CULLEN/FROST REPORTS FOURTH QUARTER AND 2025 ANNUAL RESULTS

Board declares first quarter dividend on common and preferred stock, and authorizes $300 million stock repurchase program

SAN ANTONIO, Jan. 29, 2026 /PRNewswire/ -- Cullen/Frost Bankers, Inc. (NYSE: CFR) today reported fourth quarter and full-year results for 2025. Net income available to common shareholders for the fourth quarter of 2025 was $164.6 million, representing an increase of $11.4 million, or 7.4 percent, compared to $153.2 million reported for the fourth quarter of 2024. On a per-share basis, the company reported net income available to common shareholders of $2.56 per diluted common share for the fourth quarter of 2025, compared to $2.36 per diluted common share for the fourth quarter of 2024. For the fourth quarter of 2025, returns on average assets and average common equity were 1.22 percent and 14.80 percent, respectively, compared to 1.19 percent and 15.58 percent for the same period in 2024.

The company also reported 2025 annual net income available to common shareholders of $641.9 million, an increase of $66.0 million, or 11.5 percent, compared to 2024 earnings available to common shareholders of $575.9 million. On a per-share basis, 2025 earnings were $9.92 per diluted common share compared to $8.87 per diluted common share reported in 2024. For the year 2025, returns on average assets and average common equity were 1.24 percent and 15.66 percent respectively, compared to 1.16 percent and 15.81 percent reported in 2024.

"We carry great momentum with us as we enter 2026 and continue executing on a number of strategic growth initiatives," said Cullen/Frost Chairman and CEO, Phil Green. "Frost bankers throughout the state remain squarely focused on making our customers' lives better and supporting their growth in an increasing range of ways over time.

"We continue to execute on our organic growth strategy, and continue to believe that it is a durable and scalable strategy that will fuel Frost's growth for years to come. During the fourth quarter, we opened new financial centers in the Austin, Dallas, and San Antonio markets, bringing us to a total of 10 new locations opened during 2025."

For the fourth quarter of 2025, net interest income on a taxable-equivalent basis was $471.2 million, up $37.5 million, or 8.6 percent compared to $433.7 million for fourth quarter of 2024. Average loans for the fourth quarter of 2025 increased $1.3 billion, or 6.5 percent, to $21.7 billion, from the $20.3 billion reported for the fourth quarter a year earlier, and increased 1.0 percent compared to $21.5 billion for the third quarter of 2025. Average deposits for the quarter increased $1.5 billion, or 3.5 percent, to $43.3 billion compared to $41.9 billion in last year's fourth quarter, and increased $1.3 billion, or 3.0 percent, compared to $42.1 billion for the third quarter of 2025. Compared to the third quarter of 2025, fourth quarter average non-interest-bearing deposits increased by 3.1 percent and average interest-bearing deposits increased by 3.0 percent.

For full year 2025, average total loans were $21.2 billion, an increase of approximately $1.4 billion, or 7.3 percent, from the $19.8 billion reported in 2024. Average total deposits for 2025 were $42.2 billion, up $1.2 billion, or 3.0 percent, compared to the $41.0 billion reported for full year 2024.

Noted financial data for the fourth quarter:

The Cullen/Frost board declared a first-quarter cash dividend of $1.00 per common share, payable March 13, 2026, to shareholders of record on February 27 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 on March 16, 2026, to shareholders of record on February 27 of this year.

In addition, the company's board of directors approved a new share repurchase program with authorization to purchase up to $300 million of Cullen/Frost common stock over a one-year period expiring on January 27, 2027. Share repurchases under the authorization may be made through a variety of methods, which may include open market purchases, in privately negotiated transactions, block trades, accelerated share repurchase transactions, and/or through other legally permissible means. The timing and amount of any share repurchases under the authorization will be determined by management at its discretion and based on market conditions and other considerations. The share repurchase program may be suspended or discontinued at any time at the company's discretion and does not obligate Cullen/Frost to purchase any amount of common stock.

Cullen/Frost Bankers, Inc. will host a conference call on Thursday, January 29, 2026, at 1:00 p.m. Central Time (CT) to discuss the results for the quarter and the year. The media and other interested parties are invited to access the call in a "listen only" mode at 877-709-8150. Playback of the conference call will be available after 5:00 p.m. CT on the day of the call until midnight Sunday, February 1 at 877-660-6853, with the Conference ID# of 13757958. A replay of the call will also be available by webcast at the URL listed below after 5:00 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 $53.0 billion in assets at December 31, 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 frostbank.com.

Forward-Looking Statements and Factors that Could Affect Future Results

Certain statements contained in this press 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, 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 or the values of securities. 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

4th Qtr

3rd Qtr

2nd Qtr

1st Qtr

4th Qtr

CONDENSED INCOME STATEMENTS

Net interest income

$ 448,707

$ 441,618

$ 429,604

$ 416,220

$ 413,518

Net interest income (1)

471,218

463,667

450,558

436,404

433,726

Credit loss expense

11,224

6,779

13,129

13,070

16,162

Non-interest income:

Trust and investment management fees

45,651

44,846

43,669

42,931

43,765

Service charges on deposit accounts

32,360

31,440

29,151

28,621

27,909

Insurance commissions and fees

15,180

15,424

13,879

21,019

14,215

Interchange and card transaction fees

6,290

5,547

5,619

5,402

5,764

Other charges, commissions and fees

15,228

14,730

13,967

13,586

15,208

Net gain (loss) on securities transactions

(836)

—

(14)

(112)

Other

18,291

13,660

10,988

12,466

16,075

Total non-interest income

132,164

125,647

117,273

124,011

122,824

Non-interest expense:

Salaries and wages

182,486

169,155

162,149

160,857

165,520

Employee benefits

36,653

34,465

32,826

42,157

28,614

Net occupancy

34,341

34,682

34,640

33,277

32,102

Technology, furniture and equipment

41,575

43,479

40,572

40,118

39,775

Deposit insurance

(1,350)

6,328

6,590

7,184

6,924

Other

77,963

64,369

70,351

64,473

63,232

Total non-interest expense

371,668

352,478

347,128

348,066

336,167

Income before income taxes

197,979

208,008

186,620

179,095

184,013

Income taxes

31,727

33,628

29,617

28,173

29,161

Net income

166,252

174,380

157,003

150,922

154,852

Preferred stock dividends

1,669

1,668

1,669

Net income available to common shareholders

$ 164,583

$ 172,712

$ 155,334

$ 149,253

$ 153,183

PER COMMON SHARE DATA

Earnings per common share - basic

$ 2.56

$ 2.67

$ 2.39

$ 2.30

$ 2.37

Earnings per common share - diluted

2.56

2.67

2.39

2.30

2.36

Cash dividends per common share

1.00

0.95

Book value per common share at end of quarter

69.96

67.64

63.04

61.74

58.46

OUTSTANDING COMMON SHARES

Period-end common shares

63,287

63,801

64,319

64,283

64,197

Weighted-average common shares - basic

63,588

64,080

64,300

64,255

64,116

Dilutive effect of stock compensation

121

Weighted-average common shares - diluted

63,604

64,121

64,352

64,329

64,237

SELECTED ANNUALIZED RATIOS

Return on average assets

1.22 %

1.32 %

1.22 %

1.19 %

Return on average common equity

14.80

16.72

15.64

15.54

15.58

Net interest income to average earning assets (1)

3.66

3.69

3.67

3.60

3.53

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

Cullen/Frost Bankers, Inc.

CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)

2025

2024

4th Qtr

3rd Qtr

2nd Qtr

1st Qtr

4th Qtr

BALANCE SHEET SUMMARY

($ in millions)

Average Balance:

Loans

$ 21,661

$ 21,452

$ 21,063

$ 20,788

$ 20,346

Earning assets

50,033

48,492

47,664

47,424

47,577

Total assets

53,507

51,911

51,191

50,925

51,008

Non-interest-bearing demand deposits

14,268

13,839

13,788

13,798

14,051

Interest-bearing deposits

29,072

28,232

27,972

27,860

27,834

Total deposits

43,340

42,071

41,760

41,658

41,885

Shareholders' equity

4,558

4,243

4,129

4,041

4,057

Period-End Balance:

Loans

$ 21,892

$ 21,446

$ 21,254

$ 20,904

$ 20,755

Earning assets

49,524

49,147

47,756

48,409

48,878

Total assets

53,041

52,533

51,409

52,005

52,520

Total deposits

42,918

42,517

41,684

42,391

42,723

Shareholders' equity

4,573

4,461

4,200

4,114

3,899

Adjusted shareholders' equity (1)

5,416

5,385

5,341

5,243

5,151

ASSET QUALITY

($ in thousands)

Allowance for credit losses on loans:

$ 281,495

$ 280,221

$ 277,803

$ 275,488

$ 270,151

As a percentage of period-end loans

1.29 %

1.31 %

1.32 %

1.30 %

Net charge-offs:

$ 5,843

$ 6,589

$ 11,151

$ 9,691

$ 13,962

Annualized as a percentage of average loans

0.11 %

0.12 %

0.21 %

0.19 %

0.27 %

Non-accrual loans:

$ 70,482

$ 44,778

$ 62,393

$ 83,534

$ 78,866

As a percentage of total loans

0.32 %

0.21 %

0.29 %

0.40 %

0.38 %

As a percentage of total assets

0.13

0.09

0.12

0.16

0.15

CONSOLIDATED CAPITAL RATIOS

Common Equity Tier 1 Risk-Based Capital Ratio

14.06 %

14.14 %

13.98 %

13.84 %

13.62 %

Tier 1 Risk-Based Capital Ratio

14.50

14.59

14.43

14.30

14.07

Total Risk-Based Capital Ratio

15.95

16.04

15.88

15.76

15.53

Leverage Ratio

8.80

9.00

8.98

8.84

8.63

Equity to Assets Ratio (period-end)

8.62

8.49

8.17

7.91

7.42

Equity to Assets Ratio (average)

8.52

8.17

8.07

7.94

7.95

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

Cullen/Frost Bankers, Inc.

CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)

(In thousands, except per share amounts)

Year Ended December 31,

2025

2024

2023

CONDENSED INCOME STATEMENTS

Net interest income

$ 1,736,149

$ 1,604,612

$ 1,558,664

Net interest income (1)

1,821,848

1,687,873

1,651,695

Credit loss expense

44,202

64,985

46,171

Non-interest income:

Trust and investment management fees

177,097

165,270

153,315

Service charges on deposit accounts

121,572

106,230

93,504

Insurance commissions and fees

65,502

61,269

58,271

Interchange and card transaction fees

22,858

21,017

19,419

Other charges, commissions and fees

57,511

53,348

49,026

Net gain (loss) on securities transactions

(850)

(96)

Other

55,405

52,060

54,941

Total non-interest income

499,095

459,098

428,542

Non-interest expense:

Salaries and wages

674,647

621,394

547,718

Employee benefits

146,101

122,446

115,306

Net occupancy

136,940

128,751

124,396

Technology, furniture and equipment

165,744

148,487

135,286

Deposit insurance

18,752

37,269

76,589

Other

277,156

244,411

229,367

Total non-interest expense

1,419,340

1,302,758

1,228,662

Income before income taxes

771,702

695,967

712,373

Income taxes

123,145

113,425

114,400

Net income

648,557

582,542

597,973

Preferred stock dividends

6,675

Net income available to common shareholders

$ 641,882

$ 575,867

$ 591,298

PER COMMON SHARE DATA

Earnings per common share - basic

$ 9.92

$ 8.88

$ 9.11

Earnings per common share - diluted

9.92

8.87

9.10

Cash dividends per common share

3.95

3.74

3.58

Book value per common share at end of quarter

69.96

58.46

55.64

OUTSTANDING COMMON SHARES

Period-end common shares

63,287

64,197

64,185

Weighted-average common shares - basic

64,054

64,121

64,204

Dilutive effect of stock compensation

142

201

Weighted-average common shares - diluted

64,099

64,263

64,405

SELECTED ANNUALIZED RATIOS

Return on average assets

1.24 %

1.16 %

1.19 %

Return on average common equity

15.66

15.81

18.66

Net interest income to average earning assets (1)

3.66

3.53

3.45

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

Cullen/Frost Bankers, Inc.

CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)

Year Ended December 31,

2025

2024

2023

BALANCE SHEET SUMMARY ($ in millions)

Average Balance:

Loans

$ 21,244

$ 19,801

$ 17,893

Earning assets

48,411

46,275

46,186

Total assets

51,889

49,694

49,604

Non-interest-bearing demand deposits

13,924

13,841

15,340

Interest-bearing deposits

28,287

27,124

26,098

Total deposits

42,212

40,965

41,438

Shareholders' equity

4,244

3,787

3,313

Period-End Balance:

Loans

$ 21,892

$ 20,755

$ 18,824

Earning assets

49,524

48,878

47,124

Total assets

53,041

52,520

50,845

Total deposits

42,918

42,723

41,921

Shareholders' equity

4,573

3,899

3,716

Adjusted shareholders' equity (1)

5,416

5,151

4,836

ASSET QUALITY ($ in thousands)

Allowance for credit losses on loan:

$ 281,495

$ 270,151

$ 245,996

As a percentage of period-end loans

1.29 %

1.30 %

1.31 %

Net charge-offs:

$ 33,274

$ 40,677

$ 34,486

Annualized as a percentage of average loans

0.16 %

0.21 %

0.19 %

Non-accrual loans:

$ 70,482

$ 78,866

$ 60,907

As a percentage of total loans

0.32 %

0.38 %

0.32 %

As a percentage of total assets

0.13

0.15

0.12

CONSOLIDATED CAPITAL RATIOS

Common Equity Tier 1 Risk-Based Capital Ratio

14.06 %

13.62 %

13.25 %

Tier 1 Risk-Based Capital Ratio

14.50

14.07

13.73

Total Risk-Based Capital Ratio

15.95

15.53

15.18

Leverage Ratio

8.80

8.63

8.35

Equity to Assets Ratio (period-end)

8.62

7.42

7.31

Equity to Assets Ratio (average)

8.18

7.62

6.68

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

Cullen/Frost Bankers, Inc.

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

2025

2024

4th Qtr

3rd Qtr

2nd Qtr

1st Qtr

4th Qtr

TAXABLE-EQUIVALENT YIELD/COST (1)

Earning Assets:

Interest-bearing deposits

3.93 %

4.36 %

4.41 %

4.39 %

4.71 %

Federal funds sold

4.28

4.74

4.71

4.79

5.16

Resell agreements

4.13

4.58

4.59

4.60

4.88

Securities (2)

3.82

3.85

3.79

3.63

3.44

Loans, net of unearned discounts

6.43

6.61

6.60

6.57

6.77

Total earning assets

4.94

5.11

5.07

4.99

5.05

Interest-Bearing Liabilities:

Interest-bearing deposits:

Savings and interest checking

0.19 %

0.24 %

0.29 %

Money market deposit accounts

2.08

2.28

2.27

2.47

Time accounts

3.45

3.79

3.86

3.97

4.32

Total interest-bearing deposits

1.75

1.94

1.93

1.94

2.14

Total deposits

1.17

1.30

1.29

1.30

1.42

Federal funds purchased

3.94

4.34

4.37

4.40

4.71

Repurchase agreements

2.87

3.17

3.23

3.13

3.34

Junior subordinated deferrable interest debentures

6.05

6.30

6.32

6.87

Subordinated notes payable and other notes

4.69

Total interest-bearing liabilities

1.92

2.13

2.12

2.32

Net interest spread

3.02

2.98

2.95

2.87

2.73

Net interest income to total average earning assets

3.66

3.69

3.67

3.60

3.53

AVERAGE BALANCES

($ in millions)

Assets:

Interest-bearing deposits

$ 8,431

$ 6,816

$ 6,169

$ 7,238

$ 8,577

Federal funds sold

Resell agreements

Securities - carrying value (2)

19,929

20,213

20,401

19,384

18,640

Securities - amortized cost (2)

20,995

21,622

21,864

20,839

19,944

Loans, net of unearned discount

21,661

21,452

21,063

20,788

20,346

Total earning assets

$ 50,033

$ 48,492

$ 47,664

$ 47,424

$ 47,577

Liabilities:

Interest-bearing deposits:

Savings and interest checking

$ 9,899

$ 9,689

$ 9,920

$ 9,969

$ 9,693

Money market deposit accounts

12,619

11,817

11,518

11,432

11,683

Time accounts

6,554

6,726

6,534

6,458

Total interest-bearing deposits

29,072

28,232

27,972

27,860

27,834

Total deposits

43,340

42,071

41,760

41,658

41,885

Federal funds purchased

Repurchase agreements

4,586

4,593

4,250

4,147

3,946

Junior subordinated deferrable interest debentures

123

Subordinated notes payable and other notes

100

Total interest-bearing funds

$ 33,909

$ 33,077

$ 32,471

$ 32,248

$ 32,027

(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.