Cullen/Frost Bankers (NYSE:CFR) Announces Quarterly Earnings Results, Beats Expectations By $0.15 EPS

Cullen/Frost Bankers (NYSE:CFR) issued its earnings results on Thursday. The bank reported $2.70 EPS for the quarter, topping analysts’ consensus estimates of $2.55 by $0.15, Zacks reports. The company had revenue of $608.65 million for the quarter, compared to the consensus estimate of $589.72 million. Cullen/Frost Bankers had a net margin of 22.86% and a return on equity of 15.58%. During the same period in the previous year, the firm earned $2.39 earnings per share.

Here are the key takeaways from Cullen/Frost Bankers’ conference call:

• Second-quarter earnings increased 9.7% year over year to $170.4 million, or $2.70 per share, while average loans grew 7.1% and deposits rose 1.9%.
• Cullen/Frost raised its 2026 outlook for average loan growth to 7%–8% and net interest income growth to 4.75%–5.25%; management also expects 8.5% fee-income growth and lower expense growth of 4.5%–5%.
• The branch expansion generated $0.16 of second-quarter EPS accretion and has now produced $3 billion in loans, $3.7 billion in deposits, and more than 100,000 new households; five additional branches are planned for the remainder of 2026.
• Competition is intensifying in Texas, particularly for commercial real estate loans and large deposit balances, increasing pressure on loan structures, pricing, and deposit costs.
• Credit quality remained generally sound, but non-performing assets rose to $114 million, primarily due to a $54 million multifamily loan expected to be resolved through a property sale in the third or fourth quarter; full-year net charge-offs are projected at 15–20 basis points.

Cullen/Frost Bankers Stock Down 1.8%

Cullen/Frost Bankers stock traded down $3.08 during midday trading on Thursday, reaching $163.85. The company’s stock had a trading volume of 853,154 shares, compared to its average volume of 573,781. The business has a 50-day simple moving average of $150.47 and a 200-day simple moving average of $143.26. The company has a market cap of $10.29 billion, a P/E ratio of 15.95, a P/E/G ratio of 2.98 and a beta of 0.54. Cullen/Frost Bankers has a fifty-two week low of $119.00 and a fifty-two week high of $169.09. The company has a quick ratio of 0.65, a current ratio of 0.65 and a debt-to-equity ratio of 0.05.

Cullen/Frost Bankers Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, September 15th. Shareholders of record on Monday, August 31st will be paid a $1.03 dividend. The ex-dividend date is Monday, August 31st. This represents a $4.12 dividend on an annualized basis and a yield of 2.5%. Cullen/Frost Bankers’s dividend payout ratio (DPR) is currently 40.12%.

Analyst Upgrades and Downgrades

Several equities analysts have recently commented on the company. Jefferies Financial Group raised Cullen/Frost Bankers from an “underperform” rating to a “hold” rating and upped their price target for the company from $135.00 to $160.00 in a research note on Monday, July 6th. Raymond James Financial reissued a “market perform” rating on shares of Cullen/Frost Bankers in a research report on Wednesday, July 1st. Cantor Fitzgerald upped their target price on shares of Cullen/Frost Bankers from $154.00 to $158.00 and gave the company a “neutral” rating in a research report on Wednesday, July 15th. Stephens raised shares of Cullen/Frost Bankers from a “hold” rating to a “strong-buy” rating in a research note on Thursday, July 9th. Finally, Barclays lifted their price target on shares of Cullen/Frost Bankers from $155.00 to $160.00 and gave the company an “equal weight” rating in a research report on Tuesday, July 7th. Two research analysts have rated the stock with a Strong Buy rating, two have given a Buy rating, seven have given a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, Cullen/Frost Bankers presently has a consensus rating of “Hold” and a consensus target price of $152.42.

More Cullen/Frost Bankers News

Here are the key news stories impacting Cullen/Frost Bankers this week:

• Positive Sentiment: Quarterly earnings exceeded expectations. Cullen/Frost reported diluted EPS of $2.70, up from $2.39 a year earlier and above the $2.53–$2.55 consensus range. Revenue reached approximately $608.7 million versus estimates of $589.7 million. Cullen/Frost Bankers Surpasses Q2 Earnings and Revenue Estimates
• Positive Sentiment: Profitability and lending trends improved. Net income available to common shareholders rose to $170.4 million from $155.3 million. Net interest income increased 4.3% year over year, while average loans grew 7.4% to $22.6 billion. Non-interest income also advanced 9.4% to $128.3 million. Cullen/Frost Reports Second Quarter Results
• Positive Sentiment: Dividend and capital returns remain attractive. The board declared a $1.03-per-share third-quarter common dividend, equivalent to a $4.12 annualized payout and roughly a 2.5% yield. Cullen/Frost also repurchased 654,955 shares for $90 million during the quarter. The dividend is payable September 15 to shareholders of record August 31.
• Neutral Sentiment: The bank maintained solid profitability, with a reported 22.86% net margin and 15.58% return on equity. However, average deposits grew only 2.1% to $42.6 billion, and non-interest expense increased 4.2% to $361.7 million, tempering the otherwise strong operating update. Cullen/Frost Q2 Net Income Rises
• Negative Sentiment: The stock declined despite the earnings beat. With shares trading near their 12-month high and above both their 50-day and 200-day moving averages, investors may have been taking profits or expecting an even stronger outlook. No new guidance or major forward-looking catalyst was highlighted in the reported results.

Insider Activity at Cullen/Frost Bankers

In related news, EVP Carol Jean Severyn sold 837 shares of the business’s stock in a transaction on Friday, June 12th. The shares were sold at an average price of $148.29, for a total value of $124,118.73. Following the completion of the sale, the executive vice president directly owned 12,712 shares of the company’s stock, valued at $1,885,062.48. The trade was a 6.18% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 1.14% of the stock is owned by company insiders.

Institutional Trading of Cullen/Frost Bankers

Several institutional investors and hedge funds have recently bought and sold shares of the business. Dimensional Fund Advisors LP boosted its stake in shares of Cullen/Frost Bankers by 9.0% during the fourth quarter. Dimensional Fund Advisors LP now owns 1,293,964 shares of the bank’s stock valued at $163,862,000 after acquiring an additional 106,558 shares during the last quarter. Bank of America Corp DE raised its holdings in shares of Cullen/Frost Bankers by 8.5% during the third quarter. Bank of America Corp DE now owns 1,129,673 shares of the bank’s stock valued at $143,209,000 after buying an additional 88,080 shares during the last quarter. Northern Trust Corp raised its stake in shares of Cullen/Frost Bankers by 2.3% during the third quarter. Northern Trust Corp now owns 965,821 shares of the bank’s stock valued at $122,437,000 after purchasing an additional 21,793 shares in the last quarter. First Trust Advisors LP increased its stake in shares of Cullen/Frost Bankers by 5.5% during the fourth quarter. First Trust Advisors LP now owns 744,009 shares of the bank’s stock valued at $94,214,000 after acquiring an additional 38,908 shares during the period. Finally, Morgan Stanley raised its position in Cullen/Frost Bankers by 34.6% in the fourth quarter. Morgan Stanley now owns 641,890 shares of the bank’s stock worth $81,283,000 after acquiring an additional 164,854 shares in the last quarter. Hedge funds and other institutional investors own 86.90% of the company’s stock.

Cullen/Frost Bankers Company Profile

Cullen/Frost Bankers, Inc is the holding company for Frost Bank, a Texas-chartered financial institution whose origins date back to 1868 in San Antonio. As one of the oldest banking organizations in the state, it offers a broad range of services to individuals, small and large businesses, and institutional clients. Core banking activities include commercial lending, deposit services, cash management and trade finance, while consumer products cover residential mortgages, personal lines of credit and home equity loans.

Beyond traditional banking, the company provides comprehensive treasury and equipment leasing solutions tailored to support working capital and capital expenditure requirements.