Cullen/Frost Bankers, Inc. (NYSE:CFR) released its third quarter 2026 earnings on October 29, 2026, reporting net income available to common shareholders of $178.5 million and diluted earnings per share of $2.84, alongside a declared fourth-quarter common stock dividend of $1.03 per share.

Key Highlights

  • Net income rose year over year: Net income available to common shareholders was $178.5 million for Q3 2026, up from $172.7 million in Q3 2025.
  • Diluted EPS of $2.84: Earnings per diluted common share increased from $2.67 in the year-earlier quarter.
  • Average loans grew 9.0 percent: Average loans for Q3 2026 reached $23.4 billion, up $1.9 billion from $21.5 billion in Q3 2025.
  • Net interest margin expanded: Net interest margin was 3.78 percent in Q3 2026, compared to 3.69 percent in Q3 2025.
  • Fourth-quarter common dividend declared: The board declared a cash dividend of $1.03 per common share, payable December 15, 2026 to shareholders of record on November 30, 2026.
  • Share repurchases continued: The company repurchased 92,700 common shares at a total cost of $15.0 million during Q3 2026, with $125.0 million remaining under its $300 million board-authorized repurchase plan.
  • Capital ratios above well-capitalized levels: Common Equity Tier 1, Tier 1, and Total Risk-Based Capital Ratios were 13.76 percent, 14.18 percent, and 15.50 percent, respectively, at September 30, 2026.

Cullen/Frost Q3 2026 Earnings: Loan Growth, Margin Expansion, and Dividend Action

According to the filing, Cullen/Frost Bankers reported net interest income on a taxable-equivalent basis of $490.8 million for Q3 2026, a 5.8 percent increase from $463.7 million in Q3 2025. Average deposits for the quarter rose $1.5 billion, or 3.6 percent, to $43.6 billion compared to the year-earlier period, and increased $959.2 million, or 2.3 percent, from Q2 2026. The company noted total households, including consumer and commercial customers, grew 5.4 percent from September 2025 to September 2026.

The filing reported non-interest income of $136.0 million for Q3 2026, an increase of $10.3 million, or 8.2 percent, from $125.6 million in Q3 2025. Contributing factors included $7.6 million of gains on the sale of excess bank properties and a $4.6 million, or 10.3 percent, increase in trust and investment management fees. Non-interest expense totaled $377.2 million, up $24.7 million, or 7.0 percent, year over year, with salaries and wages rising $13.0 million, or 7.7 percent, attributed in part to annual merit and market increases and growth in employee headcount.

The company disclosed a credit loss expense of $12.1 million and net charge-offs of $8.4 million for Q3 2026, compared to a credit loss expense of $6.8 million and net charge-offs of $6.6 million for Q3 2025. Non-accrual loans stood at $63.7 million at September 30, 2026, down from $112.7 million at the end of Q2 2026 but up from $44.8 million at the end of Q3 2025. The allowance for credit losses on loans as a percentage of total loans held at 1.23 percent at September 30, 2026. The board also declared a Series B Preferred Stock cash dividend of $11.125 per share (or $0.278125 per depositary share), payable December 15, 2026, with depositary shares traded on the NYSE under the symbol "CFR PrB."

What Was Disclosed

Cullen/Frost Bankers disclosed Q3 2026 financial results including net income, earnings per share, loan and deposit growth, net interest margin, non-interest income and expense details, credit quality metrics, capital ratios, share repurchase activity, and fourth-quarter dividend declarations for both common and Series B Preferred Stock.