Cullen/Frost Bankers (CFR) risk factors, FY2025 10-K

Cullen/Frost Bankers's FY2025 10-K, filed Feb 05, 2026, lists 41 risk factors in 3 groups. Against the prior year's 37: 5 new, 1 dropped, 2 substantially reworded.

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Risk factors listed
413 groups
New this year
5vs 37 last year
Dropped
1since the prior 10-K
Substantially reworded
2of those kept
Section length
11k wordsItem 1A

What the changes say

  • The bank added new disclosures covering cyber fraud, the GENIUS Act, U.S. government shutdowns, and expanded climate change risks.
  • Competition and reputation risk disclosures saw minor text updates.

What changed since the prior 10-K

New

  • NewOperational Risks

    Increasing Fraud Risk Could Adversely Affect Our Business, Financial Condition, and Reputation

    Cyber fraud and identity theft targeting digital banking channels could cause financial losses, operational costs, and regulatory scrutiny.

  • NewOperational Risks

    Department and federal and state regulators to issue regulations on numerous topics to interpret and implement the statute, so the effect of the GENIUS Act will depend on what those regulations provide

    The GENIUS Act and new technologies like stablecoins and blockchain could disintermediate banks, causing deposit and fee income losses.

  • NewOperational Risks

    oversight and control of the foregoing. We could face increased scrutiny or be viewed as higher risk by regulators and/or the investor community, which could have a material adverse effect on our business, financial condition and results of operations

    Regulatory control and oversight issues could increase our risk profile and cause adverse effects on our operations.

  • NewOperational Risks

    We Are Subject To the Potential Adverse Effects of a U.S. Federal Government Shutdown

    U.S. federal government shutdowns can disrupt agency operations, delay loan originations, and increase borrower credit risk.

  • NewRisks Related to Acquisition Activity

    Our business, as well as the operations and activities of our customers, could be negatively impacted by climate-related risks in both the short-term and the long-term

    Extreme weather events and climate shifts could damage properties, increase insurance premiums, and amplify borrower credit risk.

Dropped

  • DroppedRisks Related to Acquisition Activity

    Climate Change Could Have a Material Negative Impact on Us and Our Customers

Reworded

  • 58% rewrittenOperational Risks

    We Operate In A Highly Competitive Industry and Market Area

    Retained prior risk text regarding competition from large bank holding companies under $250 billion.

  • 23% rewrittenOperational Risks

    Our Reputation and Our Business Are Subject to Negative Publicity Risk

    Updated to reference failure to achieve commitments to employees or other initiatives and stakeholder concerns instead of ESG.

All 41 risk factors

Headings as the filing states them, in filing order.

Risks Related To Our Business

  1. 01We Are Subject To Interest Rate Risk
  2. 02We Are Subject To Lending Risk and Lending Concentration Risk
  3. 03Our Allowance For Credit Losses May Be Insufficient
  4. 04We Are Subject to Risk Arising From Conditions In The Commercial Real Estate Market
  5. 05We Are Subject To Volatility Risk In Crude Oil Prices
  6. 06We Are Subject To Environmental Liability Risk Associated With Lending Activities
  7. 07We Are Subject To Liquidity Risk
  8. 08Unrealized Losses in Our Securities Portfolio Could Affect Liquidity

Operational Risks

  1. 09Our Accounting Estimates and Risk Management Processes Rely On Analytical and Forecasting Models
  2. 10We Are Subject To Risk Arising From Failure Or Circumvention Of Our Controls and Procedures
  3. 11New Lines Of Business, Products Or Services and Technological Advancements May Subject Us To Additional Risks
  4. 12Our Reputation and Our Business Are Subject to Negative Publicity Risk23% rewritten
  5. 13Our Business, Financial Condition and Results Of Operations Are Subject To Risk From Changes in Customer Behavior
  6. 14Cullen/Frost Relies On Dividends From Its Subsidiaries For Most Of Its Revenue
  7. 15Our Information Systems May Experience Failure, Interruption Or Breach In Security
  8. 16Increasing Fraud Risk Could Adversely Affect Our Business, Financial Condition, and ReputationNew
  9. 17Our Operations Rely On Certain External Vendors
  10. 18We Are Subject To Litigation Risk Pertaining To Fiduciary Responsibility
  11. 19We Are Subject To Litigation Risk Pertaining To Intellectual Property
  12. 20Financial Services Companies Depend On The Accuracy and Completeness Of Information About Customers and Counterparties
  13. 21Our Profitability Depends Significantly On Economic Conditions In The State Of Texas
  14. 22We Are Subject to Risk Arising From The Soundness Of Other Financial Institutions and Counterparties
  15. 23We Operate In A Highly Competitive Industry and Market Area58% rewritten
  16. 24Department and federal and state regulators to issue regulations on numerous topics to interpret and implement the statute, so the effect of the GENIUS Act will depend on what those regulations provideNew
  17. 25We Are Subject To Extensive Government Regulation and Supervision and Related Enforcement Powers and Other Legal Remedies
  18. 26oversight and control of the foregoing. We could face increased scrutiny or be viewed as higher risk by regulators and/or the investor community, which could have a material adverse effect on our business, financial condition and results of operationsNew
  19. 27The Repeal Of Federal Prohibitions On Payment Of Interest On Demand Deposits Could Increase Our Interest Expense
  20. 28We Are Subject To Government Regulation and Oversight Relating to Data and Privacy Protection
  21. 29We Are Subject To the Potential Adverse Effects of a U.S. Federal Government ShutdownNew

Risks Related to Acquisition Activity

  1. 30Potential Acquisitions May Disrupt Our Business and Dilute Shareholder Value
  2. 31Acquisitions May Be Delayed, Impeded, Or Prohibited Due To Regulatory Issues
  3. 32The Trading Volumes In Our Common Stock and Preferred Stock Are Less Than That Of Other Larger Financial Services Companies
  4. 33Cullen/Frost May Not Continue To Pay Dividends On Its Common Stock In The Future
  5. 34An Investment In Our Common Stock or Preferred Stock Is Not An Insured Deposit
  6. 35Certain Banking Laws May Have An Anti-Takeover Effect
  7. 36We are Subject To Risk From Fluctuating Conditions In The Financial Markets and Economic and Political Conditions Generally
  8. 37We May Need To Raise Additional Capital In The Future, and Such Capital May Not Be Available When Needed Or At All
  9. 38Our Stock Price Can Be Volatile
  10. 39Changes In Accounting Standards Could Materially Impact Our Financial Statements
  11. 40We May Not Be Able To Attract and Retain Skilled People
  12. 41Our business, as well as the operations and activities of our customers, could be negatively impacted by climate-related risks in both the short-term and the long-termNew

Other Cullen/Frost Bankers 10-Ks

  • FY2024 10-K risk factors
    37 risks

    Cullen/Frost Bankers faces concentrated risks from Texas economic conditions and commercial real estate and energy lending exposures. Interest rate fluctuations and securities portfolio unrealized losses directly impact liquidity, capital levels, and earnings. Extensive federal and state banking regulations govern operations and constrain potential corporate growth or acquisitions.

    Filed Feb 06, 2025

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.