Cullen/frost Bankers, Inc. · NYSE:CFR
Cullen/frost Bankers — Investor Presentation (March 2026)
33 slides from Cullen/frost Bankers's investor presentation, Mar 3, 2026
Slide 1: Cullen/Frost Bankers, Inc. December 31, 2025
Phillip D. Green, Chairman and Chief Executive Officer | Dan Geddes, Chief Financial Officer Cullen/Frost Bankers, Inc. December 31, 2025
Slide 2: Cautionary Statement
2 Cautionary Statement Certain statements contained in this presentation 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
Slide 3: Cullen/Frost Bankers
Cullen/Frost Bankers • Headquartered in San Antonio, Texas • Founded in 1868 by T.C. Frost • Provides a wide range of banking, investments, and insurance products and services to businesses and individuals • Branch footprint located exclusively in Texas throughout eight markets with 200+ financial c
Slide 4: Award Winning Value Proposition
4 Award Winning Value Proposition J.D. Power Company Highlights Listing NYSE:CFR Market Capitalization ($ billions) 8.1 Total Assets 53.0 Trust Assets 51.0 Total Loans 21.9 Total Deposits 42.9 Moody's L-T Rating / Outlook A3/Stable S&P L-T Rating / Outlook A-/Stable • Highest ranked retail bank in T
Slide 5: 15-Year Stock Price Performance
5 15-Year Stock Price Performance Total Return (2.8)% 68.0% 183.0% 224.4% 18.6% 26.8% 110.7% 242.6% CFR S&P 500 Regional Bank Index 1yr 5yr 10yr 15yr -50% 0% 50% 100% 150% 200% 250% 300% Historical Performance Source: S&P Global CapIQ Pro Note: Market data as of December 31, 2025
Slide 6: Dividends - Consecutive Years of Increases
6 Dividends - 32 Consecutive Years of Increases $0.04 $0.17 $0.29 $0.40 $0.48 $0.58 $0.68 $0.76 $0.84 $0.88$0.94 $1.04 $1.17 $1.32 $1.54 $1.66 $1.71 $1.78 $1.83 $1.90 $1.98 $2.03 $2.10 $2.15 $2.25 $2.58 $2.80$2.85 $2.94 $3.24 $3.58 $3.74 $3.95 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2
Slide 7: Our Mission
7 We will grow and prosper, building long-term relationships based on top-quality service, high ethical standards and safe, sound assets. INTEGRITY Steadfast adherence to an ethical code. CARING Feeling and exhibiting concern for others. EXCELLENCE Commitment to being outstanding. Our Mission
Slide 8: Our Banking Markets
8 Compelling Texas market demographics: • Population of 31 million ranks 2nd in the U.S. • 2026-2031E projected population growth of 6.5% vs. 3.5% national • 54 Fortune 500 companies headquartered in Texas • Between 2022 and 2024, there were 79 headquarter relocations to the state of Texas D EP O SI
Slide 9: Technology Highlights
9 Technology Highlights • In Q4-2025, 53% of consumer deposit account openings came from our online channel • Highest-rated consumer banking mobile app of all U.S. banks • Delivered new features to enable a more personalized, secure, and goal- oriented digital banking experience • 24/7 customer phon
Slide 10: Technology Highlights: Modernization of Core Banking
10 Technology Highlights Modernization of Core Banking 2028 +: 100% of Tier 1 Capabilities current and on regular schedule of updates (53% in the cloud) 2027: 91% of Tier 1 Capabilities modernized (43% in the cloud) Today: 66% of Tier 1 Capabilities modernized (40% in the cloud, 8 new capabilities)
Slide 11: Diversification
11 Loans Commercial: 81% Consumer: 19% Deposits Commercial: 54% Consumer: 46% ($ B ill io ns ) Consumer and Commercial Loan Growth $12.8 $13.1 $12.8 $14.6 $15.1 $16.8 $17.5 $1.7 $1.8 $1.9 $2.3 $2.9 $3.5 $4.2 Commercial Consumer 2019 2020 2021 2022 2023 2024 2025 $— $2.5 $5.0 $7.5 $10.0 $12.5 $15.0 $
Slide 12: Loan Composition and Growth in Energy, Non-energy Loans
12 Period End Growth in Energy, Non-energy Loans Loan Composition (Q4-2025) Q4-2025 Period End Loans to Deposits: 51% Since peak (1Q15) (Y/Y) 2025 CAGR Energy Loans (3.0)% (4.6)% Non-Energy Loans 6.0% 7.7% Total Loans 5.5% 6.4% 5.0% Energy Loans Non-Energy Loans 2015 2016 2017 2018 2019 2020 2021 20
Slide 13: Consumer Loan Growth
13 • Frost introduced a consumer first lien mortgage/home loan product in 2023 • Frost consumer first lien mortgage loan balances totaled $595 million at December 31, 2025 • Total consumer real estate loans were $3.7 billion or 17% of total loans outstanding at December 31, 2025 • Total consumer loa
Slide 14: Commercial Real Estate Portfolio
14 1. Commercial real estate portfolio diversified across Texas regions and underlying collateral type a. Broad array of industries supporting economic activity and stability b. Balanced concentrations across key Texas regions c. Well distributed mix of CRE by property types 2. Owner-occupied proper
Slide 15: Loan Pricing
15 Average Spread to Ameribor and SOFR (New and Renewed Loans) Average Spread to Prime (New and Renewed Loans) 2.73% 2.46% 2.39% 2.31% 2.38%2.25% 2.40% 2.40% 2.41% 2.33% Ameribor SOFR 2021 2022 2023 2024 2025 0.63% 0.46% 0.55% 0.48% 0.44% 2021 2022 2023 2024 2025 Loan Pricing
Slide 16: Credit Quality
16 $ (0 00 s) Energy C&I CRE Consumer Non-Accruals ACL 0 50,000 100,000 150,000 200,000 • Frost has a long-standing culture of conservative underwriting and prudent risk management • Our commitment to relationship banking has served us well—notably, Frost is the only top ten Texas bank to survive th
Slide 17: Net Charge-Offs Through the Cycle
17 • Strong record of prudent risk management reflected in ratio of net charge-offs to average loans since 2007 • Net charge-offs in 2020 represented the last of problem energy credits from previous energy down-cycle; we have seen net recoveries of previously charged-off energy loans in each year fr
Slide 18: Deposit Portfolio
18 • Highly focused on winning customers’ core transactional accounts • Non-interest-bearing has averaged 38% of total deposits over the 20 years through 2025 • Goal to drive consistent, balanced growth in deposits and loans • Top quality customer service results in low customer attrition $ (B ill i
Slide 19: Deposit Portfolio: Composition and Growth
19 Deposit Composition (2025 Avg.) Deposit Growth Trends Non-Interest Bearing: 33.0% Savings & Interest on Checking: 23.4% Money Market Accounts: 28.1% Time Accounts: 15.6% 5-Year CAGR (1) 2025 Y/Y Avg. Growth 2025 Avg. Balance Non-Interest-Bearing 0.5 % 0.6 % 13,924 Savings & Interest Checking 4.9
Slide 20: Funding and Liquidity Profile
20 Funding and Liquidity Profile • Primarily deposit funded institution with limited wholesale, short- term, or long-term borrowings • 50.3% loan to deposit ratio • Solid liquidity position with cash and securities in the range of 50%–60% of earning assets since 2012 FY-2025 Average Liabilities and
Slide 21: Capital Ratios
21 14.06% 14.50% 15.95% 8.80% 12.50% 12.98% 14.97% 10.04% Common Equity Tier 1 Tier 1 Capital Total Capital Tier 1 Leverage Cullen/Frost Capital Ratios as of December 31, 2025. Frost Bank maintains the capacity to pay $1.0 billion of dividends to Cullen/Frost 1 CFR Q4-25 Current Regulatory Q4-25 Reg
Slide 22: Investment Portfolio
22 • High quality $19.4 billion securities portfolio comprised of municipals (40%), Treasuries (13%), MBS and other securities1 (48%) • Average fully taxable-equivalent yield of 3.77% in 2025 (4.52% for tax-exempt securities) • Portfolio duration of 5.3 years as of December 31, 2025 Municipal Bond P
Slide 23: Non-interest Income and Revenue Composition
23 • In 2025 non-interest income comprised 22.4% of total revenue • Primary drivers of fee income include: – Trust and investment management fees (35.5% of non-interest income) – Insurance commission and fees (13.1% of non-interest income) – Deposit service charges from commercial, retail, and corre
Slide 24: Consistent Profitability Over the Cycle
24 Return on Average Assets Return on Average Common Equity 1.63% 1.67% 1.63% 1.51% 1.14% 1.21% 1.17% 1.14% 1.02% 1.05% 0.97% 1.03% 1.17% 1.44% 1.36% 0.85% 0.95% 1.11% 1.19% 1.16% 1.24% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 18.8% 18.
Slide 25: Our Expansion Strategy
25 Our strategy is focused on combining organic branch expansion, top-quality digital banking tools and an empathetic customer experience to deliver market-leading organic growth in customer relationships, deposits, loans and, ultimately, profitability. We aim to be #1 among all banks at planning, e
Slide 26: Organic Expansion vs. M&A: Pros and Cons
26 Organic Strategy Pro Con We control selection of new locations and staff X Long-lasting organic growth in relationships, deposits, and loans after branch opening X Projects our brand into selected new markets X Earnings dilution during initial investment X Takes time to mature and turn profitable
Slide 27: Organic Expansion: Financial Impact
27 2018 2025 Expansion Loans $0 $2,367 Expansion Deposits $0 $3,041 Total Loans $14,100 $21,892 Total Deposits $27,149 $42,918 Expansion % of Total Loans 10.8% Expansion % Loan Growth 33.1% Expansion % of Total Deposits 7.1% Expansion % Deposit Growth 19.7% Note: $ in millions • Expansion loans and
Slide 28: Organic Expansion: Tailwind Through the Cycle
28 Notes: $ in millions. Period-end values. 1 Deposit flows are all organic. No brokered deposits were purchased. • Expansion accounted for over 25% of loan growth in each year from 2023 to 2025 • Growth in expansion offset 26% of the decline in legacy branch deposits in 2023, and contributed more t
Slide 29: Organic Expansion: Earnings Growth Trajectory
29 Expansion EPS Contribution 2019 2020 2021 2022 2023 2024 2025 2026 2027 Notes: future values are approximations based on current internal estimates Includes locations opened as part of our announced Houston, Dallas and Austin expansions Organic Expansion: Earnings Growth Trajectory
Slide 30: Organic Expansion vs. M&A: Cost Comparison
30 Organic Strategy (Houston 1.0) Cullen/Frost WNB Acquisition (2014) Texas Bank M&A Average Loans $599 $656 $3,322 Deposits $1,179 $1,242 $4,377 Cost/Deal Value $119 $220 $802 Cost per $1B of Deposits $101 $180 $175 Notes: $ in millions, except EPS Texas Deals Average figures use median Organic EPS
Slide 31: Organic Expansion vs. Peers: Yearly Growth of de Novo Locations
31 1 Includes all other banks that opened locations in Texas from 2019-2025 Average de Novo Branch Deposits by Vintage: Locations opened in Texas since 2019 CFR Other Banks Year 1 Year 2 Year 3 Year 4 Year 5 $— $10 $20 $30 $40 $50 $60 $70 Organic Expansion vs. Peers: Yearly Growth of de Novo Locatio
Slide 32: Organic Expansion: Long-Term Opportunity
32 Source: Internal data Note: Of the markets displayed, Austin is the only market that is both part of the Expansion, and also an established market in terms of deposit share/branch share due to an FDIC-assisted acquisition in this market in the 1990s. Organic Expansion: Long-Term Opportunity San A
Slide 33: Frost's Organic Expansion Strategy: Summary
33 Our Organic Expansion: • Has higher absolute returns than an M&A strategy • Has significantly higher risk-adjusted returns than M&A, in our view (based on our assessment of risks) • Allows us to control our locations and project our brand into new markets in a curated way • Gives us control over
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