Cullen/Frost Bankers, Inc. reported a net income of $174.4 million for the third quarter of 2025, translating to earnings of $2.67 per diluted share, marking a 19.2% increase from $146.5 million, or $2.24 per share, in the same quarter of the previous year. For the nine months ending September 30, 2025, net income available to common shareholders reached $477.3 million, or $7.36 per diluted share, up from $422.7 million, or $6.51 per share, in the prior year. The increase in profitability was primarily driven by a $37.3 million rise in net interest income and a $12.6 million reduction in credit loss expenses.
Total assets for Cullen/Frost stood at $52.5 billion as of September 30, 2025, slightly up from $52.5 billion at the end of 2024. The bank's loan portfolio increased to $21.4 billion, a 3.3% rise from $20.8 billion at the end of the previous year. Notably, commercial and industrial loans grew by 1.8%, while energy loans surged by 11.1%. The bank's total deposits decreased to $42.5 billion from $42.7 billion, with non-interest-bearing demand deposits at $14.1 billion, down from $14.4 billion.
Cullen/Frost's non-interest income also saw a positive trend, increasing by 10.5% to $125.6 million for the third quarter, driven by higher service charges on deposit accounts and trust and investment management fees. However, non-interest expenses rose by 9.0% to $352.5 million, primarily due to increased salaries and wages, technology expenses, and employee benefits. The bank's efficiency ratio was reported at 63.3%, reflecting the ongoing investment in growth and operational efficiency.
Looking ahead, Cullen/Frost remains optimistic about its financial outlook, with management noting that the bank's capital levels exceed regulatory requirements under the Basel III Capital Rules. The bank's Common Equity Tier 1 capital ratio was reported at 14.14%, well above the minimum required levels. The management anticipates continued growth in net interest income, supported by a favorable interest rate environment and a strong loan portfolio, while also managing expenses effectively to enhance profitability.
About CULLEN/FROST BANKERS, INC.
Cullen/Frost Bankers, Inc. is a Texas-based financial holding company operating Frost Bank, which provides commercial and consumer banking, trust, investment management, insurance, brokerage, and treasury services. Serving diverse Texas markets, it emphasizes personalized, community-focused banking with competitive products. The company’s business model centers on relationship banking, fee-based income, and strategic growth through organic expansion and potential acquisitions, supported by a robust regulatory framework.
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