8-K
Prosperity Bancshares Inc (PB)
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): April 23, 2025
PROSPERITY BANCSHARES, INC.
(Exact name of registrant as specified in its charter)
| Texas | 001-35388 | 74-2331986 |
|---|---|---|
| (State or other jurisdiction<br><br>of incorporation) | (Commission<br><br>File Number) | (IRS Employer<br><br>Identification No.) |
4295 San Felipe
Houston, Texas 77027
(Address of principal executive offices including zip code)
Registrant's telephone number, including area code: (281) 269-7199
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common stock, par value $1.00 per share | PB | New York Stock Exchange, Inc. |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On April 23, 2025, Prosperity Bancshares, Inc. publicly disseminated a press release announcing its financial results for the first quarter ended March 31, 2025. A copy of the press release is furnished as Exhibit 99.1 hereto and incorporated herein by reference.
As provided in General Instruction B.2 to Form 8-K, the information furnished in Item 2.02 and Exhibit 99.1 of this Current Report on Form 8-K shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, and such information shall not be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
- Exhibits. The following is furnished as an exhibit to this Current Report on Form 8-K:
| Exhibit<br><br>Number | Description of Exhibit |
|---|---|
| 99.1 | Press Release issued by Prosperity Bancshares, Inc. dated April 23, 2025. |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| PROSPERITY BANCSHARES, INC.<br><br>(Registrant) | ||
|---|---|---|
| Dated: April 23, 2025 | By: | /s/ Charlotte M. Rasche |
| Charlotte M. Rasche | ||
| Executive Vice President and General Counsel |
EX-99.1
Exhibit 99.1
| PRESS RELEASE | For more information contact: |
|---|---|
| Prosperity Bancshares, Inc.® | Cullen Zalman |
| Prosperity Bank Plaza | Executive Vice President – Banking and Corporate Activities |
| 4295 San Felipe | 281.269.7199 |
| Houston, Texas 77027 | cullen.zalman@prosperitybankusa.com |
FOR IMMEDIATE RELEASE
PROSPERITY BANCSHARES, INC.®
REPORTS FIRST QUARTER
2025 EARNINGS
- First quarter earnings per share (diluted) of $1.37, an increase of 16.1% compared to first quarter 2024
- First quarter net income increased 17.9% to $130.2 million compared to first quarter 2024
- First quarter net interest margin increased 35 basis points to 3.14% compared to first quarter 2024
- Noninterest-bearing deposits of $9.7 billion, representing 34.5% of total deposits
- Borrowings decreased $500.0 million during first quarter 2025
- Allowance for credit losses on loans and on off-balance sheet credit exposure of $386.7 million and allowance for credit losses on loans to total loans, excluding Warehouse Purchase Program, of 1.67%(1)
- Nonperforming assets remain low at 0.24% of first quarter average interest-earning assets
- Return (annualized) on first quarter average assets of 1.34% and average tangible common equity of 13.23%(1)
- Named in Forbes’ 2025 America’s Best Banks
- Ranked among “America’s Best Regional Banks” by Newsweek in 2025
- Named Best Overall Bank in Texas by Money for 2025
HOUSTON, April 23, 2025. 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.
______________
- 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.
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“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
______________
- 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.
- 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.
- 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.
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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.
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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.
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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.
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| 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 |
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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.
Page 7
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.
Page 8
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.
Page 9
Prosperity Bancshares, Inc.®
Financial Highlights (Unaudited)
(Dollars in thousands)
| YIELD ANALYSIS | Three Months Ended | ||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Mar 31, 2025 | Dec 31, 2024 | Mar 31, 2024 | |||||||||||||||||||
| Average<br>Balance | Interest<br>Earned/<br>Interest<br>Paid | Average<br>Yield/<br>Rate | (L) | Average<br>Balance | Interest<br>Earned/<br>Interest<br>Paid | Average<br>Yield/<br>Rate | (L) | Average<br>Balance | Interest<br>Earned/<br>Interest<br>Paid | Average<br>Yield/<br>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<br> (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.
Page 10
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.
Page 11
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 |
Page 12
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 | 1,962,111 | 1,970,844 | 2,023,531 | 1,932,534 |
| Warehouse purchase program | 1,057,893 | 1,080,903 | 1,228,706 | 1,081,403 | 864,924 |
| Construction, land development and other land loans | 2,845,082 | 2,859,281 | 2,814,521 | 2,828,372 | 2,876,588 |
| 1-4 family residential | 7,576,350 | 7,581,450 | 7,557,858 | 7,496,485 | 7,331,251 |
| Home equity | 896,529 | 906,139 | 919,676 | 930,428 | 950,169 |
| Commercial real estate (includes multi-family residential) | 5,783,410 | 5,800,985 | 5,869,687 | 5,961,884 | 5,631,460 |
| Agriculture (includes farmland) | 1,013,960 | 1,033,546 | 1,033,224 | 1,037,361 | 813,092 |
| Consumer and other | 378,821 | 378,817 | 413,548 | 340,611 | 326,915 |
| Energy | 510,401 | 545,977 | 572,788 | 620,740 | 538,314 |
| 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 | 9,798,438 | 9,811,361 | 9,706,505 | 9,526,535 |
| Interest-bearing DDA | 4,931,769 | 5,182,035 | 4,800,758 | 4,762,730 | 4,867,247 |
| Money market | 6,339,509 | 6,229,022 | 6,166,792 | 6,180,769 | 6,134,221 |
| Savings | 2,703,736 | 2,685,496 | 2,707,982 | 2,765,197 | 2,830,117 |
| Certificates and other time deposits | 4,375,870 | 4,486,347 | 4,600,718 | 4,517,885 | 3,817,398 |
| 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% |
All values are in US Dollars.
Page 13
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 <br>Acquisition <br>Date | Balance at<br>Dec 31,<br>2024 | Balance at<br>Mar 31,<br>2025 | Balance at <br>Acquisition<br>Date | Balance at<br>Dec 31,<br>2024 | Balance at<br>Mar 31,<br>2025 | Balance at <br>Acquisition<br>Date | Balance at<br>Dec 31,<br>2024 | Balance at<br>Mar 31,<br>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.
Page 14
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 | % |
Page 15
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%.
Page 16
| 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 | % |
Page 17
| 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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