CULLEN/FROST BANKERS, INC.CFR
CULLEN/FROST BANKERS, INC. Segments Disclosure
Operating Segments
We are managed under a matrix organizational structure whereby our two primary operating segments, Banking and Frost Wealth Advisors, overlap a regional reporting structure. The regions are primarily based upon geographic location and include Austin, Dallas, Fort Worth, Gulf Coast (which includes Corpus Christi and the Rio Grande Valley), Houston, Permian Basin, San Antonio and Statewide. We are primarily managed based on the line of business structure. In that regard, all regions have the same lines of business, which have the same product and service offerings, have similar types and classes of customers and utilize similar service delivery methods. Pricing guidelines for products and services are the same across all regions. The regional reporting structure is primarily a means to scale the lines of business to provide a local, community focus for customer relations and business development.
Banking and Frost Wealth Advisors are delineated by the products and services that each segment offers. The Banking operating segment includes both commercial and consumer banking services and Frost Insurance Agency. Commercial banking services are provided to corporations and other business customers and include a wide array of lending and cash management products. Consumer banking services include direct lending and depository services. Frost Insurance Agency provides insurance brokerage services to individuals and businesses covering corporate and personal property and casualty products, as well as group health and life insurance products. The Frost Wealth Advisors operating segment includes fee-based services within private trust, retirement services, and financial management services, including personal wealth management and securities brokerage services. A third operating segment, Non-Banks, is for the most part the parent holding company, as well as certain other insignificant non-bank subsidiaries of the parent that, for the most part, have little or no activity. Non-banks also includes certain eliminating amounts. The parent company’s principal activities include the direct and indirect ownership of our banking and non-banking subsidiaries and the issuance of debt and equity. Our principal source of revenue is dividends from our subsidiaries.
The accounting policies of each reportable segment are the same as those of our consolidated entity except for the following items, which impact the Banking and Frost Wealth Advisors segments: (i) expenses for consolidated back-office operations and general overhead-type expenses such as executive administration, accounting and internal audit are allocated to operating segments based on estimated uses of those services, and (ii) the parent company records the tax expense or benefit necessary to reconcile to the consolidated total.
Our chief executive officer is our chief operating decision maker. We use a match-funded transfer pricing process to allocate costs, capital and resources to each operating segment. The process helps us to (i) identify the cost or opportunity value of funds within each business segment, (ii) measure the profitability of a particular business segment by relating appropriate costs to revenues, (iii) evaluate each business segment in a manner consistent with its economic impact on consolidated earnings, and (iv) enhance asset and liability pricing decisions. Our chief executive officer reviews actual net income versus budgeted net income to assess segment performance on a monthly basis and to make decisions about allocating capital and personnel to the segments.
Financial results by operating segment, including significant expense categories provided to the chief operating decision maker, are detailed below. Certain prior period amounts have been reclassified to conform to the current presentation. Frost Wealth Advisors excludes off-balance-sheet managed and custody assets with a total fair value of $51.0 billion, $51.4 billion and $47.2 billion at December 31, 2025, 2024 and 2023.
| Banking | Frost Wealth Advisors | Non-Banks | Consolidated | ||||||||||||||||||||
| 2025 | |||||||||||||||||||||||
| Interest income | $ | 2,412,807 | $ | 7,940 | $ | — | $ | 2,420,747 | |||||||||||||||
| Interest expense | 671,866 | 386 | 12,346 | 684,598 | |||||||||||||||||||
| Net interest income (expense) | 1,740,941 | 7,554 | (12,346) | 1,736,149 | |||||||||||||||||||
| Credit loss expense | 44,202 | — | — | 44,202 | |||||||||||||||||||
| Net interest income after credit loss expense | 1,696,739 | 7,554 | (12,346) | 1,691,947 | |||||||||||||||||||
| Non-interest income: | |||||||||||||||||||||||
| Trust and investment management fees | — | 178,234 | (1,137) | 177,097 | |||||||||||||||||||
| Service charges on deposit accounts | 121,558 | 14 | — | 121,572 | |||||||||||||||||||
| Insurance commissions and fees | 65,502 | — | — | 65,502 | |||||||||||||||||||
| Interchange and card transaction fees | 22,858 | — | — | 22,858 | |||||||||||||||||||
| Other charges, commissions and fees | 32,037 | 25,474 | — | 57,511 | |||||||||||||||||||
| Net gain (loss) on securities transactions | (850) | — | — | (850) | |||||||||||||||||||
| Other | 49,110 | 6,071 | 224 | 55,405 | |||||||||||||||||||
| Total non-interest income | 290,215 | 209,793 | (913) | 499,095 | |||||||||||||||||||
| Non-interest expense: | |||||||||||||||||||||||
| Salaries and wages | 593,755 | 79,309 | 1,583 | 674,647 | |||||||||||||||||||
| Employee benefits | 131,159 | 14,842 | 100 | 146,101 | |||||||||||||||||||
| Net occupancy | 122,458 | 14,482 | — | 136,940 | |||||||||||||||||||
| Technology, furniture and equipment | 159,341 | 6,203 | 200 | 165,744 | |||||||||||||||||||
| Deposit insurance | 18,720 | 32 | — | 18,752 | |||||||||||||||||||
| Other | 215,405 | 56,999 | 4,752 | 277,156 | |||||||||||||||||||
| Total non-interest expense | 1,240,838 | 171,867 | 6,635 | 1,419,340 | |||||||||||||||||||
| Income (loss) before income taxes | 746,116 | 45,480 | (19,894) | 771,702 | |||||||||||||||||||
| Income tax expense (benefit) | 119,877 | 9,551 | (6,283) | 123,145 | |||||||||||||||||||
| Net income (loss) | 626,239 | 35,929 | (13,611) | 648,557 | |||||||||||||||||||
| Preferred stock dividends | — | — | 6,675 | 6,675 | |||||||||||||||||||
| Net income (loss) available to common shareholders | $ | 626,239 | $ | 35,929 | $ | (20,286) | $ | 641,882 | |||||||||||||||
| Revenues from (expenses to) external customers | $ | 2,031,156 | $ | 217,347 | $ | (13,259) | $ | 2,235,244 | |||||||||||||||
| Average assets (in millions) | $ | 51,807 | $ | 73 | $ | 9 | $ | 51,889 | |||||||||||||||
| Banking | Frost Wealth Advisors | Non-Banks | Consolidated | ||||||||||||||||||||
| 2024 | |||||||||||||||||||||||
| Interest income | $ | 2,382,675 | $ | 7,962 | $ | — | $ | 2,390,637 | |||||||||||||||
| Interest expense | 772,075 | 421 | 13,529 | 786,025 | |||||||||||||||||||
| Net interest income (expense) | 1,610,600 | 7,541 | (13,529) | 1,604,612 | |||||||||||||||||||
| Credit loss expense | 64,985 | — | — | 64,985 | |||||||||||||||||||
| Net interest income after credit loss expense | 1,545,615 | 7,541 | (13,529) | 1,539,627 | |||||||||||||||||||
| Non-interest income: | |||||||||||||||||||||||
| Trust and investment management fees | — | 167,448 | (2,178) | 165,270 | |||||||||||||||||||
| Service charges on deposit accounts | 106,217 | 13 | — | 106,230 | |||||||||||||||||||
| Insurance commissions and fees | 61,269 | — | — | 61,269 | |||||||||||||||||||
| Interchange and card transaction fees | 21,017 | — | — | 21,017 | |||||||||||||||||||
| Other charges, commissions and fees | 30,626 | 22,717 | 5 | 53,348 | |||||||||||||||||||
| Net gain (loss) on securities transactions | (96) | — | — | (96) | |||||||||||||||||||
| Other | 45,790 | 6,011 | 259 | 52,060 | |||||||||||||||||||
| Total non-interest income | 264,823 | 196,189 | (1,914) | 459,098 | |||||||||||||||||||
| Non-interest expense: | |||||||||||||||||||||||
| Salaries and wages | 544,843 | 74,928 | 1,623 | 621,394 | |||||||||||||||||||
| Employee benefits | 109,431 | 12,911 | 104 | 122,446 | |||||||||||||||||||
| Net occupancy | 115,136 | 13,615 | — | 128,751 | |||||||||||||||||||
| Technology, furniture and equipment | 142,517 | 5,764 | 206 | 148,487 | |||||||||||||||||||
| Deposit insurance | 37,203 | 66 | — | 37,269 | |||||||||||||||||||
| Other | 189,700 | 49,790 | 4,921 | 244,411 | |||||||||||||||||||
| Total non-interest expense | 1,138,830 | 157,074 | 6,854 | 1,302,758 | |||||||||||||||||||
| Income (loss) before income taxes | 671,608 | 46,656 | (22,297) | 695,967 | |||||||||||||||||||
| Income tax expense (benefit) | 110,524 | 9,798 | (6,897) | 113,425 | |||||||||||||||||||
| Net income (loss) | 561,084 | 36,858 | (15,400) | 582,542 | |||||||||||||||||||
| Preferred stock dividends | — | — | 6,675 | 6,675 | |||||||||||||||||||
| Net income (loss) available to common shareholders | $ | 561,084 | $ | 36,858 | $ | (22,075) | $ | 575,867 | |||||||||||||||
| Revenues from (expenses to) external customers | $ | 1,875,423 | $ | 203,730 | $ | (15,443) | $ | 2,063,710 | |||||||||||||||
| Average assets (in millions) | $ | 49,621 | $ | 64 | $ | 9 | $ | 49,694 | |||||||||||||||
| Banking | Frost Wealth Advisors | Non-Banks | Consolidated | ||||||||||||||||||||
| 2023 | |||||||||||||||||||||||
| Interest income | $ | 2,209,659 | $ | 8,057 | $ | — | $ | 2,217,716 | |||||||||||||||
| Interest expense | 647,218 | 437 | 11,397 | 659,052 | |||||||||||||||||||
| Net interest income (expense) | 1,562,441 | 7,620 | (11,397) | 1,558,664 | |||||||||||||||||||
| Credit loss expense | 46,171 | — | — | 46,171 | |||||||||||||||||||
| Net interest income after credit loss expense | 1,516,270 | 7,620 | (11,397) | 1,512,493 | |||||||||||||||||||
| Non-interest income: | |||||||||||||||||||||||
| Trust and investment management fees | — | 155,278 | (1,963) | 153,315 | |||||||||||||||||||
| Service charges on deposit accounts | 93,478 | 26 | — | 93,504 | |||||||||||||||||||
| Insurance commissions and fees | 58,271 | — | — | 58,271 | |||||||||||||||||||
| Interchange and card transaction fees | 19,419 | — | — | 19,419 | |||||||||||||||||||
| Other charges, commissions and fees | 30,217 | 18,809 | — | 49,026 | |||||||||||||||||||
| Net gain (loss) on securities transactions | 66 | — | — | 66 | |||||||||||||||||||
| Other | 49,868 | 4,793 | 280 | 54,941 | |||||||||||||||||||
| Total non-interest income | 251,319 | 178,906 | (1,683) | 428,542 | |||||||||||||||||||
| Non-interest expense: | |||||||||||||||||||||||
| Salaries and wages | 480,083 | 66,070 | 1,565 | 547,718 | |||||||||||||||||||
| Employee benefits | 103,427 | 11,776 | 103 | 115,306 | |||||||||||||||||||
| Net occupancy | 109,953 | 14,443 | — | 124,396 | |||||||||||||||||||
| Technology, furniture and equipment | 129,042 | 6,054 | 190 | 135,286 | |||||||||||||||||||
| Deposit insurance | 76,535 | 54 | — | 76,589 | |||||||||||||||||||
| Other | 178,784 | 46,081 | 4,502 | 229,367 | |||||||||||||||||||
| Total non-interest expense | 1,077,824 | 144,478 | 6,360 | 1,228,662 | |||||||||||||||||||
| Income (loss) before income taxes | 689,765 | 42,048 | (19,440) | 712,373 | |||||||||||||||||||
| Income tax expense (benefit) | 111,145 | 8,830 | (5,575) | 114,400 | |||||||||||||||||||
| Net income (loss) | 578,620 | 33,218 | (13,865) | 597,973 | |||||||||||||||||||
| Preferred stock dividends | — | — | 6,675 | 6,675 | |||||||||||||||||||
| Net income (loss) available to common shareholders | $ | 578,620 | $ | 33,218 | $ | (20,540) | $ | 591,298 | |||||||||||||||
| Revenues from (expenses to) external customers | $ | 1,813,760 | $ | 186,526 | $ | (13,080) | $ | 1,987,206 | |||||||||||||||
| Average assets (in millions) | $ | 49,536 | $ | 59 | $ | 9 | $ | 49,604 | |||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 5, 2026 | Showing above |
| 2024 | Feb 6, 2025 | |
| 2023 | Feb 6, 2024 | |
| 2022 | Feb 3, 2023 | |
| 2021 | Feb 4, 2022 | |
| 2020 | Feb 5, 2021 | |
| 2019 | Feb 4, 2020 | |
| 2018 | Feb 6, 2019 | |
| 2017 | Feb 7, 2018 | |
| 2016 | Feb 3, 2017 | |
| 2015 | Feb 4, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.