olivLaw · US equity research
Cullen/Frost Bankers, Inc. CFR
National Commercial Banks · SIC 6021 · Vertical: National Commercial Banks (SIC 6021)
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The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).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.
Price history
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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
| Company | S&P 500 | vs S&P 500 | Vertical 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 | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 30 Sept 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 536.3 m | 540.2 m | 546.9 m | 567.3 m | 580.9 m | 574.8 m | 576.0 m | 603.8 m |
| Depreciation & amortisation | 21.4 m | 21.9 m | 21.8 m ≈ | 22.2 m ≈ | 21.8 m | 22.2 m | 22.4 m ≈ | 22.8 m ≈ |
| Interest expense | — | 168.9 m | 172.4 m | 178.5 m | — | 139.4 m | 147.0 m | 163.9 m |
| Pre-tax income | 184.0 m | 179.1 m | 186.6 m | 208.0 m | 198.0 m | 202.4 m | 204.5 m | 214.5 m |
| Income tax | 29.2 m | 28.2 m | 29.6 m | 33.6 m | 31.7 m | 31.4 m | 32.5 m | 34.3 m |
| Net income | 154.9 m | 150.9 m | 157.0 m | 174.4 m | 166.3 m | 171.0 m | 172.1 m | 180.2 m |
| Diluted EPS | 2.41 ≈ | 2.30 | 2.39 | 2.67 | 2.61 ≈ | 2.65 | 2.70 | 2.84 |
| Operating cash flow | 64.3 m | -296.1 m | 140.8 m ≈ | 248.6 m ≈ | 180.7 m | 237.3 m | 52.9 m ≈ | 292.6 m ≈ |
| Capex | 37.6 m | 41.0 m | 26.3 m ≈ | 36.9 m ≈ | 42.5 m | 38.6 m | 60.1 m ≈ | 44.0 m ≈ |
| Dividends paid | 61.5 m | 61.7 m | 64.9 m ≈ | 64.7 m ≈ | 64.1 m | 64.0 m | 64.8 m ≈ | 65.0 m ≈ |
| Share repurchases | 8.6 m | 2.6 m | 76.0 k ≈ | 69.8 m ≈ | 85.4 m | 72.3 m | 90.9 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 year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 1.3 bn | 1.4 bn | 1.4 bn | 1.4 bn | 1.7 bn | 2.0 bn | 2.1 bn | 2.2 bn |
| Revenue YoY | +8.8% | +4.5% | +5.4% | −4.8% | +23.7% | +17.2% | +3.8% | +8.3% |
| Net income | 454.9 m | 443.6 m | 331.2 m | 443.1 m | 579.2 m | 598.0 m | 582.5 m | 648.6 m |
| Net income YoY | +24.9% | −2.5% | −25.3% | +33.8% | +30.7% | +3.3% | −2.6% | +11.3% |
| Diluted EPS | 6.90 | 6.84 | 5.10 | 6.76 | 8.81 | 9.10 | 8.87 | 9.92 |
| 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 flow | 483.1 m | 427.4 m | 428.8 m | 582.4 m | 620.1 m | 320.2 m | 861.8 m | 127.3 m |
Reported results vs expectations
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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
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Net interest income | 976.0 m | 984.9 m | 1.3 bn | 1.6 bn | 1.6 bn | 1.7 bn | SEC (XBRL)· 05 Feb 2026verified |
| Net fee income | 465.5 m | 386.7 m | 404.8 m | 428.5 m | 459.1 m | 499.1 m | SEC (XBRL)· 05 Feb 2026verified |
| Non-interest expense | 848.9 m | 882.0 m | 1.0 bn | 1.2 bn | 1.3 bn | 1.4 bn | SEC (XBRL)· 05 Feb 2026verified |
| Pre-tax income | 351.3 m | 489.5 m | 668.8 m | 712.4 m | 696.0 m | 771.7 m | SEC (XBRL)· 05 Feb 2026verified |
| Net income | 331.2 m | 443.1 m | 579.2 m | 598.0 m | 582.5 m | 648.6 m | SEC (XBRL)· 05 Feb 2026verified |
| Diluted EPS | 5.10 | 6.76 | 8.81 | 9.10 | 8.87 | 9.92 | SEC (XBRL)· 05 Feb 2026verified |
| Dividend per share | 2.85 | 2.94 | 3.24 | 3.58 | 3.74 | 3.95 | SEC (XBRL)· 05 Feb 2026verified |
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 10.3 bn | 16.6 bn | 12.0 bn | 8.7 bn | 10.2 bn | 8.9 bn | SEC (XBRL)· 05 Feb 2026verified |
| Loans | 17.2 bn | 16.1 bn | 16.9 bn | 18.6 bn | 20.5 bn | 21.6 bn | SEC (XBRL)· 05 Feb 2026verified |
| Total assets | 42.4 bn | 50.9 bn | 52.9 bn | 50.8 bn | 52.5 bn | 53.0 bn | SEC (XBRL)· 05 Feb 2026verified |
| Deposits | 35.0 bn | 42.7 bn | 44.0 bn | 41.9 bn | 42.7 bn | 42.9 bn | SEC (XBRL)· 05 Feb 2026verified |
| Total liabilities | 38.1 bn | 46.4 bn | 49.8 bn | 47.1 bn | 48.6 bn | 48.5 bn | SEC (XBRL)· 05 Feb 2026verified |
| Equity | 4.3 bn † | 4.4 bn † | 3.1 bn † | 3.7 bn † | 3.9 bn † | 4.6 bn † | SEC (XBRL)· 05 Feb 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Dividends paid | 180.6 m | 188.8 m | 209.8 m | 232.3 m | 242.4 m | 255.4 m | SEC (XBRL)· 05 Feb 2026verified |
| Share repurchases | 15.8 m | 3.9 m | 4.4 m | 42.7 m | 60.9 m | 157.8 m | SEC (XBRL)· 05 Feb 2026verified |
Computed indicators
Growth
Profitability
Returns
Market and valuation
Banking
32 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 48 / 100
A scoring methodology on indicators and valuation, not investment advice.
(margin_of_safety <= -0.25 & agreement in ['high', 'medium'])
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 9.9 bn USD
Key indicators
Coverage and freshness
Score by group
- Valuation10
- Returns44
- Quality59
- Balance sheet100
- Growth61
Estimated value range
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 – 12.2xASRV, 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 – 1.4xASRV, 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
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
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROE · Quality | 16.3% | 85 (vs peers) | 19% |
| ROA · Quality | 1.3% | 63 (on a fixed band) | 7% |
| Cost-to-income · Quality | 63.2% | 7 (on a fixed band) | 12% |
| Net interest margin · Quality | 3.4% | 75 (on a fixed band) | 7% |
| EPS CAGR 3Y · Growth | 4.0% | 34 (on a fixed band) | 10% |
| Revenue CAGR 3Y · Growth | 9.6% | 96 (on a fixed band) | 7% |
| NPL ratio · Balance sheet | unavailable | unavailable | — |
| Cost of risk · Balance sheet | unavailable | unavailable | — |
| Loan-to-deposit · Balance sheet | 52.8% | 100 (on a fixed band) | 5% |
| P/B · Valuation | 2.5x | 5 (vs peers) | 12% |
| P/E (TTM) · Valuation | 14.8x | 14 (vs peers) | 12% |
| Dividend yield · Returns | 2.5% | 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
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| JPMJpmorgan Chase & Co | 897.5 bn | 14.1 | 18.0% | 36.2% | +2.8% | +8% / +117% |
| BACBofA Finance LLC | 342.7 bn | 11.7 | 10.8% | 26.8% | +6.8% | −7% / +63% |
| WFCWells Fargo & Company | 256.7 bn | 11.9 | 12.9% | — | −1.6% | −0% / +92% |
| CCitigroup Inc | 214.7 bn | 17.6 | 6.8% | 16.8% | +5.6% | +18% / +166% |
| UBSUBS Group AG | 169.3 bn | 21.5 | 8.9% | — | +7.0% | +31% / +79% |
| COFCapital One Financial Corp | 125.5 bn | 12.2 | 9.7% | 17.2% | +36.6% | −5% / +87% |
| USBUs Bancorp \de\ | 93.3 bn | 11.8 | 12.7% | 27.5% | +4.4% | +22% / +57% |
| PNCPNC Financial Services Group, Inc. | 91.0 bn | 11.9 | 13.1% | 31.1% | +7.2% | +20% / +71% |
| HBANHuntington Bancshares Incorporated | 32.0 bn | 12.8 | 9.1% | 133.3% | +6.4% | −3% / +41% |
| RFRegions Financial Corporation | 24.4 bn | 11.5 | 11.9% | — | +23.8% | +12% / +71% |
| KEYKeyCorp | 22.4 bn | 11.5 | 11.2% | 26.6% | +62.7% | +16% / +71% |
| FHNFirst Horizon Corp | 11.2 bn | 11.3 | 11.6% | 29.9% | +7.2% | +6% / +86% |
| SNUS-PHSantander Holdings USA, Inc. | 11.0 bn | 6.2 | 10.8% | — | unavailable | unavailable / unavailable |
| CFRCullen/Frost Bankers, Inc. | 9.9 bn | 14.8 | 16.3% | 29.5% | +8.3% | +30% / +65% |
| ONBOld National Bancorp | 9.8 bn | 10.5 | 11.5% | — | +6.1% | +19% / +74% |
| ZIONZions Bancorporation, National Association | 9.7 bn | 8.5 | 16.4% | 168.7% | +3.6% | +25% / +87% |
| FULTFulton Financial Corp | 4.6 bn | 11.6 | 11.1% | 137.0% | −6.5% | +34% / +71% |
| WSFSWsfs Financial Corporation | 4.1 bn | 12.8 | 12.4% | — | +50.2% | +45% / +110% |
| PRKPark National Corporation | 3.3 bn | 16.4 | 11.0% | 25.8% | +2.9% | +19% / +65% |
| BANCBanc Of California, Inc. | 2.9 bn | — | -0.7% | -1.4% | −3.8% | +1% / +61% |
| NBTBNbt Bancorp Inc | 2.8 bn | 13.3 | 11.4% | 117.1% | +10.4% | +30% / +52% |
| WAFDWaFd, Inc. | 2.2 bn | 9.4 | 8.5% | 810.8% | +7.8% | −5% / +13% |
| CHCOCity Holding Company | 2.0 bn | 15.8 | 16.8% | 177.4% | +3.2% | +19% / +50% |
| TBBKThe Bancorp, Inc. | 1.9 bn | 8.9 | 29.6% | 164.3% | +20.8% | −26% / +21% |
| NBHCNational Bank Holdings Corp | 1.7 bn | 30.3 | 3.6% | 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.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 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% |
- 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.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
No news in our archive over the last 180 days.
SEC filings
- Current report29 Oct 2026Delisting notice · Regulation FD disclosure · Financial statements and exhibits
- Quarterly report29 Oct 2026
- Current report29 Oct 2026Results of operations · Financial statements and exhibits
- Current report17 Aug 2026Regulation FD disclosure · Financial statements and exhibits
- Quarterly report30 Jul 2026
- Current report30 Jul 2026Results of operations · Financial statements and exhibits
- Quarterly report30 Apr 2026
- Current report30 Apr 2026Results of operations · Financial statements and exhibits
- Current report29 Apr 2026Shareholder vote
- Proxy statement20 Mar 2026
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Cullen/Frost Bankers, Inc. · 05 Feb 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Cullen/Frost Bankers, Inc. · 30 Jul 2026
- [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.