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Cullen/Frost Bankers, Inc. Reports Strong Financial Performance for Q2 2025

Cullen/Frost Bankers, Inc. (NYSE:CFR) has announced their earnings results for the second quarter of 2025, revealing robust financial growth and positive metrics compared to the previous year. The financial report, made public on July 31, 2025, indicates that the bank's net income available to common shareholders was $155.3 million, marking a 7.4% increase from $143.8 million reported in the same quarter of 2024.

On a per-share basis, diluted earnings stood at $2.39, growing from $2.21 year-over-year. Notably, Cullen/Frost achieved returns on average assets at 1.22% compared to 1.18% in the previous year, while returns on average equity saw a slight decrease from 17.08% in Q2 2024 to 15.64% this quarter.

The bank’s net interest income for the second quarter on a taxable-equivalent basis amounted to $450.6 million, reflecting a 7.9% increase from $417.6 million in Q2 2024. This surge is attributed to an average loan increase to $21.1 billion, up 7.2% from $19.7 billion a year prior, alongside a rise in average deposits, which reached $41.8 billion, up from $40.5 billion.

Cullen/Frost’s executives have expressed confidence in the financial institution's performance. Phil Green, Chairman and CEO of Cullen/Frost, emphasized that the results validate their organic growth model and the continuous efforts of Frost bankers statewide. Despite the traditionally weaker deposit season in Q2, total deposits reported a slight increase compared to the first quarter of 2025.

In terms of six-month metrics for 2025, net income for the first half reached $304.6 million, a 9.6% increase from $277.9 million in the same period last year. The earnings per share for this timeframe also increased to $4.69 from $4.27, with returns on average assets and common equity recorded at 1.20% and 15.59% respectively.

Key Financial Highlights

• - The bank's Common Equity Tier 1, Tier 1 and Total Risk-Based Capital Ratios at the end of the second quarter were impressive 13.98%, 14.43%, and 15.88%, respectively, significantly surpassing the Basel III minimum requirements.
• - Non-interest income amounted to $117.3 million, a 5.5% increase from $111.2 million year-over-year, while non-interest expenses rose to $347.1 million, up 9.5% from $317.0 million.
• - Credit loss expense reported for Q2 was $13.1 million, with net loan charge-offs at $11.2 million, demonstrating stable management of credit risks compared to prior quarters.

Given these results, Cullen/Frost declared a third-quarter cash dividend of $1.00 per common share, to be distributed on September 15, 2025, to shareholders recorded on August 29. Additionally, a cash dividend of $11.125 per share will be paid on the Series B Preferred Stock.

Cullen/Frost Bankers, Inc. maintains a significant presence in Texas, holding assets worth approximately $51.4 billion as of June 30, 2025. With operations spanning major regions including Austin, Dallas, and San Antonio, the bank has become one of the 50 largest financial institutions in the United States.

For more insights and analysis on Cullen/Frost Bankers' financial performance, stakeholders are encouraged to attend the upcoming conference call scheduled for August 3, 2025, at 1 PM Central Time. Access details will be available on their investor relations website. This proactive communication highlights Cullen/Frost's commitment to transparency and investor engagement as they outline future strategies and expectations.