Revenue: As of FY2025, the actual value is USD 1.25 B, missing the estimate of USD 1.25 B.EPS: As of FY2025, the actual value is USD 5.72, beating the estimate of USD 5.6484.EBIT: As of FY2025, the actual value is USD -876.74 M, missing the estimate of USD 692.46 M.Prosperity Bancshares, Inc. operates as a single reportable operating segment, with all financial metrics presented on a company-wide basis .<h4>Revenue Categories</h4><ul><li>Net Interest Income: Net interest income before provision for credit losses was $1.08 billion in 2025, an increase of $55.0 million (5.4%) from $1.03 billion in 2024 . This increase was primarily due to decreased average balances and rates on other borrowings, and lower average rates on interest-bearing deposits, partially offset by reduced average balances and rates on federal funds sold and other earning assets, decreased investment securities balances, and lower average loan rates and loan discount accretion .</li><li>Noninterest Income: Noninterest income totaled $168.3 million in 2025, a $2.5 million (1.5%) increase from $165.8 million in 2024 . This increase was driven by higher other noninterest income and service charges on deposit accounts, partially offset by a decrease in net gain on sale or write-up of securities . Key components in 2025 included NSF fees ($37.55 million), credit card, debit card and ATM card income ($37.41 million), service charges on deposit accounts ($29.99 million), trust income ($14.65 million), mortgage income ($3.86 million), brokerage income ($5.39 million), bank owned life insurance income ($8.33 million), net gain on sale or write-down of assets ($1.22 million), and other income ($29.92 million) .</li></ul><h4>Operational Metrics</h4><ul><li>Net Income: Net income for 2025 was $542.8 million, an increase from $479.4 million in 2024 and $419.3 million in 2023 . The 2025 increase was mainly due to higher net interest income, reduced merger-related provisions and expenses, and lower regulatory assessments and FDIC insurance, partially offset by a decrease in net gain on sale or write-up of securities .</li><li>Diluted Earnings Per Share (EPS): Diluted EPS was $5.72 in 2025, up from $5.05 in 2024 and $4.51 in 2023 .</li><li>Returns on Assets and Equity: Returns on average assets were 1.42% in 2025, 1.21% in 2024, and 1.08% in 2023 . Returns on average common equity were 7.14% in 2025, 6.56% in 2024, and 6.03% in 2023 .</li><li>Efficiency Ratio (GAAP): The GAAP efficiency ratio was 44.50% in 2025, 47.85% in 2024, and 50.17% in 2023 .</li><li>Efficiency Ratio (excluding certain items): Excluding net gains and losses on the sale, write-down or write-up of assets and securities, the efficiency ratio was 44.55% in 2025, 48.43% in 2024, and 50.26% in 2023 .</li><li>Total Assets: Total assets decreased by $1.10 billion (2.8%) to $38.46 billion at December 31, 2025, from $39.57 billion at December 31, 2024 .</li><li>Total Deposits: Total deposits increased by $101.1 million (0.4%) to $28.48 billion at December 31, 2025, from $28.38 billion at December 31, 2024 . Noninterest-bearing deposits decreased by $330.5 million to $9.47 billion, while interest-bearing deposits increased by $431.7 million (2.3%) to $19.01 billion in 2025 .</li><li>Total Loans: Total loans decreased by $343.8 million (1.6%) to $21.81 billion at December 31, 2025, from $22.15 billion at December 31, 2024 . As of December 31, 2025, loans comprised 76.6% of deposits and 56.7% of total assets .</li><li>Nonperforming Assets: Nonperforming assets were $150.8 million at December 31, 2025, compared to $81.5 million at December 31, 2024 . Nonaccrual loans were $137.2 million at December 31, 2025, compared to $73.6 million at December 31, 2024 . Nonperforming assets represented 0.69% of total loans and other real estate at December 31, 2025, up from 0.37% at December 31, 2024 .</li><li>Allowance for Credit Losses on Loans: The allowance for credit losses on loans was $333.7 million (1.53% of total loans) at December 31, 2025, a decrease of $18.1 million (5.1%) from $351.8 million (1.59% of total loans) at December 31, 2024 . The allowance as a percentage of total nonperforming loans was 242.7% at December 31, 2025, compared to 463.9% at December 31, 2024 .</li><li>Net Charge-offs: Net charge-offs were $18.1 million for the year ended December 31, 2025, compared to $14.6 million in 2024 and $38.0 million in 2023 . For 2025, $18.9 million of reserves on resolved PCD loans were released to the general reserve .</li><li>Income Tax Expense: Income tax expense was $150.7 million for 2025, an increase of $17.5 million (13.1%) from $133.3 million in 2024 . The effective tax rate was 21.7% in 2025, 21.8% in 2024, and 21.5% in 2023 .</li></ul><h4>Loan Portfolio Composition (as of December 31, 2025)</h4><ul><li>Commercial and industrial: $2.30 billion (10.6% of total loans) .</li><li>Warehouse purchase program: $1.30 billion (6.0% of total loans) .</li><li>Real estate: $16.81 billion (77.0% of total loans), including construction, land development and other land loans ($2.74 billion), 1-4 family residential ($7.43 billion), home equity ($843.71 million), commercial real estate ($5.78 billion), and farmland ($662.03 million) .</li><li>Agriculture: $365.87 million (1.7% of total loans) .</li><li>Consumer: $106.19 million (0.5% of total loans) .</li><li>Other: $270.05 million (1.2% of total loans) .</li></ul><h4>Unique Metrics</h4><ul><li>Banking Locations: Prosperity Bank operated 283 full-service banking locations across Texas and Oklahoma as of December 31, 2025 .</li><li>Customer Accounts: The Bank maintained approximately 804,300 separate deposit accounts and 65,700 separate loan accounts as of December 31, 2025 .</li><li>Noninterest-bearing Demand Deposits: These represented 33.2% of total deposits at December 31, 2025 .</li><li>Average Cost of Funds: The average cost of funds was 1.61% for 2025, down from 1.87% in 2024 .</li><li>Average Cost of Deposits: The average cost of deposits (excluding all borrowings) was 1.37% for 2025 .</li><li>Trust Department Assets: Total assets were $2.89 billion, including $2.40 billion in managed assets, as of December 31, 2025 .</li><li>Securities Portfolio: The carrying amount of investment securities was $10.61 billion at December 31, 2025, representing 27.6% of total assets . The weighted average life was 4.31 years, with a modified duration of 3.68 years .</li><li>Regulatory Capital Ratios (as of December 31, 2025): CET1 to risk-weighted assets was 17.55%, Tier 1 capital to risk-weighted assets was 17.55%, Total capital to risk-weighted assets was 18.80%, and Tier 1 capital to average quarterly assets (leverage ratio) was 11.93% . The Company and Bank’s ratios exceeded applicable well-capitalized standards and met the capital conservation buffer .</li></ul><h4>Outlook / Guidance</h4>Prosperity Bancshares, Inc. is pursuing a growth strategy through internal growth and acquisitions to increase deposits and loans while maintaining efficiency and profitability . The Company recently completed the acquisitions of American Bank Holding Corporation and Southwest Bancshares, Inc. in early 2026 . A definitive merger agreement with Stellar Bancorp, Inc. is pending, which is expected to further expand banking offices in the greater Houston and Beaumont, Texas areas .

Prosperity Bancshares | 10-K: FY2025 Revenue Misses Estimate at USD 1.25 B