At December 31, 2024, Bancshares had one active stock-based incentive compensation plan with awards outstanding. The Company accounts for stock-based incentive compensation plans using the fair value-based method of accounting. The Company recognized stock-based compensation expense of $12.8 million, $12.2 million and $11.8 million for the years ended December 31, 2024, 2023 and 2022, respectively. There was approximately $1.6 million, $1.7 million and $1.5 million of income tax benefit recorded for the stock-based compensation expense for the same periods, respectively.

On March 3, 2020, Bancshares’ Board of Directors established the Prosperity Bancshares, Inc. 2020 Stock Incentive Plan (the “2020 Plan”), which was approved by the Bancshares’ shareholders at the annual meeting of shareholders on April 21, 2020. The 2020 Plan authorizes the issuance of up to 2,500,000 shares of common stock upon the exercise of options or pursuant to the grant or exercise, as the case may be, of other awards granted under the 2020 Plan, including incentive stock options, nonqualified stock options, stock appreciation rights, shares of restricted stock and restricted stock units. As of December 31, 2024, 422,257 shares of restricted common stock have vested and 569,160 shares of unvested restricted stock have been issued under the 2020 Plan.

During 2024, 2023 and 2022, Bancshares granted shares of restricted stock pursuant to the 2020 Plan. These shares of restricted stock generally vest over a period of one to three years. The Company accounts for restricted stock grants by recording the fair value of the grant as compensation expense over the vesting period. Compensation expense related to restricted stock was $12.8 million, $12.2 million and $11.8 million for the years ended December 31, 2024, 2023 and 2022, respectively.

A summary of the status of nonvested shares of restricted stock as of December 31, 2024, and changes during the year then ended is as follows:


	Number of Shares			Weighted Average Grant Date Fair Value
	(Shares in thousands)
Nonvested share awards outstanding, December 31, 2023		511		$	70.26
Share awards granted		432			64.16
Unvested share awards forfeited		(17	)		64.41
Share awards vested		(356	)		70.08
Nonvested share awards outstanding, December 31, 2024		570		$	65.88

The total fair value of restricted stock awards that fully vested during the year ended December 31, 2024 was $23.2 million.

As of December 31, 2024, there was $20.9 million of total unrecognized compensation expense related to stock-based compensation arrangements. That cost is expected to be recognized over a weighted average period of 1.44 years.