Core Viewpoint - Prosperity Bancshares, Inc. is set to announce its Third Quarter 2025 earnings on October 29, 2025, with a conference call scheduled for 10:30 AM Central Time, highlighting the company's ongoing commitment to transparency and communication with investors [1][2]. Company Overview - Prosperity Bancshares, Inc. is a regional financial holding company based in Houston, Texas, with total assets of $38.417 billion as of June 30, 2025, providing personal banking services and investments primarily in Texas and Oklahoma [3]. - Founded in 1983, the company adheres to a community banking philosophy, offering a range of financial solutions including traditional deposit and loan products, digital banking, credit and debit cards, mortgage services, treasury management, and wealth management services [4]. Operational Footprint - Prosperity operates 283 full-service banking locations across various regions, including 62 in the Houston area, 33 in South Texas, 61 in the Dallas/Fort Worth area, and additional branches in East, Central, and West Texas, as well as in Oklahoma [5].

Summary of National Bank Holdings Corporation Conference Call Company and Industry - **Company**: National Bank Holdings Corporation (NBH) - **Industry**: Banking and Financial Services Key Points and Arguments Merger Announcement - NBH announced a definitive agreement to merge with Vista Bank Shares, which is seen as a strategic move to enhance their presence in high-growth markets in the U.S. [3][4] - The merger is valued at approximately $369 million, with NBH issuing about 7.4 million shares and paying around $85 million in cash to Vista shareholders [4][5]. Financial Projections - The pro forma combined entities will have approximately $12.4 billion in total assets, $9.3 billion in total loans, and a core deposit base of $10.4 billion [5]. - The merger is projected to be 17% accretive to future earnings, with a tangible book value dilution expected to be earned back in approximately three years [5][6]. - Cost savings of 30% are anticipated due to identified efficiencies from the merger [5][34]. Strategic Fit and Cultural Alignment - The merger is described as a "perfect fit" culturally, with both companies sharing a strategic focus on supporting small and medium-sized businesses [3][9]. - Vista Bank's emphasis on trust, local expertise, and long-term client support aligns well with NBH's core principles [8][9]. Operational Insights - NBH has a history of successful strategic acquisitions and has conducted thorough due diligence on Vista's loan book, finding strong credit quality [6][7]. - The merger will allow NBH to leverage Vista's private banking practices and expand its wealth management capabilities [9][30]. Regulatory Considerations - NBH has been operating as if it were a $10 billion-plus institution for regulatory purposes, which positions it well for the merger [20]. - The Durbin Amendment will impact revenues by about $10 million annually once the $10 billion mark is crossed, but the merger is expected to drive revenues that offset this impact [21][22]. Market Opportunities - The merger is expected to enhance NBH's ability to expand lending exposure and deepen client relationships, particularly in the Dallas-Fort Worth metroplex [31][46]. - There are opportunities to optimize the cost of funds and improve deposit capabilities through the merger [59][61]. Closing Remarks - The management expressed excitement about the merger and the potential for future growth and strategic initiatives [67]. Additional Important Content - The call included discussions on the historical fee income variability of Vista Bank and the potential for increased fee income through best practices from NBH [43][44]. - The management emphasized the importance of maintaining a diverse loan portfolio while expanding lending capacity in Texas [46]. This summary captures the essential details and insights from the conference call regarding the merger between National Bank Holdings Corporation and Vista Bank Shares, highlighting the strategic, financial, and operational implications of the transaction.

Financial Data and Key Metrics Changes - Reported earnings were $1,000,000 or $0.01 per diluted share, while adjusted earnings were approximately $66,000,000 or $0.69 per diluted share [5] - Loans increased by $312,000,000 or 7% from the previous quarter, and deposits rose by $361,000,000 or 7% [6] - Core net interest margin expanded from 3.42% to 3.58%, while reported margin increased from 3.45% to 3.85% for the quarter [6] Business Line Data and Key Metrics Changes - Adjusted pre-provision net revenue was $103,000,000, with non-interest income at $48,300,000, reflecting a linked quarter increase of $11,900,000 [10] - Non-interest expense was $183,200,000 for the second quarter, with merger and conversion expenses of $20,500,000 included [10][11] Market Data and Key Metrics Changes - The fair value of assets acquired in the merger totaled $7,900,000,000, including total loans of $5,200,000,000 and total deposits of $6,400,000,000 [8] - The company experienced improvement in past due loan percentages, with non-performing loans remaining flat [9] Company Strategy and Development Direction - The merger with First Bank shares is seen as a significant opportunity for growth, with a focus on integrating teams and meeting customer needs [4][5] - The company aims for mid-single digit loan and deposit growth, with a strong pipeline and focus on capturing market share [26][27] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the integration process and the potential for future growth, emphasizing the importance of focusing on the merger's benefits [12][61] - The company is cautious about potential economic impacts but remains committed to achieving its strategic goals [36][39] Other Important Information - The adjusted total cost of deposits decreased by 18 basis points to 2.04%, while adjusted loan yields decreased by only one basis point to 6.18% [7] - The company expects additional conversion-related expenses in the third quarter, with a goal to achieve modeled synergies by year-end [11] Q&A Session Summary Question: Can you walk through the margin and expectations moving forward? - Management indicated that core margin is expected to see modest expansion, with two rate cuts anticipated later in the year [16][17] Question: What are the expectations for core expense levels in the next few quarters? - Management stated that efficiencies from the merger will start to show in Q3, with a clean income statement expected by Q1 next year [34][36] Question: Can you provide color on elevated charge-offs of problem loans? - Management clarified that the charge-offs were related to individual credits and not systemic issues, with expectations for future charge-offs to revert to historical averages [51][52] Question: What are the thoughts on potential buybacks? - Management emphasized that capital is primarily for organic growth, but buybacks are considered as part of the capital allocation strategy [55] Question: When might the company consider whole bank M&A again? - Management indicated that it is too early to plan for M&A, focusing instead on the successful integration of the current merger [61][62]