PROSPERITY BANCSHARES, INC.® REPORTS FOURTH QUARTER 2025 EARNINGS

HOUSTON, Jan. 28, 2026 /PRNewswire/ -- Prosperity Bancshares, Inc. ® (NYSE: PB) ("Prosperity Bancshares"), the parent company of Prosperity Bank ® (collectively, "Prosperity"), reported net income of $139.9 million for the quarter ended December 31, 2025, compared with $130.1 million for the same period in 2024. Net income per diluted common share was $1.49 for the quarter ended December 31, 2025, compared with $1.37 for the same period in 2024. The annualized return on fourth quarter average assets was 1.49%. Additionally, deposits increased $700.4 million during the fourth quarter of 2025. Nonperforming assets remain low at 0.46% of fourth quarter average interest-earning assets. On January 1, 2026, American Bank Holding Corporation ("American") merged with Prosperity Bancshares and American Bank, N.A. ("American Bank") merged with Prosperity Bank (collectively, the "Prosperity/American Merger").

"I am excited to announce that on January 1, 2026, Prosperity completed the merger with our new partner American and its wholly owned subsidiary American Bank, headquartered in Corpus Christi, Texas. In connection with that transaction, we are pleased that Patt Wallace, the daughter of one of the founding families of the bank, and Steve Rafaelle, the CEO of American Bank, have joined our Bank Board of Directors," said David Zalman, Prosperity's Senior Chairman and Chief Executive Officer.

"We have also received all regulatory and shareholder approvals for the merger with Southwest Bancshares, the parent company of Texas Partners Bank and expect the transaction will be effective on February 1, 2026. In connection with the Southwest deal, we are pleased that Gene Dawson, Interim Chairman of Southwest Bancshares and Chairman of the nationally recognized Pape-Dawson engineering firm will be joining our Bank Board of Directors. To further add to our San Antonio presence, Charlie Amato has joined our Bank Board of Directors. In addition to his successful business, Charlie previously served as a board member of Federal Reserve Board of Dallas, San Antonio Branch, a Regent of the Texas State University System and is an investor in the San Antonio Spurs," continued Zalman.

"When Prosperity went public in 1998, we were a small community bank in rural Texas with less than $500 million in assets. For 27 years, we have remained disciplined and focused on the same strategy. Delivering shareholder value by prioritizing low-cost core deposits, operational efficiency, sound credit quality, and growth via opportunistic M&A," added Zalman.

"This morning's announcement that Prosperity is acquiring Stellar Bancorp is consistent with that strategy and this transaction marks an important milestone for the company. Our combined Houston bank deposit rank increases from number 9 to number 5, making us the largest Texas-based bank in the market and 2nd largest by bank deposits in the state," stated Zalman.

"Importantly, Stellar Bancorp is a well-run bank with similar credit discipline and an envious noninterest-bearing deposit mix. It has scarcity value, a quality balance sheet and earnings power. As a result, we view the transaction as a low-risk combination that significantly enhances our Texas footprint," concluded Zalman.

Results of Operations for the Three Months Ended December 31, 2025

Net income was $139.9 million (2) for the three months ended December 31, 2025, compared with $130.1 million (3) for the same period in 2024, an increase of $9.8 million or 7.6%. Net income per diluted common share was $1.49 for the three months ended December 31, 2025, compared with $1.37 for the same period in 2024, an increase of 8.8%. The changes were primarily due to an increase in net interest income and a decrease in Federal Deposit Insurance Corporation ("FDIC") special assessment, partially offset by an increase in provision for income taxes. On a linked quarter basis, net income was $139.9 million (2) for the three months ended December 31, 2025, compared with $137.6 million (4) for the three months ended September 30, 2025, an increase of $2.4 million or 1.7%. Net income per diluted common share was $1.49 for the three months ended December 31, 2025, compared with $1.45 for the three months ended September 30, 2025, an increase of 2.8%. Annualized returns on average assets, average common equity and average tangible common equity for the three months ended December 31, 2025, were 1.49%, 7.30% and 13.61% (1), respectively. Prosperity's efficiency ratio (excluding net gains and losses on the sale, write-down or write-up of assets and securities) was 43.66% (1) for the three months ended December 31, 2025.

Net interest income before provision for credit losses was $275.0 million for the three months ended December 31, 2025, compared with $267.8 million for the same period in 2024, an increase of $7.2 million or 2.7%. The net interest margin on a tax equivalent basis was 3.30% for the three months ended December 31, 2025, compared with 3.05% for the same period in 2024. The changes to both measures were 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 federal funds sold and other earning assets. Net interest income before provision for credit losses increased $1.5 million to $275.0 million for the three months ended December 31, 2025, compared with $273.4 million for the three months ended September 30, 2025. The net interest margin on a tax equivalent basis was 3.30% for the three months ended December 31, 2025, compared with 3.24% for the three months ended September 30, 2025. The changes to both measures were primarily due to a decrease in the average balances and average rates on other borrowings, partially offset by a decrease in the average balances and average rates on loans and federal funds sold and other earning assets.

Noninterest income was $42.8 million for the three months ended December 31, 2025, compared with $39.8 million for the same period in 2024, an increase of $2.9 million, primarily due to increases in other noninterest income and service charges on deposit accounts. Noninterest income was $42.8 million for the three months ended December 31, 2025, compared with $41.2 million for the three months ended September 30, 2025, an increase of $1.5 million.

Noninterest expense was $138.7 million for the three months ended December 31, 2025, compared with $141.5 million for the same period in 2024, a decrease of $2.8 million, primarily due to a reversal of the 2024 FDIC special assessment, partially offset by a change in the net loss on sale or write-down of other real estate and an excise tax expense due to stock repurchases. Noninterest expense was $138.7 million for the three months ended December 31, 2025, and $138.6 million for the three months ended September 30, 2025.

Results of Operations for the Year Ended December 31, 2025

For the year ended December 31, 2025, net income was $542.8 million (5) compared with $479.4 million (6) for the same period in 2024, an increase of $63.5 million or 13.2%. Net income per diluted common share was $5.72 for the year ended December 31, 2025, compared with $5.05 for the same period in 2024, an increase of 13.3%. The changes were primarily due to an increase in net interest income, lower merger related provision and expenses, and lower regulatory assessments and FDIC insurance, partially offset by a decrease in net gain on sale or write-up of securities. Returns on average assets, average common equity and average tangible common equity for the year ended December 31, 2025, were 1.42%, 7.14% and 13.43% (1), respectively.

Net interest income before provision for credit losses for the year ended December 31, 2025, was $1.081 billion compared with $1.026 billion for the same period in 2024, an increase of $55.0 million or 5.4%. The net interest margin on a tax equivalent basis for the year ended December 31, 2025, was 3.22% compared with 2.93% for the same period in 2024. The changes to both measures were 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 federal funds sold and other earning assets, a decrease in the average balances on investment securities, a decrease in the average rates on loans and a decrease in loan discount accretion of $5.1 million.

Noninterest income was $168.3 million for the year ended December 31, 2025, compared with $165.8 million for the same period in 2024, an increase of $2.5 million, primarily due to increases in other noninterest income and service charges on deposit accounts, partially offset by a decrease in net gain on sale or write-up of securities.

Noninterest expense was $556.2 million for the year ended December 31, 2025, compared with $570.6 million for the same period in 2024, a decrease of $14.4 million, primarily due lower regulatory assessments and FDIC insurance, a reversal of the 2024 FDIC special assessment, a decrease in other noninterest expense and a decrease in merger related expenses.

Balance Sheet Information

Prosperity had $38.463 billion in total assets at December 31, 2025, compared with $38.330 billion at September 30, 2025, and $39.567 billion at December 31, 2024. The year-over-year decrease was primarily due to the reduction in borrowings by $1.250 billion from December 31, 2024 to December 31, 2025.

Loans were $21.805 billion at December 31, 2025, a decrease of $222.4 million from $22.028 billion at September 30, 2025. Loans decreased $343.8 million from $22.149 billion at December 31, 2024.

Loans, excluding Warehouse Purchase Program loans, were $20.501 billion at December 31, 2025, compared with $20.750 billion at September 30, 2025, a decrease of $249.0 million, and compared with $21.068 billion at December 31, 2024, a decrease of $567.7 million.

Deposits were $28.482 billion at December 31, 2025, an increase of $700.4 million from $27.782 billion at September 30, 2025. Deposits increased $101.1 million from $28.381 billion at December 31, 2024.

Asset Quality

Nonperforming assets totaled $150.8 million or 0.46% of quarterly average interest-earning assets at December 31, 2025, compared with $119.6 million or 0.36% of quarterly average interest-earning assets at September 30, 2025, 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 off-balance sheet credit exposures was $371.4 million at December 31, 2025, compared with $377.3 million at September 30, 2025, and $389.5 million at December 31, 2024. There was no provision for credit losses for the three months and year ended December 31, 2025, compared with no provision for credit losses for the three months ended December 31, 2024, and a $9.1 million provision for credit losses related to acquisitions for the year ended December 31, 2024.

The allowance for credit losses on loans was $333.7 million or 1.53% of total loans at December 31, 2025, compared with $339.6 million or 1.54% of total loans at September 30, 2025, 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 1.63% (1) at December 31, 2025, compared with 1.64% (1) at September 30, 2025, and 1.67% (1) at December 31, 2024.

Net charge-offs were $5.9 million for the three months ended December 31, 2025, compared with net charge-offs of $6.5 million for the three months ended September 30, 2025, and net charge-offs of $2.6 million for the three months ended December 31, 2024. For the three months ended December 31, 2025, $3.9 million of reserves on resolved purchased credit deteriorated ("PCD") loans without any related charge-offs were released to the general reserve.

Net charge-offs were $18.1 million for the year ended December 31, 2025, compared with net charge-offs of $14.6 million for the year ended December 31, 2024. For the year ended December 31, 2025, $18.9 million of reserves on resolved PCD loans without any related charge-offs were released to the general reserve.

Dividend

Prosperity Bancshares declared a first quarter 2026 cash dividend of $0.60 per share to be paid on April 1, 2026, to all shareholders of record as of March 13, 2026.

Stock Repurchase Program

On January 26, 2026, Prosperity Bancshares announced a stock repurchase program under which up to 5%, or approximately 4.87 million shares, of its outstanding common stock may be acquired over a one-year period expiring on January 26, 2027, at the discretion of management. Under its 2025 stock repurchase program, Prosperity Bancshares repurchased approximately 2.04 million shares of its common stock at an average weighted price of $67.10 per share during the three months ended December 31, 2025, and approximately 2.34 million shares of its common stock at an average weighted price of $67.04 per share during the year ended December 31, 2025.

Pending Acquisition of Stellar Bancorp, Inc.

On January 28, 2026, Prosperity Bancshares and Stellar Bancorp, Inc. ("Stellar") jointly announced the signing of a definitive merger agreement whereby Stellar, the parent company of Stellar Bank ("Stellar Bank") will merge with and into Prosperity Bancshares. Stellar Bank operates 52 banking offices in greater Houston and Beaumont, Texas and surrounding areas. As of December 31, 2025, Stellar, on a consolidated basis, reported total assets of $10.807 billion, total loans of $7.301 billion and total deposits of $9.021 billion.

Under the terms and subject to the conditions of the definitive agreement, Prosperity Bancshares will issue 0.3803 shares of Prosperity Bancshares common stock and $11.36 in cash for each outstanding share of Stellar common stock. Based on Prosperity Bancshares' closing price of $72.90 on January 27, 2026, the total consideration was valued at approximately $2.002 billion.

Pending Acquisition of Southwest Bancshares, Inc.

On October 1, 2025, Prosperity Bancshares and Southwest Bancshares, Inc. ("Southwest") jointly announced the signing of a definitive merger agreement (the "Prosperity/Southwest Merger Agreement") whereby Southwest, a Texas corporation and bank holding company of Texas Partners Bank ("Texas Partners"), will merge with and into Prosperity Bancshares and Texas Partners will merge with and into Prosperity Bank. Texas Partners operates 11 banking offices in Central Texas including its main office in San Antonio, and banking offices in the San Antonio area, Austin and the Hill Country. As of December 31, 2025, Southwest, on a consolidated basis, reported total assets of $2.426 billion, total loans of $1.941 billion and total deposits of $2.187 billion.

Under the terms and subject to the conditions of the Prosperity/Southwest Merger Agreement, Prosperity Bancshares will issue 4,062,520 shares of Prosperity Bancshares common stock for all outstanding shares of Southwest common stock and restricted stock awards, subject to certain potential adjustments. Southwest warrants and in-the-money Southwest stock options that are outstanding at the closing will be converted into cash payments based on the value of the merger consideration (less the applicable exercise price), as calculated pursuant to the terms of the Prosperity/Southwest Merger Agreement. Based on Prosperity Bancshares' closing price of $65.97 on September 29, 2025, the total consideration was valued at approximately $268.9 million. Prosperity has received all necessary regulatory approvals for the acquisition of Southwest, and the shareholders of Southwest approved the transaction on January 22, 2026. The transaction is expected to become effective on February 1, 2026, subject to customary closing conditions.

Acquisition of American Bank Holding Corporation

On January 1, 2026, Prosperity completed the acquisition of American and its wholly owned subsidiary American Bank, headquartered in Corpus Christi, Texas. American Bank operated 18 banking offices and 2 loan production offices in South and Central Texas including its main office in Corpus Christi, and banking offices in San Antonio, Austin, Victoria and the greater Corpus Christi area including Port Aransas and Rockport and a loan production office in Houston, Texas. As of December 31, 2025, American, on a consolidated basis, reported total assets of $2.506 billion, total loans of $1.907 billion and total deposits of $2.271 billion.

Pursuant to the terms of the definitive agreement, Prosperity Bancshares issued 4,439,938 shares of Prosperity Bancshares common stock to the former shareholders and award holders of American in the first quarter of 2026.

Conference Call

Prosperity's management team will host a conference call on Wednesday, January 28, 2026, at 11:30 a.m. Eastern Time (10:30 a.m. Central Time) to discuss Prosperity's fourth quarter 2025 earnings and the Stellar acquisition announcement. 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 0259843.

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, 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 December 31, 2025, Prosperity Bancshares, Inc. ® is a $38.463 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.

Prosperity currently operates 301 full-service banking locations: 62 in the Houston area, including The Woodlands; 36 in the South Texas area including Corpus Christi and Victoria; 61 in the Dallas/Fort Worth area; 22 in the East Texas area; 28 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 and 18 in the Central, South Texas and San Antonio areas currently doing business as American Bank.

Cautionary Notes on Forward-Looking Statements

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: This press release contains, 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 operating results; benefits and synergies of the proposed transaction; future opportunities for Prosperity; the issuance of common stock of Prosperity contemplated by the Agreement and Plan of Merger by and between Prosperity and Stellar (the "Merger Agreement"); the expected filing by Prosperity with the Securities and Exchange Commission (the "SEC") of a registration statement on Form S-4 (the "Registration Statement") and a prospectus of Prosperity and a proxy statement of Stellar to be included therein (the "Proxy Statement/Prospectus"); the expected timing of the closing of the proposed transaction; the ability of the parties to complete the proposed transaction considering the various closing conditions and any other statements about future expectations that constitute forward-looking statements within the meaning of the federal securities laws, including the meaning of the Private Securities Litigation Reform Act of 1995, as amended, Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), 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, Stellar and their respective subsidiaries or related to the proposed transaction between Prosperity and Stellar and are subject to significant risks and uncertainties that could cause actual results to differ materially from the results expressed in such statements.

These forward-looking statements may include information about Prosperity's and Stellar's possible or assumed future economic performance or future results of operations, including future revenues, income, expenses, provision for loan losses, provision for taxes, effective tax rate, earnings per share and cash flows and Prosperity's and Stellar's future capital expenditures and dividends, future financial condition and changes therein, including changes in Prosperity's and Stellar's loan portfolio and allowance for loan losses, future capital structure or changes therein, as well as the plans and objectives of management for Prosperity's and Stellar's future operations, future or proposed acquisitions, the future or expected effect of acquisitions on Prosperity's and Stellar's operations, results of operations, financial condition, and future economic performance, statements about the anticipated benefits of the proposed transaction, 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 and Stellar currently believe to be valid. Because forward-looking statements relate to future results and occurrences, many of which are outside of the control of Prosperity and Stellar, 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); 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. Many possible events or factors could adversely affect the future financial results and performance of Prosperity, Stellar or the combined company and could cause those results or performance to differ materially from those expressed in or implied by the forward-looking statements. Such risks and uncertainties include, among others: (1) the risk that the cost savings and synergies from the proposed transaction may not be fully realized or may take longer than anticipated to be realized, (2) disruption to Prosperity's and Stellar's businesses as a result of the announcements and pendency of the proposed transaction, (3) the risk that the integration of Stellar's businesses and operations into Prosperity will be materially delayed or will be more costly or difficult than expected, or that Prosperity is otherwise unable to successfully integrate Stellar's business into its own, including as a result of unexpected factors or events, (4) the failure to obtain the necessary approval by the shareholders of Stellar, (5) the ability by Prosperity and/or Stellar to obtain required governmental approvals of the proposed transaction on the timeline expected, or at all, and the risk that such approvals may result in the imposition of conditions that could adversely affect Prosperity after the closing of the proposed transaction or adversely affect the expected benefits of the proposed transaction, (6) reputational risk and the reaction of each company's customers, suppliers, employees or other business partners to the proposed transaction, (7) the failure of the closing conditions in the Merger Agreement to be satisfied, or any unexpected delay in closing the proposed transaction or the occurrence of any event, change or other circumstances that could give rise to the termination of the Merger Agreement, (8) the dilution caused by the issuances of additional shares of Prosperity's common stock in the proposed transaction, (9) the possibility that the proposed transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events, (10) the outcome of any legal or regulatory proceedings that may be currently pending or later instituted against Prosperity before or after the proposed transaction, or against Stellar, (11) diversion of management's attention from ongoing business operations and (12) general competitive, economic, political and market conditions and other factors that may affect future results of Prosperity and Stellar. Prosperity and Stellar disclaim 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 risks, uncertainties, assumptions, and factors are discussed in the respective Annual Reports on Form 10-K for the year ended December 31, 2024, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K, filed by Prosperity or Stellar and in other filings made by Prosperity and Stellar with the SEC from time to time.

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 transaction. The Registration Statement will include the Proxy Statement/Prospectus which will be sent to the shareholders of Stellar in connection with the proposed transaction. This communication is not a substitute for the Registration Statement, the Proxy Statement/Prospectus or any other document that may be filed by Prosperity or Stellar with the SEC. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT, THE PROXY STATEMENT/PROSPECTUS AND ANY OTHER RELEVANT DOCUMENTS TO BE FILED WITH THE SEC IN CONNECTION WITH THE PROPOSED TRANSACTION OR INCORPORATED BY REFERENCE INTO THE PROXY/STATEMENT PROSPECTUS, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY, BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION. Investors and security holders will be able to obtain the Registration Statement and the Proxy Statement/Prospectus (when available) and other documents that are filed with the SEC by Prosperity or Stellar, as applicable, free of charge from the SEC's website at https://www.sec.gov or through the investor relations section of Prosperity's website at https://www.prosperitybankusa.com/investor-relations/ or Stellar's website at https://ir.stellar.bank.

Participants in the Solicitation

Prosperity, Stellar and certain of their directors and executive officers and other employees may be deemed to be participants in the solicitation of proxies from Stellar's shareholders in connection with the proposed transaction. Information about the directors and executive officers of Prosperity and their ownership of Prosperity common stock is contained in the definitive proxy statement for Prosperity's 2025 annual meeting of shareholders (the "Prosperity Annual Meeting Proxy Statement"), which was filed with the SEC on March 13, 2025, including under the headings "Item 1. Election of Directors," "Corporate Governance," "Executive Compensation and Other Matters," "Item 3. Advisory Vote on Executive Compensation," and "Beneficial Ownership of Common Stock by Management of the Company and Principal Shareholders." Information about the directors and executive officers of Stellar and their ownership of Stellar common stock is contained in the definitive proxy statement for Stellar's 2025 annual meeting of shareholders (the "Stellar Annual Meeting Proxy Statement"), which was filed with the SEC on April 10, 2025, including under the headings "Proposal 1: Election of Directors," "Certain Corporate Governance Matters," "Executive Compensation and Other Matters," "Executive Compensation Payments and Awards," "Proposal 4: Advisory Vote on the Compensation of the Company's Named Executive Officers ("Say-on-Pay Resolution")," and "Beneficial Ownership of the Company's Common Stock by Management and Principal Shareholders of the Company." Additional information regarding the persons who may, under the rules of the SEC, be deemed participants in the solicitation of the shareholders of Stellar in connection with the proposed transaction, including a description of their direct or indirect interests, by security holdings or otherwise, will be included in the Proxy Statement/Prospectus relating to the proposed transaction when it is filed with the SEC. To the extent holdings of securities by potential participants (or the identity of such participants) have changed since the information printed in the Prosperity Annual Meeting Proxy Statement or the Stellar Annual Meeting Proxy Statement, such information has been or will be reflected on Statements of Change in Ownership on Forms 3 and 4 filed with the SEC, as applicable. Free copies of the Proxy Statement/Prospectus relating to the proposed transaction and free copies of the other SEC filings to which reference is made in this paragraph may be obtained from the SEC's website at https://www.sec.gov or through the investor relations section of Prosperity's website at https://www.prosperitybankusa.com/investor-relations/ or Stellar's website at https://ir.stellar.bank.

No Offer or Solicitation

This communication is for informational purposes only and is not intended to and does not constitute an offer to subscribe for, buy or sell, or the solicitation of an offer to subscribe for, buy or sell, or an invitation to subscribe for, buy or sell any securities or a solicitation of any vote or approval in any jurisdiction, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in which such offer, invitation, sale or solicitation would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act, and otherwise in accordance with applicable law.

(1)

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.

(2)

Includes purchase accounting adjustments of $2.7 million, net of tax, primarily comprised of loan discount accretion of $3.1 million for the three months ended December 31, 2025.

(3)

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.

(4)

Includes purchase accounting adjustments of $3.4 million, net of tax, primarily comprised of loan discount accretion of $2.9 million for the three months ended September 30, 2025.

(5)

Includes purchase accounting adjustments of $12.1 million, net of tax, primarily comprised of loan discount accretion of $12.4 million for the year ended December 31, 2025.

(6)

Includes purchase accounting adjustments of $15.7 million, net of tax, primarily comprised of loan discount accretion of $17.5 million, merger related provision for credit losses of $9.1 million, merger related expenses of $4.5 million, FDIC special assessment of $3.6 million, and net gain on sale or write-up of securities of $11.2 million for the year ended December 31, 2024.

Bryan/College Station Area

North Carrolton

Bellaire

Timbergate

Sherwood Way

Bryan

Park Cities

Beltway

Water Street

Bryan-29 th Street

Plano

Clear Lake

Wichita Falls

Bryan-East

Plano-West

Copperfield

Victoria

Cattlemans

Bryan-North

Preston Forest

Cypress

Victoria Main

Kell

Caldwell

Preston Parker

Downtown

Victoria-Navarro

College Station

Preston Royal

Eastex

Victoria-North

Other West Texas Area

Hearne

Red Oak

Fairfield

Victoria Salem

Locations

Huntsville

Richardson

First Colony

Big Spring

Madisonville

Richardson-West

Fry Road

Other South Texas Area

Big Spring - East

Navasota

Rosewood Court

Gessner

Locations

Brownfield

New Waverly

The Colony

Gladebrook

Alice

Brownwood

Rock Prairie

Tollroad

Grand Parkway

Aransas Pass

Burkburnett

Southwest Parkway

Trinity Mills

Heights

Bay City

Byers

Tower Point

Turtle Creek

Highway 6 West

Beeville

Cisco

Wellborn Road

West 15th Plano

Little York

Colony Creek

Comanche

West Allen

Medical Center

Cuero

Early

Central Texas Area

Westmoreland

Memorial Drive

East Bernard

Floydada

Austin

Wylie

Northside

Edna

Gorman

Cedar Park

Pasadena

El Campo

Henrietta

Congress

Fort Worth

Pecan Grove

Flatonia

Levelland

Lakeway

Haltom City

Pin Oak

Goliad

Littlefield

Liberty Hill

Hulen

River Oaks

Gonzales

Merkel

Northland

Keller

Sugar Land

Hallettsville

Plainview

Oak Hill

Museum Place

SW Medical Center

Kingsville

Slaton

Research Blvd

Renaissance Square

Tanglewood

Mathis

Snyder

Westlake

Roanoke

The Plaza

Padre Island

Stockyards

Uptown

Palacios

Oklahoma

Other Central Texas Area

Waugh Drive

Port Lavaca

Central Oklahoma Area

Locations

Other Dallas/Fort Worth Area

Westheimer

Portland

Oklahoma City

Bastrop

Locations

West University

Rockport

23 rd Street

Canyon Lake

Arlington

Woodcreek

Schulenburg

Expressway

Dime Box

Azle

Sinton

I-240

Dripping Springs

Ennis

Katy

Taft

Memorial

Elgin

Gainesville

Cinco Ranch

Weimar

Fredericksburg

Glen Rose

Katy-Spring Green

Yoakum

Other Central Oklahoma Area

Georgetown

Granbury

Yorktown

Locations

Gruene

Grand Prairie

The Woodlands

Edmond

Horseshoe Bay

Jacksboro

The Woodlands-College Park

West Texas Area

Norman

Kingsland

Mesquite

The Woodlands-I-45

Abilene

La Grange

Muenster

The Woodlands-Research Forest

Antilley Road

Tulsa Area

Lexington

Runaway Bay

Barrow Street

Tulsa

Marble Falls

Sanger

Other Houston Area

Cypress Street

Garnett

New Braunfels

Waxahachie

Locations

Judge Ely

Harvard

Pleasanton

Weatherford

Angleton

Mockingbird

Memorial

Round Rock

Beaumont

Sheridan

San Antonio

East Texas Area

Cleveland

Amarillo

S. Harvard

Seguin

Athens

Dayton

Hillside

Utica Tower

Smithville

Blooming Grove

Galveston

Soncy

Yale

Thorndale

Canton

Groves

Carthage

Hempstead

Lubbock

Other Tulsa Area Locations

Dallas/Fort Worth Area

Corsicana

Hitchcock

4th Street

Owasso

Dallas

Crockett

Liberty

66th Street

14th Street Plano

Eustace

Magnolia

82nd Street

American Bank - Central Texas Area

Abrams Centre

Gilmer

Magnolia Parkway

86th Street

Austin Westlake

Addison

Grapeland

Mont Belvieu

110th Street

Concord

Allen

Gun Barrel City

Nederland

Avenue Q

Converse

Balch Springs

Jacksonville

Needville

Milwaukee

New Braunfels

Camp Wisdom

Kerens

Rosenberg

North University

San Antonio 281

Carrollton

Longview

Shadow Creek

Texas Tech Student Union

Downtown

Cedar Hill

Mount Vernon

Spring

East Central

Coppell

Palestine

Tomball

Midland

Universal City

East Plano

Rusk

Waller

North

Frisco

Seven Points

West Columbia

Wadley

American Bank - South Texas Area

Frisco Warren

Teague

Wharton

Wall Street

South

Frisco-West

Tyler-Beckham

Winnie

West

Padre Island

Garland

Tyler-South Broadway

Wirt

Shoreline

Grapevine

Tyler-University

Odessa

Port Aransas

Grapevine Main

Winnsboro

South Texas Area -

Grant

Alameda

Kiest

Corpus Christi

Kermit Highway

Bay

Lake Highlands

Houston Area

Calallen

Parkway

Saratoga

McKinney

Houston

Carmel

Rockport

McKinney Eldorado

Aldine

Northwest

San Angelo

Goliad

McKinney Redbud

Alief

Saratoga

College Hills

Victoria

Prosperity Bancshares, Inc. ®

Financial Highlights (Unaudited)

(In thousands)

Dec 31, 2025

Sep 30, 2025

Jun 30, 2025

Mar 31, 2025

Dec 31, 2024

Balance Sheet Data (at period end)

Loans held for sale

$

14,155

$

11,297

$

6,004

$

9,764

$

10,690

Loans held for investment

20,486,415

20,738,294

20,903,944

20,909,913

21,057,616

Loans held for investment - Warehouse Purchase Program

1,304,798

1,278,178

1,287,440

1,057,893

1,080,903

Total loans

21,805,368

22,027,769

22,197,388

21,977,570

22,149,209

Investment securities (A)

10,613,425

10,232,462

10,608,104

10,792,731

11,094,424

Federal funds sold

217

210

197

221

292

Allowance for credit losses on loans

(333,742)

(339,626)

(346,084)

(349,101)

(351,805)

Cash and due from banks

1,747,511

1,766,115

1,304,993

1,694,637

1,972,175

Goodwill

3,503,127

3,503,127

3,503,127

3,503,127

3,503,129

Core deposit intangibles, net

51,605

55,194

58,796

62,406

66,047

Other real estate owned

13,296

13,750

7,874

8,012

5,701

Fixed assets, net

383,449

378,776

374,602

373,273

371,238

Other assets

679,169

692,692

708,355

701,799

756,328

Total assets

$

38,463,425

$

38,330,469

$

38,417,352

$

38,764,675

$

39,566,738

Noninterest-bearing deposits

$

9,467,911

$

9,522,028

$

9,426,657

$

9,675,915

$

9,798,438

Interest-bearing deposits

19,014,573

18,260,066

18,046,754

18,350,884

18,582,900

Total deposits

28,482,484

27,782,094

27,473,411

28,026,799

28,381,338

Other borrowings

1,950,000

2,400,000

2,900,000

2,700,000

3,200,000

Securities sold under repurchase agreements

201,216

185,797

183,572

216,086

221,913

Allowance for credit losses on off-balance sheet credit exposures

37,646

37,646

37,646

37,646

37,646

Other liabilities

175,939

259,994

222,987

267,083

287,346

Total liabilities

30,847,285

30,665,531

30,817,616

31,247,614

32,128,243

Shareholders' equity (B)

7,616,140

7,664,938

7,599,736

7,517,061

7,438,495

Total liabilities and equity

$

38,463,425

$

38,330,469

$

38,417,352

$

38,764,675

$

39,566,738

(A)

Includes ($375), ($1,987), ($1,657), ($1,374) and ($2,056) in unrealized losses on available for sale securities for the quarterly periods ended December 31, 2025, September 30, 2025, June 30, 2025, March 31, 2025, and December 31, 2024, respectively.

(B)

Includes ($296), ($1,570), ($1,309), ($1,085) and ($1,624) in after-tax unrealized losses on available for sale securities for the quarterly periods ended December 31, 2025, September 30, 2025, June 30, 2025, March 31, 2025, and December 31, 2024, respectively.

Prosperity Bancshares, Inc. ®

Financial Highlights (Unaudited)

(In thousands)

Three Months Ended

Year-to-Date

Dec 31,

2025

Sep 30,

2025

Jun 30,

2025

Mar 31,

2025

Dec 31,

2024

Dec 31,

2025

Dec 31,

2024

Income Statement Data

Interest income:

Loans

$

321,516

$

329,445

$

325,490

$

319,023

$

333,055

$

1,295,474

$

1,313,162

Securities (C)

56,767

58,207

57,836

57,886

58,260

230,696

246,726

Federal funds sold and other earning assets

8,364

10,455

9,438

15,896

19,630

44,153

63,825

Total interest income

386,647

398,107

392,764

392,805

410,945

1,570,323

1,623,713

Interest expense:

Deposits

94,625

95,965

93,790

95,597

102,050

379,977

408,624

Other borrowings

16,028

27,613

30,101

30,492

39,620

104,234

181,640

Securities sold under repurchase agreements

1,041

1,094

1,151

1,334

1,501

4,620

6,954

Total interest expense

111,694

124,672

125,042

127,423

143,171

488,831

597,218

Net interest income

274,953

273,435

267,722

265,382

267,774

1,081,492

1,026,495

Provision for credit losses

—

—

—

—

—

—

9,066

Net interest income after provision for credit losses

274,953

273,435

267,722

265,382

267,774

1,081,492

1,017,429

Noninterest income:

Nonsufficient funds (NSF) fees

9,715

9,805

8,885

9,147

9,960

37,552

35,417

Credit card, debit card and ATM card income

9,462

9,446

9,761

8,739

9,443

37,408

37,308

Service charges on deposit accounts

7,618

7,317

7,645

7,408

6,992

29,988

26,498

Trust income

3,662

3,526

3,859

3,601

3,514

14,648

14,750

Mortgage income

954

931

965

1,009

779

3,859

3,096

Brokerage income

1,570

1,328

1,225

1,262

1,063

5,385

4,742

Bank owned life insurance income

2,117

2,111

1,985

2,115

2,020

8,328

7,980

Net gain (loss) on sale or write-down of assets

35

3

1,414

(235)

584

1,217

2,824

Net gain on sale or write-up of securities

—

—

—

—

—

—

11,245

Other noninterest income

7,647

6,771

7,243

8,255

5,482

29,916

21,949

Total noninterest income

42,780

41,238

42,982

41,301

39,837

168,301

165,809

Noninterest expense:

Salaries and benefits

88,384

87,949

87,296

89,476

88,631

353,105

352,353

Net occupancy and equipment

9,379

9,395

9,168

9,146

8,957

37,088

35,786

Credit and debit card, data processing and

software amortization

12,621

12,515

12,056

11,422

12,342

48,614

47,300

Regulatory assessments and FDIC insurance

1,600

5,198

5,508

5,789

5,789

18,095

27,370

Core deposit intangibles amortization

3,588

3,602

3,610

3,641

4,131

14,441

15,670

Depreciation

5,155

4,966

4,779

4,774

4,791

19,674

19,054

Communications

3,528

3,480

3,507

3,473

3,450

13,988

13,697

Other real estate expense

219

314

204

140

255

877

523

Net loss (gain) on sale or write-down of other

real estate

109

(81)

(222)

(30)

(610)

(224)

(814)

Merger related expenses

268

62

—

—

—

330

4,444

Other noninterest expense

13,861

11,235

12,659

12,470

13,809

50,225

55,190

Total noninterest expense

138,712

138,635

138,565

140,301

141,545

556,213

570,573

Income before income taxes

179,021

176,038

172,139

166,382

166,066

693,580

612,665

Provision for income taxes

39,114

38,482

36,984

36,157

35,990

150,737

133,279

Net income available to common shareholders

$

139,907

$

137,556

$

135,155

$

130,225

$

130,076

$

542,843

$

479,386

(C)

Interest income on securities was reduced by net premium amortization of $4,668, $2,877, $4,926, $5,027, and $5,609 for the three months ended December 31, 2025, September 30, 2025, June 30, 2025, March 31, 2025, and December 31, 2024, respectively, and $17,498 and $22,836 for the year ended December 31, 2025, and 2024, respectively.

Prosperity Bancshares, Inc. ®

Financial Highlights (Unaudited)

(Dollars and share amounts in thousands, except per share data and market prices)

Three Months Ended

Year-to-Date

Dec 31,

2025

Sep 30,

2025

Jun 30,

2025

Mar 31,

2025

Dec 31,

2024

Dec 31,

2025

Dec 31,

2024

Profitability

Net income (D) (E)

$

139,907

$

137,556

$

135,155

$

130,225

$

130,076

$

542,843

$

479,386

Basic earnings per share

$

1.49

$

1.45

$

1.42

$

1.37

$

1.37

$

5.72

$

5.05

Diluted earnings per share

$

1.49

$

1.45

$

1.42

$

1.37

$

1.37

$

5.72

$

5.05

Return on average assets (F) (J)

1.49

%

1.44

%

1.41

%

1.34

%

1.31

%

1.42

%

1.21

%

Return on average common equity (F) (J)

7.30

%

7.18

%

7.13

%

6.94

%

7.00

%

7.14

%

6.56

%

Return on average tangible common

equity (F) (G) (J)

13.61

%

13.43

%

13.44

%

13.23

%

13.50

%

13.43

%

12.73

%

Tax equivalent net interest margin (D) (E) (H)

3.30

%

3.24

%

3.18

%

3.14

%

3.05

%

3.22

%

2.93

%

Efficiency ratio (G) (I) (K)

43.66

%

44.06

%

44.80

%

45.71

%

46.10

%

44.55

%

48.43

%

Liquidity and Capital Ratios

Equity to assets

19.80

%

20.00

%

19.78

%

19.39

%

18.80

%

19.80

%

18.80

%

Common equity tier 1 capital

17.55

%

17.53

%

17.10

%

16.92

%

16.42

%

17.55

%

16.42

%

Tier 1 risk-based capital

17.55

%

17.53

%

17.10

%

16.92

%

16.42

%

17.55

%

16.42

%

Total risk-based capital

18.80

%

18.78

%

18.35

%

18.17

%

17.67

%

18.80

%

17.67

%

Tier 1 leverage capital

11.93

%

11.90

%

11.62

%

11.20

%

10.82

%

11.93

%

10.82

%

Period end tangible equity to period end

tangible assets (G)

11.63

%

11.81

%

11.58

%

11.23

%

10.75

%

11.63

%

10.75

%

Other Data

Weighted-average shares used in

computing earnings per common share

Basic

94,044

95,093

95,277

95,266

95,264

94,917

95,000

Diluted

94,044

95,093

95,277

95,266

95,264

94,917

95,000

Period end shares outstanding

93,058

94,993

95,277

95,258

95,275

93,058

95,275

Cash dividends paid per common share

$

0.60

$

0.58

$

0.58

$

0.58

$

0.58

$

2.34

$

2.26

Book value per common share

$

81.84

$

80.69

$

79.76

$

78.91

$

78.07

$

81.84

$

78.07

Tangible book value per common share (G)

$

43.64

$

43.23

$

42.38

$

41.48

$

40.61

$

43.64

$

40.61

Common Stock Market Price

High

$

73.90

$

75.44

$

74.56

$

82.75

$

86.76

$

82.75

$

86.76

Low

$

61.07

$

64.27

$

61.57

$

68.96

$

68.94

$

61.07

$

57.16

Period end closing price

$

69.11

$

66.35

$

70.24

$

71.37

$

75.35

$

69.11

$

75.35

Employees – FTE (excluding overtime)

3,941

3,937

3,921

3,898

3,916

3,941

3,916

Number of banking centers

283

283

283

284

283

283

283

(D)

Includes purchase accounting adjustments for the periods presented as follows:

Three Months Ended

Year-to-Date

Dec 31,

2025

Sep 30,

2025

Jun 30,

2025

Mar 31,

2025

Dec 31,

2024

Dec 31,

2025

Dec 31,

2024

Loan discount accretion

Non-PCD

$2,926

$2,242

$2,486

$2,615

$2,761

$10,269

$12,486

PCD

$205

$613

$638

$677

$850

$2,133

$5,004

Securities net accretion

$342

$1,475

$409

$705

$528

$2,931

$2,208

Time deposits amortization

$(1)

$(1)

$(2)

$(9)

$(21)

$(13)

$(154)

(E)

Using effective tax rate of 21.8%, 21.9%, 21.5%, 21.7% and 21.7% for the three months ended December 31, 2025, September 30, 2025, June 30, 2025, March 31, 2025 and December 31, 2024, respectively, and 21.7% and 21.8% for the year ended December 31, 2025, and 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.

Prosperity Bancshares, Inc. ®

Financial Highlights (Unaudited)

(Dollars in thousands)

YIELD ANALYSIS

Three Months Ended

Dec 31, 2025

Sep 30, 2025

Dec 31, 2024

Average

Balance

Interest

Earned/

Interest

Paid

Average

Yield/

Rate

(L)

Average

Balance

Interest

Earned/

Interest

Paid

Average

Yield/

Rate

(L)

Average

Balance

Interest

Earned/

Interest

Paid

Average

Yield/

Rate

(L)

Interest-earning assets:

Loans held for sale

$

11,077

$

175

6.27 %

$

8,371

$

140

6.64 %

$

8,571

$

144

6.68 %

Loans held for investment

20,603,235

302,679

5.83 %

20,851,896

309,949

5.90 %

21,038,694

313,863

5.93 %

Loans held for investment -

Warehouse Purchase Program

1,258,036

18,662

5.89 %

1,217,579

19,356

6.31 %

1,137,113

19,048

6.66 %

Total loans

21,872,348

321,516

5.83 %

22,077,846

329,445

5.92 %

22,184,378

333,055

5.97 %

Investment securities

10,378,696

56,767

2.17 %

(M)

10,530,807

58,207

2.19 %

(M)

11,265,535

58,260

2.06 %

(M)

Federal funds sold and other

earning assets

830,926

8,364

3.99 %

934,318

10,455

4.44 %

1,628,050

19,630

4.80 %

Total interest-earning assets

33,081,970

386,647

4.64 %

33,542,971

398,107

4.71 %

35,077,963

410,945

4.66 %

Allowance for credit losses on

loans

(337,892)

(343,872)

(353,560)

Noninterest-earning assets

4,921,850

4,930,764

4,902,996

Total assets

$

37,665,928

$

38,129,863

$

39,627,399

Interest-bearing liabilities:

Interest-bearing demand deposits

$

4,812,342

$

9,088

0.75 %

$

4,656,452

$

8,951

0.76 %

$

4,845,174

$

8,535

0.70 %

Savings and money market

deposits

9,054,281

44,771

1.96 %

8,977,585

46,934

2.07 %

8,915,410

47,089

2.10 %

Certificates and other time

deposits

4,519,742

40,766

3.58 %

4,422,996

40,080

3.60 %

4,552,445

46,426

4.06 %

Other borrowings

1,595,652

16,028

3.99 %

2,480,435

27,613

4.42 %

3,332,609

39,620

4.73 %

Securities sold under repurchase

agreements

185,289

1,041

2.23 %

187,462

1,094

2.32 %

231,240

1,501

2.58 %

Total interest-bearing liabilities

20,167,306

111,694

2.20 %

(N)

20,724,930

124,672

2.39 %

(N)

21,876,878

143,171

2.60 %

(N)

Noninterest-bearing liabilities:

Noninterest-bearing demand

deposits

9,543,581

9,451,153

9,829,912

Allowance for credit losses on

off-balance sheet credit

exposures

37,646

37,646

37,646

Other liabilities

248,593

258,156

454,298

Total liabilities

29,997,126

30,471,885

32,198,734

Shareholders' equity

7,668,802

7,657,978

7,428,665

Total liabilities and

shareholders' equity

$

37,665,928

$

38,129,863

$

39,627,399

Net interest income and margin

$

274,953

3.30 %

$

273,435

3.23 %

$

267,774

3.04 %

Non-GAAP to GAAP

reconciliation:

Tax equivalent adjustment

514

807

767

Net interest income and margin

(tax equivalent basis)

$

275,467

3.30 %

$

274,242

3.24 %

$

268,541

3.05 %

(L)

Annualized and based on an actual 365-day or 366-day basis.

(M)

Yield on securities was impacted by net premium amortization of $4,668, $2,877, and $5,609 for the three months ended December 31, 2025, September 30, 2025, and December 31, 2024, respectively.

(N)

Total cost of funds, including noninterest bearing deposits, was 1.49%, 1.64% and 1.80% for the three months ended December 31, 2025, September 30, 2025, and December 31, 2024, respectively.

Prosperity Bancshares, Inc. ®

Financial Highlights (Unaudited)

(Dollars in thousands)

YIELD ANALYSIS

Year-to-Date

Dec 31, 2025

Dec 31, 2024

Average

Balance

Interest

Earned/

Interest

Paid

Average

Yield/

Rate

(O)

Average

Balance

Interest

Earned/

Interest

Paid

Average

Yield/

Rate

(O)

Interest-earning assets:

Loans held for sale

$

9,215

$

608

6.60 %

$

7,603

$

522

6.87 %

Loans held for investment

20,829,523

1,224,368

5.88 %

20,973,042

1,242,836

5.93 %

Loans held for investment - Warehouse Purchase

Program

1,134,031

70,498

6.22 %

973,206

69,804

7.17 %

Total loans

21,972,769

1,295,474

5.90 %

21,953,851

1,313,162

5.98 %

Investment securities

10,696,480

230,696

2.16 %

(P)

11,934,793

246,726

2.07 %

(P)

Federal funds sold and other earning assets

1,010,707

44,153

4.37 %

1,216,728

63,825

5.25 %

Total interest-earning assets

33,679,956

1,570,323

4.66 %

35,105,372

1,623,713

4.63 %

Allowance for credit losses on loans

(345,158)

(344,167)

Noninterest-earning assets

4,946,200

4,839,630

Total assets

$

38,280,998

$

39,600,835

Interest-bearing liabilities:

Interest-bearing demand deposits

$

4,873,634

$

35,917

0.74 %

$

4,900,189

$

35,342

0.72 %

Savings and money market deposits

8,996,090

183,146

2.04 %

8,949,010

194,317

2.17 %

Certificates and other time deposits

4,434,168

160,914

3.63 %

4,301,763

178,965

4.16 %

Other borrowings

2,389,589

104,234

4.36 %

3,802,910

181,640

4.78 %

Securities sold under repurchase agreements

196,205

4,620

2.35 %

257,171

6,954

2.70 %

Total interest-bearing liabilities

20,889,686

488,831

2.34 %

(Q)

22,211,043

597,218

2.69 %

(Q)

Noninterest-bearing liabilities:

Noninterest-bearing demand deposits

9,501,997

9,683,980

Allowance for credit losses on off-balance sheet credit

exposures

37,646

37,134

Other liabilities

246,359

363,607

Total liabilities

30,675,688

32,295,764

Shareholders' equity

7,605,310

7,305,071

Total liabilities and shareholders' equity

$

38,280,998

$

39,600,835

Net interest income and margin

$

1,081,492

3.21 %

$

1,026,495

2.92 %

Non-GAAP to GAAP reconciliation:

Tax equivalent adjustment

2,185

3,183

Net interest income and margin (tax equivalent basis)

$

1,083,677

3.22 %

$

1,029,678

2.93 %

(O)

Based on an actual 365-day or 366-day basis.

(P)

Yield on securities was impacted by net premium amortization of $17,498 and $22,836 for the year ended December 31, 2025, and 2024, respectively.

(Q)

Total cost of funds, including noninterest bearing deposits, was 1.61% and 1.87% for the year ended December 31, 2025, and 2024, respectively.

Prosperity Bancshares, Inc. ®

Financial Highlights (Unaudited)

(Dollars in thousands)

Three Months Ended

Dec 31, 2025

Sep 30, 2025

Jun 30, 2025

Mar 31, 2025

Dec 31, 2024

YIELD TREND (R)

Interest-Earning Assets:

Loans held for sale

6.27

%

6.64

%

6.79

%

6.80

%

6.68

%

Loans held for investment

5.83

%

5.90

%

5.88

%

5.90

%

5.93

%

Loans held for investment - Warehouse

Purchase Program

5.89

%

6.31

%

6.34

%

6.40

%

6.66

%

Total loans

5.83

%

5.92

%

5.91

%

5.92

%

5.97

%

Investment securities (S)

2.17

%

2.19

%

2.13

%

2.13

%

2.06

%

Federal funds sold and other earning assets

3.99

%

4.44

%

4.50

%

4.47

%

4.80

%

Total interest-earning assets

4.64

%

4.71

%

4.66

%

4.64

%

4.66

%

Interest-Bearing Liabilities:

Interest-bearing demand deposits

0.75

%

0.76

%

0.74

%

0.70

%

0.70

%

Savings and money market deposits

1.96

%

2.07

%

2.05

%

2.06

%

2.10

%

Certificates and other time deposits

3.58

%

3.60

%

3.59

%

3.75

%

4.06

%

Other borrowings

3.99

%

4.42

%

4.44

%

4.45

%

4.73

%

Securities sold under repurchase agreements

2.23

%

2.32

%

2.37

%

2.48

%

2.58

%

Total interest-bearing liabilities

2.20

%

2.39

%

2.38

%

2.39

%

2.60

%

Net Interest Margin

3.30

%

3.23

%

3.18

%

3.14

%

3.04

%

Net Interest Margin (tax equivalent)

3.30

%

3.24

%

3.18

%

3.14

%

3.05

%

(R)

Annualized and based on average balances on an actual 365-day or 366-day basis.

(S)

Yield on securities was impacted by net premium amortization of $4,668, $2,877, $4,926, $5,027 and $5,609 for the three months ended December 31, 2025, September 30, 2025, June 30, 2025, March 31, 2025, and December 31, 2024, respectively.

Prosperity Bancshares, Inc. ®

Financial Highlights (Unaudited)

(Dollars in thousands)

Three Months Ended

Dec 31, 2025

Sep 30, 2025

Jun 30, 2025

Mar 31, 2025

Dec 31, 2024

Balance Sheet Averages

Loans held for sale

$

11,077

$

8,371

$

9,813

$

7,570

$

8,571

Loans held for investment

20,603,235

20,851,896

20,907,400

20,959,226

21,038,694

Loans held for investment - Warehouse Purchase

Program

1,258,036

1,217,579

1,179,307

876,086

1,137,113

Total loans

21,872,348

22,077,846

22,096,520

21,842,882

22,184,378

Investment securities

10,378,696

10,530,807

10,867,856

11,017,400

11,265,535

Federal funds sold and other earning assets

830,926

934,318

841,933

1,443,220

1,628,050

Total interest-earning assets

33,081,970

33,542,971

33,806,309

34,303,502

35,077,963

Allowance for credit losses on loans

(337,892)

(343,872)

(348,310)

(350,715)

(353,560)

Cash and due from banks

311,541

291,809

294,379

326,066

317,420

Goodwill

3,503,127

3,503,127

3,503,127

3,503,128

3,505,030

Core deposit intangibles, net

53,553

56,956

60,739

64,293

68,167

Other real estate

14,004

11,533

8,749

7,105

6,778

Fixed assets, net

380,254

377,680

374,486

374,448

373,561

Other assets

659,371

689,659

691,735

729,251

632,040

Total assets

$

37,665,928

$

38,129,863

$

38,391,214

$

38,957,078

$

39,627,399

Noninterest-bearing deposits

$

9,543,581

$

9,451,153

$

9,508,845

$

9,504,540

$

9,829,912

Interest-bearing demand deposits

4,812,342

4,656,452

4,807,864

5,224,796

4,845,174

Savings and money market deposits

9,054,281

8,977,585

8,944,897

9,007,286

8,915,410

Certificates and other time deposits

4,519,742

4,422,996

4,366,510

4,426,521

4,552,445

Total deposits

27,929,946

27,508,186

27,628,116

28,163,143

28,142,941

Other borrowings

1,595,652

2,480,435

2,717,583

2,776,667

3,332,609

Securities sold under repurchase agreements

185,289

187,462

194,577

217,945

231,240

Allowance for credit losses on off-balance sheet

credit exposures

37,646

37,646

37,646

37,646

37,646

Other liabilities

248,593

258,156

227,002

255,876

454,298

Shareholders' equity

7,668,802

7,657,978

7,586,290

7,505,801

7,428,665

Total liabilities and equity

$

37,665,928

$

38,129,863

$

38,391,214

$

38,957,078

$

39,627,399

Prosperity Bancshares, Inc. ®

Financial Highlights (Unaudited)

(Dollars in thousands)

Dec 31, 2025

Sep 30, 2025

Jun 30, 2025

Mar 31, 2025

Dec 31, 2024

Period End Balances

Loan Portfolio

Commercial and

industrial

$

1,864,337

8.6

%

$

1,879,282

8.5

%

$

1,897,117

8.6

%

$

1,915,124

8.7

%

$

1,962,111

8.8

%

Warehouse purchase

program

1,304,798

6.0

%

1,278,178

5.8

%

1,287,440

5.8

%

1,057,893

4.8

%

1,080,903

4.9

%

Construction, land

development and other

land loans

2,741,455

12.6

%

2,865,279

13.0

%

2,873,238

12.9

%

2,845,082

13.0

%

2,859,281

12.9

%

1-4 family residential

7,430,929

34.1

%

7,461,900

33.9

%

7,530,816

33.9

%

7,576,350

34.5

%

7,581,450

34.2

%

Home equity

843,708

3.8

%

848,740

3.9

%

869,370

3.9

%

896,529

4.1

%

906,139

4.1

%

Commercial real estate

(includes multi-family

residential)

5,776,397

26.5

%

5,796,937

26.3

%

5,827,645

26.3

%

5,783,410

26.3

%

5,800,985

26.2

%

Agriculture (includes

farmland)

1,027,904

4.7

%

1,019,589

4.6

%

1,029,250

4.6

%

1,013,960

4.6

%

1,033,546

4.7

%

Consumer and other

376,241

1.7

%

366,027

1.7

%

368,747

1.7

%

378,821

1.7

%

378,817

1.7

%

Energy

439,599

2.0

%

511,837

2.3

%

513,765

2.3

%

510,401

2.3

%

545,977

2.5

%

Total loans

$

21,805,368

$

22,027,769

$

22,197,388

$

21,977,570

$

22,149,209

Deposit Types

Noninterest-bearing

DDA

$

9,467,911

33.2

%

$

9,522,028

34.3

%

$

9,426,657

34.3

%

$

9,675,915

34.5

%

$

9,798,438

34.5

%

Interest-bearing DDA

5,365,795

18.8

%

4,766,146

17.2

%

4,708,251

17.1

%

4,931,769

17.6

%

5,182,035

18.3

%

Money market

6,538,213

23.0

%

6,402,591

23.0

%

6,302,770

23.0

%

6,339,509

22.6

%

6,229,022

21.9

%

Savings

2,592,873

9.1

%

2,616,196

9.4

%

2,667,859

9.7

%

2,703,736

9.7

%

2,685,496

9.5

%

Certificates and other

time deposits

4,517,692

15.9

%

4,475,133

16.1

%

4,367,874

15.9

%

4,375,870

15.6

%

4,486,347

15.8

%

Total deposits

$

28,482,484

$

27,782,094

$

27,473,411

$

28,026,799

$

28,381,338

Loan to Deposit Ratio

76.6

%

79.3

%

80.8

%

78.4

%

78.0

%

Prosperity Bancshares, Inc. ®

Financial Highlights (Unaudited)

(Dollars in thousands)

Construction Loans

Dec 31, 2025

Sep 30, 2025

Jun 30, 2025

Mar 31, 2025

Dec 31, 2024

Single family residential

construction

$

613,288

22.4

%

$

665,194

23.2

%

$

696,569

24.2

%

$

727,417

25.6

%

$

778,067

27.2

%

Land development

252,650

9.2

%

248,616

8.7

%

227,254

7.9

%

225,784

7.9

%

260,158

9.1

%

Raw land

220,169

8.0

%

230,021

8.0

%

248,380

8.7

%

261,918

9.2

%

278,892

9.7

%

Residential lots

199,709

7.3

%

203,396

7.1

%

217,835

7.6

%

219,115

7.7

%

209,850

7.3

%

Commercial lots

59,683

2.2

%

59,853

2.1

%

55,176

1.9

%

56,343

2.0

%

59,044

2.1

%

Commercial construction and other

1,396,850

50.9

%

1,459,255

50.9

%

1,428,985

49.7

%

1,355,587

47.6

%

1,274,619

44.6

%

Net unaccreted discount

(894)

(1,056)

(961)

(1,082)

(1,349)

Total construction loans

$

2,741,455

$

2,865,279

$

2,873,238

$

2,845,082

$

2,859,281

Non-Owner Occupied Commercial Real Estate Loans by Metropolitan Statistical Area (MSA) as of December 31, 2025

Houston

Dallas

Austin

OK City

Tulsa

Other (T)

Total

Collateral Type

Shopping center/retail

$

235,413

$

232,707

$

56,771

$

15,277

$

10,103

$

324,838

$

875,109

Commercial and industrial

buildings

178,079

99,941

21,201

32,892

11,709

250,095

593,917

Office buildings

105,380

275,630

67,950

43,406

4,115

97,139

593,620

Medical buildings

105,572

16,583

1,626

42,405

26,358

64,697

257,241

Apartment buildings

163,772

125,836

115,077

10,914

12,734

213,785

642,118

Hotel

111,368

128,965

29,744

13,055

—

163,981

447,113

Other

175,802

63,257

83,831

5,568

6,767

77,319

412,544

Total

$

1,075,386

$

942,919

$

376,200

$

163,517

$

71,786

$

1,191,854

$

3,821,662

(U)

Acquired Loans

Non-PCD Loans

PCD Loans

Total Acquired Loans

Balance at

Acquisition

Date

Balance at

Sep 30,

2025

Balance at

Dec 31,

2025

Balance at

Acquisition

Date

Balance at

Sep 30,

2025

Balance at

Dec 31,

2025

Balance at

Acquisition

Date

Balance at

Sep 30,

2025

Balance at

Dec 31,

2025

Loan marks:

Acquired banks (V)

$

388,625

$

20,406

$

17,479

$

332,400

$

5,472

$

5,267

$

721,025

$

25,878

$

22,746

Acquired portfolio

loan balances:

Acquired banks (V)

14,323,981

1,609,115

1,498,731

1,376,673

350,644

300,010

15,700,654

(W)

1,959,759

1,798,741

Acquired portfolio

loan balances less

loan marks

$

13,935,356

$

1,588,709

$

1,481,252

$

1,044,273

$

345,172

$

294,743

$

14,979,629

$

1,933,881

$

1,775,995

(T)

Includes other MSA and non-MSA regions.

(U)

Represents a portion of total commercial real estate loans of $5.776 billion as of December 31, 2025.

(V)

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, FirstCapital Bank and Lone Star Bank.

(W)

Actual principal balances acquired.

Prosperity Bancshares, Inc. ®

Financial Highlights (Unaudited)

(Dollars in thousands)

Three Months Ended

Year-to-Date

Dec 31,

2025

Sep 30,

2025

Jun 30,

2025

Mar 31,

2025

Dec 31,

2024

Dec 31,

2025

Dec 31,

2024

Asset Quality

Nonaccrual loans

$

137,217

$

105,529

$

102,031

$

73,287

$

73,647

$

137,217

$

73,647

Accruing loans 90 or more days past due

317

268

576

91

2,189

317

2,189

Total nonperforming loans

137,534

105,797

102,607

73,378

75,836

137,534

75,836

Repossessed assets

12

16

6

29

4

12

4

Other real estate

13,296

13,750

7,874

8,012

5,701

13,296

5,701

Total nonperforming assets

$

150,842

$

119,563

$

110,487

$

81,419

$

81,541

$

150,842

$

81,541

Nonperforming assets:

Commercial and industrial (includes energy)

$

57,237

$

27,880

$

27,680

$

8,966

$

10,080

$

57,237

$

10,080

Construction, land development and other

land loans

2,183

583

1,859

1,952

4,481

2,183

4,481

1-4 family residential (includes home

equity)

60,296

57,241

50,501

42,481

44,824

60,296

44,824

Commercial real estate (includes multi-

family residential)

9,215

11,471

12,865

12,257

18,861

9,215

18,861

Agriculture (includes farmland)

16,713

17,080

17,547

15,725

3,208

16,713

3,208

Consumer and other

5,198

5,308

35

38

87

5,198

87

Total

$

150,842

$

119,563

$

110,487

$

81,419

$

81,541

$

150,842

$

81,541

Number of loans/properties

449

424

392

363

368

449

368

Allowance for credit losses on loans

$

333,742

$

339,626

$

346,084

$

349,101

$

351,805

$

333,742

$

351,805

Net charge-offs (recoveries):

Commercial and industrial (includes

energy)

$

5,388

$

3,341

$

1,044

$

330

$

405

$

10,103

$

6,774

Construction, land development and other

land loans

(154)

34

(3)

(156)

294

(279)

779

1-4 family residential (includes home

equity)

175

853

342

1,051

180

2,421

1,471

Commercial real estate (includes multi-

family residential)

(665)

1,015

55

178

362

583

222

Agriculture (includes farmland)

(5)

(40)

(14)

—

5

(59)

126

Consumer and other

1,145

1,255

1,593

1,301

1,346

5,294

5,186

Total

$

5,884

$

6,458

$

3,017

$

2,704

$

2,592

$

18,063

$

14,558

Asset Quality Ratios

Nonperforming assets to average interest-

earning assets

0.46

%

0.36

%

0.33

%

0.24

%

0.23

%

0.45

%

0.23

%

Nonperforming assets to loans and other real

estate

0.69

%

0.54

%

0.50

%

0.37

%

0.37

%

0.69

%

0.37

%

Net charge-offs to average loans (annualized)

0.11

%

0.12

%

0.05

%

0.05

%

0.05

%

0.08

%

0.07

%

Allowance for credit losses on loans to total

loans

1.53

%

1.54

%

1.56

%

1.59

%

1.59

%

1.53

%

1.59

%

Allowance for credit losses on loans to total

loans, excluding Warehouse Purchase Program

loans (G)

1.63

%

1.64

%

1.66

%

1.67

%

1.67

%

1.63

%

1.67

%

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

Year-to-Date

Dec 31,

2025

Sep 30,

2025

Jun 30,

2025

Mar 31,

2025

Dec 31,

2024

Dec 31,

2025

Dec 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)

$

1.49

$

1.45

$

1.42

$

1.37

$

1.37

$

5.72

$

5.05

Net income

$

139,907

$

137,556

$

135,155

$

130,225

$

130,076

$

542,843

$

479,386

Merger related provision for credit losses, net of

tax (X)

—

—

—

—

—

—

7,162

Merger related expenses, net of tax (X)

212

49

—

—

—

261

3,511

FDIC special assessment, net of tax (X)

(2,807)

—

—

—

—

(2,807)

2,807

Net gain on sale or write-up of securities, net of

tax (X)

—

—

—

—

—

—

(8,884)

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 (X):

$

137,312

$

137,605

$

135,155

$

130,225

$

130,076

$

540,297

$

483,982

Weighted average diluted shares outstanding

94,044

95,093

95,277

95,266

95,264

94,917

95,000

Merger related provision for credit losses, net of tax,

per diluted common share (X)

$

—

$

—

$

—

$

—

$

—

$

—

$

0.08

Merger related expenses, net of tax, per diluted

common share (X)

$

—

$

—

$

—

$

—

$

—

$

—

$

0.04

FDIC special assessment, net of tax, per diluted

common share (X)

$

(0.03)

$

—

$

—

$

—

$

—

$

(0.03)

$

0.03

Net gain on sale or write-up of securities, net of tax,

per diluted common

share (X)

$

—

$

—

$

—

$

—

$

—

$

—

$

(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: (X)

$

1.46

$

1.45

$

1.42

$

1.37

$

1.37

$

5.69

$

5.11

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)

1.49

%

1.44

%

1.41

%

1.34

%

1.31

%

1.42

%

1.21

%

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 (X):

$

137,312

$

137,605

$

135,155

$

130,225

$

130,076

$

540,297

$

483,982

Average total assets

$

37,665,928

$

38,129,863

$

38,391,214

$

38,957,078

$

39,627,399

$

38,280,998

$

39,600,835

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) (X)

1.46

%

1.44

%

1.41

%

1.34

%

1.31

%

1.41

%

1.22

%

(X)

Calculated assuming a federal tax rate of 21.0%.

Three Months Ended

Year-to-Date

Dec 31,

2025

Sep 30,

2025

Jun 30,

2025

Mar 31,

2025

Dec 31,

2024

Dec 31,

2025

Dec 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)

7.30

%

7.18

%

7.13

%

6.94

%

7.00

%

7.14

%

6.56

%

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 (X):

$

137,312

$

137,605

$

135,155

$

130,225

$

130,076

$

540,297

$

483,982

Average shareholders' equity

$

7,668,802

$

7,657,978

$

7,586,290

$

7,505,801

$

7,428,665

$

7,605,310

$

7,305,071

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) (X)

7.16

%

7.19

%

7.13

%

6.94

%

7.00

%

7.10

%

6.63

%

Reconciliation of return on average common

equity to return on average tangible common

equity:

Net income

$

139,907

$

137,556

$

135,155

$

130,225

$

130,076

$

542,843

$

479,386

Average shareholders' equity

$

7,668,802

$

7,657,978

$

7,586,290

$

7,505,801

$

7,428,665

$

7,605,310

$

7,305,071

Less: Average goodwill and other intangible assets

(3,556,680)

(3,560,083)

(3,563,866)

(3,567,421)

(3,573,197)

(3,561,978)

(3,537,930)

Average tangible shareholders' equity

$

4,112,122

$

4,097,895

$

4,022,424

$

3,938,380

$

3,855,468

$

4,043,332

$

3,767,141

Return on average tangible common equity (F)

13.61

%

13.43

%

13.44

%

13.23

%

13.50

%

13.43

%

12.73

%

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 (X):

$

137,312

$

137,605

$

135,155

$

130,225

$

130,076

$

540,297

$

483,982

Average shareholders' equity

$

7,668,802

$

7,657,978

$

7,586,290

$

7,505,801

$

7,428,665

$

7,605,310

$

7,305,071

Less: Average goodwill and other intangible assets

(3,556,680)

(3,560,083)

(3,563,866)

(3,567,421)

(3,573,197)

(3,561,978)

(3,537,930)

Average tangible shareholders' equity

$

4,112,122

$

4,097,895

$

4,022,424

$

3,938,380

$

3,855,468

$

4,043,332

$

3,767,141

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) (X)

13.36

%

13.43

%

13.44

%

13.23

%

13.50

%

13.36

%

12.85

%

Reconciliation of book value per share to tangible

book value per share:

Shareholders' equity

$

7,616,140

$

7,664,938

$

7,599,736

$

7,517,061

$

7,438,495

$

7,616,140

$

7,438,495

Less: Goodwill and other intangible assets

(3,554,732)

(3,558,321)

(3,561,923)

(3,565,533)

(3,569,176)

(3,554,732)

(3,569,176)

Tangible shareholders' equity

$

4,061,408

$

4,106,617

$

4,037,813

$

3,951,528

$

3,869,319

$

4,061,408

$

3,869,319

Period end shares outstanding

93,058

94,993

95,277

95,258

95,275

93,058

95,275

Tangible book value per share

$

43.64

$

43.23

$

42.38

$

41.48

$

40.61

$

43.64

$

40.61

Three Months Ended

Year-to-Date

Dec 31,

2025

Sep 30,

2025

Jun 30,

2025

Mar 31,

2025

Dec 31,

2024

Dec 31,

2025

Dec 31,

2024

Reconciliation of equity to assets ratio to period

end tangible equity to period end tangible assets

ratio:

Tangible shareholders' equity

$

4,061,408

$

4,106,617

$

4,037,813

$

3,951,528

$

3,869,319

$

4,061,408

$

3,869,319

Total assets

$

38,463,425

$

38,330,469

$

38,417,352

$

38,764,675

$

39,566,738

$

38,463,425

$

39,566,738

Less: Goodwill and other intangible assets

(3,554,732)

(3,558,321)

(3,561,923)

(3,565,533)

(3,569,176)

(3,554,732)

(3,569,176)

Tangible assets

$

34,908,693

$

34,772,148

$

34,855,429

$

35,199,142

$

35,997,562

$

34,908,693

$

35,997,562

Period end tangible equity to period end tangible

assets ratio

11.63

%

11.81

%

11.58

%

11.23

%

10.75

%

11.63

%

10.75

%

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

$

333,742

$

339,626

$

346,084

$

349,101

$

351,805

$

333,742

$

351,805

Total loans

$

21,805,368

$

22,027,769

$

22,197,388

$

21,977,570

$

22,149,209

$

21,805,368

$

22,149,209

Less: Warehouse Purchase Program loans

(1,304,798)

(1,278,178)

(1,287,440)

(1,057,893)

(1,080,903)

(1,304,798)

(1,080,903)

Total loans less Warehouse Purchase Program

$

20,500,570

$

20,749,591

$

20,909,948

$

20,919,677

$

21,068,306

$

20,500,570

$

21,068,306

Allowance for credit losses on loans to total loans

excluding Warehouse Purchase Program

1.63

%

1.64

%

1.66

%

1.67

%

1.67

%

1.63

%

1.67

%

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

$

138,712

$

138,635

$

138,565

$

140,301

$

141,545

$

556,213

$

570,573

Net interest income

$

274,953

$

273,435

$

267,722

$

265,382

$

267,774

$

1,081,492

$

1,026,495

Noninterest income

42,780

41,238

42,982

41,301

39,837

168,301

165,809

Less: net gain (loss) on sale or write-down of

assets

35

3

1,414

(235)

584

1,217

2,824

Less: net gain on sale or write-up of securities

—

—

—

—

—

—

11,245

Noninterest income excluding net gains and losses

on the sale, write-down or write-up of assets and

securities

42,745

41,235

41,568

41,536

39,253

167,084

151,740

Total income excluding net gains and losses on

the sale, write-down or write-up of assets and

securities

$

317,698

$

314,670

$

309,290

$

306,918

$

307,027

$

1,248,576

$

1,178,235

Efficiency ratio, excluding net gains and losses on

the sale, write-down or write-up of assets and

securities

43.66

%

44.06

%

44.80

%

45.71

%

46.10

%

44.55

%

48.43

%

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

$

138,712

$

138,635

$

138,565

$

140,301

$

141,545

$

556,213

$

570,573

Less: merger related expenses

268

62

—

—

—

330

4,444

Less: FDIC special assessment

(3,554)

—

—

—

—

(3,554)

3,554

Noninterest expense excluding merger related

expenses and FDIC special assessment

$

141,998

$

138,573

$

138,565

$

140,301

$

141,545

$

559,437

$

562,575

Net interest income

$

274,953

$

273,435

$

267,722

$

265,382

$

267,774

$

1,081,492

$

1,026,495

Noninterest income

42,780

41,238

42,982

41,301

39,837

168,301

165,809

Less: net gain (loss) on sale or write down of

assets

35

3

1,414

(235)

584

1,217

2,824

Less: net gain on sale or write-up of securities

—

—

—

—

—

—

11,245

Noninterest income excluding net gains and losses

on the sale, write-down or write-up of assets and

securities

42,745

41,235

41,568

41,536

39,253

167,084

151,740

Total income excluding net gains and losses on

the sale, write-down or write-up of assets and

securities

$

317,698

$

314,670

$

309,290

$

306,918

$

307,027

$

1,248,576

$

1,178,235

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

44.70

%

44.04

%

44.80

%

45.71

%

46.10

%

44.81

%

47.75

%

SOURCE Prosperity Bancshares, Inc.