Cullen/Frost Bankers (CFR) Q4 2025 earnings summary

Executive summary

• Net income for Q2 2025 was $155.3 million ($2.39 per share), rising to $164.6 million ($2.56 per share) in Q4, with full-year 2025 net income at $641.9 million and EPS of $9.92.

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

• Expansion strategy continued with the opening of the 200th location and 10 new financial centers in 2025, driving significant growth in loans, deposits, and new households.

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

• Market capitalization of $8.1 billion and total assets of $53.0 billion as of December 31, 2025.

Financial highlights

• Average deposits rose 3.1% year-over-year to $41.8 billion in Q2 and 3.5% to $43.3 billion in Q4; average loans grew 7.2% to $21.1 billion in Q2 and 6.5% to $21.7 billion in Q4.

• Net interest margin increased to 3.67% in Q2 and 3.66% in Q4 2025.

• Consumer real estate loans grew 22% year-over-year to $3.3 billion; consumer loans rose from 11.6% to 19.1% of total loans from 2019 to 2025.

• 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 guidance assumes two 25 bps Fed rate cuts in September and October, with net interest income growth expected at 6%-7% and non-interest income growth revised up to 3.5%-4.5%.

• Net interest margin projected to improve 12-15 bps over 2024's 3.53%.

• Organic expansion strategy expected to provide a positive income stream starting in 2026, with meaningful growth anticipated.

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