Cullen/frost Bankers, Inc. · NYSE:CFR
Cullen/frost Bankers — Investor Presentation (August 2026)
31 slides from Cullen/frost Bankers's investor presentation, Aug 17, 2026
Slide 1: Cullen/Frost Bankers, Inc. June 30, 2026
Phillip D. Green, Chairman and Chief Executive Officer | Daniel Geddes, Chief Financial Officer Cullen/Frost Bankers, Inc. June 30, 2026
Slide 2: Cautionary Statement
2 Cautionary Statement Certain statements contained in this Quarterly Report on Form 10-Q 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
Slide 3: Cullen/Frost Bankers
3 • 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 210 financial centers and the large
Slide 4: Award Winning Value Proposition and Company Highlights
4 Award Winning Value Proposition J.D. Power • Highest ranked retail bank in Texas in the J.D. Power 2026 U.S. Retail Banking Satisfaction Survey • #1 Ranking since inception and for 17 consecutive years • In 2025, Frost received 15 awards for excellence in small business banking and 12 awards for e
Slide 5: 15-Year Stock Price Performance Total Return
5 15-Year Stock Price Performance Total Return Source: S&P Global Note: Market data as of June 30, 2026 23.9% 60.0% 223.8% 325.2% 27.0% 10.4% 157.2% 293.9% CFR S&P 500 Regional Bank Index 1yr 5yr 10yr 15yr 0% 100% 200% 300% 400% Historical Performance
Slide 6: Dividends - 33 Consecutive Years of Increases
6 $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 $4.09 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Slide 7: Our Mission
7 We will grow and prosper, building long-term relationships based on top-quality service, high ethical standards and safe, sound assets. INTEGRITY Steadfast adherence to an ethical code. CARING Feeling and exhibiting concern for others. EXCELLENCE Commitment to being outstanding. Our Mission
Slide 8: Our Banking Markets
8 Compelling Texas market demographics: • Population of 31 million ranks 2nd in the U.S. • 2026-2031E projected population growth of 6.5% vs. 3.5% national • 57 Fortune 500 companies headquartered in Texas D EP O SI T M A R K ET -M SA D EM O G R A P H IC S • If Texas were a nation, its 2025 GDP woul
Slide 9: Technology Highlights
9 • In Q2-2026, 53% of consumer deposit account openings came from our online channel • 4.9 average review in Apple's app store - no U.S. bank has a higher rating • Delivered new features to enable a more personalized, secure, and goal- oriented digital banking experience • 24/7 customer phone and c
Slide 10: Technology Highlights: Core Banking Modernization
10 Technology Highlights Modernization of Core Banking 2028 +: 100% of Tier 1 Capabilities current and on regular schedule of updates (53% in the cloud) 2027: 91% of Tier 1 Capabilities modernized (43% in the cloud) Today: 66% of Tier 1 Capabilities modernized (40% in the cloud, 8 new capabilities)
Slide 11: Diversification
11 Loans Commercial: 80% Consumer: 20% Deposits Commercial: 55% Consumer: 45% ($ B ill io ns ) Consumer and Commercial Loan Growth $13.0 $13.2 $14.0 $14.8 $15.9 $17.2 $17.7 $18.4 $1.7 $1.8 $1.9 $2.3 $2.9 $3.5 $4.2 $4.5 Commercial Consumer 2019 2020 2021 2022 2023 2024 2025 Q2-2026 $— $2.5 $5.0 $7.5
Slide 12: Diversified Loan Portfolio
12 Period End Growth in Energy, Non-energy Loans Loan Composition (Q2-2026) Q2-2026 Period End Loans to Deposits: 53.0% Source: SEC filings Since peak (Q1-2015)(Y/Y) Q2-2026 CAGR Energy Loans (13.8)% (4.1)% Non-Energy Loans 9.5% 7.8 Total Loans 8.1% 6.6 4.9% Energy Loans Non-Energy Loans 2015 2016 2
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 $887 million at June 30, 2026 • Total consumer real estate loans were $4.1 billion or 17.7% of total loans outstanding at June 30, 2026 • Total consumer loans are
Slide 14: Commercial Real Estate Portfolio
14 • Commercial real estate portfolio diversified across Texas regions and underlying collateral type • Broad array of industries supporting economic activity and stability • Balanced concentrations across key Texas regions • Well distributed mix of CRE by property types • Owner-occupied properties
Slide 15: Loan Pricing
15 Average Spread to Ameribor and SOFR (New and Renewed Loans) Average Spread to Prime (New and Renewed Loans) 2.46% 2.39% 2.31% 2.38% 2.44%2.40% 2.40% 2.41% 2.33% 2.35% Ameribor SOFR 2022 2023 2024 2025 1H-2026 0.46% 0.55% 0.48% 0.44% 0.65% 2022 2023 2024 2025 1H-2026 Loan Pricing
Slide 16: Non-Accrual Loans and Reserve Position
16 $ (0 0 0 s) Energy C&I CRE Consumer & Other Non-Accruals ACL 0 50 100 150 200 250 300 • 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
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 • Expect some normalization in overall credit quality trends, from a period of hist
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 Trends
19 Deposit Composition (Q2 Average) Deposit Growth Trends Non-Interest Bearing: 32.9% Savings & Interest on Checking: 23.3% Money Market Accounts: 28.5% Time Accounts: 15.3% 5-Year CAGR (1) YTD Avg. Y/Y Growth YTD Avg. Balance Non-Interest-Bearing (2.5) % 1.4 % 13,986 Savings & Interest Checking 0.6
Slide 20: Funding & Liquidity Profile
20 • Primarily deposit funded institution with limited wholesale, short- term, or long-term borrowings • 53% average loan to deposit ratio as of Q2-2026 • Solid liquidity position with cash and securities in the range of 50%–60% of earning assets since 2012 Q2-2026 Average Liabilities and Equity Ave
Slide 21: Capital Ratios
21 13.95% 14.38% 15.74% 9.06% 12.41% 12.87% 14.81% 10.02% Common Equity Tier 1 Tier 1 Capital Total Capital Tier 1 Leverage Cullen/Frost Capital Ratios as of June 30, 2026. Frost Bank maintains the capacity to pay $772.5 million of dividends to Cullen/Frost 1 CFR Q2-2026 Regulatory Q2-2026 Regional
Slide 22: Investment Portfolio
22 •High quality $21.5 billion securities portfolio comprised of municipals (35%), treasuries (14%), MBS and other securities1 (51%) •Average fully taxable-equivalent yield of 3.96% in Q2-2026 (4.87%% for tax-exempt securities) •Portfolio duration of 4.9 years as of June 30, 2026 Municipal Bond Port
Slide 23: Non-Interest Income Composition
23 • During the first half of 2026, non-interest income comprised 23.0% of total revenue (non-taxable equivalent/GAAP basis) • Primary drivers of fee income include: • Trust and investment management fees (36.1% of non-interest income) • Total trust assets of $52.9 billion ($27.8 billion managed) at
Slide 24: Consistent Profitability Over the Cycle
24 • Consistent profitability through Great Recession with no quarterly or annual net loss • History of strong returns on average common equity • The first bank in the nation to turn down TARP bailout funds Return on Average Assets Return on Average Common Equity 1.47% 1.63% 1.67% 1.63% 1.51% 1.14%
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 Q2-2026 Expansion Loans $0 $3,115 Expansion Deposits $0 $3,746 Total Loans $14,100 $22,976 Total Deposits $27,149 $43,334 Expansion % of Total Loans 13.6% Expansion % Loan Growth 35.1% Expansion % of Total Deposits 8.6% Expansion % Deposit Growth 23.1% Note: $ in millions, total loan and dep
Slide 28: Organic Expansion: Earnings Growth Trajectory
28 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 29: Organic Expansion vs. Peers: Yearly Growth of de Novo Locations
29 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 2018 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 30: Organic Expansion: Long-Term Opportunity
30 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 31: Frost's Organic Expansion Strategy: Summary
31 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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