/PROSPERITY BANCSHARES, INC.® REPORTS SECOND QUARTER 2026 EARNINGS

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PROSPERITY BANCSHARES, INC.® REPORTS SECOND QUARTER 2026 EARNINGS

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2026/07/29Earnings

PROSPERITY BANCSHARES, INC.® REPORTS SECOND QUARTER 2026 EARNINGS

Completed the merger of Stellar Bancorp, Inc. into Prosperity Bancshares on July 1, 2026
Second quarter net interest margin increased 29 basis points to 3.47% compared to second quarter 2025
Second quarter net income of $168.6 million, and $162.7 million(1) excluding non-recurring items, an increase of 20.4% compared to second quarter 2025
Second quarter earnings per share (diluted) of $1.67, or $1.62 excluding non-recurring items, an increase of 14.1% compared to second quarter 2025
Noninterest-bearing deposits of $10.7 billion, representing 32.9% of total deposits
Allowance for credit losses on loans and on off-balance sheet credit exposure of $420.5 million and allowance for credit losses on loans to total loans, excluding Warehouse Purchase Program loans, of 1.61%(1)
Nonperforming assets remain low at 0.34% of second quarter average interest-earning assets
Return (annualized) on second quarter average assets of 1.55%, average common equity of 8.14% and average tangible common equity of 15.48%(1)
Repurchased 200 thousand shares of common stock during second quarter 2026, and 1.0 million shares during 2026

HOUSTON, July 29, 2026 — Prosperity Bancshares, Inc.® (NYSE: PB) ("Prosperity Bancshares"), the parent company of Prosperity Bank® (collectively, "Prosperity"), reported net income of $168.6 million for the quarter ended June 30, 2026, compared with $135.2 million for the same period in 2025. Net income per diluted common share was $1.67 for the quarter ended June 30, 2026, compared with $1.42 for the same period in 2025. On January 1, 2026, American Bank Holding Corporation ("American") merged into Prosperity Bancshares and American Bank, N.A. ("American Bank") merged into Prosperity Bank (collectively, the "American Merger"), and on February 1, 2026, Southwest Bancshares, Inc. ("Southwest") merged into Prosperity Bancshares and Texas Partners Bank ("Texas Partners") merged into Prosperity Bank (collectively, the "Southwest Merger"). During the second quarter of 2026, Prosperity incurred a net gain of $8.2 million, or $0.06(1) per diluted common share as a result of the exchange and conversion of Visa Class B-2 stock and the sale of investment securities, partially offset by merger related expenses of $755 thousand, or $0.01(1)per diluted common share. Excluding the net gain and merger related expenses, net income was $162.7(1) million and net income per diluted common share was $1.62(1) for the second quarter of 2026. The annualized return on second quarter average assets was 1.55%. Nonperforming assets remained low at 0.34% of second quarter average interest-earning assets. Subsequent to quarter end, on July 1, 2026, Stellar Bancorp, Inc. ("Stellar") merged into Prosperity Bancshares and Stellar Bank ("Stellar Bank") merged into Prosperity Bank (collectively, the "Stellar Merger").

"I am excited to announce that on July 1, 2026, Prosperity Bancshares completed the merger of Stellar and its wholly owned subsidiary Stellar Bank, headquartered in Houston, Texas. Stellar Bank operated 52 banking offices including its main office in Houston and banking offices in the Houston, Beaumont and East Texas areas and in Dallas, Texas. I am also pleased to announce that in connection with the mergers, Robert Franklin, former CEO of Stellar, and Joe Swinbank, a former Stellar director, have joined the Prosperity Bancshares Board of Directors and that Ray Vitulli, former CEO of Stellar Bank, and Pat Parsons, a former Stellar Bank director, have joined the Prosperity Bank Board of Directors. Pat was instrumental in building Stellar Bank's Beaumont franchise over the years," said David Zalman, Prosperity's Senior Chairman and Chief Executive Officer.

"Texas has one of the strongest and most diverse state economies in the U.S., ranking as the second largest by GDP after California and approximately the 8th largest economy in the world. Oklahoma has a smaller but stable economy, heavily influenced by oil and gas, with more modest growth. Texas continues to shine as more people and companies move to the state because of the business-friendly political structure and no state income tax," stated Zalman.

"Excluding the gain on Visa Class B-2 stock exchange net of investment securities sales and merger related expenses, as noted above, net income increased 20.4% and diluted earnings per share increased 14.1% compared with the same period last year," added Zalman.

"We are pleased with our growth. Giving effect to the Stellar Bank merger, our assets are over $53 billion compared with $38 billion as of June 30, 2025. This represents a 39% growth over the year. I want to thank everyone involved in our company for helping to make it the success it has become," concluded Zalman.

Results of Operations for the Three Months Ended June 30, 2026

For the three months ended June 30, 2026, net income was $168.6 million(2) or $1.67 per diluted common share compared with $135.2 million(3) or $1.42 per diluted common share for the same period in 2025. Net income and net income per diluted common share for the second quarter of 2026 were primarily impacted by an increase in net interest income and a gain on Visa Class B-2 stock exchange net of investment securities sales of $8.2 million, partially offset by an increase in noninterest expenses related to the American and Southwest operations and an increase in provision for income taxes. On a linked quarter basis, net income was $168.6 million(2) or $1.67 per diluted common share for the three months ended June 30, 2026, compared with $116.3 million(4) or $1.16 for the three months ended March 31, 2026. The change was primarily due to an increase in net interest income, lower merger related expenses and a gain on Visa Class B-2 stock exchange net of investment securities sales of $8.2 million. Annualized returns on average assets, average common equity and average tangible common equity for the three months ended June 30, 2026, were 1.55%, 8.14% and 15.48%(1), respectively.

Excluding the gain on Visa Class B-2 stock exchange net of investment securities sales, net of tax, and merger related expenses, net of tax, net income was $162.7(1)million and earnings per diluted common share was $1.62(1) for the three months ended June 30, 2026, and annualized returns on average assets, average common equity and average tangible common equity were 1.50%(1), 7.85%(1) and 14.93%(1), respectively. Prosperity's efficiency ratio (excluding net gains and losses on the sale, write-down or write-up of assets and securities) was 45.99%(1) for the three months ended June 30, 2026, and excluding the merger related expenses, the efficiency ratio was 45.79%(1).

Net interest income before provision for credit losses was $330.6 million for the three months ended June 30, 2026, compared with $267.7 million for the same period in 2025, an increase of $62.8 million or 23.5%. The net interest margin on a tax equivalent basis was 3.47% for the three months ended June 30, 2026, compared with 3.18% for the same period in 2025. The changes to both measures were primarily due to the repricing of assets, a decrease in the average balance and average rate on other borrowings and the impact of the American Merger and the Southwest Merger. Net interest income before provision for credit losses increased $9.4 million or 2.9% to $330.6 million for the three months ended June 30, 2026, compared with $321.2 million for the three months ended March 31, 2026. The net interest margin on a tax equivalent basis was 3.47% for the three months ended June 30, 2026, compared with 3.51% for the three months ended March 31, 2026. The decrease was primarily due to one-time loan interest income from a nonaccrual loan in the first quarter of 2026.

Noninterest income was $60.7 million for the three months ended June 30, 2026, compared with $43.0 million for the same period in 2025, an increase of $17.7 million or 41.2%. The change was primarily due to the American Merger and the Southwest Merger and a gain on Visa Class B-2 stock exchange net of investment securities sales of $8.2 million. Noninterest income was $60.7 million for the three months ended June 30, 2026, compared with $46.5 million for the three months ended March 31, 2026, an increase of $14.2 million or 30.6%. The change was primarily due to a gain on Visa Class B-2 stock exchange net of investment securities sales of $8.2 million and an increase in other noninterest income.

Noninterest expense was $176.2 million for the three months ended June 30, 2026, compared with $138.6 million for the same period in 2025, an increase of $37.6 million. The change was primarily due to an increase in salaries and benefits and an increase in additional expenses related to three months of American and Southwest operations. Noninterest expense was $176.2 million for the three months ended June 30, 2026, compared with $217.3 million for the three months ended March 31, 2026, a decrease of $41.1 million, which was primarily due to lower merger related expenses.

Results of Operations for the Six Months Ended June 30, 2026

For the six months ended June 30, 2026, net income was $284.9 million(5) compared with $265.4 million(6) for the same period in 2025, an increase of $19.5 million or 7.3%. Net income per diluted common share was $2.84 for the six months ended June 30, 2026, compared with $2.79 for the same period in 2025, an increase of 1.8%. Net income and net income per diluted common share for the six months ended June 30, 2026, were impacted by the American Merger and the Southwest Merger, merger related expenses of $43.3 million and a gain on Visa Class B-2 stock exchange net of investment securities sales of $8.2 million. Returns on average assets, average common equity and average tangible common equity for the six months ended June 30, 2026, were 1.33%, 6.93% and 13.02%(1), respectively.

Excluding the merger related expenses, net of tax, and gain on Visa Class B-2 stock exchange net of investment securities sales, net of tax, net income was $312.5(1)million and earnings per diluted common share was $3.12(1) for the six months ended June 30, 2026, and annualized returns on average assets, average common equity and average tangible common equity were 1.46%(1), 7.60%(1)and 14.29%(1), respectively. Prosperity's efficiency ratio (excluding net gains and losses on the sale or write-down of assets and securities) was 52.44%(1) for the six months ended June 30, 2026; and excluding merger related expenses, the efficiency ratio was 46.67%(1).

Net interest income before provision for credit losses for the six months ended June 30, 2026, was $651.7 million compared with $533.1 million for the same period in 2025, an increase of $118.6 million or 22.2%. The net interest margin on a tax equivalent basis for the six months ended June 30, 2026, was 3.49% compared with 3.16% for the same period in 2025. The changes to both measures were primarily due to the repricing of assets, the impact of the American Merger and the Southwest Merger and a decrease in the average balance and average rate on other borrowings.

Noninterest income was $107.2 million for the six months ended June 30, 2026, compared with $84.3 million for the same period in 2025, an increase of $22.9 million or 27.2%, primarily due to the American Merger and the Southwest Merger and a gain on Visa Class B-2 stock exchange net of investment securities sales of $8.2 million.

Noninterest expense was $393.5 million for the six months ended June 30, 2026, compared with $278.9 million for the same period in 2025, an increase of $114.6 million, primarily due to an increase in merger related expenses of $43.3 million, an increase in salaries and benefits and an increase in additional expenses related to six months of American operations and five months of Southwest operations.

Balance Sheet Information

Prosperity had $43.873 billion in total assets at June 30, 2026, an increase of $5.455 billion or 14.2%, compared with $38.417 billion at June 30, 2025, primarily due to the American Merger and the Southwest Merger. Linked quarter total assets increased by $253.3 million compared with $43.619 billion at March 31, 2026.

Loans were $25.028 billion at June 30, 2026, an increase of $2.831 billion or 12.8% from $22.197 billion at June 30, 2025. Linked quarter loans decreased $260.0 million from $25.288 billion at March 31, 2026. Loans, excluding Warehouse Purchase Program loans, were $23.738 billion at June 30, 2026, compared with $20.910 billion at June 30, 2025, an increase of $2.828 billion or 13.5%, and compared with $23.855 billion at March 31, 2026, a decrease of $117.0 million.

Deposits were $32.600 billion at June 30, 2026, an increase of $5.126 billion or 18.7% from $27.473 billion at June 30, 2025, primarily due to the American Merger and the Southwest Merger. Linked quarter deposits decreased $33.1 million from $32.633 billion at March 31, 2026.

Asset Quality

Nonperforming assets totaled $130.6 million or 0.34% of quarterly average interest-earning assets at June 30, 2026, compared with $110.5 million or 0.33% of quarterly average interest-earning assets at June 30, 2025 and $122.1 million or 0.33% of quarterly average interest-earning assets at March 31, 2026.

The allowance for credit losses on loans and off-balance sheet credit exposures was $420.5 million at June 30, 2026, compared with $383.7 million at June 30, 2025 and $421.5 million at March 31, 2026. There was no provision for credit losses for the three months and six months ended June 30, 2026 and 2025.

The allowance for credit losses on loans was $382.8 million or 1.53% of total loans at June 30, 2026, compared with $346.1 million or 1.56% of total loans at June 30, 2025 and $383.8 million or 1.52% of total loans at March 31, 2026. The allowance for credit losses on loans increased during the six months ended June 30, 2026 due to the American Merger and the Southwest Merger, of which $47.5 million was attributable to the American Merger and $45.1 million was attributable to the Southwest Merger. Excluding Warehouse Purchase Program loans, the allowance for credit losses on loans to total loans was 1.61%(1) at June 30, 2026, compared with 1.66%(1) at June 30, 2025 and 1.61%(1) at March 31, 2026.

Net charge-offs were $2.2 million for the three months ended June 30, 2026, compared with net charge-offs of $3.0 million for the three months ended June 30, 2025 and $41.3 million for the three months ended March 31, 2026. Net charge-offs for the three months ended June 30, 2026, included $962 thousand related to resolved purchased credit deteriorated ("PCD") loans, which had specific reserves that were allocated to the charge-offs. For the three months ended June 30, 2026, $10.3 million of reserves on resolved PCD loans without any related charge-offs were released to the general reserve.

Net charge-offs were $43.5 million for the six months ended June 30, 2026, compared with net charge-offs of $5.7 million for the six months ended June 30, 2025. Net charge-offs for the six months ended June 30, 2026, included a $39.2 million increase in net charge-offs for commercial and industrial loans. Additionally, due to the American Merger and the Southwest Merger, reserves increased by Day One accounting for PCD loans of $53.3 million and Day One accounting for purchased seasoned loans ("PSLs") of $39.3 million. Further, $12.3 million of reserves on resolved PCD loans without any related charge-offs were released to the general reserve.

Visa Class B-2 Stock Exchange

During the second quarter 2026, Prosperity tendered all of its shares of Visa, Inc. ("Visa") Class B-2 common stock in exchange for a combination of Visa Class B-3 common stock and Visa Class C common stock, pursuant to the terms and subject to the conditions of Visa's public exchange offer, which expired on May 8, 2026. Prosperity recorded an unrealized gain of $12.2 million during the second quarter 2026 based on the conversion privilege of the Class C common stock and the closing price of Visa Class A common stock. In the exchange, Prosperity received 24,246 shares of Class B-3 stock, recorded at zero cost basis, and 9,137 shares of Class C common stock and subsequently sold 3,045 shares of Class C stock. Prosperity intends to sell all remaining shares of Class C stock as permitted by the exchange agreement.

Dividend

Prosperity Bancshares declared a third quarter 2026 cash dividend of $0.60 per share to be paid on October 1, 2026, to all shareholders of record as of September 15, 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 2026 stock repurchase program, Prosperity Bancshares repurchased approximately 200 thousand shares of its common stock at an average weighted price of $68.34 per share for a total of $13.7 million during the three months ended June 30, 2026, and approximately 1.04 million shares of its common stock at an average weighted price of $68.19 per share for a total of $70.8 million during the six months ended June 30, 2026.

Acquisition of Stellar Bancorp, Inc.

On July 1, 2026, Prosperity Bancshares completed the merger of Stellar and its wholly owned subsidiary Stellar Bank, headquartered in Houston, Texas. Stellar Bank operated 52 banking offices including its main office in Houston and banking offices in the Houston, Beaumont and East Texas areas and in Dallas, Texas. As of June 30, 2026, Stellar, on a consolidated basis, reported total assets of $10.413 billion, total loans of $7.510 billion and total deposits of $8.716 billion.

Pursuant to the terms of the definitive agreement, Prosperity Bancshares issued 19,371,499 shares of its common stock plus approximately $578.66 million in cash for each outstanding share of Stellar common stock.

Acquisition of Southwest Bancshares, Inc.

On February 1, 2026, Prosperity completed the acquisition of Southwest and its wholly owned subsidiary Texas Partners, headquartered in San Antonio, Texas. Texas Partners operated 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.

Pursuant to the terms of the definitive agreement, Prosperity Bancshares issued 4,094,974 shares of its common stock for all outstanding shares of Southwest common stock. This resulted in goodwill of $134.9 million as of June 30, 2026, which does not include all the subsequent fair value adjustments that have not yet been finalized. Additionally, Prosperity recognized $33.8 million of core deposit intangibles as of June 30, 2026.

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 two 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.

Pursuant to the terms of the definitive agreement, Prosperity Bancshares issued 4,439,938 shares of its common stock for all outstanding shares of American common stock. This resulted in goodwill of $185.9 million as of June 30, 2026, which does not include all the subsequent fair value adjustments that have not yet been finalized. Additionally, Prosperity recognized $31.1 million of core deposit intangibles as of June 30, 2026.

Conference Call

Prosperity's management team will host a conference call on Wednesday, July 29, 2026, at 11:30 a.m. Eastern Time (10:30 a.m. Central Time) to discuss Prosperity's second quarter 2026 earnings. 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 9578428.

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 expenses, net of tax, FDIC special assessment, net of tax and net gain on the sale or write-up of securities; 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 and securities, write-down or write-up of assets; 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, provide a more complete understanding of factors and trends affecting Prosperity's business and allow 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 June 30, 2026, Prosperity Bancshares, Inc.® is a $43.873 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 363 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; 21 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; 8 in the Tulsa, Oklahoma area; 18 in the Central, South Texas and San Antonio areas doing business as American Bank; 11 in the San Antonio area doing business as Texas Partners Bank and 52 in Houston, Beaumont, Dallas and the East Texas areas doing business as Stellar Bank.

Cautionary Notes on Forward-Looking Statements

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: This release contains, and the remarks by Prosperity's management on the conference call may contain, forward-looking statements within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, 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 Bancshares and its subsidiaries. These forward-looking statements may include information about Prosperity's possible or assumed future economic performance or future results of operations, including future revenues, income, expenses, provision for credit losses, provision for taxes, effective tax rate, earnings per share and cash flows and Prosperity's future capital expenditures and dividends, future financial condition and changes therein, including changes in Prosperity's loan portfolio and allowance for credit losses, changes in deposits, borrowings and the investment securities portfolio, future capital structure or changes therein, as well as the plans and objectives of management for Prosperity's future operations, future or proposed acquisitions, the future or expected effect of acquisitions on Prosperity's operations, results of operations, financial condition, and future economic performance, statements about the anticipated benefits of any proposed transactions, 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 currently believes to be valid. Because forward-looking statements relate to future results and occurrences, many of which are outside of Prosperity's control, 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); the possibility that the anticipated benefits of an acquisition transaction are not realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of two companies or as a result of the strength of the economy and competitive factors generally; 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. Prosperity disclaims 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 factors are discussed in Prosperity's Annual Report on Form 10-K for the year ended December 31, 2025, and other reports and statements Prosperity has filed with the Securities and Exchange Commission ("SEC"). Copies of the SEC filings for Prosperity may be downloaded from the Internet at no charge from http://www.prosperitybankusa.com.

(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 $4.6 million, net of tax, primarily comprised of loan discount accretion of $4.0 million, and net gain on sale or write-up of securities of $8.2 million for the three months ended June 30, 2026.

(3)

Includes purchase accounting adjustments of $2.8 million, net of tax, primarily comprised of loan discount accretion of $3.1 million for the three months ended June 30, 2025.

(4)

Includes purchase accounting adjustments of $4.8 million, net of tax, primarily comprised of loan discount accretion of $3.7 million, and merger related provision for credit losses of $42.5 million for the three months ended March 31, 2026.

(5)

Includes purchase accounting adjustments of $9.4 million, net of tax, primarily comprised of loan discount accretion of $7.8 million, merger related provision for credit losses of $43.3 million and net gain on sale or write-up of securities of $8.2 million for the six months ended June 30, 2026.

(6)

Includes purchase accounting adjustments of $6.0 million, net of tax, primarily comprised of loan discount accretion of $6.4 million for the six months ended June 30, 2025.

Prosperity Bancshares, Inc.® Financial Highlights (Unaudited) (In thousands)

Jun 30, 2026

Mar 31, 2026

Dec 31, 2025

Sep 30, 2025

Jun 30, 2025

Balance Sheet Data (at period end)

Loans held for sale

18,656

21,925

14,155

11,297

6,004

Loans held for investment

23,719,186

23,832,909

20,486,415

20,738,294

20,903,944

Loans held for investment - Warehouse Purchase Program

1,290,156

1,433,152

1,304,798

1,278,178

1,287,440

Total loans

25,027,998

25,287,986

21,805,368

22,027,769

22,197,388

Investment securities(A)

12,339,080

11,951,591

10,613,425

10,232,462

10,608,104

Federal funds sold

194

209

217

210

197

Allowance for credit losses on loans

(382,841)

(383,840)

(333,742)

(339,626)

(346,084)

Cash and due from banks

1,683,062

1,547,967

1,747,511

1,766,115

1,304,993

Goodwill

3,823,920

3,822,283

3,503,127

Core deposit intangibles, net

105,582

111,243

51,605

55,194

58,796

Other real estate owned

11,296

13,257

13,296

13,750

7,874

Fixed assets, net

428,478

429,775

383,449

378,776

374,602

Other assets

835,742

838,712

679,169

692,692

708,355

Total assets

43,872,511

43,619,183

38,463,425

38,330,469

38,417,352

Noninterest-bearing deposits

10,739,937

10,580,920

9,467,911

9,522,028

9,426,657

Interest-bearing deposits

21,859,750

22,051,836

19,014,573

18,260,066

18,046,754

Total deposits

32,599,687

32,632,756

28,482,484

27,782,094

27,473,411

Other borrowings

2,400,000

2,200,000

1,950,000

2,400,000

2,900,000

Securities sold under repurchase agreements

199,576

176,099

201,216

185,797

183,572

Subordinated notes and junior subordinated debentures

70,000

76,186

—

Allowance for credit losses on off-balance sheet credit exposures

37,646

Other liabilities

260,343

288,645

175,939

259,994

222,987

Total liabilities

35,567,252

35,411,332

30,847,285

30,665,531

30,817,616

Shareholders' equity(B)

8,305,259

8,207,851

7,616,140

7,664,938

7,599,736

Total liabilities and equity

43,872,511

43,619,183

38,463,425

38,330,469

38,417,352

(A)

Includes ($319), $44, ($375), ($1,987) and ($1,657) in unrealized losses on available for sale securities for the quarterly periods ended June 30, 2026, March 31, 2026, December 31, 2025, September 30, 2025, and June 30, 2025, respectively.

(B)

Includes ($251), $35, ($296), ($1,570) and ($1,309) in after-tax unrealized losses on available for sale securities for the quarterly periods ended June 30, 2026, March 31, 2026, December 31, 2025, September 30, 2025, and June 30, 2025, respectively.

Prosperity Bancshares, Inc.® Financial Highlights (Unaudited) (In thousands)

Three Months Ended

Year-to-Date

Jun 30, 2026

Mar 31, 2026

Dec 31, 2025

Sep 30, 2025

Jun 30, 2025

Jun 30, 2026

Jun 30, 2025

Income Statement Data

Interest income:

Loans

369,574

361,756

321,516

329,445

325,490

731,330

644,513

Securities(C)

81,200

70,531

56,767

58,207

57,836

151,731

115,722

Federal funds sold and other earning assets

8,719

9,488

8,364

10,455

9,438

18,207

25,334

Total interest income

459,493

441,775

386,647

398,107

392,764

901,268

785,569

Interest expense:

Deposits

107,084

104,237

94,625

95,965

93,790

211,321

189,387

Other borrowings

20,094

14,783

16,028

27,613

30,101

34,877

60,593

Securities sold under repurchase agreements

1,019

902

1,041

1,094

1,151

1,921

2,485

Subordinated notes and junior subordinated debentures

746

703

—

1,449

—

Total interest expense

128,943

120,625

111,694

124,672

125,042

249,568

252,465

Net interest income

330,550

321,150

274,953

273,435

267,722

651,700

533,104

Provision for credit losses

—

Net interest income after provision for credit losses

330,550

321,150

274,953

273,435

267,722

651,700

533,104

Noninterest income:

Nonsufficient funds (NSF) fees

11,349

10,867

9,715

9,805

8,885

22,216

18,032

Credit card, debit card and ATM card income

10,303

9,483

9,462

9,446

9,761

19,786

18,500

Service charges on deposit accounts

9,235

8,680

7,618

7,317

7,645

17,915

15,053

Trust income

4,943

4,922

3,662

3,526

3,859

9,865

7,460

Mortgage income

1,363

1,280

954

931

965

2,643

1,974

Brokerage income

1,478

1,568

1,570

1,328

1,225

3,046

2,487

Bank owned life insurance income

2,476

2,598

2,117

2,111

1,985

5,074

4,100

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

(42)

318

1,414

276

1,179

Net gain on sale or write-up of securities

8,235

—

8,235

—

Other noninterest income

11,365

6,758

7,647

6,771

7,243

18,123

15,498

Total noninterest income

60,705

46,474

42,780

41,238

42,982

107,179

84,283

Noninterest expense:

Salaries and benefits

110,965

109,211

88,384

87,949

87,296

220,176

176,772

Net occupancy and equipment

10,685

10,654

9,379

9,395

9,168

21,339

18,314

Credit and debit card, data processing and software amortization

16,121

18,114

12,621

12,515

12,056

34,235

23,478

Regulatory assessments and FDIC insurance

5,287

6,041

1,600

5,198

5,508

11,328

11,297

Core deposit intangibles amortization

5,661

5,259

3,588

3,602

3,610

10,920

7,251

Depreciation

5,795

5,548

5,155

4,966

4,779

11,343

9,553

Communications

4,271

3,834

3,528

3,480

3,507

8,105

6,980

Other real estate expense

350

341

219

314

204

691

344

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

(41)

109

(81)

(222)

(82)

(252)

Merger related expenses

755

42,516

268

—

43,271

—

Other noninterest expense

16,327

15,810

13,861

11,235

12,659

32,137

25,129

Total noninterest expense

176,176

217,287

138,712

138,635

138,565

393,463

278,866

Income before income taxes

215,079

150,337

179,021

176,038

172,139

365,416

338,521

Provision for income taxes

46,496

34,070

39,114

38,482

36,984

80,566

73,141

Net income available to common shareholders

168,583

116,267

139,907

137,556

135,155

284,850

265,380

(C)

Interest income on securities was reduced by net premium amortization of $3,790, $3,829, $4,668, $2,877, and $4,926 for the three months ended June 30, 2026, March 31, 2026, December 31, 2025, September 30, 2025, and June 30, 2025, respectively, and $7,619 and $9,953 for the six months ended June 30, 2026, and 2025, 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

Jun 30, 2026

Mar 31, 2026

Dec 31, 2025

Sep 30, 2025

Jun 30, 2025

Jun 30, 2026

Jun 30, 2025

Profitability

Net income (D) (E)

168,583

116,267

139,907

137,556

135,155

284,850

265,380

Basic earnings per share

1.67

1.16

1.49

1.45

1.42

2.84

2.79

Diluted earnings per share

1.67

1.16

1.49

1.45

1.42

2.84

2.79

Return on average assets (F) (J)

1.55

1.10

1.49

1.44

1.41

1.33

1.37

Return on average common equity (F) (J)

8.14

5.70

7.30

7.18

7.13

6.93

7.03

Return on average tangible common equity (F) (G) (J)

15.48

10.59

13.61

13.43

13.44

13.02

13.33

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

3.47

3.51

3.30

3.24

3.18

3.49

3.16

Efficiency ratio (G) (I) (K)

45.99

59.16

43.66

44.06

44.80

52.44

45.26

Liquidity and Capital Ratios

Equity to assets

18.93

18.82

19.80

20.00

19.78

18.93

19.78

Common equity tier 1 capital

15.94

15.45

17.55

17.53

17.10

15.94

17.10

Tier 1 risk-based capital

15.94

15.45

17.55

17.53

17.10

15.94

17.10

Total risk-based capital

17.38

16.63

18.80

18.78

18.35

17.38

18.35

Tier 1 leverage capital

11.12

11.22

11.93

11.90

11.62

11.12

11.62

Period end tangible equity to period end tangible assets (G)

10.96

10.77

11.63

11.81

11.58

10.96

11.58

Other Data

Weighted-average shares used in computing earnings per common share

Basic

100,783

99,825

94,044

95,093

95,277

100,306

95,271

Diluted

100,783

99,825

94,044

95,093

95,277

100,306

95,271

Period end shares outstanding

100,646

100,835

93,058

94,993

95,277

100,646

95,277

Cash dividends paid per common share

0.60

0.58

1.20

1.16

Book value per common share

82.52

81.40

81.84

80.69

79.76

82.52

79.76

Tangible book value per common share (G)

43.48

42.39

43.64

43.23

42.38

43.48

42.38

Common Stock Market Price

High

74.37

77.20

73.90

75.44

74.56

77.20

82.75

Low

65.90

63.20

61.07

64.27

61.57

63.20

61.57

Period end closing price

73.03

67.18

69.11

66.35

70.24

73.03

70.24

Employees – FTE (excluding overtime)

4,324

4,429

3,941

3,937

3,921

4,194

3,921

Number of banking centers

311

312

283

311

283

(D)

Includes purchase accounting adjustments for the periods presented as follows:

Three Months Ended

Year-to-Date

Jun 30, 2026

Mar 31, 2026

Dec 31, 2025

Sep 30, 2025

Jun 30, 2025

Jun 30, 2026

Jun 30, 2025

Loan discount accretion

Purchased seasoned loans ("PSLs")

$3,104

$2,562

$2,926

$2,242

$2,486

$5,666

$5.101

PCD

$901

$1,186

$205

$613

$638

$2,087

$1,315

Securities net accretion

$1,462

$1,573

$342

$1,475

$409

$3,035

$1,114

Time deposits amortization

$(357)

$(699)

$(1)

$(2)

$(1,056)

$(11)

(E)

Using effective tax rate of 21.6%, 22.7%, 21.8%, 21.9% and 21.5% for the three months ended June 30, 2026, March 31, 2026, December 31, 2025, September 30, 2025 and June 30, 2025, respectively, and 22.0% and 21.6% for the six months ended June 30, 2026, and 2025, 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 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 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

Jun 30, 2026

Mar 31, 2026

Jun 30, 2025

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

17,858

281

6.31 %

15,800

238

6.11 %

9,813

166

6.79 %

Loans held for investment

23,750,036

350,967

5.93 %

23,469,020

344,596

5.95 %

20,907,400

306,671

5.88 %

Loans held for investment - Warehouse Purchase Program

1,316,645

18,326

5.58 %

1,207,793

16,922

5.68 %

1,179,307

18,653

6.34 %

Total loans

25,084,539

369,574

5.91 %

24,692,613

361,756

5.94 %

22,096,520

325,490

5.91 %

Investment securities

12,258,188

81,200

2.66 %

(M)

11,469,762

70,531

2.49 %

(M)

10,867,856

57,836

2.13 %

(M)

Federal funds sold and other earning assets

969,502

8,719

3.61 %

1,026,015

9,488

3.75 %

841,933

9,438

4.50 %

Total interest-earning assets

38,312,229

459,493

4.81 %

37,188,390

441,775

4.82 %

33,806,309

392,764

4.66 %

Allowance for credit losses on loans

(383,281)

(330,133)

(348,310)

Noninterest-earning assets

5,508,187

5,361,351

4,933,215

Total assets

43,437,135

42,219,608

38,391,214

Interest-bearing liabilities:

Interest-bearing demand deposits

6,135,720

15,093

0.99 %

6,266,423

13,993

0.91 %

4,807,864

8,859

0.74 %

Savings and money market deposits

10,928,333

53,661

1.97 %

10,583,184

50,719

1.94 %

8,944,897

45,796

2.05 %

Certificates and other time deposits

4,787,401

38,330

3.21 %

4,830,369

39,525

3.32 %

4,366,510

39,135

3.59 %

Other borrowings

2,174,506

20,094

3.71 %

1,620,556

14,783

3.70 %

2,717,583

30,101

4.44 %

Securities sold under repurchase agreements

194,250

1,019

2.10 %

177,719

902

2.06 %

194,577

1,151

2.37 %

Subordinated notes and junior subordinated debentures

70,408

746

4.25 %

63,673

703

4.48 %

—

Total interest-bearing liabilities

24,290,618

128,943

2.13 %

(N)

23,541,924

120,625

2.08 %

(N)

21,031,431

125,042

2.38 %

(N)

Noninterest-bearing liabilities:

Noninterest-bearing demand deposits

10,561,142

10,260,022

9,508,845

Allowance for credit losses on off- balance sheet credit exposures

37,646

38,070

37,646

Other liabilities

259,201

218,810

227,002

Total liabilities

35,148,607

34,058,826

30,804,924

Shareholders' equity

8,288,528

8,160,782

7,586,290

Total liabilities and shareholders' equity

43,437,135

42,219,608

38,391,214

Net interest income and margin

330,550

3.46 %

321,150

3.50 %

267,722

3.18 %

Non-GAAP to GAAP reconciliation:

Tax equivalent adjustment

580

575

574

Net interest income and margin (tax equivalent basis)

331,130

3.47 %

321,725

3.51 %

268,296

3.18 %

(L)

Annualized and based on an actual 365-day basis.

(M)

Yield on securities was impacted by net premium amortization of $3,790, $3,829, and $4,926 for the three months ended June 30, 2026, March 31, 2026, and June 30, 2025, respectively.

(N)

Total cost of funds, including noninterest bearing deposits, was 1.48%, 1.45%, and 1.64% for the three months ended June 30, 2026, March 31, 2026, and June 30, 2025, respectively.

Prosperity Bancshares, Inc.® Financial Highlights (Unaudited) (Dollars in thousands)

YIELD ANALYSIS

Year-to-Date

Jun 30, 2026

Jun 30, 2025

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

16,834

519

6.22 %

8,698

293

6.79 %

Loans held for investment

23,610,945

695,563

5.94 %

20,933,170

611,739

5.89 %

Loans held for investment - Warehouse Purchase Program

1,262,533

35,248

5.63 %

1,028,534

32,481

6.37 %

Total loans

24,890,312

731,330

5.93 %

21,970,402

644,513

5.92 %

Investment securities

11,866,153

151,731

2.58 %

(P)

10,942,215

115,722

2.13 %

(P)

Federal funds sold and other earning assets

996,109

18,207

3.69 %

1,140,915

25,334

4.48 %

Total interest-earning assets

37,752,574

901,268

4.81 %

34,053,532

785,569

4.65 %

Allowance for credit losses on loans

(356,855)

(349,506)

Noninterest-earning assets

5,435,129

4,967,987

Total assets

42,830,848

38,672,013

Interest-bearing liabilities:

Interest-bearing demand deposits

6,199,301

29,086

0.95 %

5,015,178

17,878

0.72 %

Savings and money market deposits

10,757,523

104,380

1.96 %

8,975,919

91,441

2.05 %

Certificates and other time deposits

4,808,748

77,855

3.26 %

4,396,350

80,068

3.67 %

Other borrowings

1,899,061

34,877

3.70 %

2,746,961

60,593

4.45 %

Securities sold under repurchase agreements

186,030

1,921

2.08 %

206,197

2,485

2.43 %

Subordinated notes and junior subordinated debentures

67,059

1,449

4.36 %

—

Total interest-bearing liabilities

23,917,722

249,568

2.10 %

(Q)

21,340,605

252,465

2.39 %

(Q)

Noninterest-bearing liabilities:

Noninterest-bearing demand deposits

10,412,431

9,506,704

Allowance for credit losses on off-balance sheet credit exposures

37,857

37,646

Other liabilities

238,470

240,789

Total liabilities

34,606,480

31,125,744

Shareholders' equity

8,224,368

7,546,269

Total liabilities and shareholders' equity

42,830,848

38,672,013

Net interest income and margin

651,700

3.48 %

533,104

3.16 %

Non-GAAP to GAAP reconciliation:

Tax equivalent adjustment

1,155

1,161

Net interest income and margin (tax equivalent basis)

652,855

3.49 %

534,265

3.16 %

(O)

Based on an actual 365-day basis.

(P)

Yield on securities was impacted by net premium amortization of $7,619 and $9,953 for the six months ended June 30, 2026, and 2025, respectively.

(Q)

Total cost of funds, including noninterest bearing deposits, was 1.47% and 1.65% for the six months ended June 30, 2026, and 2025, respectively.

Prosperity Bancshares, Inc.® Financial Highlights (Unaudited) (Dollars in thousands)

Three Months Ended

Jun 30, 2026

Mar 31, 2026

Dec 31, 2025

Sep 30, 2025

Jun 30, 2025

YIELD TREND (R)

Interest-Earning Assets:

Loans held for sale

6.31

6.11

6.27

6.64

6.79

Loans held for investment

5.93

5.95

5.83

5.90

5.88

Loans held for investment - Warehouse Purchase Program

5.58

5.68

5.89

6.31

6.34

Total loans

5.91

5.94

5.83

5.92

5.91

Investment securities (S)

2.66

2.49

2.17

2.19

2.13

Federal funds sold and other earning assets

3.61

3.75

3.99

4.44

4.50

Total interest-earning assets

4.81

4.82

4.64

4.71

4.66

Interest-Bearing Liabilities:

Interest-bearing demand deposits

0.99

0.91

0.75

0.76

0.74

Savings and money market deposits

1.97

1.94

1.96

2.07

2.05

Certificates and other time deposits

3.21

3.32

3.58

3.60

3.59

Other borrowings

3.71

3.70

3.99

4.42

4.44

Securities sold under repurchase agreements

2.10

2.06

2.23

2.32

2.37

Subordinated notes and junior subordinated debentures

4.25

4.48

—

Total interest-bearing liabilities

2.13

2.08

2.20

2.39

2.38

Net Interest Margin

3.46

3.50

3.30

3.23

3.18

Net Interest Margin (tax equivalent)

3.47

3.51

3.30

3.24

3.18

(R)

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

(S)

Yield on securities was impacted by net premium amortization of $3,790, $3,829, $4,668, $2,877, and $4,926 for the three months ended June 30, 2026, March 31, 2026, December 31, 2025, September 30, 2025, and June 30, 2025, respectively.

Prosperity Bancshares, Inc.® Financial Highlights (Unaudited) (Dollars in thousands)

Three Months Ended

Jun 30, 2026

Mar 31, 2026

Dec 31, 2025

Sep 30, 2025

Jun 30, 2025

Balance Sheet Averages

Loans held for sale

17,858

15,800

11,077

8,371

9,813

Loans held for investment

23,750,036

23,469,020

20,603,235

20,851,896

20,907,400

Loans held for investment - Warehouse Purchase Program

1,316,645

1,207,793

1,258,036

1,217,579

1,179,307

Total loans

25,084,539

24,692,613

21,872,348

22,077,846

22,096,520

Investment securities

12,258,188

11,469,762

10,378,696

10,530,807

10,867,856

Federal funds sold and other earning assets

969,502

1,026,015

830,926

934,318

841,933

Total interest-earning assets

38,312,229

37,188,390

33,081,970

33,542,971

33,806,309

Allowance for credit losses on loans

(383,281)

(330,133)

(337,892)

(343,872)

(348,310)

Cash and due from banks

315,132

391,668

311,541

291,809

294,379

Goodwill

3,822,507

3,718,640

3,503,127

Core deposit intangibles, net

108,589

50,089

53,553

56,956

60,739

Other real estate

13,278

14,690

14,004

11,533

8,749

Fixed assets, net

430,575

423,530

380,254

377,680

374,486

Other assets

818,106

762,734

659,371

689,659

691,735

Total assets

43,437,135

42,219,608

37,665,928

38,129,863

38,391,214

Noninterest-bearing deposits

10,561,142

10,260,022

9,543,581

9,451,153

9,508,845

Interest-bearing demand deposits

6,135,720

6,266,423

4,812,342

4,656,452

4,807,864

Savings and money market deposits

10,928,333

10,583,184

9,054,281

8,977,585

8,944,897

Certificates and other time deposits

4,787,401

4,830,369

4,519,742

4,422,996

4,366,510

Total deposits

32,412,596

31,939,998

27,929,946

27,508,186

27,628,116

Other borrowings

2,174,506

1,620,556

1,595,652

2,480,435

2,717,583

Securities sold under repurchase agreements

194,250

177,719

185,289

187,462

194,577

Subordinated notes and junior subordinated debentures

70,408

63,673

—

Allowance for credit losses on off-balance sheet credit exposures

37,646

38,070

37,646

Other liabilities

259,201

218,810

248,593

258,156

227,002

Shareholders' equity

8,288,528

8,160,782

7,668,802

7,657,978

7,586,290

Total liabilities and equity

43,437,135

42,219,608

37,665,928

38,129,863

38,391,214

Prosperity Bancshares, Inc.® Financial Highlights (Unaudited) (Dollars in thousands)

Jun 30, 2026

Mar 31, 2026

Dec 31, 2025

Sep 30, 2025

Jun 30, 2025

Period End Balances

Loan Portfolio

Commercial and industrial

2,805,904

11.2

2,759,190

10.9

1,864,337

8.6

1,879,282

8.5

1,897,117

8.6

Warehouse purchase program

1,290,156

5.1

1,433,152

5.7

1,304,798

6.0

1,278,178

5.8

1,287,440

5.8

Construction, land development and other land loans

3,143,607

12.6

3,253,389

12.9

2,741,455

12.6

2,865,279

13.0

2,873,238

12.9

1-4 family residential

7,777,079

31.1

7,876,021

31.1

7,430,929

34.1

7,461,900

33.9

7,530,816

33.9

Home equity

827,696

3.3

846,739

3.3

843,708

3.8

848,740

3.9

869,370

3.9

Commercial real estate (includes multi-family residential)

7,220,978

28.9

7,126,212

28.2

5,776,397

26.5

5,796,937

26.3

5,827,645

26.3

Agriculture (includes farmland)

1,066,122

4.3

1,064,540

4.2

1,027,904

4.7

1,019,589

4.6

1,029,250

4.6

Consumer and other

412,268

1.6

406,680

1.6

376,241

1.7

366,027

1.7

368,747

1.7

Energy

484,188

1.9

522,063

2.1

439,599

2.0

511,837

2.3

513,765

2.3

Total loans

25,027,998

25,287,986

21,805,368

22,027,769

22,197,388

Deposit Types

Noninterest-bearing DDA

10,739,937

32.9

10,580,920

32.4

9,467,911

33.2

9,522,028

34.3

9,426,657

34.3

Interest-bearing DDA

6,133,954

18.8

6,345,797

19.5

5,365,795

18.8

4,766,146

17.2

4,708,251

17.1

Money market

8,248,194

25.3

8,163,557

25.0

6,538,213

23.0

6,402,591

23.0

6,302,770

23.0

Savings

2,700,522

8.3

2,743,732

8.4

2,592,873

9.1

2,616,196

9.4

2,667,859

9.7

Certificates and other time deposits

4,777,080

14.7

4,798,750

14.7

4,517,692

15.9

4,475,133

16.1

4,367,874

15.9

Total deposits

32,599,687

32,632,756

28,482,484

27,782,094

27,473,411

Loan to Deposit Ratio

76.8

77.5

76.6

79.3

80.8

Prosperity Bancshares, Inc.® Financial Highlights (Unaudited) (Dollars in thousands)

Construction Loans

Jun 30, 2026

Mar 31, 2026

Dec 31, 2025

Sep 30, 2025

Jun 30, 2025

Single family residential construction

689,081

21.9

690,393

21.2

613,288

22.4

665,194

23.2

696,569

24.2

Land development

359,067

11.4

407,811

12.5

252,650

9.2

248,616

8.7

227,254

7.9

Raw land

227,614

7.3

276,693

8.5

220,169

8.0

230,021

8.0

248,380

8.7

Residential lots

224,650

7.1

249,071

7.7

199,709

7.3

203,396

7.1

217,835

7.6

Commercial lots

61,423

2.0

61,691

1.9

59,683

2.2

59,853

2.1

55,176

1.9

Commercial construction and other

1,581,569

50.3

1,567,640

48.2

1,396,850

50.9

1,459,255

50.9

1,428,985

49.7

Net unaccreted premium (discount)

203

(894)

(1,056)

(961)

Total construction loans

3,143,607

3,253,389

2,741,455

2,865,279

2,873,238

Non-Owner Occupied Commercial Real Estate Loans by Metropolitan Statistical Area (MSA) as of June 30, 2026

Houston

Dallas

Austin

OK City

Tulsa

Other (T)

Total

Collateral Type

Shopping center/retail

266,513

207,360

67,619

76,541

4,831

343,777

966,641

Commercial and industrial buildings

213,733

114,459

33,894

28,656

11,056

305,583

707,381

Office buildings

134,384

278,033

77,949

42,894

3,805

111,395

648,460

Medical buildings

111,580

56,722

25,804

41,667

28,826

65,432

330,031

Apartment buildings

136,295

67,268

143,477

10,048

12,385

222,261

591,734

Hotel

108,606

116,419

36,165

15,573

—

252,301

529,064

Other

196,829

68,955

153,008

4,297

5,781

426,209

855,079

Total

1,167,940

909,216

537,916

219,676

66,684

1,726,958

4,628,390

(U)

Acquired Loans

PSL

PCD Loans

Total Acquired Loans

Balance at Acquisition Date

Balance at Mar 31, 2026

Balance at Jun 30, 2026

Balance at Acquisition Date

Balance at Mar 31, 2026

Balance at Jun 30, 2026

Balance at Acquisition Date

Balance at Mar 31, 2026

Balance at Jun 30, 2026

Loan marks:

Acquired banks (V)

388,625

15,064

15,986

332,400

5,053

4,483

721,025

20,117

20,469

American Bank (W)

15,473

15,902

16,443

1,923

1,297

1,067

17,396

17,199

17,510

Texas Partners Bank (X)

38,467

37,626

36,199

2,328

2,090

1,894

40,795

39,716

38,093

Total

442,565

68,592

68,628

336,651

8,440

7,444

779,216

77,032

76,072

Acquired portfolio loan balances:

Acquired banks (V)

14,323,981

1,331,556

1,219,719

1,376,673

293,365

239,094

15,700,654

1,624,921

1,458,813

American Bank (W)

1,810,982

1,684,101

1,488,985

93,300

89,055

75,647

1,904,282

1,773,156

1,564,632

Texas Partners Bank (X)

1,864,565

1,769,908

1,591,030

76,199

70,248

68,004

1,940,764

1,840,156

1,659,034

Total

17,999,528

4,785,565

4,299,734

1,546,172

452,668

382,745

19,545,700

(Y)

5,238,233

4,682,479

Acquired portfolio loan balances with loan marks

17,556,963

4,716,973

4,231,106

1,209,521

444,228

375,301

18,766,484

5,161,201

4,606,407

(T)

Includes other MSA and non-MSA regions.

(U)

Represents a portion of total commercial real estate loans of $7.221 billion as of June 30, 2026.

(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 State Bank of West Texas.

(W)

The American Merger was completed on January 1, 2026. The American Merger resulted in the addition of $1.904 billion in loans with related purchase accounting adjustments of $17.4 million at acquisition date.

(X)

The Southwest Merger was completed on February 1, 2026. The Southwest Merger resulted in the addition of $1.941 billion in loans with related purchase accounting adjustments of $40.8 million at acquisition date.

(Y)

Actual principal balances acquired.

Prosperity Bancshares, Inc.® Financial Highlights (Unaudited) (Dollars in thousands)

Three Months Ended

Year-to-Date

Jun 30, 2026

Mar 31, 2026

Dec 31, 2025

Sep 30, 2025

Jun 30, 2025

Jun 30, 2026

Jun 30, 2025

Asset Quality

Nonaccrual loans

116,911

106,473

137,217

105,529

102,031

116,911

102,031

Accruing loans 90 or more days past due

2,360

2,241

317

268

576

2,360

576

Total nonperforming loans

119,271

108,714

137,534

105,797

102,607

119,271

102,607

Repossessed assets

136

Other real estate

11,296

13,257

13,296

13,750

7,874

11,296

7,874

Total nonperforming assets

130,576

122,107

150,842

119,563

110,487

130,576

110,487

Nonperforming assets:

Commercial and industrial (includes energy)

22,115

17,495

57,237

27,880

27,680

22,115

27,680

Construction, land development and other land loans

3,781

2,054

2,183

583

1,859

3,781

1,859

1-4 family residential (includes home equity)

64,394

63,168

60,296

57,241

50,501

64,394

50,501

Commercial real estate (includes multi-family residential)

19,597

17,880

9,215

11,471

12,865

19,597

12,865

Agriculture (includes farmland)

15,590

16,259

16,713

17,080

17,547

15,590

17,547

Consumer and other

5,099

5,251

5,198

5,308

5,099

Total

130,576

122,107

150,842

119,563

110,487

130,576

110,487

Number of loans/properties

499

484

449

424

392

499

392

Allowance for credit losses on loans

382,841

383,840

333,742

339,626

346,084

382,841

346,084

Net charge-offs (recoveries):

Commercial and industrial (includes energy)

1,386

39,225

5,388

3,341

1,044

40,611

1,374

Construction, land development and other land loans

—

(154)

(3)

(159)

1-4 family residential (includes home equity)

314

862

175

853

342

1,176

1,393

Commercial real estate (includes multi-family residential)

(1,064)

(121)

(665)

1,015

(1,185)

233

Agriculture (includes farmland)

(5)

(40)

(14)

Consumer and other

1,469

1,291

1,145

1,255

1,593

2,760

2,894

Total

2,183

41,309

5,884

6,458

3,017

43,492

5,721

Asset Quality Ratios

Nonperforming assets to average interest-earning assets

0.34

0.33

0.46

0.36

0.33

0.35

0.32

Nonperforming assets to loans and other real estate

0.52

0.48

0.69

0.54

0.50

0.52

0.50

Net charge-offs to average loans (annualized)

0.03

0.67

0.11

0.12

0.05

0.35

0.05

Allowance for credit losses on loans to total loans

1.53

1.52

1.53

1.54

1.56

1.53

1.56

Allowance for credit losses on loans to total loans, excluding Warehouse Purchase Program loans (G)

1.61

1.63

1.64

1.66

1.61

1.66

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 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

Jun 30, 2026

Mar 31, 2026

Dec 31, 2025

Sep 30, 2025

Jun 30, 2025

Jun 30, 2026

Jun 30, 2025

Reconciliation of diluted earnings per share to diluted earnings per share excluding 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)

1.67

1.16

1.49

1.45

1.42

2.84

2.79

Net income

168,583

116,267

139,907

137,556

135,155

284,850

265,380

Merger related expenses, net of tax(Z)

596

33,588

212

—

34,184

—

FDIC special assessment, net of tax(Z)

—

(2,807)

—

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

(6,506)

—

(6,506)

—

Net income excluding 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(Z):

162,673

149,855

137,312

137,605

135,155

312,528

265,380

Weighted average diluted shares outstanding

100,783

99,825

94,044

95,093

95,277

100,306

95,271

Merger related expenses, net of tax, per diluted common share(Z)

0.01

0.34

—

0.34

—

FDIC special assessment, net of tax, per diluted common share(Z)

—

(0.03)

—

Net gain on sale or write-up of securities, net of tax, per diluted common share(Z)

(0.06)

—

(0.06)

—

Diluted earnings per share excluding 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:(Z)

1.62

1.50

1.46

1.45

1.42

3.12

2.79

Reconciliation of return on average assets to return on average assets excluding 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)

1.55

1.10

1.49

1.44

1.41

1.33

1.37

Net income excluding 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(Z):

162,673

149,855

137,312

137,605

135,155

312,528

265,380

Average total assets

43,437,135

42,219,608

37,665,928

38,129,863

38,391,214

42,830,848

38,672,013

Return on average assets excluding 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) (Z)

1.50

1.42

1.46

1.44

1.41

1.46

1.37

(Z)

Calculated assuming a federal tax rate of 21.0%.

Three Months Ended

Year-to-Date

Jun 30, 2026

Mar 31, 2026

Dec 31, 2025

Sep 30, 2025

Jun 30, 2025

Jun 30, 2026

Jun 30, 2025

Reconciliation of return on average common equity to return on average common equity excluding 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)

8.14

5.70

7.30

7.18

7.13

6.93

7.03

Net income excluding 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(Z):

162,673

149,855

137,312

137,605

135,155

312,528

265,380

Average shareholders' equity

8,288,528

8,160,782

7,668,802

7,657,978

7,586,290

8,224,368

7,546,269

Return on average common equity excluding 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) (Z)

7.85

7.35

7.16

7.19

7.13

7.60

7.03

Reconciliation of return on average common equity to return on average tangible common equity:

Net income

168,583

116,267

139,907

137,556

135,155

284,850

265,380

Average shareholders' equity

8,288,528

8,160,782

7,668,802

7,657,978

7,586,290

8,224,368

7,546,269

Less: Average goodwill and other intangible assets

(3,931,096)

(3,768,729)

(3,556,680)

(3,560,083)

(3,563,866)

(3,850,361)

(3,565,634)

Average tangible shareholders' equity

4,357,432

4,392,053

4,112,122

4,097,895

4,022,424

4,374,007

3,980,635

Return on average tangible common equity (F)

15.48

10.59

13.61

13.43

13.44

13.02

13.33

Reconciliation of return on average common equity to return on average tangible common equity excluding 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(Z):

Net income excluding 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(Z):

162,673

149,855

137,312

137,605

135,155

312,528

265,380

Average shareholders' equity

8,288,528

8,160,782

7,668,802

7,657,978

7,586,290

8,224,368

7,546,269

Less: Average goodwill and other intangible assets

(3,931,096)

(3,768,729)

(3,556,680)

(3,560,083)

(3,563,866)

(3,850,361)

(3,565,634)

Average tangible shareholders' equity

4,357,432

4,392,053

4,112,122

4,097,895

4,022,424

4,374,007

3,980,635

Return on average tangible common equity excluding 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) (Z)

14.93

13.65

13.36

13.43

13.44

14.29

13.33

Reconciliation of book value per share to tangible book value per share:

Shareholders' equity

8,305,259

8,207,851

7,616,140

7,664,938

7,599,736

8,305,259

7,599,736

Less: Goodwill and other intangible assets

(3,929,502)

(3,933,526)

(3,554,732)

(3,558,321)

(3,561,923)

(3,929,502)

(3,561,923)

Tangible shareholders' equity

4,375,757

4,274,325

4,061,408

4,106,617

4,037,813

4,375,757

4,037,813

Period end shares outstanding

100,646

100,835

93,058

94,993

95,277

100,646

95,277

Tangible book value per share

43.48

42.39

43.64

43.23

42.38

43.48

42.38

Reconciliation of equity to assets ratio to period end tangible equity to period end tangible assets ratio:

Tangible shareholders' equity

4,375,757

4,274,325

4,061,408

4,106,617

4,037,813

4,375,757

4,037,813

Total assets

43,872,511

43,619,183

38,463,425

38,330,469

38,417,352

43,872,511

38,417,352

Less: Goodwill and other intangible assets

(3,929,502)

(3,933,526)

(3,554,732)

(3,558,321)

(3,561,923)

(3,929,502)

(3,561,923)

Tangible assets

39,943,009

39,685,657

34,908,693

34,772,148

34,855,429

39,943,009

34,855,429

Period end tangible equity to period end tangible assets ratio

10.96

10.77

11.63

11.81

11.58

10.96

11.58

Three Months Ended

Year-to-Date

Jun 30, 2026

Mar 31, 2026

Dec 31, 2025

Sep 30, 2025

Jun 30, 2025

Jun 30, 2026

Jun 30, 2025

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

382,841

383,840

333,742

339,626

346,084

382,841

346,084

Total loans

25,027,998

25,287,986

21,805,368

22,027,769

22,197,388

25,027,998

22,197,388

Less: Warehouse Purchase Program loans

(1,290,156)

(1,433,152)

(1,304,798)

(1,278,178)

(1,287,440)

(1,290,156)

(1,287,440)

Total loans less Warehouse Purchase Program

23,737,842

23,854,834

20,500,570

20,749,591

20,909,948

23,737,842

20,909,948

Allowance for credit losses on loans to total loans excluding Warehouse Purchase Program

1.61

1.63

1.64

1.66

1.61

1.66

Reconciliation of efficiency ratio to efficiency ratio excluding net gains and losses on the sale, write- down or write-up of assets:

Noninterest expense

176,176

217,287

138,712

138,635

138,565

393,463

278,866

Net interest income

330,550

321,150

274,953

273,435

267,722

651,700

533,104

Noninterest income

60,705

46,474

42,780

41,238

42,982

107,179

84,283

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

(42)

318

1,414

276

1,179

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

8,235

—

8,235

—

Noninterest income excluding net gains and losses on the sale, write-down or write-up of assets

52,512

46,156

42,745

41,235

41,568

98,668

83,104

Total income excluding net gains and losses on the sale, write-down or write-up of assets

383,062

367,306

317,698

314,670

309,290

750,368

616,208

Efficiency ratio, excluding net gains and losses on the sale, write-down or write-up of assets

45.99

59.16

43.66

44.06

44.80

52.44

45.26

Reconciliation of efficiency ratio to efficiency ratio, excluding net gains and losses on the sale, write- down or write-up of assets, merger related expenses and FDIC special assessment:

Noninterest expense

176,176

217,287

138,712

138,635

138,565

393,463

278,866

Less: merger related expenses

755

42,516

268

—

43,271

—

Less: FDIC special assessment

—

(3,554)

—

Noninterest expense excluding merger related expenses and FDIC special assessment

175,421

174,771

141,998

138,573

138,565

350,192

278,866

Net interest income

330,550

321,150

274,953

273,435

267,722

651,700

533,104

Noninterest income

60,705

46,474

42,780

41,238

42,982

107,179

84,283

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

(42)

318

1,414

276

1,179

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

8,235

—

8,235

—

Noninterest income excluding net gains and losses on the sale, write-down or write-up of assets

52,512

46,156

42,745

41,235

41,568

98,668

83,104

Total income excluding net gains and losses on the sale, write-down or write-up of assets

383,062

367,306

317,698

314,670

309,290

750,368

616,208

Efficiency ratio, excluding net gains and losses on the sale, write-down or write-up of assets, merger related expenses and FDIC special assessment

45.79

47.58

44.70

44.04

44.80

46.67

45.26

Summary

Completed the merger of Stellar Bancorp, Inc. into Prosperity Bancshares on July 1, 2026 Second quarter net interest margin increased 29 basis points to 3.47% compared to second quarter 2025 Second quarter net income of 168.6million,and162.7 million(1) excluding non-recurring items,...