$CFR

CULLEN/FROST BANKERS, INC.

CIK:0000039263|SEC Filings

Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Consolidated Statements of Income - USD ($) $ in Thousands	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Interest income:
Loans, including fees	$ 346,216	$ 344,689	$ 682,501	$ 679,297
Securities:
Taxable	127,845	130,127	243,044	246,383
Tax-exempt	67,026	58,041	131,924	112,648
Interest-bearing deposits	53,640	68,740	115,096	148,235
Federal funds sold	36	97	80	137
Resell agreements	0	264	85	375
Total interest income	594,763	601,958	1,172,730	1,187,075
Interest expense:
Deposits	114,558	134,293	222,801	267,461
Federal funds purchased	225	281	444	482
Repurchase agreements	29,361	34,677	57,445	67,096
Junior subordinated deferrable interest debentures	1,727	1,939	3,462	3,884
Subordinated notes	1,164	1,164	2,328	2,328
Total interest expense	147,035	172,354	286,480	341,251
Net interest income	447,728	429,604	886,250	845,824
Credit loss expense	9,767	13,129	16,512	26,199
Net interest income after credit loss expense	437,961	416,475	869,738	819,625
Non-interest income:
Trust and investment management fees	47,643	43,669	95,600	86,600
Service charges on deposit accounts	34,177	29,151	66,334	57,772
Insurance commissions and fees	14,166	13,879	36,241	34,898
Interchange and card transaction fees	6,546	5,619	13,078	11,021
Other charges, commissions, and fees	13,787	13,967	27,055	27,553
Net gain (loss) on securities transactions	0	0	0	(14)
Other	11,962	10,988	26,288	23,454
Total non-interest income	128,281	117,273	264,596	241,284
Non-interest expense:
Salaries and wages	172,955	162,149	339,145	323,006
Employee benefits	35,156	32,826	79,812	74,983
Net occupancy	35,223	34,640	69,976	67,917
Technology, furniture, and equipment	42,564	40,572	84,238	80,690
Deposit insurance	6,305	6,590	13,508	13,774
Other	69,497	70,351	140,707	134,824
Total non-interest expense	361,700	347,128	727,386	695,194
Income before income taxes	204,542	186,620	406,948	365,715
Income taxes	32,483	29,617	63,902	57,790
Net income	172,059	157,003	343,046	307,925
Preferred stock dividends	1,669	1,669	3,338	3,338
Net income available to common shareholders	$ 170,390	$ 155,334	$ 339,708	$ 304,587
Earnings per common share:
Basic	$ 2.70	$ 2.39	$ 5.35	$ 4.69
Diluted	$ 2.70	$ 2.39	$ 5.35	$ 4.69

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Operating Activities:
Net income	$ 343,046	$ 307,925
Adjustments to reconcile net income to net cash from operating activities:
Credit loss expense	16,512	26,199
Deferred tax expense (benefit)	(5,070)	(4,017)
Accretion of loan discounts	(18,028)	(13,718)
Securities premium amortization (discount accretion), net	3,188	20,128
Net (gain) loss on securities transactions	0	14
Depreciation and amortization	44,652	43,734
Net (gain) loss on sale/write-down of assets/foreclosed assets	(201)	(2,374)
Stock-based compensation	10,584	8,913
Net tax benefit from stock-based compensation	296	1,376
Earnings on life insurance policies	(1,946)	(1,882)
Net change in:
Trading account securities	(1,549)	(4,309)
Lease right-of-use assets	13,368	12,887
Accrued interest receivable and other assets	(19,338)	1,530
Accrued interest payable and other liabilities	(95,248)	(551,745)
Net cash from operating activities	290,266	(155,339)
Investing Activities:
Securities held-to-maturity - Purchases	0	(1,500)
Securities held to maturity: Maturities, calls and principal repayments	44,136	46,888
Securities available for sale:
Purchases	(11,382,467)	(8,285,846)
Sales	0	38,556
Maturities, calls and principal repayments	9,339,733	6,882,720
Proceeds from sale of loans	0	7,305
Net change in loans	(1,090,725)	(514,111)
Benefits received on life insurance policies	1,573	1,820
Proceeds from sales of premises and equipment	469	38
Purchases of premises and equipment	(98,686)	(67,218)
Proceeds from sales of foreclosed assets	535	15,135
Net cash from investing activities	(3,185,432)	(1,876,213)
Financing Activities:
Net change in deposits	416,151	(1,039,134)
Net change in short-term borrowings	367,468	79,163
Proceeds from stock option exercises	0	5,956
Purchase of treasury stock	(163,193)	(2,676)
Cash dividends paid on preferred stock	(3,338)	(3,338)
Cash dividends paid on common stock	(128,783)	(126,590)
Net cash from financing activities	488,305	(1,086,619)
Net change in cash and cash equivalents	(2,406,861)	(3,118,171)
Cash and cash equivalents at beginning of period	8,874,055	10,234,258
Cash and cash equivalents at end of period	$ 6,467,194	$ 7,116,087

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Assets:
Cash and due from banks	$ 697,703	$ 681,325
Interest-bearing deposits	5,769,366	8,183,080
Federal funds sold	125	0
Resell agreements	0	9,650
Total cash and cash equivalents	6,467,194	8,874,055
Securities held to maturity, net of allowance for credit losses of $500 at both June 30, 2026 and December 31, 2025	3,385,507	3,431,179
Securities available for sale, at estimated fair value	18,089,973	15,970,596
Trading account securities	39,153	37,604
Loans, net of unearned discounts	22,975,658	21,891,812
Less: Allowance for credit losses on loans	(283,712)	(281,495)
Net loans	22,691,946	21,610,317
Premises and equipment, net	1,370,184	1,313,225
Accrued interest receivable and other assets	1,837,134	1,804,448
Total assets	53,881,091	53,041,424
Liabilities:
Non-interest-bearing demand deposits	14,583,936	14,143,815
Interest-bearing deposits	28,750,079	28,774,049
Total deposits	43,334,015	42,917,864
Federal funds purchased	25,500	18,775
Repurchase agreements	4,886,598	4,525,855
Junior subordinated deferrable interest debentures, net of unamortized issuance costs	123,271	123,242
Subordinated notes, net of unamortized issuance costs	99,883	99,804
Accrued interest payable and other liabilities	789,181	782,848
Total liabilities	49,258,448	48,468,388
Shareholders’ Equity:
Preferred stock, par value $0.01 per share; 10,000,000 shares authorized; 150,000 Series B shares ($1,000 liquidation preference) issued at both June 30, 2026 and December 31, 2025	145,452	145,452
Common stock, par value $0.01 per share; 210,000,000 shares authorized; 64,404,582 shares issued at both June 30, 2026 and December 31, 2025	644	644
Additional paid-in capital	1,110,911	1,100,327
Retained earnings	4,515,631	4,309,171
Accumulated other comprehensive income (loss), net of tax	(851,660)	(842,951)
Treasury stock, at cost; 2,255,936 shares at June 30, 2026 and 1,117,394 at December 31, 2025	(298,335)	(139,607)
Total shareholders’ equity	4,622,643	4,573,036
Total liabilities and shareholders’ equity	$ 53,881,091	$ 53,041,424