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Cullen/Frost Bank's Third Quarter 2025 Earnings Overview

Cullen/Frost Bankers, Inc. (NYSE: CFR) has unveiled its financial results for the third quarter of 2025, showcasing a strong performance that underscores the bank's resilience and commitment to growth. The bank reported a net income available to common shareholders totaling $172.7 million, a substantial increase from the $144.8 million reported during the same quarter last year. This impressive figure translates to a diluted earnings per share (EPS) of $2.67, up from $2.24 in Q3 of 2024, highlighting robust operational efficiency.

Key Financial Highlights

The earnings report revealed several critical financial metrics that reflect Cullen/Frost's ongoing success. Notably, the bank's returns on average assets and average common equity stood at 1.32% and 16.72%, respectively, marking an increase from 1.16% and 15.48% in the prior year. This upward trend exemplifies the bank's effective asset management and growth strategies.

During the same quarter, net interest income on a taxable-equivalent basis soared to $463.7 million, representing a 9.1% increase compared to Q3 2024. The bank also reported an average loan volume jump of $1.4 billion or 6.8%, reaching $21.5 billion, further demonstrating its expanding lending portfolio. Meanwhile, the average deposits rose by $1.3 billion, or 3.3%, to $42.1 billion, reinforcing the bank's strong customer base and trust.

Management Insights

Phil Green, Cullen/Frost's Chairman and CEO, emphasized the bank's focus on sustainable growth and adaptability in a trying economic climate. In his statement, he remarked, "In the third quarter, our business saw continued steady loan growth as well as the beginning of our usual seasonal strength in deposit flows in the back half of the year." He stressed the importance of the bank's strategy to expand locations and enhance digital banking experiences, catering to the needs of families and businesses alike. Green further noted that the bank is strategically positioned to maintain growth irrespective of fluctuations in interest rates.

Year-to-Date Performance

For the nine months ending September 30, 2025, Cullen/Frost reported a net income of $477.3 million, a noticeable 12.9% increase from $422.7 million during the same period in 2024. The diluted EPS for this period was $7.36, compared to $6.51 in the previous year, indicating a strong year-on-year performance. The returns on average assets and equity for the same period remained stable at 1.24% and 15.98%, respectively.

Quarterly Financial Data Summary:

• - Common Equity Tier 1 Ratio: 14.14%
• - Tier 1 Ratio: 14.59%
• - Total Risk-Based Capital Ratio: 16.04%

These capital ratios exceed the requirements set by regulatory bodies, showcasing the bank's robust financial health.

Dividends Declared

In line with its positive financial performance, Cullen/Frost has also declared a fourth-quarter cash dividend of $1.00 per common share, payable on December 15, 2025. Additionally, a cash dividend of $11.125 per share of Series B Preferred Stock was announced, further indicating the company's commitment to delivering shareholder value.

Looking Ahead

On October 30, 2025, Cullen/Frost will host a conference call to discuss the quarter's results in detail. Interested parties can access it via the bank's investor relations website or through the designated phone line. The playback of the call will be available afterward for those who wish to review the discussions.

As one of the largest banks in the United States with assets totaling $52.5 billion as of September 30, 2025, Cullen/Frost continues to provide various banking, investment, and insurance services across Texas. Founded in 1868, the bank remains dedicated to serving its clients effectively while navigating the evolving financial landscape.