EX-99.1 2 a1q25formxex991xpressrelea.htm EX-99.1 - 1Q25 EARNINGS RELEASE Document


Exhibit 99.1


A.B. Mendez
Investor Relations
210.220.5234
or
Bill Day
Media Relations
210.220.5427


FOR IMMEDIATE RELEASE    
May 1, 2025



CULLEN/FROST REPORTS FIRST QUARTER RESULTS
Board increases quarterly common dividend by 5.3 percent to $1.00



SAN ANTONIO -- Cullen/Frost Bankers, Inc. (NYSE:CFR) today reported first quarter 2025 results.
Net income available to common shareholders for the first quarter of 2025 was $149.3 million compared to $134.0 million for the first quarter of 2024. On a per-share basis, net income available to common shareholders for the first quarter of 2025 was $2.30 per diluted common share, compared to $2.06 per diluted common share reported a year earlier. Returns on average assets and average common equity were 1.19 percent and 15.54 percent, respectively, for the first quarter of 2025 compared to 1.09 percent and 15.22 percent, respectively, for the same period a year earlier.
For the first quarter of 2025, net interest income on a taxable-equivalent basis was $436.4 million, up 6.1 percent compared to the same quarter in 2024. Average loans for the first quarter of 2025 increased $1.7 billion, or 8.8 percent, to $20.8 billion, from the $19.1 billion reported for the first quarter a year earlier, and increased $442.9 million, or 2.2 percent, compared to the fourth quarter of 2024. Average deposits for the first quarter increased $933.4 million, or 2.3 percent, to $41.7 billion, compared to the $40.7 billion reported for last year's first quarter, and decreased $227.5 million, or 0.5 percent, compared to the fourth quarter of 2024.


"In the first quarter we continued to see solid loan growth, and our deposit trends returned to our normal first quarter seasonality. We remain focused on generating continued, sustainable organic growth and expanding to offer the Frost experience to more customers throughout the state, and our strong first quarter results demonstrate that our strategy is working," said Cullen/Frost Chairman and CEO Phil Green.

"We continue to make investments in our own long-term growth, and those investments are bearing fruit. In the next month we plan to open our 199th location, in the Fort Worth region, and our 200th Frost location in Pflugerville, just north of Austin. At that point we will have increased our total location count by more than 50 percent since we launched our organic expansion program in December of 2018. I want to thank our dedicated employees who are overseeing these expansion efforts, and all of our employees who continue to be the driving force behind our company's performance."

Noted financial data for the first quarter of 2025 follows:

•The Common Equity Tier 1, Tier 1 and Total Risk-Based Capital Ratios at the end of the first quarter of 2025 were 13.84 percent, 14.30 percent and 15.76 percent, respectively, and continue to be in excess of well-capitalized levels and exceed Basel III minimum requirements.
•Net interest income on a taxable-equivalent basis was $436.4 million for the first quarter of 2025, an increase of 6.1 percent, compared to $411.4 million for the first quarter of 2024. Net interest margin was 3.60 percent for the first quarter of 2025 compared to 3.48 percent for the first quarter of 2024 and 3.53 percent for the fourth quarter of 2024.
•Non-interest income for the first quarter of 2025 totaled $124.0 million, an increase of $12.6 million, or 11.3 percent, from the $111.4 million reported for the first quarter of 2024. Trust and investment management fees increased $3.8 million, or 9.8 percent, compared to the first quarter of 2024. The increase in trust and investment management fees during the first quarter was primarily related to an increase in investment management fees (up $2.9 million) and estate fees (up $429,000). Investment management fees are generally based on the market value of assets within customer accounts and are thus

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impacted by price movements in the equity and bond markets. Service charges on deposit accounts increased $3.8 million, or 15.4 percent, compared to the first quarter of 2024. The increase in the first quarter was primarily related to increases in commercial and consumer overdraft charges (up $2.3 million), driven by continued increases in the number of active customer accounts, and commercial service charges (up $1.8 million). Insurance commissions and fees increased $2.7 million, or 14.9 percent, compared to the first quarter of 2024. The increase was mainly driven by an increase in benefit plan commissions (up $1.2 million), property and casualty commissions (up $675,000), and property and casualty contingent income (up $632,000).
•Non-interest expense was $348.1 million for the first quarter of 2025, up $21.8 million, or 6.7 percent, compared to the $326.2 million reported for the first quarter a year earlier. Excluding the additional FDIC special assessment that we accrued during the first quarter of 2024, total non-interest expense during the first quarter of 2025 would have increased by $29.6 million, or 9.3 percent, compared to the same period last year. Salaries and wages expense increased $12.9 million, or 8.7 percent, compared to the first quarter of 2024. The increase in salaries and wages was primarily related to increases in salaries due to annual merit and market increases and to an increase in the number of employees. The increase in the number of employees was partly related to our investment in organic expansion in various markets. Employee benefits expense increased by $6.2 million, or 17.2 percent, compared to the first quarter of 2024. The increase in employee benefits expense was primarily related to increases in 401(k) plan expense (up $3.0 million), payroll taxes (up $1.8 million) and medical/dental benefits expense (up $1.5 million). Technology, furniture, and equipment expense increased $5.1 million, or 14.6 percent, compared to the first quarter of 2024. The increase was primarily related to increased cloud services expense (up $2.5 million), software maintenance (up $1.3 million), and depreciation on furniture and equipment (up $616,000), among other things. Other non-interest expense increased $3.7 million, or 6.1 percent, compared to the first quarter of 2024. The increase included increases in professional services expense (up $1.0 million); donations expense (up $1.0 million), primarily related to a donation to the Frost Charitable Foundation; and business development expense (up $556,000), among other things.
•For the first quarter of 2025, the company reported a credit loss expense of $13.1 million, and reported net loan charge-offs of $9.7 million. This compares to a credit loss expense of $16.2 million and net loan

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charge-offs of $14.0 million for the fourth quarter of 2024 and a credit loss expense of $13.7 million and net loan charge-offs of $7.3 million for the first quarter of 2024. The allowance for credit losses on loans as a percentage of total loans was 1.32 percent at March 31, 2025, compared to 1.30 percent at December 31, 2024 and 1.29 percent at March 31, 2024. Non-accrual loans were $83.5 million at the end of the first quarter of 2025, compared to $78.9 million at the end of the fourth quarter of 2024 and $71.5 million at the end of the first quarter of 2024.
The Cullen/Frost board declared a second-quarter cash dividend of $1.00 per common share, representing a 5.3 percent increase compared to the previous quarterly dividend of $0.95 per share. The dividend on common stock is payable June 13, 2025 to shareholders of record on May 30 of this year. The board of directors also declared a cash dividend of $11.125 per share of Series B Preferred Stock (or $0.278125 per depositary share). The depositary shares representing the Series B Preferred Stock are traded on the NYSE under the symbol "CFR PrB." The Series B Preferred Stock dividend is payable June 16, 2025 to shareholders of record on May 30 of this year.
Cullen/Frost Bankers, Inc. will host a conference call on Thursday, May 1, 2025, at 1 p.m. Central Time (CT) to discuss the results for the quarter. The media and other interested parties are invited to access the call in a “listen only” mode at 1-877-709-8150 or via webcast on our investor relations website linked below. Playback of the conference call will be available after 5 p.m. CT on the day of the call until midnight Sunday, May 4, 2025 at 1-877-660-6853 with Conference ID # of 13753159. A replay of the call will also be available by webcast at the URL listed below after 5 p.m. CT on the day of the call.

Cullen/Frost investor relations website: https://investor.frostbank.com/

Cullen/Frost Bankers, Inc. (NYSE: CFR) is a financial holding company, headquartered in San Antonio, with $52.0 billion in assets at March 31, 2025. One of the 50 largest U.S. banks, Frost provides a wide range of banking, investments and insurance services to businesses and individuals across Texas in the Austin, Dallas, Fort Worth, Gulf Coast, Houston, Permian Basin, and San Antonio regions. Founded in 1868, Frost has helped clients with their financial needs during three centuries. Additional information is available at www.frostbank.com.


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Forward-Looking Statements and Factors that Could Affect Future Results
Certain statements contained in this Earnings Release 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 identified as such. In addition, certain statements may be contained in our future filings with the SEC, in press releases, and in oral and written statements made by us or with our approval that are not statements of historical fact and constitute forward-looking statements within the meaning of the Act. Examples of forward-looking statements include, but are not limited to: (i) projections of revenues, expenses, income or loss, earnings or loss per share, the payment or nonpayment of dividends, capital structure and other financial items; (ii) statements of plans, objectives and expectations of Cullen/Frost or its management or Board of Directors, including those relating to products, services or operations; (iii) statements of future economic performance; and (iv) statements of assumptions underlying such statements. Words such as “believes,” “anticipates,” “expects,” “intends,” “targeted,” “continue,” “remain,” “will,” “should,” “may,” and other similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements.
Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from those in such statements. Factors that could cause actual results to differ from those discussed in the forward-looking statements include, but are not limited to:

•The effects of and changes in trade and monetary and fiscal policies and laws, including the interest rate policies of the Federal Reserve Board and the implementation of tariffs and other protectionist trade policies.
•Inflation, interest rate, securities market, and monetary fluctuations.
•Local, regional, national, and international economic conditions and the impact they may have on us and our customers and our assessment of that impact.
•Changes in the financial performance and/or condition of our borrowers.
•Changes in the mix of loan geographies, sectors and types or the level of non-performing assets and charge-offs.
•Changes in estimates of future credit loss reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements.
•Changes in our liquidity position.
•Impairment of our goodwill or other intangible assets.
•The timely development and acceptance of new products and services and perceived overall value of these products and services by users.
•Changes in consumer spending, borrowing, and saving habits.
•Greater than expected costs or difficulties related to the integration of new products and lines of business.
•Technological changes.
•The cost and effects of cyber incidents or other failures, interruptions, or security breaches of our systems or those of our customers or third-party providers.
•Acquisitions and integration of acquired businesses.
•Changes in the reliability of our vendors, internal control systems or information systems.
•Our ability to increase market share and control expenses.
•Our ability to attract and retain qualified employees.
•Changes in our organization, compensation, and benefit plans.
•The soundness of other financial institutions.
•Volatility and disruption in national and international financial and commodity markets.
•Changes in the competitive environment in our markets and among banking organizations and other financial service providers.
•Government intervention in the U.S. financial system.
•Political or economic instability.
•Acts of God or of war or terrorism.
•The potential impact of climate change.
•The impact of pandemics, epidemics, or any other health-related crisis.
•The costs and effects of legal and regulatory developments, the resolution of legal proceedings or regulatory or other governmental inquiries, the results of regulatory examinations or reviews and the ability to obtain required regulatory approvals.
•The effect of changes in laws and regulations (including laws and regulations concerning taxes, banking, securities, and insurance) and their application with which we and our subsidiaries must comply.
•The effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board and other accounting standard setters.
•Our success at managing the risks involved in the foregoing items.

In addition, financial markets, international relations, and global supply chains have recently been significantly impacted by U.S. trade policies and practices including the implementation of targeted tariffs on imports and the subsequent 90-day pause on certain of those tariffs. Due to the rapidly evolving and changing state of U.S. trade policies, the amount and duration of any tariffs and their ultimate impact on us, our customers, financial markets, and the overall U.S. and global economies is currently uncertain. Nonetheless, prolonged uncertainty, elevated tariff levels or their wide-spread use in U.S. trade policy could weaken economic conditions and adversely impact the ability of borrowers to repay outstanding loans or the value of collateral securing these loans or adversely affect financial markets. To the extent that these risks may have a negative impact on the financial condition of borrowers or financial markets, it could also have a material adverse effect on our business, financial condition and results of operations.

Forward-looking statements speak only as of the date on which such statements are made. We do not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made, or to reflect the occurrence of unanticipated events.

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Cullen/Frost Bankers, Inc.
CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)
(In thousands, except per share amounts)
20252024
1st Qtr4th Qtr3rd Qtr2nd Qtr1st Qtr
CONDENSED INCOME STATEMENTS
Net interest income$416,220 $413,518 $404,331 $396,712 $390,051 
Net interest income (1)
436,404 433,726 425,160 417,621 411,367 
Credit loss expense13,070 16,162 19,386 15,787 13,650 
Non-interest income:
Trust and investment management fees42,931 43,765 41,016 41,404 39,085 
Service charges on deposit accounts28,621 27,909 27,412 26,114 24,795 
Insurance commissions and fees21,019 14,215 14,839 13,919 18,296 
Interchange and card transaction fees 5,402 5,764 5,428 5,351 4,474 
Other charges, commissions, and fees13,586 15,208 13,060 13,020 12,060 
Net gain (loss) on securities transactions(14)(112)16 — — 
Other12,466 16,075 11,936 11,382 12,667 
Total non-interest income 124,011 122,824 113,707 111,190 111,377 
Non-interest expense:
Salaries and wages160,857 165,520 156,637 151,237 148,000 
Employee benefits42,157 28,614 29,060 28,802 35,970 
Net occupancy33,277 32,102 32,497 32,374 31,778 
Technology, furniture, and equipment40,118 39,775 37,766 35,951 34,995 
Deposit insurance7,184 6,924 7,238 8,383 14,724 
Other 64,473 63,232 60,212 60,217 60,750 
Total non-interest expense 348,066 336,167 323,410 316,964 326,217 
Income before income taxes179,095 184,013 175,242 175,151 161,561 
Income taxes28,173 29,161 28,741 29,652 25,871 
Net income150,922 154,852 146,501 145,499 135,690 
Preferred stock dividends1,669 1,669 1,668 1,669 1,669 
Net income available to common shareholders$149,253 $153,183 $144,833 $143,830 $134,021 
PER COMMON SHARE DATA
Earnings per common share - basic$2.30 $2.37 $2.24 $2.21 $2.06 
Earnings per common share - diluted2.30 2.36 2.24 2.21 2.06 
Cash dividends per common share0.95 0.95 0.95 0.92 0.92 
Book value per common share at end of quarter61.74 58.46 62.41 55.02 54.36 
OUTSTANDING COMMON SHARES
Period-end common shares64,283 64,197 63,931 63,989 64,251 
Weighted-average common shares - basic64,255 64,116 63,958 64,193 64,216 
Dilutive effect of stock compensation74 121 127 140 156 
Weighted-average common shares - diluted64,329 64,237 64,085 64,333 64,372 
SELECTED ANNUALIZED RATIOS
Return on average assets1.19 %1.19 %1.16 %1.18 %1.09 %
Return on average common equity15.54 15.58 15.48 17.08 15.22 
Net interest income to average earning assets 3.60 3.53 3.56 3.54 3.48 
(1) Taxable-equivalent basis assuming a 21% tax rate.

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Cullen/Frost Bankers, Inc.
CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)
20252024
1st Qtr4th Qtr3rd Qtr2nd Qtr1st Qtr
BALANCE SHEET SUMMARY
($ in millions)
Average Balance:
Loans$20,788 $20,346 $20,084 $19,652 $19,112 
Earning assets47,424 47,577 46,100 45,527 45,883 
Total assets50,925 51,008 49,467 48,960 49,324 
Non-interest-bearing demand deposits13,798 14,051 13,659 13,679 13,976 
Interest-bearing deposits27,860 27,834 27,074 26,831 26,748 
Total deposits41,658 41,885 40,733 40,510 40,724 
Shareholders' equity4,041 4,057 3,868 3,533 3,687 
Period-End Balance:
Loans$20,904 $20,755 $20,055 $19,996 $19,388 
Earning assets48,409 48,878 47,424 45,344 46,164 
Total assets52,005 52,520 51,008 48,843 49,505 
Total deposits42,391 42,723 41,721 40,318 40,806 
Shareholders' equity4,114 3,899 4,135 3,666 3,638 
Adjusted shareholders' equity (1)
5,243 5,151 5,051 4,975 4,914 
ASSET QUALITY
($ in thousands)
Allowance for credit losses on loans:$275,488 $270,151 $263,129 $256,307 $250,297 
As a percentage of period-end loans1.32 %1.30 %1.31 %1.28 %1.29 %
Net charge-offs:$9,691 $13,962 $9,640 $9,726 $7,349 
Annualized as a percentage of average loans0.19 %0.27 %0.19 %0.20 %0.15 %
Non-accrual loans:$83,534 $78,866 $104,877 $74,987 $71,515 
As a percentage of total loans0.40 %0.38 %0.52 %0.38 %0.37 %
As a percentage of total assets0.16 0.15 0.21 0.15 0.14 
CONSOLIDATED CAPITAL RATIOS
Common Equity Tier 1 Risk-Based Capital Ratio13.84 %13.62 %13.55 %13.35 %13.41 %
Tier 1 Risk-Based Capital Ratio14.30 14.07 14.02 13.82 13.89 
Total Risk-Based Capital Ratio15.76 15.53 15.50 15.27 15.35 
Leverage Ratio8.84 8.63 8.80 8.62 8.44 
Equity to Assets Ratio (period-end)7.91 7.42 8.11 7.51 7.35 
Equity to Assets Ratio (average)7.94 7.95 7.82 7.22 7.47 
(1) Shareholders' equity excluding accumulated other comprehensive income (loss).

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Cullen/Frost Bankers, Inc.
TAXABLE-EQUIVALENT YIELD/COST AND AVERAGE BALANCES (UNAUDITED)
20252024
1st Qtr4th Qtr3rd Qtr2nd Qtr1st Qtr
TAXABLE-EQUIVALENT YIELD/COST(1)
Earning Assets:     
Interest-bearing deposits4.39 %4.71 %5.32 %5.40 %5.40 %
Federal funds sold4.79 5.16 5.65 5.78 5.76 
Resell agreements4.60 4.88 5.48 5.60 5.60 
Securities(2)
3.63 3.44 3.40 3.38 3.32 
Loans, net of unearned discounts6.57 6.77 7.12 7.08 7.00 
Total earning assets4.99 5.05 5.26 5.23 5.13 
Interest-Bearing Liabilities:
Interest-bearing deposits:
Savings and interest checking0.24 %0.29 %0.38 %0.39 %0.42 %
Money market deposit accounts2.27 2.47 2.80 2.83 2.82 
Time accounts3.97 4.32 4.73 4.77 4.73 
Total interest-bearing deposits1.94 2.14 2.41 2.39 2.34 
Total deposits1.30 1.42 1.60 1.58 1.54 
Federal funds purchased4.40 4.71 5.33 5.39 5.38 
Repurchase agreements3.13 3.34 3.72 3.75 3.76 
Junior subordinated deferrable interest debentures6.32 6.87 7.14 7.47 7.34 
Subordinated notes payable and other notes4.69 4.69 4.69 4.69 4.69 
Total interest-bearing liabilities2.12 2.32 2.60 2.59 2.54 
Net interest spread2.87 2.73 2.66 2.64 2.59 
Net interest income to total average earning assets3.60 3.53 3.56 3.54 3.48 
AVERAGE BALANCES
($ in millions)
Assets: 
Interest-bearing deposits$7,238 $8,577 $7,073 $7,156 $7,356 
Federal funds sold3 3 4 5 5 
Resell agreements10 11 41 85 85 
Securities - carrying value(2)
19,384 18,640 18,898 18,629 19,324 
Securities - amortized cost(2)
20,839 19,944 20,324 20,400 20,813 
Loans, net of unearned discount20,788 20,346 20,084 19,652 19,112 
Total earning assets$47,424 $47,577 $46,100 $45,527 $45,883 
Liabilities:
Interest-bearing deposits:
Savings and interest checking$9,969 $9,693 $9,470 $9,716 $9,918 
Money market deposit accounts11,432 11,683 11,122 11,009 11,058 
Time accounts6,458 6,458 6,482 6,106 5,773 
Total interest-bearing deposits27,860 27,834 27,074 26,831 26,748 
Total deposits41,658 41,885 40,733 40,510 40,724 
Federal funds purchased18 24 20 40 33 
Repurchase agreements4,147 3,946 3,777 3,827 3,787 
Junior subordinated deferrable interest debentures123 123 123 123 123 
Subordinated notes payable and other notes100 100 100 100 100 
Total interest-bearing funds$32,248 $32,027 $31,094 $30,921 $30,791 
(1) Taxable-equivalent basis assuming a 21% tax rate.
(2) Average securities include unrealized gains and losses on securities available for sale while yields are based on average amortized cost.

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