PROSPERITY BANCSHARES, INC.® REPORTS FIRST QUARTER 2025 EARNINGS

Core Insights - Prosperity Bancshares reported a net income of $130.2 million for Q1 2025, a 17.9% increase from $110.4 million in Q1 2024, with diluted earnings per share rising to $1.37 from $1.18 [1][7] - The net interest margin improved to 3.14% in Q1 2025, up from 2.79% in Q1 2024, driven by higher asset repricing [9][11] - The company maintained strong asset quality with nonperforming assets at 0.24% of average interest-earning assets [21] Financial Performance - Net interest income before provision for credit losses was $265.4 million for Q1 2025, an increase of 11.4% from $238.2 million in Q1 2024 [8][11] - Noninterest income rose to $41.3 million in Q1 2025, a 6.3% increase compared to $38.9 million in Q1 2024 [10][11] - Noninterest expense increased to $140.3 million in Q1 2025, up 3.3% from $135.8 million in Q1 2024, primarily due to salary increases related to the merger [13][11] Balance Sheet Highlights - Total assets as of March 31, 2025, were $38.765 billion, a slight increase from $38.757 billion a year earlier [14] - Loans increased to $21.978 billion, up 3.3% from $21.265 billion in Q1 2024, largely due to the merger [15][11] - Deposits reached $28.027 billion, a 3.1% increase from $27.176 billion in Q1 2024 [16][11] Capital and Asset Quality - The tangible equity to tangible assets ratio was 11.2%, with tangible equity amounting to $3.952 billion [4][11] - The allowance for credit losses on loans was $349.1 million, representing 1.59% of total loans [23][11] - Net charge-offs for Q1 2025 were $2.7 million, compared to $2.1 million in Q1 2024 [24][11] Market Recognition - Prosperity Bancshares has been recognized as one of Forbes' Best Banks since 2010 and was named the "Best Overall Bank in Texas" for 2024-2025 [3][11] - The company was also ranked among "America's Best Regional Banks" by Newsweek in 2025 [3][11] Economic Context - The Texas economy is experiencing solid employment growth and increased sales tax revenue, indicating a favorable economic environment for banking operations [5][11] - Despite uncertainties related to tariffs, management remains optimistic based on customer feedback regarding future outlooks and plans [6][11]