All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.
Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
Based in San Antonio, Cullen/Frost Bankers (CFR - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of 28.42%. Currently paying a dividend of $1.03 per share, the company has a dividend yield of 2.53%. In comparison, the Banks - Southwest industry's yield is 1.53%, while the S&P 500's yield is 1.35%.
Looking at dividend growth, the company's current annualized dividend of $4.12 is up 4.3% from last year. Over the last 5 years, Cullen/Frost Bankers has increased its dividend 5 times on a year-over-year basis for an average annual increase of 7.98%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Cullen/Frost's current payout ratio is 39%, meaning it paid out 39% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for CFR for this fiscal year. The Zacks Consensus Estimate for 2026 is $10.91 per share, with earnings expected to increase 9.87% from the year ago period.
Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. However, not all companies offer a quarterly payout.
For instance, it's a rare occurrence when a tech start-up or big growth business offers its shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. With that in mind, CFR is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).
Canada Pension Plan Investment Board purchased a new stake in Cullen/Frost Bankers, Inc. (NYSE:CFR – Free Report) in the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor purchased 8,800 shares of the bank’s stock, valued at approximately $1,360,000.
Several other large investors also recently added to or reduced their stakes in the company. BlackRock Inc. purchased a new stake in shares of Cullen/Frost Bankers in the second quarter worth approximately $1,133,453,000. Norges Bank acquired a new position in Cullen/Frost Bankers during the fourth quarter valued at approximately $92,904,000. William Blair Investment Management LLC bought a new position in shares of Cullen/Frost Bankers in the second quarter worth about $89,425,000. The Manufacturers Life Insurance Company bought a new stake in shares of Cullen/Frost Bankers in the second quarter valued at approximately $80,127,000. Finally, Bank of New York Mellon Corp acquired a new stake in Cullen/Frost Bankers in the 2nd quarter worth $79,846,000. 86.90% of the stock is owned by institutional investors and hedge funds.
Insider Transactions at Cullen/Frost Bankers In other news, EVP Carol Jean Severyn sold 837 shares of the company’s stock in a transaction that occurred on Friday, June 12th. The stock was sold at an average price of $148.29, for a total value of $124,118.73. Following the transaction, the executive vice president owned 12,712 shares of the company’s stock, valued at approximately $1,885,062.48. This represents a 6.18% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 1.14% of the stock is owned by company insiders.
Wall Street Analysts Forecast Growth CFR has been the topic of a number of analyst reports. Raymond James Financial reissued a “market perform” rating on shares of Cullen/Frost Bankers in a research note on Wednesday, July 1st. Barclays raised their price target on shares of Cullen/Frost Bankers from $155.00 to $160.00 and gave the company an “equal weight” rating in a report on Tuesday, July 7th. TD Cowen upped their price target on Cullen/Frost Bankers from $169.00 to $185.00 and gave the company a “buy” rating in a research note on Monday, August 3rd. Citigroup upped their target price on shares of Cullen/Frost Bankers from $131.00 to $145.00 and gave the company a “sell” rating in a research report on Tuesday, June 30th. Finally, Zacks Research upgraded shares of Cullen/Frost Bankers from a “hold” rating to a “strong-buy” rating in a research report on Wednesday, August 5th. One analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, seven have given a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus price target of $161.75. View Our Latest Report on CFR
Cullen/Frost Bankers Trading Down 0.3% Shares of Cullen/Frost Bankers stock opened at $161.19 on Tuesday. The company has a quick ratio of 0.63, a current ratio of 0.63 and a debt-to-equity ratio of 0.05. The business’s 50 day moving average is $161.58 and its 200-day moving average is $147.46. Cullen/Frost Bankers, Inc. has a 12-month low of $119.00 and a 12-month high of $170.80. The stock has a market cap of $10.02 billion, a P/E ratio of 15.24, a P/E/G ratio of 2.48 and a beta of 0.53.
Cullen/Frost Bankers (NYSE:CFR – Get Free Report) last announced its quarterly earnings data on Thursday, July 30th. The bank reported $2.70 EPS for the quarter, beating analysts’ consensus estimates of $2.55 by $0.15. Cullen/Frost Bankers had a net margin of 23.34% and a return on equity of 15.55%. The company had revenue of $576.01 million during the quarter, compared to the consensus estimate of $589.72 million. During the same quarter last year, the firm posted $2.39 EPS. Equities research analysts predict that Cullen/Frost Bankers, Inc. will post 10.9 earnings per share for the current fiscal year.
Cullen/Frost Bankers Dividend Announcement The business also recently announced a quarterly dividend, which will be paid on Tuesday, September 15th. Stockholders of record on Monday, August 31st will be paid a dividend of $1.03 per share. This represents a $4.12 dividend on an annualized basis and a dividend yield of 2.6%. The ex-dividend date is Monday, August 31st. Cullen/Frost Bankers’s dividend payout ratio (DPR) is currently 38.94%.
(Free Report)
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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Bank of New York Mellon Corp bought a new stake in Cullen/Frost Bankers, Inc. (NYSE:CFR – Free Report) in the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund bought 516,735 shares of the bank’s stock, valued at approximately $79,846,000. Bank of New York Mellon Corp owned approximately 0.83% of Cullen/Frost Bankers at the end of the most recent reporting period.
A number of other institutional investors have also added to or reduced their stakes in CFR. Norges Bank bought a new stake in Cullen/Frost Bankers during the fourth quarter worth $92,904,000. Two Sigma Investments LP lifted its stake in Cullen/Frost Bankers by 2,024.4% during the 3rd quarter. Two Sigma Investments LP now owns 373,977 shares of the bank’s stock valued at $47,409,000 after acquiring an additional 356,373 shares in the last quarter. Northwestern Mutual Wealth Management Co. lifted its stake in Cullen/Frost Bankers by 16,676.0% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 353,470 shares of the bank’s stock valued at $44,760,000 after acquiring an additional 351,363 shares in the last quarter. Dimensional Fund Advisors LP boosted its holdings in Cullen/Frost Bankers by 18.3% during the 1st quarter. Dimensional Fund Advisors LP now owns 1,530,772 shares of the bank’s stock worth $209,833,000 after acquiring an additional 236,808 shares during the last quarter. Finally, Millennium Management LLC purchased a new position in Cullen/Frost Bankers during the 3rd quarter worth $29,687,000. 86.90% of the stock is owned by institutional investors and hedge funds.
Insider Transactions at Cullen/Frost Bankers In other news, EVP Carol Jean Severyn sold 837 shares of the firm’s stock in a transaction on Friday, June 12th. The stock was sold at an average price of $148.29, for a total value of $124,118.73. Following the completion of the transaction, the executive vice president directly owned 12,712 shares of the company’s stock, valued at $1,885,062.48. This trade represents a 6.18% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 1.14% of the stock is owned by insiders.
Analyst Upgrades and Downgrades Several analysts have recently commented on the stock. Cantor Fitzgerald increased their target price on shares of Cullen/Frost Bankers from $158.00 to $175.00 and gave the company a “neutral” rating in a report on Wednesday, August 19th. Weiss Ratings restated a “buy (b)” rating on shares of Cullen/Frost Bankers in a report on Wednesday, July 15th. Keefe, Bruyette & Woods upped their price objective on shares of Cullen/Frost Bankers from $165.00 to $175.00 and gave the stock an “outperform” rating in a research report on Friday, July 31st. Royal Bank Of Canada increased their price objective on shares of Cullen/Frost Bankers from $168.00 to $176.00 and gave the company a “sector perform” rating in a research note on Friday, July 31st. Finally, Zacks Research raised shares of Cullen/Frost Bankers from a “hold” rating to a “strong-buy” rating in a research report on Wednesday, August 5th. One investment analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, seven have given a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat, Cullen/Frost Bankers has a consensus rating of “Hold” and a consensus target price of $161.75. Read Our Latest Stock Analysis on CFR
Cullen/Frost Bankers Stock Performance Shares of CFR opened at $163.43 on Wednesday. Cullen/Frost Bankers, Inc. has a 1 year low of $119.00 and a 1 year high of $170.80. The company has a debt-to-equity ratio of 0.05, a current ratio of 0.63 and a quick ratio of 0.63. The stock’s fifty day moving average price is $160.36 and its two-hundred day moving average price is $147.01. The firm has a market cap of $10.16 billion, a PE ratio of 15.45, a PEG ratio of 2.52 and a beta of 0.53.
Cullen/Frost Bankers (NYSE:CFR – Get Free Report) last released its quarterly earnings data on Thursday, July 30th. The bank reported $2.70 EPS for the quarter, beating the consensus estimate of $2.55 by $0.15. The business had revenue of $576.01 million for the quarter, compared to the consensus estimate of $589.72 million. Cullen/Frost Bankers had a net margin of 23.34% and a return on equity of 15.55%. During the same period in the prior year, the firm earned $2.39 earnings per share. On average, equities research analysts forecast that Cullen/Frost Bankers, Inc. will post 10.9 EPS for the current year.
Cullen/Frost Bankers Dividend Announcement The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 15th. Investors of record on Monday, August 31st will be paid a $1.03 dividend. This represents a $4.12 dividend on an annualized basis and a yield of 2.5%. The ex-dividend date is Monday, August 31st. Cullen/Frost Bankers’s payout ratio is currently 38.94%.
Cullen/Frost Bankers Company Profile (Free Report)
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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Investors interested in Banks - Southwest stocks are likely familiar with Prosperity Bancshares (PB - Free Report) and Cullen/Frost Bankers (CFR - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Currently, Prosperity Bancshares has a Zacks Rank of #2 (Buy), while Cullen/Frost Bankers has a Zacks Rank of #3 (Hold). This means that PB's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
PB currently has a forward P/E ratio of 11.22, while CFR has a forward P/E of 15.13. We also note that PB has a PEG ratio of 0.79. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CFR currently has a PEG ratio of 2.53.
Another notable valuation metric for PB is its P/B ratio of 0.88. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, CFR has a P/B of 2.29.
Based on these metrics and many more, PB holds a Value grade of B, while CFR has a Value grade of C.
PB is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that PB is likely the superior value option right now.
Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
Based in San Antonio, Cullen/Frost Bankers (CFR - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of 34.31%. The financial holding company is currently shelling out a dividend of $1.03 per share, with a dividend yield of 2.42%. This compares to the Banks - Southwest industry's yield of 1.6% and the S&P 500's yield of 1.33%.
Looking at dividend growth, the company's current annualized dividend of $4.12 is up 4.3% from last year. Over the last 5 years, Cullen/Frost Bankers has increased its dividend 5 times on a year-over-year basis for an average annual increase of 7.98%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Cullen/Frost's current payout ratio is 39%, meaning it paid out 39% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for CFR for this fiscal year. The Zacks Consensus Estimate for 2026 is $10.80 per share, representing a year-over-year earnings growth rate of 8.76%.
Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. However, not all companies offer a quarterly payout.
High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, CFR is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).
Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at Cullen/Frost Bankers (CFR - Free Report) , which currently has a Momentum Style Score of A. We also discuss some of the main drivers of the Momentum Style Score, like price change and earnings estimate revisions.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Cullen/Frost Bankers currently has a Zacks Rank of #1 (Strong Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market? In order to see if CFR is a promising momentum pick, let's examine some Momentum Style elements to see if this financial holding company holds up.
Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.
For CFR, shares are up 1.28% over the past week while the Zacks Banks - Southwest industry is up 0.21% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 8.07% compares favorably with the industry's 4% performance as well.
While any stock can see a spike in price, it takes a real winner to consistently outperform the market. Over the past quarter, shares of Cullen/Frost Bankers have risen 23.38%, and are up 34.34% in the last year. In comparison, the S&P 500 has only moved 6.65% and 23.84%, respectively.
Investors should also pay attention to CFR's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. CFR is currently averaging 641,575 shares for the last 20 days.
Earnings OutlookThe Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with CFR.
Over the past two months, 5 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost CFR's consensus estimate, increasing from $10.46 to $10.82 in the past 60 days. Looking at the next fiscal year, 5 estimates have moved upwards while there have been no downward revisions in the same time period.
Bottom LineGiven these factors, it shouldn't be surprising that CFR is a #1 (Strong Buy) stock and boasts a Momentum Score of A. If you're looking for a fresh pick that's set to soar in the near-term, make sure to keep Cullen/Frost Bankers on your short list.
California State Teachers Retirement System boosted its position in Cullen/Frost Bankers, Inc. (NYSE:CFR – Free Report) by 25.3% in the 1st quarter, according to its most recent filing with the SEC. The fund owned 72,412 shares of the bank’s stock after purchasing an additional 14,607 shares during the period. California State Teachers Retirement System owned about 0.12% of Cullen/Frost Bankers worth $9,926,000 as of its most recent filing with the SEC.
A number of other hedge funds and other institutional investors have also bought and sold shares of CFR. Private Advisor Group LLC lifted its position in shares of Cullen/Frost Bankers by 2.9% in the third quarter. Private Advisor Group LLC now owns 3,283 shares of the bank’s stock valued at $416,000 after buying an additional 94 shares during the last quarter. Cardinal Capital Management increased its holdings in shares of Cullen/Frost Bankers by 0.5% during the 4th quarter. Cardinal Capital Management now owns 18,134 shares of the bank’s stock worth $2,296,000 after acquiring an additional 98 shares during the last quarter. Evolve Private Wealth LLC raised its stake in Cullen/Frost Bankers by 6.0% in the 1st quarter. Evolve Private Wealth LLC now owns 1,726 shares of the bank’s stock valued at $237,000 after acquiring an additional 98 shares during the period. Covestor Ltd raised its stake in Cullen/Frost Bankers by 67.6% in the 4th quarter. Covestor Ltd now owns 248 shares of the bank’s stock valued at $31,000 after acquiring an additional 100 shares during the period. Finally, Oregon Public Employees Retirement Fund lifted its holdings in Cullen/Frost Bankers by 0.8% during the 1st quarter. Oregon Public Employees Retirement Fund now owns 12,921 shares of the bank’s stock valued at $1,771,000 after purchasing an additional 100 shares during the last quarter. Institutional investors own 86.90% of the company’s stock.
Analyst Ratings Changes A number of equities analysts have commented on the stock. Barclays lifted their price objective on shares of Cullen/Frost Bankers from $155.00 to $160.00 and gave the stock an “equal weight” rating in a research report on Tuesday, July 7th. Keefe, Bruyette & Woods raised their target price on shares of Cullen/Frost Bankers from $165.00 to $175.00 and gave the stock an “outperform” rating in a research note on Friday. Morgan Stanley lifted their target price on shares of Cullen/Frost Bankers from $133.00 to $141.00 and gave the stock an “underweight” rating in a report on Monday, June 29th. Citigroup upped their price target on shares of Cullen/Frost Bankers from $131.00 to $145.00 and gave the company a “sell” rating in a research note on Tuesday, June 30th. Finally, DA Davidson increased their price target on shares of Cullen/Frost Bankers from $143.00 to $144.00 and gave the company a “neutral” rating in a report on Monday, May 4th. Four investment analysts have rated the stock with a Buy rating, seven have given a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of “Hold” and a consensus target price of $160.33.
View Our Latest Analysis on Cullen/Frost Bankers
Cullen/Frost Bankers Trading Up 1.5% Shares of Cullen/Frost Bankers stock opened at $168.84 on Tuesday. The company has a market capitalization of $10.60 billion, a price-to-earnings ratio of 15.96, a PEG ratio of 2.91 and a beta of 0.53. The company has a quick ratio of 0.63, a current ratio of 0.63 and a debt-to-equity ratio of 0.05. Cullen/Frost Bankers, Inc. has a 12-month low of $119.00 and a 12-month high of $169.68. The firm’s 50-day moving average price is $152.10 and its two-hundred day moving average price is $143.92.
Cullen/Frost Bankers (NYSE:CFR – Get Free Report) last issued its earnings results on Thursday, July 30th. The bank reported $2.70 EPS for the quarter, beating the consensus estimate of $2.55 by $0.15. Cullen/Frost Bankers had a net margin of 23.34% and a return on equity of 15.55%. The company had revenue of $608.65 million during the quarter, compared to analysts’ expectations of $589.72 million. During the same period in the previous year, the company earned $2.39 EPS. On average, analysts forecast that Cullen/Frost Bankers, Inc. will post 10.79 earnings per share for the current fiscal year.
Cullen/Frost Bankers Announces Dividend The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 15th. Shareholders of record on Monday, August 31st will be given a dividend of $1.03 per share. This represents a $4.12 annualized dividend and a yield of 2.4%. The ex-dividend date is Monday, August 31st. Cullen/Frost Bankers’s payout ratio is currently 38.94%.
Insiders Place Their Bets In other Cullen/Frost Bankers news, EVP Carol Jean Severyn sold 837 shares of the firm’s stock in a transaction on Friday, June 12th. The stock was sold at an average price of $148.29, for a total value of $124,118.73. Following the sale, the executive vice president owned 12,712 shares of the company’s stock, valued at approximately $1,885,062.48. This trade represents a 6.18% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 1.14% of the stock is owned by insiders.
Cullen/Frost Bankers Company Profile (Free Report)
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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Cullen Frost Bankers common shares have surged over 30% YTD, making upside limited at current valuations. I prefer the CFR.PR.B preferred shares, trading at a 34% discount to par and yielding 6.7%, as an alternative income play. CFR's loan growth remains robust at 8.2% YoY, with a conservative 52% loan-to-deposit ratio supporting stable funding.
Key Takeaways Cullen/Frost posted Q2 EPS of $2.70, topping estimates on net interest and fee income growth.CFR loans grew to $23B and deposits rose to $43.3B, while credit loss expense declined y/y.Cullen/Frost capital ratios increased and it repurchased 654,955 shares for $90.9M in Q2. Cullen/Frost Bankers, Inc. (CFR - Free Report) reported second-quarter 2026 earnings per share of $2.70, beating the Zacks Consensus Estimate of $2.53. The bottom line also increased from $2.39 in the year-ago quarter.
Results benefited from higher net interest income (NII) and non-interest income. However, higher non-interest expenses remained a headwind.
Net income available to common shareholders was $170.4 million, up 9.7% from $155.3 million in the second quarter of 2025.
CFR’s Revenues & Expenses IncreaseTotal revenues were $598.4 million, topping the Zacks Consensus Estimate by 0.7%. The metric also improved from $567.8 million in the year-ago quarter.
NII rose 4.3% year over year to $470.1 million in the second quarter of 2026. Our estimate for NII was $446.6 million.
Non-interest income increased 9.4% year over year to $128.3 million. The rise was driven by higher trust and investment management fees, service charges on deposit accounts, interchange and card transaction fees, and other income. Our estimate for non-interest income was $126 million.
Non-interest expenses totaled $361.7 million, up 4.2% year over year. The increase was primarily attributable to higher salaries and wages, employee benefits, net occupancy, and technology, furniture and equipment expenses. Our estimate for non-interest expenses was $372.6 million.
CFR’s Loans & Deposits RiseTotal loans were $23.0 billion as of June 30, 2026, up from $22.4 billion in the prior quarter. Total deposits increased to $43.3 billion from $42.8 billion in the prior quarter. Our estimates for total loans and total deposits were $22.5 billion and $42.4 billion, respectively.
Cullen/Frost’s Credit Quality ImprovesFor the second quarter of 2026, the company recorded credit loss expenses of $9.8 million, down from $13.1 million in the prior-year quarter.
The allowance for credit losses on loans was $283.7 million at the quarter-end, representing 1.23% of the total loans compared with 1.31% a year earlier. Our estimate for the metric was pegged at $288.2 million.
CFR’s Capital Ratios & Profitability Ratios ImproveAs of June 30, 2026, the common equity Tier 1 risk-based capital ratio was 14.06% compared with 13.95% a year ago. The Tier 1 risk-based capital ratio was 14.50% versus 14.41%, while the total risk-based capital ratio improved to 15.89% from 15.87%.
The leverage ratio was 9.07%, up from 8.97% in the prior-year period.
Return on average assets was 1.29% compared with 1.25% a year earlier, while return on average common equity was 14.90% versus 15.34% in the prior-year quarter.
CFR Dividend & Share Repurchase UpdateThe company paid out a quarterly cash dividend of $1.03 per common share during the quarter.
In the second quarter, Cullen/Frost repurchased 654,955 shares for $90.9 million.
Our Viewpoint on Cullen/FrostCFR continued to benefit from steady growth in net interest income and fee-based revenues, while credit quality remained solid. Loan growth and a strong capital position are encouraging. However, higher operating expenses could continue to weigh on profitability in the near term.
Currently, CFR carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other BanksPopular, Inc. (BPOP - Free Report) reported second-quarter 2026 earnings per share of $4.35, which surpassed the Zacks Consensus Estimate of $3.69. The bottom line compared favorably with $3.09 in the year-ago quarter.
BPOP’s results benefited from higher NII, strong fee income growth and rising loan and deposit balances. Lower operating expenses on a year-over-year basis were also encouraging. However, higher provisions and net charge-offs were headwinds.
Hancock Whitney Corp.’s (HWC - Free Report) second-quarter 2026 earnings per share of $1.55 met the Zacks Consensus Estimate. The bottom line rose 17.4% from the prior-year quarter.
HWC’s results were supported by higher net interest income and non-interest income, along with a decline in provisions. Also, a sequential increase in loans and deposit balances was positive. However, higher expenses were the undermining factor.
Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
Based in San Antonio, Cullen/Frost Bankers (CFR - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of 29.11%. The financial holding company is paying out a dividend of $1.03 per share at the moment, with a dividend yield of 2.52% compared to the Banks - Southwest industry's yield of 1.6% and the S&P 500's yield of 1.33%.
Looking at dividend growth, the company's current annualized dividend of $4.12 is up 4.3% from last year. Over the last 5 years, Cullen/Frost Bankers has increased its dividend 5 times on a year-over-year basis for an average annual increase of 7.98%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Cullen/Frost's current payout ratio is 39%, meaning it paid out 39% of its trailing 12-month EPS as dividend.
CFR is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2026 is $10.57 per share, with earnings expected to increase 6.45% from the year ago period.
Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. It's important to keep in mind that not all companies provide a quarterly payout.
High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. With that in mind, CFR is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).
Are Major U.S. Banks At Risk Of Credit-Ratings Downgrades? Cullen/Frost Bankers NYSE: CFR reported second-quarter 2026 net income of $170.4 million, up 9.7% from $155.3 million a year earlier, as the Texas-focused bank cited loan growth, customer acquisition and expanding fee revenue. Earnings per share rose 13% year over year to $2.70.
Chairman and Chief Executive Officer Phil Green said the company generated a 1.30% return on average assets and a 15.41% return on average common equity during the quarter. Average deposits increased to $42.6 billion from $41.8 billion a year earlier, while average loans rose to $22.6 billion from $21.1 billion.
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Consumer and Commercial Growth Time To Buy Regional Banks? Insider Buying Says YesGreen said consumer checking-account household growth accelerated to 5.7% year over year, compared with 5.3% reported a year earlier. Consumer checking accounts have increased 47% since Frost began its expansion effort in late 2018, and about one-third of its customers are new to the bank since that initiative began, he said.
Consumer loans ended the quarter above $4.5 billion, increasing $751 million, or 20%, from the prior year. Mortgage lending accounted for $533 million of that growth, while second-lien home equity products grew by $198 million. Green said consumer deposits declined 0.7% from the first quarter, primarily reflecting seasonal patterns.
2 Regional Banks to Buy Amid the ChaosCommercial activity also strengthened. The bank’s 90-day weighted loan pipeline reached a record $2.17 billion, up 11% from the first quarter. About half of the pipeline was commercial and industrial lending and half was commercial real estate, while 62% represented existing customer opportunities.
New loan commitments rose 23% from the first quarter, with growth across C&I, commercial real estate, energy and personal lending. New commercial relationships declined 1% sequentially but remained above 1,000 for the fifth consecutive quarter. Green said market disruption continued to support relationship acquisition, with new relationships from that source up 65% year to date from the same period in 2025.
Branch Expansion Adds Deposits and Loans Group Executive Vice President and Chief Financial Officer Dan Geddes said the branch expansion program contributed $0.16 per share of earnings, or 5.8% of total EPS, in the second quarter. Expansion branches have grown to $3 billion in loans, $3.7 billion in deposits and more than 100,000 new households.
Average loans from the expansion markets rose 38% year over year and accounted for 53% of the company’s total loan growth. Expansion-market deposits increased 20% and contributed 72% of deposit growth.
The company opened five new locations during the quarter, including branches in the Austin, Dallas, San Antonio and Fort Worth regions. It plans to open another five branches during the remainder of 2026.
Green said the company is seeing greater competitive pressure in lending, particularly on commercial real estate loan structures. Cullen/Frost has been competing on pricing for desirable relationships, he said, but does not plan to sacrifice credit standards to pursue growth. Geddes said competition for deposits has been especially notable on large-balance certificates of deposit and money-market accounts.
Margin, Securities and Updated Outlook Net interest margin was 3.75% in the second quarter, up 1 basis point from the first quarter. Geddes said the margin benefited from shifting earning assets from lower-yielding Federal Reserve balances into loans and investment securities, partly offset by higher interest-bearing deposit volumes and deposit costs.
The investment portfolio averaged $20.6 billion, up $796 million from the previous quarter. The company purchased $2.2 billion of securities, primarily agency mortgage-backed securities yielding 5.32% and municipal securities yielding 5.57% on a tax-equivalent basis. The portfolio’s taxable-equivalent yield increased 11 basis points sequentially to 3.96%.
Geddes said Cullen/Frost expects to invest about $1 billion more in securities during the second half, generally split between agency and municipal securities. He also pointed to fixed-rate loan and securities repricing as support for net interest income and margin trends.
Full-year net interest income growth is expected to be 4.75% to 5.25%, compared with prior guidance of 3.5% to 5%. Average loan growth is expected to be 7% to 8%, up from prior guidance of 6% to 7%. Average deposit growth guidance remained 2% to 3%. Net interest margin is expected to improve by about 10 to 13 basis points from the 2025 full-year margin of 3.66%. Non-interest expense growth is projected at 4.5% to 5%, lower than prior guidance of 5% to 6%. Net charge-offs are expected to range from 15 to 20 basis points of average loans for 2026. The outlook assumes one 25-basis-point Federal Reserve rate increase in September. Geddes said such an increase would have an estimated impact of roughly $2 million per month.
Credit Quality and Capital Actions Total criticized loans declined to $917 million at quarter-end from $989 million in both the prior quarter and the year-earlier period. Nonperforming assets increased to $114 million from $73 million in the first quarter, largely due to a $54 million multifamily commercial real estate loan in Austin.
Green said the owners of the property are negotiating a sale and that the company expects a resolution in the third or fourth quarter, with little, if any, impact to the bank. The loan carries an approximately $1.5 million reserve, management said. The rise in nonperforming assets was partly offset by a $20 million paydown on another previously identified nonperforming loan.
Second-quarter net charge-offs were $9.5 million, equal to 17 basis points of average loans on an annualized basis. Geddes said the company views its reserve level as stable, noting that its funded and unfunded allowance represented 1.45% of total loans at quarter-end.
Cullen/Frost repurchased approximately 655,000 shares for $90 million during the second quarter under its $300 million authorized share repurchase plan.
About Cullen/Frost Bankers (NYSE:CFR)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.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Cullen/Frost Bankers (CFR - Free Report) came out with quarterly earnings of $2.7 per share, beating the Zacks Consensus Estimate of $2.53 per share. This compares to earnings of $2.39 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +6.72%. A quarter ago, it was expected that this financial holding company would post earnings of $2.46 per share when it actually produced earnings of $2.65, delivering a surprise of +7.72%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Cullen/Frost, which belongs to the Zacks Banks - Southwest industry, posted revenues of $598.35 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.71%. This compares to year-ago revenues of $567.83 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Cullen/Frost shares have added about 31.8% since the beginning of the year versus the S&P 500's gain of 6.9%.
What's Next for Cullen/Frost?While Cullen/Frost has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Cullen/Frost was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.61 on $608.07 million in revenues for the coming quarter and $10.57 on $2.42 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Southwest is currently in the top 14% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the broader Zacks Finance sector, CNA Financial (CNA - Free Report) , is yet to report results for the quarter ended June 2026. The results are expected to be released on August 3.
This insurance holding company is expected to post quarterly earnings of $1.04 per share in its upcoming report, which represents a year-over-year change of -15.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
CNA Financial's revenues are expected to be $3.35 billion, down 0.6% from the year-ago quarter.
For the quarter ended June 2026, Cullen/Frost Bankers (CFR - Free Report) reported revenue of $598.35 million, up 5.4% over the same period last year. EPS came in at $2.70, compared to $2.39 in the year-ago quarter.
The reported revenue represents a surprise of +0.71% over the Zacks Consensus Estimate of $594.16 million. With the consensus EPS estimate being $2.53, the EPS surprise was +6.72%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Cullen/Frost performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Net charge-offs annualized as a percentage of average loans: 0.2% compared to the 0.2% average estimate based on three analysts.Total earning assets and average rate earned - Average balance: $49.08 billion versus $49.17 billion estimated by three analysts on average.Net Interest Margin (FTE): 3.8% versus the three-analyst average estimate of 3.8%.Non-accrual loans: $112.72 million versus the two-analyst average estimate of $69.78 million.Book value per common share at end of quarter: $72.04 versus $71.60 estimated by two analysts on average.Total Non-Interest Income: $128.28 million versus $127.35 million estimated by three analysts on average.Net Interest Income (FTE): $470.07 million versus $466.81 million estimated by three analysts on average.Service charges on deposit accounts: $34.18 million versus the two-analyst average estimate of $32.23 million.Net Interest Income: $447.73 million versus the two-analyst average estimate of $445.11 million.Insurance commissions and fees: $14.17 million versus $15.14 million estimated by two analysts on average.Trust and investment management fees: $47.64 million compared to the $46.15 million average estimate based on two analysts.Other charges, commissions and fees: $13.79 million versus the two-analyst average estimate of $14.03 million.View all Key Company Metrics for Cullen/Frost here>>>
Shares of Cullen/Frost have returned +7.2% over the past month versus the Zacks S&P 500 composite's -1.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Board declares third quarter dividend on common and preferred stock
, /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 Common Equity Tier 1, Tier 1 and Total Risk-Based Capital Ratios at the end of the second quarter of 2026 were 13.95 percent, 14.38 percent and 15.74 percent, respectively, and continue to be in excess of well-capitalized levels and exceed Basel III minimum requirements. During the second quarter, our base of customer households continued to grow. Total households, including consumer and commercial customers, grew by 5.9 percent from June, 2025 to June, 2026. Net interest income on a taxable-equivalent basis was $470.1 million for the second quarter of 2026, an increase of 4.3 percent, compared to $450.6 million for the second quarter of 2025. Net interest margin was 3.75 percent for the second quarter of 2026 compared to 3.67 percent for the second quarter of 2025 and 3.74 percent for the first quarter of 2026. Non-interest income for the second quarter of 2026 totaled $128.3 million, an increase of $11.0 million, or 9.4 percent, from the $117.3 million reported for the second quarter of 2025. Trust and investment management fees increased $4.0 million, or 9.1 percent, compared to the second quarter of 2025. The increase in trust and investment management fees during the second quarter was primarily related to increases in investment management fees (up $4.2 million). Investment management fees are generally based on the market value of assets within customer accounts and are thus impacted by price movements in the equity and bond markets. Service charges on deposit accounts increased $5.0 million, or 17.2 percent, compared to the second quarter of 2025, driven in part by growth in our base of customers and growth in customer transaction volumes. Other non-interest income increased $974,000, or 8.9 percent, compared to the second quarter of 2025. The increase during the second quarter was primarily related to increases in sundry and other miscellaneous income (up $1.5 million), partly offset by a decrease in public finance underwriting fees (down $425,000). The primary driver of the $1.5 million increase in sundry and other miscellaneous income was $2.2 million of one-time COVID payroll tax refunds that were received during the second quarter. Non-interest expense was $361.7 million for the second quarter of 2026, up $14.6 million, or 4.2 percent, compared to the $347.1 million reported for the second quarter a year earlier. Salaries and wages expense increased $10.8 million, or 6.7 percent, compared to the second quarter of 2025. The increase in salaries and wages was primarily related to increases in salaries due to annual merit and market increases, as well as growth in the number of employees. Employee benefits expense increased by $2.3 million, or 7.1 percent, compared to the second quarter of 2025. The increase in employee benefits expense was primarily related to increases in medical/dental benefits expense (up $1.6 million) and payroll taxes (up $530,000). Technology, furniture, and equipment expense increased $2.0 million, or 4.9 percent, compared to the second quarter of 2025. The increase was primarily related to increased cloud services expense (up $1.0 million) and service contracts expense (up $583,000). Other non-interest expense decreased $854,000, or 1.2 percent, compared to the second quarter of 2025. The decrease included decreases in sundry and other miscellaneous expense (down $1.6 million), advertising/promotions expense (down $853,000), and business development expense (down $638,000); among other things. For the second quarter of 2026, the company reported a credit loss expense of $9.8 million, and reported net charge-offs of $9.5 million. This compares to a credit loss expense of $6.7 million and net charge-offs of $5.7 million for the first quarter of 2026 and a credit loss expense of $13.1 million and net charge-offs of $11.2 million for the second quarter of 2025. The allowance for credit losses on loans as a percentage of total loans was 1.23 percent at June 30, 2026, compared to 1.28 percent at the end of the first quarter of 2026 and 1.31 percent at the end of the second quarter of 2025. Non-accrual loans were $112.7 million at the end of the second quarter of 2026, compared to $72.4 million at the end of the first quarter of 2026 and $62.4 million at the end of the second quarter of 2025. During the second quarter of 2026, we repurchased 654,955 shares at a total cost of $90.0 million under our board-authorized stock repurchase plan. As of the end of the second quarter, we had $140.0 million remaining under our current $300 million repurchase authorization, which expires in January of 2027. 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 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:
The effects of and changes in trade and monetary and fiscal policies and laws, including the interest rate policies of the Federal Reserve Board and the implementation of tariffs and other protectionist trade policies. Inflation, interest rate, securities market, and monetary fluctuations. Local, regional, national, and international economic conditions and the impact they may have on us and our customers and our assessment of that impact. Changes in the financial performance and/or condition of our borrowers. Changes in the mix of loan geographies, sectors and types or the level of non-performing assets and charge-offs. Changes in estimates of future credit loss reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements. Changes in our liquidity position. Impairment of our goodwill or other intangible assets. The timely development and acceptance of new products and services and perceived overall value of these products and services by users. Changes in consumer spending, borrowing, and saving habits. Greater than expected costs or difficulties related to the integration of new products and lines of business. Technological changes, including advances in artificial intelligence and quantum computing. The cost and effects of cyber incidents or other failures, interruptions, or security breaches of our systems or those of our customers or third-party providers. Acquisitions and integration of acquired businesses. Changes in the reliability of our vendors, internal control systems or information systems. Our ability to increase market share and control expenses. Our ability to attract and retain qualified employees. Changes in our organization, compensation, and benefit plans. The soundness of other financial institutions. Volatility and disruption in national and international financial and commodity markets. Changes in the competitive environment in our markets and among banking organizations and other financial service providers. Government intervention in the U.S. financial system. Political or economic instability. Acts of God or of war or terrorism. The potential impact of climate change. The impact of pandemics, epidemics, or any other health-related crisis. The costs and effects of legal and regulatory developments, the resolution of legal proceedings or regulatory or other governmental inquiries, the results of regulatory examinations or reviews and the ability to obtain required regulatory approvals. The effect of changes in laws and regulations (including laws and regulations concerning taxes, banking, securities, and insurance) and their application with which we and our subsidiaries must comply. The effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board and other accounting standard setters. Our success at managing the risks involved in the foregoing items. 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)
Aristotle Capital Management LLC cut its holdings in shares of Cullen/Frost Bankers, Inc. (NYSE:CFR – Free Report) by 4.9% during the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 4,765,009 shares of the bank’s stock after selling 245,169 shares during the period. Aristotle Capital Management LLC owned about 7.59% of Cullen/Frost Bankers worth $653,197,000 as of its most recent SEC filing.
Several other hedge funds have also made changes to their positions in CFR. Goldman Sachs Group Inc. raised its stake in Cullen/Frost Bankers by 61.6% in the first quarter. Goldman Sachs Group Inc. now owns 605,697 shares of the bank’s stock valued at $75,833,000 after buying an additional 230,993 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its stake in Cullen/Frost Bankers by 9.9% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 166,900 shares of the bank’s stock worth $20,896,000 after purchasing an additional 15,063 shares during the last quarter. Geneos Wealth Management Inc. lifted its stake in Cullen/Frost Bankers by 40.8% during the first quarter. Geneos Wealth Management Inc. now owns 366 shares of the bank’s stock worth $46,000 after purchasing an additional 106 shares during the last quarter. Invesco Ltd. boosted its holdings in Cullen/Frost Bankers by 12.2% in the second quarter. Invesco Ltd. now owns 126,040 shares of the bank’s stock valued at $16,201,000 after purchasing an additional 13,718 shares in the last quarter. Finally, EverSource Wealth Advisors LLC increased its stake in Cullen/Frost Bankers by 82.9% in the second quarter. EverSource Wealth Advisors LLC now owns 1,174 shares of the bank’s stock valued at $151,000 after purchasing an additional 532 shares during the last quarter. Institutional investors and hedge funds own 86.90% of the company’s stock.
Insider Buying and Selling at Cullen/Frost Bankers In other news, EVP Carol Jean Severyn sold 837 shares of the business’s stock in a transaction on Friday, June 12th. The shares were sold at an average price of $148.29, for a total value of $124,118.73. Following the completion of the transaction, the executive vice president owned 12,712 shares of the company’s stock, valued at $1,885,062.48. The trade was a 6.18% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 1.14% of the stock is currently owned by company insiders.
Cullen/Frost Bankers Trading Up 1.7% NYSE:CFR opened at $164.23 on Friday. The firm has a market capitalization of $10.31 billion, a P/E ratio of 15.99, a P/E/G ratio of 2.88 and a beta of 0.54. The business has a 50 day simple moving average of $148.81 and a 200 day simple moving average of $142.56. The company has a debt-to-equity ratio of 0.05, a current ratio of 0.65 and a quick ratio of 0.65. Cullen/Frost Bankers, Inc. has a 12-month low of $119.00 and a 12-month high of $165.16.
Cullen/Frost Bankers (NYSE:CFR – Get Free Report) last announced its earnings results on Thursday, April 30th. The bank reported $2.65 EPS for the quarter, topping the consensus estimate of $2.49 by $0.16. The company had revenue of $574.84 million during the quarter, compared to analysts’ expectations of $587.28 million. Cullen/Frost Bankers had a net margin of 22.86% and a return on equity of 15.58%. During the same period last year, the company posted $2.30 earnings per share. Equities research analysts predict that Cullen/Frost Bankers, Inc. will post 10.57 EPS for the current year.
Cullen/Frost Bankers Increases Dividend The firm also recently declared a quarterly dividend, which was paid on Monday, June 15th. Investors of record on Friday, May 29th were paid a dividend of $1.03 per share. This represents a $4.12 dividend on an annualized basis and a dividend yield of 2.5%. This is a positive change from Cullen/Frost Bankers’s previous quarterly dividend of $1.00. The ex-dividend date of this dividend was Friday, May 29th. Cullen/Frost Bankers’s payout ratio is presently 40.12%.
Analyst Upgrades and Downgrades A number of brokerages have recently commented on CFR. Jefferies Financial Group raised shares of Cullen/Frost Bankers from an “underperform” rating to a “hold” rating and upped their target price for the company from $135.00 to $160.00 in a report on Monday, July 6th. Weiss Ratings reissued a “buy (b)” rating on shares of Cullen/Frost Bankers in a research note on Wednesday, July 15th. DA Davidson lifted their target price on shares of Cullen/Frost Bankers from $143.00 to $144.00 and gave the company a “neutral” rating in a report on Monday, May 4th. Raymond James Financial reiterated a “market perform” rating on shares of Cullen/Frost Bankers in a research note on Wednesday, July 1st. Finally, Cantor Fitzgerald lifted their price objective on Cullen/Frost Bankers from $154.00 to $158.00 and gave the company a “neutral” rating in a report on Wednesday, July 15th. Two investment analysts have rated the stock with a Strong Buy rating, two have given a Buy rating, seven have given a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, Cullen/Frost Bankers currently has a consensus rating of “Hold” and a consensus target price of $152.42.
Get Our Latest Research Report on Cullen/Frost Bankers
Cullen/Frost Bankers Profile (Free Report)
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.
See Also Five stocks we like better than Cullen/Frost Bankers AMD and Cerbras Create A New Blueprint For Hardware Intel Earnings Reveal Whether the Chip Selloff Created a Buy CrowdStrike’s Cerebras Deal Puts Its AI Security Strategy to the Test Plugging In: How Kinder Morgan Powers Up Profits Want to see what other hedge funds are holding CFR? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Cullen/Frost Bankers, Inc. (NYSE:CFR – Free Report).
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Cullen/Frost Bankers (CFR - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The earnings report, which is expected to be released on July 30, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis financial holding company is expected to post quarterly earnings of $2.53 per share in its upcoming report, which represents a year-over-year change of +5.9%.
Revenues are expected to be $594.16 million, up 4.6% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.22% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Cullen/Frost?For Cullen/Frost, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +1.19%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that Cullen/Frost will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Cullen/Frost would post earnings of $2.46 per share when it actually produced earnings of $2.65, delivering a surprise of +7.72%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Cullen/Frost appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
An Industry Player's Expected ResultsAnother stock from the Zacks Banks - Southwest industry, FinWise Bancorp (FINW - Free Report) , is soon expected to post earnings of $0.24 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of -17.2%. Revenues for the quarter are expected to be $46.02 million, up 83.6% from the year-ago quarter.
Over the last 30 days, the consensus EPS estimate for FinWise Bancorp has remained unchanged. Nevertheless, the company now has an Earnings ESP of -8.33%, reflecting a lower Most Accurate Estimate.
This Earnings ESP, combined with its Zacks Rank #3 (Hold), makes it difficult to conclusively predict that FinWise Bancorp will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates two times.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Bank of New York Mellon Corp boosted its holdings in shares of Cullen/Frost Bankers, Inc. (NYSE:CFR – Free Report) by 0.7% during the 1st quarter, according to its most recent 13F filing with the SEC. The fund owned 543,468 shares of the bank’s stock after purchasing an additional 3,755 shares during the period. Bank of New York Mellon Corp owned approximately 0.86% of Cullen/Frost Bankers worth $74,499,000 as of its most recent filing with the SEC.
A number of other institutional investors also recently bought and sold shares of CFR. Advisory Services Network LLC acquired a new stake in shares of Cullen/Frost Bankers during the third quarter worth about $28,000. Covestor Ltd increased its holdings in shares of Cullen/Frost Bankers by 67.6% in the fourth quarter. Covestor Ltd now owns 248 shares of the bank’s stock valued at $31,000 after purchasing an additional 100 shares during the period. Blue Trust Inc. increased its stake in Cullen/Frost Bankers by 252.1% in the 4th quarter. Blue Trust Inc. now owns 257 shares of the bank’s stock valued at $33,000 after buying an additional 184 shares during the period. Matrix Trust Co raised its holdings in Cullen/Frost Bankers by 40.4% during the fourth quarter. Matrix Trust Co now owns 320 shares of the bank’s stock worth $41,000 after purchasing an additional 92 shares in the last quarter. Finally, Geneos Wealth Management Inc. raised its stake in shares of Cullen/Frost Bankers by 40.8% during the 1st quarter. Geneos Wealth Management Inc. now owns 366 shares of the bank’s stock worth $46,000 after buying an additional 106 shares in the last quarter. 86.90% of the stock is currently owned by institutional investors and hedge funds.
Insider Buying and Selling In other Cullen/Frost Bankers news, EVP Carol Jean Severyn sold 837 shares of the business’s stock in a transaction on Friday, June 12th. The stock was sold at an average price of $148.29, for a total value of $124,118.73. Following the completion of the transaction, the executive vice president directly owned 12,712 shares in the company, valued at approximately $1,885,062.48. The trade was a 6.18% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Insiders own 1.14% of the company’s stock.
Analyst Ratings Changes CFR has been the subject of several recent analyst reports. Jefferies Financial Group upgraded shares of Cullen/Frost Bankers from an “underperform” rating to a “hold” rating and raised their price objective for the company from $135.00 to $160.00 in a research note on Monday, July 6th. Barclays boosted their price target on Cullen/Frost Bankers from $155.00 to $160.00 and gave the stock an “equal weight” rating in a research note on Tuesday, July 7th. Cantor Fitzgerald raised their price objective on Cullen/Frost Bankers from $154.00 to $158.00 and gave the company a “neutral” rating in a research note on Wednesday, July 15th. TD Cowen raised Cullen/Frost Bankers to a “strong-buy” rating in a report on Monday, April 13th. Finally, Raymond James Financial reiterated a “market perform” rating on shares of Cullen/Frost Bankers in a research report on Wednesday, July 1st. Two investment analysts have rated the stock with a Strong Buy rating, two have issued a Buy rating, seven have issued a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $152.42.
View Our Latest Analysis on Cullen/Frost Bankers
Cullen/Frost Bankers Price Performance Shares of NYSE:CFR opened at $162.49 on Wednesday. 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 business’s fifty day moving average price is $147.14 and its two-hundred day moving average price is $141.92. The stock has a market cap of $10.20 billion, a PE ratio of 15.82, a price-to-earnings-growth ratio of 2.89 and a beta of 0.54. Cullen/Frost Bankers, Inc. has a one year low of $119.00 and a one year high of $163.80.
Cullen/Frost Bankers (NYSE:CFR – Get Free Report) last posted its quarterly earnings data on Thursday, April 30th. The bank reported $2.65 EPS for the quarter, beating analysts’ consensus estimates of $2.49 by $0.16. The business had revenue of $574.84 million for the quarter, compared to analyst estimates of $587.28 million. Cullen/Frost Bankers had a return on equity of 15.58% and a net margin of 22.86%.During the same quarter last year, the company earned $2.30 earnings per share. On average, analysts forecast that Cullen/Frost Bankers, Inc. will post 10.57 EPS for the current fiscal year.
Cullen/Frost Bankers Increases Dividend The company also recently announced a quarterly dividend, which was paid on Monday, June 15th. Shareholders of record on Friday, May 29th were paid a $1.03 dividend. This represents a $4.12 annualized dividend and a yield of 2.5%. The ex-dividend date of this dividend was Friday, May 29th. This is an increase from Cullen/Frost Bankers’s previous quarterly dividend of $1.00. Cullen/Frost Bankers’s dividend payout ratio is presently 40.12%.
Cullen/Frost Bankers Profile (Free Report)
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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Bessemer Group Inc. decreased its position in Cullen/Frost Bankers, Inc. (NYSE:CFR – Free Report) by 32.4% during the 1st quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 126,245 shares of the bank’s stock after selling 60,493 shares during the quarter. Bessemer Group Inc. owned 0.20% of Cullen/Frost Bankers worth $17,306,000 at the end of the most recent quarter.
Other institutional investors also recently added to or reduced their stakes in the company. M&T Bank Corp lifted its position in shares of Cullen/Frost Bankers by 13.5% during the 4th quarter. M&T Bank Corp now owns 109,154 shares of the bank’s stock worth $13,822,000 after purchasing an additional 12,990 shares during the last quarter. Concurrent Investment Advisors LLC grew its stake in shares of Cullen/Frost Bankers by 863.1% during the fourth quarter. Concurrent Investment Advisors LLC now owns 21,448 shares of the bank’s stock worth $2,716,000 after purchasing an additional 19,221 shares in the last quarter. ProShare Advisors LLC increased its holdings in Cullen/Frost Bankers by 3.7% in the fourth quarter. ProShare Advisors LLC now owns 268,194 shares of the bank’s stock valued at $33,961,000 after buying an additional 9,612 shares during the last quarter. Tudor Investment Corp ET AL raised its stake in Cullen/Frost Bankers by 915.0% in the third quarter. Tudor Investment Corp ET AL now owns 43,036 shares of the bank’s stock valued at $5,456,000 after buying an additional 38,796 shares in the last quarter. Finally, Verition Fund Management LLC raised its stake in Cullen/Frost Bankers by 52.8% in the fourth quarter. Verition Fund Management LLC now owns 130,944 shares of the bank’s stock valued at $16,581,000 after buying an additional 45,254 shares in the last quarter. Hedge funds and other institutional investors own 86.90% of the company’s stock.
Cullen/Frost Bankers Trading Down 1.2% Shares of CFR stock opened at $161.48 on Friday. The company has a market capitalization of $10.14 billion, a P/E ratio of 15.72, a price-to-earnings-growth ratio of 2.88 and a beta of 0.54. The company has a current ratio of 0.65, a quick ratio of 0.65 and a debt-to-equity ratio of 0.05. The business’s 50 day moving average is $146.08 and its two-hundred day moving average is $141.34. Cullen/Frost Bankers, Inc. has a twelve month low of $119.00 and a twelve month high of $163.80.
Cullen/Frost Bankers (NYSE:CFR – Get Free Report) last announced its quarterly earnings data on Thursday, April 30th. The bank reported $2.65 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.49 by $0.16. The company had revenue of $574.84 million for the quarter, compared to analysts’ expectations of $587.28 million. Cullen/Frost Bankers had a net margin of 22.86% and a return on equity of 15.58%. During the same period in the previous year, the company posted $2.30 EPS. Equities analysts forecast that Cullen/Frost Bankers, Inc. will post 10.57 EPS for the current year.
Cullen/Frost Bankers Increases Dividend The company also recently announced a quarterly dividend, which was paid on Monday, June 15th. Stockholders of record on Friday, May 29th were issued a $1.03 dividend. The ex-dividend date of this dividend was Friday, May 29th. This is a positive change from Cullen/Frost Bankers’s previous quarterly dividend of $1.00. This represents a $4.12 annualized dividend and a dividend yield of 2.6%. Cullen/Frost Bankers’s payout ratio is presently 40.12%.
Insider Activity In other news, EVP Carol Jean Severyn sold 837 shares of the business’s stock in a transaction dated Friday, June 12th. The shares were sold at an average price of $148.29, for a total transaction of $124,118.73. Following the transaction, the executive vice president directly owned 12,712 shares in the company, valued at $1,885,062.48. The trade was a 6.18% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. 1.14% of the stock is currently owned by company insiders.
Wall Street Analyst Weigh In CFR has been the subject of several analyst reports. TD Cowen raised Cullen/Frost Bankers to a “strong-buy” rating in a research report on Monday, April 13th. Cantor Fitzgerald raised their target price on Cullen/Frost Bankers from $154.00 to $158.00 and gave the stock a “neutral” rating in a research report on Wednesday. Jefferies Financial Group upgraded Cullen/Frost Bankers from an “underperform” rating to a “hold” rating and boosted their target price for the stock from $135.00 to $160.00 in a research note on Monday, July 6th. Citigroup upped their price target on Cullen/Frost Bankers from $131.00 to $145.00 and gave the company a “sell” rating in a report on Tuesday, June 30th. Finally, Raymond James Financial reiterated a “market perform” rating on shares of Cullen/Frost Bankers in a research note on Wednesday, July 1st. Two investment analysts have rated the stock with a Strong Buy rating, two have given a Buy rating, seven have issued a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus price target of $152.42.
Get Our Latest Research Report on CFR
Cullen/Frost Bankers Profile (Free Report)
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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Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Cullen/Frost Bankers (CFR - Free Report) , which belongs to the Zacks Banks - Southwest industry.
This financial holding company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 5.89%.
For the most recent quarter, Cullen/Frost was expected to post earnings of $2.46 per share, but it reported $2.65 per share instead, representing a surprise of 7.72%. For the previous quarter, the consensus estimate was $2.47 per share, while it actually produced $2.57 per share, a surprise of 4.05%.
Price and EPS Surprise
For Cullen/Frost, estimates have been trending higher, thanks in part to this earnings surprise history. And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Cullen/Frost has an Earnings ESP of +1.19% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #3 (Hold), it shows that another beat is possibly around the corner. The company's next earnings report is expected to be released on July 30, 2026.
Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric.
Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
, /PRNewswire/ -- Cullen/Frost Bankers, Inc. (NYSE: CFR) will host a conference call on Thursday, July 30, 2026 to discuss second quarter 2026 earnings.
Earnings Release: The earnings release for Cullen/Frost Bankers, Inc. will be available at approximately 8:00 a.m. Central Time (CT) on the internet at https://investor.frostbank.com/.
Conference Call and Live Webcast: The conference call will begin at 1:00 p.m. CT (2:00 p.m. Eastern) and will be hosted by Phil Green, Chairman and CEO, Dan Geddes, Group Executive Vice President and CFO and A.B. Mendez, Senior Vice President and Director of Investor Relations.
Following the prepared remarks there will be a question and answer session for the analyst community. Media and other interested individuals are invited to listen to the call using the webcast link or telephone number as follows:
Live Webcast
To access the webcast, go to https://investor.frostbank.com/ or directly to https://event.choruscall.com/mediaframe/webcast.html?webcastid=8eyfwPQ5
The webcast will be archived and available for playback after 5:00 p.m. CT on the day of the call, and can be accessed on our investor relations website.
Telephone Number
Domestic: 877-709-8150
It is recommended that those wishing to dial into the conference call do so approximately 5 to 10 minutes prior to the call to ensure a more efficient registration process.
Sebastian Mallaby ze CFR hovoří o nutnosti vládní kontroly nad umělou inteligencí. Goldman Sachs zmiňuje prudký pokles inflačních tlaků. CNBC poukazuje na nové vozy značky Slate, které by měly být „minimalistické“ a velmi levné. A známý ekonom Frederic Mishkin má pár zajímavých komentářů k dalšímu nastavení americké monetární politiky.
Nutnost vládní kontroly nad AI
Sebastian Mallaby ze CFR na CNBC mluvil o nutnosti vládní kontroly tzv. hraničních modelů umělé inteligence, tedy jejich nejpokročilejších a nejvýkonnějších verzí. „Pokud nebudou pod kontrolou, budou nebezpečné.“ Jedním z cílů by pak měla být prevence toho, aby schopnosti modelů nemohly využívat různé „kriminální skupiny“. Podle experta je tak povzbudivé, že „začíná vznikat vládní režim, který bude určovat, kdo může modely využívat a kdo ne.“
Mallaby přirovnal situaci k dozoru nad leteckým provozem nebo schvalováním léků. I v těchto případech je vláda aktivní tak, aby společnost byla chráněna. Podobné by to mělo být u umělé inteligence. Vládní kroky a postup by ale neměly být náhodné, jako tomu podle experta bylo u společnosti Anthropic. „Myslím, že už to chápou,“ dodal s tím, že systém musí být „formální a spravedlivý“.
Mallaby podle CNBC před časem hovořil o tom, že OpenAI může v roce 2027 narazit na nedostatek peněz. Expert se své predikce drží i poté, co firma dostala nový kapitál, protože podle něj jde, na rozdíl od Anthropicu, jen o nafouknutou bublinu. Pozitivně se v rozhovoru vyjadřoval o Googlu a jeho modelu Gemini, který vykazuje znatelný pokrok v oblasti běžných uživatelů umělé inteligence. „Mimochodem každý chytrý telefon, ať už je to iPhone nebo Android, nabízí Gemini, ne model společnosti OpenAI. A to ani nehovořím o otevřených čínských modelech, které jsou dost dobré.“
Mishkin o sazbách a rozvaze Fedu
Známý ekonom Frederic Mishkin, který působil i ve vedení americké centrální banky, na CNBC uvedl, že z ní přichází dobré zprávy. Nový předseda Fedu Kevin Warsh totiž hovoří o nutnosti dosažení inflačního cíle a udržení nezávislosti centrální banky. Podle ekonoma tak bude chránit Fed před Trumpovým tlakem na „snižování sazeb za každé situace“. Miskin pak poukázal na důležité téma, kterým je vztah mezi sazbami a velikostí rozvahy.
Warsh hovořil o tom, že by mělo dojít ke snížení velikosti rozvahy Fedu s tím, že by zároveň mohly klesat sazby. Mishkin ale míní, že pokud mají sazby klesat, nemusí být takový prostor pro menší rozvahu, což ukazují i zkušenosti z minulosti: „V jednu dobu Fed snižoval rozvahu a ztratil kontrolu nad sazbami. Musel tak do systému zase vložit více rezerv.“ Ekonom pak poukázal i na to, že Warsh netíhne k používání tzv. forward guidance, tedy komentářům týkajícím se dalšího vývoje monetární politiky. Jak se na ni dívá Miskin?
Podle ekonoma i jeho vlastní výzkum ukazuje na problematičnost forward guidance tak, jak byla dříve praktikována. Nicméně na druhou stranu je dobré, pokud Fed jasně komentuje svou „reakční funkci“. Tedy to, jak by reagoval na určitý vývoj. Takové indikace totiž mimo jiné mění chování trhů tak, že mohou dělat část práce za Fed. Tedy hýbat s cenami aktiv tak, že je to v souladu s cíli centrální banky. Cílem by tak rozhodně neměla být eliminace všech informací, důležité je najít způsob komunikace omezující volatilitu.
Prudký pokles inflačních očekávání, růst maržových obchodů
Goldman Sachs v následujícím grafu poukazuje na prudký pokles inflačních očekávání. Konkrétně jde o rozdíly mezi výnosy běžných vládních dluhopisů a těch chráněných proti inflaci. Tento rozdíl u pětiletých, desetiletých a dvacetiletých obligací ukazuje, že v prosinci a lednu byla inflační očekávání na lokálním dnu, pak se začala opět zvedat, ale poslední týdny přinesly jejich prudkou korekci:
Zdroj: X
I v souvislosti s inflačními očekáváními můžeme poukázat na to, že zatímco řada expertů hovoří o tom, že ceny ropy by se v případě uvolnění tenzí spojených s konfliktem na Blízkém východě mohly držet zhruba kolem 80 dolarů za barel, analytik Bloomberg Intelligence Senior Mike McGlon přichází s výrazně rozdílným pohledem. Hovoří totiž o cenách u 40 dolarů za barel.
Ve druhém grafu Goldman Sachs poukazuje na vývoj maržového dluhu na americkém trhu. Investoři si podle obrázku v absolutním vyjádření nyní na své pozice půjčují od svých brokerů rekordní objem peněz, který v poslední době prudce vzrostl:
Zdroj: X
Světle modrá křivka v grafu ukazuje objem maržového dluhu relativně ke kapitalizaci akciového trhu. Zde už zdaleka nevidíme takové extrémy, po většinu období po roce 2008 byla tato relativní výše dluhů nad současnou úrovní.
Levná skládací auta
CNBC poukazuje na nové vozy značky Slate, které by měly být extrémně „minimalistické“ a také by se měly prodávat za mimořádně nízkou cenu. Například truck této značky by měl s cenou začínat na 25 tisících dolarech. Vozy tak mají například manuální stahování oken a řidiči poskytují „jen velmi omezené množství informací“. Z trucku by mělo být možné jednoduše vytvořit SUV, jehož cena by se měla pohybovat kolem 30 tisíc dolarů.
All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.
Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
Based in San Antonio, Cullen/Frost Bankers (CFR - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of 22.65%. The financial holding company is paying out a dividend of $1.03 per share at the moment, with a dividend yield of 2.65% compared to the Banks - Southwest industry's yield of 1.65% and the S&P 500's yield of 1.41%.
Looking at dividend growth, the company's current annualized dividend of $4.12 is up 4.3% from last year. Over the last 5 years, Cullen/Frost Bankers has increased its dividend 5 times on a year-over-year basis for an average annual increase of 7.98%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Cullen/Frost's current payout ratio is 39%, meaning it paid out 39% of its trailing 12-month EPS as dividend.
CFR is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2026 is $10.54 per share, with earnings expected to increase 6.14% from the year ago period.
From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. It's important to keep in mind that not all companies provide a quarterly payout.
Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, CFR is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).
Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
Based in San Antonio, Cullen/Frost Bankers (CFR - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of 15.38%. Currently paying a dividend of $1.03 per share, the company has a dividend yield of 2.82%. In comparison, the Banks - Southwest industry's yield is 1.64%, while the S&P 500's yield is 1.44%.
Looking at dividend growth, the company's current annualized dividend of $4.12 is up 4.3% from last year. Over the last 5 years, Cullen/Frost Bankers has increased its dividend 5 times on a year-over-year basis for an average annual increase of 7.98%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Cullen/Frost's current payout ratio is 39%, meaning it paid out 39% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for CFR for this fiscal year. The Zacks Consensus Estimate for 2026 is $10.46 per share, which represents a year-over-year growth rate of 5.34%.
Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. It's important to keep in mind that not all companies provide a quarterly payout.
High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. With that in mind, CFR is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).
Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Cullen/Frost Bankers (CFR - Free Report) , which belongs to the Zacks Banks - Southwest industry, could be a great candidate to consider.
When looking at the last two reports, this financial holding company has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 8.12%, on average, in the last two quarters.
For the most recent quarter, Cullen/Frost was expected to post earnings of $2.47 per share, but it reported $2.57 per share instead, representing a surprise of 4.05%. For the previous quarter, the consensus estimate was $2.38 per share, while it actually produced $2.67 per share, a surprise of 12.18%.
Price and EPS Surprise
Thanks in part to this history, there has been a favorable change in earnings estimates for Cullen/Frost lately. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is a great indicator of an earnings beat, particularly when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Cullen/Frost has an Earnings ESP of +1.91% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #3 (Hold), it shows that another beat is possibly around the corner. The company's next earnings report is expected to be released on April 30, 2026.
Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric.
Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Cullen/Frost Bankers (CFR - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended March 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on April 30. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis financial holding company is expected to post quarterly earnings of $2.45 per share in its upcoming report, which represents a year-over-year change of +6.5%.
Revenues are expected to be $591.06 million, up 5.5% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.54% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Cullen/Frost?For Cullen/Frost, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.75%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that Cullen/Frost will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Cullen/Frost would post earnings of $2.47 per share when it actually produced earnings of $2.57, delivering a surprise of +4.05%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Cullen/Frost appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
Cullen/Frost Bankers (CFR - Free Report) is headquartered in San Antonio, and is in the Finance sector. The stock has seen a price change of 14.42% since the start of the year. The financial holding company is paying out a dividend of $1.00 per share at the moment, with a dividend yield of 2.76% compared to the Banks - Southwest industry's yield of 1.68% and the S&P 500's yield of 1.41%.
Looking at dividend growth, the company's current annualized dividend of $4.00 is up 1.3% from last year. Over the last 5 years, Cullen/Frost Bankers has increased its dividend 5 times on a year-over-year basis for an average annual increase of 7.98%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Cullen/Frost's current payout ratio is 40%, meaning it paid out 40% of its trailing 12-month EPS as dividend.
CFR is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2026 is $10.21 per share, which represents a year-over-year growth rate of 2.82%.
Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. But, not every company offers a quarterly payout.
For instance, it's a rare occurrence when a tech start-up or big growth business offers its shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. With that in mind, CFR is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).
Concurrent Investment Advisors LLC increased its holdings in Cullen/Frost Bankers, Inc. (NYSE:CFR – Free Report) by 863.1% during the fourth quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 21,448 shares of the bank’s stock after purchasing an additional 19,221 shares during the quarter. Concurrent Investment Advisors LLC’s holdings in Cullen/Frost Bankers were worth $2,716,000 as of its most recent filing with the Securities & Exchange Commission.
A number of other large investors also recently added to or reduced their stakes in CFR. HB Wealth Management LLC increased its position in shares of Cullen/Frost Bankers by 10.8% in the fourth quarter. HB Wealth Management LLC now owns 2,393 shares of the bank’s stock valued at $303,000 after acquiring an additional 233 shares during the period. M&T Bank Corp increased its position in shares of Cullen/Frost Bankers by 13.5% in the fourth quarter. M&T Bank Corp now owns 109,154 shares of the bank’s stock valued at $13,822,000 after acquiring an additional 12,990 shares during the period. Universal Beteiligungs und Servicegesellschaft mbH increased its position in shares of Cullen/Frost Bankers by 3.2% in the fourth quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 41,514 shares of the bank’s stock valued at $5,257,000 after acquiring an additional 1,268 shares during the period. TD Waterhouse Canada Inc. purchased a new position in shares of Cullen/Frost Bankers in the fourth quarter valued at about $58,000. Finally, Zurcher Kantonalbank Zurich Cantonalbank increased its position in shares of Cullen/Frost Bankers by 3.2% in the fourth quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 12,823 shares of the bank’s stock valued at $1,624,000 after acquiring an additional 393 shares during the period. Hedge funds and other institutional investors own 86.90% of the company’s stock.
Analyst Upgrades and Downgrades A number of equities analysts have issued reports on CFR shares. Barclays boosted their price objective on shares of Cullen/Frost Bankers from $150.00 to $155.00 and gave the company an “equal weight” rating in a research report on Tuesday, April 7th. DA Davidson boosted their price objective on shares of Cullen/Frost Bankers from $136.00 to $144.00 and gave the company a “neutral” rating in a research report on Friday, January 30th. Weiss Ratings upgraded shares of Cullen/Frost Bankers from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Monday, March 2nd. Loop Capital set a $160.00 price objective on shares of Cullen/Frost Bankers in a research report on Monday, February 2nd. Finally, Cantor Fitzgerald boosted their price objective on shares of Cullen/Frost Bankers from $141.00 to $152.00 and gave the company a “neutral” rating in a research report on Tuesday, March 3rd. One investment analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, six have given a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and an average price target of $142.25.
Check Out Our Latest Research Report on CFR
Cullen/Frost Bankers Price Performance Shares of NYSE CFR opened at $143.53 on Wednesday. Cullen/Frost Bankers, Inc. has a 1 year low of $114.29 and a 1 year high of $148.97. The company has a debt-to-equity ratio of 0.05, a current ratio of 0.67 and a quick ratio of 0.67. The company’s 50-day moving average is $138.99 and its 200 day moving average is $133.43. The stock has a market capitalization of $9.04 billion, a P/E ratio of 14.47, a P/E/G ratio of 3.97 and a beta of 0.61.
Cullen/Frost Bankers (NYSE:CFR – Get Free Report) last announced its quarterly earnings results on Thursday, January 29th. The bank reported $2.56 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.47 by $0.09. Cullen/Frost Bankers had a net margin of 22.21% and a return on equity of 15.49%. The company had revenue of $1.05 billion for the quarter, compared to analysts’ expectations of $578.05 million. During the same quarter in the previous year, the company earned $2.36 earnings per share. On average, sell-side analysts expect that Cullen/Frost Bankers, Inc. will post 10.21 earnings per share for the current year.
Cullen/Frost Bankers Announces Dividend The business also recently declared a quarterly dividend, which was paid on Friday, March 13th. Investors of record on Friday, February 27th were given a dividend of $1.00 per share. The ex-dividend date was Friday, February 27th. This represents a $4.00 annualized dividend and a dividend yield of 2.8%. Cullen/Frost Bankers’s payout ratio is currently 40.32%.
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 shares were sold at an average price of $137.07, for a total transaction 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 ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 1.14% of the stock is owned by corporate insiders.
Cullen/Frost Bankers Profile (Free Report)
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.
Further Reading Five stocks we like better than Cullen/Frost Bankers
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Board increases quarterly common dividend by 3.0 percent to $1.03
, /PRNewswire/ -- Cullen/Frost Bankers, Inc. (NYSE:CFR) today reported first quarter 2026 results. Net income available to common shareholders for the first quarter of 2026 was $169.3 million, compared to $149.3 million for the first quarter of 2025. On a per-share basis, net income available to common shareholders for the first quarter of 2026 was $2.65 per diluted common share, compared to $2.30 per diluted common share reported a year earlier. Returns on average assets and average common equity were 1.32 percent and 15.15 percent, respectively, for the first quarter of 2026, compared to 1.19 percent and 15.54 percent, respectively, for the same period a year earlier.
For the first quarter of 2026, net interest income on a taxable-equivalent basis was $460.8 million, up 5.6 percent compared to the same quarter in 2025. Average loans for the first quarter of 2026 increased $1.2 billion, or 5.9 percent, to $22.0 billion, from the $20.8 billion reported for the first quarter a year earlier, and increased $349.3 million, or 1.6 percent, compared to the fourth quarter of 2025. Average deposits for the first quarter increased $567.9 million, or 1.4 percent, to $42.2 billion, compared to the $41.7 billion reported for last year's first quarter, and decreased $1.1 billion, or 2.6 percent, compared to the fourth quarter of 2025.
"We had a solid start to the year, with average loan growth of just under six percent and continued steady growth in deposits compared to the year-ago period," said Cullen/Frost Chairman and CEO Phil Green.
With the opening of our Arboretum location in the Austin area, our 205th location, we have increased our total branch count by more than 50 percent since we started our Houston region expansion in December of 2018, and are very pleased with our results. Thanks to the hard work of Frost Bankers throughout the state, through the first quarter we have accumulated $2.6 billion in loans and $3.2 billion in deposits at our expansion locations in Houston, Dallas and Austin."
Noted financial data for the first quarter of 2026 follows:
The Common Equity Tier 1, Tier 1 and Total Risk-Based Capital Ratios at the end of the first quarter of 2026 were 14.07 percent, 14.51 percent and 15.89 percent, respectively, and continue to be in excess of well-capitalized levels and exceed Basel III minimum requirements. Net interest income on a taxable-equivalent basis was $460.8 million for the first quarter of 2026, an increase of 5.6 percent, compared to $436.4 million for the first quarter of 2025. Net interest margin was 3.74 percent for the first quarter of 2026 compared to 3.60 percent for the first quarter of 2025 and 3.66 percent for the fourth quarter of 2025. Non-interest income for the first quarter of 2026 totaled $136.3 million, an increase of $12.3 million, or 9.9 percent, from the $124.0 million reported for the first quarter of 2025. Trust and investment management fees increased $5.0 million, or 11.7 percent, compared to the first quarter of 2025. The increase in trust and investment management fees during the first quarter was primarily related to increases in investment management fees (up $4.3 million) and miscellaneous fees (up $1.3 million). Investment management fees are generally based on the market value of assets within customer accounts and are thus impacted by price movements in the equity and bond markets. Service charges on deposit accounts increased $3.5 million, or 12.4 percent, compared to the first quarter of 2025. The increase was primarily related to an increase in commercial service charges (up $2.2 million), reflecting growth in billable treasury management services, lower earnings credit rates on analyzed accounts, and higher fees on non-analyzed accounts, as well as an increase in consumer overdraft charges (up $1.3 million) due to higher volumes associated with account growth. Other non-interest income increased $1.9 million, or 14.9 percent, compared to the first quarter of 2025. The increase during the first quarter was primarily related to increases in sundry and other miscellaneous income (up $2.2 million), life insurance proceeds (up $632,000), and income from customer derivatives and securities trading (up $456,000), partly offset by decreases in gains on the sale of foreclosed and other assets (down $2.1 million). Non-interest expense was $365.7 million for the first quarter of 2026, up $17.6 million, or 5.1 percent, compared to the $348.1 million reported for the first quarter a year earlier. Salaries and wages expense increased $5.3 million, or 3.3 percent, compared to the first quarter of 2025. The increase in salaries and wages was primarily related to increases in salaries due to annual merit and market increases and to an increase in stock compensation. Employee benefits expense increased by $2.5 million, or 5.9 percent, compared to the first quarter of 2025. The increase in employee benefits expense was primarily related to increases in medical/dental benefits expense (up $1.7 million) and payroll taxes (up $792,000). Technology, furniture, and equipment expense increased $1.6 million, or 3.9 percent, compared to the first quarter of 2025. The increase was primarily related to increased cloud services expense (up $1.8 million). Other non-interest expense increased $6.7 million, or 10.4 percent, compared to the first quarter of 2025. The increase included increases in deposit fraud losses related to various payment systems (up $2.4 million), advertising/promotions expense (up $1.9 million), and professional services expense (up $532,000). For the first quarter of 2026, the company reported a credit loss expense of $6.7 million, and reported net charge-offs of $5.7 million. This compares to a credit loss expense of $11.2 million and net charge-offs of $5.8 million for the fourth quarter of 2025 and a credit loss expense of $13.1 million and net charge-offs of $9.7 million for the first quarter of 2025. The allowance for credit losses on loans as a percentage of total loans was 1.28 percent at March 31, 2026, compared to 1.29 percent at December 31, 2025 and 1.32 percent at March 31, 2025. Non-accrual loans were $72.4 million at the end of the first quarter of 2026, compared to $70.5 million at the end of the fourth quarter of 2025 and $83.5 million at the end of the first quarter of 2025. During the first quarter of 2026, we repurchased 507,753 shares at a total cost of $70.0 million. As of the end of the first quarter, we had $230 million remaining under our current $300 million repurchase authorization, which expires in January of 2027. The Cullen/Frost board declared a second-quarter cash dividend of $1.03 per common share, representing a 3.0 percent increase compared to the previous quarterly dividend of $1.00 per share. The dividend on common stock is payable June 15, 2026 to shareholders of record on May 29 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 June 15, 2026 to shareholders of record on May 29 of this year.
Cullen/Frost Bankers, Inc. will host a conference call on Thursday, April 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, May 3, 2026 at 1-877-660-6853 with Conference ID # of 13759870. 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 Bankers, Inc. (NYSE: CFR) is a financial holding company, headquartered in San Antonio, with $52.7 billion in assets at March 31, 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, 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:
The effects of and changes in trade and monetary and fiscal policies and laws, including the interest rate policies of the Federal Reserve Board and the implementation of tariffs and other protectionist trade policies. Inflation, interest rate, securities market, and monetary fluctuations. Local, regional, national, and international economic conditions and the impact they may have on us and our customers and our assessment of that impact. Changes in the financial performance and/or condition of our borrowers. Changes in the mix of loan geographies, sectors and types or the level of non-performing assets and charge-offs. Changes in estimates of future credit loss reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements. Changes in our liquidity position. Impairment of our goodwill or other intangible assets. The timely development and acceptance of new products and services and perceived overall value of these products and services by users. Changes in consumer spending, borrowing, and saving habits. Greater than expected costs or difficulties related to the integration of new products and lines of business. Technological changes. The cost and effects of cyber incidents or other failures, interruptions, or security breaches of our systems or those of our customers or third-party providers. Acquisitions and integration of acquired businesses. Changes in the reliability of our vendors, internal control systems or information systems. Our ability to increase market share and control expenses. Our ability to attract and retain qualified employees. Changes in our organization, compensation, and benefit plans. The soundness of other financial institutions. Volatility and disruption in national and international financial and commodity markets. Changes in the competitive environment in our markets and among banking organizations and other financial service providers. Government intervention in the U.S. financial system. Political or economic instability. Acts of God or of war or terrorism. The potential impact of climate change. The impact of pandemics, epidemics, or any other health-related crisis. The costs and effects of legal and regulatory developments, the resolution of legal proceedings or regulatory or other governmental inquiries, the results of regulatory examinations or reviews and the ability to obtain required regulatory approvals. The effect of changes in laws and regulations (including laws and regulations concerning taxes, banking, securities, and insurance) and their application with which we and our subsidiaries must comply. The effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board and other accounting standard setters. Our success at managing the risks involved in the foregoing items. In addition, military conflict between the U.S. and Iran has contributed to heightened uncertainty and volatility in global markets. Such conditions can result in price volatility in energy and commodity markets, changes in inflation expectations, increased financial market volatility, and potential disruptions to global supply chains and trade flows. The timing, magnitude, and duration of these impacts are uncertain and may evolve rapidly based on geopolitical developments, policy responses, and market conditions. Heightened geopolitical uncertainty may influence Federal Reserve policy decisions and broader financial conditions, including interest‑rate volatility, funding costs, and liquidity conditions. These factors could adversely affect our funding profile; customer credit quality, particularly in sectors sensitive to energy prices, global trade, or economic cycles; and the market value of certain financial instruments. Prolonged volatility could also negatively impact economic growth, increase borrower stress, and contribute to higher credit losses, any of which could have a material adverse effect on our business, financial condition, and results of operations. We will continue to monitor these developments and adjust our risk management and capital planning strategies as appropriate.
Furthermore, financial markets, international relations, and global supply chains continue to be significantly impacted by evolving U.S. trade policies and practices. The scope, duration, and ultimate impact of tariffs on us, our customers, financial markets, and the U.S. and global economies remain uncertain, particularly following the U.S. Supreme Court's February 20, 2026 ruling that the International Emergency Economic Powers Act ("IEEPA") does not authorize presidential tariff authority, which invalidated prior IEEPA‑based tariffs. This ruling has introduced uncertainty regarding the timing and extent of potential tariff refunds, as well as the likelihood of new or replacement tariffs imposed under alternative statutory authorities under U.S. trade law. These developments may affect customer cash flows, credit conditions, supply chain decisions, and overall market activity and volatility, thereby increasing our exposure to operational, credit, and market risks. If such uncertainty negatively affects borrower financial condition or market stability, it could have a material adverse effect on our business, financial condition, and results of operations.
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
1st Qtr
4th Qtr
3rd Qtr
2nd Qtr
1st Qtr
CONDENSED INCOME STATEMENTS
Net interest income
$ 438,522
$ 448,707
$ 441,618
$ 429,604
$ 416,220
Net interest income (1)
460,792
471,218
463,667
450,558
436,404
Credit loss expense
6,745
11,224
6,779
13,129
13,070
Non-interest income:
Trust and investment management fees
47,957
45,651
44,846
43,669
42,931
Service charges on deposit accounts
32,157
32,360
31,440
29,151
28,621
Insurance commissions and fees
22,075
15,180
15,424
13,879
21,019
Interchange and card transaction fees
6,532
6,290
5,547
5,619
5,402
Other charges, commissions, and fees
13,268
15,228
14,730
13,967
13,586
Net gain (loss) on securities transactions
—
(836)
—
—
(14)
Other
14,326
18,291
13,660
10,988
12,466
Total non-interest income
136,315
132,164
125,647
117,273
124,011
Non-interest expense:
Salaries and wages
166,190
182,486
169,155
162,149
160,857
Employee benefits
44,656
36,653
34,465
32,826
42,157
Net occupancy
34,753
34,341
34,682
34,640
33,277
Technology, furniture, and equipment
41,674
41,575
43,479
40,572
40,118
Deposit insurance
7,203
(1,350)
6,328
6,590
7,184
Other
71,210
77,963
64,369
70,351
64,473
Total non-interest expense
365,686
371,668
352,478
347,128
348,066
Income before income taxes
202,406
197,979
208,008
186,620
179,095
Income taxes
31,419
31,727
33,628
29,617
28,173
Net income
170,987
166,252
174,380
157,003
150,922
Preferred stock dividends
1,669
1,669
1,668
1,669
1,669
Net income available to common shareholders
$ 169,318
$ 164,583
$ 172,712
$ 155,334
$ 149,253
PER COMMON SHARE DATA
Earnings per common share - basic
$ 2.65
$ 2.56
$ 2.67
$ 2.39
$ 2.30
Earnings per common share - diluted
2.65
2.56
2.67
2.39
2.30
Cash dividends per common share
1.00
1.00
1.00
1.00
0.95
Book value per common share at end of quarter
69.83
69.96
67.64
63.04
61.74
OUTSTANDING COMMON SHARES
Period-end common shares
62,797
63,287
63,801
64,319
64,283
Weighted-average common shares - basic
63,101
63,588
64,080
64,300
64,255
Dilutive effect of stock compensation
—
16
41
52
74
Weighted-average common shares - diluted
63,101
63,604
64,121
64,352
64,329
SELECTED ANNUALIZED RATIOS
Return on average assets
1.32 %
1.22 %
1.32 %
1.22 %
1.19 %
Return on average common equity
15.15
14.80
16.72
15.64
15.54
Net interest income to average earning assets
3.74
3.66
3.69
3.67
3.60
(1) Taxable-equivalent basis assuming a 21% tax rate.
Cullen/Frost Bankers, Inc.
CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)
2026
2025
1st Qtr
4th Qtr
3rd Qtr
2nd Qtr
1st Qtr
BALANCE SHEET SUMMARY
($ in millions)
Average Balance:
Loans
$ 22,011
$ 21,661
$ 21,452
$ 21,063
$ 20,788
Earning assets
48,628
50,033
48,492
47,664
47,424
Total assets
52,122
53,507
51,911
51,191
50,925
Non-interest-bearing demand deposits
13,944
14,268
13,839
13,788
13,798
Interest-bearing deposits
28,282
29,072
28,232
27,972
27,860
Total deposits
42,226
43,340
42,071
41,760
41,658
Shareholders' equity
4,677
4,558
4,243
4,129
4,041
Period-End Balance:
Loans
$ 22,432
$ 21,892
$ 21,446
$ 21,254
$ 20,904
Earning assets
49,172
49,524
49,147
47,756
48,409
Total assets
52,725
53,041
52,533
51,409
52,005
Total deposits
42,836
42,918
42,517
41,684
42,391
Shareholders' equity
4,531
4,573
4,461
4,200
4,114
Adjusted shareholders' equity (1)
5,454
5,416
5,385
5,341
5,243
ASSET QUALITY
($ in thousands)
Allowance for credit losses on loans:
$ 286,215
$ 281,495
$ 280,221
$ 277,803
$ 275,488
As a percentage of period-end loans
1.28 %
1.29 %
1.31 %
1.31 %
1.32 %
Net charge-offs:
$ 5,741
$ 5,843
$ 6,589
$ 11,151
$ 9,691
Annualized as a percentage of average loans
0.11 %
0.11 %
0.12 %
0.21 %
0.19 %
Non-accrual loans:
$ 72,350
$ 70,482
$ 44,778
$ 62,393
$ 83,534
As a percentage of total loans
0.32 %
0.32 %
0.21 %
0.29 %
0.40 %
As a percentage of total assets
0.14
0.13
0.09
0.12
0.16
CONSOLIDATED CAPITAL RATIOS
Common Equity Tier 1 Risk-Based Capital Ratio
14.07 %
14.06 %
14.14 %
13.98 %
13.84 %
Tier 1 Risk-Based Capital Ratio
14.51
14.50
14.59
14.43
14.30
Total Risk-Based Capital Ratio
15.89
15.95
16.04
15.88
15.76
Leverage Ratio
9.13
8.80
9.00
8.98
8.84
Equity to Assets Ratio (period-end)
8.59
8.62
8.49
8.17
7.91
Equity to Assets Ratio (average)
8.97
8.52
8.17
8.07
7.94
(1) Shareholders' equity excluding accumulated other comprehensive income (loss).
Cullen/Frost Bankers, Inc.
TAXABLE-EQUIVALENT YIELD/COST AND AVERAGE BALANCES (UNAUDITED)
Cullen/Frost Bankers (CFR - Free Report) came out with quarterly earnings of $2.65 per share, beating the Zacks Consensus Estimate of $2.46 per share. This compares to earnings of $2.3 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +7.78%. A quarter ago, it was expected that this financial holding company would post earnings of $2.47 per share when it actually produced earnings of $2.57, delivering a surprise of +4.05%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Cullen/Frost, which belongs to the Zacks Banks - Southwest industry, posted revenues of $597.11 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 0.88%. This compares to year-ago revenues of $560.41 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Cullen/Frost shares have added about 12.8% since the beginning of the year versus the S&P 500's gain of 4.2%.
What's Next for Cullen/Frost?While Cullen/Frost has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Cullen/Frost was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.49 on $596.92 million in revenues for the coming quarter and $10.21 on $2.41 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Southwest is currently in the top 14% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the broader Zacks Finance sector, Ridgepost Capital, Inc. (RPC - Free Report) , is yet to report results for the quarter ended March 2026. The results are expected to be released on May 7.
This company is expected to post quarterly earnings of $0.21 per share in its upcoming report, which represents a year-over-year change of +5%. The consensus EPS estimate for the quarter has been revised 3.6% lower over the last 30 days to the current level.
Ridgepost Capital, Inc.'s revenues are expected to be $78.42 million, up 15.9% from the year-ago quarter.
For the quarter ended March 2026, Cullen/Frost Bankers (CFR - Free Report) reported revenue of $597.11 million, up 6.6% over the same period last year. EPS came in at $2.65, compared to $2.30 in the year-ago quarter.
The reported revenue represents a surprise of +0.88% over the Zacks Consensus Estimate of $591.93 million. With the consensus EPS estimate being $2.46, the EPS surprise was +7.78%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Cullen/Frost performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Net charge-offs annualized as a percentage of average loans: 0.1% versus 0.2% estimated by five analysts on average.Total earning assets and average rate earned - Average balance: $48.63 billion versus the five-analyst average estimate of $50.15 billion.Net Interest Margin (FTE): 3.7% compared to the 3.7% average estimate based on five analysts.Book value per common share at end of quarter: $69.83 versus the four-analyst average estimate of $78.91.Non-accrual loans: $72.35 million versus the two-analyst average estimate of $71.3 million.Total Non-Interest Income: $136.32 million versus the five-analyst average estimate of $131.15 million.Net Interest Income (FTE): $460.79 million versus $460.77 million estimated by five analysts on average.Trust and investment management fees: $47.96 million versus the four-analyst average estimate of $45.06 million.Other charges, commissions and fees: $13.27 million compared to the $15.25 million average estimate based on four analysts.Service charges on deposit accounts: $32.16 million versus $32.07 million estimated by four analysts on average.Insurance commissions and fees: $22.08 million versus $17.82 million estimated by three analysts on average.Net Interest Income: $438.52 million compared to the $438.71 million average estimate based on three analysts.View all Key Company Metrics for Cullen/Frost here>>>
Shares of Cullen/Frost have returned +3% over the past month versus the Zacks S&P 500 composite's +12.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
, /PRNewswire/ -- Cullen/Frost Bankers, Inc. (NYSE: CFR) will host a conference call on Thursday, April 30, 2026 to discuss first quarter 2026 earnings.
Earnings Release: The earnings release for Cullen/Frost Bankers, Inc. is available on the internet at https://investor.frostbank.com/.
Conference Call and Live Webcast: The conference call will begin at 3:30 p.m. CT (4:30 p.m. Eastern) and will be hosted by Phil Green, Chairman and CEO, Dan Geddes, Group Executive Vice President and CFO and A.B. Mendez, Senior Vice President and Director of Investor Relations.
Following the prepared remarks there will be a question and answer session for the analyst community. Media and other interested individuals are invited to listen to the call using the webcast link or telephone number as follows:
Live Webcast
To access the webcast, go to https://investor.frostbank.com/ or directly to Registration | Cullen/Frost Bankers, Inc. First Quarter 2026 Earnings Conference Call
The webcast will be archived and available for playback, and can be accessed on our investor relations website.
Telephone Number
Domestic: 877-709-8150
It is recommended that those wishing to dial into the conference call do so approximately 5 to 10 minutes prior to the call to ensure a more efficient registration process.
Key Takeaways CFR, SAH, STBA and POOL announced fresh dividend hikes amid rising market volatility and inflation concerns.Cullen/Frost Bankers will pay $1.03 per share, marking six dividend hikes in five years.Pool Corporation declared a $1.30 dividend, supported by consistent payout growth and a 46% payout ratio. Volatility appears to have returned to Wall Street on renewed geopolitical tensions and soaring inflation that has been denting consumer sentiment. Also, the Federal Reserve kept interest rates unchanged in its April policy meeting and warned of inflation spiking further on rising global oil prices.
Given the uncertainty, cautious investors looking for steady income and ways to protect their capital may consider holding or investing in dividend-paying stocks.
Such stocks provide steady earnings through regular dividend payouts and can help mitigate the effects of market volatility. Four such stocks are: Cullen/Frost Bankers, Inc. (CFR - Free Report) , Sonic Automotive, Inc. (SAH - Free Report) , S&T Bancorp, Inc. (STBA - Free Report) and Pool Corporation (POOL - Free Report) .
Concerns Grow Over Economy’s HealthThe Federal Reserve left interest rates unchanged in its present range of 3.5-3.75% at the end of its two-day FOMC meeting on Wednesday. The move was highly anticipated. However, the Fed warned that overall inflation could spike further on a steep rise in global oil prices.
Oil prices have surged more than 30% since the beginning of the conflict with Iran on Feb.28. The Federal Reserve has not cut interest rates this year as inflation remains a concern for both the central bank and investors.
Inflation grew at a sharp pace in March, partly spiked by higher gasoline prices, owing to the closure of the Strait of Hormuz following the U.S.-Iran war. The Commerce Department said earlier this month that the consumer price index (CPI) rose 0.9% in March after rising 2.4% in February, pushing the annual inflation rate to 3.3% — its highest level since May 2024.
The Federal Reserve is unlikely to cut interest rates anytime soon, with concerns growing that the central bank may be compelled to hike rates if inflation remains elevated.
4 Stocks That Recently Announced Dividend HikesCullen/Frost BankersCullen/Frost Bankers, Inc. is a financial holding company and a bank holding company, which, through its subsidiaries, provides a broad array of products and services throughout numerous Texas markets. CFR currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
On April 30, Cullen/Frost Bankers announced that its shareholders would receive a dividend of $1.03 a share on June 15. CFR has a dividend yield of 2.80%. Over the past five years, Cullen/Frost Bankers has increased its dividend six times, and its payout ratio presently sits at 40% of earnings. Check Cullen/Frost Bankers’ dividend history here.
Sonic AutomotiveSonic Automotive, Inc. is one of the leading automotive retailers in the United States. Apart from selling new and used cars and light trucks, SAH offers warranties, service contracts, vehicle financing and insurance. Sonic Automotive has a Zacks Rank #3 at present.
On April 30, Sonic Automotive declared that its shareholders would receive a dividend of $0.41 a share on July 15. SAH has a dividend yield of 2.07%. Over the past five years, Sonic Automotive has increased its dividend eight times, and its payout ratio presently sits at 23% of earnings. Check Sonic Automotive’s dividend history here.
S&T BancorpS&T Bancorp, Inc. is a bank holding company engaged in the general banking business. STBA is a full-service bank with its main office in Indiana, PA, providing service to its customers through a network of 34 offices located in Armstrong, Allegheny, Indiana, Jefferson, Clearfield and Westmoreland counties. Currently, S&T Bancorp has a Zacks Rank #3.
On April 29, S&T Bancorp announced that its shareholders would receive a dividend of $0.37 a share on May 15. STBA has a dividend yield of 3.26%. Over the past five years, S&T Bancorp has increased its dividend eight times, and its payout ratio presently sits at 40% of earnings. Check S&T Bancorp’s dividend history here.
Pool Corporation Pool Corporation is the world's largest wholesale distributor of swimming pool supplies, equipment and related products. In addition, the company is a leading regional wholesale distributor of irrigation and landscape products. Pool currently has a Zacks Rank #3.
On April 29, Pool Corporation declared that its shareholders would receive a dividend of $1.30 a share on May 28. POOL has a dividend yield of 2.39%. Over the past five years, Pool Corporation has increased its dividend six times, and its payout ratio presently sits at 46% of earnings. Check Pool Corporation’s dividend history here.
Cullen/Frost Bankers, Inc. (CFR - Free Report) reported first-quarter 2026 earnings per share of $2.65, beating the Zacks Consensus Estimate of $2.46. The bottom line also rose from $2.30 in the prior-year quarter.
Results benefited from higher net interest income (NII) and non-interest income, supported by growth in loan balances. However, elevated non-interest expenses remained a headwind.
Net income available to its common shareholders was $169.3 million, up 13.4% from $149.3 million in the first quarter of 2025.
CFR’s Revenues & Expenses IncreaseTotal revenues were $597.1 million, topping the Zacks Consensus Estimate by 0.9%. The metric also improved from the year-ago revenues of $560.4 million.
NII on a taxable-equivalent basis rose 5.6% year over year to $460.8 million. The net interest margin (NIM) expanded 14 basis points year over year to 3.74%. Our estimates for NII and NIM were $459.3 million and 3.7%, respectively.
Non-interest income increased 9.9% year over year to $136.3 million. The rise was driven by higher trust and investment management fees, service charges on deposit accounts, and other non-interest income. Our estimate for non-interest income was $126.9 million.
Non-interest expenses totaled $365.7 million, up 5.1% year over year. The increase was largely attributable to higher salaries and wages, employee benefits, technology, furniture and equipment expenses, and other non-interest expenses. Our estimate for non-interest expenses was $366.6 million.
CFR’s Loans Rise, Deposit Balance DeclinesTotal loans for the first quarter of 2026 were $22.4 billion, reflecting a 2.5% increase from the prior quarter. Total deposits were $42.8 billion, down marginally on a sequential basis. Our estimates for total loans and total deposits were $22 billion and $44.4 billion, respectively.
Cullen/Frost’s Credit Quality ImprovesFor the first quarter of 2026, the company recorded credit loss expenses of $6.7 million compared with $13.1 million in the prior-year quarter.
Net charge-offs were $5.7 million, down from $9.7 million a year ago.
The allowance for credit losses on loans, as a percentage of total loans, was 1.28% as of March 31, 2026, compared with 1.32% at the end of the prior-year quarter. Non-accrual loans were $72.4 million, lower than $83.5 million at the end of the first quarter of 2025.
CFR’s Capital Ratios & Profitability RatiosAs of March 31, 2026, the common equity Tier 1 risk-based capital ratio was 14.07%, up from 13.84% at the end of the year-ago quarter. The Tier 1 risk-based capital ratio increased to 14.51% from 14.30%, while the total risk-based capital ratio rose to 15.89% from 15.76%.
The leverage ratio improved to 9.13% from 8.84% a year ago.
Return on average assets was 1.32% compared with 1.19% in the prior-year quarter, while return on average common equity was 15.15% versus 15.54% a year earlier.
CFR Dividend & Share Repurchase UpdateThe company declared a second-quarter cash dividend of $1.03 per common share, payable June 15, 2026, to shareholders of record as of May 29, 2026. This represented a 3% increase from the previous quarterly dividend of $1 per share.
In the first quarter, Cullen/Frost repurchased 507,753 shares for $70 million. As of March 31, 2026, the company had $230 million remaining under its current $300-million repurchase authorization, which expires in January 2027.
Our Viewpoint on Cullen/FrostCFR continues to benefit from steady growth in NII, improving margins and solid loan growth. The company’s ongoing organic expansion across Texas markets remains encouraging. However, elevated expense levels could weigh on near-term profitability.
Cullen/Frost Bankers, Inc. Price, Consensus and EPS Surprise
Currently, CFR carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other BanksPopular, Inc. (BPOP - Free Report) reported first-quarter 2026 earnings per share of $3.78, which surpassed the Zacks Consensus Estimate of $3.30. The bottom line compared favorably with $2.56 in the year-ago quarter.
BPOP’s results benefited primarily from a rise in NII, fee income and deposit balances. A decline in operating expenses was also encouraging in the quarter. However, lower loan balances and higher provisions were headwinds.
Hancock Whitney Corp.’s (HWC - Free Report) first-quarter 2026 adjusted earnings per share of $1.52 beat the Zacks Consensus Estimate of $1.48. Further, the bottom line rose 10.1% from the prior-year quarter.
HWC’s results were supported by higher NII and modest loan growth. However, the quarter was significantly impacted by a securities portfolio restructuring loss. Deposits also declined modestly. Additionally, higher expenses and increased provisions acted as headwinds.
On May 01, 2026, Cullen/Frost Bankers Inc CFR shares fell 3.1% to a current price of $140.36. The stock has experienced a 52-week high of $148.97 and a low of $116.47, reflecting a year marked by volatility and substantial growth over the past year.
GF Value™ verdict indicates that the stock is currently 4.9% overvalued, with a fair value estimate of $133.79.GF Score™ stands at 81/100, suggesting a strong overall performance compared to peer companies.Most notable signal is the momentum rank of 10/10, indicating strong recent price performance. Is CFR Overvalued or Undervalued? Currently, Cullen/Frost Bankers Inc CFR is trading at a price of $140.36, which is above the GF Value™ estimate of $133.79. This implies that the stock is overvalued by approximately 4.9%. The GF Valuation label classifies the stock as fairly valued, suggesting that while the current market price is above intrinsic value, it does not signal an excessive overvaluation risk at this moment. Investors should consider this margin of safety when evaluating their positions in CFR.
GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. Given the current overvaluation, potential risks include market corrections or changes in broader economic conditions that could pressure the stock price downward.
How Does CFR's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 13.7x 14.2x Forward P/E 13.7x N/A The current P/E (TTM) of 13.7x is 4% below its 5-year median P/E of 14.2x. This indicates that the stock is trading below its historical valuation levels, which somewhat contradicts the GF Value™ verdict of being overvalued. This analysis suggests that while the current price may seem high relative to GF Value™, the historical perspective on P/E suggests a less severe overvaluation when considering past performance metrics.
What Does CFR's GF Score™ Tell Us? Metric Rating GF Score™ 81 Financial Strength 5/10 Profitability 6/10 Growth 6/10 Valuation 7/10 Momentum 10/10 The GF Score™ of 81/100 highlights a strong overall performance for Cullen/Frost Bankers Inc. The strongest area is the momentum rank of 10/10, which reflects the stock's strong recent price performance. However, the financial strength score of 5/10 suggests some caution, indicating that while the stock has positive growth and valuation metrics, its financial stability may not be as robust compared to peers.
What Are Insiders Doing with CFR Stock? In the past three months, there have been no insider transactions reported for Cullen/Frost Bankers Inc. This lack of insider activity may suggest that current executives do not find the stock price attractive for buying or selling, which could indicate a neutral sentiment among insiders regarding the company's near-term prospects. This absence of insider trading can be interpreted as a lack of strong conviction on the part of leadership about the stock's future performance.
What This Means for Investors Based on the current analysis, Cullen/Frost Bankers Inc CFR appears to be overvalued according to GF Value™, with a price of $140.36 exceeding the fair value estimate of $133.79. Investors may need to exercise caution and consider the broader market conditions and potential volatility when making decisions regarding this stock.
For the complete analysis, visit the Cullen/Frost Bankers Inc CFR stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is CFR's GF Score™?
CFR's GF Score™ is 81/100, indicating a strong performance overall compared to other stocks in its sector.
Is CFR overvalued or undervalued?
According to GF Value™, CFR is currently overvalued at $140.36 compared to its fair value estimate of $133.79.
What is CFR's P/E ratio?
CFR's P/E (TTM) is 13.7x, which is 4% below its 5-year median P/E of 14.2x, suggesting that the stock is trading below its historical valuation levels.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Cullen/Frost Bankers maintains a 'hold' rating due to its premium valuation despite strong fundamentals and asset quality. Loan and securities growth, along with strategic balance sheet shifts, have driven net interest margin expansion to 3.74% and increased profitability. CFR trades at 14x earnings and over double book value, making it expensive relative to peers despite robust 15.15% ROE and 1.32% ROA.
Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
Headquartered in San Antonio, Cullen/Frost Bankers (CFR - Free Report) is a Finance stock that has seen a price change of 9.65% so far this year. Currently paying a dividend of $1.00 per share, the company has a dividend yield of 2.88%. In comparison, the Banks - Southwest industry's yield is 1.67%, while the S&P 500's yield is 1.41%.
Looking at dividend growth, the company's current annualized dividend of $4.00 is up 1.3% from last year. Over the last 5 years, Cullen/Frost Bankers has increased its dividend 5 times on a year-over-year basis for an average annual increase of 7.98%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Cullen/Frost's current payout ratio is 39%, meaning it paid out 39% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, CFR expects solid earnings growth. The Zacks Consensus Estimate for 2026 is $10.41 per share, which represents a year-over-year growth rate of 4.83%.
From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. However, not all companies offer a quarterly payout.
For instance, it's a rare occurrence when a tech start-up or big growth business offers its shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. That said, they can take comfort from the fact that CFR is not only an attractive dividend play, but is also a compelling investment opportunity with a Zacks Rank of #2 (Buy).
Key Takeaways CFR maintains disciplined capital returns via dividend hikes and share buybacks to reward shareholders.CFR raised its quarterly dividend 3% to $1.03, with 7.37% 5-year growth and 39% payout ratio.CFR's dividend yield stands at 2.88%, supported by strong liquidity and buyback capacity. Cullen/Frost Bankers, Inc. (CFR - Free Report) maintains a disciplined capital distribution approach, aiming to return value to shareholders through dividends and share repurchases.
In April 2026, the company announced a 3% increase in its quarterly dividend to $1.03 per share. Over the past five years, CFR has delivered a five-year annualized dividend growth rate of 7.37% and currently has a payout ratio of 39%.
Based on Friday’s closing price of $138.85, its annualized dividend yield stands at 2.88%, higher than the industry average of 2.36%. Rather than pursuing aggressive dividend hikes, the company has prioritized a steady and sustainable payout policy, which strengthens its long-term financial position and supports investor confidence.
Dividend Yield
Image Source: Zacks Investment Research
Apart from dividends, Cullen/Frost has been actively executing share repurchases. On Jan. 28, 2026, the company’s board of directors authorized a $300 million stock repurchase program, allowing repurchases over a one-year period through Jan. 27, 2027. As of March 31, 2026, nearly $230 million remained available under the current authorization.
These capital return initiatives are supported by the company’s solid liquidity position and manageable leverage profile. As of March 31, 2026, Cullen/Frost’s liquidity totaled $7.2 billion. As of the same date, short-term debt was $4.1 billion, while long-term debt was $223 million. Further, the company’s debt/equity ratio compares favorably with that of the broader industry.
CFR’s consistent dividend growth, active share repurchases and disciplined payout strategy reflect strong capital management and financial stability. Backed by solid liquidity and earnings strength, the company appears well-positioned to sustain capital distribution activities and support long-term shareholder value.
How Is CFR Placed in Capital Returns Compared With Peers?Cullen/Frost’s closest peers in the regional banking space include BOK Financial (BOKF - Free Report) and First Horizon (FHN - Free Report) .
BOK Financial has maintained a steady capital distribution strategy. In February 2026, the company raised its dividend by 10.5% to 63 cents per share, continuing its consistent pattern of annual dividend increases supported by stable earnings. BOK Financial also has an active buyback program, with a new authorization of up to 5 million shares approved in July 2025. As of March 31, 2026, about 2.9 million shares remained available for repurchase. However, its capital position is partly offset by a relatively weaker liquidity profile, with $4.6 billion in total debt versus $1.1 billion in cash and equivalents, indicating a limited cushion in a stressed environment.
On the other hand, First Horizon continues to demonstrate a balanced capital return profile supported by a decent liquidity position. As of March 31, 2026, the company held $2.5 billion in cash and interest-bearing deposits, while short-term borrowings stood at $1.9 billion and term borrowings at $1.3 billion. In January 2026, First Horizon increased its quarterly dividend by 13.3% to 17 cents per share, reflecting steady payout growth. It also maintains an active buyback program, with the board authorizing a $1.2 billion repurchase plan in October 2025. As of March 31, 2026, $765 million remained available under this authorization.
CFR’s Price Performance and Zacks RankOver the past three months, shares of CFR have gained 11.7%, outperforming the industry’s 9.9% growth.
Price Performance
Image Source: Zacks Investment Research
Currently, the company carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Sebastian Mallaby, senior fellow for international economics at the Council on Foreign Relations and author of The Infinity Machine, joins Squawk on the Street to discuss where Google is positioned in the AI race, the global chip shortage, and more.
All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.
Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
Headquartered in San Antonio, Cullen/Frost Bankers (CFR - Free Report) is a Finance stock that has seen a price change of 10.19% so far this year. The financial holding company is currently shelling out a dividend of $1.00 per share, with a dividend yield of 2.87%. This compares to the Banks - Southwest industry's yield of 1.67% and the S&P 500's yield of 1.42%.
Looking at dividend growth, the company's current annualized dividend of $4.00 is up 1.3% from last year. Over the last 5 years, Cullen/Frost Bankers has increased its dividend 5 times on a year-over-year basis for an average annual increase of 7.98%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Cullen/Frost's current payout ratio is 39%, meaning it paid out 39% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for CFR for this fiscal year. The Zacks Consensus Estimate for 2026 is $10.46 per share, which represents a year-over-year growth rate of 5.34%.
Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. But, not every company offers a quarterly payout.
High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. That said, they can take comfort from the fact that CFR is not only an attractive dividend play, but also represents a compelling investment opportunity with a Zacks Rank of #2 (Buy).
Key Takeaways Cullen/Frost posted 12.8% stock gains in six months, beating the industry and topping First Horizon.CFR expects 3-5% NII growth in 2026, supported by loan growth and higher earning assets.Cullen/Frost plans 12-15 new branches in 2026 to expand across fast-growing Texas markets. Shares of Cullen/Frost Bankers, Inc. (CFR - Free Report) have gained 12.8% in the past six months, outperforming the industry’s growth of 1.7%. During the same period, the S&P 500 Index has rallied 9.6%.
Compared with its peers, BOK Financial Corporation (BOKF - Free Report) and First Horizon Corporation (FHN - Free Report) , CFR stock underperformed BOK Financial but outpaced First Horizon. Shares of BOKF and FHN have gained 17.6% and 9.2%, respectively, during the past six months.
Price Performance
Image Source: Zacks Investment Research
Does the CFR stock have more upside left despite its recent price rally? Let us find out by taking a closer look at its fundamentals and growth prospects.
Factors Likely to Drive CFR StockDiversified Revenue Base Supports Growth: The company has been generating steady revenue growth through a balanced mix of interest and fee-based businesses. Its total revenues recorded a compound annual growth rate (CAGR) of 9.9% during 2020-2025, reflecting solid business momentum across operating segments. Net interest income (NII) remained the primary growth driver, registering a 12.2% CAGR during the same period, supported by healthy loan growth and higher earning assets. It continued to dominate revenues, accounting for nearly 75.1% in the first quarter of 2026, while both revenues and NII improved year over year. Though the Federal Reserve kept rates unchanged at the April 2026 Federal Open Market Committee meeting amid inflation and geopolitical uncertainty, expectations of a potential rate cut later this year are likely to support NII growth. Management expects NII to rise 3–5% year over year in 2026.
Non-interest income continues to provide additional revenue stability. The metric expanded at a CAGR of 1.4% during 2020-2025, with growth trends remaining favorable in the first quarter of 2026. Management projects non-interest income to increase 4-5% in 2026, driven by continued strength in trust and investment management fees, insurance commissions and deposit service charges. A diversified revenue structure is expected to continue supporting the company’s long-term profitability and growth.
The Zacks Consensus Estimate for CFR’s 2026 and 2027 revenues is pegged at $2.4 billion and $2.5 billion, respectively, which indicate year-over-year growth rates of 3.9% and 4.6%.
Revenue Estimates
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Broader Texas Presence to Drive Organic Growth: Cullen/Frost has been steadily expanding its branch network across Texas to deepen customer relationships and capture growth opportunities in some of the state’s fastest-growing markets. As part of this strategy, the company strengthened its presence in Houston through a 25-branch expansion and simultaneously launched a 28-branch buildout in Dallas in 2021. The expansion momentum continued in late 2025 with the opening of three new financial centers, including two in Austin and one in Dallas. Further, management remains focused on increasing its footprint in Austin and plans to significantly expand the region’s financial center network by 2026.
The company’s expansion efforts have contributed to steady balance-sheet growth over the years. Supported by a broader branch footprint, deposits witnessed a CAGR of 4.2% during 2020-2025, while loans, net of unearned discounts, recorded a CAGR of 4.6%. The growth trends remained favorable in the first quarter of 2026 as both loans and deposits increased. With plans to open an additional 12-15 branches in 2026, along with a solid loan pipeline and an improving lending environment, the company remains well-positioned to drive long-term organic growth across the attractive Texas market.
Consistent Capital Distribution Activities: CFR continues to maintain a disciplined capital distribution strategy. In April 2026, the company increased its quarterly dividend by 3% to $1.03 per share, reflecting its commitment to consistent shareholder returns. The company has increased its dividend six times over the past five years, with a payout ratio of 39% and a current dividend yield of 2.87%.
Dividend Yield
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Likewise, BOK Financial increased its quarterly dividend by 10.6% to 63 cents per share in October 2025, whereas First Horizon announced a 13.3% increase in its quarterly dividend to 17 cents per share in January 2026.
In addition to dividends, the company remains active on the share repurchase front. In January 2026, the board authorized a $300 million stock repurchase program, effective through Jan. 27, 2027. As of March 31, 2026, nearly $230 million remained available under the program. Given its solid earnings strength and favorable debt-to-equity ratio relative to the industry, CFR’s capital distribution activities appear sustainable over the long term.
Near-Term Hurdles for CFRElevated Expense Base: Cullen/Frost’s expense base has remained elevated over the past few years. Its non-interest expenses witnessed a CAGR of 10.9% during 2020-2025, and the trend continued in the first quarter of 2026. The rise was largely driven by higher salaries and employee benefits, along with increased spending on technology, furniture and equipment, and other operating expenses.
Expense Trend
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Expense levels are expected to stay high as the company continues investing in technology initiatives and expanding its financial-center footprint. Further, management projects non-interest expense growth of 5-6% for full-year 2026, limiting near-term operating leverage.
Concentrated Commercial Loan Portfolio: Cullen/Frost’s loan portfolio remains heavily concentrated in commercial lending, including commercial and industrial as well as commercial real estate loans. As of March 31, 2026, commercial loans accounted for nearly 75.3% of the total loan portfolio. Given the uncertain macroeconomic environment, weakness in commercial lending activity or any economic downturn could pressure asset quality and hurt the company’s financial performance.
Analyzing CFR’s Earnings Estimates & ValuationThe Zacks Consensus Estimate for CFR’s 2026 and 2027 earnings indicates a 4.8% and 3.8% rise, respectively. Over the past month, the earnings estimates for 2026 and 2027 have been revised upward.
Estimates Revision Trend
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In terms of valuation, CFR stock appears expensive relative to the industry. The company is currently trading at a 12-month trailing price-to-earnings (P/E) of 13.2X, which is higher than the industry’s 12.2X.
Price-to-Earnings F12 M
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Notably, BOK Financial holds a forward 12-month P/E ratio of 12.6, while First Horizon’s P/E ratio stands at 10.9.
How to Approach CFR Stock Now?While elevated expenses, concentrated commercial loan exposure and a premium valuation remain near-term concerns, these risks appear manageable given Cullen/Frost’s strong balance sheet and stable earnings profile. The company’s diversified revenue base and favorable earnings estimate revisions further support its financial strength despite an uncertain macroeconomic backdrop.
Further, ongoing branch expansion across Texas and disciplined capital distribution activities support the company’s long-term growth. Management’s focus on strengthening customer relationships and enhancing shareholder returns adds to its growth visibility.
Overall, CFR appears to be a compelling option for investors seeking exposure to a fundamentally strong regional bank with stable profitability, steady organic growth prospects and shareholder-friendly policies.
CFR currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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