Cullen/Frost Bankers (CFR) investor relations material

Executive summary

• Q3 net income available to common shareholders was $178.5M, up 3.4% YoY; diluted EPS was $2.84 vs. $2.67, up 6.4%.

• 9M net income available to common shareholders rose 8.6% YoY to $518.2M; diluted EPS increased 11.3% to $8.19.

• Average loans were $23.4B, up 9.0% YoY; average deposits were $43.6B, up 3.6%.

Financial highlights

• Q3 reported net interest income was $467.9M, up 5.9% YoY; taxable-equivalent net interest income was $490.8M, up 5.8%.

• Q3 non-interest income rose 8.2% to $136.0M; non-interest expense increased 7.0% to $377.2M.

• Q3 net income was $180.2M versus $174.4M a year earlier; net income available to common shareholders was $178.5M versus $172.7M.

Outlook and guidance

• FY 2026 net interest income growth guidance rose to 5%-5.5% from 4.75%-5.25%; loan growth guidance increased to 8%-8.5% from 7%-8%.

• FY deposit growth guidance remains 2%-3%; non-interest income growth guidance rose to 8.5%-9% from 7.5%-8.5%, while expense growth is expected near 5%.

• FY 2026 outlook assumes one 25-bp Fed funds hike in December; NIM improvement is expected at 10-13 bps over FY 2025's 3.66%.

• FY net charge-offs are expected at 15-20 bps of average loans; effective tax rate guidance remains 15.5%-16%.