38	%			43.12	%			43.68	%			42.79	%			42.23	%			41.83	%

 

 

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SOURCE Prosperity Bancshares, Inc.

FAQ

What were Prosperity Bancshares Q4 2022 earnings results?

Prosperity Bancshares reported a Q4 2022 net income of $137.9 million, or $1.51 per share.

How much did Prosperity Bancshares' loans increase in Q4 2022?

Loans, excluding certain programs, increased by $518.5 million, or 3.0%, during Q4 2022.

What is the status of Prosperity Bancshares' stock repurchase program?

The company has approved a stock repurchase program for up to 5% of its outstanding common stock.

What is the cash dividend declared by Prosperity Bancshares for Q1 2023?

Prosperity Bancshares declared a cash dividend of $0.55 per share for Q1 2023.

What acquisitions is Prosperity Bancshares currently pursuing?

Prosperity is pursuing acquisitions of First Bancshares of Texas and Lone Star State Bancshares.