Cullen/Frost Bankers, Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Cullen/Frost Bankers, Inc. has filed its Q1 2024 10-Q report.</b>

AI Summary

CULLEN/FROST BANKERS, INC. (CFR-PB) filed a Quarterly Report (10-Q) with the SEC on April 25, 2024. Cullen/Frost Bankers, Inc. filed a 10-Q report for the period ending March 31, 2024. The filing covers the first quarter of 2024. The company's fiscal year ends on December 31. Cullen/Frost Bankers, Inc. is classified under SIC code 6021 (National Commercial Banks). The company is incorporated in Texas.

Why It Matters

For investors and stakeholders tracking CULLEN/FROST BANKERS, INC., this filing contains several important signals. This 10-Q filing provides investors with an update on the company's financial performance and position as of the end of the first quarter of 2024. As a publicly traded entity, these regular filings are crucial for transparency and allow stakeholders to assess the bank's operational health and strategic direction.

Risk Assessment

Risk Level: low — CULLEN/FROST BANKERS, INC. shows low risk based on this filing. The filing is a routine 10-Q, indicating no immediate or significant new risks have emerged that would elevate the risk level beyond 'low' based solely on this document type.

Analyst Insight

Review the detailed financial statements and management's discussion and analysis within the 10-Q to understand the company's performance drivers and outlook for the remainder of 2024.

Key Numbers

• 2024-03-31 — Reporting Period End Date (Conformed period of report)
• 2024-04-25 — Filing Date (Filed as of date)
• 6021 — SIC Code (Standard Industrial Classification)

Key Players & Entities

• CULLEN/FROST BANKERS, INC. (company) — Filer name
• 20240331 (date) — Conformed period of report
• 20240425 (date) — Filed as of date
• 6021 (industry_code) — Standard Industrial Classification
• TX (location) — State of incorporation
• SAN ANTONIO (location) — Business address city
• 210-220-4011 (phone) — Business phone

FAQ

Industry Context

Cullen/Frost Bankers, Inc. operates within the national commercial banking industry, a sector characterized by interest rate sensitivity, regulatory oversight, and economic cycles.

Regulatory Implications

As a national commercial bank, Cullen/Frost Bankers, Inc. is subject to regulations from federal and state authorities, including the Federal Reserve and Texas Department of Banking, governing capital requirements, lending practices, and consumer protection.

What Investors Should Do

1. Analyze the balance sheet and income statement for changes in key financial metrics compared to prior periods.
2. Review the Management's Discussion and Analysis (MD&A) section for insights into operational performance and strategic initiatives.
3. Identify any new risk factors or updates to existing ones disclosed in the filing.

Key Dates

• 2024-03-31: Quarterly Period End — End of the reporting period for the 10-Q filing.
• 2024-04-25: Filing Date — Date the 10-Q report was officially filed with the SEC.

Year-Over-Year Comparison

This is the first 10-Q filing for the fiscal year 2024, providing the initial quarterly financial update.

Filing Documents

• cfr-20240331.htm (10-Q) — 3145KB
• exhibit101-formofrestricte.htm (EX-10.1) — 23KB
• exhibit102-formofdeferreds.htm (EX-10.2) — 16KB
• exhibit3111q24.htm (EX-31.1) — 9KB
• exhibit3121q24.htm (EX-31.2) — 9KB
• exhibit3211q24.htm (EX-32.1) — 5KB
• exhibit3221q24.htm (EX-32.2) — 5KB
• 0000039263-24-000039.txt (&nbsp;) — 18677KB
• cfr-20240331.xsd (EX-101.SCH) — 101KB
• cfr-20240331_cal.xml (EX-101.CAL) — 140KB
• cfr-20240331_def.xml (EX-101.DEF) — 696KB
• cfr-20240331_lab.xml (EX-101.LAB) — 1078KB
• cfr-20240331_pre.xml (EX-101.PRE) — 936KB
• cfr-20240331_htm.xml (XML) — 4129KB

- Financial Information

Part I - Financial Information

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) Consolidated Balance Sheets 3 Consolidated Statements of Income 4 Consolidated Statements of Comprehensive Income (Loss) 5 Consolidated Statements of Changes in Shareholders' Equity 6 Consolidated Statements of Cash Flows 7

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 8

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 35

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 55

Controls and Procedures

Item 4. Controls and Procedures 56

- Other Information

Part II - Other Information

Legal Proceedings

Item 1. Legal Proceedings 57

Risk Factors

Item 1A. Risk Factors 57

Unregistered Sales of Equity Securities , Use of Proceeds , and Issuer Purchases of Equity Securities

Item 2. Unregistered Sales of Equity Securities , Use of Proceeds , and Issuer Purchases of Equity Securities 57

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 57

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 57

Other Information

Item 5. Other Information 57

Exhibits

Item 6. Exhibits 58

Signatures

Signatures 59 2 Table of Contents

Financial Information

Part I. Financial Information

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) Cullen/Frost Bankers, Inc. Consolidated Balance Sheets (Dollars in thousands, except per share amounts) March 31, 2024 December 31, 2023 Assets: Cash and due from banks $ 511,173 $ 617,569 Interest-bearing deposits 7,868,694 7,985,057 Resell agreements 84,650 84,650 Total cash and cash equivalents 8,464,517 8,687,276 Securities held to maturity, net of allowance for credit losses of $ 310 at both March 31, 2024 and December 31, 2023 3,600,729 3,619,428 Securities available for sale, at estimated fair value 15,181,583 16,578,371 Trading account securities 39,645 31,717 Loans, net of unearned discounts 19,388,206 18,824,251 Less: Allowance for credit losses on loans ( 250,297 ) ( 245,996 ) Net loans 19,137,909 18,578,255 Premises and equipment, net 1,210,897 1,190,033 Accrued interest receivable and other assets 1,870,144 2,159,958 Total assets $ 49,505,424 $ 50,845,038 Liabilities: Deposits: Non-interest-bearing demand deposits $ 13,754,985 $ 14,926,094 Interest-bearing deposits 27,051,501 26,994,474 Total deposits 40,806,486 41,920,568 Federal funds purchased 41,200 14,200 Repurchase agreements 3,943,207 4,127,188 Junior subordinated deferrable interest debentures, net of unamortized issuance costs 123,141 123,127 Subordinated notes, net of unamortized issuance costs 99,530 99,491 Accrued interest payable and other liabilities 853,680 844,017 Total liabilities 45,867,244 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 at March 31, 2024 and December 31, 2023 145,452 145,452 Common stock, par value $ 0.01 per share; 210,000,000 shares authorized; 64,404,582 shares issued at both March 31, 2024 and December 31, 2023 644 644 Additional paid-in capital 1,059,547 1,055,809 Retained earnings 3,726,559 3,657,688 Accumulated other comprehensive income (loss), net of tax

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Table amounts in thousands, except for share and per share amounts) Note 1 - Significant Accounting Policies Nature of Operations. Cullen/Frost Bankers, Inc. ("Cullen/Frost") is a financial holding company and a bank holding company headquartered in San Antonio, Texas that provides, through its subsidiaries, a broad array of products and services throughout numerous Texas markets. The terms "Cullen/Frost," "the Corporation," "we," "us" and "our" mean Cullen/Frost Bankers, Inc., and its subsidiaries, when appropriate. In addition to general commercial and consumer banking, other products and services offered include trust and investment management, insurance, brokerage, mutual funds, leasing, treasury management, capital markets advisory and item processing. Basis of Presentation. The consolidated financial statements in this Quarterly Report on Form 10-Q include the accounts of Cullen/Frost and all other entities in which Cullen/Frost has a controlling financial interest. All significant intercompany balances and transactions have been eliminated in consolidation. The accounting and financial reporting policies we follow conform, in all material respects, to accounting principles generally accepted in the United States and to general practices within the financial services industry. The consolidated financial statements in this Quarterly Report on Form 10-Q have not been audited by an independent registered public accounting firm, but in the opinion of management, reflect all adjustments necessary for a fair presentation of our financial position and results of operations. All such adjustments were of a normal and recurring nature. The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q adopted by the Securities and Exchange Commission ("SEC"). Accordingly, the fin

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