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, beating analysts’ consensus estimates of $2.55 by $0.15, Zacks reports. Cullen/Frost Bankers had a net margin of 22.86% and a return on equity of 15.58%. The firm had revenue of $608.65 million for the quarter, compared to the consensus estimate of $589.72 million. During the same period in the previous year, the firm 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 Down 1.8%

CFR stock traded down $3.08 during midday trading on Thursday, hitting $163.85. The company’s stock had a trading volume of 853,154 shares, compared to its average volume of 573,781. The company has a debt-to-equity ratio of 0.05, a current ratio of 0.65 and a quick ratio of 0.65. Cullen/Frost Bankers has a twelve month low of $119.00 and a twelve month high of $169.09. The company’s fifty day moving average price is $150.47 and its 200 day moving average price is $143.26. The stock has a market capitalization of $10.29 billion, a P/E ratio of 15.95, a PEG ratio of 2.98 and a beta of 0.54.

Cullen/Frost Bankers Dividend Announcement

The firm also recently announced 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 of this dividend 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 40.12%.

Insider Activity at Cullen/Frost Bankers

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 corporate insiders.

Institutional Trading of Cullen/Frost Bankers

Several institutional investors and hedge funds have recently bought and sold shares of CFR. Advisory Services Network LLC acquired a new stake in Cullen/Frost Bankers during the 3rd quarter worth approximately $28,000. Geneos Wealth Management Inc. lifted its stake in Cullen/Frost Bankers by 40.8% during the first quarter. Geneos Wealth Management Inc. now owns 366 shares of the bank’s stock worth $46,000 after purchasing an additional 106 shares during the last quarter. Danske Bank A S acquired a new stake in shares of Cullen/Frost Bankers in the 3rd quarter valued at $63,000. Los Angeles Capital Management LLC acquired a new position in shares of Cullen/Frost Bankers during the 4th quarter worth $66,000. Finally, Quarry LP lifted its position in shares of Cullen/Frost Bankers by 231.3% during the 4th quarter. Quarry LP now owns 772 shares of the bank’s stock worth $98,000 after buying an additional 539 shares during the last quarter. Institutional investors own 86.90% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of brokerages have weighed in on CFR. Barclays boosted their price target on Cullen/Frost Bankers from $155.00 to $160.00 and gave the stock an “equal weight” rating in a research report on Tuesday, July 7th. Citigroup increased their target price on shares of Cullen/Frost Bankers from $131.00 to $145.00 and gave the company a “sell” rating in a research note on Tuesday, June 30th. Morgan Stanley increased their price objective on shares of Cullen/Frost Bankers from $133.00 to $141.00 and gave the company an “underweight” rating in a research note on Monday, June 29th. Cantor Fitzgerald raised their target price on Cullen/Frost Bankers from $154.00 to $158.00 and gave the stock a “neutral” rating in a research report on Wednesday, July 15th. Finally, Raymond James Financial reissued a “market perform” rating on shares of Cullen/Frost Bankers in a report on Wednesday, July 1st. Two research analysts have rated the stock with a Strong Buy rating, two have issued a Buy rating, seven have assigned a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat.com, the company presently has a consensus rating of “Hold” and an average target price of $152.42.

Cullen/Frost Bankers News Summary

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.

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.