Cullen/Frost Bankers Exceeds Expectations with 3.4% Revenue Growth and Strong Consumer Lending
The third quarter earnings report from Cullen/Frost Bankers Incorporated has exceeded expectations, with a 3.4% revenue growth compared to the same period last year. Chairman and CEO Phil Green reported that the company earned $178.5 million in the third quarter of 2026, an increase of 6.4% per share earnings from $2.67 in the previous year.
The consumer bank division continues to deliver strong results, driven by a consistent focus on customer experience and investments in organic expansion, products, and technology. Consumer loans ended the quarter at $4.66 billion, an increase of 18.7% year-over-year, with mortgage lending being a key contributor to this growth. The company's mortgage portfolio has exceeded $1 billion, and since the program began, 46% of mortgage customers have been new to Frost, while 37% of those new customers have opened additional products.
Non-interest income also continued to grow strongly, driven by the company's consistently best-in-class customer growth. Consumer non-interest income increased $2.6 million or 9.4% compared to the same period last year. Since launching its expansion program in late 2018, consumer checking accounts have grown 52%, with commercial relationships also showing impressive growth. The 90-day weighted loan pipeline reached an all-time high of $2.5 billion in the third quarter.
The company's expansion locations continue to be a significant driver of commercial relationships, accounting for 21% of new commercial relationships for the quarter. Market disruption, or opportunities created by other banks' mergers and acquisitions, also remains a strong source of new relationships for Cullen/Frost Bankers.
Phil Green emphasized the importance of customer experience in driving growth, saying "Our consumer bank continues to deliver strong results that are grounded in consistent focus on customer experience and our investments in organic expansion, products, and technology."
The company's performance has been reflected in its financial metrics, with a return on average assets (ROAA) of 1.31% and a return on average equity (ROAE) of 16.16%. Average deposits grew to $43.6 billion, an increase of 3.6% from the previous year, while average loans reached $23.4 billion, up 9% from last year.
