Operating Segments

9 Months Ended

Sep. 30, 2026

Segment Reporting [Abstract]

Operating Segments

Operating Segments

We are managed under a matrix organizational structure whereby our two primary operating segments, Banking and Wealth Management, 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, Victoria 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. See our 2025 Form 10-K for additional information about our operating segments and related accounting policies.

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.

	Banking		Wealth Management		Non-Banks		Consolidated
Three months ended:
September 30, 2026
Interest income	$	629,805	$	1,973	$	—	$	631,778
Interest expense	160,910		77		2,924		163,911
Net interest income (expense)	468,895		1,896		(2,924)		467,867
Credit loss expense	12,090		—		—		12,090
Net interest income after credit loss expense	456,805		1,896		(2,924)		455,777
Non-interest income:
Trust and investment management fees	—		49,509		(37)		49,472
Service charges on deposit accounts	36,299		5		—		36,304
Insurance commissions and fees	15,838		—		—		15,838
Interchange and card transaction fees	6,843		—		—		6,843
Other charges, commissions and fees	7,890		6,021		—		13,911
Net gain (loss) on securities transactions	(7,512)		—		—		(7,512)
Other	19,958		1,078		70		21,106
Total non-interest income	79,316		56,613		33		135,962
Non-interest expense:
Salaries and wages	161,634		20,127		422		182,183
Employee benefits	30,344		3,279		26		33,649
Net occupancy	32,591		3,258		(1)		35,848
Technology, furniture and equipment	44,637		1,453		55		46,145
Deposit insurance	6,929		12		—		6,941
Other	55,397		16,200		837		72,434
Total non-interest expense	331,532		44,329		1,339		377,200
Income (loss) before income taxes	204,589		14,180		(4,230)		214,539
Income tax expense (benefit)	32,719		2,978		(1,367)		34,330
Net income (loss)	171,870		11,202		(2,863)		180,209
Preferred stock dividends	—		—		1,668		1,668
Net income (loss) available to common shareholders	$	171,870	$	11,202	$	(4,531)	$	178,541
Revenues from (expenses to) external customers	$	548,211	$	58,509	$	(2,891)	$	603,829
Average assets (in millions)	$	54,024	$	80	$	11	$	54,115

	Banking		Wealth Management		Non-Banks		Consolidated
Three months ended:
September 30, 2025
Interest income	$	618,033	$	2,072	$	—	$	620,105
Interest expense	175,279		104		3,104		178,487
Net interest income (expense)	442,754		1,968		(3,104)		441,618
Credit loss expense	6,779		—		—		6,779
Net interest income after credit loss expense	435,975		1,968		(3,104)		434,839
Non-interest income:
Trust and investment management fees	—		45,021		(175)		44,846
Service charges on deposit accounts	31,436		4		—		31,440
Insurance commissions and fees	15,424		—		—		15,424
Interchange and card transaction fees	5,547		—		—		5,547
Other charges, commissions and fees	8,356		6,374		—		14,730
Net gain (loss) on securities transactions	—		—		—		—
Other	11,941		1,662		57		13,660
Total non-interest income	72,704		53,061		(118)		125,647
Non-interest expense:
Salaries and wages	147,908		20,852		395		169,155
Employee benefits	31,151		3,289		25		34,465
Net occupancy	31,197		3,485		—		34,682
Technology, furniture and equipment	41,611		1,820		48		43,479
Deposit insurance	6,315		13		—		6,328
Other	50,120		13,775		474		64,369
Total non-interest expense	308,302		43,234		942		352,478
Income (loss) before income taxes	200,377		11,795		(4,164)		208,008
Income tax expense (benefit)	32,591		2,477		(1,440)		33,628
Net income (loss)	167,786		9,318		(2,724)		174,380
Preferred stock dividends	—		—		1,668		1,668
Net income (loss) available to common shareholders	$	167,786	$	9,318	$	(4,392)	$	172,712
Revenues from (expenses to) external customers	$	515,458	$	55,029	$	(3,222)	$	567,265
Average assets (in millions)	$	51,828	$	74	$	9	$	51,911

	Banking		Wealth Management		Non-Banks		Consolidated
Nine months ended:
September 30, 2026
Interest income	$	1,799,074	$	5,434	$	—	$	1,804,508
Interest expense	441,434		243		8,714		450,391
Net interest income (expense)	1,357,640		5,191		(8,714)		1,354,117
Credit loss expense	28,602		—		—		28,602
Net interest income after credit loss expense	1,329,038		5,191		(8,714)		1,325,515
Non-interest income:
Trust and investment management fees	—		145,322		(250)		145,072
Service charges on deposit accounts	102,623		15		—		102,638
Insurance commissions and fees	52,079		—		—		52,079
Interchange and card transaction fees	19,921		—		—		19,921
Other charges, commissions and fees	23,073		17,893		—		40,966
Net gain (loss) on securities transactions	(7,512)		—		—		(7,512)
Other	43,547		3,685		162		47,394
Total non-interest income	233,731		166,915		(88)		400,558
Non-interest expense:
Salaries and wages	458,478		61,585		1,265		521,328
Employee benefits	101,059		12,324		78		113,461
Net occupancy	94,653		11,172		(1)		105,824
Technology, furniture and equipment	125,637		4,589		157		130,383
Deposit insurance	20,417		32		—		20,449
Other	164,975		44,196		3,970		213,141
Total non-interest expense	965,219		133,898		5,469		1,104,586
Income (loss) before income taxes	597,550		38,208		(14,271)		621,487
Income tax expense (benefit)	94,729		8,024		(4,521)		98,232
Net income (loss)	502,821		30,184		(9,750)		523,255
Preferred stock dividends	—		—		5,006		5,006
Net income (loss) available to common shareholders	$	502,821	$	30,184	$	(14,756)	$	518,249
Revenues from (expenses to) external customers	$	1,591,371	$	172,106	$	(8,802)	$	1,754,675
Average assets (in millions)	$	52,885	$	80	$	9	$	52,974

	Banking		Wealth Management		Non-Banks		Consolidated
Nine months ended:
September 30, 2025
Interest income	$	1,801,149	$	6,031	$	—	$	1,807,180
Interest expense	510,129		292		9,317		519,738
Net interest income (expense)	1,291,020		5,739		(9,317)		1,287,442
Credit loss expense	32,978		—		—		32,978
Net interest income after credit loss expense	1,258,042		5,739		(9,317)		1,254,464
Non-interest income:
Trust and investment management fees	—		132,409		(963)		131,446
Service charges on deposit accounts	89,203		9		—		89,212
Insurance commissions and fees	50,322		—		—		50,322
Interchange and card transaction fees	16,568		—		—		16,568
Other charges, commissions and fees	23,793		18,490		—		42,283
Net gain (loss) on securities transactions	(14)		—		—		(14)
Other	32,328		4,613		173		37,114
Total non-interest income	212,200		155,521		(790)		366,931
Non-interest expense:
Salaries and wages	431,089		59,885		1,187		492,161
Employee benefits	97,733		11,640		75		109,448
Net occupancy	91,826		10,773		—		102,599
Technology, furniture and equipment	119,346		4,672		151		124,169
Deposit insurance	20,065		37		—		20,102
Other	155,360		39,829		4,004		199,193
Total non-interest expense	915,419		126,836		5,417		1,047,672
Income (loss) before income taxes	554,823		34,424		(15,524)		573,723
Income tax expense (benefit)	89,008		7,229		(4,819)		91,418
Net income (loss)	465,815		27,195		(10,705)		482,305
Preferred stock dividends	—		—		5,006		5,006
Net income (loss) available to common shareholders	$	465,815	$	27,195	$	(15,711)	$	477,299
Revenues from (expenses to) external customers	$	1,503,220	$	161,260	$	(10,107)	$	1,654,373
Average assets (in millions)	$	51,265	$	70	$	9	$	51,344