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

Cullen/Frost Bankers (NYSE:CFR) issued its earnings results on Thursday. The bank reported $2.84 earnings per share for the quarter, topping the consensus estimate of $2.80 by $0.04, FiscalAI reports. Cullen/Frost Bankers had a net margin of 23.34% and a return on equity of 15.55%. The company had revenue of $603.83 million during the quarter, compared to the consensus estimate of $610.19 million. During the same quarter in the prior year, the firm posted $2.67 EPS.

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

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

Cullen/Frost Bankers Price Performance

Shares of NYSE:CFR traded up $0.75 during mid-day trading on Thursday, reaching $157.76. The stock had a trading volume of 457,923 shares, compared to its average volume of 547,915. The business’s 50 day moving average price is $158.08 and its 200 day moving average price is $148.61. Cullen/Frost Bankers has a 1 year low of $119.14 and a 1 year high of $170.80. The company has a market cap of $9.80 billion, a P/E ratio of 14.91, a price-to-earnings-growth ratio of 1.83 and a beta of 0.56. The company has a current ratio of 0.63, a quick ratio of 0.63 and a debt-to-equity ratio of 0.05.

Analyst Ratings Changes

CFR has been the topic of several research analyst reports. Weiss Ratings restated a “buy (b)” rating on shares of Cullen/Frost Bankers in a research report on Tuesday, October 13th. Keefe, Bruyette & Woods increased their target price on 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 decreased their target price on Cullen/Frost Bankers from $176.00 to $175.00 and set a “sector perform” rating on the stock in a research note on Friday, October 9th. Barclays boosted their price target on Cullen/Frost Bankers from $160.00 to $175.00 and gave the stock an “equal weight” rating in a report on Monday, October 5th. Finally, Stephens upped their price target on Cullen/Frost Bankers from $169.00 to $183.00 and gave the stock an “overweight” rating in a research note on Friday, July 31st. Five investment analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, Cullen/Frost Bankers currently has an average rating of “Hold” and a consensus target price of $169.36.

Trending Headlines about Cullen/Frost Bankers

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

• Positive Sentiment: Q3 earnings exceeded expectations: Cullen/Frost reported third-quarter net income available to common shareholders of $178.5 million, or $2.84 per diluted share, up from $2.67 a year earlier and above the $2.80 consensus estimate. Cullen/Frost Reports Third Quarter Results
• Positive Sentiment: Banking activity remained healthy: Average loans rose 9.0% year over year to $23.4 billion, while average deposits increased 3.6% to $43.6 billion. Non-interest income also grew 8.2% to $136.0 million, supporting profitability. Cullen Frost Reports $180.2 Million Third Quarter Net Income
• Positive Sentiment: Dividend maintained: The board declared a fourth-quarter cash dividend of $1.03 per common share, payable December 15, 2026. It also declared the Series B preferred dividend. Cullen/Frost Declares Fourth Quarter Cash Dividend
• Neutral Sentiment: Analyst estimates edged higher: Zacks Research raised its FY2026 EPS forecast to $10.80 from $10.77 and maintained a “Hold” rating, signaling modest confidence but no change in its overall stance.
• Negative Sentiment: Revenue missed expectations: Quarterly revenue was $603.8 million versus the $610.2 million consensus estimate. Non-interest expense increased 7.0% year over year to $377.2 million.
• Negative Sentiment: Credit costs persisted: Credit loss expense was $12.1 million and net charge-offs totaled $8.4 million for the quarter, factors investors will monitor as loan balances expand. Cullen/Frost Reports Third-Quarter Net Charge-Offs

Cullen/Frost Bankers Company Profile

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

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

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