CULLEN/FROST REPORTS SECOND QUARTER RESULTS

Rhea-AI Summary

Cullen/Frost Bankers (NYSE:CFR) reported second-quarter 2026 net income available to common shareholders of $170.4 million, up from $155.3 million a year earlier, with diluted EPS of $2.70 versus $2.39. Return on average assets was 1.30% and return on average common equity was 15.41%.

Taxable-equivalent net interest income rose 4.3% year over year to $470.1 million, as average loans increased 7.4% to $22.6 billion and average deposits grew 2.1% to $42.6 billion. Non-interest income grew 9.4% to $128.3 million, led by higher investment management fees and service charges.

Non-interest expense increased 4.2% to $361.7 million, driven mainly by higher salaries, benefits and technology costs. Credit loss expense was $9.8 million with net charge-offs of $9.5 million, while non-accrual loans rose to $112.7 million. Capital ratios remained above regulatory minimums, with a CET1 ratio of 13.95%. The company repurchased 654,955 shares for $90.0 million and declared a third-quarter common dividend of $1.03 per share and a Series B preferred dividend of $11.125 per share (or $0.278125 per depositary share, NYSE:CFRPRB), both payable September 15, 2026.

Positive

• EPS up 13% YoY to $2.70 in Q2 2026
• Net income to common increased to $170.4M from $155.3M YoY
• Loan growth of 7.4% YoY to $22.6B average balance
• Average deposits up 2.1% YoY to $42.6B
• Net interest income on TE basis up 4.3% YoY to $470.1M
• CET1 capital ratio strong at 13.95%, above well-capitalized levels
• Share repurchases of 654,955 shares for $90.0M in Q2
• Non-interest income grew 9.4% YoY to $128.3M

Negative

• Non-accrual loans increased to $112.7M vs $72.4M in Q1 2026
• Credit loss expense rose to $9.8M from $6.7M in Q1 2026
• Net charge-offs annualized at 0.17% of average loans vs 0.11% in Q1
• Non-interest expense rose 4.2% YoY to $361.7M
• Salaries and wages expense up 6.7% YoY, reflecting higher compensation and headcount

AI-generated analysis. How Rhea-AI works. Not financial advice.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

Board declares third quarter dividend on common and preferred stock

SAN ANTONIO, July 30, 2026 /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 investor relations website: https://investor.frostbank.com/ 

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)
	2026				2025
	2nd Qtr		1st Qtr		4th Qtr		3rd Qtr		2nd Qtr
TAXABLE-EQUIVALENT YIELD/COST(1)
Earning Assets:
Interest-bearing deposits	3.65 %		3.64 %		3.93 %		4.36 %		4.41 %
Federal funds sold	3.97		3.97		4.28		4.74		4.71
Resell agreements	—		4.06		4.13		4.58		4.59
Securities(2)	3.96		3.85		3.82		3.85		3.79
Loans, net of unearned discounts	6.17		6.23		6.43		6.61		6.60
Total earning assets	4.92		4.88		4.94		5.11		5.07
Interest-Bearing Liabilities:
Interest-bearing deposits:
Savings and interest checking	0.15 %		0.16 %		0.19 %		0.24 %		0.24 %
Money market deposit accounts	1.92		1.88		2.08		2.28		2.28
Time accounts	3.24		3.14		3.45		3.79		3.86
Total interest-bearing deposits	1.61		1.55		1.75		1.94		1.93
Total deposits	1.08		1.04		1.17		1.30		1.29
Federal funds purchased	3.66		3.62		3.94		4.34		4.37
Repurchase agreements	2.65		2.70		2.87		3.17		3.23
Junior subordinated deferrable interest debentures	5.60		5.63		6.05		6.30		6.30
Subordinated notes payable and other notes	4.69		4.69		4.69		4.69		4.69
Total interest-bearing liabilities	1.77		1.72		1.92		2.13		2.12
Net interest spread	3.15		3.16		3.02		2.98		2.95
Net interest income to total average earning assets	3.75		3.74		3.66		3.69		3.67
AVERAGE BALANCES
($ in millions)
Assets:
Interest-bearing deposits	$   5,808		$   6,752		$   8,431		$   6,816		$   6,169
Federal funds sold	4		4		2		3		8
Resell agreements	—		8		10		10		23
Securities - carrying value(2)	20,648		19,853		19,929		20,213		20,401
Securities - amortized cost(2)	21,766		20,825		20,995		21,622		21,864
Loans, net of unearned discount	22,622		22,011		21,661		21,452		21,063
Total earning assets	$ 49,082		$ 48,628		$ 50,033		$ 48,492		$ 47,664
Liabilities:
Interest-bearing deposits:
Savings and interest checking	$   9,938		$ 10,036		$   9,899		$   9,689		$   9,920
Money market deposit accounts	12,145		11,900		12,619		11,817		11,518
Time accounts	6,509		6,346		6,554		6,726		6,534
Total 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
Federal funds purchased	24		24		27		29		25
Repurchase agreements	4,379		4,160		4,586		4,593		4,250
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	$ 33,219		$ 32,689		$ 33,909		$ 33,077		$ 32,471
(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

View original content to download multimedia:https://www.prnewswire.com/news-releases/cullenfrost-reports-second-quarter-results-302838443.html

SOURCE Cullen/Frost Bankers, Inc.

FAQ

How did Cullen/Frost (NYSE:CFR) perform financially in Q2 2026?

Cullen/Frost reported Q2 2026 net income available to common shareholders of $170.4 million and diluted EPS of $2.70. According to Cullen/Frost, this compares with $155.3 million and $2.39 in Q2 2025, with returns on assets and common equity of 1.30% and 15.41%.

What were Cullen/Frost's key loan and deposit trends in Q2 2026 (CFR)?

Cullen/Frost’s average loans reached $22.6 billion in Q2 2026, up 7.4% year over year, while average deposits were $42.6 billion, up 2.1%. According to Cullen/Frost, both loans and deposits also increased sequentially versus Q1 2026, indicating continued balance sheet growth.

What dividends did Cullen/Frost declare for Q3 2026 on CFR and CFRPRB shares?

The board declared a Q3 2026 cash dividend of $1.03 per common share and $11.125 per Series B preferred share (or $0.278125 per CFRPRB depositary share. According to Cullen/Frost, both dividends are payable September 15, 2026 to shareholders of record on August 31, 2026.

Did Cullen/Frost (CFR) repurchase shares in the second quarter of 2026?

Yes. Cullen/Frost repurchased 654,955 common shares for a total cost of $90.0 million in Q2 2026. According to Cullen/Frost, $140.0 million remained under the existing $300 million repurchase authorization, which is scheduled to expire in January 2027.

How did credit quality and credit loss expense trend for Cullen/Frost in Q2 2026?

Cullen/Frost recorded $9.8 million in credit loss expense and $9.5 million in net charge-offs in Q2 2026. According to Cullen/Frost, non-accrual loans increased to $112.7 million, while the allowance for credit losses on loans was 1.23% of total loans at June 30, 2026.

What were Cullen/Frost's capital ratios at June 30, 2026?

At June 30, 2026, Cullen/Frost reported a Common Equity Tier 1 ratio of 13.95%, Tier 1 ratio of 14.38% and total risk-based ratio of 15.74%. According to Cullen/Frost, these measures remained above well-capitalized regulatory thresholds and exceeded Basel III minimum capital requirements.

When is Cullen/Frost’s Q2 2026 earnings conference call and how can investors access it?

Cullen/Frost scheduled its Q2 2026 earnings call for Thursday, July 30, 2026, at 1 p.m. CT. According to Cullen/Frost, investors can listen via phone at 1-877-709-8150 or by webcast on the company’s investor relations website, with replays available after 5 p.m. CT.