CULLEN/FROST REPORTS FIRST QUARTER RESULTS

CULLEN/FROST REPORTS FIRST QUARTER RESULTS Board increases quarterly common dividend by 3.0 percent to $1.03

SAN ANTONIO, April 30, 2026 /PRNewswire/ -- Cullen/Frost Bankers, Inc. (NYSE: CFR) today reported first quarter 2026 results. Net income available to common shareholders for the first quarter of 2026 was $169.3 million, compared to $149.3 million for the first quarter of 2025. On a per-share basis, net income available to common shareholders for the first quarter of 2026 was $2.65 per diluted common share, compared to $2.30 per diluted common share reported a year earlier. Returns on average assets and average common equity were 1.32 percent and 15.15 percent, respectively, for the first quarter of 2026, compared to 1.19 percent and 15.54 percent, respectively, for the same period a year earlier.

For the first quarter of 2026, net interest income on a taxable-equivalent basis was $460.8 million, up 5.6 percent compared to the same quarter in 2025. Average loans for the first quarter of 2026 increased $1.2 billion, or 5.9 percent, to $22.0 billion, from the $20.8 billion reported for the first quarter a year earlier, and increased $349.3 million, or 1.6 percent, compared to the fourth quarter of 2025. Average deposits for the first quarter increased $567.9 million, or 1.4 percent, to $42.2 billion, compared to the $41.7 billion reported for last year's first quarter, and decreased $1.1 billion, or 2.6 percent, compared to the fourth quarter of 2025.

"We had a solid start to the year, with average loan growth of just under six percent and continued steady growth in deposits compared to the year-ago period," said Cullen/Frost Chairman and CEO Phil Green.

With the opening of our Arboretum location in the Austin area, our 205th location, we have increased our total branch count by more than 50 percent since we started our Houston region expansion in December of 2018, and are very pleased with our results. Thanks to the hard work of Frost Bankers throughout the state, through the first quarter we have accumulated $2.6 billion in loans and $3.2 billion in deposits at our expansion locations in Houston, Dallas and Austin."

Noted financial data for the first quarter of 2026 follows:

The Cullen/Frost board declared a second-quarter cash dividend of $1.03 per common share, representing a 3.0 percent increase compared to the previous quarterly dividend of $1.00 per share. The dividend on common stock is payable June 15, 2026 to shareholders of record on May 29 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 June 15, 2026 to shareholders of record on May 29 of this year.

Cullen/Frost Bankers, Inc. will host a conference call on Thursday, April 30, 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, May 3, 2026 at 1-877-660-6853 with Conference ID # of 13759870. 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 $52.7 billion in assets at March 31, 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, 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, military conflict between the U.S. and Iran has contributed to heightened uncertainty and volatility in global markets. Such conditions can result in price volatility in energy and commodity markets, changes in inflation expectations, increased financial market volatility, and potential disruptions to global supply chains and trade flows. The timing, magnitude, and duration of these impacts are uncertain and may evolve rapidly based on geopolitical developments, policy responses, and market conditions. Heightened geopolitical uncertainty may influence Federal Reserve policy decisions and broader financial conditions, including interest‑rate volatility, funding costs, and liquidity conditions. These factors could adversely affect our funding profile; customer credit quality, particularly in sectors sensitive to energy prices, global trade, or economic cycles; and the market value of certain financial instruments. Prolonged volatility could also negatively impact economic growth, increase borrower stress, and contribute to higher credit losses, any of which could have a material adverse effect on our business, financial condition, and results of operations. We will continue to monitor these developments and adjust our risk management and capital planning strategies as appropriate.

Furthermore, financial markets, international relations, and global supply chains continue to be significantly impacted by evolving U.S. trade policies and practices. The scope, duration, and ultimate impact of tariffs on us, our customers, financial markets, and the U.S. and global economies remain uncertain, particularly following the U.S. Supreme Court's February 20, 2026 ruling that the International Emergency Economic Powers Act ("IEEPA") does not authorize presidential tariff authority, which invalidated prior IEEPA‑based tariffs. This ruling has introduced uncertainty regarding the timing and extent of potential tariff refunds, as well as the likelihood of new or replacement tariffs imposed under alternative statutory authorities under U.S. trade law. These developments may affect customer cash flows, credit conditions, supply chain decisions, and overall market activity and volatility, thereby increasing our exposure to operational, credit, and market risks. If such uncertainty negatively affects borrower financial condition or market stability, it could 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)

2026

2025

1st Qtr

4th Qtr

3rd Qtr

2nd Qtr

1st Qtr

CONDENSED INCOME STATEMENTS

Net interest income

$ 438,522

$ 448,707

$ 441,618

$ 429,604

$ 416,220

Net interest income (1)

460,792

471,218

463,667

450,558

436,404

Credit loss expense

6,745

11,224

6,779

13,129

13,070

Non-interest income:

Trust and investment management fees

47,957

45,651

44,846

43,669

42,931

Service charges on deposit accounts

32,157

32,360

31,440

29,151

28,621

Insurance commissions and fees

22,075

15,180

15,424

13,879

21,019

Interchange and card transaction fees

6,532

6,290

5,547

5,619

5,402

Other charges, commissions, and fees

13,268

15,228

14,730

13,967

13,586

Net gain (loss) on securities transactions

—

(836)

—

(14)

Other

14,326

18,291

13,660

10,988

12,466

Total non-interest income

136,315

132,164

125,647

117,273

124,011

Non-interest expense:

Salaries and wages

166,190

182,486

169,155

162,149

160,857

Employee benefits

44,656

36,653

34,465

32,826

42,157

Net occupancy

34,753

34,341

34,682

34,640

33,277

Technology, furniture, and equipment

41,674

41,575

43,479

40,572

40,118

Deposit insurance

7,203

(1,350)

6,328

6,590

7,184

Other

71,210

77,963

64,369

70,351

64,473

Total non-interest expense

365,686

371,668

352,478

347,128

348,066

Income before income taxes

202,406

197,979

208,008

186,620

179,095

Income taxes

31,419

31,727

33,628

29,617

28,173

Net income

170,987

166,252

174,380

157,003

150,922

Preferred stock dividends

1,669

1,668

1,669

Net income available to common shareholders

$ 169,318

$ 164,583

$ 172,712

$ 155,334

$ 149,253

PER COMMON SHARE DATA

Earnings per common share - basic

$ 2.65

$ 2.56

$ 2.67

$ 2.39

$ 2.30

Earnings per common share - diluted

2.65

2.56

2.67

2.39

2.30

Cash dividends per common share

1.00

0.95

Book value per common share at end of quarter

69.83

69.96

67.64

63.04

61.74

OUTSTANDING COMMON SHARES

Period-end common shares

62,797

63,287

63,801

64,319

64,283

Weighted-average common shares - basic

63,101

63,588

64,080

64,300

64,255

Dilutive effect of stock compensation

—

Weighted-average common shares - diluted

63,101

63,604

64,121

64,352

64,329

SELECTED ANNUALIZED RATIOS

Return on average assets

1.32 %

1.22 %

1.32 %

1.22 %

1.19 %

Return on average common equity

15.15

14.80

16.72

15.64

15.54

Net interest income to average earning assets

3.74

3.66

3.69

3.67

3.60

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

Cullen/Frost Bankers, Inc.

CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)

2026

2025

1st Qtr

4th Qtr

3rd Qtr

2nd Qtr

1st Qtr

BALANCE SHEET SUMMARY

($ in millions)

Average Balance:

Loans

$ 22,011

$ 21,661

$ 21,452

$ 21,063

$ 20,788

Earning assets

48,628

50,033

48,492

47,664

47,424

Total assets

52,122

53,507

51,911

51,191

50,925

Non-interest-bearing demand deposits

13,944

14,268

13,839

13,788

13,798

Interest-bearing deposits

28,282

29,072

28,232

27,972

27,860

Total deposits

42,226

43,340

42,071

41,760

41,658

Shareholders' equity

4,677

4,558

4,243

4,129

4,041

Period-End Balance:

Loans

$ 22,432

$ 21,892

$ 21,446

$ 21,254

$ 20,904

Earning assets

49,172

49,524

49,147

47,756

48,409

Total assets

52,725

53,041

52,533

51,409

52,005

Total deposits

42,836

42,918

42,517

41,684

42,391

Shareholders' equity

4,531

4,573

4,461

4,200

4,114

Adjusted shareholders' equity (1)

5,454

5,416

5,385

5,341

5,243

ASSET QUALITY

($ in thousands)

Allowance for credit losses on loans:

$ 286,215

$ 281,495

$ 280,221

$ 277,803

$ 275,488

As a percentage of period-end loans

1.28 %

1.29 %

1.31 %

1.32 %

Net charge-offs:

$ 5,741

$ 5,843

$ 6,589

$ 11,151

$ 9,691

Annualized as a percentage of average loans

0.11 %

0.12 %

0.21 %

0.19 %

Non-accrual loans:

$ 72,350

$ 70,482

$ 44,778

$ 62,393

$ 83,534

As a percentage of total loans

0.32 %

0.21 %

0.29 %

0.40 %

As a percentage of total assets

0.14

0.13

0.09

0.12

0.16

CONSOLIDATED CAPITAL RATIOS

Common Equity Tier 1 Risk-Based Capital Ratio

14.07 %

14.06 %

14.14 %

13.98 %

13.84 %

Tier 1 Risk-Based Capital Ratio

14.51

14.50

14.59

14.43

14.30

Total Risk-Based Capital Ratio

15.89

15.95

16.04

15.88

15.76

Leverage Ratio

9.13

8.80

9.00

8.98

8.84

Equity to Assets Ratio (period-end)

8.59

8.62

8.49

8.17

7.91

Equity to Assets Ratio (average)

8.97

8.52

8.17

8.07

7.94

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

Cullen/Frost Bankers, Inc.

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

2026

2025

1st Qtr

4th Qtr

3rd Qtr

2nd Qtr

1st Qtr

TAXABLE-EQUIVALENT YIELD/COST (1)

Earning Assets:

Interest-bearing deposits

3.64 %

3.93 %

4.36 %

4.41 %

4.39 %

Federal funds sold

3.97

4.28

4.74

4.71

4.79

Resell agreements

4.06

4.13

4.58

4.59

4.60

Securities (2)

3.85

3.82

3.85

3.79

3.63

Loans, net of unearned discounts

6.23

6.43

6.61

6.60

6.57

Total earning assets

4.88

4.94

5.11

5.07

4.99

Interest-Bearing Liabilities:

Interest-bearing deposits:

Savings and interest checking

0.16 %

0.19 %

0.24 %

Money market deposit accounts

1.88

2.08

2.28

2.27

Time accounts

3.14

3.45

3.79

3.86

3.97

Total interest-bearing deposits

1.55

1.75

1.94

1.93

1.94

Total deposits

1.04

1.17

1.30

1.29

1.30

Federal funds purchased

3.62

3.94

4.34

4.37

4.40

Repurchase agreements

2.70

2.87

3.17

3.23

3.13

Junior subordinated deferrable interest debentures

5.63

6.05

6.30

6.32

Subordinated notes payable and other notes

4.69

Total interest-bearing liabilities

1.72

1.92

2.13

2.12

Net interest spread

3.16

3.02

2.98

2.95

2.87

Net interest income to total average earning assets

3.74

3.66

3.69

3.67

3.60

AVERAGE BALANCES

($ in millions)

Assets:

Interest-bearing deposits

$ 6,752

$ 8,431

$ 6,816

$ 6,169

$ 7,238

Federal funds sold

Resell agreements

Securities - carrying value (2)

19,853

19,929

20,213

20,401

19,384

Securities - amortized cost (2)

20,825

20,995

21,622

21,864

20,839

Loans, net of unearned discount

22,011

21,661

21,452

21,063

20,788

Total earning assets

$ 48,628

$ 50,033

$ 48,492

$ 47,664

$ 47,424

Liabilities:

Interest-bearing deposits:

Savings and interest checking

$ 10,036

$ 9,899

$ 9,689

$ 9,920

$ 9,969

Money market deposit accounts

11,900

12,619

11,817

11,518

11,432

Time accounts

6,346

6,554

6,726

6,534

6,458

Total interest-bearing deposits

28,282

29,072

28,232

27,972

27,860

Total deposits

42,226

43,340

42,071

41,760

41,658

Federal funds purchased

Repurchase agreements

4,160

4,586

4,593

4,250

4,147

Junior subordinated deferrable interest debentures

123

Subordinated notes payable and other notes

100

Total interest-bearing funds

$ 32,689

$ 33,909

$ 33,077

$ 32,471

$ 32,248

(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.