Cullen/frost Bankers, Inc. · NYSE:CFR
Cullen/frost Bankers — Q2 2026 Earnings Presentation
31 slides from Cullen/frost Bankers's earnings presentation, Jun 30, 2026
Slide 1: Cullen/Frost Bankers, Inc.
Cullen/Frost Bankers, Inc. Phillip D. Green, Chairman and Chief Executive Officer | Daniel Geddes, Chief Financial Officer June 30, 2026
Slide 2: Cautionary Statement
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 no
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 210 financial ce
Slide 4: Cullen/Frost Bankers: Award Winning Value Proposition
Cullen/Frost Bankers Award Winning Value Proposition Company Highlights • Highest ranked retail bank in Texas in the J.D. Power 2026 U.S. Retail Banking Listing NYSE:CFR J.D. Satisfaction Survey Market Capitalization ($ billions) 9.7 Power • #1 Ranking since inception and for 17 Total Assets 53.9 co
Slide 5: Historical Performance: 15-Year Stock Price Performance
Historical Performance 15-Year Stock Price Performance 400% Total Return 325.2% 293.9% 300% 223.8% 200% 157.2% 100% 60.0% 23.9% 27.0% 10.4% 0% 1yr 5yr 10yr 15yr Source: S&P Global CFR S&P 500 Regional Bank Index 5 Note: Market data as of June 30, 2026
Slide 6: Historical Performance: Dividends - Consecutive Years of Increases
Historical Performance Dividends - 33 Consecutive Years of Increases 1 $4.09 $3.95 $3.74 $3.58 $3.24 $2.94 $2.80 $2.85 $2.58 $2.25 $2.10 $2.15 $1.98 $2.03 $1.83 $1.90 $1.71 $1.78 $1.66 $1.54 $1.32 $1.17 $1.04 $0.94 $0.84 $0.88 $0.76 $0.68 $0.58 $0.40 $0.48 $0.29 $0.17 $0.04 1993 1994 1995 1996 1997
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 2025 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 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
Slide 10: Technology Highlights: Digital Transformation Timeline
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 $4.2 $4.5 $20.0 $3.5 $17.5 $2.9 $2.3 Consumer: 20% $15.0 $1.9 ($ Billions) $1.7 $1.8 $12.5 $10.0 $17.2 $17.7 $18.4 $7.5 $14.8 $15.9 $13.0 $13.2 $14.0 $5.0 $2.5 $— 2019 2020 2021 2022 2023 2024 2025 Q2-2026 Commercial: 80% Commer
Slide 12: Diversified Loan Portfolio
Period End Growth in Energy, Diversified Loan Portfolio Non-energy Loans (Y/Y) Since peak (Q1-2015) Q2-2026 CAGR Energy Loans (13.8)% (4.1)% Non-Energy Loans 9.5% 7.8 Loan Composition (Q2-2026) Total Loans 8.1% 6.6 Consumer and Energy: 5% 4.9% 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Q
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 $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
Slide 14: Commercial Real Estate Portfolio
Commercial Real Estate Portfolio CRE by Property Type1 • Commercial real estate portfolio diversified across Texas regions and underlying collateral type Office/Warehouse: 20.3% • Broad array of industries supporting economic activity and Other: 14.6% stability • Balanced concentrations across key T
Slide 15: Loan Pricing
Loan Pricing Average Spread to Prime (New and Renewed Loans) 0.65% 0.55% 0.46% 0.48% 0.44% 2022 2023 2024 2025 1H-2026 Average Spread to Ameribor and SOFR (New and Renewed Loans) 2.46% 2.40% 2.39% 2.40% 2.31% 2.41% 2.38% 2.33% 2.44% 2.35% 2022 2023 2024 2025 1H-2026 Ameribor SOFR 15
Slide 16: Credit Quality
NALs to Loans Through the Cycle Credit Quality 1.25 1 % of Total Loans 0.75 • Frost has a long-standing culture of conservative underwriting 0.5 and prudent risk management 0.25 • Our commitment to relationship banking has served us well— 0 notably, Frost is the only top ten Texas bank to survive th
Slide 17: Credit Quality
Credit Quality Cullen/Frost 5-yr Average NCOs by Loan Type 1,2 0.63% • Strong record of prudent risk management reflected in ratio of net 0.21% charge-offs to average loans since 2007 0.17% 0.03% • Net charge-offs in 2020 represented the last of problem energy (0.09)% credits from previous energy do
Slide 18: Deposit Portfolio
Deposit Portfolio Blended Cost of Deposits 2.18% 2.02% 1.72% 1.74% 1.54% 0.79% 1.23% 1.26% 0.54% 1.08% 0.22%0.22% 0.24% 0.31% 0.33% 0.32% 0.11% 0.29% 0.38% 0.32% 0.05% 0.04% 0.03% 0.07% 0.10% 0.04% 50 3.2% 45 14 15 16 17 18 19 20 21 22 023 024 025 026 40 20 20 20 20 20 20 20 20 20 2 2 2 2-2 15.3% 28
Slide 19: Deposit Portfolio
Deposit Portfolio Deposit Composition (Q2 Average) Deposit Growth Trends YTD Avg. Time Accounts: 15.3% 5-Year Y/Y YTD Avg. CAGR (1) Growth Balance Non-Interest Bearing: 32.9% Non-Interest-Bearing (2.5)% 1.4 % 13,986 Savings & Interest Checking 0.6 % 0.4 % 9,987 MMA 4.9 % 4.8 % 12,023 Money Market Ti
Slide 20: Funding & Liquidity Profile
Funding & Liquidity Profile Q2-2026 Average Liabilities and Equity • Primarily deposit funded institution with limited wholesale, short- term, or long-term borrowings 8.8% • 53% average loan to deposit ratio as of Q2-2026 10.2% • Solid liquidity position with cash and securities in the range of 50%–
Slide 21: Capital Ratios
Capital Ratios 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 15.74% 14.38% 14.81% 13.95% 12.41% 12.87% 10.02% 10.5% 9.06% 8.5% 7.0% 4.0% Common Equity Tier 1 Tier 1 Capital Total Capital Tier 1 Leverage CFR Q2-
Slide 22: Investment Portfolio
Investment Portfolio Investment Portfolio Q2-2026 •High quality $21.5 billion securities portfolio comprised of municipals (35%), treasuries (14%), MBS and other securities1 (51%) Municipals: 35% •Average fully taxable-equivalent yield of 3.96% in Q2-2026 MBS and Other (4.87%% for tax-exempt securit
Slide 23: Multiple Sources of Revenue
1H-26 Revenue Composition Multiple Sources of Revenue Non Interest Income: 23.0% • 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-int
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% 1.47% 1.51% 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 $3.1 billion and $3.7 billion, respectively, as of June 30, 2026. This is a result of a 62% increase in branches since 2018. • Expansion locations accounted for over a third of our loan growth from 2018 to Q2-2026, and approx
Slide 28: 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 28 Includes locations opened as part of our announced Houston, Dallas and Austin expansions
Slide 29: 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 2018 $70 $60 $50 $40 $30 $20 $10 $— Year 1 Year 2 Year 3 Year 4 Year 5 CFR Other Banks 1 Source: FDIC data 29 1 Includes all other banks that opened locations i
Slide 30: 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 31: 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