PROSPERITY BANCSHARES, INC.® REPORTS SECOND QUARTER 2024 EARNINGS

Core Viewpoint - Prosperity Bancshares, Inc. reported strong financial results for the second quarter of 2024, driven by the recent merger with Lone Star State Bancshares, Inc. and an increase in net interest income, despite incurring merger-related expenses and provisions for credit losses. Financial Performance - Net income for the second quarter of 2024 was $111.6 million, up from $86.9 million in the same period of 2023, with diluted earnings per share increasing to $1.17 from $0.94 [1][2] - Excluding merger-related provisions and expenses, net income was $116.6 million, or $1.22 per diluted share [1][2] - Net interest income before provision for credit losses was $258.8 million, an increase of $20.5 million or 8.6% from the previous quarter [1][2] - The net interest margin increased to 2.94% from 2.79% in the previous quarter and 2.73% in the same period last year [1][2] Loan and Deposit Growth - Total loans increased by $1.06 billion, or 5.0%, during the second quarter of 2024, with loans excluding Warehouse Purchase Program loans rising by $839.1 million, or 4.1% [1][2] - Total deposits increased by $757.6 million, or 2.8%, with noninterest-bearing deposits comprising 34.7% of total deposits [1][2] Asset Quality - The allowance for credit losses on loans was $397.5 million, representing 1.69% of total loans, with nonperforming assets remaining low at 0.25% of average interest-earning assets [1][3] - Net charge-offs for the first half of 2024 were $6.5 million, down from $15.5 million in the same period of 2023 [5] Merger Impact - The merger with Lone Star State Bancshares was completed on April 1, 2024, resulting in the issuance of 2,376,182 shares of Prosperity common stock and approximately $64.1 million in cash [1][8] - Goodwill from the merger was recorded at $107.7 million, with core deposit intangibles recognized at $17.7 million as of June 30, 2024 [1][8] Shareholder Returns - The company returned $284.6 million to shareholders over the past twelve months, including $74.8 million through share repurchases and $209.8 million through cash dividends [1][2] - A cash dividend of $0.56 per share was declared for the third quarter of 2024, payable on October 1, 2024 [7] Market Position - Prosperity Bancshares operates 288 full-service banking locations across Texas and Oklahoma, focusing on community banking and providing a range of financial services [10]