Cullen/frost Bankers, Inc. · NYSE:CFR
Cullen/frost Bankers — Investor Presentation (September 2025)
32 slides from Cullen/frost Bankers's investor presentation, Sep 15, 2025
Slide 1: Cullen/Frost Bankers, Inc. June 30, 2025
Phillip D. Green, Chairman and Chief Executive Officer | Daniel Geddes, Chief Financial Officer Cullen/Frost Bankers, Inc. June 30, 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
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 200 financial centers and the large
Slide 4: Company Highlights and Award Winning Value Proposition
4 Award Winning Value Proposition J.D. Power Company Highlights Listing NYSE:CFR Market Capitalization ($ billions) 8.3 Total Assets 51.4 Trust Assets 50.9 Total Loans 21.3 Total Deposits 41.7 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 Source: S&P Global Note: Market data as of June 30, 2025 30.3% 99.6% 119.4% 292.1% 24.1% 54.9% 78.5% 228.8% CFR S&P 500 Regional Bank Index 1yr 5yr 10yr 15yr 0% 50% 100% 150% 200% 250% 300% 350% Historical Performance
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 $3.95 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
Slide 7: Our Mission
7 We will grow and prosper, building long-term relationships based on top-quality service, high ethical standards and safe, sound assets. INTEGRITY Steadfast adherence to an ethical code. CARING Feeling and exhibiting concern for others. EXCELLENCE Commitment to being outstanding. Our Mission
Slide 8: Compelling Texas Market Demographics
8 Compelling Texas market demographics: • Population of 31 million ranks 2nd in the U.S. • 2025-2030E projected population growth of 5.6% vs. 2.4% national (more than 2x the U.S. rate) • 54 Fortune 500 companies headquartered in Texas • Between 2023 and 2024, there were 41 headquarter relocations to
Slide 9: Technology Highlights
9 • In Q2-2025, 47% of consumer deposit account openings came from our online channel • Highest-rated consumer banking mobile app of all U.S. banks • Delivered new features to enable a more personalized, secure, and goal- oriented digital banking experience • 24/7 customer phone and chat support wit
Slide 10: Consumer and Commercial Loan Growth
10 Loans Commercial: 82% Consumer: 18% Deposits Commercial: 53% Consumer: 47% ($ 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 $3.8 Commercial Consumer 2019 2020 2021 2022 2023 2024 Q2-2025 $— $2.5 $5.0 $7.5 $10.0 $12.5 $15.
Slide 11: Diversified Loan Portfolio
11 Period End Growth in Energy, Non-energy Loans Loan Composition (Q2-2025) Q2-2025 Period End Loans to Deposits: 51% Source: SEC filings Since peak (Q1-2015)(Y/Y) Q2-2025 CAGR Energy Loans 19.9% (3.1)% Non-Energy Loans 5.5% 7.6% Total Loans 6.3% 6.4% 6.2% Energy Loans Non-Energy Loans 2015 2016 201
Slide 12: Consumer Loan Growth
12 • Frost introduced a consumer first lien mortgage/home loan product in 2023 • Frost consumer first lien mortgage loan balances totaled $354.8 million at June 30, 2025 • Total consumer real estate loans were $3.3 billion or 15.7% of total loans outstanding at June 30, 2025 • Total consumer loans a
Slide 13: Commercial Real Estate Portfolio
13 • 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 14: Loan Pricing
14 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% 2.49%2.25% 2.40% 2.40% 2.41% 2.45% Ameribor SOFR 2021 2022 2023 2024 1H-2025 0.63% 0.46% 0.55% 0.48% 0.55% 2021 2022 2023 2024 1H-2025 Loan Pricing
Slide 15: Non-Accrual Loans and Reserve Position
15 $ (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 16: Net Charge-Offs Through the Cycle
16 • 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 17: Deposit Growth and Cost of Deposits
17 • Highly focused on winning customers’ core transactional accounts • Non-interest-bearing averaged 38% of total deposits over the 20 years through 2024 • Goal to drive consistent, balanced growth in deposits and loans • Top quality customer service results in low customer attrition $ (B ill io ns
Slide 18: Deposit Portfolio
18 Deposit Composition (June 30, 2025 ) Deposit Growth Trends Non-Interest Bearing: 33.0% Savings & Interest on Checking: 23.8% Money Market Accounts: 27.6% Time Accounts: 15.6% 5-Year CAGR (1) YTD Avg. Y/Y Growth YTD Avg. Balance Non-Interest-Bearing 0.0 % (0.3) % 13,778 Savings & Interest Checking
Slide 19: Funding & Liquidity Profile
19 • Primarily deposit funded institution with limited wholesale, short- term, or long-term borrowings • 50.4% average loan to deposit ratio as of Q2-2025 • Solid liquidity position with cash and securities in the range of 50%–60% of earning assets since 2012 Q2-2025 Average Liabilities and Equity A
Slide 20: Capital Ratios
20 13.98% 14.43% 15.88% 8.98% 12.45% 12.96% 15.00% 10.01% Common Equity Tier 1 Tier 1 Capital Total Capital Tier 1 Leverage Cullen/Frost Capital Ratios as of June 30, 2025. Frost Bank maintains the capacity to pay $827 million of dividends to Cullen/Frost 1 CFR Q2-2025 Regulatory Q2-2025 Regional Ba
Slide 21: Investment Portfolio
21 •High quality $20.1 billion securities portfolio comprised of municipals (36%), treasuries (14%), MBS and other securities1 (50%) •Average fully taxable-equivalent yield of 3.48% in Q2-2025 (4.48% for tax-exempt securities) •Portfolio duration of 5.5 years as of June 30, 2025 Municipal Bond Portf
Slide 22: Revenue and Non-Interest Income Composition
22 • During the first half of 2025, non-interest income comprised 22.2% of total revenue (non-taxable equivalent/GAAP basis) • Primary drivers of fee income include: • Trust and investment management fees (35.9% of non-interest income) • Total trust assets of $50.9 billion ($25.8 billion managed) at
Slide 23: Consistent Profitability Over the Cycle
23 • 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 1.36% 1.47% 1.63% 1.67% 1.63% 1.51%
Slide 24: Our Expansion Strategy
24 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 25: Organic Expansion vs. M&A: Pros and Cons
25 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 26: Organic Expansion: Financial Impact
26 2018 2024 Expansion Loans $0 $1,768 Expansion Deposits $0 $2,444 Total Loans $14,085 $20,619 Total Deposits $26,798 $42,371 Expansion % of Total Loans 8.6% Expansion % Loan Growth 27.1% Expansion % of Total Deposits 5.8% Expansion % Deposit Growth 15.7% Note: $ in millions • Expansion loans and d
Slide 27: Organic Expansion: Tailwind Through the Cycle
27 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 of 2023 and 2024 • Growth in expansion offset 26% of the decline in legacy branch deposits in 2023, and made up 72% of the incre
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. M&A: Cost Comparison
29 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 30: Organic Expansion vs. Peers: Yearly Growth of de Novo Locations
30 1 Includes all other banks that opened locations in Texas from 2018-2024 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 31: Organic Expansion: Long-Term Opportunity
31 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 32: Frost's Organic Expansion Strategy: Summary
32 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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