Cullen/Frost Bankers (NYSE:CFR) Posts Quarterly Earnings Results, Beats Expectations By $0.19 EPS

Cullen/Frost Bankers (NYSE:CFR) issued its quarterly earnings results on Thursday. The bank reported $2.65 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.46 by $0.19, Zacks reports. The business had revenue of $1.04 billion for the quarter, compared to analyst estimates of $585.32 million. Cullen/Frost Bankers had a net margin of 22.21% and a return on equity of 15.49%. During the same period in the previous year, the business posted $2.30 earnings per share.

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 Price Performance

Shares of NYSE:CFR traded up $2.36 on Thursday, hitting $145.16. The company had a trading volume of 780,245 shares, compared to its average volume of 464,141. The company has a market cap of $9.14 billion, a PE ratio of 14.63, a PEG ratio of 3.95 and a beta of 0.61. The company has a current ratio of 0.67, a quick ratio of 0.67 and a debt-to-equity ratio of 0.05. The business has a 50 day moving average of $138.96 and a 200 day moving average of $133.57. Cullen/Frost Bankers has a 52-week low of $116.47 and a 52-week 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 issued a $1.03 dividend. This represents a $4.12 dividend on an annualized basis and a dividend yield of 2.8%. This is a positive change from Cullen/Frost Bankers’s previous quarterly dividend of $1.00. The ex-dividend date of this dividend is Friday, May 29th. Cullen/Frost Bankers’s payout ratio is presently 40.32%.

Cullen/Frost Bankers News Summary

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

• Positive Sentiment: Q1 results beat consensus — Cullen/Frost reported EPS of $2.65 vs. the $2.46 consensus and disclosed $1.04B in revenue, well above expectations; the beat and stronger top-line drove immediate market optimism. Cullen/Frost Bankers (CFR) Q1 Earnings and Revenues Top Estimates
• Positive Sentiment: Net income and profitability improved — company press release shows Q1 net income available to common shareholders rose to $169.3M from $149.3M a year earlier, underscoring margin strength and higher ROE noted in the quarter. CULLEN/FROST REPORTS FIRST QUARTER RESULTS
• Positive Sentiment: Dividend increased — board raised the quarterly common dividend 3% to $1.03 per share (annualized yield ~2.8%); record/ex-dividend dates were provided, which supports income-focused investors. (Dividend announcement accompanying the Q1 release.)
• Positive Sentiment: Shareholder votes supportive — at the April 29 annual meeting shareholders backed directors, executive pay and auditors, reducing near-term governance uncertainty. Cullen/Frost Shareholders Back Directors, Pay and Auditors
• Neutral Sentiment: Conference call timing/info — the company rescheduled its earnings conference call and posted the release and call details on the investor site; useful for investors wanting management color but not a catalytic item. Cullen/Frost Bankers, Inc. reschedules earnings conference call

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on CFR shares. Cantor Fitzgerald lifted their price objective on Cullen/Frost Bankers from $141.00 to $152.00 and gave the company a “neutral” rating in a report on Tuesday, March 3rd. Keefe, Bruyette & Woods increased their target price on Cullen/Frost Bankers from $150.00 to $160.00 and gave the stock an “outperform” rating in a research note on Friday, January 30th. Morgan Stanley decreased their price target on Cullen/Frost Bankers from $143.00 to $133.00 and set an “underweight” rating on the stock in a research note on Tuesday, March 31st. DA Davidson upped their price objective on Cullen/Frost Bankers from $136.00 to $144.00 and gave the stock a “neutral” rating in a report on Friday, January 30th. Finally, Barclays increased their price objective on Cullen/Frost Bankers from $150.00 to $155.00 and gave the stock an “equal weight” rating in a research report on Tuesday, April 7th. One analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, six have given a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and an average target price of $142.25.

Insider Activity at Cullen/Frost Bankers

In other news, EVP Bobby Berman sold 1,000 shares of the business’s stock in a transaction that occurred on Friday, January 30th. The shares were sold at an average price of $137.07, for a total value of $137,070.00. Following the completion of the transaction, the executive vice president owned 28,406 shares of the company’s stock, valued at $3,893,610.42. The trade was a 3.40% decrease in their ownership of the stock. 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 Trading of Cullen/Frost Bankers

A number of hedge funds have recently bought and sold shares of CFR. Two Sigma Investments LP grew its stake in Cullen/Frost Bankers by 2,024.4% in the 3rd quarter. Two Sigma Investments LP now owns 373,977 shares of the bank’s stock worth $47,409,000 after acquiring an additional 356,373 shares during the period. Millennium Management LLC purchased a new position in shares of Cullen/Frost Bankers during the 3rd quarter worth $29,687,000. UBS Group AG boosted its holdings in shares of Cullen/Frost Bankers by 197.5% during the third quarter. UBS Group AG now owns 349,601 shares of the bank’s stock worth $44,319,000 after purchasing an additional 232,077 shares during the last quarter. Goldman Sachs Group Inc. boosted its holdings in shares of Cullen/Frost Bankers by 61.6% during the first quarter. Goldman Sachs Group Inc. now owns 605,697 shares of the bank’s stock worth $75,833,000 after purchasing an additional 230,993 shares during the last quarter. Finally, Morgan Stanley grew its position in shares of Cullen/Frost Bankers by 34.6% in the fourth quarter. Morgan Stanley now owns 641,890 shares of the bank’s stock valued at $81,283,000 after purchasing an additional 164,854 shares during the period. Institutional investors and hedge funds 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.