CULLEN/FROST REPORTS THIRD QUARTER RESULTS

Loan and deposit growth accompanied higher credit loss expense, while quarterly returns on assets and common equity fell year over year.

Rhea-AI Summary

Cullen/Frost Bankers (NYSE:CFR) reported third-quarter 2026 net income available to common shareholders of $178.5 million, up from a year earlier. Diluted earnings per share rose to $2.84 from $2.67, while common shareholder income compared with $172.7 million. Taxable-equivalent net interest income increased 5.8% to $490.8 million, and net interest margin reached 3.78%, versus 3.69% a year earlier.

Average loans grew 9.0% year over year to $23.4 billion; average deposits increased 3.6% to $43.6 billion. Non-interest income rose 8.2% to $136.0 million, while non-interest expense increased 7.0% to $377.2 million. Credit loss expense rose to $12.1 million from $6.8 million a year earlier. Property-sale gains of $7.6 million accompanied securities-sale losses of $7.5 million. Nine-month common shareholder income increased 8.6% to $518.2 million, with per-share income up 11.3% to $8.19.

14 points · 0 major

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Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

0 major · 14 points

How the balance works

Positive

• Moderate pointThird-quarter common shareholder income rose to $178.5 million from $172.7 million; diluted EPS increased to $2.84 from $2.67.
• Moderate pointTaxable-equivalent net interest income increased 5.8% year over year to $490.8 million in the third quarter.
• Moderate pointNet interest margin reached 3.78%, versus 3.69% a year earlier and 3.75% in second-quarter 2026.
• Moderate pointAverage loans reached $23.4 billion, up 9.0% year over year and 3.3% from second-quarter 2026.
• Moderate pointAverage deposits reached $43.6 billion, up 3.6% year over year and 2.3% from second-quarter 2026.
• Moderate pointThird-quarter non-interest income increased 8.2% year over year to $136.0 million, including property-sale gains.
• Moderate pointNine-month return on average assets improved to 1.31% from 1.24% in the comparable 2025 period.

7 minor points

• Minor pointCustomer households grew 5.4% from September 2025 to September 2026.
• Minor pointWealth Management managed customer accounts grew more than 5% compared with a year earlier.
• Minor pointFrost Insurance Agency commercial customers increased over 10% compared with third-quarter 2025.
• Minor pointNine-month common shareholder income rose 8.6% to $518.2 million; per-share income increased 11.3% to $8.19.
• Minor pointNine-month credit loss expense declined to $28.602 million from $32.978 million in 2025.
• Minor pointCommon share repurchases totaled 92,700 shares for $15.0 million during third-quarter 2026.
• Minor pointRemaining buyback authorization was $125.0 million at quarter-end, expiring in January 2027.

Negative

• Moderate pointThird-quarter non-interest expense increased 7.0% year over year to $377.2 million.
• Moderate pointThird-quarter credit loss expense rose to $12.1 million, versus $9.8 million sequentially and $6.8 million a year earlier.
• Moderate pointNon-accrual loans were $63.7 million, above $44.8 million a year earlier but below $112.7 million sequentially.
• Moderate pointNet charge-offs were $8.4 million, above $6.6 million a year earlier but below $9.5 million sequentially.
• Moderate pointQuarter-end book value per common share fell to $61.70, versus $72.04 sequentially and $67.64 a year earlier.
• Moderate pointQuarter-end shareholders' equity declined to $3,974 million, versus $4,623 million sequentially and $4,461 million a year earlier.

8 minor points

• Minor pointSecurities sales produced $7.5 million in losses during third-quarter 2026.
• Minor pointThird-quarter return on average assets fell to 1.31% from 1.32% a year earlier.
• Minor pointThird-quarter return on average common equity fell to 16.16% from 16.72% a year earlier.
• Minor pointNine-month return on average common equity declined to 15.57% from 15.98% in the comparable 2025 period.
• Minor pointLoan credit-loss allowance coverage fell to 1.23% from 1.31% a year earlier, unchanged sequentially.
• Minor pointCommon Equity Tier 1 capital ratio declined to 13.76% from 14.14% a year earlier, remaining above well-capitalized requirements.
• Minor pointTier 1 capital ratio declined to 14.18% from 14.59% a year earlier, remaining above well-capitalized requirements.
• Minor pointTotal risk-based capital ratio declined to 15.50% from 16.04% a year earlier, remaining above well-capitalized requirements.

News Explained

Eligible holders have a declared cash payment scheduled, and the company completed share purchases while retaining repurchase authorization.

Cullen/Frost declared a fourth-quarter cash dividend of $1.03 per common share, payable December 15, 2026 to shareholders of record on November 30, 2026.

During the third quarter, the company repurchased 92,700 common shares for $15.0 million; at quarter-end, $125.0 million remained under its $300 million authorization, which expires January 2027.

Key Figures

Net income to common shareholders: $178.5 million Diluted EPS: $2.84 per diluted common share Taxable-equivalent net interest income: $490.8 million; up 5.8% +5 more

Net income to common shareholders

$178.5 million

Q3 2026; compared with $172.7 million in Q3 2025

Diluted EPS

$2.84 per diluted common share

Q3 2026; compared with $2.67 a year earlier

Taxable-equivalent net interest income

$490.8 million; up 5.8%

Q3 2026 versus Q3 2025

Average loans

$23.4 billion; up 9.0%

Q3 2026 versus Q3 2025

Average deposits

$43.6 billion; up 3.6%

Q3 2026 versus Q3 2025

Non-interest expense

$377.2 million; up 7.0%

Q3 2026 versus Q3 2025

Credit loss expense

$12.1 million

Q3 2026; compared with $6.8 million in Q3 2025

Common dividend

$1.03 per share

Fourth-quarter cash dividend declared

Previous Earnings Reports

2 past events · Latest: Jul 30

Same Type 2 events

1. Jul 30

   Second-quarter earnings

   24h Move

   -2.1%

   Reported higher year-over-year net income, diluted EPS, taxable-equivalent net interest income, loans and deposits.

2. Oct 30

   Third-quarter earnings

   24h Move

   +1.7%

   Reported third-quarter net income, diluted EPS and taxable-equivalent net interest income against the prior-year quarter.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

taxable-equivalent basis, common equity tier 1, risk-based capital ratios, net charge-offs, +1 more

5 terms

taxable-equivalent basis technical

"Net interest income on a taxable-equivalent basis"

An adjustment that converts the yield or interest from a tax-exempt security into the pre-tax yield that a taxable security would need to offer to produce the same after-tax return. It is calculated by dividing the tax-exempt yield by (1 − the investor’s marginal tax rate), so the result depends on which federal (and sometimes state or local) tax rate is used; it lets investors compare tax-exempt and taxable yields on a common, pre-tax basis but does not change the underlying tax rules or account for special tax regimes.

common equity tier 1 regulatory

"The Common Equity Tier 1, Tier 1 and Total Risk-Based Capital Ratios"

Common Equity Tier 1 is the highest-quality capital a bank holds—mainly common shares and retained profits—that acts as the primary cushion against losses. Investors use the CET1 level and ratio to judge a bank’s financial strength and regulatory standing: a bigger cushion means the bank is better able to absorb shocks, sustain payouts and borrow cheaply, much like an emergency fund for a household.

risk-based capital ratios regulatory

"The Common Equity Tier 1, Tier 1 and Total Risk-Based Capital Ratios"

A risk-based capital ratio measures how much financial cushion a company holds relative to the risks in its assets and business activities; assets that are riskier require more capital, so the ratio adjusts the cushion to reflect actual exposure. Investors use it like checking the sturdiness of a safety net — a higher ratio means a company is better positioned to absorb losses and less likely to need emergency funding or face regulatory action, making its shares or bonds generally less risky.

net charge-offs financial

"reported a credit loss expense of $12.1 million and reported net charge-offs"

Net charge-offs are the amount of loans or credit a lender removes from its books as uncollectible after subtracting any money later recovered from previously written-off accounts. Think of it like a store writing off unpaid tabs but getting back a few dollars later — the net figure shows the real loss. Investors watch this to judge a lender’s loan quality, future profits and how much capital may be needed to cover bad debts.

non-accrual loans financial

"Non-accrual loans were $63.7 million at the end of the third quarter"

A non-accrual loan is a loan a lender has decided is unlikely to produce the scheduled interest payments, so the lender stops counting future interest as income and may record the loan at a reduced value. Think of it like renting out a house where the tenant has stopped paying: you stop counting future rent as earnings because it’s uncertain you’ll get it. For investors, a rise in non-accrual loans signals worsening credit quality, lower reported income and higher potential losses that can weaken a bank’s capital and share price.

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

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Board declares fourth quarter dividend on common and preferred stock

SAN ANTONIO, Oct. 29, 2026 /PRNewswire/ -- Cullen/Frost Bankers, Inc. (NYSE:CFR) today reported third quarter 2026 results.

Net income available to common shareholders for the third quarter of 2026 was $178.5 million, compared to $172.7 million for the third quarter of 2025. On a per-share basis, net income available to common shareholders for the third quarter of 2026 was $2.84 per diluted common share, compared to $2.67 per diluted common share reported a year earlier. Returns on average assets and average common equity were 1.31 percent and 16.16 percent, respectively, for the third quarter of 2026, compared to 1.32 percent and 16.72 percent, respectively, for the same period a year earlier.

For the third quarter of 2026, net interest income on a taxable-equivalent basis was $490.8 million, up 5.8 percent compared to the same quarter in 2025. Average loans for the third quarter of 2026 increased $1.9 billion, or 9.0 percent, to $23.4 billion, from the $21.5 billion reported for the third quarter a year earlier, and increased $756.4 million, or 3.3 percent, compared to the second quarter of 2026. Average deposits for the third quarter increased $1.5 billion, or 3.6 percent, to $43.6 billion, compared to the $42.1 billion reported for last year's third quarter, and increased $959.2 million, or 2.3 percent, compared to the second quarter of 2026.

"During the third quarter, Frost Bankers continued their outstanding execution of our organic growth strategy, and as a result, we saw another quarter of accelerating growth in average loan and deposit volumes," said Cullen/Frost Chairman and CEO, Phil Green.

"As people and businesses continue to move into Texas from other parts of the country, we see great opportunity to continue extending the Frost experience to more new Texans. That includes retail customers and businesses new to the state alike. During the third quarter we kept up a strong pace of new customer additions, growing the overall banking customer base at a five percent yearly rate. In our Wealth Management business, we grew managed customer accounts by more than five percent compared to a year ago. And our Frost Insurance Agency increased commercial customers by over ten percent compared to the third quarter of 2025.

"I want to recognize the outstanding focus and execution of our employees throughout the state as they meet the challenge of competing and winning against competitors old and new."

For the first nine months of 2026, net income available to common shareholders was $518.2 million, up 8.6 percent compared to $477.3 million for the first nine months of 2025. On a per-share basis, net income available to common shareholders for the first nine months of 2026 was $8.19, up 11.3 percent compared to $7.36 in the year-earlier period. Returns on average assets and average common equity for the first nine months of 2026 were 1.31 percent and 15.57 percent, respectively, compared to 1.24 percent and 15.98 percent, respectively, for the same period in 2025.

Noted financial data for the third quarter of 2026 follows:

• The Common Equity Tier 1, Tier 1 and Total Risk-Based Capital Ratios at the end of the third quarter of 2026 were 13.76 percent, 14.18 percent and 15.50 percent, respectively, and continue to be in excess of well-capitalized levels and exceed Basel III minimum requirements.
• During the third quarter, our base of customer households continued to grow. Total households, including consumer and commercial customers, grew by 5.4 percent from September, 2025 to September, 2026.
• Net interest income on a taxable-equivalent basis was $490.8 million for the third quarter of 2026, an increase of 5.8 percent, compared to $463.7 million for the third quarter of 2025. Net interest margin was 3.78 percent for the third quarter of 2026 compared to 3.69 percent for the third quarter of 2025 and 3.75 percent for the second quarter of 2026.
• Non-interest income for the third quarter of 2026 totaled $136.0 million, an increase of $10.3 million, or 8.2 percent, from the $125.6 million reported for the third quarter of 2025. Trust and investment management fees increased $4.6 million, or 10.3 percent, compared to the third quarter of 2025. The increase in trust and investment management fees during the third quarter was primarily related to increases in investment management fees (up $3.6 million) and oil and gas fees (up $1.6 million). Other non-interest income increased $7.4 million, or 54.5 percent, compared to the third quarter of 2025. The increase during the third quarter was primarily related to $7.6 million of gains on the sale of excess bank properties.
• Non-interest expense was $377.2 million for the third quarter of 2026, up $24.7 million, or 7.0 percent, compared to the $352.5 million reported for the third quarter a year earlier. Salaries and wages expense increased $13.0 million, or 7.7 percent, compared to the third quarter of 2025. The increase in salaries and wages was primarily related to increases in salaries due to annual merit and market increases and growth in the number of employees, driven in part by investments in organic expansion across various markets. Other non-interest expense increased $8.1 million, or 12.5 percent, compared to the third quarter of 2025. The increase included increases in advertising/promotions expense (up $6.4 million). Technology, furniture, and equipment expense increased $2.7 million, or 6.1 percent, compared to the third quarter of 2025. The increase was primarily related to increased cloud services expense (up $1.4 million) and software maintenance expense (up $828,000).
• For the third quarter of 2026, the company reported a credit loss expense of $12.1 million and reported net charge-offs of $8.4 million. This compares to a credit loss expense of $9.8 million and net charge-offs of $9.5 million for the second quarter of 2026 and a credit loss expense of $6.8 million and net charge-offs of $6.6 million for the third quarter of 2025. The allowance for credit losses on loans as a percentage of total loans was 1.23 percent at September 30, 2026, compared to 1.23 percent at the end of the second quarter of 2026 and 1.31 percent at the end of the third quarter of 2025. Non-accrual loans were $63.7 million at the end of the third quarter of 2026, compared to $112.7 million at the end of the second quarter of 2026 and $44.8 million at the end of the third quarter of 2025.
• During the third quarter, in addition to the above-mentioned $7.6 million in gains on the sale of excess bank properties, we also recognized $7.5 million in losses on sales of securities.
• During the third quarter of 2026, we repurchased 92,700 of our common shares at a total cost of $15.0 million under our board-authorized stock repurchase plan. As of the end of the third quarter, we had $125.0 million remaining under our current $300 million repurchase authorization, which expires in January 2027.

The Cullen/Frost board declared a fourth-quarter cash dividend of $1.03 per common share. The dividend on common stock is payable December 15, 2026 to shareholders of record on November 30 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 December 15, 2026 to shareholders of record on November 30 of this year.

Cullen/Frost Bankers, Inc. will host a conference call on Thursday, October 29, 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, November 1, 2026 at 1-877-660-6853 with Conference ID # of 13763286. 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 $54.5 billion in assets at September 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 (which includes Corpus Christi, Victoria and the Rio Grande Valley), 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, 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, ongoing geopolitical tensions, armed conflicts, regional instability, sanctions, cyber-related threats, and attacks affecting commercial shipping and critical infrastructure have increased geopolitical uncertainty and contributed to volatility in financial, energy, and commodity markets. Military conflict in the Middle East has disrupted energy markets and shipping routes, including through the Strait of Hormuz, while the ongoing Russia-Ukraine war and other geopolitical tensions continue to present risks to global economic and market conditions. Further escalation, including disruptions to shipping routes, energy supplies, critical infrastructure, or global supply chains, or expanded sanctions, trade restrictions, or cyber-related incidents, could adversely affect economic activity, inflation, market conditions, and borrower credit quality. These developments could also adversely affect our funding profile, liquidity, customer and counterparty credit quality, and the value of certain financial instruments and could have a material adverse effect on our business, financial condition, results of operations, and prospects. The timing, magnitude, duration, and geographic scope of these developments remain highly uncertain.

Furthermore, financial markets, international relations, and global supply chains continue to be affected by evolving trade policies and related legal, regulatory, and administrative developments. In February 2026, the U.S. Supreme Court ruled that the International Emergency Economic Powers Act does not authorize the President to impose tariffs, invalidating tariffs previously imposed under that authority. The U.S. government subsequently implemented additional tariff measures under other statutory authorities, certain of which remain subject to legal challenges. Uncertainty regarding U.S. trade policy and the economic effects of tariffs and other trade restrictions could affect business confidence, capital investment, customer cash flows, supply chains, commodity prices, inflation, and market volatility. These developments could adversely affect the financial condition and operating performance of customers, particularly those in trade-sensitive industries, and increase our exposure to credit, market, liquidity, operational, compliance, and reputational risks. If these developments adversely affect borrower credit quality, market stability, or broader economic conditions, they could have a material adverse effect on our business, financial condition, results of operations, and prospects.

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
	3rd Qtr			2nd Qtr			1st Qtr			4th Qtr			3rd Qtr
CONDENSED INCOME STATEMENTS
Net interest income	$ 467,867			$ 447,728			$ 438,522			$ 448,707			$ 441,618
Net interest income (1)	490,767			470,066			460,792			471,218			463,667
Credit loss expense	12,090			9,767			6,745			11,224			6,779
Non-interest income:
Trust and investment management fees	49,472			47,643			47,957			45,651			44,846
Service charges on deposit accounts	36,304			34,177			32,157			32,360			31,440
Insurance commissions and fees	15,838			14,166			22,075			15,180			15,424
Interchange and card transaction fees	6,843			6,546			6,532			6,290			5,547
Other charges, commissions, and fees	13,911			13,787			13,268			15,228			14,730
Net gain (loss) on securities transactions	(7,512)			—			—			(836)			—
Other	21,106			11,962			14,326			18,291			13,660
Total non-interest income	135,962			128,281			136,315			132,164			125,647
Non-interest expense:
Salaries and wages	182,183			172,955			166,190			182,486			169,155
Employee benefits	33,649			35,156			44,656			36,653			34,465
Net occupancy	35,848			35,223			34,753			34,341			34,682
Technology, furniture, and equipment	46,145			42,564			41,674			41,575			43,479
Deposit insurance	6,941			6,305			7,203			(1,350)			6,328
Other	72,434			69,497			71,210			77,963			64,369
Total non-interest expense	377,200			361,700			365,686			371,668			352,478
Income before income taxes	214,539			204,542			202,406			197,979			208,008
Income taxes	34,330			32,483			31,419			31,727			33,628
Net income	180,209			172,059			170,987			166,252			174,380
Preferred stock dividends	1,668			1,669			1,669			1,669			1,668
Net income available to common shareholders	$	178,541		$	170,390		$	169,318		$	164,583		$	172,712
PER COMMON SHARE DATA
Earnings per common share - basic	$	2.84		$	2.70		$	2.65		$	2.56		$	2.67
Earnings per common share - diluted	2.84			2.70			2.65			2.56			2.67
Cash dividends per common share	1.03			1.03			1.00			1.00			1.00
Book value per common share at end of quarter	61.70			72.04			69.83			69.96			67.64
OUTSTANDING COMMON SHARES
Period-end common shares	62,056			62,149			62,797			63,287			63,801
Weighted-average common shares - basic	62,117			62,455			63,101			63,588			64,080
Dilutive effect of stock compensation	—			—			—			16			41
Weighted-average common shares - diluted	62,117			62,455			63,101			63,604			64,121
SELECTED ANNUALIZED RATIOS
Return on average assets	1.31 %			1.30 %			1.32 %			1.22 %			1.32 %
Return on average common equity	16.16			15.41			15.15			14.80			16.72
Net interest income to average earning assets	3.78			3.75			3.74			3.66			3.69
(1) Taxable-equivalent basis assuming a 21% tax rate.

 

Cullen/Frost Bankers, Inc.
CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)
	2026								2025
	3rd Qtr			2nd Qtr			1st Qtr			4th Qtr			3rd Qtr
BALANCE SHEET SUMMARY
($ in millions)
Average Balance:
Loans	$	23,378		$	22,622		$	22,011		$	21,661		$	21,452
Earning assets	50,450			49,082			48,628			50,033			48,492
Total assets	54,115			52,626			52,122			53,507			51,911
Non-interest-bearing demand deposits	14,360			14,027			13,944			14,268			13,839
Interest-bearing deposits	29,219			28,592			28,282			29,072			28,232
Total deposits	43,579			42,620			42,226			43,340			42,071
Shareholders' equity	4,529			4,581			4,677			4,558			4,243
Period-End Balance:
Loans	$	23,657		$	22,976		$	22,432		$	21,892		$	21,446
Earning assets	50,515			50,260			49,172			49,524			49,147
Total assets	54,516			53,881			52,725			53,041			52,533
Total deposits	44,222			43,334			42,836			42,918			42,517
Shareholders' equity	3,974			4,623			4,531			4,573			4,461
Adjusted shareholders' equity (1)	5,578			5,474			5,454			5,416			5,385
ASSET QUALITY
($ in thousands)
Allowance for credit losses on loans:	$	290,258		$	283,712		$	286,215		$	281,495		$	280,221
As a percentage of period-end loans	1.23 %			1.23 %			1.28 %			1.29 %			1.31 %
Net charge-offs:	$	8,364		$	9,527		$	5,741		$	5,843		$	6,589
Annualized as a percentage of average loans	0.14 %			0.17 %			0.11 %			0.11 %			0.12 %
Non-accrual loans/loans held for sale:	$	63,704		$	112,717		$	72,350		$	70,482		$	44,778
As a percentage of total loans and loans held for sale	0.27 %			0.49 %			0.32 %			0.32 %			0.21 %
As a percentage of total assets	0.12			0.21			0.14			0.13			0.09
CONSOLIDATED CAPITAL RATIOS
Common Equity Tier 1 Risk-Based Capital Ratio	13.76 %			13.95 %			14.07 %			14.06 %			14.14 %
Tier 1 Risk-Based Capital Ratio	14.18			14.38			14.51			14.50			14.59
Total Risk-Based Capital Ratio	15.50			15.74			15.89			15.95			16.04
Leverage Ratio	8.98			9.06			9.13			8.80			9.00
Equity to Assets Ratio (period-end)	7.29			8.58			8.59			8.62			8.49
Equity to Assets Ratio (average)	8.37			8.71			8.97			8.52			8.17
(1) Shareholders' equity excluding accumulated other comprehensive income (loss).

 

Cullen/Frost Bankers, Inc.
CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)
(In thousands, except per share amounts)
							Nine Months Ended
							September 30,
							2026			2025
CONDENSED INCOME STATEMENTS
Net interest income							$ 1,354,117			$ 1,287,442
Net interest income (1)							1,421,626			1,350,630
Credit loss expense							28,602			32,978
Non-interest income:
Trust and investment management fees							145,072			131,446
Service charges on deposit accounts							102,638			89,212
Insurance commissions and fees							52,079			50,322
Interchange and card transaction fees							19,921			16,568
Other charges, commissions and fees							40,966			42,283
Net gain (loss) on securities transactions							(7,512)			(14)
Other							47,394			37,114
Total non-interest income							400,558			366,931
Non-interest expense:
Salaries and wages							521,328			492,161
Employee benefits							113,461			109,448
Net occupancy							105,824			102,599
Technology, furniture and equipment							130,383			124,169
Deposit insurance							20,449			20,102
Other							213,141			199,193
Total non-interest expense							1,104,586			1,047,672
Income before income taxes							621,487			573,723
Income taxes							98,232			91,418
Net income							523,255			482,305
Preferred stock dividends							5,006			5,006
Net income available to common shareholders							$	518,249		$	477,299
PER COMMON SHARE DATA
Earnings per common share - basic							$	8.19		$	7.36
Earnings per common share - diluted							8.19			7.36
Cash dividends per common share							$	3.06		$	2.95
Book value per common share at end of quarter							61.70			67.64
OUTSTANDING COMMON SHARES
Period-end common shares							62,056			63,801
Weighted-average common shares - basic							62,554			64,211
Dilutive effect of stock compensation							—			55
Weighted-average common shares - diluted							62,554			64,266
SELECTED ANNUALIZED RATIOS
Return on average assets							1.31 %			1.24 %
Return on average common equity							15.57			15.98
Net interest income to average earning assets							3.76			3.65
(1) Taxable-equivalent basis assuming a 21% tax rate.

 

Cullen/Frost Bankers, Inc.
CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)
							As of or for the
							Nine Months Ended
							September 30,
							2026			2025
BALANCE SHEET SUMMARY
($ in millions)
Average Balance:
Loans							$	22,675		$	21,103
Earning assets							49,394			47,864
Total assets							52,974			51,344
Non-interest-bearing demand deposits							14,112			13,809
Interest-bearing deposits							28,701			28,023
Total deposits							42,813			41,831
Shareholders' equity							4,595			4,139
Period-End Balance:
Loans							$	23,657		$	21,446
Earning assets							50,515			49,147
Total assets							54,516			52,533
Total deposits							44,222			42,517
Shareholders' equity							3,974			4,461
Adjusted shareholders' equity (1)							5,578			5,385
ASSET QUALITY
($ in thousands)
Allowance for credit losses on loans:							$	290,258		$	280,221
As a percentage of period-end loans							1.23 %			1.31 %
Net charge-offs:							23,632			27,431
Annualized as a percentage of average loans							0.14 %			0.17 %
Non-accrual loans/loans held for sale:							$	63,704		$	44,778
As a percentage of total loans and loans held for sale							0.27 %			0.21 %
As a percentage of total assets							0.12 %			0.09
CONSOLIDATED CAPITAL RATIOS
Common Equity Tier 1 Risk-Based Capital Ratio							13.76 %			14.14 %
Tier 1 Risk-Based Capital Ratio							14.18			14.59
Total Risk-Based Capital Ratio							15.50			16.04
Leverage Ratio							8.98			9.00
Equity to Assets Ratio (period-end)							7.29			8.49
Equity to Assets Ratio (average)							8.67			8.06
(1) Shareholders' equity excluding accumulated other comprehensive income (loss).

 

Cullen/Frost Bankers, Inc.
TAXABLE-EQUIVALENT YIELD/COST AND AVERAGE BALANCES (UNAUDITED)
	2026								2025
	3rd Qtr			2nd Qtr			1st Qtr			4th Qtr			3rd Qtr
TAXABLE-EQUIVALENT YIELD/COST(1)
Earning Assets:
Interest-bearing deposits	3.68 %			3.65 %			3.64 %			3.93 %			4.36 %
Federal funds sold	4.24			3.97			3.97			4.28			4.74
Resell agreements	—			—			4.06			4.13			4.58
Securities(2)	4.09			3.96			3.85			3.82			3.85
Loans, net of unearned discounts	6.27			6.17			6.23			6.43			6.61
Total earning assets	5.03			4.92			4.88			4.94			5.11
Interest-Bearing Liabilities:
Interest-bearing deposits:
Savings and interest checking	0.15 %			0.15 %			0.16 %			0.19 %			0.24 %
Money market deposit accounts	2.12			1.92			1.88			2.08			2.28
Time accounts	3.30			3.24			3.14			3.45			3.79
Total interest-bearing deposits	1.73			1.61			1.55			1.75			1.94
Total deposits	1.16			1.08			1.04			1.17			1.30
Federal funds purchased	3.68			3.66			3.62			3.94			4.34
Repurchase agreements	2.67			2.65			2.70			2.87			3.17
Junior subordinated deferrable interest debentures	5.71			5.60			5.63			6.05			6.30
Subordinated notes payable and other notes	4.69			4.69			4.69			4.69			4.69
Total interest-bearing liabilities	1.89			1.77			1.72			1.92			2.13
Net interest spread	3.14			3.15			3.16			3.02			2.98
Net interest income to total average earning assets	3.78			3.75			3.74			3.66			3.69
AVERAGE BALANCES
($ in millions)
Assets:
Interest-bearing deposits	$	5,830		$	5,808		$	6,752		$	8,431		$	6,816
Federal funds sold	1			4			4			2			3
Resell agreements	—			—			8			10			10
Securities - carrying value(2)	21,241			20,648			19,853			19,929			20,213
Securities - amortized cost(2)	22,517			21,766			20,825			20,995			21,622
Loans, net of unearned discount	23,378			22,622			22,011			21,661			21,452
Total earning assets	$ 50,450			$ 49,082			$ 48,628			$ 50,033			$ 48,492
Liabilities:
Interest-bearing deposits:
Savings and interest checking	$	9,827		$	9,938		$	10,036		$	9,899		$	9,689
Money market deposit accounts	12,746			12,145			11,900			12,619			11,817
Time accounts	6,645			6,509			6,346			6,554			6,726
Total interest-bearing deposits	29,219			28,592			28,282			29,072			28,232
Total deposits	43,579			42,620			42,226			43,340			42,071
Federal funds purchased	58			24			24			27			29
Repurchase agreements	4,850			4,379			4,160			4,586			4,593
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	$	34,350		$	33,219		$	32,689		$	33,909		$	33,077
(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

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SOURCE Cullen/Frost Bankers, Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Cullen/Frost's third-quarter 2026 earnings?

Cullen/Frost reported $178.5 million in net income available to common shareholders and $2.84 per diluted common share. The comparable third-quarter 2025 figures were $172.7 million and $2.67 per diluted common share.

What fourth-quarter 2026 dividends did Cullen/Frost declare, and when are they payable?

Cullen/Frost declared $1.03 per common share and $11.125 per Series B preferred share, equivalent to $0.278125 per depositary share. Both dividends are payable December 15, 2026, to shareholders of record November 30, 2026.