Prosperity Bancshares, Inc. · NYSE:PB
Prosperity Bancshares — Q1 2025 Earnings Presentation
27 slides from Prosperity Bancshares's earnings presentation, Apr 23, 2025
Slide 1: Investor Presentation First Quarter 2025
Investor Presentation First Quarter 2025
Slide 2: “Safe Harbor” Statement
“Safe Harbor” Statement Under the Private Securities Litigation Reform Act of 1995 “Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: This presentation contains, and the remar ks by Prosperity’s management on the conference call may contain, forward-looking statement
Slide 3: First Quarter Highlights
First Quarter Highlights • Net income of $130.2 million and earnings per share (diluted) of $1.37 for the three months ended March 31, 2025, an increase of 16.1% compared to the first quarter 2024 • Assets of $38.8 billion, total loans of $22.0 billion, and deposits of $28.0 billion at March 31, 202
Slide 4: Strong Presence in Texas and Oklahoma
Strong Presence in Texas and Oklahoma • A Texas-based financial holding company with $38.8 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 ET 44 INTER
Slide 5: Balance Sheet Summary
Balance Sheet Summary Data as of 03/31/2025 40,000 Loans $22.0 Bn ,000 Deposits $28.0 Bn Assets $38.8 Bn 5,000 ,000 10 Year CAGR (1) 0,000 Loans 9.1% ,000 Deposits 4.8% Assets 6.3% 25,000 5,000 20,000 4,000 15,000 ,000 10,000 2,000 5,000 1,000 0 0 2014 2015 201 201 201 2019 2020 2021 2022 202 2024 4
Slide 6: Net Income
Net Income 00.0 500.0 4 9.4 4 . 419. 411.2 400.0 00.0 200.0 100.0 0.0 2014 2015 201 201 201 2019 2020 2021 2022 202 2024 4 24 1 25 Note: Net income includes the following ($ in thousands) Provision for Credit $18,275 $7,560 $24,000 $14,325 $16,350 $4,300 $20,000 - - $18,540 $9,066 - - Losses Loan Di
Slide 7: Earnings Per Share
Earnings Per Share .00 5.05 4. 4.51 4.4 5.00 4.00 .00 2.00 1.00 0.00 2014 2015 201 201 201 2019 2020 2021 2022 202 2024 4 24 1 25 Note: Net income includes the following ($ in thousands) Provision for Credit $18,275 $7,560 $24,000 $14,325 $16,350 $4,300 $20,000 - - $18,540 $9,066 - - Losses Loan Dis
Slide 8: Net Interest Margin
Net Interest Margin .90 . 0 .50 . 0 .10 2.90 2. 0 2.50 2014 2015 201 201 201 2019 2020 2021 2022 202 2024 4 24 1 25 Net Interest Margin (Tax Equivalent) Net Interest Margin (Excluding Purchase Accounting Adjustments) 8 Source: Company Documents
Slide 9: Acquisitions & Efficiency Ratio
Acquisitions & Efficiency Ratio ’ 45,000 100.0 9,5 9,5 , 5 90.0 40,000 , 4 ,54 , 90 4,059 0.0 5,000 2,1 0.0 0,000 0.0 25,000 22, 9 50. 22,0 22, 1 22,5 4 . 4 .4 21,50 50.0 20,000 40.0 15,000 0.0 10,000 20.0 5,000 10.0 0 0.0 2014 2015 201 201 201 2019 2020 2021 2022 202 2024 4 24 1 25 % of Assets Acqu
Slide 10: Return on Average Tangible Common Equity
Return on Average Tangible Common Equity 40.00 4,000 0.00 ,000 20.00 2,000 10.00 11. 12. 1,000 0.00 0 (1) (1) 2014 2015 201 201 201 2019 2020 2021 2022 202 2024 4 24 1 25 ROATCE Tangible Common Equity ROATCE (Excluding Non-Recurring Charges) (2) (1) Interim periods shown on an annualized basis 10 (2
Slide 11: Return on Average Assets
Return on Average Assets 2.00 1. 5 1.50 1.25 1.21 1.0 1.00 0. 5 (1) (1) 2014 2015 201 201 201 2019 2020 2021 2022 202 2024 4 24 1 25 ROAA ROAA (Excluding Non-Recurring Charges)(2) (1) Interim periods shown on an annualized basis 11 (2) Excludes after-tax merger related provision and expenses related
Slide 12: Deposit Composition
Deposit Composition As of March 31, 2025 ($ in millions) $mm Cost (%)(1) C s Other Noninterest-Bearing Demand $9,676 0.00% Time 15. Interest-Bearing Demand $4,932 0.70% Noninterest Bearing emand Money Market & Savings $9,043 2.06% 4.5 CDs & Other Time $4,376 3.75% Money Market Savings 2. Total Depos
Slide 13: Loan Growth
Loan Growth 100.0 22,000 1,0 1 1,0 1 1,05 22 19, 00 21,0 21,0 20,920 92.5 20, 5 2, 42 41 1,55 1, 5.0 1 , 00 1 ,099 .9 .0 .0 .4 1 ,29 1 ,405 1 , 40 .5 15,400 .9 1 ,200 4.0 .0 0.0 0.5 11,000 2.5 , 00 55.0 , 00 4 .5 4,400 40.0 2,200 2.5 0 25.0 2014 2015 201 201 201 2019 2020 2021 2022 202 2024 4 24 1 2
Slide 14: Loan Portfolio Overview
Loan Portfolio Overview As of March 31, 2025 ($ in millions) Loan Portfolio by Category & Geography Loans by Rate Structure Comm. R.E. 5, 2 . Floa ng C Energy Construc on 1,915 510 2.1 2, 45 . 2. Fixed Consumer 12.9 . ~4.3yr Other Agriculture 9 ( nc. Farm) Avg. Life 1. 1,014 Home Equity 4. 1 4 Famil
Slide 15: Loan Portfolio Detail
Loan Portfolio Detail As of March 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 t er Retail $1,402 24% • CRE and construction loans conservatively om Industr
Slide 16: Changes to Allowance for Credit Losses
Changes to Allowance for Credit Losses ($ in millions) $389.5 million Total Allowance for Credit Losses and Unfunded Commitments $386.7 million 1.67% ACL to Total 1.67% ACL to Total Loans (1) Loans (1) Allowance for Allowance for ▪ Net charge-offs ▪ PCD recoveries ▪ Outstanding ▪ Net increased Credi
Slide 17: Asset Quality
Asset Quality NPAs / Loans + OREO .00 5.00 4.00 .00 2.00 1.00 0.00 200 200 2009 2010 2011 2012 201 2014 2015 201 201 201 2019 2020 2021 2022 202 2024 4 24 1 25 UBPR Peer Group (1) Prosperity Bank Source: Company Documents & Uniform Bank Performance Report 17 Note: NPAs include loans past due 90 days
Slide 18: Asset Quality: Net Charge-Offs / Average Loans
Asset Quality Net Charge-Offs / Average Loans 1.90 1.40 0.90 0.40 (2) (2) 0.10 ($ in millions) Recoveries Charge-Offs 200 200 2009 2010 2011 2012 201 2014 2015 201 201 201 2019 2020 2021 2022 202 2024 4 24 1 25 1.9 29. .0 Net 1 .9 1 .9 20.1 14. 5. . 5.2 5.1 2.5 4. .9 15. 14.0 . 4. 2. 2. 200 200 2009
Slide 19: Securities Portfolio Detail
Securities Portfolio Detail As of March 31, 2025 ($ in millions) Other Securi es 0.2 .S. overnment Agency Securi es $mm 0.1 Mortgage-Backed Securities $10,226 States Poli cal Mortgage Subdivisions Collateralized Mortgage Obligations $450 Backed Securi es 0. 94. States & Political Subdivisions $83 Co
Slide 20: Total Return Performance
Total Return Performance IPO (November 12, 1998) to March 31, 2025 2,500 n e te n Pro er ty’ P 2,250 on 11/12/98 was worth $1,958,526 on 3/31/25 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 PB (+1,858.5%) S&P 500 (+715.5
Slide 21: 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 o r arter en H tory $0.72 $0.75 $0.64 0.5 0.5 0.5 $0.57 0.5 $0.51 $0.46 $0.50 $0.41 $0.31 $0.35 $0.25 $0
Slide 22: Presence in Fast-Growing Markets
Presence in Fast-Growing Markets Positioned in Strong Markets Top 15 Fastest Growing MSAs in the U.S. (1) 2025- 2030 • As of November 2024, Texas led all Prosperity Proj. Population states for jobs gained over the Prosperity Deposits Growth month and over the year, setting Metropolitan Statistical A
Slide 23: Corporate Relocations to Texas
Calif ornia Aat onom y Corporate Relocations to Texas AccentCar e Active Networ ks AEC OM AEN D Indus tr ies, Inc. Allied Elect ronic Recyclin g Corporate Relocations to Texas (2004 – Present) ALL-Q-TELL C orp. AllyM e Gr oup, In c. Am azin g Magnet s Am erif light LLC An yt hing Liquid M anufactu r
Slide 24: 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 7.7 million residents – Population is expected to grow 6.1% from 2025 – 2030 (compared to the 2.5% projected growth for the U.S.) – Median Household Incom
Slide 25: Dallas/Ft. Worth Market Highlights
Dallas/Ft. Worth Market Highlights Market Highlights Dallas / Ft. Worth Franchise • The Dallas/Ft. Worth MSA is the 4 th largest in the United States by population with over 8.3 million residents – Population is expected to grow 7.1% from 2025 – 2030 (compared to the 2.5% projected growth for the U.
Slide 26: Austin Market Highlights
Austin Market Highlights Market Highlights Austin Franchise • The Austin MSA is the 25 th largest in the United States by population with nearly 2.6 million residents – Population is expected to grow 8.4% from 2025 – 2030 (compared to INTERSTATE 35 the 2.5% projected growth for the U.S.) – Median Ho
Slide 27: 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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