Net income of $110.4 million and diluted earnings per share of $1.18 for first quarter 2024
Loans, excluding Warehouse Purchase Program loans and loans acquired in the merger of First Bancshares of Texas, Inc, increased $115.8 million or 0.6% (2.4% annualized) during first quarter 2024
Deposits, excluding public funds deposits, increased $109.8 million during first quarter 2024, with no brokered deposits purchased
Noninterest-bearing deposits of $9.5 billion, representing 35.1% of total deposits
Net interest margin increased 4 basis points to 2.79% during first quarter 2024
Allowance for credit losses on loans and on off-balance sheet credit exposure of $366.7 million and allowance for credit losses on loans to total loans, excluding Warehouse Purchase Program, of 1.62%⁽¹⁾
Nonperforming assets remain low at 0.24% of first quarter average interest-earning assets
Completed the merger of Lone Star State Bancshares, Inc. on April 1, 2024
Repurchased 567,692 shares of common stock during first quarter 2024

HOUSTON, April 24, 2024 /PRNewswire/ -- Prosperity Bancshares, Inc.^® (NYSE:PB), the parent company of Prosperity Bank^® (collectively, "Prosperity"), reported net income of $110.4 million for the quarter ended March 31, 2024 compared with $124.7 million for the same period in 2023. Net income per diluted common share was $1.18 for the quarter ended March 31, 2024 compared with $1.37 for the same period in 2023. On April 1, 2024, Lone Star State Bancshares, Inc. ("Lone Star") merged with Prosperity Bancshares and Lone Star State Bank of West Texas ("Lone Star Bank") merged with Prosperity Bank. The annualized return on first quarter average assets was 1.13%. Nonperforming assets remain low at 0.24% of first quarter average interest-earning assets.

"We are excited to announce that on April 1, 2024, we completed the merger with Lone Star and its wholly owned subsidiary Lone Star Bank, headquartered in Lubbock, Texas. The operational integration is scheduled for late October 2024, when Lone Star customers will have full access to our 288 full-service locations. We welcome the Lone Star customers and associates to Prosperity and will work hard to win your trust," said David Zalman, Prosperity's Senior Chairman and Chief Executive Officer.

"The $2.4 trillion Texas economy is now the eight-largest economy in the world - larger than Russia, Canada, Italy and others. Texas is the top state for Fortune 500 headquartered companies, currently at 55, and was named the 2023 state of year for best in nation business climate and job growth," added Zalman.

"Texas added 369,600 non-farm jobs in 2023, the most in the nation. We believe the Texas and Oklahoma economies should outperform most other states," continued Zalman.

"Prosperity continues to focus on long term relationships and our customers' success while maintaining strong asset quality and earnings, and a fair return to shareholders. Prosperity maintained a high tangible equity to tangible assets ratio of 10.33% for the first quarter 2024 while sharing earnings with our shareholders. Prosperity repurchased 567,692 shares of common stock during the first quarter of 2024 in addition to the quarterly dividend. In 2023, Prosperity's total capital return to shareholders from dividends and share repurchases was $278 million," concluded Zalman.

Results of Operations for the Three Months Ended March 31, 2024

For the three months ended March 31, 2024, net income was $110.4 million⁽²⁾ or $1.18 per diluted common share compared with $95.5 million⁽³⁾ or $1.02 per diluted common share for the three months ended December 31, 2023. The change was primarily due to higher interest income and lower FDIC assessments, partially offset by an increase in salaries and benefits and interest expense. For the three months ended March 31, 2024, net income was $110.4 million⁽²⁾ or $1.18 per diluted common share compared with $124.7 million⁽⁴⁾ or $1.37 per diluted common share for the same period in 2023. The change was primarily due to a decrease in net interest income and an increase in noninterest expense primarily due to an increase in salaries and benefits and expenses due to the merger of First Bancshares of Texas, Inc. (the "FB Merger"). Annualized returns on average assets, average common equity and average tangible common equity for the three months ended March 31, 2024 were 1.13%, 6.20% and 12.06%⁽¹⁾, respectively. Prosperity's efficiency ratio (excluding net gains and losses on the sale or write down of assets and securities) was 49.07%⁽¹⁾ for the three months ended March 31, 2024.

Net interest income before provision for credit losses was $238.2 million for the three months ended March 31, 2024 compared with $237.0 million for the three months ended December 31, 2023, an increase of $1.3 million or 0.5%. Net interest income before provision for credit losses decreased $5.2 million or 2.1% to $238.2 million for the three months ended March 31, 2024 compared with $243.5 million for the same period in 2023. The change was primarily due to an increase in the average balances on other borrowings, an increase in the average rates on interest-bearing deposits and a decrease in the average balance on investment securities, partially offset by an increase in the average balances and average rates on loans.

The net interest margin on a tax equivalent basis was 2.79% for the three months ended March 31, 2024 compared with 2.75% for the three months ended December 31, 2023. The net interest margin on a tax equivalent basis was 2.79% for the three months ended March 31, 2024 compared with 2.93% for the same period in 2023. The change was primarily due to an increase in the average balances on other borrowings, an increase in the average rates on interest-bearing deposits and a decrease in the average balance on investment securities, partially offset by an increase in the average balances and average rates on loans.

Noninterest income was $38.9 million for the three months ended March 31, 2024 compared with $36.6 million for the three months ended December 31, 2023, an increase of $2.3 million or 6.3%. The change was primarily due to increases in trust income and other noninterest income. Noninterest income was $38.9 million for the three months ended March 31, 2024 compared with $38.3 million for the same period in 2023, an increase of $604 thousand or 1.6%.

Noninterest expense was $135.8 million for the three months ended March 31, 2024 compared with $152.2 million for the three months ended December 31, 2023, a decrease of $16.3 million or 10.7%. The change was primarily due to lower FDIC assessments, partially offset by an increase in salaries and benefits. Noninterest expense was $135.8 million for the three months ended March 31, 2024 compared with $123.0 million for the same period in 2023, an increase of $12.8 million or 10.4%. The change was primarily due to increases in salaries and benefits, other noninterest expense and in credit and debit card, data processing and software amortization expense primarily due to three months of operations related to the FB Merger in the first quarter 2024 compared to none in the first quarter 2023.

Balance Sheet Information

At March 31, 2024, Prosperity had $38.757 billion in total assets, an increase of $927.3 million or 2.5%, compared with $37.829 billion at March 31, 2023.

Loans were $21.265 billion at March 31, 2024, an increase of $84.7 million or 0.4% (1.6% annualized) from $21.181 billion at December 31, 2023. Loans increased $1.931 billion or 10.0%, compared with $19.334 billion at March 31, 2023. Loans, excluding Warehouse Purchase Program loans, were $20.400 billion at March 31, 2024 compared with $20.358 billion at December 31, 2023, an increase of $42.0 million or 0.2% (0.8% annualized), and $18.535 billion at March 31, 2023, an increase of $1.865 billion or 10.1%.

Deposits were $27.176 billion at March 31, 2024, a decrease of $4.3 million from $27.180 billion at December 31, 2023. Deposits increased $171.3 million or 0.6%, compared with $27.004 billion at March 31, 2023. Deposits, excluding public funds deposits, were $24.558 billion at March 31, 2024 compared with $24.448 billion at December 31, 2023, an increase of $109.8 million or 0.4%. Deposits, excluding public funds deposits, increased $660.8 million or 2.8% compared with $23.897 billion at March 31, 2023.

The table below provides detail on the impact of loans acquired and deposits assumed in the FB Merger.

Balance Sheet Data (at period end)
(In thousands)
	Mar 31, 2024		Dec 31, 2023		Sep 30, 2023		Jun 30, 2023		Mar 31, 2023
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Loans acquired (including new production since acquisition date):
FirstCapital Bank	$	1,302,582	$	1,376,356	$	1,494,378	$	1,590,137	$	—
Prosperity - Warehouse Purchase Program loans		864,924		822,245		912,327		1,148,883		799,115
Prosperity - All other loans		19,097,741		18,981,937		19,026,008		18,914,926		18,535,244
Total loans	$	21,265,247	$	21,180,538	$	21,432,713	$	21,653,946	$	19,334,359

Deposits assumed (including new deposits since acquisition date):
FirstCapital Bank	$	1,449,166	$	1,517,217	$	1,625,691	$	1,481,831	$	—
All other deposits		25,726,352		25,662,592		25,687,109		25,899,055		27,004,236
Total deposits	$	27,175,518	$	27,179,809	$	27,312,800	$	27,380,886	$	27,004,236

Excluding loans acquired in the FB Merger and new production since May 1, 2023 by the acquired lending operations, loans at March 31, 2024 grew $158.5 million or 0.8% (3.2% annualized) compared with December 31, 2023 and grew $628.3 million or 3.2% compared with March 31, 2023. Excluding loans acquired in the FB Merger, new production since May 1, 2023 by the acquired lending operations and Warehouse Purchase Program loans, loans at March 31, 2024 grew $115.8 million or 0.6% (2.4% annualized) compared with December 31, 2023 and grew $562.5 million or 3.0% compared with March 31, 2023.

Excluding deposits assumed in the FB Merger and new deposits generated at the acquired banking centers since May 1, 2023, deposits at March 31, 2024 grew by $63.8 million or 0.2% (1.0% annualized) compared with December 31, 2023 and decreased by $1.278 billion or 4.7% compared with March 31, 2023.

Asset Quality

Nonperforming assets totaled $83.8 million or 0.24% of quarterly average interest-earning assets at March 31, 2024 compared with $72.7 million or 0.21% of quarterly average interest-earning assets at December 31, 2023, with the majority of the balance for each period attributable to acquired loans. Nonperforming assets were $24.5 million or 0.07% of quarterly average interest-earning assets at March 31, 2023.

The allowance for credit losses on loans and off-balance sheet credit exposures was $366.7 million at March 31, 2024 compared with $368.9 million at December 31, 2023 and $312.1 million at March 31, 2023. There was no provision for credit losses for the three months ended March 31, 2024, December 31, 2023 and March 31, 2023.

The allowance for credit losses on loans was $330.2 million or 1.55% of total loans at March 31, 2024 compared with $332.4 million or 1.57% of total loans at December 31, 2023 and $282.2 million or 1.46% of total loans at March 31, 2023. Excluding Warehouse Purchase Program loans, the allowance for credit losses on loans to total loans was 1.62%⁽¹⁾ at March 31, 2024 compared with 1.63%⁽¹⁾ at December 31, 2023 and 1.52%⁽¹⁾ at March 31, 2023.

Net charge-offs were $2.1 million for the three months ended March 31, 2024 compared with net charge-offs of $19.1 million for the three months ended December 31, 2023 and net recoveries of $615 thousand for the three months ended March 31, 2023. Net charge-offs for the first quarter of 2024 included $991 thousand related to resolved purchased credit deteriorated ("PCD") loans, which had specific reserves that were allocated to the charge-offs. Further, an additional $4.1 million of specific reserves on resolved PCD loans without any related charge-offs was released to the general reserve.

Dividend

Prosperity Bancshares declared a second quarter 2024 cash dividend of $0.56 per share to be paid on July 1, 2024, to all shareholders of record as of June 14, 2024.

Stock Repurchase Program

On January 16, 2024, Prosperity Bancshares announced a stock repurchase program under which up to 5%, or approximately 4.7 million shares, of its outstanding common stock may be acquired over a one-year period expiring on January 16, 2025, at the discretion of management. Under its 2024 stock repurchase program, Prosperity Bancshares repurchased 567,692 shares of its common stock at an average weighted price of $62.12 per share during the three months ended March 31, 2024.

Merger of Lone Star State Bancshares, Inc.

On April 1, 2024, Prosperity completed the merger of Lone Star and its wholly owned subsidiary Lone Star Bank, headquartered in Lubbock, Texas. Lone Star Bank operated 5 banking offices in the West Texas area, including its main office in Lubbock, and 1 banking center in each of Brownfield, Midland, Odessa and Big Spring, Texas. As of March 31, 2024, Lone Star, on a consolidated basis, reported total assets of $1.384 billion, total loans of $1.075 billion and total deposits of $1.241 billion.

Pursuant to the terms of the definitive agreement, Prosperity issued 2,376,182 shares of Prosperity common stock plus approximately $64.1 million in cash for all outstanding shares of Lone Star in the second quarter of 2024.

Merger of First Bancshares of Texas, Inc.

On May 1, 2023, Prosperity completed the merger of First Bancshares and its wholly owned subsidiary FirstCapital Bank of Texas, N.A. ("FirstCapital Bank"), headquartered in Midland, Texas. FirstCapital Bank operated 16 full-service banking offices in six different markets in West, North and Central Texas areas, including its main office in Midland, and banking offices in Midland, Lubbock, Amarillo, Wichita Falls, Burkburnett, Byers, Henrietta, Dallas, Horseshoe Bay, Marble Falls and Fredericksburg, Texas.

Pursuant to the terms of the definitive agreement, Prosperity issued 3,583,370 shares of Prosperity common stock plus approximately $91.5 million in cash for all outstanding shares of First Bancshares. This resulted in goodwill of $164.8 million as of March 31, 2024, which was subject to subsequent fair value adjustments. During the second quarter of 2023, Prosperity completed the operational conversion of FirstCapital Bank.

Conference Call

Prosperity's management team will host a conference call on Wednesday, April 24, 2024, at 11:30 a.m. Eastern Time (10:30 a.m. Central Time) to discuss Prosperity's first quarter 2024 earnings. Individuals and investment professionals may participate in the call by dialing 1-877-883-0383 for domestic participants, or 1-412-902-6506 for international participants. The participant elite entry number is 5323694.

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, and the FDIC special assessment, 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 or write down of assets and securities; and the efficiency ratio, excluding net gains and losses on the sale or write down of assets and securities, merger related expenses and the 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 March 31, 2024, Prosperity Bancshares, Inc.^® is a $38.757 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 288 full-service banking locations: 65 in the Houston area, including The Woodlands; 30 in the South Texas area including Corpus Christi and Victoria; 62 in the Dallas/Fort Worth area; 22 in the East Texas area; 31 in the Central Texas area including Austin and San Antonio; 44 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 and 5 in the West Texas area currently doing business as Lone Star 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 loan 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 loan 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 a 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 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; 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, 2023, 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 $2.0 million, net of tax, primarily comprised of loan discount accretion of $1.9 million for the three months ended March 31, 2024.
(3)	Includes purchase accounting adjustments of $2.6 million, net of tax, primarily comprised of loan discount accretion of $2.5 million, merger related expenses of $278 thousand, and the FDIC special assessment of $19.9 million for the three months ended December 31, 2023.
(4)	Includes purchase accounting adjustments of $728 thousand, net of tax, primarily comprised of loan discount accretion of $871 thousand, and merger related expenses of $860 thousand for the three months ended March 31, 2023.

Bryan/College Station Area	Grapevine Main	Tyler-South Broadway	Tomball	West
Bryan	Kiest	Tyler-University	Waller
Bryan-29^th Street	Lake Highlands	Winnsboro	West Columbia	Odessa
Bryan-East	McKinney		Wharton	Grandview
Bryan-North	McKinney Eldorado	Houston Area	Winnie	Grant
Caldwell	McKinney Redbud	Houston	Wirt	Kermit Highway
College Station	North Carrolton	Aldine		Parkway
Hearne	Park Cities	Alief	South Texas Area -
Huntsville	Plano	Bellaire	Corpus Christi	Wichita Falls
Madisonville	Plano-West	Beltway	Calallen	Cattlemans
Navasota	Preston Forest	Clear Lake	Carmel	Kell
New Waverly	Preston Parker	Copperfield	Northwest
Rock Prairie	Preston Royal	Cypress	Saratoga	Other West Texas Area
Southwest Parkway	Red Oak	Downtown	Timbergate	Locations
Tower Point	Richardson	Eastex	Water Street	Big Spring
Wellborn Road	Richardson-West	Fairfield		Brownfield
	Rosewood Court	First Colony	Victoria	Brownwood
Central Texas Area	The Colony	Fry Road	Victoria Main	Burkburnett
Austin	Tollroad	Gessner	Victoria-Navarro	Byers
Cedar Park	Trinity Mills	Gladebrook	Victoria-North	Cisco
Congress	Turtle Creek	Grand Parkway	Victoria Salem	Comanche
Lakeway	West 15th Plano	Heights		Early
Liberty Hill	West Allen	Highway 6 West	Other South Texas Area	Floydada
Northland	Westmoreland	Little York	Locations	Gorman
Oak Hill	Wylie	Medical Center	Alice	Henrietta
Research Blvd		Memorial Drive	Aransas Pass	Levelland
Westlake	Fort Worth	Northside	Beeville	Littlefield
	Haltom City	Pasadena	Colony Creek	Merkel
Other Central Texas Area	Hulen	Pecan Grove	Cuero	Plainview
Locations	Keller	Pin Oak	Edna	San Angelo
Bastrop	Museum Place	River Oaks	Goliad	Slaton
Canyon Lake	Renaissance Square	Sugar Land	Gonzales	Snyder
Dime Box	Roanoke	SW Medical Center	Hallettsville
Dripping Springs	Stockyards	Tanglewood	Kingsville	Lone Star West Texas Area
Elgin		The Plaza	Mathis	Big Spring
Flatonia	Other Dallas/Fort Worth Area	Uptown	Padre Island	Brownfield
Fredericksburg	Locations	Waugh Drive	Palacios	Lubbock
Georgetown	Arlington	Westheimer	Port Lavaca	Midland
Gruene	Azle	West University	Portland	Odessa
Horseshoe Bay	Ennis	Woodcreek	Rockport
Kingsland	Gainesville		Sinton	Oklahoma
La Grange	Glen Rose	Katy	Taft	Central Oklahoma Area
Lexington	Granbury	Cinco Ranch	Yoakum	Oklahoma City
Marble Falls	Grand Prairie	Katy-Spring Green	Yorktown	23^rdStreet
New Braunfels	Jacksboro			Expressway
Pleasanton	Mesquite	The Woodlands	West Texas Area	I-240
Round Rock	Muenster	The Woodlands-College Park	Abilene	Memorial
San Antonio	Runaway Bay	The Woodlands-I-45	Antilley Road
Schulenburg	Sanger	The Woodlands-Research Forest	Barrow Street	Other Central Oklahoma Area
Seguin	Waxahachie		Cypress Street	Locations
Smithville	Weatherford	Other Houston Area	Judge Ely	Edmond
Thorndale		Locations	Mockingbird	Norman
Weimar	East Texas Area	Angleton
	Athens	Bay City	Amarillo	Tulsa Area
Dallas/Fort Worth Area	Blooming Grove	Beaumont	Hillside	Tulsa
Dallas	Canton	Cleveland	Soncy	Garnett
14th Street Plano	Carthage	East Bernard		Harvard
Abrams Centre	Corsicana	El Campo	Lubbock	Memorial
Addison	Crockett	Dayton	4th Street	Sheridan
Allen	Eustace	Galveston	66th Street	S. Harvard
Balch Springs	Gilmer	Groves	82nd Street	Utica Tower
Camp Wisdom	Grapeland	Hempstead	86th Street	Yale
Carrollton	Gun Barrel City	Hitchcock	98^th Street
Cedar Hill	Jacksonville	Liberty	Avenue Q	Other Tulsa Area Locations
Coppell	Kerens	Magnolia	Milwaukee	Owasso
East Plano	Longview	Magnolia Parkway	North University
Euless	Mount Vernon	Mont Belvieu	Texas Tech Student Union
Frisco	Palestine	Nederland
Frisco Warren	Rusk	Needville	Midland
Frisco-West	Seven Points	Rosenberg	North
Garland	Teague	Shadow Creek	Wadley
Grapevine	Tyler-Beckham	Spring	Wall Street

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

	Mar 31, 2024		Dec 31, 2023		Sep 30, 2023		Jun 30, 2023		Mar 31, 2023
Balance Sheet Data (at period end)
Loans held for sale	$	6,380	$	5,734	$	10,187	$	10,656	$	1,603
Loans held for investment		20,393,943		20,352,559		20,510,199		20,494,407		18,533,641
Loans held for investment - Warehouse Purchase Program		864,924		822,245		912,327		1,148,883		799,115
Total loans		21,265,247		21,180,538		21,432,713		21,653,946		19,334,359

Investment securities^(A)		12,301,138		12,803,896		13,192,742		13,667,319		14,071,545
Federal funds sold		250		260		234		181		222
Allowance for credit losses on loans		(330,219)		(332,362)		(351,495)		(345,209)		(282,191)
Cash and due from banks		1,086,444		458,153		512,239		396,848		405,331
Goodwill		3,396,402		3,396,086		3,396,459		3,383,698		3,231,636
Core deposit intangibles, net		60,757		63,994		67,553		71,128		48,974
Other real estate owned		2,204		1,708		9,320		3,107		1,989
Fixed assets, net		372,333		369,992		370,237		365,299		345,149
Other assets		601,964		605,612		665,682		708,814		672,218
Total assets	$	38,756,520	$	38,547,877	$	39,295,684	$	39,905,131	$	37,829,232

Noninterest-bearing deposits	$	9,526,535	$	9,776,572	$	10,281,893	$	10,364,921	$	10,108,348
Interest-bearing deposits		17,648,983		17,403,237		17,030,907		17,015,965		16,895,888
Total deposits		27,175,518		27,179,809		27,312,800		27,380,886		27,004,236
Other borrowings		3,900,000		3,725,000		4,250,000		4,800,000		3,365,000
Securities sold under repurchase agreements		261,671		309,277		300,714		434,160		434,261
Subordinated debentures		—		—		—		3,093		—
Allowance for credit losses on off-balance sheet credit exposures		36,503		36,503		36,503		36,503		29,947
Other liabilities		278,284		217,958		362,990		282,373		256,671
Total liabilities		31,651,976		31,468,547		32,263,007		32,937,015		31,090,115
Shareholders' equity^(B)		7,104,544		7,079,330		7,032,677		6,968,116		6,739,117
Total liabilities and equity	$	38,756,520	$	38,547,877	$	39,295,684	$	39,905,131	$	37,829,232


(A)	Includes $(2,954), $(1,770), $(2,442), $(3,393) and $(4,399) in unrealized losses on available for sale securities for the quarterly periods ended March 31, 2024, December 31, 2023, September 30, 2023, June 30, 2023 and March 31, 2023, respectively.
(B)	Includes $(2,333), $(1,398), $(1,930), $(2,681) and $(3,476) in after-tax unrealized losses on available for sale securities for the quarterly periods ended March 31, 2024, December 31, 2023, September 30, 2023, June 30, 2023 and March 31, 2023, respectively.

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

	Three Months Ended
	Mar 31, 2024		Dec 31, 2023		Sep 30, 2023		Jun 30, 2023		Mar 31, 2023
Income Statement Data
Interest income:
Loans	$	306,228	$	306,562	$	308,678	$	286,638	$	247,118
Securities^(C)		66,421		68,077		69,987		72,053		73,185
Federal funds sold and other earning assets		9,265		1,793		1,689		1,757		7,006
Total interest income		381,914		376,432		380,354		360,448		327,309

Interest expense:
Deposits		92,692		84,969		76,069		63,964		47,343
Other borrowings		48,946		52,386		62,190		57,351		34,396
Securities sold under repurchase agreements		2,032		2,094		2,533		2,674		2,103
Subordinated debentures		—		—		38		—		—
Total interest expense		143,670		139,449		140,830		123,989		83,842
Net interest income		238,244		236,983		239,524		236,459		243,467
Provision for credit losses		—		—		—		18,540		—
Net interest income after provision for credit losses		238,244		236,983		239,524		217,919		243,467

Noninterest income:
Nonsufficient funds (NSF) fees		8,288		8,365		8,719		8,512		8,095
Credit card, debit card and ATM card income		8,861		9,314		9,285		9,206		8,666
Service charges on deposit accounts		6,406		6,316		6,262		6,078		5,926
Trust income		4,156		3,360		3,326		3,358		3,225
Mortgage income		610		542		857		661		238
Brokerage income		1,235		1,059		1,067		1,000		1,149
Bank owned life insurance income		2,047		1,882		1,864		1,553		1,354
Net (loss) gain on sale or write-down of assets		(35)		(84)		(45)		1,994		121
Net gain on sale of securities		298		—		—		—		—
Other noninterest income		7,004		5,814		7,408		7,326		9,492
Total noninterest income		38,870		36,568		38,743		39,688		38,266

Noninterest expense:
Salaries and benefits		85,771		80,486		85,423		84,723		77,798
Net occupancy and equipment		8,623		9,093		9,464		8,935		8,025
Credit and debit card, data processing and software amortization		10,975		10,741		10,919		10,344		9,566
Regulatory assessments and FDIC insurance		5,538		24,940		5,155		5,097		4,973
Core deposit intangibles amortization		3,237		3,559		3,576		3,167		2,374
Depreciation		4,686		4,607		4,585		4,658		4,433
Communications		3,402		3,572		3,686		3,693		3,462
Other real estate expense		187		165		153		(464)		58
Net (gain) loss on sale or write-down of other real estate		(138)		34		(734)		(33)		(13)
Merger related expenses		—		278		1,104		12,891		860
Other noninterest expense		13,567		14,696		12,326		12,859		11,464
Total noninterest expense		135,848		152,171		135,657		145,870		123,000
Income before income taxes		141,266		121,380		142,610		111,737		158,733
Provision for income taxes		30,840		25,904		30,402		24,799		34,039
Net income available to common shareholders	$	110,426	$	95,476	$	112,208	$	86,938	$	124,694


(C)	Interest income on securities was reduced by net premium amortization of $5,822, $6,428, $6,897, $7,131 and $7,384 for the three months ended March 31, 2024, December 31, 2023, September 30, 2023, June 30, 2023 and March 31, 2023, respectively.

Prosperity Bancshares, Inc.^® Financial Highlights (Unaudited) (Dollars and share amounts in thousands, except per share data and market prices)

	Three Months Ended
	Mar 31, 2024		Dec 31, 2023		Sep 30, 2023		Jun 30, 2023		Mar 31, 2023

Profitability
Net income ^(D) (E)	$	110,426	$	95,476	$	112,208	$	86,938	$	124,694

Basic earnings per share	$	1.18	$	1.02	$	1.20	$	0.94	$	1.37
Diluted earnings per share	$	1.18	$	1.02	$	1.20	$	0.94	$

PROSPERITY BANCSHARES, INC.® REPORTS FIRST QUARTER 2024 EARNINGS