Financial Data and Key Metrics - Net income for Q4 2023 was $95 million, or $1.02 per diluted share, compared to $112 million, or $1.20 per diluted share, in Q3 2023, impacted by a one-time FDIC special assessment of $19.9 million and merger-related expenses [192] - Excluding the FDIC special assessment and merger-related expenses, net income was $111 million, or $1.19 per diluted share [192] - Annualized return on average assets, average common equity, and average tangible common equity (excluding one-time items) were 1.15%, 6.29%, and 12.3%, respectively [195] - Net interest margin (NIM) was 2.75% in Q4 2023, up from 2.72% in Q3 2023, but down from 3.05% in Q4 2022 [55] - Unrealized losses on the held-to-maturity bond book decreased from $1.6 billion to $1.1 billion net of tax in Q4 2023 [19] Business Line Data and Key Metrics - Loans decreased by $252 million (1.2%) to $21.2 billion in Q4 2023 compared to Q3 2023, but increased by $2.3 billion (12.4%) year-over-year [181] - Non-performing assets (NPAs) increased to $72.7 million in Q4 2023, up from $69.5 million in Q3 2023, primarily due to the First Bancshares merger [50] - Net charge-offs increased to $19.1 million in Q4 2023, up from $3.4 million in Q3 2023, largely due to the FirstCapital Bank merger [61] - The allowance for credit losses was $369 million, covering 5.1x non-performing loans [43] Market Data and Key Metrics - Deposits decreased by $133 million (0.5%) to $27.2 billion in Q4 2023 compared to Q3 2023, and by $1.4 billion (4.7%) year-over-year [45] - Non-interest-bearing deposits accounted for 36% of total deposits, with certificates of deposit representing only 13% [193] - The loan-to-deposit ratio was 62%-65%, well below the policy limit of 85% [10] Company Strategy and Industry Competition - The company is focused on maintaining liquidity and core deposits, avoiding broker deposits, and growing loans and deposits in tandem [12] - The company expects loan growth to be back-end loaded in 2024, with a target of 3%-5% growth, driven by repricing of fixed-rate loans and new loan production [135] - The company is optimistic about M&A opportunities, particularly in Texas and Oklahoma, and is awaiting regulatory approval for the Lone Star State Bancshares acquisition [51][93] - The company is positioned to benefit from asset repricing, with $2.1 billion in bond cash flows expected to be reinvested at higher rates, enhancing NIM and net interest income (NII) [13][167] Management Commentary on Operating Environment and Future Outlook - Management expects NIM to expand to historically normal levels over the next 24 months, with a target of 3.30%-3.40%, driven by loan repricing and reduced borrowing costs [68][69] - The company anticipates deposit growth of 2% in 2024, with potential for higher growth if rates decline and customers return funds to non-interest-bearing accounts [73][177] - Management is cautious about the pace of rate cuts, expecting fewer cuts than the market anticipates, but believes the company is well-positioned to benefit from either rate increases or decreases [111][125] Other Important Information - The company has a strong capital position, with a CET1 ratio of 10%, and is focused on increasing dividends and pursuing M&A opportunities rather than aggressive share buybacks [28][173] - The company is monitoring regulatory proposals on interchange and overdraft fees, which could impact service charge income if implemented [101][105] Q&A Session Summary Question: Outlook for NIM and NII in 2024 - The company expects NIM to expand to 2.96% in 6 months and 3.14% in 12 months, driven by loan repricing and reduced borrowing costs [69][70] - The company is not assuming significant rate cuts in its model but believes NIM will still expand even if rates decline [70][125] Question: Deposit Growth and Repricing - The company expects deposit growth of 2% in 2024, with potential for higher growth if rates decline [73][177] - The company has $3.5 billion in CDs maturing within 12 months, which can be repriced quickly if rates decline [88] Question: Loan Growth and Prepayment Activity - The company expects 3%-5% loan growth in 2024, with potential for higher growth if the economy rebounds [135] - Prepayment activity has slowed, with fewer payoffs in Q4 2023 compared to Q3 2023 [111] Question: M&A Strategy and Lone Star Deal - The company is awaiting regulatory approval for the Lone Star State Bancshares acquisition and remains interested in M&A opportunities, particularly in Texas and Oklahoma [51][93] - The company is focused on acquiring banks with strong core deposits and good management teams [170] Question: Impact of Rate Cuts on NIM - The company believes its balance sheet is neutrally positioned, with NIM expected to expand even if rates decline [123][125] - The company expects to benefit from reduced borrowing costs if rates decline, offsetting any impact on loan yields [122][124]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO COMMISSION FILE NUMBER: 001-35388 PROSPERITY BANCSHARES, INC.® | Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ...

Prosperity Bancshares, Inc. (NYSE:PB) Q3 2023 Earnings Conference Call October 25, 2023 11:30 AM ET Company Participants Charlotte Rasche – Executive Vice President and General Counsel David Zalman – Senior Chairman and Chief Executive Officer Asylbek Osmonov – Chief Financial Officer H. E. Tim Timanus, Jr. – Chairman Kevin Hanigan – President and Chief Operating Officer Randy Hester – Chief Lending Officer Conference Call Participants Brady Gailey – KBW Dave Rochester – Compass Point Michael Rose – Raymond ...

"Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995 Third Quarter Highlights • Deposits, excluding public fund deposits, increased $259.9 million, with no brokered deposits purchased • Loans, excluding Warehouse Purchase Program loans and loans acquired in the Merger, increased $111.1 million during third quarter 2023 • Nonperforming assets to average earning assets remain low at 0.20% or $69.5 million • Pending merger with Lone Star State Bancshares, Inc. | --- | --- | --- | ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (State or other jurisdiction of incorporation or organization) Prosperity Bank Plaza 4295 San Felipe, Houston, Texas 77027 (Address of principal executive offices) (Zip Code) FOR THE QUARTERLY PERIOD ENDED June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSIT ...

Prosperity Bancshares, Inc. (NYSE:PB) Q2 2023 Earnings Conference Call July 26, 2023 11:30 AM ET Company Participants Charlotte Rasche - Executive Vice President & General Counsel David Zalman - Senior Chairman & Chief Executive Officer Asylbek Osmonov - Chief Financial Officer Tim Timanus - Chairman Kevin Hanigan - President & Chief Operating Officer Conference Call Participants Michael Rose - Raymond James Peter Winter - D.A. Davidson Dave Rochester - Compass Point Brady Gailey - KBW Manan Gosalia - Morga ...

Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 UNITED STATES SECURITIES AND EXCHANGE COMMISSION FOR THE QUARTERLY PERIOD ENDED March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO COMMISSION FILE NUMBER: 001-35388 PROSPERITY BANCSHARES, INC.® (Exact name of registrant as specified in its charter) (State or other jurisdiction of incor ...

Prosperity Bancshares, Inc. (NYSE:PB) Q1 2023 Earnings Conference Call April 26, 2023 11:30 AM ET Company Participants Charlotte Rasche - Executive Vice President & General Counsel David Zalman - Senior Chairman & Chief Executive Officer Asylbek Osmonov - Chief Financial Officer Tim Timanus - Chairman Kevin Hanigan - President & Chief Operating Officer Conference Call Participants Brady Gailey - KBW Peter Winter - D.A. Davidson Brad Milsaps - Piper Sandler Michael Rose - Raymond James Brett Rabatin - Hovde ...

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: This presentation contains, and the remarks by Prosperity's management at the annual meeting 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 release ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For The Fiscal Year Ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-35388 PROSPERITY BANCSHARES, INC.® (Exact name of registrant as specified in its charter) | TEXAS | 74-2331986 | | --- | --- | | (Sta ...