olivlawolivlaw

olivLaw · US equity research

Cullen/Frost Bankers, Inc. CFR

National Commercial Banks · SIC 6021 · Vertical: National Commercial Banks (SIC 6021)

159.69USD+0.35% · 1 dayClose 04 Nov 2026

Cullen/Frost Bankers, Inc. is a financial holding company based in San Antonio, Texas, whose main operating business is Frost Bank, with assets of 53.9 billion USD at June 30, 2026. The company matters now because it combines organic loan and deposit growth with rising net interest income in the second quarter of 2026.

The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).

At the close of 04 Nov 2026, Cullen/Frost Bankers, Inc. (CFR) stock was 159.69 USD (+0.35% on the day), with market capitalisation 9.9 bn USD, P/E 14.8 on diluted EPS of 10.80 USD over the last 12 months, dividend yield 2.54%, beta 0.84, 52-week range 119.85–170.08 USD. Latest reported quarter (Q3 2026): revenue of 603.8 m USD (+6.4% YoY), net income of 180.2 m USD (+3.3% YoY), diluted EPS 2.84 USD.

Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.

Market cap
9.9 bn USD
shares as of 27 Oct 2026
P/E (TTM)
14.8
Diluted EPS TTM 10.80 · TTM to 30 Sept 2026
E/P (TTM)
6.77%
TTM to 30 Sept 2026
Dividend yield
2.54%
DPS 12m 4.06
Beta (2y)
0.84
Volatility (1y) 20%
52-week range
119.85170.08

Price history

Loading chart…

Technical reading

RSI (14)
58.5
strong (55–70)
Bollinger (20, 2)
149.76 – 161.64
in the upper half of the band · %B 0.84 · band width 7.6%
SMA 50 / 200
157.48 / 149.15
uptrend (price > SMA50 > SMA200)
MACD (12, 26, 9)
0.82 / 0.15
MACD above signal

Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).

Performance

CompanyS&P 500vs S&P 500Vertical median
1 month+3.8%−2.0%+5.8 pp—
3 months−3.9%−2.2%−1.7 pp—
6 months+13.5%+4.3%+9.2 pp—
Year to date+26.1%+10.6%+15.5 pp—
1 year+29.5%+10.5%+19.0 pp+19.7%
3 years+65.3%+73.7%−8.4 pp+71.5%
5 years+18.2%+61.7%−43.5 pp—
Max drawdown (1y)
−12.0%
09 Feb 2026 → 18 Mar 2026
Max drawdown (5y)
−47.3%
08 Nov 2022 → 25 Oct 2023
Compound annual growth (5y)
+3.4%
S&P 500 +10.1%

Price returns, dividends excluded.

Quarterly results

Latest quarter: Q3 2026 · 30 Sept 2026

Revenue
603.8 m USD
+6.4% YoY
Net income
180.2 m USD
+3.3% YoY
Diluted EPS
2.84
+6.4% YoY
net / operating
29.8% / unavailable

Quarterly margins

Quarterly statements · USD

Fiscal yearQ4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26Q3 '26
Revenue536.3 m540.2 m546.9 m567.3 m580.9 m574.8 m576.0 m603.8 m
Depreciation & amortisation21.4 m21.9 m21.8 m ≈22.2 m ≈21.8 m22.2 m22.4 m ≈22.8 m ≈
Interest expense—168.9 m172.4 m178.5 m—139.4 m147.0 m163.9 m
Pre-tax income184.0 m179.1 m186.6 m208.0 m198.0 m202.4 m204.5 m214.5 m
Income tax29.2 m28.2 m29.6 m33.6 m31.7 m31.4 m32.5 m34.3 m
Net income154.9 m150.9 m157.0 m174.4 m166.3 m171.0 m172.1 m180.2 m
Diluted EPS2.41 ≈2.302.392.672.61 ≈2.652.702.84
Operating cash flow64.3 m-296.1 m140.8 m ≈248.6 m ≈180.7 m237.3 m52.9 m ≈292.6 m ≈
Capex37.6 m41.0 m26.3 m ≈36.9 m ≈42.5 m38.6 m60.1 m ≈44.0 m ≈
Dividends paid61.5 m61.7 m64.9 m ≈64.7 m ≈64.1 m64.0 m64.8 m ≈65.0 m ≈
Share repurchases8.6 m2.6 m76.0 k ≈69.8 m ≈85.4 m72.3 m90.9 m ≈15.2 m ≈

≈ derived quarter (cumulative difference / share-days average)

E/P over time

E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.

Today's P/E sits at the 55 percentile of its own 40-quarter history (min 8.7, median 14.2, max 21.2; quarters with earnings only).

Fiscal years

Fiscal year20182019202020212022202320242025
Revenue1.3 bn1.4 bn1.4 bn1.4 bn1.7 bn2.0 bn2.1 bn2.2 bn
Revenue YoY+8.8%+4.5%+5.4%−4.8%+23.7%+17.2%+3.8%+8.3%
Net income454.9 m443.6 m331.2 m443.1 m579.2 m598.0 m582.5 m648.6 m
Net income YoY+24.9%−2.5%−25.3%+33.8%+30.7%+3.3%−2.6%+11.3%
Diluted EPS6.906.845.106.768.819.108.879.92
Diluted EPS YoY+25.2%−0.9%−25.4%+32.5%+30.3%+3.3%−2.5%+11.8%
net %34.7%32.4%23.0%32.3%34.1%30.1%28.2%29.0%
Free cash flow483.1 m427.4 m428.8 m582.4 m620.1 m320.2 m861.8 m127.3 m

Reported results vs expectations

Loading…

Balance sheet & financial health

Fiscal year 2025 · 31 Dec 2025

Cash
8.9 bn USD
Financial debt
unavailable USD
Net debt
unavailable USD
Equity
4.6 bn USD
Total assets
53.0 bn USD
Debt / equity
unavailable
Current ratio
unavailable
ROE
15.3%
ROA
1.2%
FCF margin
5.7%

Financial statements (source on every figure)

Revenue and net income (USD)

Income statement · USD

Net interest income
2023
1.6 bn
2024
1.6 bn
2025
1.7 bn

SEC (XBRL)· 05 Feb 2026verified

Net fee income
2023
428.5 m
2024
459.1 m
2025
499.1 m

SEC (XBRL)· 05 Feb 2026verified

Non-interest expense
2023
1.2 bn
2024
1.3 bn
2025
1.4 bn

SEC (XBRL)· 05 Feb 2026verified

Pre-tax income
2023
712.4 m
2024
696.0 m
2025
771.7 m

SEC (XBRL)· 05 Feb 2026verified

Net income
2023
598.0 m
2024
582.5 m
2025
648.6 m

SEC (XBRL)· 05 Feb 2026verified

Diluted EPS
2023
9.10
2024
8.87
2025
9.92

SEC (XBRL)· 05 Feb 2026verified

Dividend per share
2023
3.58
2024
3.74
2025
3.95

SEC (XBRL)· 05 Feb 2026verified

Balance sheet · USD

Cash
2023
8.7 bn
2024
10.2 bn
2025
8.9 bn

SEC (XBRL)· 05 Feb 2026verified

Loans
2023
18.6 bn
2024
20.5 bn
2025
21.6 bn

SEC (XBRL)· 05 Feb 2026verified

Total assets
2023
50.8 bn
2024
52.5 bn
2025
53.0 bn

SEC (XBRL)· 05 Feb 2026verified

Deposits
2023
41.9 bn
2024
42.7 bn
2025
42.9 bn

SEC (XBRL)· 05 Feb 2026verified

Total liabilities
2023
47.1 bn
2024
48.6 bn
2025
48.5 bn

SEC (XBRL)· 05 Feb 2026verified

Equity
2023
3.7 bn †
2024
3.9 bn †
2025
4.6 bn †

SEC (XBRL)· 05 Feb 2026verified

Cash flow · USD

Dividends paid
2023
232.3 m
2024
242.4 m
2025
255.4 m

SEC (XBRL)· 05 Feb 2026verified

Share repurchases
2023
42.7 m
2024
60.9 m
2025
157.8 m

SEC (XBRL)· 05 Feb 2026verified

Computed indicators

Growth

Revenue growth (YoY)
8.3%
computed by olivLawFY 2025
Revenue CAGR 3Y
9.6%
computed by olivLawFY 2022 → FY 2025
Revenue CAGR 5Y
9.2%
computed by olivLawFY 2020 → FY 2025
Net income growth (YoY)
11.3%
computed by olivLawFY 2025
Net income CAGR 3Y
3.8%
computed by olivLawFY 2022 → FY 2025
Net income CAGR 5Y
14.4%
computed by olivLawFY 2020 → FY 2025
EPS growth (YoY)
11.8%
computed by olivLawFY 2025
EPS CAGR 3Y
4.0%
computed by olivLawFY 2022 → FY 2025
EPS CAGR 5Y
14.2%
computed by olivLawFY 2020 → FY 2025

Profitability

Net margin
29.5%
computed by olivLawTTM to 30 Sept 2026

Returns

ROE
16.3%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
ROA
1.3%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
Payout ratio (EPS)
37.6%
computed by olivLawTTM to 30 Sept 2026

Market and valuation

Market capitalisation
9.9 bn USD
computed by olivLawbalance sheet at 30 Sept 2026
Market cap / net income TTM
14.4x
computed by olivLawTTM to 30 Sept 2026
P/E (TTM)
14.8x
computed by olivLawTTM to 30 Sept 2026
Earnings yield
6.8%
computed by olivLawTTM to 30 Sept 2026
P/B
2.5x
computed by olivLawbalance sheet at 30 Sept 2026
P/S
4.3x
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
Dividend yield
2.5%
computed by olivLawTTM to 30 Sept 2026
Shareholder yield (distributions)
5.3%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026

Banking

Net interest margin
3.4%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
Cost-to-income
63.2%
computed by olivLawTTM to 30 Sept 2026
Loan-to-deposit
52.8%
computed by olivLawbalance sheet at 30 Sept 2026
NPL ratio
unavailable
input data missing
CET1 ratio
unavailable
input data missing
Cost of risk
unavailable
input data missing

32 indicators that do not apply to the sector.

Valuation

olivLaw classification

Unattractive profile

Score: 48 / 100

A scoring methodology on indicators and valuation, not investment advice.

(margin_of_safety <= -0.25 & agreement in ['high', 'medium'])

Closing price

159.69 USD

04 Nov 2026Source: olivLaw, closing series

Market cap: 9.9 bn USD

Key indicators

Market capitalisation
9.9 bn USD
computed by olivLawbalance sheet at 30 Sept 2026
P/E (TTM)
14.8x
computed by olivLawTTM to 30 Sept 2026
P/B
2.5x
computed by olivLawbalance sheet at 30 Sept 2026
ROE
16.3%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
Net margin
29.5%
computed by olivLawTTM to 30 Sept 2026
Revenue growth (YoY)
8.3%
computed by olivLawFY 2025
Dividend yield
2.5%
computed by olivLawTTM to 30 Sept 2026

Coverage and freshness

15/20 reporting lines present
Latest full fiscal year: 2025
Latest reported period: 30 Sept 2026
Latest balance sheet date: 30 Sept 2026
Share count (cover of the latest filing), as of: 27 Oct 2026
Source: SEC (XBRL)published 29 Oct 2026
verified 2373derived 228

Score by group

  • Valuation10
  • Returns44
  • Quality59
  • Balance sheet100
  • Growth61

Estimated value range

Low
72.63
USD per share
Mid
78.50
USD per share
High
88.57
USD per share
Price: 159.69 USD
The price is above the range
Potential to the central value: -50.8% (value / price − 1)
Margin of safety: -103.4% (1 − price / value)
Agreement between methods: medium · 5 methods used · 4 independent bases

The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 51.91 – 152.61 USD.

Valuation assumptions are editorial choices, not measured; beta is not measured.

Method ranges (USD per share)

— — Mid · ▏ Price

Valuation methods

  • Residual income72.63 – 75.93 (Mid 74.25)
  • Justified P/B113.48 – 152.61 (Mid 130.17)
  • Dividend discount (DDM)51.91 – 69.81 (Mid 59.54)
  • Peers: P/E115.97 – 131.88 (Mid 125.65)
    30 companies used · median multiple 11.6x · quartiles 10.7x – 12.2x
    ASRV, BAC, CAC, CASH, CFBK, CHCO, COF, DCBG, FHN, FULT, FUNC, HAFC, HBAN, JPM, KEY, LCNB, MRBK, NBTB, NKSH, ONB, PNC, RF, SFST, SHBI, TBBK, USB, WAFD, WFC, WSFS, ZION
  • Peers: P/B64.94 – 88.57 (Mid 78.50)
    34 companies used · median multiple 1.2x · quartiles 1.0x – 1.4x
    ASRV, BAC, BANC, C, CAC, CARE, CASH, CFBK, COF, DCBG, FHN, FULT, FUNC, HAFC, HBAN, KEY, LCNB, MRBK, NBHC, NBTB, NKSH, ONB, PNC, PRK, RF, SFST, SHBI, SNUS-PH, UBS, USB, WAFD, WFC, WSFS, ZION
Multiple comparisons use the SIC vertical: National Commercial Banks (SIC 6021)

Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.

Assumptions (illustrative, editorial)

Risk-free rate
4.3%
Equity risk premium
5.0%
Beta (default)
1.00
Cost of equity
9.3%
Terminal growth
2.5%

Factor scorecard

Unattractive profile · Score 48/100

FactorValueScoreWeight used
ROE · Quality16.3%85 (vs peers)19%
ROA · Quality1.3%63 (on a fixed band)7%
Cost-to-income · Quality63.2%7 (on a fixed band)12%
Net interest margin · Quality3.4%75 (on a fixed band)7%
EPS CAGR 3Y · Growth4.0%34 (on a fixed band)10%
Revenue CAGR 3Y · Growth9.6%96 (on a fixed band)7%
NPL ratio · Balance sheetunavailableunavailable—
Cost of risk · Balance sheetunavailableunavailable—
Loan-to-deposit · Balance sheet52.8%100 (on a fixed band)5%
P/B · Valuation2.5x5 (vs peers)12%
P/E (TTM) · Valuation14.8x14 (vs peers)12%
Dividend yield · Returns2.5%44 (vs peers)10%

Factors without a value were dropped; the remaining weights were renormalised.

Score groups

  • Balance sheet· partial100/100 · 1/3 factors with a value
  • Growth61/100 · 2/2 factors with a value
  • Quality59/100 · 4/4 factors with a value
  • Returns44/100 · 1/1 factors with a value
  • Valuation10/100 · 2/2 factors with a value

A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.

Memo

Cullen/Frost Bankers, Inc. (CFR). Latest full fiscal year: 2025; data up to 2026-09-30.

Figures computed from the financial statements: net interest income 1.7 bn USD in 2025; YoY growth 8.3%; net margin 29.5%; ROE 16.3%.

The estimated value range is 72.63–88.57 USD per share (median of 5 methods, agreement: medium); assumptions are illustrative. Against the central value of 78.50 USD, the price of 159.69 USD leaves a potential of -50.8% (value / price − 1) and a margin of safety of -103.4% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.

olivLaw score 48/100, methodological classification: unattractive profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: balance. Not investment advice.

Text generated deterministically from the figures shown; no language model. Not investment advice.

What supports the thesis

  • ROE: 16.3%
  • Net interest margin: 3.4%
  • Revenue CAGR 3Y: 9.6%
  • Loan-to-deposit: 52.8%

What contradicts it

  • Cost-to-income: 63.2%
  • P/B: 2.5x
  • P/E (TTM): 14.8x
  • The price is above the estimated value range

Not assessed (insufficient data or a ratio without meaning): NPL ratio, Cost of risk.

Versus the vertical median

National Commercial Banks (SIC 6021) · same industry (4-digit SIC) · compared with 39 companies

Multiples and returns vs the median

P/E
14.8x
vertical median 11.7x
above median (+26.2%)
EV/EBITDA
—
vertical median —
P/S
4.3x
vertical median 14.0x
below median (−69.7%)
P/B
2.5x
vertical median 1.2x
above median (+101.2%)
ROE
16.3%
vertical median 11.3%
above median (+45.3%)
Net margin
29.5%
vertical median 110.1%
below median (−73.2%)
EBIT margin
—
vertical median —
Revenue YoY
8.3%
vertical median 6.9%
above median (+20.3%)
Net debt/EBITDA
—
vertical median —
Dividend yield
2.5%
vertical median 2.7%
below median (−6.6%)

Price rebased to 100 (monthly, 5 years)

Companies in the vertical

Market capP/EROENet marginRevenue YoY1A / 3A
JPMJpmorgan Chase & Co897.5 bn14.118.0%36.2%+2.8%+8% / +117%
BACBofA Finance LLC342.7 bn11.710.8%26.8%+6.8%−7% / +63%
WFCWells Fargo & Company256.7 bn11.912.9%—−1.6%−0% / +92%
CCitigroup Inc214.7 bn17.66.8%16.8%+5.6%+18% / +166%
UBSUBS Group AG169.3 bn21.58.9%—+7.0%+31% / +79%
COFCapital One Financial Corp125.5 bn12.29.7%17.2%+36.6%−5% / +87%
USBUs Bancorp \de\93.3 bn11.812.7%27.5%+4.4%+22% / +57%
PNCPNC Financial Services Group, Inc.91.0 bn11.913.1%31.1%+7.2%+20% / +71%
HBANHuntington Bancshares Incorporated32.0 bn12.89.1%133.3%+6.4%−3% / +41%
RFRegions Financial Corporation24.4 bn11.511.9%—+23.8%+12% / +71%
KEYKeyCorp22.4 bn11.511.2%26.6%+62.7%+16% / +71%
FHNFirst Horizon Corp11.2 bn11.311.6%29.9%+7.2%+6% / +86%
SNUS-PHSantander Holdings USA, Inc.11.0 bn6.210.8%—unavailableunavailable / unavailable
CFRCullen/Frost Bankers, Inc.9.9 bn14.816.3%29.5%+8.3%+30% / +65%
ONBOld National Bancorp9.8 bn10.511.5%—+6.1%+19% / +74%
ZIONZions Bancorporation, National Association9.7 bn8.516.4%168.7%+3.6%+25% / +87%
FULTFulton Financial Corp4.6 bn11.611.1%137.0%−6.5%+34% / +71%
WSFSWsfs Financial Corporation4.1 bn12.812.4%—+50.2%+45% / +110%
PRKPark National Corporation3.3 bn16.411.0%25.8%+2.9%+19% / +65%
BANCBanc Of California, Inc.2.9 bn—-0.7%-1.4%−3.8%+1% / +61%
NBTBNbt Bancorp Inc2.8 bn13.311.4%117.1%+10.4%+30% / +52%
WAFDWaFd, Inc.2.2 bn9.48.5%810.8%+7.8%−5% / +13%
CHCOCity Holding Company2.0 bn15.816.8%177.4%+3.2%+19% / +50%
TBBKThe Bancorp, Inc.1.9 bn8.929.6%164.3%+20.8%−26% / +21%
NBHCNational Bank Holdings Corp1.7 bn30.33.6%110.1%+2.9%+3% / +16%

1- and 3-year price returns: for CFR from daily closes (the same as the performance table), for the other companies from month-end closes.

olivLaw engine forecast

The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.

The engine has no published run for this company yet.

Valuation scenarios (editable assumptions)

Illustrative scenarios

Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.

Bear
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Base
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Bull
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Nothing is saved.

Estimated price (USD)

Estimated priceBearBaseBull
1 years
101.88
Total return -34% · Per year -34%
179.70
Total return 15% · Per year 15%
270.09
Total return 73% · Per year 73%
3 years
109.35
Total return -25% · Per year -9%
216.00
Total return 45% · Per year 13%
354.95
Total return 134% · Per year 33%
5 years
117.37
Total return -15% · Per year -3%
259.64
Total return 80% · Per year 12%
466.46
Total return 215% · Per year 26%
What moves the 3-year price the most
  • Exit P/E± 54.00
  • Net margin± 37.80
  • Annual revenue growth± 29.57
  • Annual dilution± 3.18

AI analysis

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

Possibly outdated: the newest document it read is from 30 Jul 2026; since then the company filed 8-K (29 Oct 2026 · results), 10-Q (29 Oct 2026).

In brief

Cullen/Frost Bankers, Inc. is a financial holding company based in San Antonio, Texas, whose main operating business is Frost Bank, with assets of 53.9 billion USD at June 30, 2026 3. The company matters now because it combines organic loan and deposit growth with rising net interest income in the second quarter of 2026 3.

SWOT

Strengths

  • The company has a broad base of commercial customers and a densely present local network across Texas with well-defined regions.
  • Capital ratios remain above well-capitalized levels, and return on average assets improved in the first half of 2026 3.
  • Fee income from wealth management and deposit account service charges provides diversification away from interest income.

Weaknesses

  • Dependence on net interest income makes profit sensitive to changes in interest rates.
  • A significant share of deposits is uninsured, which could lead to rapid withdrawals during periods of uncertainty.
  • The loan portfolio is concentrated in commercial lending that carries more risk than residential mortgages.

Opportunities

  • Opening new locations in Texas metropolitan areas could attract new customers and additional deposits.
  • Wealth management and brokerage services could grow if capital markets remain stable.
  • Acquisitions of financial institutions are evaluated by management, though no timetable has been announced.

Threats

  • Geopolitical tensions and energy price volatility could affect energy-sector clients and market liquidity.
  • Competition from large banks and fintech firms could compress margins or raise the cost of gathering deposits.
  • Risks in commercial real estate, especially office properties, could lead to higher credit losses.

Risks

  • Interest rate riskhigh

    Unexpected rate changes could reduce net interest income if repricing of assets and liabilities is uneven 1.

  • Commercial credit riskhigh

    Concentration of loans in commercial, energy and real estate sectors could raise non-performing loans if the economy weakens 1.

  • Liquidity riskmedium

    Uninsured deposits can be withdrawn quickly, particularly if negative news about the bank or the sector emerges 1.

  • Oil price riskmedium

    Volatile oil prices could affect energy clients and the Texas economy, which could lead to credit losses 1.

  • Geopolitical and trade riskmedium

    Military conflicts and changes in trade policy could strain markets, supply chains and borrowers' repayment capacity 2.

Investment thesis

What would need to be true (bull case)

  • If loan and deposit growth from the second quarter of 2026 is sustained, interest income could keep rising and earnings per share could grow 3.
  • Solid capital and the share repurchase program could support shareholder returns if conditions stay favorable 3.
  • Expanding the branch network and growing the number of customer households could strengthen the bank's position in Texas markets 3.

What would break the thesis

  • If interest rates fall faster than expected, net interest income could come under pressure, especially if deposits reprice more slowly 1.
  • Higher provisions and non-accrual loans, which rose in the second quarter, could continue if commercial or energy sectors deteriorate 3.
  • Rising salary and technology costs could reduce operating margins if revenue does not grow at the same pace 3.

What to watch

  • Deciziile Rezervei Federale privind rata fondurilor federale2027
  • Trend in net interest margin and asset repricingQ3 2026
  • Level of non-accrual loans and credit loss provisionsQ3 2026
  • Pace of deposit growth and the share of uninsured depositsQ3 2026
  • Federal Reserve decisions on the federal funds target rate2027

Products, market & competition

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

Possibly outdated: the newest document it read is from 30 Jul 2026; since then the company filed 8-K (29 Oct 2026 · results), 10-Q (29 Oct 2026).

The business

Cullen/Frost Bankers, Inc., incorporated as a Texas corporation in 1977, is a financial holding and bank holding company offering a broad range of products through its subsidiaries in numerous Texas markets 1. Frost Bank, its principal and sole banking subsidiary, operates through approximately 204 financial centers in the Austin, Dallas, Fort Worth, Gulf Coast, Houston, Permian Basin and San Antonio regions, with approximately 1,760 ATMs in Texas 1. The company's philosophy emphasizes long-term relationships, top quality service and safe, sound assets, while it also pursues growth in fee-based income 1.

Lending is concentrated on commercial customers. As of December 31, 2025, approximately 80.9% of the loan portfolio consisted of commercial and industrial, energy, construction and commercial real estate mortgage loans 1. The company states it is not dependent on any single industry or customer, which reduces concentration risk by industry 1.

The operating structure has two reportable segments, Banking and Frost Wealth Advisors, supplemented by insurance, brokerage, investment management and leasing subsidiaries 1. Net interest income remains the largest revenue source, representing 77.7% of total revenue in 2025 1.

Segments

Banking

The Banking segment covers lending and deposits for businesses and individuals, along with treasury management, global trade and capital markets services for institutional and public sector clients 1. It is the main generator of net interest income for the group 1.

Frost Wealth Advisors

This segment brings together trust and asset management services for individuals, benefit plans and foundations, with managed and custody assets running into tens of billions of dollars at the end of 2025 1. Its revenues partly depend on capital market conditions, since investment management fees are based on the market value of client assets 3.

Trends

  • Declining interest ratesmixed

    Federal Reserve projections point to possible reductions in the federal funds rate in 2026 and 2027, which could reduce interest income if assets reprice faster than liabilities 1. The company warns the effect depends on differing repricing speeds of loans and deposits 1.

  • Commercial loan growthtailwind

    Average loans rose 7.4% in the second quarter of 2026, and the company opened new financial centers in Dallas, Fort Worth, Austin and San Antonio 3. If this momentum holds, it could support interest income 3.

  • Geopolitical tensions and energyheadwind

    The military conflict between the United States and Iran and energy price volatility could affect funding, liquidity and credit quality, especially in energy-sensitive sectors 2. The company includes these risks in its forward-looking statements 2.

  • Trade policy and tariffsheadwind

    A February 2026 Supreme Court ruling invalidated certain tariffs, but uncertainty remains about refunds and new trade measures 2. If these measures weigh on trade and manufacturing customers, credit losses could rise 2.

Competitive position

The company notes that some competitors have greater resources, higher lending limits and services Frost does not offer directly 1. It competes mainly on customer service, loan and deposit rates, and the availability of trust, brokerage and insurance products 1.

The Texas market also attracts non-bank competitors, such as fintech companies and commercial finance firms, which can pressure deposit gathering 1. The company says that despite intense competition, growth trends in its markets remain strong 3.

  • Large commercial banks in Texas

    Competitors with greater resources that can offer higher lending limits and additional services, according to the company report.

  • Savings institutions and credit unions

    Attract deposits and retail customers, competing with the bank's consumer division.

  • Brokerage and asset management firms

    Compete with the investment and wealth management services offered through Frost Wealth Advisors.

  • Fintech and wealthtech companies

    New entrants into the deposit and digital financial services market, per the competition description in the report.

News & filings

In the press

No news in our archive over the last 180 days.

SEC filings

Sources

  1. [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Cullen/Frost Bankers, Inc. · 05 Feb 2026
  2. [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Cullen/Frost Bankers, Inc. · 30 Jul 2026
  3. [3] Form 8-K, results release (exhibit 99.1) · SEC / Cullen/Frost Bankers, Inc. · 30 Jul 2026

Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.

Cullen/Frost Bankers, Inc. (CFR): stock, results, valuation and forecast · olivLaw