A.B. Mendez

Investor Relations

210.220.5234

or

Bill Day

Media Relations

210.220.5427

FOR IMMEDIATE RELEASE    

July 31, 2025

SAN ANTONIO -- Cullen/Frost Bankers, Inc. (NYSE:CFR) today reported second quarter 2025 results.

Net income available to common shareholders for the second quarter of 2025 was $155.3 million compared to $143.8 million for the second quarter of 2024. On a per-share basis, net income available to common shareholders for the second quarter of 2025 was $2.39 per diluted common share, compared to $2.21 per diluted common share reported a year earlier. Returns on average assets and average common equity were 1.22 percent and 15.64 percent, respectively, for the second quarter of 2025 compared to 1.18 percent and 17.08 percent, respectively, for the same period a year earlier.

For the second quarter of 2025, net interest income on a taxable-equivalent basis was $450.6 million, up 7.9 percent compared to the same quarter in 2024. Average loans for the second quarter of 2025 increased $1.4 billion, or 7.2 percent, to $21.1 billion, from the $19.7 billion reported for the second quarter a year earlier, and increased $274.1 million, or 1.3 percent, compared to the first quarter of 2025. Average deposits for the second quarter increased $1.3 billion, or 3.1 percent, to $41.8 billion, compared to the $40.5 billion reported for last year's second quarter, and increased $102.4 million, or 0.2 percent, compared to the first quarter of 2025.

“Our strong performance in the second quarter demonstrates the durability of our organic growth model and is a testament to the consistent focus and execution of Frost bankers throughout the state and in every area of the company. We again posted solid loan growth, and despite the second quarter typically being a seasonally weak period for deposits, we saw a slight increase in average total deposits compared to the first quarter," said
Cullen/Frost Chairman and CEO Phil Green.

For the first six months of 2025, net income available to common shareholders was $304.6 million, up 9.6 percent compared to $277.9 million for the first six months of 2024. Diluted EPS available to common shareholders for the first six months of 2025 was $4.69 compared to $4.27 in the year-earlier period. Returns on average assets and average common equity for the first six months of 2025 were 1.20 percent and 15.59 percent, respectively, compared to 1.14 percent and 16.13 percent, respectively, for the same period in 2024.

Noted financial data for the second quarter of 2025 follows:

•The Common Equity Tier 1, Tier 1 and Total Risk-Based Capital Ratios at the end of the second quarter of 2025 were 13.98 percent, 14.43 percent and 15.88 percent, respectively, and continue to be in excess of well-capitalized levels and exceed Basel III minimum requirements.

•Net interest income on a taxable-equivalent basis was $450.6 million for the second quarter of 2025, an increase of 7.9 percent, compared to $417.6 million for the second quarter of 2024. Net interest margin was 3.67 percent for the second quarter of 2025 compared to 3.54 percent for the second quarter of 2024 and 3.60 percent for the first quarter of 2025.

•Non-interest income for the second quarter of 2025 totaled $117.3 million, an increase of $6.1 million, or 5.5 percent, from the $111.2 million reported for the second quarter of 2024. Trust and investment management fees increased $2.3 million, or 5.5 percent, compared to the second quarter of 2024. The increase in trust and investment management fees during the second quarter was primarily related to an increase in investment management fees (up $2.2 million). Investment management fees are generally based on the market value of assets within customer accounts and are thus impacted by price movements in the equity and bond markets. Service charges on deposit accounts increased $3.0 million, or 11.6 percent, compared to the second quarter of 2024. The increase in the second quarter was primarily related to increases in consumer and commercial overdraft charges (up $2.5 million), driven by continued increases in the number of active customer accounts, and commercial service charges (up $859,000), partly offset by a decrease in consumer service charges (down $370,000). Other charges, commissions, and fees increased $947,000, or 7.3 percent, compared to the second quarter of 2024. The increase was primarily related to increases in income from the placement of annuities (up $555,000) and commitment fees on unused lines of credit (up $380,000).

•Non-interest expense was $347.1 million for the second quarter of 2025, up $30.2 million, or 9.5 percent, compared to the $317.0 million reported for the second quarter a year earlier. Salaries and wages expense increased $10.9 million, or 7.2 percent, compared to the second quarter of 2024. The increase in salaries and wages was primarily related to increases in salaries due to annual merit and market increases and to an increase in the number of employees. The increase in the number of employees was partly related to our investment in organic expansion in various markets. Employee benefits expense increased by $4.0 million, or 14.0 percent, compared to the second quarter of 2024. The increase in employee benefits expense was primarily related to increases in 401(k) plan expense (up $1.6 million), medical/dental benefits expense (up $1.4 million), and payroll taxes (up $635,000). Other non-interest expense increased $10.1 million, or 16.8 percent, compared to the second quarter of 2024. The increase included increases in advertising/promotions expense (up $4.2 million); sundry and other miscellaneous expense (up $2.1 million), and fraud losses (up $1.1 million), among other things. Technology, furniture, and equipment expense increased $4.6 million, or 12.9 percent, compared to the second quarter of 2024. The increase was primarily related to increased cloud services expense (up $2.6 million), software maintenance (up $1.3 million), and depreciation on furniture and equipment (up $732,000), among other things.

•For the second quarter of 2025, the company reported a credit loss expense of $13.1 million, and reported net loan charge-offs of $11.2 million. This compares to a credit loss expense of $13.1 million and net charge-offs of $9.7 million for the first quarter of 2025 and a credit loss expense of $15.8 million and net charge-offs of $9.7 million for the second quarter of 2024. The allowance for credit losses on loans as a percentage of total loans was 1.31 percent at June 30, 2025, compared to 1.32 percent at March 31, 2025

and 1.28 percent at June 30, 2024. Non-accrual loans were $62.4 million at the end of the second quarter of 2025, compared to $83.5 million at the end of the first quarter of 2025 and $75.0 million at the end of the second quarter of 2024.

The Cullen/Frost board declared a third-quarter cash dividend of $1.00 per common share. The dividend on common stock is payable September 15, 2025 to shareholders of record on August 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 September 15, 2025 to shareholders of record on August 29 of this year.

Cullen/Frost Bankers, Inc. will host a conference call on Thursday, July 31, 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, August 3, 2025 at 1-877-660-6853 with Conference ID # of 13754258. 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 $51.4 billion in assets at June 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.

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:

•The effects of and changes in trade and monetary and fiscal policies and laws, including the interest rate policies of the Federal Reserve Board and the implementation of tariffs and other protectionist trade policies.

•Inflation, interest rate, securities market, and monetary fluctuations.

•Local, regional, national, and international economic conditions and the impact they may have on us and our customers and our assessment of that impact.

•Changes in the financial performance and/or condition of our borrowers.

•Changes in the mix of loan geographies, sectors and types or the level of non-performing assets and charge-offs.

•Changes in estimates of future credit loss reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements.

•Changes in our liquidity position.

•Impairment of our goodwill or other intangible assets.

•The timely development and acceptance of new products and services and perceived overall value of these products and services by users.

•Changes in consumer spending, borrowing, and saving habits.

•Greater than expected costs or difficulties related to the integration of new products and lines of business.

•Technological changes.

•The cost and effects of cyber incidents or other failures, interruptions, or security breaches of our systems or those of our customers or third-party providers.

•Acquisitions and integration of acquired businesses.

•Changes in the reliability of our vendors, internal control systems or information systems.

•Our ability to increase market share and control expenses.

•Our ability to attract and retain qualified employees.

•Changes in our organization, compensation, and benefit plans.

•The soundness of other financial institutions.

•Volatility and disruption in national and international financial and commodity markets.

•Changes in the competitive environment in our markets and among banking organizations and other financial service providers.

•Government intervention in the U.S. financial system.

•Political or economic instability.

•Acts of God or of war or terrorism.

•The potential impact of climate change.

•The impact of pandemics, epidemics, or any other health-related crisis.

•The costs and effects of legal and regulatory developments, the resolution of legal proceedings or regulatory or other governmental inquiries, the results of regulatory examinations or reviews and the ability to obtain required regulatory approvals.

•The effect of changes in laws and regulations (including laws and regulations concerning taxes, banking, securities, and insurance) and their application with which we and our subsidiaries must comply.

•The effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board and other accounting standard setters.

•Our success at managing the risks involved in the foregoing items.

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
			2nd Qtr						1st Qtr						4th Qtr						3rd Qtr						2nd Qtr
CONDENSED INCOME STATEMENTS
Net interest income			$	429,604					$	416,220					$	413,518					$	404,331					$	396,712
Net interest income (1)			450,558						436,404						433,726						425,160						417,621
Credit loss expense			13,129						13,070						16,162						19,386						15,787
Non-interest income:
Trust and investment management fees			43,669						42,931						43,765						41,016						41,404
Service charges on deposit accounts			29,151						28,621						27,909						27,412						26,114
Insurance commissions and fees			13,879						21,019						14,215						14,839						13,919
Interchange and card transaction fees			5,619						5,402						5,764						5,428						5,351
Other charges, commissions, and fees			13,967						13,586						15,208						13,060						13,020
Net gain (loss) on securities transactions			—						(14)						(112)						16						—
Other			10,988						12,466						16,075						11,936						11,382
Total non-interest income			117,273						124,011						122,824						113,707						111,190
Non-interest expense:
Salaries and wages			162,149						160,857						165,520						156,637						151,237
Employee benefits			32,826						42,157						28,614						29,060						28,802
Net occupancy			34,640						33,277						32,102						32,497						32,374
Technology, furniture, and equipment			40,572						40,118						39,775						37,766						35,951
Deposit insurance			6,590						7,184						6,924						7,238						8,383
Other			70,351						64,473						63,232						60,212						60,217
Total non-interest expense			347,128						348,066						336,167						323,410						316,964
Income before income taxes			186,620						179,095						184,013						175,242						175,151
Income taxes			29,617						28,173						29,161						28,741						29,652
Net income			157,003						150,922						154,852						146,501						145,499
Preferred stock dividends			1,669						1,669						1,669						1,668						1,669
Net income available to common shareholders			$	155,334					$	149,253					$	153,183					$	144,833					$	143,830
PER COMMON SHARE DATA
Earnings per common share - basic			$	2.39					$	2.30					$	2.37					$	2.24					$	2.21
Earnings per common share - diluted			2.39						2.30						2.36						2.24						2.21
Cash dividends per common share			1.00						0.95						0.95						0.95						0.92
Book value per common share at end of quarter			63.04						61.74						58.46						62.41						55.02
OUTSTANDING COMMON SHARES
Period-end common shares			64,319						64,283						64,197						63,931						63,989
Weighted-average common shares - basic			64,300						64,255						64,116						63,958						64,193
Dilutive effect of stock compensation			52						74						121						127						140
Weighted-average common shares - diluted			64,352						64,329						64,237						64,085						64,333
SELECTED ANNUALIZED RATIOS
Return on average assets			1.22		%				1.19		%				1.19		%				1.16		%				1.18		%
Return on average common equity			15.64						15.54						15.58						15.48						17.08
Net interest income to average earning assets			3.67						3.60						3.53						3.56						3.54
(1) Taxable-equivalent basis assuming a 21% tax rate.