Core Insights - Cullen/Frost Bankers, Inc. (CFR) reported strong fourth-quarter 2025 adjusted earnings per share of $2.57, exceeding the Zacks Consensus Estimate of $2.47, and up from $2.36 in the prior-year quarter [1][9] - The results were driven by increased net interest income and non-interest income, supported by growth in loan and deposit balances, although elevated non-interest expenses posed a challenge [1][14] Financial Performance - The company reported net income available to common shareholders of $164.6 million for Q4 2025, a 7.4% increase from $153.2 million in Q4 2024 [2] - For the full year 2025, adjusted earnings per share reached $9.92, surpassing the Zacks Consensus Estimate of $9.84, and increased from $8.88 in the previous year [2] - Total revenues for Q4 2025 were $603.4 million, exceeding the Zacks Consensus Estimate by 3% and improving from $556.44 million year-over-year [3] - Annual revenues for 2025 were $2.32 billion, beating the Zacks Consensus Estimate of $2.30 billion and up from $2.15 billion in 2024 [3] Income Breakdown - Net interest income (NII) rose 8.6% year-over-year to $471.2 million, with the net interest margin (NIM) expanding 13 basis points to 3.66% [4] - Non-interest income increased 7.6% year-over-year to $132.2 million, driven by higher trust and investment management fees, service charges, and increased income from derivatives trading [5] Expense Analysis - Non-interest expenses totaled $371.7 million, a 10.6% increase year-over-year, primarily due to higher salaries, employee benefits, and one-time expenses [6] - The increase in expenses was partially offset by a reversal related to a special FDIC insurance assessment [6] Loan and Deposit Growth - Total loans for Q4 2025 were $21.9 billion, reflecting a 2.1% increase from the prior quarter, while deposits were $43.3 billion, up nearly 1% sequentially [7] Credit Quality - Credit loss expenses for Q4 2025 were $11.2 million, down from $16.2 million in the prior-year quarter, with net charge-offs decreasing to $5.8 million from $14.0 million [8] - The allowance for credit losses on loans was 1.29% of total loans, slightly down from 1.30% a year ago [8] Capital and Profitability Ratios - As of December 31, 2025, the common equity Tier 1 risk-based capital ratio was 14.06%, up from 13.62% year-over-year [11] - Return on average assets was 1.24%, compared to 1.16% in the prior-year quarter, while return on average common equity was 15.66%, down from 15.81% [12] Shareholder Returns - The company declared a first-quarter cash dividend of $1.00 per common share, payable on March 13, 2026 [13] - In Q4, CFR repurchased 653,913 shares for $80.7 million, completing its $150 million share repurchase authorization for 2025 [13]

SAN ANTONIO, Jan. 30, 2026 /PRNewswire/ -- The board of directors of Cullen/Frost Bankers, Inc. (NYSE: CFR) announced that two new directors, Marsha M. Shields and Jeff Rummel, have been elected to the board. "We're glad to be able to add Marsha and Jeff to the board, and we look forward to the addition of their knowledge and experience," said Cullen/Frost Chairman and CEO Phil Green. "They're both longtime Texans with plenty of business and policy experience, and their perspectives will be of value as we ...

As of the end of the second quarter, management said the overall expansion effort had generated $2.76 billion in deposits , $2.003 billion in loans , and nearly 69,000 new households . On a year-over-year basis, expansion average loans and deposits increased by $521 million and $544 million , representing growth of 35% and 25% , respectively. Using average June month-to-date balances, expansion activity represented 9.6% of company loans and 6.6% of company deposits.Green highlighted progress in the bank’s o ...

Phillip D. Green: The expansion now represents 9.6% of company loans and 6.6% of company deposits using average June month-to-date balances. As we've mentioned, the successes of our earlier expansion locations are now funding the current expansion effort, and we expect the overall effort will be accretive to earnings in 2026. And as I've said many times, this strategy is both durable and scalable. Average consumer deposits make up about 46% of our total deposit base, and we continue to see consistently high ...

Financial Data and Key Metrics Changes - In Q2 2025, Cullen Frost earned $155.3 million or $2.39 per share, compared to $143.8 million or $2.21 per share in the same quarter last year, representing a year-over-year increase of 8.8% in earnings [5] - Return on average assets was 1.22% and return on average common equity was 15.64%, compared to 1.18% and 17.08% in the same quarter last year [5] - Average deposits increased to $41.8 billion, up 3.1% from $40.5 billion in Q2 2024, while average loans grew to $21.1 billion, a 7.2% increase from $19.7 billion [6] Business Line Data and Key Metrics Changes - Consumer deposits grew by 3.7% year-over-year, with checking household growth at an industry-leading rate of 5.4% [9][10] - The commercial business saw average loan balances increase by $817 million or 4.9% year-over-year, with commercial real estate (CRE) balances growing by 6.8% and energy balances increasing by 22% [11] - The consumer real estate loan portfolio grew by $600 million year-over-year, representing a 22% growth rate [10] Market Data and Key Metrics Changes - The expansion efforts contributed to 37% of total loan growth and 44% of total deposit growth year-over-year [15] - The company opened its 200th location, indicating a significant expansion strategy in dynamic markets [6][7] - The overall credit quality remains strong, with non-performing assets declining to $64 million from $85 million at year-end [13] Company Strategy and Development Direction - The company continues to focus on organic growth through expansion in Texas, with no current plans for inorganic growth or M&A activity [84][88] - Management emphasizes a commitment to customer service and maintaining a strong capital base, prioritizing dividend protection [32][34] - The strategy is expected to yield earnings accretion in 2026, with a focus on long-term growth rather than immediate returns [41][44] Management's Comments on Operating Environment and Future Outlook - Management acknowledges increased competition in the lending market, particularly from smaller banks, but remains confident in their pricing strategy and customer relationships [30][113] - The company expects net interest income growth for the full year to be in the range of 6%-7%, despite anticipated Fed rate cuts [22][23] - There is optimism regarding deposit growth in the second half of the year, with expectations for seasonal trends to return [49][50] Other Important Information - The net interest margin improved to 3.67%, up 7 basis points from the previous quarter, driven by a shift towards higher-yielding loans and securities [17] - The investment portfolio averaged $20.4 billion during the quarter, with a taxable equivalent yield of 3.79% [19] - The company recorded a net unrealized loss on the available-for-sale portfolio of $1.42 billion, slightly up from $1.4 billion in the previous quarter [18] Q&A Session Summary Question: Loan growth and pricing competition - Management noted that competition has increased, particularly in commercial real estate, leading to price compression [30] Question: Capital growth and utilization - The focus remains on building capital and protecting dividends, with no immediate plans for stock repurchase [32][34] Question: Earnings growth and investment returns - Management expects to see benefits from investments in expansion starting in 2026, with a focus on long-term growth [41][44] Question: Deposit growth and trends - There is encouragement regarding the stabilization and potential growth of non-interest-bearing deposits in the second half of the year [49][50] Question: Non-interest income outlook - Management anticipates growth in non-interest income driven by increased customer volume and a healthier stock market [94][99]

Financial Data and Key Metrics Changes - In Q2 2025, Cullen/Frost earned $155.3 million or $2.39 per share, compared to $143.8 million or $2.21 per share in the same quarter last year, representing a year-over-year increase of 8.5% in earnings per share [5] - Return on average assets was 1.22% and return on average common equity was 15.64%, compared to 1.18% and 17.08% in the same quarter last year [5] - Average deposits increased to $41.8 billion, up 3.1% from $40.5 billion in Q2 2024, while average loans grew to $21.1 billion, a 7.2% increase from $19.7 billion [6] Business Line Data and Key Metrics Changes - Consumer deposits grew by 3.7% year-over-year, with checking household growth at an industry-leading rate of 5.4% [9][10] - The commercial business saw average loan balances increase by $817 million or 4.9% year-over-year, with commercial real estate (CRE) balances growing by 6.8% and energy balances increasing by 22% [11] - The consumer real estate loan portfolio grew by $600 million year-over-year, representing a 22% growth rate [10] Market Data and Key Metrics Changes - Expansion efforts contributed to 37% of total loan growth and 44% of total deposit growth year-over-year [15] - The expansion now represents 9.6% of company loans and 6.6% of company deposits [9] - New commercial relationships increased by 9% over the first quarter, with 1,060 new relationships recorded in Q2 [12] Company Strategy and Development Direction - The company continues to focus on organic growth through expansion in Texas, having opened its 200th location [6][7] - Management emphasizes a durable and scalable growth strategy, with plans to continue identifying new locations for expansion [9] - The company is not currently interested in pursuing M&A opportunities, preferring to focus on organic growth and customer service [86][87] Management's Comments on Operating Environment and Future Outlook - Management expects net interest income growth for the full year to fall in the range of 6%-7%, with net interest margin improvement of about 12-15 basis points [22][23] - The company anticipates that the rate of growth in expenses will decrease over time as investments in technology and expansion begin to pay off [43] - Management is optimistic about the economic outlook and expects to see benefits from expansion efforts in 2026 [41][45] Other Important Information - The net unrealized loss on the available-for-sale portfolio at the end of the quarter was $1.42 billion, slightly up from $1.4 billion in the previous quarter [18] - Non-interest income is expected to grow in the range of 3.5%-4.5%, an increase from prior guidance [23] Q&A Session Summary Question: What are the current trends in loan pricing and competition? - Management noted that competition has increased, particularly in commercial real estate, leading to price compression [30][31] Question: How is the company approaching capital growth and utilization? - The focus remains on building capital, with a priority on protecting dividends, and no immediate plans for stock repurchase [32][34] Question: When can shareholders expect to see benefits from recent investments? - Management expects accretion from expansion efforts to begin in 2026, with a gradual increase over time [41][45] Question: What is the outlook for deposit growth? - Management is optimistic about deposit growth in the second half of the year, with expectations for non-interest-bearing deposits to stabilize [49][50] Question: How does the company view M&A opportunities? - The company is not interested in pursuing M&A, focusing instead on organic growth strategies [86][87]

Financial Data and Key Metrics Changes - In Q2 2025, Cullen Frost earned $155.3 million or $2.39 per share, compared to $143.8 million or $2.21 per share in Q2 2024, representing a year-over-year increase of 8.8% in earnings per share [4] - Return on average assets was 1.22% and return on average common equity was 15.64%, compared to 1.18% and 17.08% in the same quarter last year [4] - Average deposits increased by 3.1% to $41.8 billion from $40.5 billion year-over-year, while average loans grew by 7.2% to $21.1 billion from $19.7 billion [5] Business Line Data and Key Metrics Changes - Consumer deposits grew by 3.7% year-over-year, with checking household growth at an industry-leading rate of 5.4% [7][8] - The consumer real estate loan portfolio increased by $600 million year-over-year, achieving a growth rate of 22% [8] - Average loan balances in the commercial business grew by 4.9% year-over-year, with notable increases in commercial real estate (CRE) balances by 6.8% and energy balances by 22% [9] Market Data and Key Metrics Changes - Expansion efforts contributed to 37% of total loan growth and 44% of total deposit growth year-over-year [13] - The expansion now represents 9.6% of company loans and 6.6% of company deposits [7] - The company recorded 1,060 new commercial relationships in Q2, marking a 9% increase over Q1 [10] Company Strategy and Development Direction - The company continues to focus on organic growth through expansion in Texas, having opened its 200th location [5][6] - Management emphasizes a durable and scalable strategy, with plans to continue identifying new locations to enhance customer value [6] - The company is not currently interested in pursuing M&A, preferring to focus on organic growth and customer service [80][82] Management's Comments on Operating Environment and Future Outlook - Management expects net interest income growth for the full year to be in the range of 6%-7%, despite anticipated Fed rate cuts [19] - The company anticipates that the rate of growth in expenses will decrease over time as investments in technology and expansion begin to pay off [41] - Management is optimistic about the economic outlook and believes that the legacy part of the business will benefit from an improving economy [43] Other Important Information - Non-performing assets decreased to $64 million from $85 million at year-end, indicating improved credit quality [11] - The net unrealized loss on the available-for-sale portfolio was $1.42 billion, slightly up from $1.4 billion in the previous quarter [15] - The company expects to maintain a stable effective tax rate of 16%-17% for the full year 2025 [20] Q&A Session Summary Question: What are the current trends in loan pricing and competition? - Management noted increased competition in commercial real estate, leading to price compression, but emphasized the importance of maintaining a strong balance sheet and protecting the portfolio [28][29] Question: How is the company approaching capital growth and utilization? - The focus remains on building capital, with a priority on protecting dividends. There are no immediate plans for stock repurchase [30][32] Question: When can shareholders expect to see benefits from recent investments? - Management expects accretion from expansion efforts to begin in 2026, with a gradual increase over time rather than a one-time boost [40] Question: What is the outlook for deposit growth and competition? - Management is optimistic about deposit growth returning to seasonal trends, with expectations for commercial customers to build up their DDA balances in the latter half of the year [47][48] Question: How does the company view M&A activity in the current market? - The company is not interested in pursuing M&A, preferring to focus on organic growth strategies that have proven effective [80][82]

For the quarter ended December 2025, Cullen/Frost Bankers (CFR) reported revenue of $603.38 million, up 8.4% over the same period last year. EPS came in at $2.57, compared to $2.36 in the year-ago quarter.The reported revenue represents a surprise of +3% over the Zacks Consensus Estimate of $585.8 million. With the consensus EPS estimate being $2.47, the EPS surprise was +3.91%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determ ...

Cullen/Frost Bankers (CFR) came out with quarterly earnings of $2.57 per share, beating the Zacks Consensus Estimate of $2.47 per share. This compares to earnings of $2.36 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +3.91%. A quarter ago, it was expected that this financial holding company would post earnings of $2.38 per share when it actually produced earnings of $2.67, delivering a surprise of +12.18%.Over the last four ...

Financial Performance - Net income available to common shareholders for Q4 2025 was $164.6 million, a 7.4% increase from $153.2 million in Q4 2024[2] - For the full year 2025, net income available to common shareholders was $641.9 million, up 11.5% from $575.9 million in 2024[3] - Net income available to common shareholders for Q4 2025 was $164,583, a decrease of 4.1% compared to $172,712 in Q3 2025[18] - Earnings per common share (basic) for Q4 2025 was $2.56, down from $2.67 in Q3 2025, representing a decline of 4.1%[18] - Earnings per common share (basic) rose to $9.92 in 2025, compared to $8.88 in 2024, marking an increase of 11.7%[22] Income and Expenses - Non-interest income for Q4 2025 was $132.2 million, a 7.6% increase from $122.8 million in Q4 2024[7] - Non-interest expense for Q4 2025 was $371.7 million, up 10.6% from $336.2 million in Q4 2024[8] - Net interest income for Q4 2025 was $448,707, an increase of 1.5% from Q3 2025's $441,618[18] - Total non-interest income reached $132,164 in Q4 2025, up from $125,647 in Q3 2025, reflecting a growth of 4.0%[18] - Net interest income for 2025 reached $1,821,848, an increase of 7.9% from $1,687,873 in 2024[22] - Total non-interest income increased to $499,095 in 2025, up 8.7% from $459,098 in 2024[22] Loans and Deposits - Average loans for Q4 2025 increased by $1.3 billion, or 6.5%, to $21.7 billion compared to $20.3 billion in Q4 2024[5] - Average deposits for Q4 2025 rose by $1.5 billion, or 3.5%, to $43.3 billion from $41.9 billion in Q4 2024[5] - Total deposits increased to $43,340 million in Q4 2025, compared to $42,071 million in Q3 2025, marking a growth of 3.0%[20] - Loans at period-end increased to $21,892 million in 2025, compared to $20,755 million in 2024, a growth of 5.5%[24] Asset and Capital Management - Cullen/Frost had $53.0 billion in assets as of December 31, 2025[11] - Total assets grew to $53,041 million in 2025, up from $52,520 million in 2024, reflecting a 1.0% increase[24] - The Tier 1 Risk-Based Capital Ratio was 14.50% in Q4 2025, slightly down from 14.59% in Q3 2025[20] - The Common Equity Tier 1 Risk-Based Capital Ratio improved to 14.06% in 2025, up from 13.62% in 2024[24] Credit Quality - The company reported a credit loss expense of $11.2 million for Q4 2025, compared to $16.2 million in Q4 2024[8] - The allowance for credit losses on loans was $281,495 thousand, representing 1.29% of period-end loans in Q4 2025[20] - Non-accrual loans amounted to $70,482 thousand, which is 0.32% of total loans in Q4 2025, up from 0.21% in Q3 2025[20] - The allowance for credit losses on loans was $281,495, representing 1.29% of period-end loans in 2025[24] - Non-accrual loans decreased to $70,482, which is 0.32% of total loans, down from 0.38% in 2024[24] Dividends and Stock Repurchase - The board declared a first-quarter cash dividend of $1.00 per common share, payable on March 13, 2026[9] - The company authorized a new stock repurchase program of up to $300 million, expiring on January 27, 2027[10] - Cash dividends per common share remained stable at $1.00 for both Q4 2025 and Q3 2025[18] Book Value - Book value per common share at the end of Q4 2025 was $69.96, an increase from $67.64 in Q3 2025[18] Profitability Metrics - The net interest spread for 2025 was 3.02%, compared to 2.98% in 2024, indicating improved profitability on earning assets[25]