Cullen/Frost Bankers (NYSE:CFR) Releases Earnings Results, Beats Estimates By $0.19 EPS

Key Points

• Quarterly beat: Cullen/Frost reported EPS of $2.65, beating the $2.46 consensus by $0.19 and posting $1.04B in revenue, with ROE around 15.5% and a net margin near 22.2%.
• Growth drivers: Branch expansion (now holding $2.9B in loans, $3.6B in deposits and ~95,000 new households) and an all‑time high commercial pipeline ($6.8B, +55% QoQ) are fueling durable organic growth and contributed roughly $0.14 of EPS.
• Asset‑quality watch: Total problem loans rose to $989M from $857M, led by risk‑grade 10 loans, although NPAs and net charge‑offs remain low and management expects sizable resolutions in Q2–Q3.

Cullen/Frost Bankers (NYSE:CFR - Get Free Report) posted its earnings results on Thursday. The bank reported $2.65 EPS for the quarter, beating the consensus estimate of $2.46 by $0.19, Zacks reports. Cullen/Frost Bankers had a return on equity of 15.49% and a net margin of 22.21%.The firm had revenue of $1.04 billion for the quarter, compared to analyst estimates of $585.32 million. During the same quarter in the prior year, the company 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 Stock Performance

NYSE CFR traded up $2.36 during trading on Thursday, reaching $145.16. The company's stock had a trading volume of 780,245 shares, compared to its average volume of 464,141. The business's fifty day moving average price is $138.96 and its 200-day moving average price is $133.57. Cullen/Frost Bankers has a twelve month low of $116.47 and a twelve month high of $148.97. The company has a debt-to-equity ratio of 0.05, a quick ratio of 0.67 and a current ratio of 0.67. The firm has a market cap of $9.14 billion, a price-to-earnings ratio of 14.63, a P/E/G ratio of 3.95 and a beta of 0.61.

Cullen/Frost Bankers Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, June 15th. Shareholders of record on Friday, May 29th will be paid a $1.03 dividend. This is a boost from Cullen/Frost Bankers's previous quarterly dividend of $1.00. This represents a $4.12 dividend on an annualized basis and a yield of 2.8%. The ex-dividend date is Friday, May 29th. Cullen/Frost Bankers's dividend payout ratio (DPR) is presently 40.32%.

Wall Street Analysts Forecast Growth

Several research analysts have recently issued reports on the company. Loop Capital set a $160.00 price objective on Cullen/Frost Bankers in a research report on Monday, February 2nd. TD Cowen raised 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 $136.00 to $144.00 and gave the stock a "neutral" rating in a research note on Friday, January 30th. Royal Bank Of Canada upped their price target on Cullen/Frost Bankers from $144.00 to $150.00 and gave the company a "sector perform" rating in a report on Friday, January 30th. Finally, Barclays raised their price objective on shares of Cullen/Frost Bankers from $150.00 to $155.00 and gave the stock an "equal weight" rating in a report on Tuesday, April 7th. One research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, six have issued a Hold rating and three have issued a Sell rating to the company's stock. According to data from MarketBeat.com, Cullen/Frost Bankers currently has a consensus rating of "Hold" and an average price target of $142.25.

Insider Activity

In related news, EVP Bobby Berman sold 1,000 shares of the business's stock in a transaction dated Friday, January 30th. The stock was sold at an average price of $137.07, for a total value of $137,070.00. Following the transaction, the executive vice president owned 28,406 shares in the company, valued at $3,893,610.42. The trade was a 3.40% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. 1.14% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the stock. Sunbelt Securities Inc. increased its holdings in shares of Cullen/Frost Bankers by 77.0% in the fourth quarter. Sunbelt Securities Inc. now owns 871 shares of the bank's stock valued at $110,000 after purchasing an additional 379 shares during the period. Invesco Ltd. lifted its holdings in shares of Cullen/Frost Bankers by 12.6% during the fourth quarter. Invesco Ltd. now owns 139,371 shares of the bank's stock worth $17,649,000 after purchasing an additional 15,606 shares during the period. Corient Private Wealth LLC grew its position in Cullen/Frost Bankers by 200.7% in the 4th quarter. Corient Private Wealth LLC now owns 50,706 shares of the bank's stock valued at $6,404,000 after buying an additional 33,843 shares during the last quarter. Mercer Global Advisors Inc. ADV increased its stake in Cullen/Frost Bankers by 18.3% in the 4th quarter. Mercer Global Advisors Inc. ADV now owns 7,851 shares of the bank's stock valued at $994,000 after buying an additional 1,212 shares during the period. Finally, NewEdge Advisors LLC increased its stake in Cullen/Frost Bankers by 53.3% in the 4th quarter. NewEdge Advisors LLC now owns 3,928 shares of the bank's stock valued at $497,000 after buying an additional 1,366 shares during the period. 86.90% of the stock is currently owned by hedge funds and other institutional investors.

Trending Headlines about Cullen/Frost Bankers

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

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.

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