Prosperity Bancshares (PB) investor relations material

Executive summary

• Net income for Q2 2026 was $168.6 million, or $162.7 million excluding merger-related and non-recurring items, up 20.4%–24.7% year-over-year.

• Diluted EPS was $1.67, or $1.62 adjusted, up 14.1% from Q2 2025.

• Total assets reached $43.87 billion at June 30, 2026, up 14.1%–14.2% year-over-year, driven by organic growth and three major acquisitions.

• Completed the merger of Stellar Bancorp, Inc. on July 1, 2026, following earlier acquisitions of American Bank Holding Corporation and Southwest Bancshares, Inc. in 2026.

• Declared a $0.60 per share dividend for Q3 2026 and repurchased 1.04 million shares year-to-date.

Financial highlights

• Net interest income for Q2 2026 was $330.6 million, up 23.5% year-over-year; net interest margin rose 29 bps to 3.47%.

• Noninterest income for Q2 2026 was $60.7 million, up 41.2% year-over-year, aided by a gain from Visa stock exchange.

• Noninterest expense for Q2 2026 was $176.2 million, up 27.1% year-over-year, mainly due to higher salaries and merger-related costs.

• Allowance for credit losses on loans was $382.8 million (1.53% of total loans), up 14.7% from year-end 2025.

• Net charge-offs for the six months ended June 30, 2026, were $43.5 million, mainly due to commercial and industrial loans.

Outlook and guidance

• Management expects continued growth through internal expansion and integration of recent acquisitions, supported by strong economic conditions in Texas and Oklahoma.

• Positioned in high-growth markets, with no material changes in risk factors or market risk exposures anticipated for the remainder of 2026.