Cullen/Frost Bankers, Inc. (NYSE: CFR)

Cullen/Frost Bankers, Inc. is a financial holding company and bank holding company headquartered in San Antonio, Texas that provides a broad array of products and services throughout numerous Texas markets. The company offers commercial and consumer banking services, as well as trust and investment management, insurance, brokerage, mutual funds, leasing, treasury management, capital markets advisory, and item processing services. At December 31, 2025, Cullen/Frost had consolidated total assets of $53.0 billion and was one of the largest independent bank holding companies headquartered in the State of Texas. The company operates as a locally-oriented, community-based financial services organization augmented by experienced, centralized support in select critical areas. Cullen/Frost serves a wide variety of industries including energy, manufacturing, services, construction, retail, telecommunications, healthcare, military, and transportation, and maintains a similarly diverse customer base without dependence on any single industry or customer.

Cullen/Frost generates revenue primarily through dividends from its subsidiaries, with Frost Bank serving as the principal operating and banking subsidiary. Revenue streams include interest income from loans and investments, fees from treasury management services, merchant services, capital markets activities, trust services, insurance brokerage, and investment management. The company also earns income from consumer banking products such as home equity lines of credit, residential mortgages, overdraft facilities, and other consumer loans. Additional revenue is derived from correspondent banking, global trade services, and fees associated with Frost Connect, its secure digital banking platform offering account management, fund transfers, bill payments, mobile check deposits, payroll services, cash management, and financial reporting tools for businesses.

The company operates through the following segments: Banking and Frost Wealth Advisors.

• Banking: This segment encompasses the commercial and consumer banking operations conducted primarily through Frost Bank, which operates approximately 204 financial centers across Texas in the Austin, Dallas, Fort Worth, Gulf Coast, Houston, Permian Basin, and San Antonio regions. Frost Bank provides commercial banking services to corporations and business customers, including traditional business checking and savings accounts, loans for industrial and commercial properties, equipment financing, inventory and accounts receivable financing, acquisition financing, and commercial leases. The segment also offers treasury management services via Frost Connect, merchant services through integrated point-of-sale systems, correspondent banking for approximately 178 financial institutions, capital markets division services supporting fixed-income institutional investors and public sector customers, global trade services for international trade facilitation, consumer services including home equity lines of credit, residential mortgages, overdraft facilities, and consumer loans, international banking services for customers in or dealing with Mexico, and trust services managing estates, personal trusts, investment accounts for individuals, employee benefit plans, and charitable foundations with $51.0 billion in estimated fair value of trust assets as of December 31, 2025.

• Frost Wealth Advisors: This segment comprises the wealth management subsidiaries of Frost Bank, including Frost Insurance Agency, Frost Brokerage Services, Inc., Frost Investment Advisors, LLC, Frost Investment Services, LLC, and Tri-Frost Corporation. Frost Insurance Agency provides property and casualty insurance and employee benefits plans for businesses, as well as life, disability, long-term care, property and real estate, automobile, and valuables insurance for individuals. Frost Brokerage Services, Inc. is a fully disclosed introducing broker-dealer registered under the Securities Exchange Act of 1934 that performs transactions related to the sale and purchase of securities without holding customer accounts or maintaining custody of customer assets. Frost Investment Advisors, LLC and Frost Investment Services, LLC are registered investment advisors providing investment management services to Frost-managed mutual funds, institutions, and individuals. Tri-Frost Corporation primarily holds securities and receives cash flows related to principal and interest on securities until maturity. These subsidiaries collectively deliver brokerage, insurance, and investment management services under the Frost Wealth Advisors brand.

Cullen/Frost holds a strong position as one of the largest independent bank holding companies headquartered in Texas, competing with regional and national banks, savings and loan associations, credit unions, consumer finance companies, securities firms, private equity and debt funds, insurance companies, commercial finance and leasing firms, full-service and discount brokerage firms, and fintech/wealthtech providers. The company differentiates itself through its community-based approach, long-term customer relationships, high ethical standards, and ability to offer products typically found at larger money-center institutions while maintaining local market responsiveness. Its competitive advantages include a diversified business model, centralized support in critical areas, regional management and advisory boards composed of local business leaders, and a focus on growing fee-based income and internal expansion.

Cullen/Frost serves a diverse customer base spanning corporations, business customers, individual consumers, government entities, non-profit organizations, and public sector customers across industries such as energy, manufacturing, services, construction, retail, telecommunications, healthcare, military, and transportation. The company’s trust and wealth management divisions serve individuals, employee benefit plans, and charitable foundations, while its brokerage and insurance subsidiaries cater to both retail and institutional clients seeking securities transactions and risk management solutions. Cullen/Frost does not rely on any single industry or customer, reflecting its broadly diversified market presence throughout Texas.