CULLEN/FROST REPORTS THIRD QUARTER RESULTS

Board declares fourth quarter dividend on common and preferred stock

SAN ANTONIO, Oct. 30, 2025 /PRNewswire/ -- Cullen/Frost Bankers, Inc. (NYSE: CFR) today reported third quarter 2025 results. Net income available to common shareholders for the third quarter of 2025 was $172.7 million compared to $144.8 million for the third quarter of 2024. On a per-share basis, net income available to common shareholders for the third quarter of 2025 was $2.67 per diluted common share, compared to $2.24 per diluted common share reported a year earlier. Returns on average assets and average common equity were 1.32 percent and 16.72 percent, respectively, for the third quarter of 2025 compared to 1.16 percent and 15.48 percent, respectively, for the same period a year earlier.

For the third quarter of 2025, net interest income on a taxable-equivalent basis was $463.7 million, up 9.1 percent compared to the same quarter in 2024. Average loans for the third quarter of 2025 increased $1.4 billion, or 6.8 percent, to $21.5 billion, from the $20.1 billion reported for the third quarter a year earlier, and increased $389.2 million, or 1.8 percent, compared to the second quarter of 2025. Average deposits for the third quarter increased $1.3 billion, or 3.3 percent, to $42.1 billion, compared to the $40.7 billion reported for last year's third quarter, and increased $310.9 million, or 0.7 percent, compared to the second quarter of 2025.

"In the third quarter, our business saw continued steady loan growth as well as the beginning of our usual seasonal strength in deposit flows in the back half of the year. We remained as laser-focused as ever on pursuing our strategy of opening new locations, extending the Frost experience to more families and businesses, and continuing to deliver top-quality digital banking tools along with an empathetic customer experience," said Cullen/Frost Chairman and CEO Phil Green.

"Year-to-date, we have had strong financial performance across the board, with net interest income up eight percent and fee income up nine percent, average loans up eight percent and average deposits up three percent. We continue to build momentum in our newer markets, and we are well-positioned to continue to deliver above-market organic growth in any interest rate environment."

For the first nine months of 2025, net income available to common shareholders was $477.3 million, up 12.9 percent, compared to $422.7 million for the first nine months of 2024. Diluted EPS available to common shareholders for the first nine months of 2025 was $7.36 compared to $6.51 in the year-earlier period. Returns on average assets and average common equity for the first nine months of 2025 were 1.24 percent and 15.98 percent, respectively, compared to 1.15 percent and 15.90 percent, respectively, for the same period in 2024.

Noted financial data for the third quarter of 2025 follows:

The Cullen/Frost board declared a fourth-quarter cash dividend of $1.00 per common share. The dividend on common stock is payable December 15, 2025 to shareholders of record on November 28 of this year. The board of directors also declared a cash dividend of $11.125 per share of Series B Preferred Stock (or $0.278125 per depositary share). The depositary shares representing the Series B Preferred Stock are traded on the NYSE under the symbol "CFR PrB." The Series B Preferred Stock dividend is payable December 15, 2025 to shareholders of record on November 28 of this year.

Cullen/Frost Bankers, Inc. will host a conference call on Thursday, October 30, 2025, at 1 p.m. Central Time (CT) to discuss the results for the quarter. The media and other interested parties are invited to access the call in a "listen only" mode at 1-877-709-8150 or via webcast on our investor relations website linked below. Playback of the conference call will be available after 5 p.m. CT on the day of the call until midnight Sunday, November 2, 2025 at 1-877-660-6853 with Conference ID # of 13756629. A replay of the call will also be available by webcast at the URL listed below after 5 p.m. CT on the day of the call.

Cullen/Frost investor relations website: https://investor.frostbank.com/

Cullen/Frost Bankers, Inc. (NYSE: CFR) is a financial holding company, headquartered in San Antonio, with $52.5 billion in assets at September 30, 2025. One of the 50 largest U.S. banks, Frost provides a wide range of banking, investments and insurance services to businesses and individuals across Texas in the Austin, Dallas, Fort Worth, Gulf Coast, Houston, Permian Basin, and San Antonio regions. Founded in 1868, Frost has helped clients with their financial needs during three centuries. Additional information is available at www.frostbank.com.

Forward-Looking Statements and Factors that Could Affect Future Results

Certain statements contained in this Earnings Release are not statements of historical fact constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"), notwithstanding that such statements are not specifically identified as such. In addition, certain statements may be contained in our future filings with the SEC, in press releases, and in oral and written statements made by us or with our approval that are not statements of historical fact and constitute forward-looking statements within the meaning of the Act. Examples of forward-looking statements include, but are not limited to: (i) projections of revenues, expenses, income or loss, earnings or loss per share, the payment or nonpayment of dividends, capital structure and other financial items; (ii) statements of plans, objectives and expectations of Cullen/Frost or its management or Board of Directors, including those relating to products, services or operations; (iii) statements of future economic performance; and (iv) statements of assumptions underlying such statements. Words such as "believes," "anticipates," "expects," "intends," "targeted," "continue," "remain," "will," "should," "may," and other similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements.

Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from those in such statements. Factors that could cause actual results to differ from those discussed in the forward-looking statements include, but are not limited to:

In addition, financial markets, international relations, and global supply chains have been significantly impacted by recent U.S. trade policies and practices. Due to the rapidly evolving and changing state of U.S. trade policies, the amount and duration of any tariffs and their ultimate impact on us, our customers, financial markets, and the overall U.S. and global economies is currently uncertain. Nonetheless, prolonged uncertainty, elevated tariff levels or their wide-spread use in U.S. trade policy could weaken economic conditions and adversely impact the ability of borrowers to repay outstanding loans or the value of collateral securing these loans or adversely affect financial markets. To the extent that these risks may have a negative impact on the financial condition of borrowers or financial markets, it could also have a material adverse effect on our business, financial condition and results of operations.

Forward-looking statements speak only as of the date on which such statements are made. We do not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made, or to reflect the occurrence of unanticipated events.

Cullen/Frost Bankers, Inc.

CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)

(In thousands, except per share amounts)

2025

2024

3rd Qtr

2nd Qtr

1st Qtr

4th Qtr

3rd Qtr

CONDENSED INCOME STATEMENTS

Net interest income

$ 441,618

$ 429,604

$ 416,220

$ 413,518

$ 404,331

Net interest income (1)

463,667

450,558

436,404

433,726

425,160

Credit loss expense

6,779

13,129

13,070

16,162

19,386

Non-interest income:

Trust and investment management fees

44,846

43,669

42,931

43,765

41,016

Service charges on deposit accounts

31,440

29,151

28,621

27,909

27,412

Insurance commissions and fees

15,424

13,879

21,019

14,215

14,839

Interchange and card transaction fees

5,547

5,619

5,402

5,764

5,428

Other charges, commissions, and fees

14,730

13,967

13,586

15,208

13,060

Net gain (loss) on securities transactions

—

(14)

(112)

Other

13,660

10,988

12,466

16,075

11,936

Total non-interest income

125,647

117,273

124,011

122,824

113,707

Non-interest expense:

Salaries and wages

169,155

162,149

160,857

165,520

156,637

Employee benefits

34,465

32,826

42,157

28,614

29,060

Net occupancy

34,682

34,640

33,277

32,102

32,497

Technology, furniture, and equipment

43,479

40,572

40,118

39,775

37,766

Deposit insurance

6,328

6,590

7,184

6,924

7,238

Other

64,369

70,351

64,473

63,232

60,212

Total non-interest expense

352,478

347,128

348,066

336,167

323,410

Income before income taxes

208,008

186,620

179,095

184,013

175,242

Income taxes

33,628

29,617

28,173

29,161

28,741

Net income

174,380

157,003

150,922

154,852

146,501

Preferred stock dividends

1,668

1,669

1,668

Net income available to common shareholders

$ 172,712

$ 155,334

$ 149,253

$ 153,183

$ 144,833

PER COMMON SHARE DATA

Earnings per common share - basic

$ 2.67

$ 2.39

$ 2.30

$ 2.37

$ 2.24

Earnings per common share - diluted

2.67

2.39

2.30

2.36

2.24

Cash dividends per common share

1.00

0.95

Book value per common share at end of quarter

67.64

63.04

61.74

58.46

62.41

OUTSTANDING COMMON SHARES

Period-end common shares

63,801

64,319

64,283

64,197

63,931

Weighted-average common shares - basic

64,080

64,300

64,255

64,116

63,958

Dilutive effect of stock compensation

121

127

Weighted-average common shares - diluted

64,121

64,352

64,329

64,237

64,085

SELECTED ANNUALIZED RATIOS

Return on average assets

1.32 %

1.22 %

1.19 %

1.16 %

Return on average common equity

16.72

15.64

15.54

15.58

15.48

Net interest income to average earning assets

3.69

3.67

3.60

3.53

3.56

(1) Taxable-equivalent basis assuming a 21% tax rate.

Cullen/Frost Bankers, Inc.

CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)

2025

2024

3rd Qtr

2nd Qtr

1st Qtr

4th Qtr

3rd Qtr

BALANCE SHEET SUMMARY

($ in millions)

Average Balance:

Loans

$ 21,452

$ 21,063

$ 20,788

$ 20,346

$ 20,084

Earning assets

48,492

47,664

47,424

47,577

46,100

Total assets

51,911

51,191

50,925

51,008

49,467

Non-interest-bearing demand deposits

13,839

13,788

13,798

14,051

13,659

Interest-bearing deposits

28,232

27,972

27,860

27,834

27,074

Total deposits

42,071

41,760

41,658

41,885

40,733

Shareholders' equity

4,243

4,129

4,041

4,057

3,868

Period-End Balance:

Loans

$ 21,446

$ 21,254

$ 20,904

$ 20,755

$ 20,055

Earning assets

49,147

47,756

48,409

48,878

47,424

Total assets

52,533

51,409

52,005

52,520

51,008

Total deposits

42,517

41,684

42,391

42,723

41,721

Shareholders' equity

4,461

4,200

4,114

3,899

4,135

Adjusted shareholders' equity (1)

5,385

5,341

5,243

5,151

5,051

ASSET QUALITY

($ in thousands)

Allowance for credit losses on loans:

$ 280,221

$ 277,803

$ 275,488

$ 270,151

$ 263,129

As a percentage of period-end loans

1.31 %

1.32 %

1.30 %

1.31 %

Net charge-offs:

$ 6,589

$ 11,151

$ 9,691

$ 13,962

$ 9,640

Annualized as a percentage of average loans

0.12 %

0.21 %

0.19 %

0.27 %

0.19 %

Non-accrual loans:

$ 44,778

$ 62,393

$ 83,534

$ 78,866

$ 104,877

As a percentage of total loans

0.21 %

0.29 %

0.40 %

0.38 %

0.52 %

As a percentage of total assets

0.09

0.12

0.16

0.15

0.21

CONSOLIDATED CAPITAL RATIOS

Common Equity Tier 1 Risk-Based Capital Ratio

14.14 %

13.98 %

13.84 %

13.62 %

13.55 %

Tier 1 Risk-Based Capital Ratio

14.59

14.43

14.30

14.07

14.02

Total Risk-Based Capital Ratio

16.04

15.88

15.76

15.53

15.50

Leverage Ratio

9.00

8.98

8.84

8.63

8.80

Equity to Assets Ratio (period-end)

8.49

8.17

7.91

7.42

8.11

Equity to Assets Ratio (average)

8.17

8.07

7.94

7.95

7.82

(1) Shareholders' equity excluding accumulated other comprehensive income (loss).

Cullen/Frost Bankers, Inc.

CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)

(In thousands, except per share amounts)

Nine Months Ended

September 30,

2025

2024

CONDENSED INCOME STATEMENTS

Net interest income

$ 1,287,442

$ 1,191,094

Net interest income (1)

1,350,630

1,254,148

Credit loss expense

32,978

48,823

Non-interest income:

Trust and investment management fees

131,446

121,505

Service charges on deposit accounts

89,212

78,321

Insurance commissions and fees

50,322

47,054

Interchange and card transaction fees

16,568

15,253

Other charges, commissions and fees

42,283

38,140

Net gain (loss) on securities transactions

(14)

Other

37,114

35,985

Total non-interest income

366,931

336,274

Non-interest expense:

Salaries and wages

492,161

455,874

Employee benefits

109,448

93,832

Net occupancy

102,599

96,649

Technology, furniture and equipment

124,169

108,712

Deposit insurance

20,102

30,345

Other

199,193

181,179

Total non-interest expense

1,047,672

966,591

Income before income taxes

573,723

511,954

Income taxes

91,418

84,264

Net income

482,305

427,690

Preferred stock dividends

5,006

Net income available to common shareholders

$ 477,299

$ 422,684

PER COMMON SHARE DATA

Earnings per common share - basic

$ 7.36

$ 6.52

Earnings per common share - diluted

7.36

6.51

Cash dividends per common share

$ 2.95

$ 2.79

Book value per common share at end of quarter

67.64

62.41

OUTSTANDING COMMON SHARES

Period-end common shares

63,801

63,931

Weighted-average common shares - basic

64,211

64,122

Dilutive effect of stock compensation

141

Weighted-average common shares - diluted

64,266

64,263

SELECTED ANNUALIZED RATIOS

Return on average assets

1.24 %

1.15 %

Return on average common equity

15.98

15.90

Net interest income to average earning assets

3.65

3.52

(1) Taxable-equivalent basis assuming a 21% tax rate.

Cullen/Frost Bankers, Inc.

CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)

As of or for the

Nine Months Ended

September 30,

2025

2024

BALANCE SHEET SUMMARY

($ in millions)

Average Balance:

Loans

$ 21,103

$ 19,618

Earning assets

47,864

45,838

Total assets

51,344

49,240

Non-interest-bearing demand deposits

13,809

13,771

Interest-bearing deposits

28,023

26,885

Total deposits

41,831

40,656

Shareholders' equity

4,139

3,697

Period-End Balance:

Loans

$ 21,446

$ 20,055

Earning assets

49,147

47,424

Total assets

52,533

51,008

Total deposits

42,517

41,721

Shareholders' equity

4,461

4,135

Adjusted shareholders' equity (1)

5,385

5,051

ASSET QUALITY

($ in thousands)

Allowance for credit losses on loans:

$ 280,221

$ 263,129

As a percentage of period-end loans

1.31 %

Net charge-offs:

27,431

26,715

Annualized as a percentage of average loans

0.17 %

0.18 %

Non-accrual loans:

$ 44,778

$ 104,877

As a percentage of total loans

0.21 %

0.52 %

As a percentage of total assets

0.09

0.21

CONSOLIDATED CAPITAL RATIOS

Common Equity Tier 1 Risk-Based Capital Ratio

14.14 %

13.55 %

Tier 1 Risk-Based Capital Ratio

14.59

14.02

Total Risk-Based Capital Ratio

16.04

15.50

Leverage Ratio

9.00

8.80

Equity to Assets Ratio (period-end)

8.49

8.11

Equity to Assets Ratio (average)

8.06

7.51

(1) Shareholders' equity excluding accumulated other comprehensive income (loss).

Cullen/Frost Bankers, Inc.

TAXABLE-EQUIVALENT YIELD/COST AND AVERAGE BALANCES (UNAUDITED)

2025

2024

3rd Qtr

2nd Qtr

1st Qtr

4th Qtr

3rd Qtr

TAXABLE-EQUIVALENT YIELD/COST (1)

Earning Assets:

Interest-bearing deposits

4.36 %

4.41 %

4.39 %

4.71 %

5.32 %

Federal funds sold

4.74

4.71

4.79

5.16

5.65

Resell agreements

4.58

4.59

4.60

4.88

5.48

Securities (2)

3.85

3.79

3.63

3.44

3.40

Loans, net of unearned discounts

6.61

6.60

6.57

6.77

7.12

Total earning assets

5.11

5.07

4.99

5.05

5.26

Interest-Bearing Liabilities:

Interest-bearing deposits:

Savings and interest checking

0.24 %

0.29 %

0.38 %

Money market deposit accounts

2.28

2.27

2.47

2.80

Time accounts

3.79

3.86

3.97

4.32

4.73

Total interest-bearing deposits

1.94

1.93

1.94

2.14

2.41

Total deposits

1.30

1.29

1.30

1.42

1.60

Federal funds purchased

4.34

4.37

4.40

4.71

5.33

Repurchase agreements

3.17

3.23

3.13

3.34

3.72

Junior subordinated deferrable interest debentures

6.30

6.32

6.87

7.14

Subordinated notes payable and other notes

4.69

Total interest-bearing liabilities

2.13

2.12

2.32

2.60

Net interest spread

2.98

2.95

2.87

2.73

2.66

Net interest income to total average earning assets

3.69

3.67

3.60

3.53

3.56

AVERAGE BALANCES

($ in millions)

Assets:

Interest-bearing deposits

$ 6,816

$ 6,169

$ 7,238

$ 8,577

$ 7,073

Federal funds sold

Resell agreements

Securities - carrying value (2)

20,213

20,401

19,384

18,640

18,898

Securities - amortized cost (2)

21,622

21,864

20,839

19,944

20,324

Loans, net of unearned discount

21,452

21,063

20,788

20,346

20,084

Total earning assets

$ 48,492

$ 47,664

$ 47,424

$ 47,577

$ 46,100

Liabilities:

Interest-bearing deposits:

Savings and interest checking

$ 9,689

$ 9,920

$ 9,969

$ 9,693

$ 9,470

Money market deposit accounts

11,817

11,518

11,432

11,683

11,122

Time accounts

6,726

6,534

6,458

6,482

Total interest-bearing deposits

28,232

27,972

27,860

27,834

27,074

Total deposits

42,071

41,760

41,658

41,885

40,733

Federal funds purchased

Repurchase agreements

4,593

4,250

4,147

3,946

3,777

Junior subordinated deferrable interest debentures

123

Subordinated notes payable and other notes

100

Total interest-bearing funds

$ 33,077

$ 32,471

$ 32,248

$ 32,027

$ 31,094

(1) Taxable-equivalent basis assuming a 21% tax rate.

(2) Average securities include unrealized gains and losses on securities available for sale while yields are based on average amortized cost.

A.B. Mendez

Investor Relations

210.220.5234

Bill Day

Media Relations

210.220.5427

SOURCE Cullen/Frost Bankers, Inc.