Cullen/Frost Bankers, Inc. Files Q2 2024 10-Q

TL;DR

Cullen/Frost Bankers (CFR) filed their Q2 10-Q. Financials are in.

AI Summary

Cullen/Frost Bankers, Inc. filed its 10-Q for the period ending June 30, 2024, reporting on its financial performance. The company's fiscal year ends on December 31st, and this filing covers the second quarter of 2024. Key financial data and disclosures relevant to investors are included in this report.

Why It Matters

This filing provides investors with crucial financial updates for Cullen/Frost Bankers, Inc., detailing their performance and financial position for the second quarter of 2024.

Risk Assessment

Risk Level: low — This is a routine quarterly filing providing financial information, not indicating immediate or significant new risks.

Key Numbers

• 20240630 — Reporting Period End Date (Indicates the end of the financial quarter being reported.)
• 20240725 — Filing Date (Shows when the company submitted this report to the SEC.)
• 1231 — Fiscal Year End (Specifies the end of the company's annual financial reporting cycle.)

Key Players & Entities

• CULLEN/FROST BANKERS, INC. (company) — Filer of the 10-Q
• 20240630 (date) — End of the reporting period
• 20240725 (date) — Date of filing
• SAN ANTONIO (location) — City of business address
• TX (location) — State of incorporation and business address

FAQ

Filing Documents

• cfr-20240630.htm (10-Q) — 3751KB
• exhibit3112q24.htm (EX-31.1) — 9KB
• exhibit3122q24.htm (EX-31.2) — 9KB
• exhibit3212q24.htm (EX-32.1) — 5KB
• exhibit3222q24.htm (EX-32.2) — 5KB
• 0000039263-24-000057.txt ( ) — 20361KB
• cfr-20240630.xsd (EX-101.SCH) — 102KB
• cfr-20240630_cal.xml (EX-101.CAL) — 141KB
• cfr-20240630_def.xml (EX-101.DEF) — 705KB
• cfr-20240630_lab.xml (EX-101.LAB) — 1088KB
• cfr-20240630_pre.xml (EX-101.PRE) — 947KB
• cfr-20240630_htm.xml (XML) — 4665KB

- 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 8

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 9

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 37

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 61

Controls and Procedures

Item 4. Controls and Procedures 61

- Other Information

Part II - Other Information

Legal Proceedings

Item 1. Legal Proceedings 62

Risk Factors

Item 1A. Risk Factors 62

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 62

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 62

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 62

Other Information

Item 5. Other Information 62

Exhibits

Item 6. Exhibits 63

Signatures

Signatures 64 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) June 30, 2024 December 31, 2023 Assets: Cash and due from banks $ 612,648 $ 617,569 Interest-bearing deposits 6,445,461 7,985,057 Federal funds sold 2,025 — Resell agreements 84,650 84,650 Total cash and cash equivalents 7,144,784 8,687,276 Securities held to maturity, net of allowance for credit losses of $ 310 at both June 30, 2024 and December 31, 2023 3,586,116 3,619,428 Securities available for sale, at estimated fair value 15,197,638 16,578,371 Trading account securities 32,186 31,717 Loans, net of unearned discounts 19,995,756 18,824,251 Less: Allowance for credit losses on loans ( 256,307 ) ( 245,996 ) Net loans 19,739,449 18,578,255 Premises and equipment, net 1,221,043 1,190,033 Accrued interest receivable and other assets 1,921,477 2,159,958 Total assets $ 48,842,693 $ 50,845,038 Liabilities: Deposits: Non-interest-bearing demand deposits $ 13,484,977 $ 14,926,094 Interest-bearing deposits 26,833,163 26,994,474 Total deposits 40,318,140 41,920,568 Federal funds purchased 35,925 14,200 Repurchase agreements 3,762,942 4,127,188 Junior subordinated deferrable interest debentures, net of unamortized issuance costs 123,155 123,127 Subordinated notes, net of unamortized issuance costs 99,569 99,491 Accrued interest payable and other liabilities 837,157 844,017 Total liabilities 45,176,888 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 June 30, 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 June 30, 2024 and December 31, 2023 644 644 Additional paid-in capital 1,064,070 1,055,809 Retained earnings 3,810,008 3,657,688 Accumulated other comprehensive inc

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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