Cullen/Frost Bankers, Inc. (CFR) Stock Price & How to Invest
Last updated July 2026
Short answer
Cullen/Frost Bankers (CFR) is a Texas-only regional bank holding company (Frost Bank) known for a conservative, deposit-rich balance sheet and an aggressive organic branch-expansion push across Houston, Dallas, and Austin. It trades as a higher-quality, premium-valued regional bank rather than a deep-value or high-growth name.
CFR stock price
As of 2026-07-24, Cullen/Frost Bankers, Inc. (CFR) last closed at $164.23, up 21.7% over the past year. Over the past 52 weeks it has traded between $119.85 and $164.23.
Prices are daily closing prices from Yahoo Finance and may be delayed. For the live quote, check your broker or Cullen/Frost Bankers, Inc.'s investor relations page. Walnut is informational, not investment advice.
What does Cullen/Frost Bankers, Inc. (CFR) do?
Cullen/Frost Bankers, Inc. is the San Antonio-based holding company for Frost Bank, one of the largest banks headquartered in Texas with roughly $52 billion in assets as of early 2026. The company offers commercial and consumer banking, wealth management, and insurance exclusively to Texans across San Antonio, Austin, Dallas, Fort Worth, Houston, Corpus Christi, the Permian Basin, and the Rio Grande Valley. Frost is known for a relationship-driven model, a low-cost deposit base, and a conservative credit culture, and it grows organically by opening new branches rather than acquiring other banks.
The investment picture centers on Texas concentration as both the strength and the risk. Frost is riding one of the strongest state economies in the country, and a multi-year expansion into Houston, Dallas, and Austin is shifting from a cost drag toward accretive contribution as those branches mature and add households, loans, and deposits. In return for its quality, stability, and long dividend track record, CFR usually commands a valuation premium over the average regional bank, so much of its franchise strength is already reflected in the price. The debate for investors is whether continued loan growth, an improving net interest margin, and expansion payoff justify that premium against rising deposit competition and pockets of credit softening.
What's driving Cullen/Frost Bankers, Inc. (CFR)?
1. Texas organic branch expansion
Frost is opening new branches across Houston, Dallas, and Austin instead of buying banks, and it opened two locations in Q1 2026 with plans for roughly 10 to 12 more over the rest of the year. These expansion branches have grown to about $2.9 billion in loans and $3.6 billion in deposits and added around 95,000 new households. As newer branches mature past breakeven, they are expected to add operating leverage.
2. Net interest margin and loan growth
Net interest margin expanded to about 3.74% in Q1 2026 from 3.60% a year earlier, and average loans grew roughly 6% year over year to around $22 billion. A large, low-cost deposit base and disciplined pricing support net interest income even as rates fluctuate. Management has guided to further margin improvement over 2025 levels.
3. Low-cost, sticky deposit franchise
Frost carries roughly $42 billion in deposits built on long-standing customer relationships, which historically gives it a funding-cost advantage over many regional peers. That deposit strength underpins both profitability and the ability to fund loan growth internally. It is the core reason the market assigns Frost a quality premium.
4. Fee income and wealth management
Non-interest income grew nearly 10% year over year in Q1 2026 to about $136 million, helped by wealth management, insurance, and service charges. This diversifies the revenue mix beyond spread lending. A growing household base from expansion feeds these fee lines over time.
What are the risks to Cullen/Frost Bankers, Inc. (CFR)?
CFR is heavily concentrated in Texas, so a downturn in the state economy, energy sector, or Texas commercial real estate would hit it harder than a geographically diversified bank. Deposit competition is pressuring funding costs, and management has flagged rising problem and criticized loans plus higher unrealized securities losses. The branch-expansion strategy carries elevated near-term expense growth that depends on new locations becoming profitable on schedule. The stock also trades at a premium valuation (around 13x to 14x earnings versus peers near 11x), which leaves less margin for disappointment. Broader interest-rate moves and the credit cycle remain the dominant swing factors for any regional bank.
How is Cullen/Frost Bankers, Inc. (CFR) valued? (approximate, July 2026)
A simple financial snapshot. These are approximations and refresh quarterly; for current figures see Cullen/Frost Bankers, Inc.'s investor relations page or your broker.
- Revenue (TTM, approx): ~$2.3B
- Q1 2026 net income: ~$169M
- Q1 2026 EPS: ~$2.65
- Total assets: ~$52B
- Market cap: ~$10B
- Dividend yield: ~2.5-2.9%
CFR beat estimates in Q1 2026 with EPS of about $2.65, up from $2.30 a year earlier, and raised its quarterly dividend to $1.03 per share. At roughly $160 per share it has traded around 13x to 14x earnings, a premium to the regional-bank peer group near 11x. That premium reflects its deposit franchise and Texas growth, so valuation depends on continued execution rather than a discount.
Who competes with Cullen/Frost Bankers, Inc. (CFR)?
Texas regional and commercial banks
Comerica, Texas Capital Bancshares, and Prosperity Bancshares compete directly for Texas commercial, small-business, and wealth clients in the same metro markets, making them the closest peers on Frost's home turf.
Large national banks
JPMorgan Chase, Bank of America, and Wells Fargo bring scale, technology, and full-service breadth to Texas consumer and commercial banking, competing on price and product depth against Frost's relationship model.
Other super-regional banks
Zions Bancorporation, Regions Financial, and similar peers are the broader comparison set for investors weighing regional-bank exposure, valuation, and interest-rate sensitivity.
How to invest in Cullen/Frost Bankers, Inc. (CFR)
There are three common ways to get CFR exposure. Buy shares (or fractional shares) directly at any major broker. Hold an ETF that includes it, which spreads the position across many companies. Or build it into a focused thematic basket, so CFR sits alongside other stocks that express the same thesis.
Walnut takes the basket route. Describe a thesis where CFR fits (for example “AI infrastructure” or “dividend-growth large-caps”) and the AI proposes 5 to 6 constituents with target weights. You review the plan and fund it through your own broker when you're ready.
New to this? Start with how to invest in stocks, see how to analyze a stock with AI, or compare the best AI stock analyzers.
The bottom line on Cullen/Frost Bankers, Inc. (CFR)
CFR is a well-run, Texas-concentrated regional bank whose story hinges on its new branches turning profitable and deposit costs staying contained, and it typically trades at a premium to peers to reflect that quality.
More on Cullen/Frost Bankers, Inc. (CFR)
Whether CFR is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, what would have to go right, and the risks in is CFR a buy?, and where the stock could go from here in the CFR stock forecast.
For income investors, whether CFR pays a dividend and how the payout looks is covered in does CFR pay a dividend?
Build a basket around CFR with Walnut
Use Cullen/Frost Bankers, Inc. as one constituent in a thematic basket Walnut's AI helps you assemble. Describe a thesis you believe in, the AI proposes the holdings and weights, and you approve before any broker order.
FAQ
What does Cullen/Frost Bankers do?
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It is the holding company for Frost Bank, a Texas-based bank offering commercial and consumer banking, wealth management, and insurance. It operates only in Texas, serving markets such as San Antonio, Austin, Dallas, Houston, and the Permian Basin.
Is CFR a Texas-only bank?
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Yes. Frost operates exclusively in Texas and grows by opening new branches within the state rather than acquiring banks elsewhere. That focus is central to both its franchise strength and its geographic concentration risk.
How did CFR perform in its most recent quarter?
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In Q1 2026 Cullen/Frost reported EPS of about $2.65, up from $2.30 a year earlier, with net income near $169 million. Net interest margin expanded to roughly 3.74% and average loans grew about 6% year over year.
Does CFR pay a dividend?
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Yes. Cullen/Frost has a long history of paying and raising its dividend, and it lifted the quarterly payout to $1.03 per share in early 2026. The yield has generally run in the mid-2% range depending on the share price.
What is CFR's branch expansion strategy?
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Frost is opening new branches organically across Houston, Dallas, and Austin, with plans for roughly 10 to 12 additional locations over 2026. The expectation is that maturing branches shift from breakeven toward accretive, adding operating leverage.
What are the main risks for CFR?
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Key risks include heavy Texas concentration, rising deposit-funding competition, elevated expense growth from expansion, and some increase in problem loans. Broader interest-rate moves and the credit cycle also drive results, as with any regional bank.
Who are CFR's main competitors?
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In Texas it competes with Comerica, Texas Capital, and Prosperity Bancshares, along with large national banks like JPMorgan Chase in its markets. Investors also compare it against super-regional peers such as Zions and Regions Financial.
Walnut is informational, not investment advice. Financial figures on this page are approximations; always verify current numbers with Cullen/Frost Bankers, Inc.'s investor relations page or your broker before making investment decisions.