Cullen/frost Bankers Stock Earnings Reports

Cullen/Frost reported strong first-quarter 2026 results with net income of $169.3 million (up 13.4% YoY) and EPS of $2.65 (up 15.2% YoY). Key operating metrics: ROA was 1.32% and ROTCE was 15.15%. Average loans increased to $22.0 billion from $20.8 billion a year ago and average deposits were $42.2 billion (slightly above prior-year). Consumer banking remains a competitive strength — Frost won the J.D. Power Texas consumer banking satisfaction award for the 17th consecutive year, consumer checking households rose 5.3% YoY, and consumer loans grew 19% YoY with mortgage balances up $124 million in Q1 to $719 million. The company’s organic branch expansion continues to drive growth: expanded branches now represent $2.9 billion in loans, $3.6 billion in deposits and ~95,000 new households; expansion produced $0.14 of EPS accretion (5.6%) in Q1 and the bank plans 10–12 additional branch openings in 2026. Pipeline strength is a standout — a $6.8 billion growth pipeline (up 55% QoQ) and a ~ $2.0 billion 90-day weighted pipeline (up 38% QoQ), both at record levels. Credit metrics remain healthy: nonperforming assets $73 million (33 bps of loans), net charge-offs $5.8 million (11 bps annualized), and total problem loans $989 million with increases concentrated in risk grade 10 and expected large resolutions over upcoming quarters. Net interest margin improved to 3.74% (up 8 bps QoQ); the investment portfolio averaged $19.9 billion with recent purchases across Treasuries, Agency MBS and municipals and a tax-equivalent yield of 3.85%. Deposits were seasonally down QoQ (~$1.1 billion) and funding costs on interest-bearing deposits and customer repos declined. Management’s current full-year outlook assumes a 125-basis-point Fed funds cut in Q4 2026. The call was cut short due to technical difficulties before a full Q&A; look for a rescheduled call or press release for further detail.