Cullen/frost Bankers, Inc. · NYSE:CFR
Cullen/frost Bankers — Q2 2026 Earnings Presentation
33 slides from Cullen/frost Bankers's earnings presentation, Jul 30, 2026
Slide 1: Cullen/Frost Bankers, Inc.
Cullen/Frost Bankers, Inc. Phillip D. Green, Chairman and Chief Executive Officer | Dan Geddes, Chief Financial Officer December 31, 2025
Slide 2: Cautionary Statement
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 id
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
Cullen/Frost Bankers Award Winning Value Proposition Company Highlights • Highest ranked retail bank in Texas in the J.D. Power 2025 U.S. Retail Listing NYSE:CFR J.D. Banking Satisfaction Survey Market Capitalization ($ billions) 8.1 Power • #1 Ranking since inception and for 16 Total Assets 53.0 co
Slide 5: Historical Performance
Historical Performance 15-Year Stock Price Performance Total Return 300% 242.6% 250% 224.4% 200% 183.0% 150% 110.7% 100% 68.0% 50% 18.6% 26.8% 0% (2.8)% -50% 1yr 5yr 10yr 15yr Source: S&P Global CapIQ Pro CFR S&P 500 Regional Bank Index 5 Note: Market data as of December 31, 2025
Slide 6: Historical Performance
Historical Performance Dividends - 32 Consecutive Years of Increases $3.95 $3.74 $3.58 $3.24 $2.94 $2.80 $2.85 $2.58 $2.25 $2.03 $2.10 $2.15 $1.90 $1.98 $1.78 $1.83 $1.66 $1.71 $1.54 $1.32 $1.17 $1.04 $0.88 $0.94 $0.76 $0.84 $0.68 $0.58 $0.40 $0.48 $0.29 $0.17 $0.04 1993 1994 1995 1996 1997 1998 199
Slide 7: Our Mission
Our Mission We will grow and prosper, building long-term relationships based on top-quality service, high ethical standards and safe, sound assets. INTEGRITY CARING EXCELLENCE Steadfast adherence to Feeling and exhibiting Commitment to being an ethical code. concern for others. outstanding. 7
Slide 8: Our Banking Markets
Our Banking Markets Compelling Texas market demographics: • Population of 31 million ranks 2nd in the U.S. • If Texas were a nation, its 2024 GDP would rank the 8th largest globally • 2026-2031E projected population growth of 6.5% vs. 3.5% national • Texas includes three of the top ten most populous
Slide 9: Technology Highlights
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 phone
Slide 10: Technology Highlights
Technology Highlights Overall Digital Transformation Timeline 2026 & Beyond Completed Modernization of Core Banking • Debit card conversion • Data center & network modernization 2028 +: 100% of Tier 1 Capabilities current and on regular schedule of • Consumer wires updates (53% in the cloud) • RTP/F
Slide 11: Diversification
Diversification $25.0 Consumer and Commercial Loan Growth 1 Loans $22.5 $20.0 $4.2 $3.5 $17.5 $2.9 Consumer: 19% $15.0 $2.3 ($ Billions) $1.7 $1.8 $1.9 $12.5 $10.0 $16.8 $17.5 $7.5 $14.6 $15.1 $12.8 $13.1 $12.8 $5.0 $2.5 $— 2019 2020 2021 2022 2023 2024 2025 Commercial: 81% Commercial Consumer 1 Dep
Slide 12: Diversified Loan Portfolio
Period End Growth in Energy, Non-energy Loans Since peak (Y/Y) (1Q15) Diversified Loan Portfolio 2025 CAGR Energy Loans (3.0)% (4.6)% Non-Energy Loans 6.0% 7.7% Total Loans 5.5% 6.4% Loan Composition (Q4-2025) 16.2% 5.0% Energy: 5.0% 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Consumer an
Slide 13: Consumer Loan Growth
Consumer Loan Growth • 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 •
Slide 14: Commercial Real Estate Portfolio
Commercial Real Estate Portfolio CRE by Property Type 1 1. Commercial real estate portfolio diversified across Texas regions and underlying collateral type a. Broad array of industries supporting economic activity and stability All Other: 11.3% Office/Warehouse: 21.0% b. Balanced concentrations acro
Slide 15: Loan Pricing
Loan Pricing Average Spread to Prime (New and Renewed Loans) 0.63% 0.55% 0.46% 0.48% 0.44% 2021 2022 2023 2024 2025 Average Spread to Ameribor and SOFR (New and Renewed Loans) 2.73% 2.25% 2.46% 2.40% 2.39% 2.40% 2.31% 2.41% 2.38% 2.33% 2021 2022 2023 2024 2025 Ameribor SOFR 15
Slide 16: Credit Quality
NALs to Loans Through the Cycle Credit Quality 1.25 1 % of Total Loans • Frost has a long-standing culture of 0.75 conservative underwriting and prudent risk 0.5 management 0.25 • Our commitment to relationship banking has 0 2 3 4 5 6 7 8 9 0 02 1 2 023 024 025 served us well—notably, Frost is the o
Slide 17: Credit Quality
Credit Quality Cullen/Frost 5-yr Average NCOs by Loan Type1,2 0.7% • Strong record of prudent risk management reflected in ratio of net charge-offs to average loans since 2007 0.12% 0.01% 0.14% (0.02)% • Net charge-offs in 2020 represented the last of problem energy credits from previous energy down
Slide 18: Deposit Portfolio
Deposit Portfolio Blended Cost of Deposits 2.18% 2.02% 1.72% 0.79% 0.22% 0.22% 0.24% 0.31% 0.54% 0.33% 0.11% 0.32% 1.23% 1.54% 1.26% 50 0.05% 0.04% 0.03% 0.07% 0.29% 0.38% 0.10% 0.04% 0.32% 45 40 2.9% 15.6% 14 15 16 17 18 19 020 21 22 023 024 025 20 20 20 20 20 20 2 20 20 2 2 2 35 1 26.0% Cullen/Fro
Slide 19: Deposit Portfolio
Deposit Portfolio Deposit Growth Trends 2025 5-Year Y/Y Avg. 2025 Avg. Deposit Composition (2025 Avg.) CAGR (1) Growth Balance Non-Interest-Bearing 0.5 % 0.6 % 13,924 Savings & Interest 4.9 % 1.8 % 9,869 Checking Time Accounts: 15.6% MMA 7.2 % 5.6 % 11,850 Non-Interest Time Accounts 42.4 % 5.8 % 6,5
Slide 20: Funding and Liquidity Profile
Funding and Liquidity Profile FY-2025 Average Liabilities and Total Equity • Primarily deposit funded institution with limited wholesale, short- term, or long-term borrowings 8.2% • 50.3% loan to deposit ratio 10.5% • Solid liquidity position with cash and securities in the range of 50%–60% of earni
Slide 21: Capital Ratios
Capital Ratios 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 15.95% 14.50% 14.97% 14.06% 12.50% 12.98% 10.04% 8.80% 7.0% 8.5% 10.5% 4.0% Common Equity Tier 1 Tier 1 Capital Total Capital Tier 1 Leverage CFR Q
Slide 22: Investment Portfolio
Investment Portfolio Q4-2025 Investment Portfolio Municipals: 40% • High quality $19.4 billion securities portfolio comprised of municipals (40%), MBS and Other Treasuries (13%), MBS and other securities1 (48%) Securities: 48% • Average fully taxable-equivalent yield of 3.77% in 2025 (4.52% for tax-
Slide 23: Multiple Sources of Revenue
Revenue Composition Multiple Sources of Revenue Non-interest Income: 22.4% • 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-inter
Slide 24: Consistent Profitability Over the Cycle
Consistent Profitability Over the Cycle • 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 1.63% 1.67% 1.63% 1.51% 1.44% 1
Slide 25: Our Expansion Strategy
Our Expansion Strategy 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
Slide 26: Organic Expansion vs. M&A: Pros and Cons
Organic Expansion vs. M&A: Pros and Cons 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 Ta
Slide 27: Organic Expansion: Financial Impact
Organic Expansion: Financial Impact • Expansion loans and deposits totaled $2.4 billion and $3.0 billion, respectively, as of December 31, 2025. This is a result of a 51% increase in branches since 2018. • Expansion locations accounted for approximately a third of our loan growth from 2018 to 2025,
Slide 28: Organic Expansion: Tailwind Through the Cycle
Organic Expansion: Tailwind Through the Cycle • 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 than $0.5 billion of deposit growth in each of 2024 and in 2025 1 Loa
Slide 29: Organic Expansion: Earnings Growth Trajectory
Organic Expansion: Earnings Growth Trajectory 2019 2020 2021 2022 2023 2024 2025 2026 2027 Expansion EPS Contribution Notes: future values are approximations based on current internal estimates 29 Includes locations opened as part of our announced Houston, Dallas and Austin expansions
Slide 30: Organic Expansion vs. M&A: Cost Comparison
Organic Expansion vs. M&A: Cost Comparison Organic Strategy Cullen/Frost WNB (Houston 1.0) 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 Deal
Slide 31: Organic Expansion vs. Peers: Yearly Growth of de Novo Locations
Organic Expansion vs. Peers: Yearly Growth of de Novo Locations Average de Novo Branch Deposits by Vintage: Locations opened in Texas since 2019 $70 $60 $50 $40 $30 $20 $10 $— Year 1 Year 2 Year 3 Year 4 Year 5 1 CFR Other Banks Source: FDIC data 31 1 Includes all other banks that opened locations i
Slide 32: Organic Expansion: Long-Term Opportunity
Organic Expansion: Long-Term Opportunity 2019 2025 Branch Share: 1.4% Branch Share: 3.9% Deposit Share: 0.9% • In more mature markets like San Antonio Deposit Share: 1.1% Branch Share: 5.4% Branch Share: 6.2% and Austin, deposit market share is Deposit Share: 11.2% Deposit Share: 10.7% significantly
Slide 33: Frost's Organic Expansion Strategy: Summary
Frost's Organic Expansion Strategy: Summary Our Organic Expansion: • Has higher absolute returns than an M&A strategy Number of Locations by Phase • Has significantly higher risk-adjusted returns than M&A, 120 in our view (based on our assessment of risks) 100 • Allows us to control our locations an