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

Cullen/Frost Bankers (NYSE:CFR) issued its quarterly earnings results on Thursday. The bank reported $2.70 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.55 by $0.15, Zacks reports. Cullen/Frost Bankers had a net margin of 29.29% and a return on equity of 15.64%. The business had revenue of $608.65 million for the quarter, compared to the consensus estimate of $589.72 million. During the same quarter in the prior year, the company 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 Stock Up 1.8%

NYSE CFR traded up $2.98 on Friday, reaching $166.47. The company had a trading volume of 890,504 shares, compared to its average volume of 590,498. The company’s fifty day moving average is $151.51 and its 200-day moving average is $143.62. The firm has a market capitalization of $10.45 billion, a price-to-earnings ratio of 15.73, a price-to-earnings-growth ratio of 2.92 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 business also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 15th. Stockholders of record on Monday, August 31st will be given a dividend of $1.03 per share. The ex-dividend date of this dividend is Monday, August 31st. This represents a $4.12 annualized dividend and a dividend yield of 2.5%. Cullen/Frost Bankers’s dividend payout ratio is currently 40.12%.

Insider Buying and Selling at Cullen/Frost Bankers

In other news, EVP Carol Jean Severyn sold 837 shares of Cullen/Frost Bankers stock in a transaction that occurred on Friday, June 12th. The shares were sold at an average price of $148.29, for a total value of $124,118.73. Following the sale, the executive vice president directly owned 12,712 shares in the company, valued at $1,885,062.48. This trade represents a 6.18% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 1.14% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the company. Advisory Services Network LLC bought a new position in shares of Cullen/Frost Bankers during the third quarter worth approximately $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 valued at $46,000 after buying an additional 106 shares in the last quarter. Danske Bank A S acquired a new position in Cullen/Frost Bankers in the 3rd quarter valued at $63,000. Los Angeles Capital Management LLC bought a new position in Cullen/Frost Bankers during the 4th quarter worth $66,000. Finally, Quarry LP lifted its holdings in shares of Cullen/Frost Bankers by 231.3% during the fourth 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. Institutional investors own 86.90% of the company’s stock.

Key Headlines Impacting Cullen/Frost Bankers

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

• Positive Sentiment: Q2 earnings beat expectations: Cullen/Frost reported $2.70 in diluted EPS, up from $2.39 a year earlier, exceeding the $2.55 consensus estimate. Revenue of approximately $608.7 million also surpassed the $589.7 million forecast. Cullen/Frost Reports Second Quarter Results
• Positive Sentiment: Healthy operating trends: Taxable-equivalent net interest income rose 4.3% year over year to $470.1 million, average loans increased 7.4% to $22.6 billion, and non-interest income climbed 9.4% to $128.3 million. Improved credit quality and a record loan pipeline also helped reinforce the growth outlook. Cullen-Frost Q2 Earnings Beat
• Positive Sentiment: More bullish analyst views: Stephens raised its price target from $169 to $183 and upgraded its stance to “overweight.” Keefe, Bruyette & Woods lifted its target to $175 with an “outperform” rating, while RBC raised its target to $176 but maintained a “sector perform” rating. Analyst Price Target Updates
• Positive Sentiment: Capital returns remain supportive: The bank declared a quarterly common-stock dividend of $1.03 per share, representing an annualized yield of roughly 2.5%, and repurchased approximately $90 million of its shares during the quarter.
• Neutral Sentiment: Mixed analyst consensus: Despite the target increases, brokerages collectively maintain an average “hold” recommendation, suggesting that some investors view the recent gains and valuation as largely reflected in the stock price. Average Hold Recommendation
• Negative Sentiment: Expense growth remains a consideration: Non-interest expense rose 4.2% year over year to $361.7 million, which could limit profit expansion if operating costs accelerate faster than revenue.

Analysts Set New Price Targets

A number of equities research analysts recently commented on CFR shares. Morgan Stanley upped their price objective on Cullen/Frost Bankers from $133.00 to $141.00 and gave the company an “underweight” rating in a report on Monday, June 29th. Barclays upped their price target on Cullen/Frost Bankers from $155.00 to $160.00 and gave the company an “equal weight” rating in a research note on Tuesday, July 7th. Cantor Fitzgerald increased their price target on shares of Cullen/Frost Bankers from $154.00 to $158.00 and gave the company a “neutral” rating in a research report on Wednesday, July 15th. Weiss Ratings restated a “buy (b)” rating on shares of Cullen/Frost Bankers in a report on Wednesday, July 15th. Finally, Keefe, Bruyette & Woods upped their target price on shares of Cullen/Frost Bankers from $165.00 to $175.00 and gave the company an “outperform” rating in a research note on Friday. One research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, seven have given a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat, Cullen/Frost Bankers has an average rating of “Hold” and a consensus target price of $157.00.

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.