Cullen/Frost Bankers (NYSE:CFR) Posts Earnings Results, Beats Estimates By $0.15 EPS

Cullen/Frost Bankers (NYSE:CFR) announced its quarterly earnings data on Thursday. The bank reported $2.70 EPS for the quarter, topping analysts’ consensus estimates of $2.55 by $0.15, Zacks reports. The business had revenue of $608.65 million during the quarter, compared to the consensus estimate of $589.72 million. Cullen/Frost Bankers had a return on equity of 15.58% and a net margin of 22.86%.During the same period in the previous year, the company posted $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 Up 1.8%

NYSE CFR traded up $2.92 on Friday, reaching $166.41. The company had a trading volume of 345,533 shares, compared to its average volume of 572,002. The company’s fifty day moving average is $150.97 and its 200-day moving average is $143.46. The firm has a market capitalization of $10.45 billion, a price-to-earnings ratio of 16.20, a price-to-earnings-growth ratio of 2.98 and a beta of 0.54. The company has a debt-to-equity ratio of 0.05, a quick ratio of 0.65 and a current ratio of 0.65. Cullen/Frost Bankers has a 1-year low of $119.00 and a 1-year high of $169.09.

Cullen/Frost Bankers Dividend Announcement

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

Key Cullen/Frost Bankers News

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

• Positive Sentiment: Q2 earnings and revenue exceeded expectations. Cullen/Frost reported diluted EPS of $2.70, up from $2.39 a year earlier and above the roughly $2.53–$2.55 analyst consensus. Revenue reached approximately $608.7 million versus estimates of $589.7 million. Cullen/Frost Bankers Surpasses Q2 Earnings and Revenue Estimates
• Positive Sentiment: Core banking trends were strong. Tax-equivalent net interest income increased 4.3% year over year to $470.1 million, non-interest income rose 9.4% to $128.3 million, and average loans grew 7.4% to $22.6 billion. Management also highlighted a record loan pipeline and improved credit quality, helping offset higher operating expenses. Cullen/Frost Q2 Earnings Beat
• Positive Sentiment: Analysts raised their targets. Stephens increased its target from $169 to $183 and maintained an “overweight” rating, while Keefe, Bruyette & Woods lifted its target from $165 to $175 and assigned an “outperform” rating. Analyst Price Target Reports
• Positive Sentiment: Shareholder returns remain supportive. Cullen/Frost declared a quarterly common-stock dividend of $1.03 per share, representing an annualized yield of approximately 2.5%, and repurchased about 655,000 shares for $90 million during the quarter. Cullen/Frost Reports Second Quarter Results
• Neutral Sentiment: Broker sentiment is mixed. Despite the recent target increases, the overall brokerage consensus remains “Hold,” suggesting investors may view the strong results as partly reflected in CFR’s valuation. Cullen/Frost Receives Average Hold Recommendation

Insiders Place Their Bets

In other news, EVP Carol Jean Severyn sold 837 shares of the stock in a transaction dated Friday, June 12th. The shares were sold at an average price of $148.29, for a total transaction of $124,118.73. Following the completion of the transaction, the executive vice president directly owned 12,712 shares in the company, valued at $1,885,062.48. This represents a 6.18% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. 1.14% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Cullen/Frost Bankers

Institutional investors and hedge funds have recently made changes to their positions in the stock. Dimensional Fund Advisors LP grew its position in shares of Cullen/Frost Bankers by 9.0% in the 4th 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 period. Bank of America Corp DE raised its stake in Cullen/Frost Bankers by 8.5% in 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 period. Northern Trust Corp lifted its position in shares of Cullen/Frost Bankers by 2.3% in the third quarter. Northern Trust Corp now owns 965,821 shares of the bank’s stock valued at $122,437,000 after buying an additional 21,793 shares during the last quarter. First Trust Advisors LP boosted its stake in shares of Cullen/Frost Bankers by 5.5% during the 4th quarter. First Trust Advisors LP now owns 744,009 shares of the bank’s stock worth $94,214,000 after acquiring an additional 38,908 shares during the period. Finally, Morgan Stanley increased its holdings in shares of Cullen/Frost Bankers by 34.6% during the 4th quarter. Morgan Stanley now owns 641,890 shares of the bank’s stock worth $81,283,000 after acquiring an additional 164,854 shares during the last quarter. Institutional investors own 86.90% of the company’s stock.

Wall Street Analysts Forecast Growth

Several equities analysts have issued reports on the company. Royal Bank Of Canada raised their price objective on Cullen/Frost Bankers from $150.00 to $155.00 and gave the stock a “sector perform” rating in a report on Friday, May 1st. Raymond James Financial reissued a “market perform” rating on shares of Cullen/Frost Bankers in a research report on Wednesday, July 1st. Barclays upped their price objective 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. DA Davidson lifted their price target on Cullen/Frost Bankers from $143.00 to $144.00 and gave the company a “neutral” rating in a report on Monday, May 4th. Finally, Weiss Ratings reiterated a “buy (b)” rating on shares of Cullen/Frost Bankers in a research report on Wednesday, July 15th. One research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, seven have given a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Hold” and an average price target of $155.25.

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.