| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-----------------------------------------------------|-------|----------------------|------------|-------------------------------------------------------|--------------|----------------------|--------------|---------------------------------------------------|-------------| | | | Average Balance | To 30, | Quarter Date June 2023 \nInterest Expense Income/ | Yield/ Cost | Average Balance | Quarter June | To Date 30, 2022 \nInterest Expense Income/ ...

Cullen/Frost Bankers, Inc. (CFR) Q1 2023 Results Conference Call April 27, 2022 2:00 PM ET Company Participants A.B. Mendez - Senior Vice President and Director of Investor Relations Phillip Green - Chairman and Chief Executive Officer Jerry Salinas - Executive Vice President and Chief Financial Officer Conference Call Participants Steven Alexopoulos - JPMorgan Chase & Co Peter Winter - D.A. Davidson Brady Gailey - Keefe Bruyette & Woods Ebrahim Poonawala - BofA Securities Manan Gosalia - Morgan Stanley Bro ...

| --- | --- | --- | --- | |-----------------------------------------|-----------------------------------------|----------------------------|--------------------------------------------| | | | | | | | | | | | | file number: | Commission | 001-13221 | | (Exact | name of registrant as specified | Cullen/Frost Bankers, Inc. | in its charter) | | Texas | | | 74-1751768 | | (State or other jurisdiction of | or organization) | incorporation | (I.R.S. Employer Identification No.) | | 111 W. Houston Street, | San An ...

Table of Contents If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ ITEM 1. BUSINESS ☒ Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 | --- | --- | |---------------------|-------| | | | | | | | | | | | | | | | | | | | (I.R.S. Employer | | | | | | Identification No.) | | ...

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 ...