CULLEN/FROST REPORTS SECOND QUARTER RESULTS
Board declares third quarter dividend on common and preferred stock
SAN ANTONIO, July 30, 2026 /PRNewswire/ -- Cullen/Frost Bankers, Inc. (NYSE: CFR) today reported second quarter 2026 results. Net income available to common shareholders for the second quarter of 2026 was $170.4 million, compared to $155.3 million for the second quarter of 2025. On a per-share basis, net income available to common shareholders for the second quarter of 2026 was $2.70 per diluted common share, compared to $2.39 per diluted common share reported a year earlier. Returns on average assets and average common equity were 1.30 percent and 15.41 percent, respectively, for the second quarter of 2026, compared to 1.22 percent and 15.64 percent, respectively, for the same period a year earlier.
For the second quarter of 2026, net interest income on a taxable-equivalent basis was $470.1 million, up 4.3 percent compared to the same quarter in 2025. Average loans for the second quarter of 2026 increased $1.6 billion, or 7.4 percent, to $22.6 billion, from the $21.1 billion reported for the second quarter a year earlier, and increased $610.8 million, or 2.8 percent, compared to the first quarter of 2026. Average deposits for the second quarter increased $859.6 million, or 2.1 percent, to $42.6 billion, compared to the $41.8 billion reported for last year's second quarter, and increased $394.1 million, or 0.9 percent, compared to the first quarter of 2026.
"The second quarter was a period of sustained, solid and balanced growth for our company," said Cullen/Frost Chairman and CEO Phil Green. "During the quarter, we saw acceleration in the growth of non-interest-bearing deposits, interest-bearing deposits, and loans. Our second quarter earnings per share increased by 13% compared to the same period last year. We opened four new financial centers across the Dallas, Fort Worth, Austin and San Antonio regions. Just last week, we opened a new location in Richardson in north Dallas County, bringing us to a total of seven new locations opened so far this year.
"Our strategy is consistent and our results speak for themselves," Green said. "Frost bankers continue to compete and win in an intensely competitive environment, and growth trends in our markets continue to be strong."
For the first six months of 2026, net income available to common shareholders was $339.7 million, up 11.5 percent compared to $304.6 million for the first six months of 2025. On a per-share basis, net income available to common shareholders for the first six months of 2026 was $5.35, up 14.1 percent compared to $4.69 in the year-earlier period. Returns on average assets and average common equity for the first six months of 2026 were 1.31 percent and 15.28 percent, respectively, compared to 1.20 percent and 15.59 percent, respectively, for the same period in 2025.
Noted financial data for the second quarter of 2026 follows:
The Cullen/Frost board declared a third-quarter cash dividend of $1.03 per common share. The dividend on common stock is payable September 15, 2026 to shareholders of record on August 31 of this year. The board of directors also declared a cash dividend of $11.125 per share of Series B Preferred Stock (or $0.278125 per depositary share). The depositary shares representing the Series B Preferred Stock are traded on the NYSE under the symbol "CFR PrB." The Series B Preferred Stock dividend is payable September 15, 2026 to shareholders of record on August 31 of this year.
Cullen/Frost Bankers, Inc. will host a conference call on Thursday, July 30, 2026, at 1 p.m. Central Time (CT) to discuss the results for the quarter. The media and other interested parties are invited to access the call in a "listen only" mode at 1-877-709-8150 or via webcast on our investor relations website linked below. Playback of the conference call will be available after 5 p.m. CT on the day of the call until midnight Sunday, August 2, 2026 at 1-877-660-6853 with Conference ID # of 13761733. A replay of the call will also be available by webcast at the URL listed below after 5 p.m. CT on the day of the call.
Cullen/Frost investor relations website: https://investor.frostbank.com/
Cullen/Frost Bankers, Inc. (NYSE: CFR) is a financial holding company, headquartered in San Antonio, with $53.9 billion in assets at June 30, 2026. One of the 50 largest U.S. banks, Frost provides a wide range of banking, investments and insurance services to businesses and individuals across Texas in the Austin, Dallas, Fort Worth, Gulf Coast, Houston, Permian Basin, Rio Grande Valley, and San Antonio regions. Founded in 1868, Frost has helped clients with their financial needs during three centuries. Additional information is available at www.frostbank.com.
Forward-Looking Statements and Factors that Could Affect Future Results
Certain statements contained in this Earnings Release that are not statements of historical fact constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"), notwithstanding that such statements are not specifically identified as such. In addition, certain statements may be contained in our future filings with the SEC, in press releases, and in oral and written statements made by us or with our approval that are not statements of historical fact and constitute forward-looking statements within the meaning of the Act. Examples of forward-looking statements include, but are not limited to: (i) projections of revenues, expenses, income or loss, earnings or loss per share, the payment or nonpayment of dividends, capital structure and other financial items; (ii) statements of plans, objectives and expectations of Cullen/Frost or its management or Board of Directors, including those relating to products, services or operations; (iii) statements of future economic performance; and (iv) statements of assumptions underlying such statements. Words such as "believes," "anticipates," "expects," "intends," "targeted," "continue," "remain," "will," "should," "may," and other similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements.
Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from those in such statements. Factors that could cause actual results to differ from those discussed in the forward-looking statements include, but are not limited to:
In addition, recent military conflict involving the U.S. and Iran, including direct military actions, attacks affecting commercial shipping in and around the Strait of Hormuz, and subsequent retaliatory military strikes, has contributed to heightened geopolitical uncertainty, increased volatility in global financial markets, and significant fluctuations in energy and commodity prices. While diplomatic communications and negotiations may continue, recent statements by U.S. and Iranian officials, including indications that the previously announced ceasefire framework is no longer in effect, have increased the risk of further military escalation and broader regional instability. Ongoing developments in the Middle East, including potential disruptions to maritime trade routes and energy infrastructure, could adversely affect global supply chains, inflation expectations, economic activity, and market conditions. The timing, magnitude, duration, and geographic scope of any further conflict remain highly uncertain and may evolve rapidly in response to military actions, diplomatic developments, government policy decisions, sanctions, and market reactions. Heightened geopolitical uncertainty and volatility in energy markets may influence monetary policy decisions, interest-rate expectations, funding markets, liquidity conditions, foreign-exchange markets, and investor risk sentiment. These factors could adversely affect our funding profile; customer and counterparty credit quality, particularly in sectors sensitive to energy prices, global trade, transportation, manufacturing, and broader economic cycles; and the market value of certain financial instruments. Prolonged market volatility, additional military escalation involving the United States, Iran, or other regional actors, disruptions to global energy supplies or shipping lanes, expanded sanctions, or a deterioration in global economic conditions could negatively impact economic growth, increase borrower stress, reduce business activity, and contribute to higher credit losses and operational risks, including cyber-related incidents, any of which could have a material adverse effect on our business, financial condition, results of operations, and prospects. We will continue to monitor geopolitical developments and assess their potential impact on our customers, operations, liquidity position, capital levels, market exposures, and overall risk profile, and we may adjust our risk management, liquidity management, capital planning, and business continuity strategies as appropriate.
Furthermore, financial markets, international relations, and global supply chains continue to be affected by evolving U.S. trade policies and practices. While the U.S. Supreme Court's February 20, 2026 ruling that the International Emergency Economic Powers Act ("IEEPA") does not authorize presidential tariff authority invalidated certain tariffs previously imposed under IEEPA, uncertainty remains regarding tariff refunds, related legal and administrative proceedings, and the scope, duration, and economic impact of replacement or additional trade measures adopted under other U.S. trade laws. Ongoing changes in U.S. trade policy, including the imposition, modification, suspension, or expansion of tariffs and other trade restrictions, may affect customer cash flows, business confidence, capital investment decisions, supply chain strategies, commodity prices, inflation expectations, and market volatility. These developments may increase our exposure to operational, credit, market, liquidity, and compliance risks. Customers with significant exposure to international trade, manufacturing, transportation, agriculture, retail, or other sectors sensitive to global trade and supply chain conditions may experience financial stress, reduced profitability, or weakened operating performance. Trade policy developments may also contribute to volatility in interest rates, foreign exchange markets, and asset valuations. If these developments adversely affect borrower financial condition, market stability, economic growth, or broader business activity, they could have a material adverse effect on our business, financial condition, results of operations, and prospects. We will continue to monitor trade policy developments and adjust our risk management, liquidity management, and capital planning strategies as appropriate.
Forward-looking statements speak only as of the date on which such statements are made. We do not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made, or to reflect the occurrence of unanticipated events.
Cullen/Frost Bankers, Inc.
CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)
(In thousands, except per share amounts)
2026
2025
2nd Qtr
1st Qtr
4th Qtr
3rd Qtr
2nd Qtr
CONDENSED INCOME STATEMENTS
Net interest income
$ 447,728
$ 438,522
$ 448,707
$ 441,618
$ 429,604
Net interest income (1)
470,066
460,792
471,218
463,667
450,558
Credit loss expense
9,767
6,745
11,224
6,779
13,129
Non-interest income:
Trust and investment management fees
47,643
47,957
45,651
44,846
43,669
Service charges on deposit accounts
34,177
32,157
32,360
31,440
29,151
Insurance commissions and fees
14,166
22,075
15,180
15,424
13,879
Interchange and card transaction fees
6,546
6,532
6,290
5,547
5,619
Other charges, commissions, and fees
13,787
13,268
15,228
14,730
13,967
Net gain (loss) on securities transactions
—
—
(836)
—
—
Other
11,962
14,326
18,291
13,660
10,988
Total non-interest income
128,281
136,315
132,164
125,647
117,273
Non-interest expense:
Salaries and wages
172,955
166,190
182,486
169,155
162,149
Employee benefits
35,156
44,656
36,653
34,465
32,826
Net occupancy
35,223
34,753
34,341
34,682
34,640
Technology, furniture, and equipment
42,564
41,674
41,575
43,479
40,572
Deposit insurance
6,305
7,203
(1,350)
6,328
6,590
Other
69,497
71,210
77,963
64,369
70,351
Total non-interest expense
361,700
365,686
371,668
352,478
347,128
Income before income taxes
204,542
202,406
197,979
208,008
186,620
Income taxes
32,483
31,419
31,727
33,628
29,617
Net income
172,059
170,987
166,252
174,380
157,003
Preferred stock dividends
1,669
1,669
1,669
1,668
1,669
Net income available to common shareholders
$ 170,390
$ 169,318
$ 164,583
$ 172,712
$ 155,334
PER COMMON SHARE DATA
Earnings per common share - basic
$ 2.70
$ 2.65
$ 2.56
$ 2.67
$ 2.39
Earnings per common share - diluted
2.70
2.65
2.56
2.67
2.39
Cash dividends per common share
1.03
1.00
1.00
1.00
1.00
Book value per common share at end of quarter
72.04
69.83
69.96
67.64
63.04
OUTSTANDING COMMON SHARES
Period-end common shares
62,149
62,797
63,287
63,801
64,319
Weighted-average common shares - basic
62,455
63,101
63,588
64,080
64,300
Dilutive effect of stock compensation
—
—
16
41
52
Weighted-average common shares - diluted
62,455
63,101
63,604
64,121
64,352
SELECTED ANNUALIZED RATIOS
Return on average assets
1.30 %
1.32 %
1.22 %
1.32 %
1.22 %
Return on average common equity
15.41
15.15
14.80
16.72
15.64
Net interest income to average earning assets
3.75
3.74
3.66
3.69
3.67
(1) Taxable-equivalent basis assuming a 21% tax rate.
Cullen/Frost Bankers, Inc.
CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)
2026
2025
2nd Qtr
1st Qtr
4th Qtr
3rd Qtr
2nd Qtr
BALANCE SHEET SUMMARY
($ in millions)
Average Balance:
Loans
$ 22,622
$ 22,011
$ 21,661
$ 21,452
$ 21,063
Earning assets
49,082
48,628
50,033
48,492
47,664
Total assets
52,626
52,122
53,507
51,911
51,191
Non-interest-bearing demand deposits
14,027
13,944
14,268
13,839
13,788
Interest-bearing deposits
28,592
28,282
29,072
28,232
27,972
Total deposits
42,620
42,226
43,340
42,071
41,760
Shareholders' equity
4,581
4,677
4,558
4,243
4,129
Period-End Balance:
Loans
$ 22,976
$ 22,432
$ 21,892
$ 21,446
$ 21,254
Earning assets
50,260
49,172
49,524
49,147
47,756
Total assets
53,881
52,725
53,041
52,533
51,409
Total deposits
43,334
42,836
42,918
42,517
41,684
Shareholders' equity
4,623
4,531
4,573
4,461
4,200
Adjusted shareholders' equity (1)
5,474
5,454
5,416
5,385
5,341
ASSET QUALITY
($ in thousands)
Allowance for credit losses on loans:
$ 283,712
$ 286,215
$ 281,495
$ 280,221
$ 277,803
As a percentage of period-end loans
1.23 %
1.28 %
1.29 %
1.31 %
1.31 %
Net charge-offs:
$ 9,527
$ 5,741
$ 5,843
$ 6,589
$ 11,151
Annualized as a percentage of average loans
0.17 %
0.11 %
0.11 %
0.12 %
0.21 %
Non-accrual loans/loans held for sale:
$ 112,717
$ 72,350
$ 70,482
$ 44,778
$ 62,393
As a percentage of total loans and loans held for sale
0.49 %
0.32 %
0.32 %
0.21 %
0.29 %
As a percentage of total assets
0.21
0.14
0.13
0.09
0.12
CONSOLIDATED CAPITAL RATIOS
Common Equity Tier 1 Risk-Based Capital Ratio
13.95 %
14.07 %
14.06 %
14.14 %
13.98 %
Tier 1 Risk-Based Capital Ratio
14.38
14.51
14.50
14.59
14.43
Total Risk-Based Capital Ratio
15.74
15.89
15.95
16.04
15.88
Leverage Ratio
9.06
9.13
8.80
9.00
8.98
Equity to Assets Ratio (period-end)
8.58
8.59
8.62
8.49
8.17
Equity to Assets Ratio (average)
8.71
8.97
8.52
8.17
8.07
(1) Shareholders' equity excluding accumulated other comprehensive income (loss).
Cullen/Frost Bankers, Inc.
CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)
(In thousands, except per share amounts)
Six Months Ended
June 30,
2026
2025
CONDENSED INCOME STATEMENTS
Net interest income
886,250
845,824
Net interest income (1)
930,858
886,963
Credit loss expense
16,512
26,199
Non-interest income:
Trust and investment management fees
95,600
86,600
Service charges on deposit accounts
66,334
57,772
Insurance commissions and fees
36,241
34,898
Interchange and card transaction fees
13,078
11,021
Other charges, commissions and fees
27,055
27,553
Net gain (loss) on securities transactions
—
(14)
Other
26,288
23,454
Total non-interest income
264,596
241,284
Non-interest expense:
Salaries and wages
339,145
323,006
Employee benefits
79,812
74,983
Net occupancy
69,976
67,917
Technology, furniture and equipment
84,238
80,690
Deposit insurance
13,508
13,774
Other
140,707
134,824
Total non-interest expense
727,386
695,194
Income before income taxes
406,948
365,715
Income taxes
63,902
57,790
Net income
343,046
307,925
Preferred stock dividends
3,338
3,338
Net income available to common shareholders
$ 339,708
$ 304,587
PER COMMON SHARE DATA
Earnings per common share - basic
$ 5.35
$ 4.69
Earnings per common share - diluted
5.35
4.69
Cash dividends per common share
$ 2.03
$ 1.95
Book value per common share at end of quarter
72.04
63.04
OUTSTANDING COMMON SHARES
Period-end common shares
62,149
64,319
Weighted-average common shares - basic
62,776
64,278
Dilutive effect of stock compensation
—
62
Weighted-average common shares - diluted
62,776
64,340
SELECTED ANNUALIZED RATIOS
Return on average assets
1.31 %
1.20 %
Return on average common equity
15.28
15.59
Net interest income to average earning assets
3.75
3.63
(1) Taxable-equivalent basis assuming a 21% tax rate.
Cullen/Frost Bankers, Inc.
CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)
As of or for the
Six Months Ended
June 30,
2026
2025
BALANCE SHEET SUMMARY
($ in millions)
Average Balance:
Loans
$ 22,318
$ 20,926
Earning assets
48,856
47,544
Total assets
52,373
51,064
Non-interest-bearing demand deposits
13,986
13,793
Interest-bearing deposits
28,438
27,916
Total deposits
42,424
41,709
Shareholders' equity
4,629
4,085
Period-End Balance:
Loans
$ 22,976
$ 21,254
Earning assets
50,260
47,756
Total assets
53,881
51,409
Total deposits
43,334
41,684
Shareholders' equity
4,623
4,200
Adjusted shareholders' equity (1)
5,474
5,341
ASSET QUALITY
($ in thousands)
Allowance for credit losses on loans:
$ 283,712
$ 277,803
As a percentage of period-end loans
1.23 %
1.31 %
Net charge-offs:
15,268
20,842
Annualized as a percentage of average loans
0.14 %
0.20 %
Non-accrual loans/loans held for sale:
$ 112,717
$ 62,393
As a percentage of total loans and loans held for sale
0.49 %
0.29 %
As a percentage of total assets
0.21 %
0.12
CONSOLIDATED CAPITAL RATIOS
Common Equity Tier 1 Risk-Based Capital Ratio
13.95 %
13.98 %
Tier 1 Risk-Based Capital Ratio
14.38
14.43
Total Risk-Based Capital Ratio
15.74
15.88
Leverage Ratio
9.06
8.98
Equity to Assets Ratio (period-end)
8.58
8.17
Equity to Assets Ratio (average)
8.84
8.00
(1) Shareholders' equity excluding accumulated other comprehensive income (loss).
Cullen/Frost Bankers, Inc.
TAXABLE-EQUIVALENT YIELD/COST AND AVERAGE BALANCES (UNAUDITED)
2026
2025
2nd Qtr
1st Qtr
4th Qtr
3rd Qtr
2nd Qtr
TAXABLE-EQUIVALENT YIELD/COST (1)
Earning Assets:
Interest-bearing deposits
3.65 %
3.64 %
3.93 %
4.36 %
4.41 %
Federal funds sold
3.97
3.97
4.28
4.74
4.71
Resell agreements
—
4.06
4.13
4.58
4.59
Securities (2)
3.96
3.85
3.82
3.85
3.79
Loans, net of unearned discounts
6.17
6.23
6.43
6.61
6.60
Total earning assets
4.92
4.88
4.94
5.11
5.07
Interest-Bearing Liabilities:
Interest-bearing deposits:
Savings and interest checking
0.15 %
0.16 %
0.19 %
0.24 %
0.24 %
Money market deposit accounts
1.92
1.88
2.08
2.28
2.28
Time accounts
3.24
3.14
3.45
3.79
3.86
Total interest-bearing deposits
1.61
1.55
1.75
1.94
1.93
Total deposits
1.08
1.04
1.17
1.30
1.29
Federal funds purchased
3.66
3.62
3.94
4.34
4.37
Repurchase agreements
2.65
2.70
2.87
3.17
3.23
Junior subordinated deferrable interest debentures
5.60
5.63
6.05
6.30
6.30
Subordinated notes payable and other notes
4.69
4.69
4.69
4.69
4.69
Total interest-bearing liabilities
1.77
1.72
1.92
2.13
2.12
Net interest spread
3.15
3.16
3.02
2.98
2.95
Net interest income to total average earning assets
3.75
3.74
3.66
3.69
3.67
AVERAGE BALANCES
($ in millions)
Assets:
Interest-bearing deposits
$ 5,808
$ 6,752
$ 8,431
$ 6,816
$ 6,169
Federal funds sold
4
4
2
3
8
Resell agreements
—
8
10
10
23
Securities - carrying value (2)
20,648
19,853
19,929
20,213
20,401
Securities - amortized cost (2)
21,766
20,825
20,995
21,622
21,864
Loans, net of unearned discount
22,622
22,011
21,661
21,452
21,063
Total earning assets
$ 49,082
$ 48,628
$ 50,033
$ 48,492
$ 47,664
Liabilities:
Interest-bearing deposits:
Savings and interest checking
$ 9,938
$ 10,036
$ 9,899
$ 9,689
$ 9,920
Money market deposit accounts
12,145
11,900
12,619
11,817
11,518
Time accounts
6,509
6,346
6,554
6,726
6,534
Total interest-bearing deposits
28,592
28,282
29,072
28,232
27,972
Total deposits
42,620
42,226
43,340
42,071
41,760
Federal funds purchased
24
24
27
29
25
Repurchase agreements
4,379
4,160
4,586
4,593
4,250
Junior subordinated deferrable interest debentures
123
123
123
123
123
Subordinated notes payable and other notes
100
100
100
100
100
Total interest-bearing funds
$ 33,219
$ 32,689
$ 33,909
$ 33,077
$ 32,471
(1) Taxable-equivalent basis assuming a 21% tax rate.
(2) Average securities include unrealized gains and losses on securities available for sale while yields are based on average amortized cost.
A.B. Mendez
Investor Relations
210.220.5234
or
Bill Day
Media Relations
210.220.5427
SOURCE Cullen/Frost Bankers, Inc.