Prosperity Bancshares PB Impaired Loans Outstanding

Certain assets and liabilities are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). These instruments include other real estate owned, repossessed assets, held to maturity debt securities, loans held for sale and impaired loans, which are included as loans held for investment. For the three and six months ended June 30, 2026, the Company had additions to other real estate owned of $2.7 million and $5.3 million, respectively, of which $2.0 million and $4.4 million, respectively, were outstanding as of June 30, 2026. For the three and six months ended June 30, 2026, the Company had additions to impaired loans of $18.8 million and $34.5 million, respectively, of which $18.8 million and $33.3 million, respectively, were outstanding as of June 30, 2026. The remaining financial assets and liabilities measured at fair value on a non-recurring basis that were recorded in 2026 and remained outstanding at June 30, 2026, were not significant.