CFR · Cullen/Frost Bankers, Inc.

Cullen/Frost Bankers delivered strong Q1 2026 results with net income rising 13.3% year-over-year to $169.3 million, driven by 5.6% growth in net interest income to $460.8 million and net interest margin expansion to 3.74% from 3.60%, reflecting effective deposit pricing and loan growth. Average loans expanded 5.9% YoY to $22.0 billion, supported by expansion into Houston, Dallas, and Austin markets where $2.6 billion in new loans and $3.2 billion in deposits were accumulated since 2018. Non-interest income grew 9.9% to $136.3 million, led by higher trust fees (up 11.7%) from equity/bond market gains and service charges (up 12.4%) tied to commercial treasury services and overdraft volumes. Expenses rose 5.1% to $365.7 million, with increases in salaries, benefits, technology (cloud services), and deposit fraud losses, but remained controlled relative to revenue growth. Credit quality strengthened with provision expense dropping to $6.7 million from $13.1 million YoY, net charge-offs at $5.7 million, and non-accrual loans declining to $72.4 million. Capital position remains robust with CET1 at 14.07%. Management highlighted solid loan/deposit growth and branch expansion success, including the 205th location in Austin. Shareholder returns advanced via $70 million share repurchases (507k shares) and a 3% dividend hike to $1.03, payable June 15. No forward guidance provided; focus on organic growth and risk management amid geopolitical uncertainties.