Cullen/Frost Bankers (CFR) Q4 2025 earnings summary

Executive summary

• Second quarter 2025 net income was $155.3 million ($2.39 per share), up from $143.8 million ($2.21 per share) year-over-year.

• Fourth quarter 2025 net income available to common shareholders rose 7.4% year-over-year to $164.6 million, with EPS of $2.56.

• Full-year 2025 net income available to common shareholders increased 11.5% to $641.9 million, with EPS of $9.92.

• Headquartered in San Antonio, Texas, with a branch footprint exclusively in Texas and a focus on relationship banking.

• Recognized as the highest ranked retail bank in Texas for 17 consecutive years and recipient of multiple awards for excellence.

Financial highlights

• Q4 2025 net interest income (taxable-equivalent) was $471.2 million, up 8.6% year-over-year; net interest margin was 3.66%.

• Average loans for Q4 2025 increased 6.5% year-over-year to $21.7 billion; average deposits rose 3.5% to $43.3 billion.

• Consumer real estate loans outstanding grew 22% year-over-year to $3.3 billion.

• 15-year total return of 224.4%, outperforming the S&P 500 Regional Bank Index.

• 32 consecutive years of dividend increases, with dividends reaching $3.95 per share in 2025.

Outlook and guidance

• Full-year 2025 net interest income growth expected at 6%-7%, up from prior 5%-7% guidance.

• Non-interest income growth guidance raised to 3.5%-4.5%; non-interest expense growth expected in high single digits.

• Management expressed confidence in continued momentum into 2026, emphasizing the scalability of the organic growth strategy.

• Organic expansion strategy expected to provide a positive income stream starting in 2026.

• Average loan growth expected in mid- to high-single digits; deposit growth projected at 2%-3%.