Prosperity Bancshares, Inc. · NYSE:PB
Prosperity Bancshares — Q3 2025 Earnings Presentation
28 slides from Prosperity Bancshares's earnings presentation, Oct 29, 2025
Slide 1: Investor Presentation Third Quarter 2025
Investor Presentation Third Quarter 2025
Slide 2: Cautionary Note on Forward Looking Statements
Cautionary Note on Forward Looking Statements This presentation contains statements regarding the proposed transactions between (1) Prosperity Bancshares, Inc. (“Prosperity”) and Southwest Bancshares, Inc. (“Southwest”) and (2) Prosperity and American Bank Holding Corporation (“American”); future fi
Slide 3: Important Information
Important Information Additional Information about the Transaction and Where to Find It Prosperity intends to file with the SEC the Prosperity/Southwest Registration Statement on Form S-4 to register the shares of Prosperity common stock to be issued to the shareholders of Southwest in connection wi
Slide 4: Third Quarter Highlights
Third Quarter Highlights • Net income of $137.6 million and earnings per share (diluted) of $1.45 for the three months ended September 30, 2025, an increase of 8.2% compared to the third quarter 2024 • Assets of $38.3 billion, total loans of $22.0 billion, and deposits of $27.8 billion at September
Slide 5: Strong Presence in Texas and Oklahoma
Strong Presence in Texas and Oklahoma • A Texas-based financial holding company with $38.3 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 09/30/2025 Loans $22.0 Bn Deposits $27.8 Bn Assets $38.3 Bn 10 Year CAGR (1) Loans 9.1% Deposits 4.8% Assets 6.3% Assets Deposits Total Loans Equity 6 Source: Company Documents (1) Represents the Compound Annual Growth Rate from 12/31/2014 – 12/31/2024
Slide 7: Net Income
Net Income Note: Net income includes the following ($ in thousands) Provision for Credit $18,275 $7,560 $24,000 $14,325 $16,350 $4,300 $20,000 - - $18,540 $9,066 - — Losses Loan Discount $95,875 $52,122 $38,970 $21,906 $13,909 $28,045 $91,341 $39,278 $7,401 $5,566 $17,490 $3,124 $2,855 Accretion Net
Slide 8: Earnings Per Share
Earnings Per Share Note: Net income includes the following ($ in thousands) Provision for Credit $18,275 $7,560 $24,000 $14,325 $16,350 $4,300 $20,000 - - $18,540 $9,066 - — Losses Loan Discount $95,875 $52,122 $38,970 $21,906 $13,909 $28,045 $91,341 $39,278 $7,401 $5,566 $17,490 $3,124 $2,855 Accre
Slide 9: Net Interest Margin
Net Interest Margin Net Interest Margin (Tax Equivalent) Net Interest Margin (Excluding Purchase Accounting Adjustments) 9 Source: Company Documents
Slide 10: Acquisitions & Efficiency Ratio
Acquisitions & Efficiency Ratio ($’s in millions) % of Assets Acquired 11.2% 0.0% 2.5% 0.0% 0.0% 31.3% 0.0% 0.0% 0.0% 5.5% 3.5% 0.0% 0.0% (1) (2) Total Assets Excluding Acquisitions Total Assets Acquired Efficiency Ratio (3) Efficiency Ratio (Excluding Non-Recurring Charges) Source: Company Document
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 September 30, 2025 ($ in millions) (1) $mm Cost (%) Noninterest-Bearing Demand $9,522 0.00% Interest-Bearing Demand $4,766 0.76% Money Market & Savings $9,019 2.07% CDs & Other Time $4,475 3.60% Total Deposits: $27.8Bn Total Cost of Deposits: 1.38% (1) Cost of Interest-Bear
Slide 14: Loan Growth
Loan Growth Loans (Excluding Warehouse Purchase Program) Loan / Deposit Ratio (Excluding WPP) Warehouse Purchase Program (WPP) Loan / Deposit Ratio (Including WPP) 14 Source: Company Documents
Slide 15: Loan Portfolio Overview
Loan Portfolio Overview As of September 30, 2025 ($ in millions) Loan Portfolio by Category & Geography Loans by Rate Structure ~4.1yr Avg. Life Total Loans: $22.0Bn (2)(4) Loans By Area Amount % of Total Bryan / College Station $985 4.8% Central Oklahoma Central Texas $547 $2,520 2.6% 12.2% Loans H
Slide 16: Loan Portfolio Detail
Loan Portfolio Detail As of September 30, 2025 ($ 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 $1,386 24% Industrial $1,240 21% Other $932 16% • CRE and construc
Slide 17: Changes to Allowance for Credit Losses
Changes to Allowance for Credit Losses ($ in millions) $383.7 million Total Allowance for Credit Losses and Unfunded Commitments $377.3 million 1.66% ACL to Total 1.64% ACL to Total Loans (1) Loans (1) Allowance for Allowance for Net charge-offs PCD recoveries Outstanding Net increased Credi
Slide 18: Asset Quality
Asset Quality NPAs / Loans + OREO (1) UBPR Peer Group Prosperity Bank Source: Company Documents & Uniform Bank Performance Report 18 Note: NPAs include loans past due 90 days and still accruing (1) UBPR = Uniform Bank Performance Report; Peer Group 2 (113 banks) – Insured commercial banks having ass
Slide 19: Asset Quality: Net Charge-Offs / Average Loans
Asset Quality Net Charge-Offs / Average Loans (2) (2) ($ 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 September 30, 2025 ($ in millions) $mm Mortgage-Backed Securities $9,686 Collateralized Mortgage Obligations $448 States & Political Subdivisions $70 Other Securities $22 U.S. Government Agency Securities $6 Total Securities: $10.2Bn Yield on Securities: 2.19% (1) 9
Slide 21: Total Return Performance
Total Return Performance IPO (November 12, 1998) to September 30, 2025 $100,000 invested in Prosperity’s IPO on 11/12/98 was worth $1,852,555 on 9/30/2025 21 Source: S&P Global. Market data as of 9/30/2025.
Slide 22: Dividend History
Dividend History $2.50 (a) $2.26 $2.21 $2.25 Compound Annual Growth Rate $2.11 from 2003 - 2024 was 11.1% $1.99 $2.00 $1.87 $1.69 $1.75 $1.49 $1.50 $1.38 $1.24 $1.25 $1.12 $0.99 $1.00 $0.89 $0.80 $0.72 $0.75 $0.64 $0.57 $0.51 $0.46 $0.50 $0.41 $0.35 $0.31 $0.25 $0.25 (Declared) $0.00 2003 2004 2005
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 • As of August 2025, Texas led all Prosperity Proj. Population states for jobs gained over the Prosperity Deposits Growth month and over the year, setting Metropolitan Statistical Are
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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