Core Viewpoint - Cullen/Frost (CFR) has experienced mixed results recently, with earnings performing slightly better than expected, yet the market response has been negative [1]. Financial Performance - The earnings of Cullen/Frost are tracking better than anticipated, indicating a potential for sustainable high-quality earnings [1]. Investment Strategy - The investment approach favored is a long-term, buy-and-hold strategy, particularly focusing on stocks that can consistently deliver high-quality earnings, often found in the dividend and income sectors [1].

streaming on CNBC plus. >> Welcome back to The Exchange. Headline CPI data coming in cooler than expected this morning, but still up nearly 3% compared to this time last year.Still higher costs in focus. But consumer activity at regional Bank Frost was strong in Q2. The Texas Regional Bank, seeing a 3.7% jump in consumer deposit growth and strength in real estate loan products.For more, let's bring in Phil Green, CEO of Cullen Frost Bankers. Phil, it's great to speak with you today. >> Great to be here with ...

The Company expects similar results can be obtained with a wide variety of other thermoplastics, including polyetheretherketone (PEEK). This particulate embedding approach represents an additional way to impart silicon nitride's beneficial biologic properties to conventional inert biomaterials. "The significance of this study is twofold—it affirms that silicon nitride can be effectively integrated with novel thermoplastic-based biomaterials, and it supports our broader vision of combination materials tailor ...

Core Viewpoint - Cullen/Frost Bankers, Inc. (CFR) reported a strong second-quarter 2025 performance with earnings per share of $2.39, reflecting an 8.1% year-over-year increase, surpassing estimates by 4.8% [1][8] Financial Performance - The company's net income available to common shareholders was $155.3 million, up 7.9% from the prior year [2] - Total revenues reached $567.8 million, a 7.4% increase year-over-year, exceeding estimates by 1.9% [3] - Net interest income (NII) increased by 6.9% to $450.6 million, with the net interest margin (NIM) expanding by 13 basis points to 3.67% [3] - Non-interest income improved by 5.5% to $117.2 million, driven by growth in all components except for other non-interest income [4] Expenses and Concerns - Non-interest expenses rose by 9.5% to $347.1 million, which was higher than estimates [4][8] - The allowance for credit losses on loans increased, raising investor concerns despite the earnings beat [2][8] Loan and Deposit Trends - Total loans as of June 30, 2025, were $21.2 billion, up 1.7% sequentially, while total deposits decreased by 1.7% to $41.7 billion [5] Credit Quality - Credit loss expenses were recorded at $13.1 million, down from $15.8 million in the prior year [6] - The allowance for credit losses on loans was 1.31%, an increase of 3 basis points year-over-year [6] Capital Ratios and Profitability - The Tier 1 risk-based capital ratio improved to 14.43% from 13.82% year-over-year [7] - Return on average assets and return on average common equity were 1.20% and 15.59%, respectively, showing slight improvements from the prior year [9] Dividend Announcement - The company declared a third-quarter cash dividend of $1.00 per common share, marking a 5.3% increase from the previous payout [10] Strategic Outlook - The company is positioned for revenue growth due to steady improvements in NII and non-interest income, supported by a solid capital position [11]

Part I - Financial Information [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Unaudited statements show a slight asset decrease to $51.4 billion, while Q2 net income rose to $155.3 million Consolidated Balance Sheet Highlights (in thousands) | Metric | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Total Assets | $51,409,360 | $52,520,259 | -2.1% | | Total Cash and Cash Equivalents | $7,116,087 | $10,234,258 | -30.5% | | Net Loans | $20,976,692 | $20,484,662 | +2.4% | | Total Deposits | $41,683,614 | $42,722,748 | -2.4% | | Total Liabilities | $47,209,050 | $48,621,671 | -2.9% | | Total Shareholders' Equity | $4,200,310 | $3,898,588 | +7.7% | Consolidated Income Statement Highlights (in thousands, except per share amounts) | Metric | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | $429,604 | $396,712 | $845,824 | $786,763 | | Credit Loss Expense | $13,129 | $15,787 | $26,199 | $29,437 | | Non-interest Income | $117,273 | $111,190 | $241,284 | $222,567 | | Non-interest Expense | $347,128 | $316,964 | $695,194 | $643,181 | | Net Income | $157,003 | $145,499 | $307,925 | $281,189 | | Net Income Available to Common Shareholders | $155,334 | $143,830 | $304,587 | $277,851 | | Diluted EPS | $2.39 | $2.21 | $4.69 | $4.27 | - Q2 2025 comprehensive income rose to **$145.7 million** from **$112.4 million** YoY, while six-month comprehensive income improved to **$419.5 million** from **$91.1 million** due to a positive swing in other comprehensive income[10](index=10&type=chunk) - Total shareholders' equity increased from **$3.90 billion** to **$4.20 billion**, driven by net income of **$307.9 million** and other comprehensive income of **$111.5 million**, offset by **$129.9 million** in dividends[13](index=13&type=chunk) - Cash dividends per common share increased to **$1.00** in Q2 2025 from **$0.92** in Q2 2024, and six-month dividends rose to **$1.95** from **$1.84**[12](index=12&type=chunk)[13](index=13&type=chunk) Six Months Ended June 30, Cash Flow Summary (in thousands) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $(155,339) | $618,013 | | Net Cash from Investing Activities | $(1,876,213) | $(65,589) | | Net Cash from Financing Activities | $(1,086,619) | $(2,094,916) | | **Net Change in Cash and Cash Equivalents** | **$(3,118,171)** | **$(1,542,492)** | - The significant decrease in cash was driven by net cash used in investing activities, including **$8.3 billion** in securities purchases, and financing activities, including a **$1.0 billion** net decrease in deposits[14](index=14&type=chunk) - Notes detail accounting policies, financial instruments, credit quality, capital adequacy, and segment performance, including key portfolio and risk disclosures[15](index=15&type=chunk)[16](index=16&type=chunk)[17](index=17&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=41&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Higher net interest income drove a 9.6% YoY increase in six-month net income, with the net interest margin expanding to 3.63% Key Performance Metrics | Metric | 6M 2025 | 6M 2024 | | :--- | :--- | :--- | | Net Income Available to Common Shareholders | $304.6M | $277.9M | | Diluted EPS | $4.69 | $4.27 | | Return on Average Assets | 1.20% | 1.14% | | Return on Average Common Equity | 15.59% | 16.13% | - The six-month net income increase was driven by higher net interest income (**$59.1M**), non-interest income (**$18.7M**), and lower credit loss expense (**$3.2M**), partially offset by higher non-interest expense (**$52.0M**)[141](index=141&type=chunk) - Q2 2025 taxable-equivalent net interest income increased **7.9% YoY** to **$450.6 million**, with the net interest margin expanding to **3.67%**[152](index=152&type=chunk)[155](index=155&type=chunk) - NII growth was driven by lower deposit costs and higher asset volumes, partially offset by lower yields on loans and Federal Reserve deposits[157](index=157&type=chunk)[158](index=158&type=chunk) - As of June 30, 2025, **40.6%** of the loan portfolio had a fixed interest rate, with the remainder tied to SOFR and the prime rate[144](index=144&type=chunk) - Six-month credit loss expense decreased to **$26.2 million** in 2025 from **$29.4 million** in 2024, primarily related to loans[170](index=170&type=chunk) - The allowance for credit losses on loans increased to **$277.8 million**, remaining stable at **1.31%** of total loans[227](index=227&type=chunk) - Management used a deteriorating economic forecast and applied significant qualitative overlays (**$152.9 million**) for risks like office building exposure[227](index=227&type=chunk)[233](index=233&type=chunk)[240](index=240&type=chunk) - Six-month non-interest income increased **8.4%** to **$241.3 million**, with key drivers including[171](index=171&type=chunk]: - **Trust and investment management fees:** Increased **7.6%** to **$86.6 million** as trust assets reached **$50.9 billion**[172](index=172&type=chunk) - **Service charges on deposit accounts:** Increased **13.5%** to **$57.8 million**[174](index=174&type=chunk) - **Insurance commissions and fees:** Increased **8.3%** to **$34.9 million**[178](index=178&type=chunk) - Six-month non-interest expense increased **8.1%** to **$695.2 million**, with key drivers including[187](index=187&type=chunk]: - **Salaries and wages:** Increased **7.9%** to **$323.0 million** due to merit increases and higher headcount[188](index=188&type=chunk) - **Employee benefits:** Increased **15.8%** to **$75.0 million**[189](index=189&type=chunk) - **Technology, furniture, and equipment:** Increased **13.7%** to **$80.7 million** from higher cloud and software costs[193](index=193&type=chunk) - Total loans grew **2.4%** to **$21.3 billion** since year-end 2024, with growth in energy, commercial real estate, and consumer real estate loans[211](index=211&type=chunk) - Non-accrual loans decreased to **$62.4 million** (**0.29%** of total loans) from **$78.9 million** (**0.38%** of total loans) at year-end 2024[220](index=220&type=chunk)[221](index=221&type=chunk) - The company maintains a strong capital and liquidity position, with all regulatory capital ratios significantly exceeding 'well-capitalized' minimums[252](index=252&type=chunk)[257](index=257&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=66&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate risk, with a +100 bps rate shock projected to increase net interest income by 1.2% Interest Rate Sensitivity on Net Interest Income (Next 12 Months) | Rate Change | NII Variance (as of June 30, 2025) | NII Variance (as of Dec 31, 2024) | | :--- | :--- | :--- | | +200 bps | +2.4% | +2.8% | | +100 bps | +1.2% | +1.5% | | -100 bps | -1.0% | -1.1% | | -200 bps | -2.2% | -2.2% | - Model simulations indicate the balance sheet was slightly less asset-sensitive at June 30, 2025, compared to year-end 2024[263](index=263&type=chunk) [Item 4. Controls and Procedures](index=66&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal controls during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the period end[266](index=266&type=chunk) Part II - Other Information [Item 1. Legal Proceedings](index=67&type=section&id=Item%201.%20Legal%20Proceedings) Ongoing legal actions are not expected to have a material adverse impact on the company's financial statements - Management does not expect ongoing legal proceedings to materially impact the company's financial statements[267](index=267&type=chunk) [Item 1A. Risk Factors](index=67&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors have been identified since the 2024 Annual Report on Form 10-K - No material changes in risk factors were identified since the 2024 Form 10-K filing[268](index=268&type=chunk) [Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities](index=67&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%2C%20Use%20of%20Proceeds%2C%20and%20Issuer%20Purchases%20of%20Equity%20Securities) A $150 million stock repurchase program is in place, with no shares repurchased under the plan during the quarter - The board authorized a **$150.0 million** stock repurchase program in January 2025, which remains fully available[270](index=270&type=chunk) - During Q2 2025, **606 shares** were repurchased solely in connection with the vesting of stock compensation awards[270](index=270&type=chunk)[271](index=271&type=chunk) [Item 5. Other Information](index=67&type=section&id=Item%205.%20Other%20Information) The company maintains an Insider Trading Policy, and no directors or officers have established Rule 10b5-1 trading arrangements - The company has an established Insider Trading Policy for its directors, officers, and employees[274](index=274&type=chunk) - No Rule 10b5-1 or non-Rule 10b5-1 trading arrangements were reported for the period[274](index=274&type=chunk)

Financial Data and Key Metrics Changes - In Q2 2025, the company reported earnings of $155.3 million or $2.39 per share, compared to $143.8 million or $2.21 per share in the same quarter last year, representing a year-over-year increase of 8.5% in earnings per share [3] - Return on average assets was 1.22% and return on average common equity was 15.64%, compared to 1.18% and 17.08% respectively in the same quarter last year [4] - Average deposits increased by 3.1% to $41.8 billion from $40.5 billion year-over-year, while average loans grew by 7.2% to $21.1 billion from $19.7 billion [4][5] Business Line Data and Key Metrics Changes - The consumer real estate loan portfolio grew by $600 million year-over-year, achieving a growth rate of 22% [7] - Average loan balances in the commercial business increased by $817 million or 4.9% year-over-year, with commercial real estate (CRE) balances growing by 6.8% and energy balances increasing by 22% [8] - The expansion efforts contributed to 37% of total loan growth and 44% of total deposit growth year-over-year [14] Market Data and Key Metrics Changes - The company opened its 200th location, indicating a significant expansion in the Austin region [4] - Checking household growth increased at an industry-leading rate of 5.4%, with consumer deposits showing a year-over-year growth of 3.7% [6] - Non-performing assets decreased to $64 million at the end of Q2 from $85 million at year-end, indicating improved credit quality [11] Company Strategy and Development Direction - The company continues to focus on organic growth and expansion in Texas, particularly in high-growth markets like Houston, Dallas, and Austin [65][68] - Management emphasized the importance of protecting the dividend and building capital, with no immediate plans for stock repurchase despite a strong capital position [31][33] - The company is not pursuing inorganic growth through acquisitions, preferring to focus on organic strategies that have proven to be more cost-effective [76][78] Management's Comments on Operating Environment and Future Outlook - Management expects net interest income growth for the full year to be in the range of 6% to 7%, despite anticipated Fed rate cuts [21] - The company anticipates that the expansion efforts will begin to yield significant earnings accretion in 2026, with a gradual improvement in expense growth rates [41][42] - Management expressed optimism about the economic outlook, suggesting that as clarity improves regarding trade policies, business activity is expected to increase [56] Other Important Information - The net interest margin improved by 7 basis points to 3.67% due to a shift towards higher-yielding loans and securities [15] - The company recorded a net unrealized loss on the available-for-sale portfolio of $1.42 billion, slightly up from $1.4 billion in the previous quarter [16] - The effective tax rate expectation for the full year remains unchanged at 16% to 17% [22] Q&A Session Summary Question: What are the trends in loan pricing and competition? - Management noted increased competition in commercial real estate, leading to price compression, but emphasized the importance of maintaining a strong balance sheet and protecting the portfolio [28][30] Question: How is the company approaching capital growth and utilization? - The focus remains on building capital and protecting dividends, with no immediate plans for stock repurchase [31][33] Question: When can shareholders expect to see benefits from recent investments? - Management expects significant accretion from expansion efforts starting in 2026, with gradual improvements in expense growth rates [41][42] Question: What is the outlook for deposit growth? - Management is optimistic about deposit growth stabilizing and increasing in the second half of the year, driven by seasonal trends [48][49] Question: How does the company view M&A opportunities? - The company is not interested in inorganic growth, preferring to focus on organic strategies that have proven to be more effective and cost-efficient [76][78]

Cullen/Frost Bankers (CFR) reported $567.83 million in revenue for the quarter ended June 2025, representing a year-over-year increase of 7.4%. EPS of $2.39 for the same period compares to $2.21 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $557.33 million, representing a surprise of +1.88%. The company delivered an EPS surprise of +4.82%, with the consensus EPS estimate being $2.28. While investors scrutinize revenue and earnings changes year-over-year and how they compare wi ...

Cullen/Frost Bankers (CFR) came out with quarterly earnings of $2.39 per share, beating the Zacks Consensus Estimate of $2.28 per share. This compares to earnings of $2.21 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +4.82%. A quarter ago, it was expected that this financial holding company would post earnings of $2.17 per share when it actually produced earnings of $2.3, delivering a surprise of +5.99%. Over the last four ...

[Cullen/Frost Second Quarter 2025 Earnings Release](index=1&type=section&id=CULLEN%2FFROST%20REPORTS%20SECOND%20QUARTER%20RESULTS) [Second Quarter 2025 Performance Highlights](index=1&type=section&id=Second%20Quarter%202025%20Performance%20Highlights) Cullen/Frost reported strong Q2 2025 results with increased net income, diluted EPS, and significant growth in average loans and deposits Key Performance Metrics | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net Income (Common) | $155.3 million | $143.8 million | +8.0% | | Diluted EPS | $2.39 | $2.21 | +8.1% | | Return on Average Assets | 1.22% | 1.18% | +4 bps | | Return on Average Common Equity | 15.64% | 17.08% | -144 bps | Average Balances and Net Interest Income | Metric | Q2 2025 | Q2 2024 | YoY Change | Q1 2025 | QoQ Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Avg. Loans | $21.1 billion | $19.7 billion | +7.2% | $20.8 billion | +1.3% | | Avg. Deposits | $41.8 billion | $40.5 billion | +3.1% | $41.7 billion | +0.2% | | Net Interest Income (Taxable-Equiv.) | $450.6 million | $417.6 million | +7.9% | - | - | - Management attributes the strong performance to the durability of the company's **organic growth model**, highlighting **solid loan growth** and a **slight increase in average total deposits** despite seasonal weakness[4](index=4&type=chunk) [Year-to-Date 2025 Performance Highlights](index=2&type=section&id=Year-to-Date%202025%20Performance%20Highlights) Year-to-date 2025 results show a 9.6% increase in net income and a 9.8% rise in diluted EPS compared to 2024 Year-to-Date Key Performance Metrics | Metric | First Six Months 2025 | First Six Months 2024 | Change | | :--- | :--- | :--- | :--- | | Net Income (Common) | $304.6 million | $277.9 million | +9.6% | | Diluted EPS | $4.69 | $4.27 | +9.8% | | Return on Average Assets | 1.20% | 1.14% | +6 bps | | Return on Average Common Equity | 15.59% | 16.13% | -54 bps | [Detailed Financial Analysis (Q2 2025)](index=2&type=section&id=Detailed%20Financial%20Analysis%20%28Q2%202025%29) Q2 2025 analysis reveals strong capital, expanded net interest margin, growth in non-interest income, and stable credit quality despite rising expenses [Capital Ratios and Net Interest Margin](index=2&type=section&id=Capital%20Ratios%20and%20Net%20Interest%20Margin) - Capital ratios at the end of Q2 2025 remain **well-capitalized** and **exceed Basel III minimums**, with a Common Equity Tier 1 ratio of **13.98%**[6](index=6&type=chunk) - Net interest margin was **3.67%** for Q2 2025, an increase from **3.54%** in Q2 2024 and **3.60%** in Q1 2025[6](index=6&type=chunk) [Non-Interest Income](index=2&type=section&id=Non-Interest%20Income) - Total non-interest income increased by **5.5% YoY** to **$117.3 million** in Q2 2025[6](index=6&type=chunk) - Key drivers of non-interest income growth YoY include: - Trust and investment management fees: **+$2.3 million (5.5%)**, mainly from higher investment management fees[6](index=6&type=chunk) - Service charges on deposit accounts: **+$3.0 million (11.6%)**, driven by increased overdraft charges from more active accounts[6](index=6&type=chunk) - Other charges, commissions, and fees: **+$0.9 million (7.3%)**, primarily from annuity placement income[6](index=6&type=chunk)[7](index=7&type=chunk) [Non-Interest Expense](index=3&type=section&id=Non-Interest%20Expense) - Total non-interest expense rose by **9.5% YoY** to **$347.1 million** in Q2 2025[7](index=7&type=chunk) - Key drivers of non-interest expense growth YoY include: - Salaries and wages: **+$10.9 million (7.2%)**, due to merit/market increases and higher employee count for expansion[7](index=7&type=chunk) - Employee benefits: **+$4.0 million (14.0%)**, from increased 401(k) and medical expenses[7](index=7&type=chunk) - Technology, furniture, and equipment: **+$4.6 million (12.9%)**, mainly from higher cloud services and software maintenance costs[7](index=7&type=chunk) - Other non-interest expense: **+$10.1 million (16.8%)**, driven by advertising, sundry expenses, and fraud losses[7](index=7&type=chunk) [Credit Quality](index=3&type=section&id=Credit%20Quality) Credit Quality Metrics | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Credit Loss Expense | $13.1 million | $13.1 million | $15.8 million | | Net Loan Charge-offs | $11.2 million | $9.7 million | $9.7 million | | Allowance for Credit Losses (% of loans) | 1.31% | 1.32% | 1.28% | | Non-accrual Loans | $62.4 million | $83.5 million | $75.0 million | [Dividends and Conference Call](index=5&type=section&id=Dividends%20and%20Conference%20Call) The Board declared Q3 2025 cash dividends for common and preferred shares, with a conference call scheduled for July 31, 2025 - A Q3 2025 cash dividend of **$1.00** per common share was declared, payable on September 15, 2025, to shareholders of record on August 29, 2025[9](index=9&type=chunk) - A cash dividend of **$11.125** per share of Series B Preferred Stock (or **$0.278125** per depositary share) was also declared, payable on the same dates[9](index=9&type=chunk) - The company will host a conference call to discuss the results on July 31, 2025, at 1 p.m. Central Time[10](index=10&type=chunk) [Forward-Looking Statements](index=6&type=section&id=Forward-Looking%20Statements%20and%20Factors%20that%20Could%20Affect%20Future%20Results) This section outlines forward-looking statements, emphasizing that actual results may vary due to inherent risks and uncertainties, with no obligation to update [Risk Factors](index=6&type=section&id=Risk%20Factors) Key risk factors include changes in economic conditions, monetary policies, credit quality, technology, competition, and regulatory developments - Forward-looking statements are not guarantees of future performance and involve risks and uncertainties[12](index=12&type=chunk)[13](index=13&type=chunk) - Key risk factors include: - Effects of trade, monetary, and fiscal policies, including interest rates and tariffs[15](index=15&type=chunk) - Inflation and market fluctuations[15](index=15&type=chunk) - Changes in economic conditions and borrower financial health[15](index=15&type=chunk) - Shifts in loan portfolio mix and non-performing assets[15](index=15&type=chunk) - Technological changes and cybersecurity incidents[15](index=15&type=chunk) - Competition in banking markets[15](index=15&type=chunk) - Legal, regulatory, and accounting policy changes[15](index=15&type=chunk) [Consolidated Financial Summary (Unaudited)](index=7&type=section&id=Cullen%2FFrost%20Bankers%2C%20Inc.%20CONSOLIDATED%20FINANCIAL%20SUMMARY%20%28UNAUDITED%29) [Quarterly Financial Data](index=7&type=section&id=Quarterly%20Financial%20Data) This section presents unaudited consolidated financial data for the five most recent quarters, including income statements, balance sheets, and capital ratios Quarterly Consolidated Financial Data | | 2nd Qtr 2025 | 1st Qtr 2025 | 2nd Qtr 2024 | | :--- | :--- | :--- | :--- | | **Income Statement** | | | | | Net Interest Income | $429.6 million | $416.2 million | $396.7 million | | Credit Loss Expense | $13.1 million | $13.1 million | $15.8 million | | Total Non-interest Income | $117.3 million | $124.0 million | $111.2 million | | Total Non-interest Expense | $347.1 million | $348.1 million | $317.0 million | | Net Income (Common) | $155.3 million | $149.3 million | $143.8 million | | Diluted EPS | $2.39 | $2.30 | $2.21 | | **Balance Sheet (Period-End)** | | | | | Total Loans | $21,254 million | $20,904 million | $19,996 million | | Total Assets | $51,409 million | $52,005 million | $48,843 million | | Total Deposits | $41,684 million | $42,391 million | $40,318 million | | **Asset Quality** | | | | | Non-accrual Loans | $62.4 million | $83.5 million | $75.0 million | | **Capital Ratios** | | | | | Common Equity Tier 1 | 13.98% | 13.84% | 13.35% | [Year-to-Date Financial Data](index=9&type=section&id=Year-to-Date%20Financial%20Data) This section provides a comparative summary of year-to-date financial performance, including income statements, balance sheets, and asset quality metrics Year-to-Date Consolidated Financial Data | | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Income Statement** | | | | Net Interest Income | $845.8 million | $786.8 million | | Credit Loss Expense | $26.2 million | $29.4 million | | Total Non-interest Income | $241.3 million | $222.6 million | | Total Non-interest Expense | $695.2 million | $643.2 million | | Net Income (Common) | $304.6 million | $277.9 million | | Diluted EPS | $4.69 | $4.27 | | **Balance Sheet (Period-End)** | | | | Total Loans | $21,254 million | $19,996 million | | Total Assets | $51,409 million | $48,843 million | | Total Deposits | $41,684 million | $40,318 million | | **Asset Quality** | | | | Net Charge-offs | $20.8 million | $17.1 million | | Non-accrual Loans | $62.4 million | $75.0 million | [Taxable-Equivalent Yield/Cost and Average Balances](index=11&type=section&id=Taxable-Equivalent%20Yield%2FCost%20and%20Average%20Balances) This section details taxable-equivalent yields and costs on earning assets and interest-bearing liabilities, along with average balances, to explain net interest margin Taxable-Equivalent Yield/Cost and Average Balances (Q2 2025) | Metric (Q2 2025) | Yield/Cost | Average Balance ($M) | | :--- | :--- | :--- | | **Earning Assets** | | | | Loans, net of unearned discounts | 6.60% | $21,063 million | | Securities | 3.79% | $20,401 million | | Total earning assets | 5.07% | $47,664 million | | **Interest-Bearing Liabilities** | | | | Total interest-bearing deposits | 1.93% | $27,972 million | | Total interest-bearing funds | 2.12% | $32,471 million | | **Spreads** | | | | Net interest spread | 2.95% | - | | Net interest income to total avg. earning assets | 3.67% | - |

Company Overview - Cullen/Frost Bankers (CFR) is based in San Antonio and operates in the Finance sector, with a year-to-date share price change of 0.51% [3] - The company currently pays a dividend of $1.00 per share, resulting in a dividend yield of 2.96%, which is significantly higher than the Banks - Southwest industry's yield of 1.26% and the S&P 500's yield of 1.45% [3] Dividend Performance - The current annualized dividend of $4.00 represents a 7% increase from the previous year [4] - Over the past five years, Cullen/Frost Bankers has increased its dividend five times, achieving an average annual increase of 7.98% [4] - The company's current payout ratio is 42%, indicating that it pays out 42% of its trailing 12-month earnings per share as dividends [4] Earnings Growth Expectations - For the fiscal year 2025, the Zacks Consensus Estimate projects earnings of $9.27 per share, reflecting a year-over-year growth rate of 3.23% [5] - The company is positioned as an attractive dividend play and a compelling investment opportunity, holding a Zacks Rank of 2 (Buy) [6]