CULLEN/FROST REPORTS THIRD QUARTER RESULTS

CULLEN/FROST REPORTS THIRD QUARTER RESULTS Board declares fourth quarter dividend on common and preferred stock

SAN ANTONIO, Oct. 29, 2026 /PRNewswire/ -- Cullen/Frost Bankers, Inc. (NYSE: CFR) today reported third quarter 2026 results.

Net income available to common shareholders for the third quarter of 2026 was $178.5 million, compared to $172.7 million for the third quarter of 2025. On a per-share basis, net income available to common shareholders for the third quarter of 2026 was $2.84 per diluted common share, compared to $2.67 per diluted common share reported a year earlier. Returns on average assets and average common equity were 1.31 percent and 16.16 percent, respectively, for the third quarter of 2026, compared to 1.32 percent and 16.72 percent, respectively, for the same period a year earlier.

For the third quarter of 2026, net interest income on a taxable-equivalent basis was $490.8 million, up 5.8 percent compared to the same quarter in 2025. Average loans for the third quarter of 2026 increased $1.9 billion, or 9.0 percent, to $23.4 billion, from the $21.5 billion reported for the third quarter a year earlier, and increased $756.4 million, or 3.3 percent, compared to the second quarter of 2026. Average deposits for the third quarter increased $1.5 billion, or 3.6 percent, to $43.6 billion, compared to the $42.1 billion reported for last year's third quarter, and increased $959.2 million, or 2.3 percent, compared to the second quarter of 2026.

"During the third quarter, Frost Bankers continued their outstanding execution of our organic growth strategy, and as a result, we saw another quarter of accelerating growth in average loan and deposit volumes," said Cullen/Frost Chairman and CEO, Phil Green.

"As people and businesses continue to move into Texas from other parts of the country, we see great opportunity to continue extending the Frost experience to more new Texans. That includes retail customers and businesses new to the state alike. During the third quarter we kept up a strong pace of new customer additions, growing the overall banking customer base at a five percent yearly rate. In our Wealth Management business, we grew managed customer accounts by more than five percent compared to a year ago. And our Frost Insurance Agency increased commercial customers by over ten percent compared to the third quarter of 2025.

"I want to recognize the outstanding focus and execution of our employees throughout the state as they meet the challenge of competing and winning against competitors old and new."

For the first nine months of 2026, net income available to common shareholders was $518.2 million, up 8.6 percent compared to $477.3 million for the first nine months of 2025. On a per-share basis, net income available to common shareholders for the first nine months of 2026 was $8.19, up 11.3 percent compared to $7.36 in the year-earlier period. Returns on average assets and average common equity for the first nine months of 2026 were 1.31 percent and 15.57 percent, respectively, compared to 1.24 percent and 15.98 percent, respectively, for the same period in 2025.

Noted financial data for the third quarter of 2026 follows:

The Cullen/Frost board declared a fourth-quarter cash dividend of $1.03 per common share. The dividend on common stock is payable December 15, 2026 to shareholders of record on November 30 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, 2026 to shareholders of record on November 30 of this year.

Cullen/Frost Bankers, Inc. will host a conference call on Thursday, October 29, 2026, 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 1, 2026 at 1-877-660-6853 with Conference ID # of 13763286. 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 $54.5 billion in assets at September 30, 2026. 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 (which includes Corpus Christi, Victoria and the Rio Grande Valley), 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 that 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, ongoing geopolitical tensions, armed conflicts, regional instability, sanctions, cyber-related threats, and attacks affecting commercial shipping and critical infrastructure have increased geopolitical uncertainty and contributed to volatility in financial, energy, and commodity markets. Military conflict in the Middle East has disrupted energy markets and shipping routes, including through the Strait of Hormuz, while the ongoing Russia-Ukraine war and other geopolitical tensions continue to present risks to global economic and market conditions. Further escalation, including disruptions to shipping routes, energy supplies, critical infrastructure, or global supply chains, or expanded sanctions, trade restrictions, or cyber-related incidents, could adversely affect economic activity, inflation, market conditions, and borrower credit quality. These developments could also adversely affect our funding profile, liquidity, customer and counterparty credit quality, and the value of certain financial instruments and could have a material adverse effect on our business, financial condition, results of operations, and prospects. The timing, magnitude, duration, and geographic scope of these developments remain highly uncertain.

Furthermore, financial markets, international relations, and global supply chains continue to be affected by evolving trade policies and related legal, regulatory, and administrative developments. In February 2026, the U.S. Supreme Court ruled that the International Emergency Economic Powers Act does not authorize the President to impose tariffs, invalidating tariffs previously imposed under that authority. The U.S. government subsequently implemented additional tariff measures under other statutory authorities, certain of which remain subject to legal challenges. Uncertainty regarding U.S. trade policy and the economic effects of tariffs and other trade restrictions could affect business confidence, capital investment, customer cash flows, supply chains, commodity prices, inflation, and market volatility. These developments could adversely affect the financial condition and operating performance of customers, particularly those in trade-sensitive industries, and increase our exposure to credit, market, liquidity, operational, compliance, and reputational risks. If these developments adversely affect borrower credit quality, market stability, or broader economic conditions, they could have a material adverse effect on our business, financial condition, results of operations, and prospects.

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)

2026

2025

3rd Qtr

2nd Qtr

1st Qtr

4th Qtr

3rd Qtr

CONDENSED INCOME STATEMENTS

Net interest income

$ 467,867

$ 447,728

$ 438,522

$ 448,707

$ 441,618

Net interest income (1)

490,767

470,066

460,792

471,218

463,667

Credit loss expense

12,090

9,767

6,745

11,224

6,779

Non-interest income:

Trust and investment management fees

49,472

47,643

47,957

45,651

44,846

Service charges on deposit accounts

36,304

34,177

32,157

32,360

31,440

Insurance commissions and fees

15,838

14,166

22,075

15,180

15,424

Interchange and card transaction fees

6,843

6,546

6,532

6,290

5,547

Other charges, commissions, and fees

13,911

13,787

13,268

15,228

14,730

Net gain (loss) on securities transactions

(7,512)

—

(836)

—

Other

21,106

11,962

14,326

18,291

13,660

Total non-interest income

135,962

128,281

136,315

132,164

125,647

Non-interest expense:

Salaries and wages

182,183

172,955

166,190

182,486

169,155

Employee benefits

33,649

35,156

44,656

36,653

34,465

Net occupancy

35,848

35,223

34,753

34,341

34,682

Technology, furniture, and equipment

46,145

42,564

41,674

41,575

43,479

Deposit insurance

6,941

6,305

7,203

(1,350)

6,328

Other

72,434

69,497

71,210

77,963

64,369

Total non-interest expense

377,200

361,700

365,686

371,668

352,478

Income before income taxes

214,539

204,542

202,406

197,979

208,008

Income taxes

34,330

32,483

31,419

31,727

33,628

Net income

180,209

172,059

170,987

166,252

174,380

Preferred stock dividends

1,668

1,669

1,668

Net income available to common shareholders

178,541

170,390

169,318

164,583

172,712

PER COMMON SHARE DATA

Earnings per common share - basic

2.84

2.70

2.65

2.56

2.67

Earnings per common share - diluted

2.84

2.70

2.65

2.56

2.67

Cash dividends per common share

1.03

1.00

Book value per common share at end of quarter

61.70

72.04

69.83

69.96

67.64

OUTSTANDING COMMON SHARES

Period-end common shares

62,056

62,149

62,797

63,287

63,801

Weighted-average common shares - basic

62,117

62,455

63,101

63,588

64,080

Dilutive effect of stock compensation

—

Weighted-average common shares - diluted

62,117

62,455

63,101

63,604

64,121

SELECTED ANNUALIZED RATIOS

Return on average assets

1.31 %

1.30 %

1.32 %

1.22 %

1.32 %

Return on average common equity

16.16

15.41

15.15

14.80

16.72

Net interest income to average earning assets

3.78

3.75

3.74

3.66

3.69

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

Cullen/Frost Bankers, Inc.

CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)

2026

2025

3rd Qtr

2nd Qtr

1st Qtr

4th Qtr

3rd Qtr

BALANCE SHEET SUMMARY

($ in millions)

Average Balance:

Loans

23,378

22,622

22,011

21,661

21,452

Earning assets

50,450

49,082

48,628

50,033

48,492

Total assets

54,115

52,626

52,122

53,507

51,911

Non-interest-bearing demand deposits

14,360

14,027

13,944

14,268

13,839

Interest-bearing deposits

29,219

28,592

28,282

29,072

28,232

Total deposits

43,579

42,620

42,226

43,340

42,071

Shareholders' equity

4,529

4,581

4,677

4,558

4,243

Period-End Balance:

Loans

23,657

22,976

22,432

21,892

21,446

Earning assets

50,515

50,260

49,172

49,524

49,147

Total assets

54,516

53,881

52,725

53,041

52,533

Total deposits

44,222

43,334

42,836

42,918

42,517

Shareholders' equity

3,974

4,623

4,531

4,573

4,461

Adjusted shareholders' equity (1)

5,578

5,474

5,454

5,416

5,385

ASSET QUALITY

($ in thousands)

Allowance for credit losses on loans:

290,258

283,712

286,215

281,495

280,221

As a percentage of period-end loans

1.23 %

1.28 %

1.29 %

1.31 %

Net charge-offs:

8,364

9,527

5,741

5,843

6,589

Annualized as a percentage of average loans

0.14 %

0.17 %

0.11 %

0.12 %

Non-accrual loans/loans held for sale:

63,704

112,717

72,350

70,482

44,778

As a percentage of total loans and loans held for sale

0.27 %

0.49 %

0.32 %

0.21 %

As a percentage of total assets

0.12

0.21

0.14

0.13

0.09

CONSOLIDATED CAPITAL RATIOS

Common Equity Tier 1 Risk-Based Capital Ratio

13.76 %

13.95 %

14.07 %

14.06 %

14.14 %

Tier 1 Risk-Based Capital Ratio

14.18

14.38

14.51

14.50

14.59

Total Risk-Based Capital Ratio

15.50

15.74

15.89

15.95

16.04

Leverage Ratio

8.98

9.06

9.13

8.80

9.00

Equity to Assets Ratio (period-end)

7.29

8.58

8.59

8.62

8.49

Equity to Assets Ratio (average)

8.37

8.71

8.97

8.52

8.17

(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,

2026

2025

CONDENSED INCOME STATEMENTS

Net interest income

$ 1,354,117

$ 1,287,442

Net interest income (1)

1,421,626

1,350,630

Credit loss expense

28,602

32,978

Non-interest income:

Trust and investment management fees

145,072

131,446

Service charges on deposit accounts

102,638

89,212

Insurance commissions and fees

52,079

50,322

Interchange and card transaction fees

19,921

16,568

Other charges, commissions and fees

40,966

42,283

Net gain (loss) on securities transactions

(7,512)

(14)

Other

47,394

37,114

Total non-interest income

400,558

366,931

Non-interest expense:

Salaries and wages

521,328

492,161

Employee benefits

113,461

109,448

Net occupancy

105,824

102,599

Technology, furniture and equipment

130,383

124,169

Deposit insurance

20,449

20,102

Other

213,141

199,193

Total non-interest expense

1,104,586

1,047,672

Income before income taxes

621,487

573,723

Income taxes

98,232

91,418

Net income

523,255

482,305

Preferred stock dividends

5,006

Net income available to common shareholders

518,249

477,299

PER COMMON SHARE DATA

Earnings per common share - basic

8.19

7.36

Earnings per common share - diluted

8.19

7.36

Cash dividends per common share

3.06

2.95

Book value per common share at end of quarter

61.70

67.64

OUTSTANDING COMMON SHARES

Period-end common shares

62,056

63,801

Weighted-average common shares - basic

62,554

64,211

Dilutive effect of stock compensation

—

Weighted-average common shares - diluted

62,554

64,266

SELECTED ANNUALIZED RATIOS

Return on average assets

1.31 %

1.24 %

Return on average common equity

15.57

15.98

Net interest income to average earning assets

3.76

3.65

(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,

2026

2025

BALANCE SHEET SUMMARY

($ in millions)

Average Balance:

Loans

22,675

21,103

Earning assets

49,394

47,864

Total assets

52,974

51,344

Non-interest-bearing demand deposits

14,112

13,809

Interest-bearing deposits

28,701

28,023

Total deposits

42,813

41,831

Shareholders' equity

4,595

4,139

Period-End Balance:

Loans

23,657

21,446

Earning assets

50,515

49,147

Total assets

54,516

52,533

Total deposits

44,222

42,517

Shareholders' equity

3,974

4,461

Adjusted shareholders' equity (1)

5,578

5,385

ASSET QUALITY

($ in thousands)

Allowance for credit losses on loans:

290,258

280,221

As a percentage of period-end loans

1.23 %

1.31 %

Net charge-offs:

23,632

27,431

Annualized as a percentage of average loans

0.14 %

0.17 %

Non-accrual loans/loans held for sale:

63,704

44,778

As a percentage of total loans and loans held for sale

0.27 %

0.21 %

As a percentage of total assets

0.12 %

0.09

CONSOLIDATED CAPITAL RATIOS

Common Equity Tier 1 Risk-Based Capital Ratio

13.76 %

14.14 %

Tier 1 Risk-Based Capital Ratio

14.18

14.59

Total Risk-Based Capital Ratio

15.50

16.04

Leverage Ratio

8.98

9.00

Equity to Assets Ratio (period-end)

7.29

8.49

Equity to Assets Ratio (average)

8.67

8.06

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

Cullen/Frost Bankers, Inc.

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

2026

2025

3rd Qtr

2nd Qtr

1st Qtr

4th Qtr

3rd Qtr

TAXABLE-EQUIVALENT YIELD/COST (1)

Earning Assets:

Interest-bearing deposits

3.68 %

3.65 %

3.64 %

3.93 %

4.36 %

Federal funds sold

4.24

3.97

4.28

4.74

Resell agreements

—

4.06

4.13

4.58

Securities (2)

4.09

3.96

3.85

3.82

3.85

Loans, net of unearned discounts

6.27

6.17

6.23

6.43

6.61

Total earning assets

5.03

4.92

4.88

4.94

5.11

Interest-Bearing Liabilities:

Interest-bearing deposits:

Savings and interest checking

0.15 %

0.16 %

0.19 %

0.24 %

Money market deposit accounts

2.12

1.92

1.88

2.08

2.28

Time accounts

3.30

3.24

3.14

3.45

3.79

Total interest-bearing deposits

1.73

1.61

1.55

1.75

1.94

Total deposits

1.16

1.08

1.04

1.17

1.30

Federal funds purchased

3.68

3.66

3.62

3.94

4.34

Repurchase agreements

2.67

2.65

2.70

2.87

3.17

Junior subordinated deferrable interest debentures

5.71

5.60

5.63

6.05

6.30

Subordinated notes payable and other notes

4.69

Total interest-bearing liabilities

1.89

1.77

1.72

1.92

2.13

Net interest spread

3.14

3.15

3.16

3.02

2.98

Net interest income to total average earning assets

3.78

3.75

3.74

3.66

3.69

AVERAGE BALANCES

($ in millions)

Assets:

Interest-bearing deposits

5,830

5,808

6,752

8,431

6,816

Federal funds sold

Resell agreements

—

Securities - carrying value (2)

21,241

20,648

19,853

19,929

20,213

Securities - amortized cost (2)

22,517

21,766

20,825

20,995

21,622

Loans, net of unearned discount

23,378

22,622

22,011

21,661

21,452

Total earning assets

$ 50,450

$ 49,082

$ 48,628

$ 50,033

$ 48,492

Liabilities:

Interest-bearing deposits:

Savings and interest checking

9,827

9,938

10,036

9,899

9,689

Money market deposit accounts

12,746

12,145

11,900

12,619

11,817

Time accounts

6,645

6,509

6,346

6,554

6,726

Total interest-bearing deposits

29,219

28,592

28,282

29,072

28,232

Total deposits

43,579

42,620

42,226

43,340

42,071

Federal funds purchased

Repurchase agreements

4,850

4,379

4,160

4,586

4,593

Junior subordinated deferrable interest debentures

123

Subordinated notes payable and other notes

100

Total interest-bearing funds

34,350

33,219

32,689

33,909

33,077

(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.