Cullen/Frost Bankers, Inc.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 30 April 2026: press release. Guidance figures: 1 raised, 1 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Earnings per diluted share rose to $2.65: Diluted EPS was $2.65, against $2.30 a year earlier, on net income available to common shareholders of $169.3 million, compared with $149.3 million. Source
• Net interest income rose 5.6 percent: Taxable-equivalent net interest income was $460.8 million, up from $436.4 million a year earlier and down from $471.2 million in the fourth quarter of 2025. Source
• Net interest margin widened to 3.74 percent: Net interest margin was 3.74 percent, compared with 3.60 percent a year earlier and 3.66 percent in the fourth quarter of 2025. Source
• Average loans up 5.9 percent: Average loans were $22.0 billion, up $1.2 billion or 5.9 percent from $20.8 billion a year earlier. Source
• Average deposits fell from fourth quarter: Average deposits were $42.2 billion, up 1.4 percent from a year earlier. They fell $1.1 billion, or 2.6 percent, from the fourth quarter of 2025. Source
• Non-interest expense rose 5.1 percent: Non-interest expense was $365.7 million, up $17.6 million from a year earlier, with growth in salaries, benefits, technology and other expense. Source
• Credit loss expense fell from fourth quarter: Credit loss expense was $6.7 million, down from $11.2 million in the fourth quarter of 2025 and $13.1 million in the first quarter of 2025. Source
• Common dividend raised to $1.03: The board declared a second-quarter common dividend of $1.03 per share, up 3.0 percent from $1.00 in the prior quarter. Source

“We had a solid start to the year, with average loan growth of just under six percent and continued steady growth in deposits compared to the year-ago period”

Cullen/Frost Chairman and CEO Phil Green

Guidance

What changed from last quarter

• Guidance raised: Common dividend increased 3.0 percent, to $1.03 per share from $1.00. Source
• New: Arboretum location in the Austin area opened, the company's 205th location. Source

Earnings and returns

• Earnings per diluted share rose to $2.65: Diluted EPS was $2.65, against $2.30 a year earlier, on net income available to common shareholders of $169.3 million, compared with $149.3 million. Source
• Returns on assets and equity moved: Return on average assets was 1.32 percent, up from 1.19 percent. Return on average common equity was 15.15 percent, down from 15.54 percent a year earlier. Source

Net interest income and margin

• Net interest income rose 5.6 percent: Taxable-equivalent net interest income was $460.8 million, up from $436.4 million a year earlier and down from $471.2 million in the fourth quarter of 2025. Source
• Net interest margin widened to 3.74 percent: Net interest margin was 3.74 percent, compared with 3.60 percent a year earlier and 3.66 percent in the fourth quarter of 2025. Source
• Asset yields declined from a year earlier: Yield on loans was 6.23 percent, down from 6.57 percent a year earlier. Yield on total earning assets was 4.88 percent, against 4.99 percent a year earlier. Source

“With the opening of our Arboretum location in the Austin area, our 205th location, we have increased our total branch count by more than 50 percent”

Cullen/Frost Chairman and CEO Phil Green

Loans and deposits

• Average loans up 5.9 percent: Average loans were $22.0 billion, up $1.2 billion or 5.9 percent from $20.8 billion a year earlier. Source
• Loans rose 1.6 percent from fourth quarter: Average loans were $349.3 million, or 1.6 percent, higher than in the fourth quarter of 2025. Source
• Average deposits fell from fourth quarter: Average deposits were $42.2 billion, up 1.4 percent from a year earlier. They fell $1.1 billion, or 2.6 percent, from the fourth quarter of 2025. Source
• Non-interest-bearing deposits edged lower: Average non-interest-bearing demand deposits were $13.9 billion, against $14.3 billion in the fourth quarter of 2025. Source

Fee income

• Non-interest income rose 9.9 percent: Non-interest income was $136.3 million, up $12.3 million or 9.9 percent from $124.0 million a year earlier. Source
• Trust and investment fees up 11.7 percent: Trust and investment management fees rose $5.0 million, with investment management fees up $4.3 million. Management notes these fees move with market values of customer assets. Source
• Service charges rose on treasury and overdrafts: Service charges on deposit accounts rose $3.5 million. Commercial service charges were up $2.2 million on treasury management growth; consumer overdraft charges were up $1.3 million. Source

Non-interest expense

• Non-interest expense rose 5.1 percent: Non-interest expense was $365.7 million, up $17.6 million from a year earlier, with growth in salaries, benefits, technology and other expense. Source
• Salaries and benefits rose on merit and medical: Salaries and wages rose on merit and market increases plus higher stock compensation. Employee benefits rose $2.5 million, primarily on medical and dental costs up $1.7 million. Source
• Fraud losses and advertising lifted other costs: Other non-interest expense rose $6.7 million, or 10.4 percent. Deposit fraud losses on payment systems were up $2.4 million; advertising and promotions up $1.9 million. Source
• Cloud services drove technology cost increase: Technology, furniture and equipment expense rose $1.6 million, or 3.9 percent, primarily on cloud services up $1.8 million. Source

Credit quality

• Credit loss expense fell from fourth quarter: Credit loss expense was $6.7 million, down from $11.2 million in the fourth quarter of 2025 and $13.1 million in the first quarter of 2025. Source
• Net charge-offs held at 0.11 percent: Net charge-offs were $5.7 million, or 0.11 percent of average loans on an annualized basis, against 0.19 percent a year earlier. Source
• Non-accrual loans rose from year-end: Non-accrual loans were $72.4 million, or 0.32 percent of total loans, up from $70.5 million at year-end 2025 and down from $83.5 million a year earlier. Source
• Allowance covered 1.28 percent of loans: Allowance for credit losses on loans was 1.28 percent of period-end loans, against 1.29 percent at December 31, 2025 and 1.32 percent a year earlier. Source

Capital and shareholder returns

• Common equity Tier 1 ratio at 14.07 percent: CET1 ratio was 14.07 percent, Tier 1 was 14.51 percent and total risk-based capital was 15.89 percent, all in excess of well-capitalized levels per management. Source
• Repurchased 507,753 shares for $70.0 million: The company repurchased 507,753 shares at a total cost of $70.0 million during the quarter. Source
• $230 million left under repurchase authorization: After repurchases, $230 million remained under the current $300 million authorization, which expires in January 2027. Source
• Common dividend raised to $1.03: The board declared a second-quarter common dividend of $1.03 per share, up 3.0 percent from $1.00 in the prior quarter. Source
• Series B preferred dividend declared: The board declared a Series B Preferred Stock dividend of $11.125 per share, or $0.278125 per depositary share. Source

Expansion markets and branches

• Arboretum branch became 205th location: The Arboretum location in the Austin area opened as the company's 205th location. Source
• Expansion markets hold $2.6 billion loans: Expansion locations in Houston, Dallas and Austin hold $2.6 billion in loans and $3.2 billion in deposits through the first quarter. Source

Coming up, as management said on 30 April 2026

• Common dividend payment: The $1.03 second-quarter common dividend is payable June 15, 2026, to holders of record on May 29. Source
• Preferred dividend payment: The Series B Preferred Stock dividend is payable June 15, 2026, to holders of record on May 29. Source

Figures management reported

Other quarters

• Q2 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 FY2025 earnings call
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.