Cullen/Frost Bankers (NYSE:CFR) Releases Earnings Results, Beats Estimates By $0.09 EPS

Cullen/Frost Bankers (NYSE:CFR) posted its earnings results on Thursday. The bank reported $2.56 EPS for the quarter, topping the consensus estimate of $2.47 by $0.09, FiscalAI reports. The business had revenue of $1.05 billion during the quarter, compared to the consensus estimate of $578.05 million. Cullen/Frost Bankers had a return on equity of 15.79% and a net margin of 21.99%.During the same quarter last year, the company earned $2.36 EPS.

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

• Cullen Frost reported Q2 2025 earnings of $155.3M / $2.39 per share with average loans up 7.2% YoY to $21.1B and average deposits up 3.1% to $41.8B, reflecting continued organic growth.
• The bank hit its 200th financial center; the expansion effort has generated $2.76B in deposits, $2.003B in loans and ~69,000 new households, and management expects the program to be accretive to earnings in 2026.
• Management raised its outlook—full-year net interest income growth now expected at 6%–7% (vs prior 5%–7%), NIM improvement of ~12–15 bps vs 2024, loan growth mid‑to‑high single digits and deposits up 2%–3%.
• While NPAs fell to $64M, total problem loans rose to $989M driven largely by criticized multifamily CRE (Risk Grade 10); management expects resolutions in Q3–Q4 2025 and is guiding full‑year net charge‑offs around 20–25 bps.
• Management flagged increasing competition—especially in CRE—with greater use of aggressive deal structures (guarantees, equity burns) and some pricing compression, which raises underwriting and franchise risk.

Cullen/Frost Bankers Stock Down 0.8%

NYSE:CFR opened at $137.69 on Friday. The company has a market cap of $8.80 billion, a price-to-earnings ratio of 13.88, a P/E/G ratio of 2.74 and a beta of 0.63. The company has a debt-to-equity ratio of 0.05, a quick ratio of 0.65 and a current ratio of 0.65. The stock’s fifty day moving average price is $131.25 and its two-hundred day moving average price is $128.49. Cullen/Frost Bankers has a 52-week low of $100.31 and a 52-week high of $145.53.

Cullen/Frost Bankers Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, March 13th. Shareholders of record on Friday, February 27th will be issued a dividend of $1.00 per share. The ex-dividend date of this dividend is Friday, February 27th. This represents a $4.00 annualized dividend and a yield of 2.9%. Cullen/Frost Bankers’s dividend payout ratio is currently 41.15%.

Wall Street Analyst Weigh In

CFR has been the subject of a number of analyst reports. DA Davidson lifted their price objective on Cullen/Frost Bankers from $136.00 to $144.00 and gave the company a “neutral” rating in a report on Friday. Citigroup increased their target price on shares of Cullen/Frost Bankers from $112.00 to $114.00 and gave the stock a “sell” rating in a research report on Friday, October 31st. Weiss Ratings restated a “hold (c)” rating on shares of Cullen/Frost Bankers in a research report on Monday, December 29th. Royal Bank Of Canada upped their price objective on shares of Cullen/Frost Bankers from $144.00 to $150.00 and gave the stock a “sector perform” rating in a research note on Friday. Finally, Barclays lifted their target price on shares of Cullen/Frost Bankers from $140.00 to $150.00 and gave the company an “equal weight” rating in a research note on Friday. One equities research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, seven have assigned a Hold rating and three have given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and an average price target of $138.18.

Insider Buying and Selling at Cullen/Frost Bankers

In other news, EVP Coolidge E. Rhodes, Jr. sold 700 shares of the company’s stock in a transaction on Tuesday, December 9th. The stock was sold at an average price of $127.00, for a total transaction of $88,900.00. Following the transaction, the executive vice president owned 3,795 shares of the company’s stock, valued at $481,965. This represents a 15.57% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. 2.89% of the stock is currently owned by insiders.

Institutional Trading of Cullen/Frost Bankers

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Private Advisor Group LLC boosted its stake in shares of Cullen/Frost Bankers by 2.9% in the 3rd quarter. Private Advisor Group LLC now owns 3,283 shares of the bank’s stock valued at $416,000 after purchasing an additional 94 shares during the last quarter. Geneos Wealth Management Inc. lifted its holdings in Cullen/Frost Bankers by 40.8% in the first quarter. Geneos Wealth Management Inc. now owns 366 shares of the bank’s stock valued at $46,000 after buying an additional 106 shares during the period. Hilltop Holdings Inc. boosted its stake in Cullen/Frost Bankers by 3.1% in the third quarter. Hilltop Holdings Inc. now owns 4,685 shares of the bank’s stock valued at $594,000 after acquiring an additional 142 shares during the last quarter. Marshall Wace LLP boosted its stake in Cullen/Frost Bankers by 4.9% in the second quarter. Marshall Wace LLP now owns 3,334 shares of the bank’s stock valued at $429,000 after acquiring an additional 156 shares during the last quarter. Finally, Benjamin Edwards Inc. grew its holdings in Cullen/Frost Bankers by 3.8% during the 2nd quarter. Benjamin Edwards Inc. now owns 4,471 shares of the bank’s stock worth $575,000 after acquiring an additional 165 shares during the period. 86.90% of the stock is owned by institutional investors.

Key Cullen/Frost Bankers News

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

• Positive Sentiment: Q4 earnings beat — Cullen/Frost reported roughly $2.56–$2.57 EPS, topping expectations, with revenue of ~$1.05B (well above consensus) driven by year‑over‑year net interest income and fee‑income growth. This outperformance is the main fundamental positive supporting the stock. Cullen/Frost Q4 Earnings Beat
• Positive Sentiment: Shareholder returns boosted — the board declared a $1.00 quarterly dividend and authorized a $300M stock‑repurchase program, which supports EPS and investor demand. Q4 & Annual Results / Buyback
• Positive Sentiment: Analyst optimism — several firms raised price targets this morning (Keefe, Bruyette & Woods to $160; Barclays to $150; RBC to $150), implying notable upside (~9–16%) from current levels and signaling improved analyst conviction. Keefe PT Raise Barclays PT Raise RBC PT Raise
• Neutral Sentiment: Board refresh — two new directors (Marsha M. Shields and Jeff Rummel) were elected and longtime director Chris Avery will retire; governance update but not an earnings driver. Board Announcement
• Neutral Sentiment: DA Davidson raised its price target (to $144) but kept a “neutral” rating, so the move is modestly supportive but not a clear buy signal. DA Davidson PT Raise
• Negative Sentiment: Expense pressure — management noted higher non‑interest expenses remain a drag on margins, which could cap near‑term upside despite revenue strength. Expense Headwinds

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.