PROSPERITY BANCSHARES, INC.® REPORTS FOURTH QUARTER 2024 EARNINGS

Core Points - Prosperity Bancshares reported a net income of $130.1 million for Q4 2024, a 36.2% increase from $95.5 million in Q4 2023, with diluted earnings per share rising to $1.37 from $1.02 [1][5][10] - The company experienced a significant increase in deposits, up by $293.7 million in Q4 2024, while borrowings decreased by $700 million [1][19] - Nonperforming assets decreased to $81.5 million, representing 0.23% of average interest-earning assets, indicating strong asset quality [1][21] Financial Performance - For the year ended December 31, 2024, net income was $479.4 million, a 14.3% increase from $419.3 million in 2023, with earnings per share rising to $5.05 from $4.51 [10][11] - Net interest income before provision for credit losses for 2024 was $1.026 billion, up 7.3% from $956.4 million in 2023, driven by higher loan balances and rates [12] - The net interest margin improved to 2.93% for 2024, compared to 2.78% in 2023, reflecting better loan performance [13] Asset and Deposit Growth - Total assets increased to $39.567 billion as of December 31, 2024, a 2.6% rise from $38.548 billion a year earlier [17] - Loans reached $22.149 billion, a 4.6% increase from $21.181 billion in 2023, primarily due to the merger with Lone Star Bank [18] - Total deposits were $28.381 billion, up 4.4% from $27.180 billion in 2023, with noninterest-bearing deposits comprising 34.5% of total deposits [19][1] Merger Impact - The merger with Lone Star State Bancshares on April 1, 2024, contributed significantly to the growth in loans and deposits [30][31] - The merger resulted in goodwill of $106.7 million as of December 31, 2024, reflecting the strategic expansion of the company's operations [31] Future Outlook - The company expressed optimism about growth prospects in Texas and Oklahoma, citing favorable economic conditions and population growth [2][3] - Prosperity Bancshares has a strong capital position, allowing for potential mergers and acquisitions, stock repurchases, and organic growth without needing additional capital [3]