Prosperity Bancshares, Inc. · NYSE:PB
Prosperity Bancshares — Q2 2025 Earnings Presentation
27 slides from Prosperity Bancshares's earnings presentation, Jul 23, 2025
Slide 1: Investor Presentation Second Quarter 2025
Investor Presentation Second Quarter 2025
Slide 2: Cautionary Note on Forward Looking Statements
Cautionary Note on Forward Looking Statements “Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: This presentation contains, and the remarks by Prosperity’s management on the conference call may contain, forward-looking statements within the meaning of the federal se
Slide 3: Second Quarter Highlights
Second Quarter Highlights • Net income of $135.2 million and earnings per share (diluted) of $1.42 for the three months ended June 30, 2025, an increase of 21.1% compared to the second quarter 2024 • Assets of $38.4 billion, total loans of $22.2 billion, and deposits of $27.5 billion at June 30, 202
Slide 4: Strong Presence in Texas and Oklahoma
Strong Presence in Texas and Oklahoma • A Texas-based financial holding company with $38.4 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 5: Balance Sheet Summary
Balance Sheet Summary Data as of 06/30/2025 Loans $22.2 Bn Deposits $27.5 Bn Assets $38.4 Bn 10 Year CAGR (1) Loans 9.1% Deposits 4.8% Assets 6.3% Assets Deposits Total Loans Equity 5 Source: Company Documents (1) Represents the Compound Annual Growth Rate from 12/31/2014 – 12/31/2024
Slide 6: Net Income
Net Income Note: Net income includes the following ($ 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 $3,292 $3,124 Accretion Net
Slide 7: Earnings Per Share
Earnings Per Share Note: Net income includes the following ($ 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 $3,292 $3,124 Accre
Slide 8: Net Interest Margin
Net Interest Margin Net Interest Margin (Tax Equivalent) Net Interest Margin (Excluding Purchase Accounting Adjustments) 8 Source: Company Documents
Slide 9: Acquisitions & Efficiency Ratio
Acquisitions & Efficiency Ratio ($’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 10: 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 10 (2) Excludes after-tax merger related provision and expenses related to recent acquisitions, gain on Visa Class B-1 stock ex
Slide 11: 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 11 (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 12: Deposit Composition
Deposit Composition As of June 30, 2025 ($ in millions) (1) $mm Cost (%) Noninterest-Bearing Demand $9,427 0.00% Interest-Bearing Demand $4,708 0.74% Money Market & Savings $8,971 2.05% CDs & Other Time $4,368 3.59% Total Deposits: $27.5Bn Total Cost of Deposits: 1.36% (1) Cost of Interest-Bearing D
Slide 13: Loan Growth
Loan Growth Loans (Excluding Warehouse Purchase Program) Loan / Deposit Ratio (Excluding WPP) Warehouse Purchase Program (WPP) Loan / Deposit Ratio (Including WPP) 13 Source: Company Documents
Slide 14: Loan Portfolio Overview
Loan Portfolio Overview As of June 30, 2025 ($ in millions) Loan Portfolio by Category & Geography Loans by Rate Structure ~4.3yr Avg. Life (2)(4) Loans By Area Bryan / College Station Amount $967 % of Total 4.6% Total Loans: $22.2Bn Central Oklahoma Central Texas $556 $2,561 2.7% 12.3% Loans HFI (E
Slide 15: Loan Portfolio Detail
Loan Portfolio Detail As of June 30, 2025 ($ 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 $1,364 23% Industrial $1,222 21% • CRE and construction loans conservat
Slide 16: Changes to Allowance for Credit Losses
Changes to Allowance for Credit Losses ($ in millions) $386.7 million Total Allowance for Credit Losses and Unfunded Commitments $383.7 million 1.67% ACL to Total 1.66% ACL to Total Loans (1) Loans (1) Allowance for Allowance for Net charge-offs PCD recoveries Outstanding Net increased Credi
Slide 17: Asset Quality
Asset Quality NPAs / Loans + OREO (1) UBPR Peer Group Prosperity Bank Source: Company Documents & Uniform Bank Performance Report 17 Note: NPAs include loans past due 90 days and still accruing (1) UBPR = Uniform Bank Performance Report; Peer Group 2 (118 banks) – Insured commercial banks having ass
Slide 18: Asset Quality
Asset Quality Net Charge-Offs / Average Loans (2) (2) ($ 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 19: Securities Portfolio Detail
Securities Portfolio Detail As of June 30, 2025 ($ in millions) $mm Mortgage-Backed Securities $10,045 Collateralized Mortgage Obligations $448 States & Political Subdivisions $80 Other Securities $29 U.S. Government Agency Securities $6 Total Securities: $10.6Bn Yield on Securities: 2.13% (1) 96.8%
Slide 20: Total Return Performance
Total Return Performance IPO (November 12, 1998) to June 30, 2025 2,500 $100,000 invested in Prosperity’s IPO 2,250 on 11/12/98 was worth $1,958,526 on 6/30/2025 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 (+1,844.0%
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 $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 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 May 2025, Texas led all states Prosperity Proj. Population for jobs gained over the month and Prosperity Deposits Growth over the year, setting new records Metropolitan Statis
Slide 23: 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 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 2.4% 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 4th largest in the United States by population with over 8.4 million residents – Population is expected to grow 7.1% from 2025 – 2030 (compared to the 2.4% projected growth for the U.S
Slide 26: Austin Market Highlights
Austin Market Highlights Market Highlights Austin Franchise • The Austin MSA is the 25th 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 2.4% projected growth for the U.S.) – Median Hou
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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