CFR

EX-99.1

2 a3q26formxex991xpressrelea.htm

EX-99.1 - 3Q26 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

October 29, 2026

CULLEN/FROST REPORTS THIRD QUARTER RESULTS

Board declares fourth quarter dividend on common and preferred stock

SAN ANTONIO -- Cullen/Frost Bankers, Inc. (NYSE:CFR) today reported third quarter 2026 results.

Net income available to common shareholders for the third quarter of 2026 was $178.5 million, compared to $172.7 million for the third quarter of 2025. On a per-share basis, net income available to common shareholders for the third quarter of 2026 was $2.84 per diluted common share, compared to $2.67 per diluted common share reported a year earlier. Returns on average assets and average common equity were 1.31 percent and 16.16 percent, respectively, for the third quarter of 2026, compared to 1.32 percent and 16.72 percent, respectively, for the same period a year earlier.

For the third quarter of 2026, net interest income on a taxable-equivalent basis was $490.8 million, up 5.8 percent compared to the same quarter in 2025. Average loans for the third quarter of 2026 increased $1.9 billion, or 9.0 percent, to $23.4 billion, from the $21.5 billion reported for the third quarter a year earlier, and increased $756.4 million, or 3.3 percent, compared to the second quarter of 2026. Average deposits for the third quarter increased $1.5 billion, or 3.6 percent, to $43.6 billion, compared to the $42.1 billion reported for last year's third quarter, and increased $959.2 million, or 2.3 percent, compared to the second quarter of 2026.

"During the third quarter, Frost Bankers continued their outstanding execution of our organic growth strategy, and as a result, we saw another quarter of accelerating growth in average loan and deposit volumes," said Cullen/Frost Chairman and CEO, Phil Green.

"As more and more people and businesses continue to move into Texas from other parts of the country, we see great opportunity to continue extending the Frost experience to more new Texans. That includes retail customers and businesses new to the state alike. During the third quarter we kept up a strong pace of new customer additions, growing the overall banking customer base at a five percent yearly rate. In our Wealth Management business, we grew managed customer accounts by more than five percent compared to a year ago. And our Frost Insurance Agency increased commercial customers by over ten percent compared to the third quarter of 2025.

"I want to recognize the outstanding focus and execution of our employees throughout the state as they meet the challenge of competing and winning against competitors old and new."

For the first nine months of 2026, net income available to common shareholders was $518.2 million, up 8.6 percent compared to $477.3 million for the first nine months of 2025. On a per-share basis, net income available to common shareholders for the first nine months of 2026 was $8.19, up 11.3 percent compared to $7.36 in the year-earlier period. Returns on average assets and average common equity for the first nine months of 2026 were 1.31 percent and 15.57 percent, respectively, compared to 1.24 percent and 15.98 percent, respectively, for the same period in 2025.

Noted financial data for the third quarter of 2026 follows:

•The Common Equity Tier 1, Tier 1 and Total Risk-Based Capital Ratios at the end of the third quarter of 2026 were 13.76 percent, 14.18 percent and 15.50 percent, respectively, and continue to be in excess of well-capitalized levels and exceed Basel III minimum requirements.

•During the third quarter, our base of customer households continued to grow. Total households, including consumer and commercial customers, grew by 5.4 percent from September, 2025 to September, 2026.

•Net interest income on a taxable-equivalent basis was $490.8 million for the third quarter of 2026, an increase of 5.8 percent, compared to $463.7 million for the third quarter of 2025. Net interest margin was 3.78 percent for the third quarter of 2026 compared to 3.69 percent for the third quarter of 2025 and 3.75 percent for the second quarter of 2026.

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•Non-interest income for the third quarter of 2026 totaled $136.0 million, an increase of $10.3 million, or 8.2 percent, from the $125.6 million reported for the third quarter of 2025. Trust and investment management fees increased $4.6 million, or 10.3 percent, compared to the third quarter of 2025. The increase in trust and investment management fees during the third quarter was primarily related to increases in investment management fees (up $3.6 million) and oil and gas fees (up $1.6 million). Other non-interest income increased $7.4 million, or 54.5 percent, compared to the third quarter of 2025. The increase during the third quarter was primarily related to $7.6 million of gains on the sale of excess bank properties.

•Non-in