Prosperity Bancshares (PB) investor relations material

Executive summary

• Net income for Q1 2026 was $116.3 million, or $149.9 million excluding merger-related expenses, up 15.1% year-over-year; diluted EPS was $1.16, or $1.50 adjusted, up 9.5% year-over-year.

• Assets reached $43.6 billion, loans $25.3 billion, and deposits $32.6 billion as of March 31, 2026.

• Completed mergers with American Bank Holding Corporation and Southwest Bancshares, Inc.; announced and received regulatory approval for merger with Stellar Bancorp, Inc.

• Repurchased approximately 837,000 shares for $57.1 million and declared a $0.60 dividend for Q2 2026.

• Recognized by Forbes and Newsweek as a top regional bank in 2026.

Financial highlights

• Net interest income for Q1 2026 was $321.2 million, up 21% year-over-year; net interest margin increased to 3.51% from 3.30% in Q4 2025.

• Noninterest income grew 12.5% year-over-year to $46.5 million.

• Noninterest expense increased to $217.3 million, primarily due to merger-related costs and higher salaries/benefits.

• Efficiency ratio (excluding non-recurring charges) remained in the low 40% range; adjusted efficiency ratio was 47.58%.

• Total assets reached $43.6 billion, up 12.5% year-over-year.

Outlook and guidance

• All necessary regulatory approvals received for the Stellar Bancorp, Inc. merger, expected to close July 1, 2026.

• Positioned for continued growth in Texas and Oklahoma, benefiting from strong regional economies and population growth.

• Management anticipates continued benefits from recent mergers and further expansion following the Stellar Bancorp acquisition.