Cullen/Frost Bankers, Inc. (CFR) Q4 2022 Earnings Conference Call January 26, 2023 2:00 PM ET Corporate Participants A.B. Mendez - Senior Vice President and Director-Investor Relations Phil Green - Chairman and Chief Executive Officer Jerry Salinas - Group Executive Vice President and Chief Financial Officer Conference Call Participants Ebrahim Poonawala - Bank of America Steven Alexopoulos - JPMorgan Dave Rochester - Compass Point Brady Gailey - KBW Manan Gosalia - Morgan Stanley Peter Winter - D.A. Davids ...

Financial Data and Key Metrics Changes - In Q3 2022, Cullen/Frost earned $168.1 million or $2.59 per share, compared to $106.3 million or $1.65 per share in Q3 2021, and $117.4 million or $1.81 per share in Q2 2022 [7] - Return on average assets and average common equity were 1.27% and 20.13%, respectively, indicating strong performance and effective growth strategies [8] - Average loans, excluding PPP, were $16.75 billion, a 13% increase from $14.82 billion in Q3 2021, and a 5% increase on a linked-quarter basis [9] Business Line Data and Key Metrics Changes - Average consumer loans reached $2.1 billion, up 15.9% year-over-year, primarily driven by consumer real estate products [12] - New commercial commitments totaled $2.04 billion, up 12% year-over-year, but down 7% from the previous quarter [10] - Total delinquencies, excluding PPP, were $80.5 million, or 48 basis points of total loans, indicating stable credit quality [17] Market Data and Key Metrics Changes - Average deposits in Q3 were $45.8 billion, a 17% increase compared to Q3 2021, and up 9.6% on an annualized basis from the previous quarter [11] - The Houston expansion branches generated approximately $1 billion in deposits, with loans of $765 million and over 18,000 new households [13] - The Dallas branches opened earlier in the month achieved 356% of deposit goals and 290% of loan goals [14] Company Strategy and Development Direction - The company is focused on sustainable organic growth, with a strategy to expand its presence in Texas through new branches and enhanced customer relationships [20] - A new mortgage loan process is being developed, with plans for a pilot program to launch soon [16] - The company aims to maintain a strong customer service focus while investing in technology and marketing to enhance its competitive position [64] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate economic challenges, emphasizing strong credit quality and effective risk management [20][81] - The outlook for consumer loans remains positive, with expectations for continued growth in the consumer banking sector [12] - Management indicated that they do not foresee significant issues with asset quality, despite potential risks in commercial real estate [81] Other Important Information - The net interest margin for Q3 was 3.01%, up 45 basis points from the previous quarter, driven by higher yields on loans and balances held at the Fed [22] - Total noninterest expenses increased by $11.6 million or 4.7% from the previous quarter, primarily due to higher salaries and wages [29] - The effective tax rate for Q3 was 14%, with expectations for the full year to be in the range of 13% to 14% [30] Q&A Session Summary Question: What drove the growth of noninterest-bearing deposits? - Management noted that while there are concerns about larger balances, they have managed to offset reductions and continue to build relationships, with 55% of deposit growth from existing customers and 45% from new customers [33] Question: What is the outlook for the TCE ratio? - Management indicated that the TCE ratio is not a major concern, and future movements will depend on interest rates rather than just payoffs [35][36] Question: How is the customer reception to higher deposit rates? - Management reported continued growth in retail numbers and deposits, indicating a positive reception to higher rates [41] Question: What are the expectations for net interest income (NII) and net interest margin (NIM)? - Management expects NIM and NII to increase in Q4, with a positive trajectory into 2023 [47] Question: What is the outlook for deposit growth in 2023? - Management anticipates softer growth compared to previous quarters, particularly for larger customers, but remains optimistic due to branch expansions and competitive rates [56] Question: Are there any concerns regarding asset quality trends? - Management stated that there are currently no significant weaknesses in asset quality, although they are monitoring commercial real estate closely [81] Question: What is the plan for branch expansion? - Management plans to open approximately 20 more branches in Dallas and Houston, continuing to explore attractive markets in Texas [87][88]

United States Securities and Exchange Commission Washington, D.C. 20549 Form 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended: September 30, 2022 Or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from ________________ to ________________ | --- | --- | --- | --- | |-----------------------------------------|---------------------------------------------------------- ...

Financial Data and Key Metrics Changes - In Q2 2022, Cullen/Frost earned $117.4 million or $1.81 per share, compared to $116.4 million or $1.80 per share in the same quarter last year, and $97.4 million or $1.50 per share in Q1 2022 [7] - Return on average assets and average common equity in Q2 was 0.92% and 13.88% respectively [7] - Net interest margin percentage for Q2 was 2.56%, up 23 basis points from 2.33% in the previous quarter [22] Business Line Data and Key Metrics Changes - Average loans, excluding PPP, in Q2 were $16.5 billion, a 13.2% increase from $14.6 billion in Q2 2021 [8] - Consumer loan growth was strong, with average consumer loans growing by 20.6% on a linked quarter annualized basis [12] - Average deposits in Q2 were $44.7 billion, an increase of 16.9% compared to Q2 last year [10] Market Data and Key Metrics Changes - The weighted 90-day pipeline was up 9% from a year ago, although it was down 2% on a linked quarter basis [9] - New loan opportunities increased 10% year-over-year and 9% on a linked quarter basis [9] - Public fund balances negatively affected linked quarter growth, with average balances down $400 million [28] Company Strategy and Development Direction - The company is focused on maintaining strong deposit growth as part of its long-term relationship-building strategy [10] - Expansion efforts in Houston and Dallas are showing positive results, with the company exceeding its deposit and loan goals in both markets [13] - A new mortgage product is expected to launch by the end of the year, aimed at enhancing customer experience [14] Management's Comments on Operating Environment and Future Outlook - Management noted no signs of increasing loan delinquency despite broader economic uncertainties [14] - The company is optimistic about maintaining strong loan growth and is not currently seeing significant credit issues [56] - Management expects total non-interest expenses to increase at a low double-digit percentage rate over 2021 levels due to wage increases and expansion efforts [29] Other Important Information - The effective tax rate for Q2 was 14.8%, with expectations for the full year to be around 13% to 14% [30] - The company has helped over 98% of its PPP borrowers with forgiveness, showcasing its commitment to customer support [18] Q&A Session Summary Question: What was the thought behind driving strong growth in interest-bearing deposits? - Management emphasized a cultural decision to provide a fair value proposition to customers, recognizing the importance of trust in the banking relationship [34][36] Question: How should deposit betas be thought of through the cycle? - Management indicated that historical betas were about 30% on interest-bearing deposits and 20% on total deposits, which is what they are currently assuming for 2022 [39] Question: Was the goal for new markets too low? - Management explained that goals were based on historical performance, and they are encouraged by the results in Dallas, which could potentially outperform Houston [42] Question: What is the outlook for expenses in the second half of the year? - Management expects a deceleration in expense growth as many increases have already been built into the base [46] Question: How is credit quality being managed? - Management stated that they are comfortable with their current reserve levels and are not seeing signs that would necessitate provisioning [56][75] Question: How are competitors behaving in terms of risk appetite? - Management noted some marginal improvement in competitive structure but indicated that competition remains strong, particularly in commercial real estate [78]

United States Securities and Exchange Commission Washington, D.C. 20549 Form 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended: June 30, 2022 Or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from ________________ to ________________ | --- | --- | --- | --- | |-----------------------------------------|--------------------------------------------------------------- ...

Cullen/Frost Bankers, Inc. (CFR) Q1 2022 Earnings Conference Call April 28, 2022 2:00 PM ET Company Participants A.B. Mendez - Senior Vice President and Director, Investor Relations Phil Green - Chairman and Chief Executive Officer Jerry Salinas - Group Executive Vice President and Chief Financial Officer Conference Call Participants Michael Rose - Raymond James Brady Gailey - KBW Ebrahim Poonawala - Bank of America Jennifer Demba - Truist Securities Steven Alexopoulos - JPMorgan Jon Arfstrom - RBC Capital ...

United States Securities and Exchange Commission Washington, D.C. 20549 Form 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended: March 31, 2022 Or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from ________________ to ________________ Commission file number: 001-13221 Cullen/Frost Bankers, Inc. (Exact name of registrant as specified in its charter) (210) 220-4011 ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended: December 31, 2021 Or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission file number: 001-13221 CULLEN/FROST BANKERS, INC. (Exact name of registrant as specified in its charter) Texas 74-1751768 111 W. Houston Texa ...

Cullen/Frost Bankers, Inc. (CFR) Q4 2021 Earnings Conference Call January 27, 2022 2:00 PM ET Company Participants A. B. Mendez - SVP & Director, IR Phillip Green - Chairman & CEO Jerry Salinas - Group EVP & CFO Conference Call Participants Brady Gailey - KBW Jennifer Demba - Truist Securities David Rochester - Compass Point Peter Winter - Wedbush Securities Steven Alexopoulos - JP Morgan Jon Arfstrom - RBC Capital Markets Operator Greetings and welcome to Cullen/Frost Bankers’ Fourth Quarter 2021 Earnings ...

Cullen/Frost Bankers, Inc. (CFR) Q3 2021 Earnings Conference Call October 28, 2021 2:00 PM ET Company Participants A. B. Mendez - Director, IR Phillip Green - Chairman & CEO Jerry Salinas - Group EVP & CFO Conference Call Participants Brady Gailey - KBW Ebrahim Poonawala - Bank of America Merrill Lynch Jennifer Demba - Truist Securities Anthony Elian - JPMorgan Chase & Co. Jon Arfstrom - RBC Capital Markets Kenneth Zerbe - Morgan Stanley Operator Greetings and welcome to Cullen/Frost Bankers, Inc. Third Qua ...