PROSPERITY BANCSHARES Business Summary

Prosperity Bancshares Inc. (PB) operates as a regional bank holding company for Prosperity Bank, generating revenue primarily through net interest income derived from a diverse loan portfolio—including commercial real estate, 1-4 family residential mortgages, and agricultural lending—supplemented by non-interest income from trust and wealth management, retail brokerage, and mortgage services. The company’s business model is centered on a decentralized community banking philosophy where each branch operates as an independent profit center, focusing on personalized service for small to medium-sized businesses and individual consumers across Texas and Oklahoma. Following the early 2026 completions of the American Bank and Southwest Bancshares mergers, and the announced acquisition of Stellar Bancorp, Prosperity has solidified its position as one of the largest Texas-based financial institutions by deposit market share. It competes directly with regional peers such as Ameris Bancorp, Hancock Whitney, International Bancshares, and Frost Bank, distinguishing itself through superior efficiency ratios and a disciplined M&A strategy that targets culturally aligned community banks. Founded in 1983, the company is led by Senior Chairman and CEO David Zalman, who has served as Chief Executive since 2001 and has been instrumental in scaling the firm from a local entity into a multi-billion dollar regional powerhouse. The executive leadership team includes President and COO Kevin Hanigan, an industry veteran who joined via the 2019 LegacyTexas merger, and CFO Asylbek Osmonov, who oversees the bank's financial reporting and capital management. The board of directors recently expanded to include Stephen Raffaele and Patt Hawn Wallace following the American Bank integration, joining long-tenured members such as Ned S. Holmes. Prosperity is characterized by high institutional ownership, with major stakeholders including The Vanguard Group and BlackRock, reflecting a market-leading reputation for conservative credit culture and a 20-plus-year track record of consistent dividend growth.