Prosperity Bancshares, Inc. · NYSE:PB
Prosperity Bancshares — Q4 2025 Earnings Presentation
28 slides from Prosperity Bancshares's earnings presentation, Jan 28, 2026
Slide 1: Investor Presentation Fourth Quarter 2025
Investor Presentation Fourth Quarter 2025
Slide 2: Cautionary Note on Forward Looking Statements
Cautionary Note on Forward Looking Statements This presentation, and the remarks by Prosperity’s management on the conference call may contain statements regarding the proposed transaction between Prosperity Bancshares, Inc. (“Prosperity”) and Stellar Bancorp, Inc. (“Stellar”); future financial and
Slide 3: Important Information
Important Information Additional Information about the Transaction and Where to Find It Prosperity intends to file with the SEC the Registration Statement on Form S-4 to register the shares of Prosperity common stock to be issued to the shareholders of Stellar in connection with the proposed transac
Slide 4: Fourth Quarter Highlights
Fourth Quarter Highlights • Net income of $139.9 million and earnings per share (diluted) of $1.49 for the three months ended December 31, 2025, an increase of 8.8% compared to the fourth quarter 2025 • Assets of $38.5 billion, total loans of $21.8 billion, and deposits of $28.5 billion at December
Slide 5: Strong Presence in Texas and Oklahoma
Strong Presence in Texas and Oklahoma • A Texas-based financial holding company with $38.5 billion in total assets • Prosperity has been ranked as one of Forbes America’s Best Banks since the list’s inception in 2010, and was ranked in the Top 10 for 14 consecutive years Oklahoma INTERST 44 TE Tulsa
Slide 6: Balance Sheet Summary
Balance Sheet Summary Data as of 12/31/2025 Loans $21.8 Bn Deposits $28.5 Bn Assets $38.5 Bn 10 Year CAGR (1) Loans 8.7% Deposits 4.9% Assets 5.7% Assets Deposits Total Loans Equity 6 Source: Company Documents (1) Represents the Compound Annual Growth Rate from 12/31/2014 – 12/31/2024
Slide 7: Net Income
Net Income Note: Net income includes the following ($ in thousands) Provision for Credit $7,560 $24,000 $14,325 $16,350 $4,300 $20,000 - - $18,540 $9,066 - - - Losses Loan Discount $52,122 $38,970 $21,906 $13,909 $28,045 $91,341 $39,278 $7,401 $5,566 $17,490 $12,402 $2,855 $3,134 Accretion Net Incom
Slide 8: Earnings Per Share
Earnings Per Share Note: Net income includes the following ($ in thousands) Provision for Credit $7,560 $24,000 $14,325 $16,350 $4,300 $20,000 - - $18,540 $9,066 - - - Losses Loan Discount $52,122 $38,970 $21,906 $13,909 $28,045 $91,341 $39,278 $7,401 $5,566 $17,490 $12,402 $2,855 $3,134 Accretion E
Slide 9: Net Interest Margin
Net Interest Margin Net Interest Margin (Tax Equivalent) Net Interest Margin (Excluding Purchase Accounting Adjustments) 9 Source: Company Documents
Slide 10: Acquisitions & Efficiency Ratio
Acquisitions & Efficiency Ratio ($’s in millions) % of Assets Acquired 0.0% 2.5% 0.0% 0.0% 31.3% 0.0% 0.0% 0.0% 5.5% 3.5% 0.0% 0.0% 0.0% (1) (2) Total Assets Excluding Acquisitions Total Assets Acquired Efficiency Ratio (3) Efficiency Ratio (Excluding Non-Recurring Charges) Source: Company Documents
Slide 11: Return on Average Tangible Common Equity
Return on Average Tangible Common Equity (1) (1) ROATCE Tangible Common Equity (2) ROATCE (Excluding Non-Recurring Charges) (1) Interim periods shown on an annualized basis 11 (2) Excludes after-tax merger related provision and expenses related to recent acquisitions, gain on Visa Class B-1 stock ex
Slide 12: Return on Average Assets
Return on Average Assets (1) (1) (2) ROAA ROAA (Excluding Non-Recurring Charges) (1) Interim periods shown on an annualized basis 12 (2) Excludes after-tax merger related provision and expenses related to recent acquisitions, gain on Visa Class B-1 stock exchange net of investment securities sales a
Slide 13: Deposit Composition
Deposit Composition As of December 31, 2025 ($ in millions) (1) $mm Cost (%) Noninterest-Bearing Demand $9,468 0.00% Interest-Bearing Demand $5,366 0.75% Money Market & Savings $9,131 1.96% CDs & Other Time $4,518 3.58% Total Deposits: $28.5Bn Total Cost of Deposits: 1.34% (1) Cost of Interest-Beari
Slide 14: Loan Growth
Loan Growth Loans (Excluding Warehouse Purchase Program) Loan / Deposit Ratio (Excluding WPP) Warehouse Purchase Program (WPP) Loan / Deposit Ratio (Including WPP) 14 Source: Company Documents
Slide 15: Loan Portfolio Overview
Loan Portfolio Overview As of December 31, 2025 ($ in millions) Loan Portfolio by Category & Geography Loans by Rate Structure ~4.1yr Avg. Life Loans By Area Amount (2)(4) % of Total Total Loans: $21.8Bn Bryan / College Station $988 4.8% Central Oklahoma $552 2.7% Loans HFI (Excl. WPP): $20.5Bn Cent
Slide 16: Loan Portfolio Detail
Loan Portfolio Detail As of December 31, 2025 ($ in millions) Portfolio Commentary Commercial Real Estate Detail ($ in millions) • Loan portfolio is diversified across the Bank’s market areas and by underlying collateral type Retail $1,232 21% Industrial $1,222 21% Other $979 17% • CRE and construct
Slide 17: Changes to Allowance for Credit Losses
Changes to Allowance for Credit Losses ($ in millions) $377.3 million Total Allowance for Credit Losses and Unfunded Commitments $371.4 million 1.64% ACL to Total 1.63% ACL to Total Loans (1) Loans (1) Allowance for Net charge-offs PCD recoveries Outstanding Net decrease Allowance for Credit
Slide 18: Asset Quality
Asset Quality NPAs / Loans + OREO (1) UBPR Peer Group Prosperity Bank Source: Company Documents & Uniform Bank Performance Report 18 Note: NPAs include loans past due 90 days and still accruing (1) UBPR = Uniform Bank Performance Report; Peer Group 2 (113 banks) – Insured commercial banks having ass
Slide 19: Asset Quality: Net Charge-Offs / Average Loans
Asset Quality Net Charge-Offs / Average Loans (2) (2) ($ in millions) Recoveries Charge-Offs Net PCD Net (1) UBPR Peer Group Prosperity Bank (3) Non-Acquired Loan Charge-Offs Acquired Loan Charge-Offs Pre-CECL Acquired Loan Charge-Offs Post-CECL (3) Source: Company Documents & Uniform Bank Performan
Slide 20: Securities Portfolio Detail
Securities Portfolio Detail As of December 31, 2025 ($ in millions) $mm Mortgage-Backed Securities $10,085 Collateralized Mortgage Obligations $431 States & Political Subdivisions $69 Other Securities $22 U.S. Government Agency Securities $6 Total Securities: $10.6Bn Yield on Securities: 2.17% (1) 9
Slide 21: Total Return Performance
Total Return Performance IPO (November 12, 1998) to December 31, 2025 2,500 $100,000 invested in Prosperity’s IPO 2,250 on 11/12/98 was worth $1,945,697 on 12/31/25 2,000 1,750 1,500 1,250 1,000 750 500 250 0 11/12/98 11/12/01 11/12/04 11/12/07 11/12/10 11/12/13 11/12/16 11/12/19 11/12/22 11/12/25 P
Slide 22: Dividend History
Dividend History (a) (Declared) 22 (a) 2024 dividend consists of $0.58 per share declared in Q1 2024, 2Q 2024, 3Q 2024 and $0.60 per share declared in 4Q 2025
Slide 23: Presence in Fast-Growing Markets
Presence in Fast-Growing Markets Positioned in Strong Markets Top 15 Fastest Growing MSAs in the U.S. (1) 2026- 2031 • Texas ranked second nationwide on Prosperity Proj. Population Forbes’ 2026 America’s Best Prosperity Deposits Growth Companies list, with 52 honorees Metropolitan Statistical Area P
Slide 24: Corporate Relocations to Texas
California Aatonomy Corporate Relocations to Texas AccentCare Active Networks AECOM AEND Industries, Inc. Allied Electronic Recycling Corporate Relocations to Texas (2004 – Present) ALL-Q-TELL Corp. AllyMe Group, Inc. Amazing Magnets Ameriflight LLC Anything Liquid Manufacturing Aviat Networks, Inc.
Slide 25: Houston Market Highlights
Houston Market Highlights Market Highlights Houston Franchise • The Houston MSA is the 5th largest in the United States by population with nearly 8.0 million residents – Population is expected to grow 7.3% from 2026 – 2031 (compared to the 2.6% projected growth for the U.S.) – Current Median Househo
Slide 26: Dallas/Ft. Worth Market Highlights
Dallas/Ft. Worth Market Highlights Market Highlights Dallas / Ft. Worth Franchise • The Dallas/Ft. Worth MSA is the 4th largest in the United States by population with nearly 8.6 million residents – Population is expected to grow 7.3% from 2026 – 2031 (compared to the 2.6% projected growth for the U
Slide 27: Austin Market Highlights
Austin Market Highlights Market Highlights Austin Franchise • The Austin MSA is the 25th largest in the United States by population with over 2.6 million residents – Population is expected to grow 9.3% from 2026 – 2031 (compared to the 2.6% projected growth for the U.S.) – Median Household Income is
Slide 28: Contact Information
Contact Information Corporate Headquarters Investor Contacts Prosperity Bank Plaza David Zalman 4295 San Felipe Chairman & CEO Houston Texas 77027 979-543-2200 david.zalman@prosperitybankusa.com 281-269-7199 Telephone Cullen Zalman EVP – Banking & Corporate Activities 281-269-7176 cullen.zalman@pros
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