Cullen/Frost Bankers (NYSE:CFR) Issues Earnings Results

Cullen/Frost Bankers (NYSE:CFR) posted its quarterly earnings data on Thursday. The bank reported $2.65 earnings per share for the quarter, beating analysts’ consensus estimates of $2.49 by $0.16, Zacks reports. Cullen/Frost Bankers had a net margin of 22.21% and a return on equity of 15.49%. The company had revenue of $1.04 billion during the quarter, compared to analysts’ expectations of $587.29 million. During the same period in the prior year, the company posted $2.30 EPS.

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

• Q1 results — Net income was $169.3 million (up 13.4% Y/Y) and EPS was $2.65 (up 15.2% Y/Y), with ROA 1.32% and ROE 15.15%.
• Branch expansion is driving durable organic growth — expansion branches now hold $2.9B in loans, $3.6B in deposits, ~95,000 new households and contributed $0.14 (5.6%) of EPS; management plans 10–12 new branches for the rest of 2026.
• Commercial pipeline strength — gross pipeline hit $6.8B (up 55% QoQ) and the 90?day weighted pipeline reached almost $2.0B (up 38% QoQ), both all?time highs.
• Asset?quality watch — NPAs and net charge?offs remained low, but total problem loans rose to $989M (from $857M), driven by risk?grade 10 loans; management expects sizable resolutions in Q2–Q3.
• Investment and funding picture — unrealized losses on AFS securities increased to $1.15B while portfolio yields ticked up and NIM rose to 3.74%; deposits declined seasonally and the cost of interest?bearing deposits fell to 1.55%.

Cullen/Frost Bankers Stock Performance

Shares of Cullen/Frost Bankers stock traded down $4.31 on Friday, reaching $140.62. 649,664 shares of the company were exchanged, compared to its average volume of 550,727. The company has a debt-to-equity ratio of 0.05, a quick ratio of 0.67 and a current ratio of 0.67. The company’s 50-day moving average is $138.96 and its two-hundred day moving average is $133.57. The firm has a market cap of $8.85 billion, a price-to-earnings ratio of 14.18, a P/E/G ratio of 3.95 and a beta of 0.61. Cullen/Frost Bankers has a 1-year low of $119.00 and a 1-year high of $148.97.

Cullen/Frost Bankers Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, June 15th. Stockholders of record on Friday, May 29th will be given a dividend of $1.03 per share. This represents a $4.12 dividend on an annualized basis and a dividend yield of 2.9%. The ex-dividend date is Friday, May 29th. This is a positive change from Cullen/Frost Bankers’s previous quarterly dividend of $1.00. Cullen/Frost Bankers’s payout ratio is currently 40.32%.

Institutional Investors Weigh In On Cullen/Frost Bankers

Hedge funds have recently added to or reduced their stakes in the stock. Advisory Services Network LLC bought a new stake in Cullen/Frost Bankers in the third quarter valued at $28,000. Geneos Wealth Management Inc. grew its holdings in Cullen/Frost Bankers by 40.8% in the 1st quarter. Geneos Wealth Management Inc. now owns 366 shares of the bank’s stock worth $46,000 after buying an additional 106 shares in the last quarter. Danske Bank A S bought a new position in Cullen/Frost Bankers in the 3rd quarter worth approximately $63,000. Los Angeles Capital Management LLC bought a new position in Cullen/Frost Bankers in the 4th quarter worth approximately $66,000. Finally, Quarry LP grew its holdings in Cullen/Frost Bankers by 231.3% in the 4th quarter. Quarry LP now owns 772 shares of the bank’s stock worth $98,000 after buying an additional 539 shares in the last quarter. 86.90% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

A number of brokerages have weighed in on CFR. Citigroup raised their price objective on Cullen/Frost Bankers from $114.00 to $125.00 and gave the company a “sell” rating in a research note on Monday, February 2nd. TD Cowen upgraded Cullen/Frost Bankers to a “strong-buy” rating in a research note on Monday, April 13th. Barclays lifted their price target on shares of Cullen/Frost Bankers from $150.00 to $155.00 and gave the stock an “equal weight” rating in a research note on Tuesday, April 7th. Royal Bank Of Canada lifted their price target on shares of Cullen/Frost Bankers from $150.00 to $155.00 and gave the stock a “sector perform” rating in a research note on Friday. Finally, DA Davidson lifted their price target on shares of Cullen/Frost Bankers from $136.00 to $144.00 and gave the stock a “neutral” rating in a research note on Friday, January 30th. One research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, six have issued a Hold rating and three have issued a Sell rating to the company. According to MarketBeat.com, Cullen/Frost Bankers currently has an average rating of “Hold” and a consensus price target of $142.67.

Key Stories Impacting Cullen/Frost Bankers

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

• Positive Sentiment: First?quarter results beat expectations — EPS of $2.65 topped consensus and revenue showed a large upside, driven by higher net interest income and fee income, supporting the bank’s core earnings strength. Zacks: Q1 Earnings Beat
• Positive Sentiment: Dividend hike announced — board raised the quarterly payout to $1.03 (3% increase), implying a ~2.8% yield and reinforcing income appeal for investors. PR Newswire: Q1 Results & Dividend
• Positive Sentiment: Analyst target increased — RBC raised its price target to $155 (sector perform), implying roughly ~10% upside from the recent price, which can provide support to the shares. Benzinga: RBC Raises Target
• Neutral Sentiment: Corporate housekeeping — shareholders approved directors’ pay and auditors at the annual meeting; the company also rescheduled the earnings conference call (logistics, not material fundamentals). TipRanks: Shareholder Votes PR Newswire: Call Rescheduled
• Negative Sentiment: Rising operating expenses — analysts and the company call out higher expenses as a drag on profitability despite revenue gains, which may temper enthusiasm and pressure the multiple investors are willing to pay. Zacks: Expenses Weigh on Profitability

About Cullen/Frost Bankers

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.