Cullen/Frost Bankers (CFR) Q2 2026 earnings summary

Executive summary

• Net income for Q2 2026 was $170.4 million, up 9.7% year-over-year, with EPS rising to $2.70; return on average assets was 1.30% and return on average common equity was 15.41%.

• The institution operates 210 financial centers in Texas, with a market capitalization of $9.7 billion and total assets of $53.9 billion as of June 30, 2026.

• Customer households grew by 5.9% year-over-year, with organic growth and digital transformation supporting expansion.

• Opened four new financial centers in Q2, totaling seven new locations year-to-date, and maintains the largest ATM network in Texas.

• Recognized for customer satisfaction, winning top rankings in retail and business banking for multiple years.

Financial highlights

• Net interest income for Q2 2026 was $470.1 million, up 4.3% year-over-year; non-interest income rose 9.4% to $128.3 million, led by trust and investment management fees.

• Net interest margin for Q2 2026 was 3.75%, up from 3.67% in Q2 2025.

• Non-interest expense for Q2 2026 was $361.7 million, up 4.2% year-over-year, mainly from higher salaries, benefits, and technology costs.

• Credit loss expense for Q2 2026 was $9.8 million, with net charge-offs of $9.5 million.

• Service charges on deposit accounts increased 17.2% year-over-year.

Outlook and guidance

• Full-year 2026 net interest income growth expected at 4.75%-5.25%, with net interest margin projected to improve by 10-13 basis points over 2025.

• Average loan growth guidance raised to 7%-8%; deposit growth guidance maintained at 2%-3%.

• Non-interest income growth outlook increased to 8.5%; non-interest expense growth guidance lowered to 4.5%-5%.

• Net charge-offs expected in the range of 15-20 basis points of average loans for 2026.

• Management expects continued growth in net interest income, supported by a stable deposit base and loan growth, but notes potential headwinds from interest rate volatility and competitive deposit markets.