Cullen/Frost Bankers Inc
NYSE:CFR
Cullen/Frost Bankers Inc
Cullen/Frost Bankers Inc., with its stalwart presence in the financial landscape, weaves a rich narrative of enduring legacy and modern acumen. Founded in 1868 as Frost Bank in San Antonio, Texas, this venerable institution has grown to become a formidable force in regional banking. Its story is rooted in a commitment to relationship banking, focusing on personalized customer service, which sets it apart in an industry often dominated by digital interactions. The bank thrives by serving a diverse clientele, including private individuals, small businesses, and large corporations, offering a range of services that span commercial and consumer banking, wealth management, and investment advisory services.
The company's financial strength pivots on a robust model of generating income primarily through net interest margins. This involves leveraging deposits to issue loans — from commercial and industrial loans to real estate and consumer loans — and earning the spread between interest paid on deposits and interest received on loans. Additionally, Cullen/Frost supplements its income with non-interest revenue streams, including fees from wealth management, treasury management services, and insurance products. By focusing keenly on disciplined credit underwriting and prudent risk management, Cullen/Frost not only sustains its profitability but also fortifies its reputation as a resilient, trusted financial partner across the Lone Star State.
Cullen/Frost Bankers Inc., with its stalwart presence in the financial landscape, weaves a rich narrative of enduring legacy and modern acumen. Founded in 1868 as Frost Bank in San Antonio, Texas, this venerable institution has grown to become a formidable force in regional banking. Its story is rooted in a commitment to relationship banking, focusing on personalized customer service, which sets it apart in an industry often dominated by digital interactions. The bank thrives by serving a diverse clientele, including private individuals, small businesses, and large corporations, offering a range of services that span commercial and consumer banking, wealth management, and investment advisory services.
The company's financial strength pivots on a robust model of generating income primarily through net interest margins. This involves leveraging deposits to issue loans — from commercial and industrial loans to real estate and consumer loans — and earning the spread between interest paid on deposits and interest received on loans. Additionally, Cullen/Frost supplements its income with non-interest revenue streams, including fees from wealth management, treasury management services, and insurance products. By focusing keenly on disciplined credit underwriting and prudent risk management, Cullen/Frost not only sustains its profitability but also fortifies its reputation as a resilient, trusted financial partner across the Lone Star State.
Earnings Growth: Cullen/Frost reported Q4 net income of $164.6 million, up 7.4% year-over-year, and full-year 2025 net income of $641.9 million, up 11.5%.
EPS: Fourth quarter EPS was $2.56, up 8.5% YoY; full-year EPS reached $9.92 versus $8.87 in 2024.
Loan & Deposit Expansion: Average deposits rose 3.5% YoY to $43.3 billion; average loans increased 6.5% YoY to $21.7 billion.
Expansion Strategy: Branch expansion continues to drive growth, with 78,000+ new households added and expansion deposits exceeding $3 billion.
Strong Credit Quality: Nonperforming assets remain low at $72 million; net charge-offs also at healthy levels, with proactive reserves for isolated credit issues.
Guidance 2026: Management expects loan growth of 5–7%, deposit growth of 2–3%, net interest income growth of 3–5%, and net interest margin improvement of 5–10 bps.
Share Repurchases: Completed $80.7 million in share buybacks in Q4 and authorized a new $300 million repurchase program.
Expense Growth: Noninterest expense expected to rise 5–6% in 2026, mainly from technology and AI investments, but foundational spending seen as largely complete.
