PROSPERITY BANCSHARES, INC.® REPORTS FIRST QUARTER 2025 EARNINGS

Rhea-AI Summary

Prosperity Bancshares (NYSE: PB) reported strong Q1 2025 financial results with net income of $130.2 million, up 17.9% from Q1 2024. Earnings per share increased 16.1% to $1.37 compared to $1.18 in Q1 2024.

Key highlights include:

• Net interest margin rose 35 basis points to 3.14%
• Noninterest-bearing deposits reached $9.7 billion (34.5% of total deposits)
• Borrowings decreased by $500 million
• Nonperforming assets remained low at 0.24% of average interest-earning assets
• Return on average assets was 1.34%

The bank maintained strong asset quality with an allowance for credit losses of $386.7 million. Total assets stood at $38.765 billion, with loans at $21.978 billion and deposits at $28.027 billion as of March 31, 2025.

Positive

• Net income increased 17.9% year-over-year to $130.2 million
• Earnings per share grew 16.1% to $1.37
• Net interest margin improved by 35 basis points to 3.14%
• Borrowings decreased by $500 million
• Strong asset quality with low nonperforming assets at 0.24%

Negative

• Linked quarter loans decreased by $171.6 million
• Linked quarter deposits declined by $354.5 million
• Net charge-offs increased to $2.7 million from $2.1 million year-over-year

Insights

Financial Analyst

Prosperity Bancshares delivered outstanding Q1 results with 17.9% net income growth, expanding margins, and excellent asset quality metrics.

Prosperity Bancshares ($PB) has posted exceptionally strong Q1 2025 results, with $130.2 million in net income representing a 17.9% year-over-year increase. The $1.37 diluted EPS grew 16.1% compared to Q1 2024, demonstrating robust fundamental performance.

The bank's net interest margin (NIM) expansion tells a compelling story. At 3.14%, the NIM has increased 35 basis points year-over-year and 9 basis points sequentially. This margin improvement is particularly significant as it validates management's strategy of asset repricing in the current rate environment, with CEO David Zalman explicitly noting this trend is expected to continue "over the next several years."

Asset quality remains exceptional with nonperforming assets at just 0.24% of average interest-earning assets. The allowance for credit losses on loans stands at 1.59% of total loans (1.67% excluding Warehouse Purchase Program loans), providing substantial coverage against potential deterioration. No provision for credit losses was required this quarter, indicating management's confidence in the loan portfolio's health.

The recent Lone Star acquisition (completed April 1, 2024) has been successfully integrated, contributing to a 3.1% year-over-year deposit growth and 3.3% loan growth. The tangible equity to tangible assets ratio of 11.2% remains impressively high, giving the bank substantial capital flexibility.

The efficiency ratio of 45.71% is excellent by industry standards, reflecting disciplined expense management despite the recent merger integration. The 13.23% return on average tangible common equity demonstrates the bank's ability to generate strong returns for shareholders while maintaining a conservative risk profile.

Banking Industry Specialist

Prosperity's improved margins, decreasing borrowings, and strategic integration of Lone Star acquisition position it strongly in a competitive banking landscape.

Prosperity Bank's Q1 results reveal a textbook example of successful banking fundamentals in action. The 35 basis point expansion in net interest margin to 3.14% is particularly noteworthy given the challenging industry environment. This margin improvement stems from strategic asset repricing and deposit management rather than risky lending practices.

A critical strength is Prosperity's deposit composition, with $9.7 billion in noninterest-bearing deposits representing 34.5% of total deposits. This substantial no-cost funding base provides a significant competitive advantage, especially as interest rate dynamics evolve. The bank's ability to maintain this no-cost deposit ratio while competitors often struggle with deposit retention highlights its strong customer relationships.

The $500 million reduction in borrowings during Q1 2025 significantly improves the funding structure. By reducing reliance on generally higher-cost wholesale funding sources, Prosperity is strategically positioning its balance sheet for sustained profitability even if rate environments shift.

The Lone Star acquisition integration has proceeded efficiently, with minimal disruption to operations while adding five strategic banking centers in West Texas markets. This acquisition exemplifies Prosperity's disciplined approach to inorganic growth - targeting complementary markets with similar risk profiles rather than pursuing scale for its own sake.

Texas and Oklahoma economic conditions remain supportive tailwinds for Prosperity, with the Dallas Fed noting continued economic expansion and solid employment growth. The bank's conservative lending practices position it well to maintain growth momentum even amid economic uncertainty, as demonstrated by its consistently low nonperforming asset ratio of 0.24% - substantially below industry averages.

• First quarter earnings per share (diluted) of $1.37, an increase of 16.1% compared to first quarter 2024
• First quarter net income increased 17.9% to $130.2 million compared to first quarter 2024
• First quarter net interest margin increased 35 basis points to 3.14% compared to first quarter 2024
• Noninterest-bearing deposits of $9.7 billion, representing 34.5% of total deposits
• Borrowings decreased $500.0 million during first quarter 2025
• Allowance for credit losses on loans and on off-balance sheet credit exposure of $386.7 million and allowance for credit losses on loans to total loans, excluding Warehouse Purchase Program, of 1.67%⁽¹⁾
• Nonperforming assets remain low at 0.24% of first quarter average interest-earning assets
• Return (annualized) on first quarter average assets of 1.34% and average tangible common equity of 13.23%⁽¹⁾
• Named in Forbes' 2025 America's Best Banks
• Ranked among "America's Best Regional Banks" by Newsweek in 2025
• Named Best Overall Bank in Texas by Money for 2025

HOUSTON, April 23, 2025 /PRNewswire/ -- Prosperity Bancshares, Inc.^® (NYSE: PB), the parent company of Prosperity Bank^® (collectively, "Prosperity"), reported net income of $130.2 million for the quarter ended March 31, 2025 compared with $110.4 million for the same period in 2024. Net income per diluted common share was $1.37 for the quarter ended March 31, 2025 compared with $1.18 for the same period in 2024. The annualized return on first quarter average assets was 1.34%. Additionally, borrowings decreased $500.0 million during the first quarter of 2025. Nonperforming assets remain low at 0.24% of first quarter average interest-earning assets. 

"I am pleased to announce a 17.9% increase in net income and a 16.1% increase in earnings per share, each compared with the first quarter of 2024.  As we predicted, our net interest margin continues to increase as our assets reprice higher.  We expect this trend to continue over the next several years," said David Zalman, Prosperity's Senior Chairman and Chief Executive Officer.

"We and others believe that Prosperity is doing the right thing. Prosperity has been ranked as one of Forbes Best Banks since the list's inception in 2010 and was ranked in the top 10 for 14 consecutive years. Additionally, Prosperity was named the "Best Overall Bank in Texas" by Money for 2024-2025 and was ranked among "America's Best Regional Banks" by Newsweek in 2025," added Zalman.

"Prosperity continues to focus on long term relationships and our customers' success while maintaining strong asset quality, solid earnings and a fair return to shareholders. Prosperity maintained a high tangible equity to tangible assets ratio of 11.2%, with tangible equity of $3.952 billion," continued Zalman.

"The Texas economy continues to expand.  Employment growth was solid, and sales tax revenue increased broadly according to the Federal Reserve Bank of Dallas Texas Economic Indicators dated April 3, 2025. The March 2025 Texas Business Outlook Surveys showed continued expansion in wages and benefits across all sectors," stated Zalman.

"Despite the uncertainty with tariffs, our teams in Texas and Oklahoma are optimistic based on conversations with our customers about their outlook and plans.  We will continue to be opportunistic, work hard, stay close to our customers and their needs and maintain a quality loan portfolio," continued Zalman.

"I would like to thank our customers for their business and continued trust and our associates, directors and officers for their hard work and dedication," concluded Zalman.

Results of Operations for the Three Months Ended March 31, 2025

Net income was $130.2 million⁽²⁾ for the three months ended March 31, 2025 compared with $110.4 million⁽³⁾ for the same period in 2024, an increase of $19.8 million or 17.9%. Net income per diluted common share was $1.37 for the three months ended March 31, 2025 compared with $1.18 for the same period in 2024, an increase of 16.1%. The changes were primarily due to an increase in net interest income, partially offset by an increase in salaries and benefits and provision for income taxes. On a linked quarter basis, net income was $130.2 million⁽²⁾ for the three months ended March 31, 2025 compared with $130.1 million⁽⁴⁾ for the three months ended December 31, 2024. Net income per diluted common share was $1.37 for the three months ended March 31, 2025 and December 31, 2024. Annualized returns on average assets, average common equity and average tangible common equity for the three months ended March 31, 2025 were 1.34%, 6.94% and 13.23%⁽¹⁾, respectively. Prosperity's efficiency ratio (excluding net gains and losses on the sale, write-down or write-up of assets and securities) was 45.71%⁽¹⁾ for the three months ended March 31, 2025.

Net interest income before provision for credit losses was $265.4 million for the three months ended March 31, 2025 compared with $238.2 million for the same period in 2024, an increase of $27.1 million or 11.4%. The change was primarily due to an increase in the average balances and average rates on loans, an increase in the average balances on federal funds sold and other earning assets and a decrease in the average balances and rates on other borrowings, partially offset by a decrease in the average balances on investment securities and an increase in the average balances on interest-bearing deposits. Net interest income before provision for credit losses decreased $2.4 million or 0.9% to $265.4 million for the three months ended March 31, 2025 compared with $267.8 million for the three months ended December 31, 2024.

The net interest margin on a tax equivalent basis was 3.14% for the three months ended March 31, 2025 compared with 2.79% for the same period in 2024. The change was primarily due to an increase in the average balances and average rates on loans, an increase in the average balances on federal funds sold and other earning assets and a decrease in the average balances and average rates on other borrowings, partially offset by a decrease in the average balances on investment securities and an increase in the average balances on interest-bearing deposits. The net interest margin on a tax equivalent basis was 3.14% for the three months ended March 31, 2025 compared with 3.05% for the three months ended December 31, 2024. The change was primarily due to a decrease in the average balances and average rates on other borrowings and a decrease in the average rates on interest-bearing deposits, partially offset by a decrease in the average balances and average rates on loans and a decrease in the average balances and average rates on federal funds sold and other earning assets.

Noninterest income was $41.3 million for the three months ended March 31, 2025 compared with $38.9 million for the same period in 2024, an increase of $2.4 million or 6.3%. The change was primarily due to increases in service charges on deposit accounts, nonsufficient funds fees and other noninterest income, partially offset by a decrease in trust income. Noninterest income was $41.3 million for the three months ended March 31, 2025 compared with $39.8 million for the three months ended December 31, 2024, an increase of $1.5 million or 3.7%.

Noninterest expense was $140.3 million for the three months ended March 31, 2025 compared with $135.8 million for the same period in 2024, an increase of $4.5 million or 3.3%, primarily due to an increase in salaries and benefits related to the merger of Lone Star State Bancshares, Inc. ("Lone Star") with Prosperity Bancshares and the merger of Lone Star State Bank of West Texas ("Lone Star Bank") with Prosperity Bank, both effective on April 1, 2024  (collectively, the "Merger"). Noninterest expense was $140.3 million for the three months ended March 31, 2025 compared with $141.5 million for the three months ended December 31, 2024, a decrease of $1.2 million or 0.9%.

Balance Sheet Information

At March 31, 2025, Prosperity had $38.765 billion in total assets, an increase of $8.2 million, compared with $38.757 billion at March 31, 2024. Linked quarter total assets decreased $802.1 million compared with $39.567 billion at December 31, 2024.

Loans were $21.978 billion at March 31, 2025, an increase of $712.3 million or 3.3%, compared with $21.265 billion at March 31, 2024, primarily due to the Merger. Linked quarter loans decreased $171.6 million from $22.149 billion at December 31, 2024. Loans, excluding Warehouse Purchase Program loans, were $20.920 billion at March 31, 2025 compared with $20.400 billion at March 31, 2024, an increase of $519.4 million or 2.5%, and compared with $21.068 billion at December 31, 2024, a decrease of $148.6 million.

Deposits were $28.027 billion at March 31, 2025, an increase of $851.3 million or 3.1%, compared with $27.176 billion at March 31, 2024, primarily due to the Merger. Linked quarter deposits decreased $354.5 million from $28.381 billion at December 31, 2024.

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

Balance Sheet Data (at period end)
(In thousands)
		Mar 31, 2025				Dec 31, 2024				Sep 30, 2024				Jun 30, 2024				Mar 31, 2024
		(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)
Loans acquired (including new production since acquisition date):
Lone Star Bank		$	976,624			$	1,057,618			$	1,109,783			$	1,084,559			$	—
Prosperity Bank
Warehouse Purchase Program loans			1,057,893				1,080,903				1,228,706				1,081,403				864,924
All other loans			19,943,053				20,010,688				20,042,363				20,154,853				20,400,323
Total loans		$	21,977,570			$	22,149,209			$	22,380,852			$	22,320,815			$	21,265,247
Deposits assumed (including new deposits since acquisition date):
Lone Star Bank		$	983,280			$	1,093,536			$	1,136,216			$	1,187,821			$	—
All other deposits			27,043,519				27,287,802				26,951,395				26,745,265				27,175,518
Total deposits		$	28,026,799			$	28,381,338			$	28,087,611			$	27,933,086			$	27,175,518

Excluding loans acquired in the Merger and new production at the acquired banking centers since April 1, 2024, loans at March 31, 2025 decreased $264.3 million compared with March 31, 2024 and decreased $90.6 million compared with December 31, 2024.

Excluding deposits assumed in the Merger and new deposits generated at the acquired banking centers since April 1, 2024, deposits at March 31, 2025 decreased $132.0 million compared with March 31, 2024 and decreased $244.3 million compared with December 31, 2024.

Asset Quality

Nonperforming assets totaled $81.4 million or 0.24% of quarterly average interest-earning assets at March 31, 2025 compared with $83.8 million or 0.24% of quarterly average interest-earning assets at March 31, 2024 and $81.5 million or 0.23% of quarterly average interest-earning assets at December 31, 2024.

The allowance for credit losses on loans and on off-balance sheet credit exposures was $386.7 million at March 31, 2025 compared with $366.7 million at March 31, 2024 and $389.5 million at December 31, 2024. There was no provision for credit losses for the three months ended March 31, 2025, March 31, 2024 and December 31, 2024.

The allowance for credit losses on loans was $349.1 million or 1.59% of total loans at March 31, 2025 compared with $330.2 million or 1.55% of total loans at March 31, 2024 and $351.8 million or 1.59% of total loans at December 31, 2024. Excluding Warehouse Purchase Program loans, the allowance for credit losses on loans to total loans was 1.67%⁽¹⁾ at March 31, 2025 compared with 1.62%⁽¹⁾ at March 31, 2024 and 1.67%⁽¹⁾ at December 31, 2024.

Net charge-offs were $2.7 million for the three months ended March 31, 2025 compared with net charge-offs of $2.1 million for the three months ended March 31, 2024 and net charge-offs of $2.6 million for the three months ended December 31, 2024. For the first quarter of 2025, $8.3 million of reserves on resolved purchased credit deteriorated ("PCD") loans without any related charge-offs were released to the general reserve.

Dividend

Prosperity Bancshares declared a second quarter 2025 cash dividend of $0.58 per share to be paid on July 1, 2025, to all shareholders of record as of June 13, 2025.

Merger of Lone Star State Bancshares, Inc.

On April 1, 2024, Prosperity completed the merger of Lone Star and its wholly owned subsidiary Lone Star Bank, headquartered in Lubbock, Texas. Lone Star Bank operated 5 full-service banking offices in the West Texas area, including its main office in Lubbock, and 1 banking center in each of Brownfield, Midland, Odessa and Big Spring, Texas.

Pursuant to the terms of the definitive agreement, Prosperity issued 2,376,182 shares of Prosperity common stock plus approximately $64.1 million in cash for all outstanding shares of Lone Star in the second quarter of 2024. This resulted in goodwill of $106.7 million as of March 31, 2025.

Conference Call

Prosperity's management team will host a conference call on Wednesday, April 23, 2025, at 11:30 a.m. Eastern Time (10:30 a.m. Central Time) to discuss Prosperity's first quarter 2025 earnings. Individuals and investment professionals may participate in the call by dialing 877-883-0383 for domestic participants, or 412-902-6506 for international participants. The participant elite entry number is 7564851.

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

Non-GAAP Financial Measures

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

Prosperity Bancshares, Inc. ®

As of March 31, 2025, Prosperity Bancshares, Inc.^® is a $38.765 billion Houston, Texas based regional financial holding company providing personal banking services and investments to consumers and businesses throughout Texas and Oklahoma. Founded in 1983, Prosperity believes in a community banking philosophy, taking care of customers, businesses and communities in the areas it serves by providing financial solutions to simplify everyday financial needs. In addition to offering traditional deposit and loan products, Prosperity offers digital banking solutions, credit and debit cards, mortgage services, retail brokerage services, trust and wealth management, and treasury management.

Prosperity currently operates 284 full-service banking locations: 65 in the Houston area, including The Woodlands; 30 in the South Texas area including Corpus Christi and Victoria; 62 in the Dallas/Fort Worth area; 22 in the East Texas area; 31 in the Central Texas area including Austin and San Antonio; 45 in the West Texas area including Lubbock, Midland-Odessa, Abilene, Amarillo and Wichita Falls; 15 in the Bryan/College Station area; 6 in the Central Oklahoma area; and 8 in the Tulsa, Oklahoma area.

Cautionary Notes on Forward-Looking Statements

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: This release contains, and the remarks by Prosperity's management on the conference call may contain, forward-looking statements within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. From time to time, oral or written forward-looking statements may also be included in other information released to the public.  Such forward-looking statements are typically, but not exclusively, identified by the use in the statements of words or phrases such as "aim," "anticipate," "believe," "estimate," "expect," "goal," "guidance," "intend," "is anticipated," "is expected," "is intended," "objective," "plan," "projected," "projection," "will affect," "will be," "will continue," "will decrease," "will grow," "will impact," "will increase," "will incur," "will reduce," "will remain," "will result," "would be," variations of such words or phrases (including where the word "could," "may," or "would" is used rather than the word "will" in a phrase) and similar words and phrases indicating that the statement addresses some future result, occurrence, plan or objective. Forward-looking statements include all statements other than statements of historical fact, including forecasts or trends, and are based on current expectations, assumptions, estimates and projections about Prosperity Bancshares and its subsidiaries. These forward-looking statements may include information about Prosperity's possible or assumed future economic performance or future results of operations, including future revenues, income, expenses, provision for credit losses, provision for taxes, effective tax rate, earnings per share and cash flows and Prosperity's future capital expenditures and dividends, future financial condition and changes therein, including changes in Prosperity's loan portfolio and allowance for credit losses, changes in deposits, borrowings and the investment securities portfolio, future capital structure or changes therein, as well as the plans and objectives of management for Prosperity's future operations, future or proposed acquisitions, the future or expected effect of acquisitions on Prosperity's operations, results of operations, financial condition, and future economic performance, statements about the anticipated benefits of any proposed transactions, and statements about the assumptions underlying any such statement. These forward‑looking statements are not guarantees of future performance and are based on expectations and assumptions Prosperity currently believes to be valid. Because forward-looking statements relate to future results and occurrences, many of which are outside of Prosperity's control, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. These risks and uncertainties include, but are not limited to, whether Prosperity can: successfully identify acquisition targets and integrate the businesses of acquired companies and banks; continue to sustain its current internal growth rate or total growth rate; provide products and services that appeal to its customers; continue to have access to debt and equity capital markets; and achieve its sales objectives. Other risks include, but are not limited to: the possibility that credit quality could deteriorate; actions of competitors; changes in laws and regulations (including changes in governmental interpretations of regulations and changes in accounting standards); the possibility that the anticipated benefits of an acquisition transaction are not realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of two companies or as a result of the strength of the economy and competitive factors generally; a deterioration or downgrade in the credit quality and credit agency ratings of the securities in Prosperity's securities portfolio; customer and consumer demand, including customer and consumer response to marketing; effectiveness of spending, investments or programs; fluctuations in the cost and availability of supply chain resources; economic conditions, including currency rate, interest rate and commodity price fluctuations; changes in trade policies by the United States or other countries, such as tariffs or retaliatory tariffs; and the effect, impact, potential duration or other implications of weather and climate-related events. Prosperity disclaims any obligation to update such factors or to publicly announce the results of any revisions to any of the forward-looking statements included herein to reflect future events or developments. These and various other factors are discussed in Prosperity's Annual Report on Form 10-K for the year ended December 31, 2024, and other reports and statements Prosperity has filed with the Securities and Exchange Commission ("SEC"). Copies of the SEC filings for Prosperity may be downloaded from the Internet at no charge from http://www.prosperitybankusa.com.

_______________
(1)	Refer to the "Notes to Selected Financial Data" at the end of this Earnings Release for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure.
(2)	Includes purchase accounting adjustments of $3.2 million, net of tax, primarily comprised of loan discount accretion of $3.3 million for the three months ended March 31, 2025.
(3)	Includes purchase accounting adjustments of $2.0 million, net of tax, primarily comprised of loan discount accretion of $1.9 million for the three months ended March 31, 2024.
(4)	Includes purchase accounting adjustments of $3.3 million, net of tax, primarily comprised of loan discount accretion of $3.6 million for the three months ended December 31, 2024.

 

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

 - - -

Prosperity Bancshares, Inc.® Financial Highlights (Unaudited) (In thousands)
		Mar 31, 2025				Dec 31, 2024				Sep 30, 2024				Jun 30, 2024				Mar 31, 2024
Balance Sheet Data (at period end)
Loans held for sale		$	9,764			$	10,690			$	6,113			$	9,951			$	6,380
Loans held for investment			20,909,913				21,057,616				21,146,033				21,229,461				20,393,943
Loans held for investment - Warehouse Purchase Program			1,057,893				1,080,903				1,228,706				1,081,403				864,924
Total loans			21,977,570				22,149,209				22,380,852				22,320,815				21,265,247
Investment securities(A)			10,792,731				11,094,424				11,300,756				11,702,139				12,301,138
Federal funds sold			221				292				208				234				250
Allowance for credit losses on loans			(349,101)				(351,805)				(354,397)				(359,852)				(330,219)
Cash and due from banks			1,694,637				1,972,175				2,209,863				1,507,604				1,086,444
Goodwill			3,503,127				3,503,129				3,504,388				3,504,107				3,396,402
Core deposit intangibles, net			62,406				66,047				70,178				74,324				60,757
Other real estate owned			8,012				5,701				5,757				4,960				2,204
Fixed assets, net			373,273				371,238				373,812				377,394				372,333
Other assets			701,799				756,328				623,903				630,569				601,964
Total assets		$	38,764,675			$	39,566,738			$	40,115,320			$	39,762,294			$	38,756,520
Noninterest-bearing deposits		$	9,675,915			$	9,798,438			$	9,811,361			$	9,706,505			$	9,526,535
Interest-bearing deposits			18,350,884				18,582,900				18,276,250				18,226,581				17,648,983
Total deposits			28,026,799				28,381,338				28,087,611				27,933,086				27,175,518
Other borrowings			2,700,000				3,200,000				3,900,000				3,900,000				3,900,000
Securities sold under repurchase agreements			216,086				221,913				228,896				233,689				261,671
Allowance for credit losses on off-balance sheet credit exposures			37,646				37,646				37,646				37,646				36,503
Other liabilities			267,083				287,346				499,918				374,429				278,284
Total liabilities			31,247,614				32,128,243				32,754,071				32,478,850				31,651,976
Shareholders' equity(B)			7,517,061				7,438,495				7,361,249				7,283,444				7,104,544
Total liabilities and equity		$	38,764,675			$	39,566,738			$	40,115,320			$	39,762,294			$	38,756,520

(A)	Includes $(1,374), $(2,056), $(1,070), $(2,007) and $(2,954) in unrealized losses on available for sale securities for the quarterly periods ended March 31, 2025, December 31, 2024, September 30, 2024, June 30, 2024 and March 31, 2024, respectively.
(B)	Includes $(1,085), $(1,624), $(845), $(1,586) and $(2,333) in after-tax unrealized losses on available for sale securities for the quarterly periods ended March 31, 2025, December 31, 2024, September 30, 2024, June 30, 2024 and March 31, 2024, respectively.

 

Prosperity Bancshares, Inc.® Financial Highlights (Unaudited) (In thousands)
		Three Months Ended
		Mar 31, 2025				Dec 31, 2024				Sep 30, 2024				Jun 30, 2024				Mar 31, 2024
Income Statement Data
Interest income:
Loans		$	319,023			$	333,055			$	337,451			$	336,428			$	306,228
Securities(C)			57,886				58,260				59,617				62,428				66,421
Federal funds sold and other earning assets			15,896				19,630				20,835				14,095				9,265
Total interest income			392,805				410,945				417,903				412,951				381,914
Interest expense:
Deposits			95,597				102,050				107,758				106,124				92,692
Other borrowings			30,492				39,620				46,792				46,282				48,946
Securities sold under repurchase agreements			1,334				1,501				1,662				1,759				2,032
Total interest expense			127,423				143,171				156,212				154,165				143,670
Net interest income			265,382				267,774				261,691				258,786				238,244
Provision for credit losses			—				—				—				9,066				—
Net interest income after provision for credit losses			265,382				267,774				261,691				249,720				238,244
Noninterest income:
Nonsufficient funds (NSF) fees			9,147				9,960				9,016				8,153				8,288
Credit card, debit card and ATM card income			8,739				9,443				9,620				9,384				8,861
Service charges on deposit accounts			7,408				6,992				6,664				6,436				6,406
Trust income			3,601				3,514				3,479				3,601				4,156
Mortgage income			1,009				779				962				745				610
Brokerage income			1,262				1,063				1,258				1,186				1,235
Bank owned life insurance income			2,115				2,020				2,028				1,885				2,047
Net (loss) gain on sale or write-down of assets			(235)				584				3,178				(903)				(35)
Net gain on sale or write-up of securities			—				—				224				10,723				298
Other noninterest income			8,255				5,482				4,670				4,793				7,004
Total noninterest income			41,301				39,837				41,099				46,003				38,870
Noninterest expense:
Salaries and benefits			89,476				88,631				88,367				89,584				85,771
Net occupancy and equipment			9,146				8,957				9,291				8,915				8,623
Credit and debit card, data processing and software amortization			11,422				12,342				11,985				11,998				10,975
Regulatory assessments and FDIC insurance			5,789				5,789				5,726				10,317				5,538
Core deposit intangibles amortization			3,641				4,131				4,146				4,156				3,237
Depreciation			4,774				4,791				4,741				4,836				4,686
Communications			3,473				3,450				3,360				3,485				3,402
Other real estate expense			140				255				12				69				187
Net (gain) loss on sale or write-down of other real estate			(30)				(610)				(97)				31				(138)
Merger related expenses			—				—				63				4,381				—
Other noninterest expense			12,470				13,809				12,744				15,070				13,567
Total noninterest expense			140,301				141,545				140,338				152,842				135,848
Income before income taxes			166,382				166,066				162,452				142,881				141,266
Provision for income taxes			36,157				35,990				35,170				31,279				30,840
Net income available to common shareholders		$	130,225			$	130,076			$	127,282			$	111,602			$	110,426

(C)	Interest income on securities was reduced by net premium amortization of $5,027, $5,609, $5,574, $5,831 and $5,822 for the three months ended March 31, 2025, December 31, 2024, September 30, 2024, June 30, 2024 and March 31, 2024, respectively.

 

Prosperity Bancshares, Inc. ® Financial Highlights (Unaudited) (Dollars and share amounts in thousands, except per share data and market prices)
		Three Months Ended
		Mar 31, 2025				Dec 31, 2024				Sep 30, 2024				Jun 30, 2024				Mar 31, 2024
Profitability
Net income (D) (E)		$	130,225			$	130,076			$	127,282			$	111,602			$	110,426
Basic earnings per share		$	1.37			$	1.37			$	1.34			$	1.17			$	1.18
Diluted earnings per share		$	1.37			$	1.37			$	1.34			$	1.17			$	1.18
Return on average assets (F) (J)			1.34	%			1.31	%			1.28	%			1.12	%			1.13	%
Return on average common equity (F) (J)			6.94	%			7.00	%			6.93	%			6.10	%			6.20	%
Return on average tangible common equity (F) (G) (J)			13.23	%			13.50	%			13.50	%			11.81	%			12.06	%
Tax equivalent net interest margin (D) (E) (H)			3.14	%			3.05	%			2.95	%			2.94	%			2.79	%
Efficiency ratio (G) (I) (K)			45.71	%			46.10	%			46.87	%			51.82	%			49.07	%
Liquidity and Capital Ratios
Equity to assets			19.39	%			18.80	%			18.35	%			18.32	%			18.33	%
Common equity tier 1 capital			16.97	%			16.42	%			15.84	%			15.42	%			15.75	%
Tier 1 risk-based capital			16.97	%			16.42	%			15.84	%			15.42	%			15.75	%
Total risk-based capital			18.22	%			17.67	%			17.09	%			16.67	%			17.00	%
Tier 1 leverage capital			11.20	%			10.82	%			10.52	%			10.29	%			10.37	%
Period end tangible equity to period end tangible assets (G)			11.23	%			10.75	%			10.36	%			10.24	%			10.33	%
Other Data
Weighted-average shares used in computing earnings per common share
Basic			95,266				95,264				95,261				95,765				93,706
Diluted			95,266				95,264				95,261				95,765				93,706
Period end shares outstanding			95,258				95,275				95,261				95,262				93,525
Cash dividends paid per common share		$	0.58			$	0.58			$	0.56			$	0.56			$	0.56
Book value per common share		$	78.91			$	78.07			$	77.27			$	76.46			$	75.96
Tangible book value per common share (G)		$	41.48			$	40.61			$	39.75			$	38.89			$	39.00
Common Stock Market Price
High		$	82.75			$	86.76			$	74.87			$	66.18			$	68.88
Low		$	68.96			$	68.94			$	58.66			$	57.16			$	60.08
Period end closing price		$	71.37			$	75.35			$	72.07			$	61.14			$	65.78
Employees – FTE (excluding overtime)			3,898				3,916				3,896				3,902				3,901
Number of banking centers			284				283				287				288				283

 

(D) |Includes purchase accounting adjustments for the periods presented as follows:
	Three Months Ended
	Mar 31, 2025		Dec 31, 2024		Sep 30, 2024		Jun 30, 2024		Mar 31, 2024
Loan discount accretion
Non-PCD	$2,615		$2,761		$3,616		$4,797		$1,312
PCD	$677		$850		$1,212		$2,394		$548
Securities net accretion	$705		$528		$555		$564		$561
Time deposits amortization	$(9)		$(21)		$(40)		$4		$(97)

(E)	Using effective tax rate of 21.7%, 21.7%, 21.6%, 21.9% and 21.8% for the three months ended March 31, 2025, December 31, 2024, September 30, 2024, June 30, 2024 and March 31, 2024, respectively.
(F)	Interim periods annualized.
(G)	Refer to the "Notes to Selected Financial Data" at the end of this Earnings Release for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure.
(H)	Net interest margin for all periods presented is based on average balances on an actual 365-day or 366-day basis.
(I)	Calculated by dividing total noninterest expense, excluding credit loss provisions, by net interest income plus noninterest income, excluding net gains and losses on the sale, write-down or write-up of assets and securities. Additionally, taxes are not part of this calculation.
(J)	For calculations of the annualized returns on average assets, average common equity and average tangible common equity excluding merger related provision for credit losses, net of tax, merger related expenses, net of tax, FDIC special assessment, net of tax, and net gain on sale or write-up of securities, net of tax refer to the "Notes to Selected Financial Data" at the end of this Earnings Release for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure.
(K)	For calculations of the efficiency ratio excluding merger related expenses and FDIC special assessment refer to the "Notes to Selected Financial Data" at the end of this Earnings Release for a reconciliation of these non-GAAP financial measures to the nearest respective GAAP financial measures.

 

Prosperity Bancshares, Inc.® Financial Highlights (Unaudited) (Dollars in thousands)
YIELD ANALYSIS		Three Months Ended
		Mar 31, 2025										Dec 31, 2024										Mar 31, 2024
		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		$	7,570			$	127			6.80 %		$	8,571			$	144			6.68 %		$	5,467			$	92			6.77 %
Loans held for investment			20,959,226				305,068			5.90 %			21,038,694				313,863			5.93 %			20,415,316				292,673			5.77 %
Loans held for investment - Warehouse Purchase Program			876,086				13,828			6.40 %			1,137,113				19,048			6.66 %			720,650				13,463			7.51 %
Total loans			21,842,882				319,023			5.92 %			22,184,378				333,055			5.97 %			21,141,433				306,228			5.83 %
Investment securities			11,017,400				57,886			2.13 %	(M)		11,265,535				58,260			2.06 %	(M)		12,693,268				66,421			2.10 %	(M)
Federal funds sold and other earning assets			1,443,220				15,896			4.47 %			1,628,050				19,630			4.80 %			672,840				9,265			5.54 %
Total interest-earning assets			34,303,502				392,805			4.64 %			35,077,963				410,945			4.66 %			34,507,541				381,914			4.45 %
Allowance for credit losses on loans			(350,715)										(353,560)										(331,708)
Noninterest-earning assets			5,004,291										4,902,996										4,759,697
Total assets		$	38,957,078									$	39,627,399									$	38,935,530
Interest-bearing liabilities:
Interest-bearing demand deposits		$	5,224,796			$	9,019			0.70 %		$	4,845,174			$	8,535			0.70 %		$	5,143,585			$	8,423			0.66 %
Savings and money market deposits			9,007,286				45,645			2.06 %			8,915,410				47,089			2.10 %			8,889,077				47,152			2.13 %
Certificates and other time deposits			4,426,521				40,933			3.75 %			4,552,445				46,426			4.06 %			3,683,815				37,117			4.05 %
Other borrowings			2,776,667				30,492			4.45 %			3,332,609				39,620			4.73 %			4,083,132				48,946			4.82 %
Securities sold under repurchase agreements			217,945				1,334			2.48 %			231,240				1,501			2.58 %			296,437				2,032			2.76 %
Total interest-bearing liabilities			21,653,215				127,423			2.39 %	(N)		21,876,878				143,171			2.60 %	(N)		22,096,046				143,670			2.62 %	(N)
Noninterest-bearing liabilities:
Noninterest-bearing demand deposits			9,504,540										9,829,912										9,443,249
Allowance for credit losses on off-balance sheet credit exposures			37,646										37,646										36,503
Other liabilities			255,876										454,298										238,480
Total liabilities			31,451,277										32,198,734										31,814,278
Shareholders' equity			7,505,801										7,428,665										7,121,252
Total liabilities and shareholders' equity		$	38,957,078									$	39,627,399									$	38,935,530
Net interest income and margin						$	265,382			3.14 %						$	267,774			3.04 %						$	238,244			2.78 %
Non-GAAP to GAAP reconciliation:
Tax equivalent adjustment							587										767										808
Net interest income and margin      (tax equivalent basis)						$	265,969			3.14 %						$	268,541			3.05 %						$	239,052			2.79 %

(L)	Annualized and based on an actual 365-day or 366-day basis.
(M)	Yield on securities was impacted by net premium amortization of $5,027, $5,609 and $5,822 for the three months ended March 31, 2025, December 31, 2024 and March 31, 2024, respectively.
(N)	Total cost of funds, including noninterest bearing deposits, was 1.66%, 1.80% and 1.83% for the three months ended March 31, 2025, December 31, 2024 and March 31, 2024, respectively.

 

Prosperity Bancshares, Inc.® Financial Highlights (Unaudited) (Dollars in thousands)
	Three Months Ended
	Mar 31, 2025				Dec 31, 2024				Sep 30, 2024				Jun 30, 2024				Mar 31, 2024
YIELD TREND (O)
Interest-Earning Assets:
Loans held for sale		6.80	%			6.68	%			6.89	%			7.10	%			6.77	%
Loans held for investment		5.90	%			5.93	%			5.97	%			6.02	%			5.77	%
Loans held for investment - Warehouse Purchase Program		6.40	%			6.66	%			7.27	%			7.42	%			7.51	%
Total loans		5.92	%			5.97	%			6.04	%			6.08	%			5.83	%
Investment securities (P)		2.13	%			2.06	%			2.04	%			2.06	%			2.10	%
Federal funds sold and other earning assets		4.47	%			4.80	%			5.41	%			5.52	%			5.54	%
Total interest-earning assets		4.64	%			4.66	%			4.70	%			4.68	%			4.45	%
Interest-Bearing Liabilities:
Interest-bearing demand deposits		0.70	%			0.70	%			0.77	%			0.76	%			0.66	%
Savings and money market deposits		2.06	%			2.10	%			2.23	%			2.22	%			2.13	%
Certificates and other time deposits		3.75	%			4.06	%			4.24	%			4.27	%			4.05	%
Other borrowings		4.45	%			4.73	%			4.77	%			4.77	%			4.82	%
Securities sold under repurchase agreements		2.48	%			2.58	%			2.72	%			2.74	%			2.76	%
Total interest-bearing liabilities		2.39	%			2.60	%			2.78	%			2.76	%			2.62	%
Net Interest Margin		3.14	%			3.04	%			2.94	%			2.94	%			2.78	%
Net Interest Margin (tax equivalent)		3.14	%			3.05	%			2.95	%			2.94	%			2.79	%

(O)	Annualized and based on average balances on an actual 365-day or 366-day basis.
(P)	Yield on securities was impacted by net premium amortization of $5,027, $5,609, $5,574, $5,831 and $5,822 for the three months ended March 31, 2025, December 31, 2024, September 30, 2024, June 30, 2024 and March 31, 2024, respectively.

 

Prosperity Bancshares, Inc.® Financial Highlights (Unaudited) (Dollars in thousands)
		Three Months Ended
		Mar 31, 2025				Dec 31, 2024				Sep 30, 2024				Jun 30, 2024				Mar 31, 2024
Balance Sheet Averages
Loans held for sale		$	7,570			$	8,571			$	7,913			$	8,446			$	5,467
Loans held for investment			20,959,226				21,038,694				21,107,139				21,328,824				20,415,316
Loans held for investment - Warehouse Purchase Program			876,086				1,137,113				1,114,681				917,026				720,650
Total loans			21,842,882				22,184,378				22,229,733				22,254,296				21,141,433
Investment securities			11,017,400				11,265,535				11,612,193				12,179,074				12,693,268
Federal funds sold and other earning assets			1,443,220				1,628,050				1,531,788				1,026,251				672,840
Total interest-earning assets			34,303,502				35,077,963				35,373,714				35,459,621				34,507,541
Allowance for credit losses on loans			(350,715)				(353,560)				(358,237)				(332,904)				(331,708)
Cash and due from banks			326,066				317,420				304,911				295,077				315,612
Goodwill			3,503,128				3,505,030				3,504,300				3,482,448				3,396,177
Core deposit intangibles, net			64,293				68,167				72,330				59,979				62,482
Other real estate			7,105				6,778				5,339				3,071				2,319
Fixed assets, net			374,448				373,561				375,626				377,369				372,458
Other assets			729,251				632,040				611,219				604,187				610,649
Total assets		$	38,957,078			$	39,627,399			$	39,889,202			$	39,948,848			$	38,935,530
Noninterest-bearing deposits		$	9,504,540			$	9,829,912			$	9,680,785			$	9,780,211			$	9,443,249
Interest-bearing demand deposits			5,224,796				4,845,174				4,774,975				4,839,194				5,143,585
Savings and money market deposits			9,007,286				8,915,410				8,908,315				9,084,051				8,889,077
Certificates and other time deposits			4,426,521				4,552,445				4,564,232				4,400,922				3,683,815
Total deposits			28,163,143				28,142,941				27,928,307				28,104,378				27,159,726
Other borrowings			2,776,667				3,332,609				3,900,000				3,900,000				4,083,132
Securities sold under repurchase agreements			217,945				231,240				242,813				258,637				296,437
Allowance for credit losses on off-balance sheet credit exposures			37,646				37,646				37,646				36,729				36,503
Other liabilities			255,876				454,298				433,171				327,847				238,480
Shareholders' equity			7,505,801				7,428,665				7,347,265				7,321,257				7,121,252
Total liabilities and equity		$	38,957,078			$	39,627,399			$	39,889,202			$	39,948,848			$	38,935,530

 

Prosperity Bancshares, Inc.® Financial Highlights (Unaudited) (Dollars in thousands)
		Mar 31, 2025			Dec 31, 2024			Sep 30, 2024			Jun 30, 2024			Mar 31, 2024
Period End Balances
Loan Portfolio
Commercial and industrial		$1,915,124	8.7 %		$1,962,111	8.8 %		$1,970,844	8.8 %		$2,023,531	9.1 %		$1,932,534	9.1 %
Warehouse purchase program		1,057,893	4.8 %		1,080,903	4.9 %		1,228,706	5.5 %		1,081,403	4.8 %		864,924	4.1 %
Construction, land development and other land loans		2,845,082	13.0 %		2,859,281	12.9 %		2,814,521	12.6 %		2,828,372	12.7 %		2,876,588	13.5 %
1-4 family residential		7,576,350	34.5 %		7,581,450	34.2 %		7,557,858	33.8 %		7,496,485	33.6 %		7,331,251	34.5 %
Home equity		896,529	4.1 %		906,139	4.1 %		919,676	4.1 %		930,428	4.2 %		950,169	4.5 %
Commercial real estate (includes multi-family residential)		5,783,410	26.3 %		5,800,985	26.2 %		5,869,687	26.2 %		5,961,884	26.7 %		5,631,460	26.5 %
Agriculture (includes farmland)		1,013,960	4.6 %		1,033,546	4.7 %		1,033,224	4.6 %		1,037,361	4.6 %		813,092	3.8 %
Consumer and other		378,821	1.7 %		378,817	1.7 %		413,548	1.8 %		340,611	1.5 %		326,915	1.5 %
Energy		510,401	2.3 %		545,977	2.5 %		572,788	2.6 %		620,740	2.8 %		538,314	2.5 %
Total loans		$21,977,570			$22,149,209			$22,380,852			$22,320,815			$21,265,247
Deposit Types
Noninterest-bearing DDA		$9,675,915	34.5 %		$9,798,438	34.5 %		$9,811,361	34.9 %		$9,706,505	34.7 %		$9,526,535	35.1 %
Interest-bearing DDA		4,931,769	17.6 %		5,182,035	18.3 %		4,800,758	17.1 %		4,762,730	17.1 %		4,867,247	17.9 %
Money market		6,339,509	22.6 %		6,229,022	21.9 %		6,166,792	22.0 %		6,180,769	22.1 %		6,134,221	22.6 %
Savings		2,703,736	9.7 %		2,685,496	9.5 %		2,707,982	9.6 %		2,765,197	9.9 %		2,830,117	10.4 %
Certificates and other time deposits		4,375,870	15.6 %		4,486,347	15.8 %		4,600,718	16.4 %		4,517,885	16.2 %		3,817,398	14.0 %
Total deposits		$28,026,799			$28,381,338			$28,087,611			$27,933,086			$27,175,518
Loan to Deposit Ratio		78.4 %			78.0 %			79.7 %			79.9 %			78.3 %

 

Prosperity Bancshares, Inc.® Financial Highlights (Unaudited) (Dollars in thousands)
Construction Loans
		Mar 31, 2025							Dec 31, 2024							Sep 30, 2024							Jun 30, 2024							Mar 31, 2024
Single family residential construction		$	727,417			25.6	%		$	778,067			27.2	%		$	836,571			29.7	%		$	940,381			33.2	%		$	1,031,163			35.8	%
Land development			225,784			7.9	%			260,158			9.1	%			256,571			9.1	%			241,639			8.5	%			290,243			10.1	%
Raw land			261,918			9.2	%			278,892			9.7	%			263,411			9.4	%			291,112			10.3	%			311,265			10.8	%
Residential lots			219,115			7.7	%			209,850			7.3	%			217,920			7.7	%			222,343			7.9	%			224,901			7.8	%
Commercial lots			56,343			2.0	%			59,044			2.1	%			58,472			2.1	%			60,264			2.1	%			59,691			2.1	%
Commercial construction and other			1,355,587			47.6	%			1,274,619			44.6	%			1,183,127			42.0	%			1,074,361			38.0	%			959,687			33.4	%
Net unaccreted discount			(1,082)							(1,349)							(1,551)							(1,728)							(362)
Total construction loans		$	2,845,082						$	2,859,281						$	2,814,521						$	2,828,372						$	2,876,588

 

Non-Owner Occupied Commercial Real Estate Loans by Metropolitan Statistical Area (MSA) as of March 31, 2025
	Houston				Dallas				Austin				OK City				Tulsa				Other (Q)				Total
Collateral Type
Shopping center/retail	$	346,908			$	267,598			$	59,782			$	15,378			$	13,316			$	329,976			$	1,032,958
Commercial and industrial buildings		133,345				108,865				22,286				34,480				12,650				280,894				592,520
Office buildings		99,324				218,192				124,542				46,002				4,435				88,523				581,018
Medical buildings		83,321				17,176				1,672				42,396				28,386				77,225				250,176
Apartment buildings		92,435				119,450				64,487				10,802				13,696				209,732				510,602
Hotel		109,443				120,154				30,981				11,408				—				185,995				457,981
Other		174,428				53,390				19,365				7,187				6,861				92,077				353,308
Total	$	1,039,204			$	904,825			$	323,115			$	167,653			$	79,344			$	1,264,422			$	3,778,563		(R)

 

Acquired Loans
	Non-PCD Loans												PCD Loans												Total Acquired Loans
	Balance at Acquisition Date				Balance at Dec 31, 2024				Balance at Mar 31, 2025				Balance at Acquisition Date				Balance at Dec 31, 2024				Balance at Mar 31, 2025				Balance at Acquisition Date				Balance at Dec 31, 2024				Balance at Mar 31, 2025
Loan marks:
Acquired banks (S)	$	368,247			$	14,201			$	13,536			$	327,842			$	5,931			$	5,620			$	696,089			$	20,132			$	19,156
Lone Star Bank (T)		20,378				13,644				11,714				4,558				1,459				1,093				24,936				15,103				12,807
Total		388,625				27,845				25,250				332,400				7,390				6,713				721,025				35,235				31,963
Acquired portfolio loan balances:
Acquired banks (S)		13,307,853				1,353,801				1,281,901				1,317,564				389,794				380,484				14,625,417				1,743,595				1,662,385
Lone Star Bank (T)		1,016,128				735,828				645,440				59,109				50,230				47,559				1,075,237				786,058				692,999
Total		14,323,981				2,089,629				1,927,341				1,376,673				440,024				428,043				15,700,654		(U)		2,529,653				2,355,384
Acquired portfolio loan balances less loan marks	$	13,935,356			$	2,061,784			$	1,902,091			$	1,044,273			$	432,634			$	421,330			$	14,979,629			$	2,494,418			$	2,323,421

(Q)	Includes other MSA and non-MSA regions.
(R)	Represents a portion of total commercial real estate loans of $5.783 billion as of March 31, 2025.
(S)	Includes Bank Arlington, American State Bank, Community National Bank, First Federal Bank Texas, Coppermark Bank, First Victoria National Bank, The F&M Bank & Trust Company, Tradition Bank, LegacyTexas Bank and FirstCapital Bank.
(T)	The Merger was completed on April 1, 2024 and resulted in the addition of $1.075 billion in loans with related purchase accounting adjustments of $24.9 million at acquisition date, which were subject to subsequent fair value adjustments.
(U)	Actual principal balances acquired.

 

Prosperity Bancshares, Inc.® Financial Highlights (Unaudited) (Dollars in thousands)
	Three Months Ended
	Mar 31, 2025				Dec 31, 2024				Sep 30, 2024				Jun 30, 2024				Mar 31, 2024
Asset Quality
Nonaccrual loans	$	73,287			$	73,647			$	83,969			$	84,175			$	78,475
Accruing loans 90 or more days past due		91				2,189				20				322				3,035
Total nonperforming loans		73,378				75,836				83,989				84,497				81,510
Repossessed assets		29				4				177				113				97
Other real estate		8,012				5,701				5,757				4,960				2,204
Total nonperforming assets	$	81,419			$	81,541			$	89,923			$	89,570			$	83,811
Nonperforming assets:
Commercial and industrial (includes energy)	$	8,966			$	10,080			$	13,642			$	16,340			$	10,199
Construction, land development and other land loans		1,952				4,481				4,053				4,895				15,826
1-4 family residential (includes home equity)		42,481				44,824				36,660				33,935				30,206
Commercial real estate (includes multi-family residential)		12,257				18,861				32,803				31,776				23,720
Agriculture (includes farmland)		15,725				3,208				2,686				2,550				3,714
Consumer and other		38				87				79				74				146
Total	$	81,419			$	81,541			$	89,923			$	89,570			$	83,811
Number of loans/properties		363				368				346				349				319
Allowance for credit losses on loans	$	349,101			$	351,805			$	354,397			$	359,852			$	330,219
Net charge-offs (recoveries):
Commercial and industrial (includes energy)	$	330			$	405			$	3,309			$	2,777			$	283
Construction, land development and other land loans		(156)				294				378				109				(2)
1-4 family residential (includes home equity)		1,051				180				409				425				457
Commercial real estate (includes multi-family residential)		178				362				258				(381)				(17)
Agriculture (includes farmland)		—				5				(116)				214				23
Consumer and other		1,301				1,346				1,217				1,224				1,399
Total	$	2,704			$	2,592			$	5,455			$	4,368			$	2,143
Asset Quality Ratios
Nonperforming assets to average interest-earning assets		0.24	%			0.23	%			0.25	%			0.25	%			0.24	%
Nonperforming assets to loans and other real estate		0.37	%			0.37	%			0.40	%			0.40	%			0.39	%
Net charge-offs to average loans (annualized)		0.05	%			0.05	%			0.10	%			0.08	%			0.04	%
Allowance for credit losses on loans to total loans		1.59	%			1.59	%			1.58	%			1.61	%			1.55	%
Allowance for credit losses on loans to total loans, excluding Warehouse Purchase Program loans (G)		1.67	%			1.67	%			1.68	%			1.69	%			1.62	%

 

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

NOTES TO SELECTED FINANCIAL DATA

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

		Three Months Ended
		Mar 31, 2025		Dec 31, 2024		Sep 30, 2024		Jun 30, 2024		Mar 31, 2024
Reconciliation of diluted earnings per share to diluted earnings per share excluding merger related provision for credit losses, net of tax, merger related expenses, net of tax, FDIC special assessment, net of tax, and net gain on sale or write-up of securities, net of tax:
Diluted earnings per share (unadjusted)		$                     1.37		$                     1.37		$                     1.34		$                     1.17		$                     1.18
Net income		$                130,225		$                130,076		$                127,282		$                111,602		$                110,426
Merger related provision for credit losses, net of tax(V)		—		—		—		7,162		—
Merger related expenses, net of tax(V)		—		—		50		3,461		—
FDIC special assessment, net of tax(V)		—		—		—		2,807		—
Net gain on sale or write-up of securities, net of tax(V)		—		—		(177)		(8,472)		(235)
Net income excluding merger related provision for credit losses, net of tax, merger related expenses, net of tax, FDIC special assessment, net of tax, and net gain on sale or write-up of securities, net of tax(V):		$                130,225		$                130,076		$                127,155		$                116,560		$                110,191
Weighted average diluted shares outstanding		95,266		95,264		95,261		95,765		93,706
Merger related provision for credit losses, net of tax, per diluted common share(V)		$                       —		$                       —		$                       —		$                     0.07		$                       —
Merger related expenses, net of tax, per diluted common share(V)		$                       —		$                       —		$                       —		$                     0.04		$                       —
FDIC special assessment, net of tax, per diluted common share(V)		$                       —		$                       —		$                       —		$                     0.03		$                       —
Net gain on sale or write-up of securities, net of tax, per diluted common share(V)		$                       —		$                       —		$                       —		$                   (0.09)		$                       —
Diluted earnings per share excluding merger related provision for credit losses, net of tax, merger related expenses, net of tax, FDIC special assessment, net of tax, and net gain on sale or write-up of securities, net of tax:(V)		$                     1.37		$                     1.37		$                     1.34		$                     1.22		$                     1.18
Reconciliation of return on average assets to return on average assets excluding merger related provision for credit losses, net of tax, merger related expenses, net of tax, FDIC special assessment, net of tax, and net gain on sale or write-up of securities, net of tax:
Return on average assets (unadjusted)		1.34 %		1.31 %		1.28 %		1.12 %		1.13 %
Net income excluding merger related provision for credit losses, net of tax, merger related expenses, net of tax, FDIC special assessment, net of tax, and net gain on sale or write-up of securities, net of tax(V):		$                130,225		$                130,076		$                127,155		$                116,560		$                110,191
Average total assets		$           38,957,078		$           39,627,399		$           39,889,202		$           39,948,848		$           38,935,530
Return on average assets excluding merger related provision for credit losses, net of tax, merger related expenses, net of tax, FDIC special assessment, net of tax, and net gain on sale or write-up of securities, net of tax (F) (V)		1.34 %		1.31 %		1.28 %		1.17 %		1.13 %
(V) Calculated assuming a federal tax rate of 21.0%.
		Three Months Ended
		Mar 31, 2025		Dec 31, 2024		Sep 30, 2024		Jun 30, 2024		Mar 31, 2024
Reconciliation of return on average common equity to return on average common equity excluding merger related provision for credit losses, net of tax, merger related expenses, net of tax, FDIC special assessment, net of tax, and net gain on sale or write-up of securities, net of tax:
Return on average common equity (unadjusted)		6.94 %		7.00 %		6.93 %		6.10 %		6.20 %
Net income excluding merger related provision for credit losses, net of tax, merger related expenses, net of tax, FDIC special assessment, net of tax, and net gain on sale or write-up of securities, net of tax(V):		$                130,225		$                130,076		$                127,155		$                116,560		$                110,191
Average shareholders' equity		$             7,505,801		$             7,428,665		$             7,347,265		$             7,321,257		$             7,121,252
Return on average common equity excluding merger related provision for credit losses, net of tax, merger related expenses, net of tax, FDIC special assessment, net of tax, and net gain on sale or write-up of securities, net of tax (F) (V)		6.94 %		7.00 %		6.92 %		6.37 %		6.19 %
Reconciliation of return on average common equity to return on average tangible common equity:
Net income		$                130,225		$                130,076		$                127,282		$                111,602		$                110,426
Average shareholders' equity		$             7,505,801		$             7,428,665		$             7,347,265		$             7,321,257		$             7,121,252
Less: Average goodwill and other intangible assets		(3,567,421)		(3,573,197)		(3,576,630)		(3,542,427)		(3,458,659)
Average tangible shareholders' equity		$             3,938,380		$             3,855,468		$             3,770,635		$             3,778,830		$             3,662,593
Return on average tangible common equity (F)		13.23 %		13.50 %		13.50 %		11.81 %		12.06 %
Reconciliation of return on average common equity to return on average tangible common equity excluding merger related provision for credit losses, net of tax, merger related expenses, net of tax, and FDIC special assessment, net of tax:
Net income excluding merger related provision for credit losses, net of tax, merger related expenses, net of tax, FDIC special assessment, net of tax, and net gain on sale or write-up of securities, net of tax(V):		$                130,225		$                130,076		$                127,155		$                116,560		$                110,191
Average shareholders' equity		$             7,505,801		$             7,428,665		$             7,347,265		$             7,321,257		$             7,121,252
Less: Average goodwill and other intangible assets		(3,567,421)		(3,573,197)		(3,576,630)		(3,542,427)		(3,458,659)
Average tangible shareholders' equity		$             3,938,380		$             3,855,468		$             3,770,635		$             3,778,830		$             3,662,593
Return on average tangible common equity excluding merger related provision for credit losses, net of tax, merger related expenses, net of tax, FDIC special assessment, net of tax, and net gain on sale or write-up of securities, net of tax (F) (V)		13.23 %		13.50 %		13.49 %		12.34 %		12.03 %
Reconciliation of book value per share to tangible book value per share:
Shareholders' equity		$             7,517,061		$             7,438,495		$             7,361,249		$             7,283,444		$             7,104,544
Less: Goodwill and other intangible assets		(3,565,533)		(3,569,176)		(3,574,566)		(3,578,431)		(3,457,159)
Tangible shareholders' equity		$             3,951,528		$             3,869,319		$             3,786,683		$             3,705,013		$             3,647,385
Period end shares outstanding		95,258		95,275		95,261		95,262		93,525
Tangible book value per share		$                   41.48		$                   40.61		$                   39.75		$                   38.89		$                   39.00
Reconciliation of equity to assets ratio to period end tangible equity to period end tangible assets ratio:
Tangible shareholders' equity		$             3,951,528		$             3,869,319		$             3,786,683		$             3,705,013		$             3,647,385
Total assets		$           38,764,675		$           39,566,738		$           40,115,320		$           39,762,294		$           38,756,520
Less: Goodwill and other intangible assets		(3,565,533)		(3,569,176)		(3,574,566)		(3,578,431)		(3,457,159)
Tangible assets		$           35,199,142		$           35,997,562		$           36,540,754		$           36,183,863		$           35,299,361
Period end tangible equity to period end tangible assets ratio		11.23 %		10.75 %		10.36 %		10.24 %		10.33 %
		Three Months Ended
		Mar 31, 2025		Dec 31, 2024		Sep 30, 2024		Jun 30, 2024		Mar 31, 2024
Reconciliation of allowance for credit losses to total loans to allowance for credit losses on loans to total loans excluding Warehouse Purchase Program:
Allowance for credit losses on loans		$                349,101		$                351,805		$                354,397		$                359,852		$                330,219
Total loans		$           21,977,570		$           22,149,209		$           22,380,852		$           22,320,815		$           21,265,247
Less: Warehouse Purchase Program loans		(1,057,893)		(1,080,903)		(1,228,706)		(1,081,403)		(864,924)
Total loans less Warehouse Purchase Program		$           20,919,677		$           21,068,306		$           21,152,146		$           21,239,412		$           20,400,323
Allowance for credit losses on loans to total loans excluding Warehouse Purchase Program		1.67 %		1.67 %		1.68 %		1.69 %		1.62 %
Reconciliation of efficiency ratio to efficiency ratio excluding net gains and losses on the sale, write-down  or write-up of assets and securities:
Noninterest expense		$                140,301		$                141,545		$                140,338		$                152,842		$                135,848
Net interest income		$                265,382		$                267,774		$                261,691		$                258,786		$                238,244
Noninterest income		41,301		39,837		41,099		46,003		38,870
Less: net (loss) gain on sale or write-down of assets		(235)		584		3,178		(903)		(35)
Less: net gain on sale or write-up of securities		—		—		224		10,723		298
Noninterest income excluding net gains and losses on the sale, write-down or write-up of assets and securities		41,536		39,253		37,697		36,183		38,607
Total income excluding net gains and losses on the sale, write-down or write-up of assets and securities		$                306,918		$                307,027		$                299,388		$                294,969		$                276,851
Efficiency ratio, excluding net gains and losses on the sale, write-down or write-up of assets and securities		45.71 %		46.10 %		46.87 %		51.82 %		49.07 %
Reconciliation of efficiency ratio to efficiency ratio, excluding net gains and losses on the sale, write-down or write-up of assets and securities, merger related expenses and FDIC special assessment:
Noninterest expense		$                140,301		$                141,545		$                140,338		$                152,842		$                135,848
Less: merger related expenses		—		—		63		4,381		—
Less: FDIC special assessment		—		—		—		3,554		—
Noninterest expense excluding merger related expenses and FDIC special assessment		$                140,301		$                141,545		$                140,275		$                144,907		$                135,848
Net interest income		$                265,382		$                267,774		$                261,691		$                258,786		$                238,244
Noninterest income		41,301		39,837		41,099		46,003		38,870
Less: net (loss) gain on sale or write down of assets		(235)		584		3,178		(903)		(35)
Less: net gain on sale or write-up of securities		—		—		224		10,723		298
Noninterest income excluding net gains and losses on the sale, write-down or write-up of assets and securities		41,536		39,253		37,697		36,183		38,607
Total income excluding net gains and losses on the sale, write-down or write-up of assets and securities		$                306,918		$                307,027		$                299,388		$                294,969		$                276,851
Efficiency ratio, excluding net gains and losses on the sale, write-down or write-up of assets and securities, merger related expenses and FDIC special assessment		45.71 %		46.10 %		46.85 %		49.13 %		49.07 %

 

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SOURCE Prosperity Bancshares, Inc.

FAQ

What was Prosperity Bancshares' (PB) earnings per share in Q1 2025?

Prosperity Bancshares reported earnings per share of $1.37 in Q1 2025, representing a 16.1% increase from $1.18 in Q1 2024.

How much did Prosperity Bancshares' (PB) net income grow in Q1 2025?

Net income grew by 17.9% to $130.2 million in Q1 2025 compared to $110.4 million in Q1 2024.

What is Prosperity Bancshares' (PB) current net interest margin?

The net interest margin increased to 3.14% in Q1 2025, up 35 basis points from Q1 2024.

How much are Prosperity Bancshares' (PB) noninterest-bearing deposits?

Noninterest-bearing deposits were $9.7 billion, representing 34.5% of total deposits.

What is Prosperity Bancshares' (PB) asset quality status?

Asset quality remains strong with nonperforming assets at 0.24% of average interest-earning assets and an allowance for credit losses of $386.7 million.