Cullen/Frost Bankers (NYSE:CFR) Announces Quarterly Earnings Results, Beats Estimates By $0.04 EPS

Cullen/Frost Bankers (NYSE:CFR) issued its earnings results on Thursday. The bank reported $2.84 earnings per share for the quarter, beating the consensus estimate of $2.80 by $0.04, FiscalAI reports. Cullen/Frost Bankers had a net margin of 29.73% and a return on equity of 15.72%. The business had revenue of $603.83 million for the quarter, compared to analyst estimates of $610.19 million. During the same period in the previous year, the business earned $2.67 EPS.

Here are the key takeaways from Cullen/Frost Bankers’ conference call:

• Third-quarter earnings increased 3.4% year over year to $178.5 million, while EPS rose 6.4% to $2.84. Average loans grew 9% and deposits increased 3.6% from the prior year.
• Loan momentum remained strong, supported by an all-time-high $2.5 billion commercial pipeline, record core-loan commitments, 18.7% consumer-loan growth, and continued success attracting customers from bank mergers and acquisitions.
• Management raised 2026 guidance for net interest income growth to 5%-5.5%, average loan growth to 8%-8.5%, and non-interest-income growth to 8.5%-9%; October average deposits had already reached $44.4 billion.
• Credit metrics improved as non-performing assets fell to $67 million, or 28 basis points of period-end loans, after a large multifamily loan paid off. Net charge-offs remained low at 14 basis points of average loans.
• Higher rates increased funding costs and drove the available-for-sale securities portfolio’s net unrealized loss to $2 billion from $1.1 billion in the prior quarter; management also expects fourth-quarter interest-bearing deposit costs to rise roughly 12-15 basis points.

Cullen/Frost Bankers Stock Down 0.2%

NYSE:CFR traded down $0.39 during trading hours on Friday, reaching $157.46. 522,289 shares of the company traded hands, compared to its average volume of 431,630. The stock has a market capitalization of $9.79 billion, a P/E ratio of 14.65, a P/E/G ratio of 1.84 and a beta of 0.56. The business’s 50-day moving average price is $157.79 and its two-hundred day moving average price is $148.83. Cullen/Frost Bankers has a 1 year low of $119.14 and a 1 year high of $170.80. The company has a current ratio of 0.63, a quick ratio of 0.63 and a debt-to-equity ratio of 0.05.

Cullen/Frost Bankers Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, December 15th. Stockholders of record on Monday, November 30th will be given a $1.03 dividend. This represents a $4.12 dividend on an annualized basis and a dividend yield of 2.6%. The ex-dividend date of this dividend is Monday, November 30th. Cullen/Frost Bankers’s payout ratio is currently 38.94%.

Trending Headlines about Cullen/Frost Bankers

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

• Positive Sentiment: Third-quarter earnings exceeded expectations. CFR reported diluted EPS of $2.84, up from $2.67 a year earlier and above the $2.80 consensus estimate. Average loans increased 9.0% year over year to $23.4 billion, while non-interest income rose 8.2% to $136 million. Cullen/Frost Reports Third Quarter Results
• Positive Sentiment: Management raised its 2026 growth outlook. Stronger loan demand, improving margins and higher fee income are driving the more optimistic forecast, suggesting continued operating momentum. Cullen-Frost Raises 2026 Guidance
• Positive Sentiment: DA Davidson raised its price target from $164 to $168, implying additional upside, although it maintained a neutral rating. DA Davidson Analyst Ratings
• Positive Sentiment: The quarterly dividend remains supportive. CFR declared a $1.03-per-share dividend, or $4.12 annualized, representing a yield of approximately 2.6% based on the reported share price.
• Neutral Sentiment: CFR will transfer its primary listings to the Texas Stock Exchange on November 12, 2026. The company’s CFR and CFR.PrB ticker symbols will remain unchanged, so the move is unlikely to alter its underlying fundamentals. Cullen/Frost Listing Transfer
• Negative Sentiment: Revenue was below expectations and costs increased. Quarterly revenue of $603.8 million trailed the $610.2 million consensus estimate, while non-interest expense rose 7.0% year over year. Rising costs could challenge the sustainability of the improved growth outlook.

Wall Street Analyst Weigh In

CFR has been the subject of several analyst reports. Wall Street Zen upgraded Cullen/Frost Bankers from a “sell” rating to a “hold” rating in a research report on Saturday. Cantor Fitzgerald cut their price target on shares of Cullen/Frost Bankers from $175.00 to $167.00 and set a “neutral” rating on the stock in a research report on Wednesday, October 14th. Zacks Research lowered shares of Cullen/Frost Bankers from a “strong-buy” rating to a “hold” rating in a research report on Thursday, September 3rd. TD Cowen dropped their price target on Cullen/Frost Bankers from $185.00 to $178.00 and set a “buy” rating on the stock in a research note on Monday, October 5th. Finally, Jefferies Financial Group upgraded Cullen/Frost Bankers from an “underperform” rating to a “hold” rating and boosted their price objective for the stock from $135.00 to $160.00 in a report on Monday, July 6th. Five equities research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company presently has an average rating of “Hold” and a consensus price target of $171.55.

Cullen/Frost Bankers Company Profile

Cullen/Frost Bankers, Inc is a financial holding company headquartered in San Antonio, Texas. Its principal subsidiary, Frost Bank, provides banking and financial services to individuals, businesses and institutions throughout Texas.

Frost Bank offers personal and commercial deposit accounts, loans, mortgages, treasury management, payments and other business banking services. The company also provides wealth management, trust and investment services, brokerage services and insurance solutions through its related businesses.

Frost traces its history to 1868, when Thomas Claiborne Frost founded the bank in San Antonio.