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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.

Posted by Defense World Staff on Jul 19th, 2026

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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, /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.

SOURCE Cullen/Frost Bankers, Inc.

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).

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.

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).

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 investor relations website: https://investor.frostbank.com/ 

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)

2026

2025

1st Qtr

4th Qtr

3rd Qtr

2nd Qtr

1st Qtr

TAXABLE-EQUIVALENT YIELD/COST(1)

Earning Assets:

Interest-bearing deposits

3.64 %

3.93 %

4.36 %

4.41 %

4.39 %

Federal funds sold

3.97

4.28

4.74

4.71

4.79

Resell agreements

4.06

4.13

4.58

4.59

4.60

Securities(2)

3.85

3.82

3.85

3.79

3.63

Loans, net of unearned discounts

6.23

6.43

6.61

6.60

6.57

Total earning assets

4.88

4.94

5.11

5.07

4.99

Interest-Bearing Liabilities:

Interest-bearing deposits:

  Savings and interest checking

0.16 %

0.19 %

0.24 %

0.24 %

0.24 %

  Money market deposit accounts

1.88

2.08

2.28

2.28

2.27

  Time accounts

3.14

3.45

3.79

3.86

3.97

  Total interest-bearing deposits

1.55

1.75

1.94

1.93

1.94

Total deposits

1.04

1.17

1.30

1.29

1.30

Federal funds purchased

3.62

3.94

4.34

4.37

4.40

Repurchase agreements

2.70

2.87

3.17

3.23

3.13

Junior subordinated deferrable interest debentures

5.63

6.05

6.30

6.30

6.32

Subordinated notes payable and other notes

4.69

4.69

4.69

4.69

4.69

Total interest-bearing liabilities

1.72

1.92

2.13

2.12

2.12

Net interest spread

3.16

3.02

2.98

2.95

2.87

Net interest income to total average earning assets

3.74

3.66

3.69

3.67

3.60

AVERAGE BALANCES

($ in millions)

Assets:

Interest-bearing deposits

$  6,752

$  8,431

$  6,816

$  6,169

$  7,238

Federal funds sold

4

2

3

8

3

Resell agreements

8

10

10

23

10

Securities - carrying value(2)

19,853

19,929

20,213

20,401

19,384

Securities - amortized cost(2)

20,825

20,995

21,622

21,864

20,839

Loans, net of unearned discount

22,011

21,661

21,452

21,063

20,788

Total earning assets

$ 48,628

$ 50,033

$ 48,492

$ 47,664

$ 47,424

Liabilities:

Interest-bearing deposits:

  Savings and interest checking

$ 10,036

$  9,899

$  9,689

$  9,920

$  9,969

  Money market deposit accounts

11,900

12,619

11,817

11,518

11,432

  Time accounts

6,346

6,554

6,726

6,534

6,458

  Total 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

Federal funds purchased

24

27

29

25

18

Repurchase agreements

4,160

4,586

4,593

4,250

4,147

Junior subordinated deferrable interest debentures

123

123

123

123

123

Subordinated notes payable and other notes

100

100

100

100

100

Total interest-bearing funds

$ 32,689

$ 33,909

$ 33,077

$ 32,471

$ 32,248

(1) Taxable-equivalent basis assuming a 21% tax rate.

(2) Average securities include unrealized gains and losses on securities available for sale while yields are based on average amortized cost.

A.B. Mendez
Investor Relations
210.220.5234

or

Bill Day
Media Relations
210.220.5427

SOURCE Cullen/Frost Bankers, Inc.

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.

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.

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.

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.

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).

Inflation relentlessly erodes purchasing power, making dividend growth essential for income investors to maintain real income. A barbell strategy—combining moderate-yielding dividend growth stocks/ETFs and 6.5%+ yielding investment grade preferreds—offers both growth and current income. AI-driven capex by large-cap S&P 500 firms is powering economic growth and masking weakness among lower-income consumers.