Cullen/Frost Bankers reported second-quarter net income available to common shareholders of $170.4 million, up from $155.3 million a year earlier. Earnings per diluted common share rose to $2.70 from $2.39.
For the first half of 2026, net income available to common shareholders increased to $339.7 million from $304.6 million, while earnings per share climbed to $5.35 from $4.69.
Revenue from net interest income on a taxable-equivalent basis increased 4.3% in the quarter to $470.1 million from $450.6 million. Net interest margin expanded to 3.75% from 3.67% a year ago, and was slightly above the 3.74% reported in the first quarter.
Average loans rose to $22.6 billion, up $1.6 billion, or 7.4%, from $21.1 billion in the second quarter of 2025, and up $610.8 million, or 2.8%, from the first quarter of 2026. Average deposits increased to $42.6 billion from $41.8 billion a year earlier and from $42.2 billion in the prior quarter.
Non-interest income climbed to $128.3 million from $117.3 million in the year-earlier quarter. Trust and investment management fees increased to $47.8 million from $43.8 million, while service charges on deposit accounts rose to $34.1 million from $29.1 million.
Non-interest expense increased to $361.7 million from $347.1 million a year ago. Salaries and wages rose to $171.6 million from $160.8 million, employee benefits increased to $34.6 million from $32.3 million, and technology, furniture and equipment expense climbed to $42.3 million from $40.3 million.
Credit loss expense was $9.8 million, compared with $13.1 million in the second quarter of 2025 and $6.7 million in the first quarter of 2026. Net charge-offs were $9.5 million, down from $11.2 million a year earlier but up from $5.7 million in the prior quarter.
The allowance for credit losses on loans stood at 1.23% of total loans at June 30, 2026, down from 1.31% a year earlier and 1.28% at the end of the first quarter. Non-accrual loans rose to $112.7 million from $62.4 million a year ago and $72.4 million at the end of March.
The company repurchased 654,955 shares for $90.0 million during the quarter. It ended the period with $140.0 million remaining under its $300 million buyback authorization.
The board declared a third-quarter dividend of $1.03 per common share, up from the prior-quarter level implied by the new declaration, and also set a preferred dividend of $11.125 per series B preferred share, or $0.278125 per depositary share. Today the company's shares have moved -1.27% to a price of $164.815. Check out the company's full 8-K submission here.
