CULLEN/FROST Records fourth QUARTER AS WELL AS 2022 ANNUAL OUTCOMES

Board proclaims very first quarter returns on usual and also participating preferred stock

SAN ANTONIO, Jan. 26, 2023/ PRNewswire/– Cullen/Frost Bankers, Inc. (NYSE: CFR) today reported 4th quarter and also complete year results for 2022. Earnings offered to usual investors for the 4th quarter of 2022 was $ 189.5 million, a rise of 90.7 percent contrasted to $ 99.4 million reported for the 4th quarter of 2021. On a per-share basis, the firm reported earnings offered to usual investors of $ 2.91 per weakened usual share for the 4th quarter of 2022, contrasted to $ 1.54 per weakened usual share for the 4th quarter of 2021. For the 4th quarter of 2022, returns typically possessions and also ordinary usual equity were 1.44 percent and also 27.16 percent, specifically, contrasted to 0.81 percent and also 9.26 percent for the very same duration in 2021.

The firm likewise reported 2022 yearly earnings offered to usual investors of $ 572.5 million, a rise of 31.3 percent contrasted to 2021 revenues offered to usual investors of $ 435.9 million On a per-share basis, 2022 revenues were $ 8.81 per weakened usual share contrasted to $ 6.76 per weakened usual share reported in 2021. For the year 2022, returns typically possessions and also ordinary usual equity were 1.11 percent and also 16.86 percent specifically, contrasted to 0.95 percent and also 10.35 percent reported in 2021.

“ Kept in mind monetary information for the 4th quarter:

• The Usual Equity Rate 1, Rate 1 and also Complete Risk-Based Resources Ratios for Cullen/Frost at the end of the 4th quarter of 2022 were 12.85 percent, 13.35 percent, and also 14.84 percent, specifically. Present funding proportions remain to remain in extra of well-capitalized degrees and also surpass Basel III needs.
• Web rate of interest earnings on a tax-equivalent basis was $ 423.9 million for the 4th quarter of 2022, a rise of 60.5 percent contrasted to the $ 264.0 million reported for the 4th quarter of 2021. The internet rate of interest margin was 3.31 percent for the 4th quarter of 2022 contrasted to 2.31 percent for the 4th quarter of 2021 and also 3.01 percent for the 3rd quarter of 2022.
• Non-interest earnings for the 4th quarter of 2022 was $ 105.7 million, down $ 3.4 million, or 3.1 percent, from the $ 109.1 million reported a year previously. Various other non-interest earnings reduced $ 5.7 million, or 25.8 percent, contrasted to the 4th quarter of 2021. The contrast is affected by a $ 9.7 million gain on the exchange of a branch center tape-recorded in the 4th quarter of 2021. That decline was partially balanced out by a $ 5.1 million circulation got from an SBIC fund financial investment in the 4th quarter of 2022. Trust fund and also financial investment administration costs enhanced by $ 1.3 million, or 3.3 percent, contrasted to the 4th quarter of 2021. The boost in depend on and also financial investment administration costs was largely the outcome of a $ 1.5 million boost in estate costs, a $ 956,000 boost in realty costs and also a $ 605,000 boost in oil and also gas costs, partially balanced out by a $ 1.9 million decline in financial investment administration costs. Various other costs, compensations and also costs enhanced $ 874,000, or 8.6%, contrasted to the 4th quarter of 2021. The boost was largely associated with rises in earnings from the positioning of cash market accounts (up $ 1.4 million).
• Non-interest cost for the 4th quarter of 2022 was $ 281.3 million, up $ 42.7 million, or 17.9 percent, contrasted to the $ 238.6 million reported for the 4th quarter of 2021. Wages and also salaries cost enhanced by $ 31.2 million, or 29.5 percent, contrasted to the 4th quarter of 2021. The boost in wages and also salaries was largely associated with rises in wages because of yearly advantage and also market enhances in addition to the execution of a $ 20 per hr base pay in December, 2021. Wages and also salaries were likewise affected by our financial investments in natural growth in the Houston and also Dallas markets, in addition to prep work for our mortgage item offering, and also enhances in reward and also supply settlement. Fringe benefit cost enhanced by $ 2.8 million, or 14.5 percent, compared to the 4th quarter of 2021. The boost in fringe benefit cost was affected by rises in head count and also wage cost and also was likewise influenced by a $ 1.5 million boost in optional advantage strategy cost. Various other non-interest cost enhanced by $ 4.4 million, or 8.0 percent, contrasted to the 4th quarter of 2021, affected by a $ 4.6 million boost in fraudulence losses and also a $ 4.0 million amassing pertaining to a permit settlement. Innovation, furnishings and also devices cost was up $ 2.7 million or 9.5 percent contrasted to the 4th quarter of 2021. The boost was largely associated with rises in cloud solutions cost (up $ 1.1 million), software application upkeep (up $ 1.0 million), and also solution agreements (up $ 581,000).
• For the 4th quarter of 2022, the firm reported a credit history loss cost of $ 3.0 million, and also reported internet charge-offs of $ 3.8 million For the 4th quarter of 2021, the firm did not report a credit history loss cost and also reported internet charge-offs of $ 2.8 million The allocation for credit scores losses on car loans as a percent of complete car loans was 1.33 percent at December 31, 2022, contrasted to 1.38 percent at September 30, 2022 and also 1.52 percent at year-end 2021. Non-accrual car loans were $ 37.8 million at year end, contrasted to $ 29.9 million the previous quarter, and also $ 53.7 million at year-end 2021.

The Cullen/Frost board stated a first-quarter cash money returns of $ 0.87 per usual share, payable March 15, 2023 to investors of document on February 28 of this year. The board of supervisors likewise stated a money returns of $ 11.125 per share of Collection B Participating Preferred Stock (or $ 0.278125 per depositary share). The depositary shares standing for the Collection B Participating preferred stock are traded on the NYSE under the icon “CFR PrB.” The Collection B Participating preferred stock returns is payable on March 15, 2023, to investors of document on February 28 of this year.

Cullen/Frost Bankers, Inc. will certainly hold a teleconference on Thursday, January 26, 2023, at 1:00 p.m. Central Time (CT) to review the outcomes for the quarter and also the year. The media and also various other interested celebrations are welcomed to access the telephone call in a “pay attention just” setting at 877-709-8150. Playback of the teleconference will certainly be offered after
5:00 p.m. CT on the day of the telephone call till twelve o’clock at night Sunday, January 29 at 877-660-6853, with the Meeting ID # of 13735488. A replay of the telephone call will certainly likewise be offered by webcast at the link listed here after 5:00 p.m. CT on the day of the telephone call.

Cullen/Frost capitalist relationships internet site: https://investor.frostbank.com/

Cullen/Frost Bankers, Inc. (NYSE: CFR) is a monetary holding firm, headquartered in San Antonio, with $ 52.9 billion in possessions at December 31, 2022. Among the 50 biggest united state financial institutions, Frost supplies a large range of financial, financial investments and also insurance coverage solutions to organizations and also people throughout Texas in the Austin, Corpus Christi, Dallas, Ft Well Worth, Houston, Permian Container, Rio Grande Valley and also San Antonio areas. Established in 1868, Frost has actually assisted customers with their monetary requirements throughout 3 centuries. Added info is offered at frostbank.com.

Positive Declarations and also Variables that Can Impact Future Outcomes

Specific declarations consisted of in this Yearly Record on Type 10-K that are not declarations of historic truth comprise positive declarations within the definition of the Exclusive Stocks Lawsuits Reform Act of 1995 (the “Act”), regardless of that such declarations are not particularly recognized because of this. Additionally, specific declarations might be consisted of in our future filings with the SEC, in news release, and also in dental and also written declarations made by us or with our authorization that are not declarations of historic truth and also comprise positive declarations within the definition of the Act. Instances of positive declarations consist of, yet are not restricted to: (i) forecasts of incomes, expenditures, earnings or loss, revenues or loss per share, the repayment or nonpayment of rewards, funding framework and also various other monetary things; (ii) declarations of strategies, purposes and also assumptions of Cullen/Frost or its administration or Board of Supervisors, consisting of those associating with items, solutions or procedures; (iii) declarations of future financial efficiency; and also (iv) declarations of presumptions underlying such declarations. Words such as “thinks”, “expects”, “anticipates”, “means”, “targeted”, “proceed”, “stay”, “will certainly”, “need to”, “might” and also various other comparable expressions are meant to determine positive declarations yet are not the unique methods of determining such declarations.

Positive declarations include dangers and also unpredictabilities that might create real outcomes to vary materially from those in such declarations. Variables that can create real outcomes to vary from those gone over in the positive declarations consist of, yet are not restricted to:

• The results of and also adjustments in profession and also financial and also monetary plans and also legislations, consisting of the rate of interest plans of the Federal Get Board.
• Rising cost of living, rate of interest, safeties market and also financial variations.
• Regional, local, nationwide and also worldwide financial problems and also the effect they might carry us and also our clients and also our evaluation of that effect.
• Adjustments in the monetary efficiency and/or problem of our debtors.
• Adjustments in the mix of car loan locations, industries and also kinds or the degree of non-performing possessions and also charge-offs.
• Adjustments in price quotes of future credit scores loss book needs based upon the routine testimonial thereof under pertinent regulative and also audit needs.
• Adjustments in our liquidity setting.
• Problems of our a good reputation or various other abstract possessions.
• The prompt advancement and also approval of brand-new product or services and also regarded general worth of these product or services by customers.
• Adjustments in customer investing, loaning and also conserving routines.
• More than anticipated expenses or troubles associated with the assimilation of brand-new items and also industries.
• Technical adjustments.
• The price and also results of cyber occurrences or various other failings, disruptions or safety violations of our systems or those of our clients or third-party suppliers.
• Acquisitions and also assimilation of obtained organizations.
• Adjustments in the dependability of our suppliers, inner control systems or info systems.
• Our capability to raise market share and also control expenditures.
• Our capability to bring in and also maintain certified workers.
• Adjustments in our company, settlement and also advantage strategies.
• The sturdiness of various other banks.
• Volatility and also interruption in nationwide and also worldwide monetary and also product markets.
• Adjustments in the affordable setting in our markets and also amongst financial companies and also various other monetary provider.
• Federal government treatment in the united state monetary system.
• Political instability.
• Disasters or of battle or terrorism.
• The prospective effect of environment adjustment.
• The effect of pandemics, upsurges or any type of various other health-related situation.
• The expenses and also results of lawful and also regulative growths, the resolution of lawful procedures or regulative or various other governmental questions, the outcomes of regulative evaluations or testimonials and also the capability to get needed regulative authorizations.
• The impact of adjustments in legislations and also guidelines (consisting of legislations and also guidelines worrying tax obligations, financial, safeties and also insurance coverage) and also their application with which we and also our subsidiaries should conform.
• The impact of adjustments in audit plans and also methods, as might be embraced by the regulative firms, in addition to the general public Firm Accountancy Oversight Board, the Financial Accountancy Criteria Board and also various other accounting basic setters.
• Our success at taking care of the dangers associated with the foregoing things.

Additionally, monetary markets and also worldwide supply chains might remain to be detrimentally influenced by the present or expected effect of armed forces dispute, consisting of the present Russian intrusion of Ukraine, terrorism or various other geopolitical occasions.

Positive declarations talk just since the day on which such declarations are made. We do not take on any type of commitment to upgrade any type of positive declaration to mirror occasions or scenarios after the day on which such declaration is made, or to mirror the incident of unexpected occasions.

A.B. Mendez
Capitalist Relations
210.220.5234

or

Costs Day
Media Relations
210.220.5427

Resource Cullen/Frost Bankers, Inc.