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CLOSED · 06:35 ET
Market ClerkRecap
Sun Oct 25 · markets closed1 signal on Oct 2494 insider buys this week · $48.3MCIRO short report next: Oct 31The week ahead

CFR

CULLEN/FROST BANKERS, INC.
NYSE · FINANCIALS · NATIONAL COMMERCIAL BANKS
157.05
−0.63 −0.40%
USD · close Oct 23
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Work order
13
FLAG · shorts 13
Insiders, 90 days
0
no open-market filings in 90 days
Congress, 90 days
0 / 0
no disclosures naming it
Big money
0 / 15
none of the tracked funds disclose it
Calls on record
0
nobody we score has called it yet
MKT CAP $9.8BP/E 14.8DIV YIELD 2.57%FCF YIELD 5.55%REV TTM $2.3B +7.4%NET INCOME $683.7M +12.2%NET CASH —52W 119.85 – 170.08SEC XBRL · TTM TO Invalid Date

How CFR rewrote its risk factors

10-K ITEM 1A · FY2024 → FY2025
Text kept
62%
of sentences unchanged
Added
229
new sentences
Dropped
221
sentences removed
Length
+460
words, now 38,636

New in FY2025

  • Our model simulations as of December 31, 2025 indicate that our projected balance sheet is slightly more asset sensitive in comparison to our balance sheet as of December 31, 2024.
  • For modeling purposes, as of December 31, 2025, the model simulations projected that 100 and 200 basis point ratable increases in interest rates would result in positive variances in net interest income of 1.5% and 3.0%, respectively, relative to the flat-rate case over the next 12 months, while 100 and 200 basis point ratable decreases in interest rates would result in a negative variances in net interest income of 1.3% and 3.4%, respectively, relative to the flat-rate case over the next 12 months.
  • Our December 31, 2025 and December 31, 2024 model simulations did not assume any payment of interest on commercial demand deposits (those not already receiving an earnings credit).
  • As of December 31, 2025, the effects of a 200 basis point increase and a 200 basis point decrease in interest rates on our derivative holdings would not result in a significant variance in our net interest income.
  • (the Company) as of December 31, 2025 and 2024, the related consolidated statements of income, comprehensive income, changes in shareholders’ equity and cash flows for each of the three years in the period ended December 31, 2025, and the related notes (collectively referred to as the “consolidated financial statements”).
  • In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with U.S. generally accepted accounting principles.
  • We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) and our report dated February 5, 2026 expressed an unqualified opinion thereon.
  • Allowances for Credit Losses Description of the Matter The Company’s loan portfolio totaled $21.9 billion as of December 31, 2025 and the associated allowance for credit losses on loans was $ 281.5 million.
  • The Company’s unfunded loan commitments totaled $ 12.9 billion, with an associated allowance for credit loss of $ 51.3 million.
  • San Antonio, Texas February 5, 2026 Cullen/Frost Bankers, Inc.
  • Consolidated Balance Sheets (Dollars in thousands, except per share amounts) December 31, 2025 2024 Assets: Cash and due from banks $ 681,325 $ 722,906 Interest-bearing deposits 8,183,080 9,495,777 Federal funds sold — 5,925 Resell agreements 9,650 9,650 Total cash and cash equivalents 8,874,055 10,234,258 Securities held to maturity, net of allowance for credit losses of $ 500 at 2025 and $ 310 at 2024 3,431,179 3,533,775 Securities available for sale, at estimated fair value 15,970,596 15,043,625 Trading account securities 37,604 33,910 Loans, net of unearned discounts 21,891,812 20,754,813 Less: Allowance for credit losses on loans ( 281,495 ) ( 270,151 ) Net loans 21,610,317 20,484,662 Premises and equipment, net 1,313,225 1,245,377 Accrued interest receivable and other assets 1,804,448 1,944,652 Total assets $ 53,041,424 $ 52,520,259 Liabilities: Deposits: Non-interest-bearing demand deposits $ 14,143,815 $ 14,441,820 Interest-bearing deposits 28,774,049 28,280,928 Total deposits 42,917,864 42,722,748 Federal funds purchased 18,775 21,975 Repurchase agreements 4,525,855 4,342,941 Junior subordinated deferrable interest debentures, net of unamortized issuance costs 123,242 123,184 Subordinated notes, net of unamortized issuance costs 99,804 99,648 Accrued interest payable and other liabilities 782,848 1,311,175 Total liabilities 48,468,388 48,621,671 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 in 2025 and 2024 145,452 145,452 Common stock, par value $ 0.01 per share; 210,000,000 shares authorized; 64,404,582 shares issued in both 2025 and 2024 644 644 Additional paid-in capital 1,100,327 1,075,572 Retained earnings 4,309,171 3,951,482 Accumulated other comprehensive income (loss), net of tax ( 842,951 ) ( 1,252,004 ) Treasury stock, at cost; 1,117,394 shares in 2025 and 207,150 in 2024 ( 139,607 ) ( 22,558 ) Total shareholders’ equity 4,573,036 3,898,588 Total liabilities and shareholders’ equity $ 53,041,424 $ 52,520,259 See accompanying Notes to Consolidated Financial Statements.
  • Consolidated Statements of Income (Dollars in thousands, except per share amounts) Year Ended December 31, 2025 2024 2023 Interest income: Loans, including fees $ 1,383,694 $ 1,375,442 $ 1,189,377 Securities: Taxable 488,257 396,224 406,289 Tax-exempt 239,259 218,177 240,131 Interest-bearing deposits 308,751 397,414 376,010 Federal funds sold 196 270 1,288 Resell agreements 590 3,110 4,621 Total interest income 2,420,747 2,390,637 2,217,716 Interest expense: Deposits 533,265 629,107 508,255 Federal funds purchased 1,079 1,556 1,524 Repurchase agreements 137,908 141,833 135,969 Junior subordinated deferrable interest debentures 7,689 8,872 8,647 Subordinated notes 4,657 4,657 4,657 Total interest expense 684,598 786,025 659,052 Net interest income 1,736,149 1,604,612 1,558,664 Credit loss expense 44,202 64,985 46,171 Net interest income after credit loss expense 1,691,947 1,539,627 1,512,493 Non-interest income: Trust and investment management fees 177,097 165,270 153,315 Service charges on deposit accounts 121,572 106,230 93,504 Insurance commissions and fees 65,502 61,269 58,271 Interchange and card transaction fees 22,858 21,017 19,419 Other charges, commissions and fees 57,511 53,348 49,026 Net gain (loss) on securities transactions ( 850 ) ( 96 ) 66 Other 55,405 52,060 54,941 Total non-interest income 499,095 459,098 428,542 Non-interest expense: Salaries and wages 674,647 621,394 547,718 Employee benefits 146,101 122,446 115,306 Net occupancy 136,940 128,751 124,396 Technology, furniture and equipment 165,744 148,487 135,286 Deposit insurance 18,752 37,269 76,589 Other 277,156 244,411 229,367 Total non-interest expense 1,419,340 1,302,758 1,228,662 Income before income taxes 771,702 695,967 712,373 Income taxes 123,145 113,425 114,400 Net income 648,557 582,542 597,973 Preferred stock dividends 6,675 6,675 6,675 Net income available to common shareholders $ 641,882 $ 575,867 $ 591,298 Earnings per common share: Basic $ 9.92 $ 8.88 $ 9.11 Diluted 9.92 8.87 9.10 See accompanying Notes to Consolidated Financial Statements.
  • Consolidated Statements of Comprehensive Income (Dollars in thousands) Year Ended December 31, 2025 2024 2023 Net income $ 648,557 $ 582,542 $ 597,973 Other comprehensive income (loss), before tax: Securities available for sale and transferred securities: Change in net unrealized gain/loss during the period 514,556 ( 171,662 ) 277,926 Change in net unrealized gain on securities transferred to held to maturity ( 521 ) ( 629 ) ( 649 ) Reclassification adjustment for net (gains) losses included in net income 850 96 ( 66 ) Total securities available for sale and transferred securities 514,885 ( 172,195 ) 277,211 Defined-benefit post-retirement benefit plans: Change in the net actuarial gain/loss 1,665 2,439 9,278 Reclassification adjustment for net amortization of actuarial gain/loss included in net income as a component of net periodic cost (benefit) 1,239 1,673 3,479 Total defined-benefit post-retirement benefit plans 2,904 4,112 12,757 Other comprehensive income (loss), before tax 517,789 ( 168,083 ) 289,968 Deferred tax expense (benefit) 108,736 ( 35,298 ) 60,893 Other comprehensive income (loss), net of tax 409,053 ( 132,785 ) 229,075 Comprehensive income (loss) $ 1,057,610 $ 449,757 $ 827,048 See accompanying Notes to Consolidated Financial Statements.
  • Consolidated Statement of Changes in Shareholders’ Equity (Dollars in thousands, except per share amounts) Preferred Stock Common Stock Additional Paid-In Capital Retained Earnings Accumulated Other Comprehensive Income (Loss), Net of Tax Treasury Stock Total Balance at January 1, 2023 $ 145,452 $ 643 $ 1,029,756 $ 3,309,671 $ ( 1,348,294 ) $ — $ 3,137,228 Net income — — — 597,973 — — 597,973 Other comprehensive income, net of tax — — — — 229,075 — 229,075 Stock option exercises/stock unit conversions ( 267,357 shares) — 1 1,463 ( 10,958 ) — 18,793 9,299 Stock-based compensation expense recognized in earnings — — 24,590 — — — 24,590 Purchase of treasury stock ( 436,765 shares) — — — — — ( 42,720 ) ( 42,720 ) Cash dividends – Series B preferred stock (approximately $ 44.50 per share which is equivalent to approximately $ 1.11 per depositary share) — — — ( 6,675 ) — — ( 6,675 ) Cash dividends – common stock ($ 3.58 per share) — — — ( 232,323 ) — — ( 232,323 ) Balance at December 31, 2023 145,452 644 1,055,809 3,657,688 ( 1,119,219 ) ( 23,927 ) 3,716,447 Net income — — — 582,542 — — 582,542 Other comprehensive income, net of tax — — — — ( 132,785 ) — ( 132,785 ) Stock option exercises/stock unit conversions ( 589,782 shares) — — — ( 39,627 ) — 62,270 22,643 Stock-based compensation expense recognized in earnings — — 19,763 — — — 19,763 Purchase of treasury stock ( 577,637 shares) — — — — — ( 60,901 ) ( 60,901 ) Cash dividends – Series B preferred stock (approximately $ 44.50 per share which is equivalent to approximately $ 1.11 per depositary share) — — — ( 6,675 ) — — ( 6,675 ) Cash dividends – common stock ($ 3.74 per share) — — — ( 242,446 ) — — ( 242,446 ) Balance at December 31, 2024 145,452 644 1,075,572 3,951,482 ( 1,252,004 ) ( 22,558 ) 3,898,588 Net income — — — 648,557 — — 648,557 Other comprehensive income, net of tax — — — — 409,053 — 409,053 Stock option exercises/stock unit conversions ( 344,237 shares) — — — ( 28,837 ) — 40,783 11,946 Stock-based compensation expense recognized in earnings — — 24,755 — — — 24,755 Purchase of treasury stock ( 1,254,481 shares) — — — — — ( 157,832 ) ( 157,832 ) Cash dividends – Series B preferred stock (approximately $ 44.50 per share which is equivalent to approximately $ 1.11 per depositary share) — — — ( 6,675 ) — — ( 6,675 ) Cash dividends – common stock ($ 3.95 per share) — — — ( 255,356 ) — — ( 255,356 ) Balance at December 31, 2025 $ 145,452 $ 644 $ 1,100,327 $ 4,309,171 $ ( 842,951 ) $ ( 139,607 ) $ 4,573,036 See accompanying Notes to Consolidated Financial Statements Cullen/Frost Bankers, Inc.
  • Consolidated Statements of Cash Flows (Dollars in thousands) Year Ended December 31, 2025 2024 2023 Operating Activities: Net income $ 648,557 $ 582,542 $ 597,973 Adjustments to reconcile net income to net cash from operating activities: Credit loss expense 44,202 64,985 46,171 Deferred tax expense (benefit) 5,372 ( 11,600 ) ( 14,829 ) Accretion of loan discounts ( 26,624 ) ( 23,951 ) ( 17,724 ) Securities premium amortization (discount accretion), net 39,600 45,213 63,893 Net (gain) loss on securities transactions 850 96 ( 66 ) Depreciation and amortization 87,785 82,817 76,442 Net (gain) loss on sale/exchange/write-down of assets/foreclosed assets ( 3,031 ) ( 141 ) 750 Stock-based compensation 24,755 19,763 24,590 Net tax benefit from stock-based compensation 2,265 3,795 894 Earnings on life insurance policies ( 3,940 ) ( 3,745 ) ( 2,944 ) Net change in: Trading account securities ( 3,694 ) ( 3,644 ) ( 2,220 ) Lease right-of-use assets 24,832 25,264 23,573 Accrued interest receivable and other assets ( 7,669 ) 259,142 ( 232,665 ) Accrued interest payable and other liabilities ( 559,281 ) ( 51,004 ) ( 84,993 ) Net cash from operating activities 273,979 989,532 478,845 Investing Activities: Securities held to maturity: Purchases ( 1,500 ) — ( 1,147,624 ) Maturities, calls and principal repayments 100,314 81,750 162,142 Securities available for sale: Purchases ( 21,495,449 ) ( 17,899,779 ) ( 19,124,336 ) Sales 45,372 123,254 1,904,067 Maturities, calls and principal repayments 21,021,849 19,600,708 19,103,872 Proceeds from sale of loans 14,119 3,323 15,851 Net change in loans ( 1,158,427 ) ( 1,966,111 ) ( 1,701,895 ) Net cash paid in insurance agency asset acquisitions — ( 703 ) — Benefits received on life insurance policies 2,479 1,823 1,937 Proceeds from sales of premises and equipment 960 25 1,282 Purchases of premises and equipment ( 146,652 ) ( 127,776 ) ( 158,630 ) Proceeds from sales of repossessed properties 15,840 2,607 583 Net cash from investing activities ( 1,601,095 ) ( 180,879 ) ( 942,751 ) Financing Activities: Net change in deposits 195,116 802,180 ( 2,033,628 ) Net change in short-term borrowings 179,714 223,528 ( 570,903 ) Proceeds from stock option exercises 11,946 22,643 9,299 Purchase of treasury stock ( 157,832 ) ( 60,901 ) ( 42,720 ) Cash dividends paid on preferred stock ( 6,675 ) ( 6,675 ) ( 6,675 ) Cash dividends paid on common stock ( 255,356 ) ( 242,446 ) ( 232,323 ) Net cash from financing activities ( 33,087 ) 738,329 ( 2,876,950 ) Net change in cash and cash equivalents ( 1,360,203 ) 1,546,982 ( 3,340,856 ) Cash and cash equivalents at beginning of year 10,234,258 8,687,276 12,028,132 Cash and cash equivalents at end of year $ 8,874,055 $ 10,234,258 $ 8,687,276 See accompanying Notes to Consolidated Financial Statements.
  • Nonetheless, under the Basel III Capital Rules, trust preferred securities may be included as a component of Tier 2 capital on a permanent basis without phase-out.
  • As of December 31, 2025 and 2024, we had $ 11.2 million and $ 350 thousand in cash collateral on deposit with other financial institution counterparties to derivative transactions.
  • Additional cash flow information was as follows.
  • Year Ended December 31, 2025 2024 2023 Cash paid for: Interest $ 697,731 $ 788,377 $ 616,274 U.S. federal income taxes, net of refunds received 110,500 121,986 117,986 State income/franchise taxes, net of refunds received 1,806 1,910 719 Significant non-cash transactions: Unsettled securities transactions 20,716 501,587 1,452 Loans foreclosed and transferred to other real estate owned and foreclosed assets 659 19,297 — Right-of-use lease assets obtained in exchange for lessee operating lease liabilities 13,728 15,044 15,259 Repurchase/Resell Agreements.
  • However, renewal options related to our regional headquarters facilities, operations centers and ground leases are evaluated on a case-by-case basis, typically in advance of such time frame.
  • Foreclosed assets are included in other assets in the accompanying consolidated balance sheets and totaled $ 1.3 million and $ 14.1 million at December 31, 2025 and 2024.
  • There were no write-downs of foreclosed assets in 2025, 2024, or 2023.
  • We adopted ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” for our annual financial statements in 2025.
  • A summary of the amortized cost, fair value and allowance for credit losses related to securities held to maturity as of December 31, 2025 and 2024 is presented below.
  • Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Allowance for Credit Losses Net Carrying Amount December 31, 2025 Residential mortgage-backed securities $ 1,113,474 $ 5,952 $ 29,220 $ 1,090,206 $ — $ 1,113,474 States and political subdivisions 2,316,705 10,089 123,068 2,203,726 ( 500 ) 2,316,205 Other 1,500 — 1 1,499 — 1,500 Total $ 3,431,679 $ 16,041 $ 152,289 $ 3,295,431 $ ( 500 ) $ 3,431,179 December 31, 2024 Residential mortgage-backed securities $ 1,193,840 $ — $ 71,076 $ 1,122,764 $ — $ 1,193,840 States and political subdivisions 2,338,745 13,954 116,414 2,236,285 ( 310 ) 2,338,435 Other 1,500 — 3 1,497 — 1,500 Total $ 3,534,085 $ 13,954 $ 187,493 $ 3,360,546 $ ( 310 ) $ 3,533,775 All mortgage-backed securities included in the above table were issued by U.S. government agencies and corporations.
  • The carrying value of held-to-maturity securities pledged to secure public funds, trust deposits, repurchase agreements and for other purposes, as required or permitted by law was $ 1.4 billion at both December 31, 2025 and 2024, respectively.
  • Accrued interest receivable on held-to-maturity securities totaled $ 37.2 million and $ 37.8 million at December 31, 2025 and 2024, respectively and is included in accrued interest receivable and other assets in the accompanying consolidated balance sheets.
  • The following table summarizes Moody's and/or Standard & Poor's bond ratings for our portfolio of held-to-maturity securities issued by States and political subdivisions and other securities as of December 31, 2025: States and Political Subdivisions Not Guaranteed or Pre-Refunded Guaranteed by the Texas PSF Guaranteed by Third Party Pre-Refunded Total Other Securities Aaa/AAA $ 300,477 $ 1,467,646 $ 6,140 $ 35,216 $ 1,809,479 $ — Aa/AA 488,778 — 13,579 — 502,357 — A 4,869 — — — 4,869 — Not rated — — — — — 1,500 Total $ 794,124 $ 1,467,646 $ 19,719 $ 35,216 $ 2,316,705 $ 1,500 Historical loss rates associated with securities having similar grades as those in our portfolio have generally not been significant.
  • Furthermore, as of December 31, 2025, there were no past due principal or interest payments associated with these securities.
  • The following table details activity in the allowance for credit losses on held-to-maturity securities. 2025 2024 2023 Beginning balance $ 310 $ 310 $ 158 Credit loss expense (benefit) 190 — 152 Ending balance $ 500 $ 310 $ 310 Securities - Available for Sale.
  • A summary of the amortized cost, fair value and allowance for credit losses related to securities available for sale as of December 31, 2025 and 2024 is presented below.
  • Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Allowance for Credit Losses Estimated Fair Value December 31, 2025 U.S.
  • Treasury $ 2,604,852 $ 22 $ 148,357 $ — $ 2,456,517 Residential mortgage-backed securities 8,818,139 54,668 751,013 — 8,121,794 States and political subdivisions 5,548,304 29,000 227,447 — 5,349,857 Other 42,428 — — — 42,428 Total $ 17,013,723 $ 83,690 $ 1,126,817 $ — $ 15,970,596 December 31, 2024 U.S.
  • Treasury $ 3,692,215 $ — $ 249,895 $ — $ 3,442,320 Residential mortgage-backed securities 8,024,704 2,352 1,029,154 — 6,997,902 States and political subdivisions 4,842,060 2,493 284,329 — 4,560,224 Other 43,179 — — — 43,179 Total $ 16,602,158 $ 4,845 $ 1,563,378 $ — $ 15,043,625 All mortgage-backed securities included in the above table were issued by U.S. government agencies and corporations.
  • At December 31, 2025, all of the securities in our available for sale municipal bond portfolio were issued by the State of Texas or political subdivisions or agencies within the State of Texas, of which approximately 71.5 % are either guaranteed by the PSF or have been pre-refunded.
  • The carrying value of available-for-sale securities pledged to secure public funds, trust deposits, repurchase agreements and for other purposes, as required or permitted by law was $ 6.6 billion and $ 6.2 billion at December 31, 2025 and 2024, respectively.
  • Accrued interest receivable on available-for-sale securities totaled $ 122.5 million and $ 104.9 million at December 31, 2025 and 2024, respectively, and is included in accrued interest receivable and other assets in the accompanying consolidated balance sheets.
  • The table below summarizes, as of December 31, 2025, securities available for sale in an unrealized loss position for which an allowance for credit losses has not been recorded, aggregated by type of security and length of time in a continuous unrealized loss position.
  • Treasury $ — $ — $ 2,407,177 $ 148,357 $ 2,407,177 $ 148,357 Residential mortgage-backed securities 65,522 192 4,540,847 750,821 4,606,369 751,013 States and political subdivisions 798,513 9,195 2,758,967 218,252 3,557,480 227,447 Total $ 864,035 $ 9,387 $ 9,706,991 $ 1,117,430 $ 10,571,026 $ 1,126,817 As of December 31, 2025, no allowance for credit losses has been recognized on available for sale securities in an unrealized loss position as management does not believe any of the securities are impaired due to reasons of credit quality.
  • The following table summarizes the maturity distribution schedule of securities held to maturity and securities available for sale as of December 31, 2025.

and 189 more.

Gone since FY2024

  • These model simulations indicate that our balance sheet as of December 31, 2024 is slightly less asset sensitive in comparison to our balance sheet as of December 31, 2023.
  • For modeling purposes, as of December 31, 2023, the model simulations projected that 100 and 200 basis point ratable increases in interest rates would result in positive variances in net interest income of 1.7% and 3.5%, respectively, relative to the flat-rate case over the next 12 months, while 100 and 200 basis point ratable decreases in interest rates would result in a negative variances in net interest income of 1.3% and 3.0%, respectively, relative to the flat-rate case over the next 12 months.
  • Our December 31, 2024 and December 31, 2023 model simulations did not assume any payment of interest on commercial demand deposits (those not already receiving an earnings credit).
  • As of December 31, 2024, the effects of a 200 basis point increase and a 200 basis point decrease in interest rates on our derivative holdings would not result in a significant variance in our net interest income.
  • (the Company) as of December 31, 2024 and 2023, the related consolidated statements of income, comprehensive income, changes in shareholders’ equity and cash flows for each of the three years in the period ended December 31, 2024, and the related notes (collectively referred to as the consolidated financial statements).
  • In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2024, in conformity with U.S. generally accepted accounting principles.
  • We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated February 6, 2025 expressed an unqualified opinion thereon.
  • Allowances for Credit Losses Description of the Matter The Company’s loan portfolio totaled $20.8 billion as of December 31, 2024 and the associated allowance for credit losses on loans was $270.2 million.
  • The Company’s unfunded loan commitments totaled $12.5 billion, with an associated allowance for credit loss of $51.9 million.
  • San Antonio, Texas February 6, 2025 Cullen/Frost Bankers, Inc.
  • Consolidated Balance Sheets (Dollars in thousands, except per share amounts) December 31, 2024 2023 Assets: Cash and due from banks $ 722,906 $ 617,569 Interest-bearing deposits 9,495,777 7,985,057 Federal funds sold 5,925 — Resell agreements 9,650 84,650 Total cash and cash equivalents 10,234,258 8,687,276 Securities held to maturity, net of allowance for credit losses of $ 310 at both 2024 and 2023 3,533,775 3,619,428 Securities available for sale, at estimated fair value 15,043,625 16,578,371 Trading account securities 33,910 31,717 Loans, net of unearned discounts 20,754,813 18,824,251 Less: Allowance for credit losses on loans ( 270,151 ) ( 245,996 ) Net loans 20,484,662 18,578,255 Premises and equipment, net 1,245,377 1,190,033 Accrued interest receivable and other assets 1,944,652 2,159,958 Total assets $ 52,520,259 $ 50,845,038 Liabilities: Deposits: Non-interest-bearing demand deposits $ 14,441,820 $ 14,926,094 Interest-bearing deposits 28,280,928 26,994,474 Total deposits 42,722,748 41,920,568 Federal funds purchased 21,975 14,200 Repurchase agreements 4,342,941 4,127,188 Junior subordinated deferrable interest debentures, net of unamortized issuance costs 123,184 123,127 Subordinated notes, net of unamortized issuance costs 99,648 99,491 Accrued interest payable and other liabilities 1,311,175 844,017 Total liabilities 48,621,671 47,128,591 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 in 2024 and 2023 145,452 145,452 Common stock, par value $ 0.01 per share; 210,000,000 shares authorized; 64,404,582 shares issued in both 2024 and 2023 644 644 Additional paid-in capital 1,075,572 1,055,809 Retained earnings 3,951,482 3,657,688 Accumulated other comprehensive income (loss), net of tax ( 1,252,004 ) ( 1,119,219 ) Treasury stock, at cost; 207,150 shares in 2024 and 219,295 in 2023 ( 22,558 ) ( 23,927 ) Total shareholders’ equity 3,898,588 3,716,447 Total liabilities and shareholders’ equity $ 52,520,259 $ 50,845,038 See accompanying Notes to Consolidated Financial Statements.
  • Consolidated Statements of Income (Dollars in thousands, except per share amounts) Year Ended December 31, 2024 2023 2022 Interest income: Loans, including fees $ 1,375,442 $ 1,189,377 $ 770,391 Securities: Taxable 396,224 406,289 249,797 Tax-exempt 218,177 240,131 237,626 Interest-bearing deposits 397,414 376,010 216,367 Federal funds sold 270 1,288 948 Resell agreements 3,110 4,621 592 Total interest income 2,390,637 2,217,716 1,475,721 Interest expense: Deposits 629,107 508,255 140,476 Federal funds purchased 1,556 1,524 690 Repurchase agreements 141,833 135,969 34,443 Junior subordinated deferrable interest debentures 8,872 8,647 4,172 Subordinated notes 4,657 4,657 4,657 Total interest expense 786,025 659,052 184,438 Net interest income 1,604,612 1,558,664 1,291,283 Credit loss expense 64,985 46,171 3,000 Net interest income after credit loss expense 1,539,627 1,512,493 1,288,283 Non-interest income: Trust and investment management fees 165,270 153,315 154,679 Service charges on deposit accounts 106,230 93,504 91,891 Insurance commissions and fees 61,269 58,271 53,210 Interchange and card transaction fees 21,017 19,419 18,231 Other charges, commissions and fees 53,348 49,026 41,590 Net gain (loss) on securities transactions ( 96 ) 66 — Other 52,060 54,941 45,217 Total non-interest income 459,098 428,542 404,818 Non-interest expense: Salaries and wages 621,394 547,718 492,096 Employee benefits 122,446 115,306 88,608 Net occupancy 128,751 124,396 112,495 Technology, furniture and equipment 148,487 135,286 120,771 Deposit insurance 37,269 76,589 15,603 Other 244,411 229,367 194,701 Total non-interest expense 1,302,758 1,228,662 1,024,274 Income before income taxes 695,967 712,373 668,827 Income taxes 113,425 114,400 89,677 Net income 582,542 597,973 579,150 Preferred stock dividends 6,675 6,675 6,675 Net income available to common shareholders $ 575,867 $ 591,298 $ 572,475 Earnings per common share: Basic $ 8.88 $ 9.11 $ 8.84 Diluted 8.87 9.10 8.81 See accompanying Notes to Consolidated Financial Statements.
  • Consolidated Statements of Comprehensive Income (Dollars in thousands) Year Ended December 31, 2024 2023 2022 Net income $ 582,542 $ 597,973 $ 579,150 Other comprehensive income (loss), before tax: Securities available for sale and transferred securities: Change in net unrealized gain/loss during the period ( 171,662 ) 277,926 ( 2,143,567 ) Change in net unrealized gain on securities transferred to held to maturity ( 629 ) ( 649 ) ( 737 ) Reclassification adjustment for net (gains) losses included in net income 96 ( 66 ) — Total securities available for sale and transferred securities ( 172,195 ) 277,211 ( 2,144,304 ) Defined-benefit post-retirement benefit plans: Change in the net actuarial gain/loss 2,439 9,278 ( 5,005 ) Reclassification adjustment for net amortization of actuarial gain/loss included in net income as a component of net periodic cost (benefit) 1,673 3,479 2,964 Total defined-benefit post-retirement benefit plans 4,112 12,757 ( 2,041 ) Other comprehensive income (loss), before tax ( 168,083 ) 289,968 ( 2,146,345 ) Deferred tax expense (benefit) ( 35,298 ) 60,893 ( 450,733 ) Other comprehensive income (loss), net of tax ( 132,785 ) 229,075 ( 1,695,612 ) Comprehensive income (loss) $ 449,757 $ 827,048 $ ( 1,116,462 ) See accompanying Notes to Consolidated Financial Statements.
  • Consolidated Statement of Changes in Shareholders’ Equity (Dollars in thousands, except per share amounts) Preferred Stock Common Stock Additional Paid-In Capital Retained Earnings Accumulated Other Comprehensive Income (Loss), Net of Tax Treasury Stock Total Balance at January 1, 2022 $ 145,452 $ 642 $ 1,009,921 $ 2,956,966 $ 347,318 $ ( 20,744 ) $ 4,439,555 Net income — — — 579,150 — — 579,150 Other comprehensive income, net of tax — — — — ( 1,695,612 ) — ( 1,695,612 ) Stock option exercises/stock unit conversions ( 399,810 shares) — 1 1,513 ( 9,990 ) — 25,135 16,659 Stock-based compensation expense recognized in earnings — — 18,322 — — — 18,322 Purchase of treasury stock ( 31,351 shares) — — — — — ( 4,391 ) ( 4,391 ) Cash dividends – Series B preferred stock (approximately $ 44.50 per share which is equivalent to approximately $ 1.11 per depositary share) — — — ( 6,675 ) — — ( 6,675 ) Cash dividends – common stock ($ 3.24 per share) — — — ( 209,780 ) — — ( 209,780 ) Balance at December 31, 2022 145,452 643 1,029,756 3,309,671 ( 1,348,294 ) — 3,137,228 Net income — — — 597,973 — — 597,973 Other comprehensive income, net of tax — — — — 229,075 — 229,075 Stock option exercises/stock unit conversions ( 267,357 shares) — 1 1,463 ( 10,958 ) — 18,793 9,299 Stock-based compensation expense recognized in earnings — — 24,590 — — — 24,590 Purchase of treasury stock ( 436,765 shares) — — — — — ( 42,720 ) ( 42,720 ) Cash dividends – Series B preferred stock (approximately $ 44.50 per share which is equivalent to approximately $ 1.11 per depositary share) — — — ( 6,675 ) — — ( 6,675 ) Cash dividends – common stock ($ 3.58 per share) — — — ( 232,323 ) — — ( 232,323 ) Balance at December 31, 2023 145,452 644 1,055,809 3,657,688 ( 1,119,219 ) ( 23,927 ) 3,716,447 Net income — — — 582,542 — — 582,542 Other comprehensive income, net of tax — — — — ( 132,785 ) — ( 132,785 ) Stock option exercises/stock unit conversions ( 589,782 shares) — — — ( 39,627 ) — 62,270 22,643 Stock-based compensation expense recognized in earnings — — 19,763 — — — 19,763 Purchase of treasury stock ( 577,637 shares) — — — — — ( 60,901 ) ( 60,901 ) Cash dividends – Series B preferred stock (approximately $ 44.50 per share which is equivalent to approximately $ 1.11 per depositary share) — — — ( 6,675 ) — — ( 6,675 ) Cash dividends – common stock ($ 3.74 per share) — — — ( 242,446 ) — — ( 242,446 ) Balance at December 31, 2024 $ 145,452 $ 644 $ 1,075,572 $ 3,951,482 $ ( 1,252,004 ) $ ( 22,558 ) $ 3,898,588 See accompanying Notes to Consolidated Financial Statements Cullen/Frost Bankers, Inc.
  • Consolidated Statements of Cash Flows (Dollars in thousands) Year Ended December 31, 2024 2023 2022 Operating Activities: Net income $ 582,542 $ 597,973 $ 579,150 Adjustments to reconcile net income to net cash from operating activities: Credit loss expense 64,985 46,171 3,000 Deferred tax expense (benefit) ( 11,600 ) ( 14,829 ) ( 4,918 ) Accretion of loan discounts ( 23,951 ) ( 17,724 ) ( 12,921 ) Securities premium amortization (discount accretion), net 45,213 63,893 97,400 Net (gain) loss on securities transactions 96 ( 66 ) — Depreciation and amortization 82,817 76,442 71,344 Net (gain) loss on sale/exchange/write-down of assets/foreclosed assets ( 141 ) 750 109 Stock-based compensation 19,763 24,590 18,322 Net tax benefit from stock-based compensation 3,795 894 4,602 Earnings on life insurance policies ( 3,745 ) ( 2,944 ) ( 2,096 ) Net change in: Trading account securities ( 3,644 ) ( 2,220 ) ( 716 ) Lease right-of-use assets 25,264 23,573 24,409 Accrued interest receivable and other assets 259,142 ( 232,665 ) ( 116,243 ) Accrued interest payable and other liabilities ( 51,004 ) ( 84,993 ) 61,140 Net cash from operating activities 989,532 478,845 722,582 Investing Activities: Securities held to maturity: Purchases — ( 1,147,624 ) ( 1,424,105 ) Maturities, calls and principal repayments 81,750 162,142 561,388 Securities available for sale: Purchases ( 17,899,779 ) ( 19,124,336 ) ( 22,178,248 ) Sales 123,254 1,904,067 — Maturities, calls and principal repayments 19,600,708 19,103,872 15,683,097 Proceeds from sale of loans 3,323 15,851 2,365 Net change in loans ( 1,966,111 ) ( 1,701,895 ) ( 824,021 ) Net cash paid in insurance agency asset acquisitions ( 703 ) — — Benefits received on life insurance policies 1,823 1,937 2,047 Proceeds from sales of premises and equipment 25 1,282 63 Purchases of premises and equipment ( 127,776 ) ( 158,630 ) ( 102,501 ) Proceeds from sales of repossessed properties 2,607 583 2,585 Net cash from investing activities ( 180,879 ) ( 942,751 ) ( 8,277,330 ) Financing Activities: Net change in deposits 802,180 ( 2,033,628 ) 1,258,500 Net change in short-term borrowings 223,528 ( 570,903 ) 1,945,567 Proceeds from stock option exercises 22,643 9,299 16,659 Purchase of treasury stock ( 60,901 ) ( 42,720 ) ( 4,391 ) Cash dividends paid on preferred stock ( 6,675 ) ( 6,675 ) ( 6,675 ) Cash dividends paid on common stock ( 242,446 ) ( 232,323 ) ( 209,780 ) Net cash from financing activities 738,329 ( 2,876,950 ) 2,999,880 Net change in cash and cash equivalents 1,546,982 ( 3,340,856 ) ( 4,554,868 ) Cash and cash equivalents at beginning of year 8,687,276 12,028,132 16,583,000 Cash and cash equivalents at end of year $ 10,234,258 $ 8,687,276 $ 12,028,132 See accompanying Notes to Consolidated Financial Statements.
  • As of December 31, 2024 and 2023, we had $ 350 thousand and $ 8.6 million in cash collateral on deposit with other financial institution counterparties to interest rate swap transactions.
  • Additional cash flow information was as follows: Year Ended December 31, 2024 2023 2022 Cash paid for interest $ 788,377 $ 616,274 $ 169,020 Cash paid for income tax 122,000 118,000 100,000 Significant non-cash transactions: Unsettled securities transactions 501,587 1,452 94,884 Loans foreclosed and transferred to other real estate owned and foreclosed assets 19,297 — 239 Right-of-use lease assets obtained in exchange for lessee operating lease liabilities 15,044 15,259 31,787 Repurchase/Resell Agreements.
  • However, renewal options related to our regional headquarters facilities or operations centers are evaluated on a case-by-case basis, typically in advance of such time frame.
  • Foreclosed assets are included in other assets in the accompanying consolidated balance sheets and totaled $ 14.1 million and $ 725 thousand at December 31, 2024 and 2023.
  • There were no write-downs of foreclosed assets in 2024, 2023, or 2022.
  • A summary of the amortized cost, fair value and allowance for credit losses related to securities held to maturity as of December 31, 2024 and 2023 is presented below.
  • Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Allowance for Credit Losses Net Carrying Amount December 31, 2024 Residential mortgage-backed securities $ 1,193,840 $ — $ 71,076 $ 1,122,764 $ — $ 1,193,840 States and political subdivisions 2,338,745 13,954 116,414 2,236,285 ( 310 ) 2,338,435 Other 1,500 — 3 1,497 — 1,500 Total $ 3,534,085 $ 13,954 $ 187,493 $ 3,360,546 $ ( 310 ) $ 3,533,775 December 31, 2023 Residential mortgage-backed securities $ 1,250,431 $ 76 $ 54,175 $ 1,196,332 $ — $ 1,250,431 States and political subdivisions 2,367,807 42,990 76,540 2,334,257 ( 310 ) 2,367,497 Other 1,500 — 45 1,455 — 1,500 Total $ 3,619,738 $ 43,066 $ 130,760 $ 3,532,044 $ ( 310 ) $ 3,619,428 All mortgage-backed securities included in the above table were issued by U.S. government agencies and corporations.
  • The carrying value of held-to-maturity securities pledged to secure public funds, trust deposits, repurchase agreements and for other purposes, as required or permitted by law was $ 1.4 billion and $ 1.0 billion at December 31, 2024 and 2023, respectively.
  • Accrued interest receivable on held-to-maturity securities totaled $ 37.8 million and $ 40.9 million at December 31, 2024 and 2023, respectively and is included in accrued interest receivable and other assets in the accompanying consolidated balance sheets.
  • From time to time, we have reclassified certain securities from available for sale to held to maturity.
  • The net unamortized, unrealized gain remaining on securities transferred in years prior to 2020 included in accumulated other comprehensive income in the accompanying balance sheet totaled $ 522 thousand ($ 412 thousand, net of tax) at December 31, 2024 and $ 1.2 million ($ 909 thousand, net of tax) at December 31, 2023.
  • This amount will be amortized out of accumulated other comprehensive income over the remaining life of the underlying securities as an adjustment of the yield on those securities.
  • The following table summarizes Moody's and/or Standard & Poor's bond ratings for our portfolio of held-to-maturity securities issued by States and political subdivisions and other securities as of December 31, 2024: States and Political Subdivisions Not Guaranteed or Pre-Refunded Guaranteed by the Texas PSF Guaranteed by Third Party Pre-Refunded Total Other Securities Aaa/AAA $ 301,310 $ 1,504,951 $ 13,640 $ 14,531 $ 1,834,432 $ — Aa/AA 498,198 — 6,115 — 504,313 — Not rated — — — — — 1,500 Total $ 799,508 $ 1,504,951 $ 19,755 $ 14,531 $ 2,338,745 $ 1,500 Historical loss rates associated with securities having similar grades as those in our portfolio have generally not been significant.
  • Furthermore, as of December 31, 2024, there were no past due principal or interest payments associated with these securities.
  • The following table details activity in the allowance for credit losses on held-to-maturity securities. 2024 2023 2022 Beginning balance $ 310 $ 158 $ 158 Credit loss expense (benefit) — 152 — Ending balance $ 310 $ 310 $ 158 Securities - Available for Sale.
  • A summary of the amortized cost, fair value and allowance for credit losses related to securities available for sale as of December 31, 2024 and 2023 is presented below.
  • Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Allowance for Credit Losses Estimated Fair Value December 31, 2024 U.S.
  • Treasury $ 3,692,215 $ — $ 249,895 $ — $ 3,442,320 Residential mortgage-backed securities 8,024,704 2,352 1,029,154 — 6,997,902 States and political subdivisions 4,842,060 2,493 284,329 — 4,560,224 Other 43,179 — — — 43,179 Total $ 16,602,158 $ 4,845 $ 1,563,378 $ — $ 15,043,625 December 31, 2023 U.S.
  • Treasury $ 5,212,894 $ — $ 285,305 $ — $ 4,927,589 Residential mortgage-backed securities 7,463,954 9,066 876,338 — 6,596,682 States and political subdivisions 5,245,721 5,762 240,152 — 5,011,331 Other 42,769 — — — 42,769 Total $ 17,965,338 $ 14,828 $ 1,401,795 $ — $ 16,578,371 All mortgage-backed securities included in the above table were issued by U.S. government agencies and corporations.
  • At December 31, 2024 all of the securities in our available for sale municipal bond portfolio were issued by the State of Texas or political subdivisions or agencies within the State of Texas, of which approximately 70.6 % are either guaranteed by the PSF or have been pre-refunded.
  • The carrying value of available-for-sale securities pledged to secure public funds, trust deposits, repurchase agreements and for other purposes, as required or permitted by law was $ 6.2 billion and $ 6.1 billion at December 31, 2024 and 2023, respectively.
  • Accrued interest receivable on available-for-sale securities totaled $ 104.9 million and $ 114.9 million at December 31, 2024 and 2023, respectively, and is included in accrued interest receivable and other assets in the accompanying consolidated balance sheets.
  • The table below summarizes, as of December 31, 2024, securities available for sale in an unrealized loss position for which an allowance for credit losses has not been recorded, aggregated by type of security and length of time in a continuous unrealized loss position.
  • Treasury $ — $ — $ 3,442,320 $ 249,895 $ 3,442,320 $ 249,895 Residential mortgage-backed securities 1,289,852 26,420 4,725,498 1,002,734 6,015,350 1,029,154 States and political subdivisions 836,599 6,961 3,490,644 277,368 4,327,243 284,329 Total $ 2,126,451 $ 33,381 $ 11,658,462 $ 1,529,997 $ 13,784,913 $ 1,563,378 As of December 31, 2024, no allowance for credit losses has been recognized on available for sale securities in an unrealized loss position as management does not believe any of the securities are impaired due to reasons of credit quality.
  • The following table summarizes the maturity distribution schedule of securities held to maturity and securities available for sale as of December 31, 2024.

and 181 more.

Sentence-level comparison of Item 1A in the two most recent 10-Ks (FY2024 ↗, FY2025 ↗). A reworded sentence counts as one dropped and one added, so heavy edits read as low “kept”. Headings and page furniture are stripped; nothing is summarised by a model.

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