Exhibit 99.1 - Press Release

Exhibit 99.1

Greg Parker

Investor Relations

210/220-5632

Renee Sabel

Media Relations

210/220-5416

FOR IMMEDIATE RELEASE

January 29, 2014

CULLEN/FROST REPORTS 4^th QUARTER, ANNUAL 2013 RESULTS


•	Average annual loans increase 9.1 percent


•	Average annual deposits up 11.4 percent


•	Credit quality improves


•	Assets top $24 billion

SAN ANTONIO - Cullen/Frost Bankers, Inc. today reported solid fourth quarter and annual earnings for 2013, as the Texas financial services leader continues to operate well despite persistent rate and economic headwinds.

Cullen/Frost reported net income available to common shareholders for the fourth quarter of 2013 of $60.6 million, or $.99 per diluted common share, compared to fourth quarter 2012 earnings of $60.2 million, or $.97 per diluted common share. For the fourth quarter of 2013, returns on average assets and common equity were 1.02 percent and 10.21 percent respectively, compared to 1.09 percent and 9.84 percent for the same period of 2012.

The company also reported 2013 annual net income available to common shareholders of $231.1 million, compared to 2012 earnings of $238.0 million. On a per-share basis, 2013 earnings were $3.80 per diluted common share, compared to the $3.86 per diluted common share reported in 2012. For the year, returns on average assets and common equity were 1.02 percent and 9.93 percent respectively, compared to the 1.14 percent and 10.03 percent reported in 2012.

At the end of the fourth quarter of 2013, Cullen/Frost’s non-performing assets declined by $35.5 million from the fourth quarter of 2012 and $28.3 million from the third quarter of 2013. Non-performing assets are at the lowest level since the fourth quarter of 2008.

“I am pleased to report solid results for 2013, demonstrating Cullen/Frost’s steady performance in a sluggish but slowly improving economy,” said Dick Evans, Cullen/Frost chairman and CEO. “In an environment of continued regulatory, economic and rate challenges, we are executing our plan and operating well. I am especially pleased to report that average loans for the year grew 9.1 percent, to $9.2 billion, thanks largely to our focused efforts to leverage the new relationships we added during the recession.

“Deposit growth remains strong, as both new and existing customers helped spur a $2.0 billion year-over-year increase in average deposits. In light of a persistently low interest rate environment, I was encouraged to see a 6.4 percent growth from last year in taxable equivalent net interest income. Our capital levels remain strong.

“For the fourth quarter, we saw good growth in both average loans and average deposits, with loans increasing by 5.4 percent to $9.3 billion and deposits rising by 9.1 percent to $20.1 billion, compared to the fourth quarter of 2012. At the end of 2013, our assets were at an all-time high of $24.3 billion,” Evans continued.

“During the fourth quarter, we acquired an independent Houston-based insurance agency, Kolkhorst Insurance, which will enable us to expand our presence in this important market.

“Non-performing assets declined significantly this quarter, both from the fourth quarter of 2012 and the third quarter of 2013, evidence of Cullen/Frost’s strong credit disciplines.

“Operating only in Texas continues to be a significant benefit for Frost as the state’s economy once again outpaced that of the nation in 2013. Texas jobs grew 2.5 percent in 2013, compared to the U.S. average of 1.7 percent.

“I continue to be very optimistic about our company’s future. Businesses are cautiously beginning to grow again, but confidence in the economic recovery is still guarded,” Evans continued.

During the year, Frost received further validation of its outstanding service culture and performance from well-regarded third parties. In April, for the fourth consecutive year, Frost Bank received the highest ranking in

customer satisfaction in Texas in the J.D. Power and Associates 2012 U.S. Retail Banking Satisfaction Study^SM, outperforming 12 other Texas banks ranked. In January of 2013, Frost Bank received a record 22 Greenwich Excellence Awards for superior performance in overall client satisfaction and other relationship and service categories in small-business and middle-market banking, marking the eighth consecutive year Frost was recognized.

“Through our commitment to our culture and value proposition, Cullen/Frost has been able to expand our customer base and bring value to shareholders, paying and increasing the dividend we pay shareholders for 19 consecutive years. During the first quarter of 2013, we also issued $150 million in non-cumulative perpetual preferred stock to yield 5.375 percent.

Evans said the company opened three new financial centers in 2013, two in the Dallas region and one in Houston, while also relocating several older locations to new facilities across the state. Maintaining its commitment to expand access for customers, Frost provided regular updates and enhancements to the bank’s top-rated apps for iPhone and Android and added the convenience of Frost-branded ATMs at Love Field in Dallas. Along with the ATMs through Frost’s branding relationship with Corner Stores, Frost now has the third-largest ATM network in the state.

“I am grateful for the extraordinary team of people here at Frost. They deliver on our value proposition and live our culture every day, and I thank them for their dedication to our customers and our company.”

For 2013, average annual total loans were $9.2 billion, a $773 million increase from the $8.5 billion reported the previous year. Average annual total deposits for 2013 rose to $19.3 billion, up 11.4 percent, or $2.0 billion, over the $17.3 billion reported in 2012. Net interest income on a taxable-equivalent basis increased to $710.9 million, up 6.4 percent over the $668.2 million reported a year earlier, reflecting the impact of the increasing volume of earning assets. For 2013, non-interest income increased 4.9 percent from 2012 (6 percent without the impact of securities gains at the end of both years), while non-interest expense increased 6.4 percent over the previous year to $611.9 million.

Noted financial data for the fourth quarter:

•

Tier 1 and Total Risk-Based Capital Ratios for the Corporation at the end of the fourth quarter of 2013 were 14.65 percent and 15.79 percent, respectively and are in excess of well-capitalized levels. The ratio of tangible common equity to tangible assets was 7.68 percent at the end of the fourth quarter of 2013, compared to 8.30 percent for the same quarter last year. This tangible common equity ratio, which is a non-GAAP financial

measure, is equal to end-of-period shareholders’ common equity less goodwill and intangible assets divided by end-of-period total assets less goodwill and intangible assets. Frost’s current capital levels would meet today the fully phased-in Basel III capital requirements issued by the U.S. bank regulators.

•

Net interest income on a taxable-equivalent basis for the fourth quarter totaled $185.0 million, an increase of 7.4 percent compared to the $172.2 million reported for the fourth quarter of 2012. This increase primarily resulted from an increase in the average volume of earning assets and was partly offset by a decrease in the net interest margin. The net interest margin was 3.39 percent for the fourth quarter, compared to 3.48 percent for the fourth quarter of 2012 and 3.38 percent for the third quarter of 2013.

•

Non-interest income for the fourth quarter of 2013 was $78.5 million, an increase of $2.7 million, or 3.5 percent, from the $75.9 million reported a year earlier. Excluding securities gains that occurred in the fourth quarter of 2012 and the fourth quarter of 2013, non-interest income would have increased by 8.3 percent. Trust and investment management fees were $24.2 million, up $3.7 million or 18 percent compared to $20.5 million a year earlier. This increase was due to the equities market, new business and changes to the fee schedule. Investment fees are generally assessed based on the market value of trust assets that are managed and held in custody. Trust assets were $28.4 billion at the end of the fourth quarter of 2013, compared to $26.2 billion at December 31, 2012. Trust fees were also positively impacted by higher oil and gas fees, up $362,000. Insurance commissions and fees rose $2.0 million to $10.4 million, from $8.4 million in the fourth quarter of 2012, with most of this increase related to fees received in the fourth quarter of 2013 due to opportunities for early renewal made available by the implementation of the Affordable Care Act.

•

Non-interest expense for the fourth quarter of 2013 was $154.5 million, up $8.4 million or 5.8 percent from the $146.1 million reported for the fourth quarter of 2012. Salaries were up $4.8 million or 7.1 percent over the same quarter a year earlier and were impacted by an increase in the number of employees, combined with normal annual merit and market incentive increases. Employee benefits were up $1.9 million or 15 percent, primarily related to profit sharing expense, payroll taxes and medical insurance expense. Net occupancy expense was up $1.0 million due to higher lease expense and property taxes.


•	For the fourth quarter of 2013, the provision for loan losses was $5.9 million, compared to net charge-offs of $6.6 million. For the fourth quarter of 2012, the provision for loan losses was $4.1 million, compared to net charge offs of $5.1 million. The allowance for loan losses as a percentage of total loans was .97 percent at

December 31, 2013, compared to 1.13 percent at year-end 2012. Non-performing assets were $69.8 million at year-end, compared to $98.1 million the previous quarter, and $105.2 million at year-end 2012.

Cullen/Frost Bankers, Inc. will host a conference call on Wednesday, January 29, 2014 at 10 a.m. Central Time (CT) to discuss the results for the quarter and the year. The media and other interested parties are invited to access the call in a “listen only” mode at 800-944-6430. Digital playback of the conference call will be available after 12 p.m. CT until midnight Sunday, February 2, 2014 at 855-859-2056, with the Conference ID# of 43086322. The call will also be available by webcast on the company’s website, frostbank.com, and available for playback after 2 p.m. CT. After entering the website, go to "About Frost" on the top navigation bar, then click on Investor Relations.

Cullen/Frost Bankers, Inc. (NYSE: CFR) is a financial holding company, headquartered in San Antonio, with $24.3 billion in assets at December 31, 2013. Among the top 50 largest U.S. banks and one of 24 banks included in the KBW Bank Index, Frost provides a wide range of banking, investments and insurance services to businesses and individuals across Texas in the Austin, Corpus Christi, Dallas, Fort Worth, Houston, Rio Grande Valley and San Antonio regions. Founded in 1868, Frost has helped clients with their financial needs during three centuries. Additional information is available at frostbank.com.

Forward-Looking Statements and Factors that Could Affect Future Results

Certain statements contained in this Earnings Release that are not statements of historical fact constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"), notwithstanding that such statements are not specifically identified as such. In addition, certain statements may be contained in the Corporation's future filings with the SEC, in press releases, and in oral and written statements made by or with the approval of the Corporation that are not statements of historical fact and constitute forward-looking statements within the meaning of the Act. Examples of forward-looking statements include, but are not limited to: (i) projections of revenues, expenses, income or loss, earnings or loss per share, the payment or nonpayment of dividends, capital structure and other financial items; (ii) statements of plans, objectives and expectations of Cullen/Frost or its management or Board of Directors, including those relating to products or services; (iii) statements of future economic performance; and (iv) statements of assumptions underlying such statements. Words such as "believes", "anticipates", "expects", "intends", "targeted", "continue", "remain", "will", "should", "may" and other similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements.

Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from those in such statements. Factors that could cause actual results to differ from those discussed in the forward-looking statements include, but are not limited to:


•	Local, regional, national and international economic conditions and the impact they may have on the Corporation and its customers and the Corporation’s assessment of that impact.


•	Volatility and disruption in national and international financial markets.


•	Government intervention in the U.S. financial system.


•	Changes in the mix of loan geographies, sectors and types or the level of non-performing assets and charge-offs.


•	Changes in estimates of future reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements.


•	The effects of and changes in trade and monetary and fiscal policies and laws, including the interest rate policies of the Federal Reserve Board.


•	Inflation, interest rate, securities market and monetary fluctuations.


•	The effect of changes in laws and regulations (including laws and regulations concerning taxes, banking, securities and insurance) with which the Corporation and its subsidiaries must comply.


•	The soundness of other financial institutions.


•	Political instability.


•	Impairment of the Corporation’s goodwill or other intangible assets.


•	Acts of God or of war or terrorism.


•	The timely development and acceptance of new products and services and perceived overall value of these products and services by users.


•	Changes in consumer spending, borrowings and savings habits.


•	Changes in the financial performance and/or condition of the Corporation’s borrowers.


•	Technological changes.


•	Acquisitions and integration of acquired businesses.


•	The ability to increase market share and control expenses.


•	The Corporation’s ability to attract and retain qualified employees.


•	Changes in the competitive environment in the Corporation’s markets and among banking organizations and other financial service providers.


•	The effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board and other accounting standard setters.


•	Changes in the reliability of the Corporation’s vendors, internal control systems or information systems.


•	Changes in the Corporation’s liquidity position.


•	Changes in the Corporation’s organization, compensation and benefit plans.


•	The costs and effects of legal and regulatory developments, the resolution of legal proceedings or regulatory or other governmental inquiries, the results of regulatory examinations or reviews and the ability to obtain required regulatory approvals.


•	Greater than expected costs or difficulties related to the integration of new products and lines of business.


•	The Corporation’s success at managing the risks involved in the foregoing items.

Forward-looking statements speak only as of the date on which such statements are made. The Corporation undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made, or to reflect the occurrence of unanticipated events.



Cullen/Frost Bankers, Inc.
CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)
(In thousands, except per share amounts)

	2013												2012
	4th Qtr			3rd Qtr			2nd Qtr			1st Qtr			4th Qtr
CONDENSED INCOME STATEMENTS
Net interest income	$	159,208		$	155,353		$	153,181		$	152,813		$	154,405
Net interest income ⁽¹⁾	184,960			179,121			173,966			172,802			172,156
Provision for loan losses	5,899			5,108			3,575			6,000			4,125
Non-interest income:
Trust and investment management fees	24,237			22,692			22,561			21,885			20,543
Service charges on deposit accounts	20,602			20,742			20,044			20,044			21,162
Insurance commissions and fees	10,433			10,371			9,266			13,070			8,436
Interchange and debit card transaction fees	4,324			4,376			4,268			4,011			4,330
Other charges, commissions and fees	8,586			9,266			8,578			7,755			7,740
Net gain (loss) on securities transactions	1,179			(14		)	6			5			4,435
Other	9,177			6,558			7,786			11,010			9,241
Total non-interest income	78,538			73,991			72,509			77,780			75,887

Non-interest expense:
Salaries and wages	72,201			68,524			66,502			66,465			67,442
Employee benefits	14,798			14,989			14,629			17,991			12,867
Net occupancy	12,750			13,094			12,645			11,979			11,772
Furniture and equipment	14,643			14,629			14,986			14,185			13,932
Deposit insurance	3,037			2,921			2,835			2,889			3,159
Intangible amortization	753			780			788			820			918
Other	36,333			36,886			37,373			41,485			35,977
Total non-interest expense	154,515			151,823			149,758			155,814			146,067
Income before income taxes	77,332			72,413			72,357			68,779			80,100
Income taxes	14,761			11,969			12,694			13,591			19,912
Net income	62,571			60,444			59,663			55,188			60,188
Preferred stock dividends	2,016			2,015			2,688			—			—
Net income available to common shareholders	$	60,555		$	58,429		$	56,975		$	55,188		$	60,188

PER COMMON SHARE DATA
Earnings per common share - basic	$	1.00		$	0.96		$	0.95		$	0.91		$	0.98
Earnings per common share - diluted	0.99			0.96			0.94			0.91			0.97
Cash dividends per common share	0.50			0.50			0.50			0.48			0.48
Book value per common share at end of quarter	39.13			38.63			37.91			38.33			39.32

OUTSTANDING COMMON SHARES
Period-end common shares	60,566			60,492			60,236			59,970			61,479
Weighted-average common shares - basic	60,461			60,340			60,011			60,593			61,382
Dilutive effect of stock compensation	846			866			664			581			339
Weighted-average common shares - diluted	61,307			61,206			60,675			61,174			61,721

SELECTED ANNUALIZED RATIOS
Return on average assets	1.02		%	1.01		%	1.03		%	1.01		%	1.09		%
Return on average common equity	10.21			10.07			9.93			9.49			9.84
Net interest income to average earning assets ⁽¹⁾	3.39			3.38			3.43			3.45			3.48

(1) Taxable-equivalent basis assuming a 35% tax rate



Cullen/Frost Bankers, Inc.
CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)


	2013												2012
	4th Qtr			3rd Qtr			2nd Qtr			1st Qtr			4th Qtr
BALANCE SHEET SUMMARY
($ in millions)
Average Balance:
Loans	$	9,348		$	9,251		$	9,207		$	9,109		$	8,868
Earning assets	21,864			21,199			20,468			20,415			20,138
Total assets	23,623			22,926			22,232			22,213			21,964
Non-interest-bearing demand deposits	8,002			7,738			7,452			7,431			7,690
Interest-bearing deposits	12,099			11,722			11,319			11,292			10,736
Total deposits	20,101			19,460			18,771			18,723			18,426
Shareholders' equity	2,497			2,447			2,445			2,431			2,433

Period-End Balance:
Loans	$	9,516		$	9,306		$	9,233		$	9,162		$	9,224
Earning assets	22,238			21,688			20,755			20,787			21,148
Goodwill and intangible assets	543			541			542			543			544
Total assets	24,313			23,530			22,572			22,498			23,124
Total deposits	20,689			19,979			19,078			19,044			19,497
Shareholders' equity	2,514			2,481			2,428			2,443			2,417
Adjusted shareholders' equity ⁽¹⁾	2,374			2,335			2,272			2,229			2,179

ASSET QUALITY
($ in thousands)
Allowance for loan losses:	$	92,438		$	93,147		$	93,400		$	93,589		$	104,453
As a percentage of period-end loans	0.97		%	1.00		%	1.01		%	1.02		%	1.13		%

Net charge-offs:	$	6,608		$	5,361		$	3,764		$	16,864		$	5,073
Annualized as a percentage of average loans	0.28		%	0.23		%	0.16		%	0.75		%	0.23		%

Non-performing assets:
Non-accrual loans	$	56,720		$	79,081		$	86,714		$	91,644		$	89,744
Restructured loans	1,137			8,243			1,900			1,613			—
Foreclosed assets	11,916			10,748			13,047			12,630			15,502
Total	$	69,773		$	98,072		$	101,661		$	105,887		$	105,246
As a percentage of:
Total loans and foreclosed assets	0.73		%	1.05		%	1.10		%	1.15		%	1.14		%
Total assets	0.29			0.42			0.45			0.47			0.46

CONSOLIDATED CAPITAL RATIOS
Tier 1 Risk-Based Capital Ratio	14.65		%	14.53		%	14.22		%	14.23		%	13.68		%
Total Risk-Based Capital Ratio	15.79			15.68			15.39			15.44			15.11
Leverage Ratio	8.49			8.61			8.60			8.42			8.28
Equity to Assets Ratio (period-end)	10.34			10.54			10.76			10.86			10.45
Equity to Assets Ratio (average)	10.57			10.67			11.00			10.94			11.08

(1) Shareholders' equity excluding accumulated other comprehensive income (loss).



Cullen/Frost Bankers, Inc.
CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)
(In thousands, except per share amounts)

	Year Ended December 31
	2013			2012			2011			2010			2009
CONDENSED INCOME STATEMENTS

Net interest income	$	620,555		$	604,861		$	581,776		$	563,459		$	536,679
Net interest income ⁽¹⁾	710,850			668,176			642,066			616,319			577,716
Provision for loan losses	20,582			10,080			27,445			43,611			65,392
Non-interest income:
Trust and investment management fees	91,375			83,317			78,297			72,321			69,933
Service charges on deposit accounts	81,432			83,392			86,125			91,025			96,525
Insurance commissions and fees	43,140			39,948			35,421			34,015			33,096
Interchange and debit card transaction fees	16,979			16,933			29,625			30,542			26,248
Other charges, commissions and fees	34,185			30,180			27,750			25,380			23,826
Net gain (loss) on securities transactions	1,176			4,314			6,414			6			(1,260		)
Other	34,531			30,703			26,370			28,744			45,338
Total non-interest income	302,818			288,787			290,002			282,033			293,706

Non-interest expense:
Salaries and wages	273,692			258,752			252,028			239,589			230,643
Employee benefits	62,407			57,635			52,939			52,352			55,224
Net occupancy	50,468			48,975			46,968			46,166			44,188
Furniture and equipment	58,443			55,279			51,469			47,651			44,223
Deposit insurance	11,682			11,087			12,714			20,451			25,812
Intangible amortization	3,141			3,896			4,387			5,125			6,537
Other	152,077			139,469			137,593			124,207			125,611
Total non-interest expense	611,910			575,093			558,098			535,541			532,238
Income before income taxes	290,881			308,475			286,235			266,340			232,755
Income taxes	53,015			70,523			68,700			57,576			53,721
Net income	237,866			237,952			217,535			208,764			179,034
Preferred stock dividends	6,719			—			—			—			—
Net income available to common shareholders	231,147			237,952			217,535			$	208,764		$	179,034

PER COMMON SHARE DATA
Earnings per common share - basic	$	3.82		$	3.87		$	3.55		$	3.44		$	3.00
Earnings per common share - diluted	3.80			3.86			3.54			3.44			3.00
Cash dividends per common share	1.98			1.90			1.83			1.78			1.71
Book value per common share at end of quarter	39.13			39.32			37.27			33.74			31.55

OUTSTANDING COMMON SHARES
Period-end common shares	60,566			61,479			61,264			61,108			60,038
Weighted-average common shares - basic	60,350			61,298			61,101			60,411			59,456
Dilutive effect of stock compensation	766			345			177			175			58
Weighted-average common shares - diluted	61,116			61,643			61,278			60,586			59,514

SELECTED ANNUALIZED RATIOS
Return on average assets	1.02		%	1.14		%	1.17		%	1.21		%	1.14		%
Return on average common equity	9.93			10.03			10.01			10.30			9.78
Net interest income to average earning assets ⁽¹⁾	3.41			3.59			3.88			4.08			4.23

(1) Taxable-equivalent basis assuming a 35% tax rate



Cullen/Frost Bankers, Inc.
CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)


	Year Ended December 31
	2013			2012			2011			2010			2009
BALANCE SHEET SUMMARY
($ in millions)
Average Balance:
Loans	$	9,230		$	8,457		$	8,043		$	8,125		$	8,653
Earning assets	20,991			19,016			16,769			15,333			13,804
Total assets	22,752			20,827			18,569			17,187			15,702
Non-interest-bearing demand deposits	7,658			7,022			5,739			5,024			4,259
Interest-bearing deposits	11,610			10,270			9,484			9,024			8,161
Total deposits	19,268			17,292			15,223			14,048			12,420
Shareholders' equity	2,455			2,373			2,172			2,028			1,831

Period-End Balance:
Loans	$	9,516		$	9,224		$	7,995		$	8,117		$	8,368
Earning assets	22,238			21,148			18,498			15,806			14,437
Goodwill and intangible assets	543			544			539			542			547
Total assets	24,313			23,124			20,317			17,617			16,288
Total deposits	20,689			19,497			16,757			14,479			13,313
Shareholders' equity	2,514			2,417			2,284			2,062			1,894
Adjusted shareholders' equity ⁽¹⁾	2,374			2,179			2,036			1,907			1,740

ASSET QUALITY
($ in thousands)
Allowance for loan losses:	$	92,438		$	104,453		$	110,147		$	126,316		$	125,309
As a percentage of period-end loans	0.97		%	1.13		%	1.38		%	1.56		%	1.50		%

Net charge-offs:	$	32,597		$	15,774		$	43,614		$	42,604		$	50,327
Annualized as a percentage of average loans	0.35		%	0.19		%	0.54		%	0.52		%	0.58		%

Non-performing assets:
Non-accrual loans	$	56,720		$	89,744		$	94,338		$	137,140		$	146,867
Restructured loans	1,137			—			—			—			—
Foreclosed assets	11,916			15,502			26,608			27,810			33,312
Total	$	69,773		$	105,246		$	120,946		$	164,950		$	180,179
As a percentage of:
Total loans and foreclosed assets	0.73		%	1.14		%	1.51		%	2.03		%	2.14		%
Total assets	0.29			0.46			0.60			0.94			1.11

CONSOLIDATED CAPITAL RATIOS
Tier 1 Risk-Based Capital Ratio	14.65		%	13.68		%	14.38		%	13.82		%	11.91		%
Total Risk-Based Capital Ratio	15.79			15.11			16.24			15.91			14.19
Leverage Ratio	8.49			8.28			8.66			8.68			8.50
Equity to Assets Ratio (period-end)	10.34			10.45			11.24			11.70			11.63
Equity to Assets Ratio (average)	10.79			11.39			11.70			11.80			11.66

(1) Shareholders' equity excluding accumulated other comprehensive income (loss).