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

Posted by Brenda Bartman on Jul 30th, 2026

Cullen/Frost Bankers (NYSE:CFR – Get Free Report) announced its quarterly earnings results on Thursday. The bank reported $2.70 EPS for the quarter, beating analysts’ consensus estimates of $2.55 by $0.15, Zacks reports. The firm had revenue of $608.65 million during 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 quarter last year, the firm earned $2.39 EPS.

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 Trading Down 1.8%

Shares of CFR stock traded down $3.08 on Thursday, reaching $163.85. 853,154 shares of the company’s stock were exchanged, compared to its average volume of 569,022. The company’s fifty day simple moving average is $150.97 and its 200 day simple moving average is $143.46. Cullen/Frost Bankers has a 52 week low of $119.00 and a 52 week high of $169.09. The company has a current ratio of 0.65, a quick ratio of 0.65 and a debt-to-equity ratio of 0.05. The stock has a market capitalization of $10.29 billion, a PE ratio of 16.24, a P/E/G ratio of 2.98 and a beta of 0.54.

Cullen/Frost Bankers Announces Dividend

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

Wall Street Analysts Forecast Growth

CFR has been the topic of a number of recent research reports. TD Cowen upgraded Cullen/Frost Bankers to a “strong-buy” rating in a research report on Monday, April 13th. DA Davidson boosted their target price on Cullen/Frost Bankers from $143.00 to $144.00 and gave the company a “neutral” rating in a research report on Monday, May 4th. Weiss Ratings restated a “buy (b)” rating on shares of Cullen/Frost Bankers in a research report on Wednesday, July 15th. Jefferies Financial Group raised shares of Cullen/Frost Bankers from an “underperform” rating to a “hold” rating and lifted their price objective for the stock from $135.00 to $160.00 in a research note on Monday, July 6th. Finally, Royal Bank Of Canada boosted their price objective on shares of Cullen/Frost Bankers from $150.00 to $155.00 and gave the company a “sector perform” rating in a research report on Friday, May 1st. Two research analysts have rated the stock with a Strong Buy rating, two have assigned a Buy rating, seven have assigned a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus price target of $152.42.

Get Our Latest Stock Analysis on CFR

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.

Insider Buying and Selling

In other Cullen/Frost Bankers news, EVP Carol Jean Severyn sold 837 shares of the company’s stock in a transaction on Friday, June 12th. The stock was sold at an average price of $148.29, for a total value of $124,118.73. Following the transaction, the executive vice president owned 12,712 shares of the company’s stock, valued at $1,885,062.48. This represents a 6.18% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. 1.14% of the stock is owned by company insiders.

Institutional Trading of Cullen/Frost Bankers

A number of large investors have recently made changes to their positions in the stock. Advisory Services Network LLC bought a new stake in Cullen/Frost Bankers during the 3rd quarter valued at about $28,000. Geneos Wealth Management Inc. grew its stake 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 acquiring an additional 106 shares in the last quarter. Danske Bank A S purchased a new position in shares of Cullen/Frost Bankers during the third quarter worth approximately $63,000. Los Angeles Capital Management LLC purchased a new position in shares of Cullen/Frost Bankers during the fourth quarter worth approximately $66,000. Finally, Quarry LP raised its stake in shares of Cullen/Frost Bankers by 231.3% during the fourth quarter. Quarry LP now owns 772 shares of the bank’s stock valued at $98,000 after acquiring an additional 539 shares in the last quarter. 86.90% of the stock is owned by hedge funds and other institutional investors.

Cullen/Frost Bankers Company Profile

(Get Free Report)

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.