Cullen/Frost Bankers reported fourth-quarter net income of $210 million, or $1.78 per share, topping consensus estimates of $1.65. This represented a 12% year-over-year increase in earnings per share, driven by solid revenue growth and disciplined credit management. Return on average assets improved to 1.25%, marking the bank’s strongest quarterly profitability metric since the first quarter of 2024.

Net interest income for the quarter rose 8.2% year-over-year to $515 million as loan yields expanded and deposit costs stabilized. Non-interest income climbed 7.5% to $210 million, led by wealth management fees, which increased 11%, and treasury services revenue, up 9%. Total operating revenues reached $780 million, a 5.9% improvement compared with the prior-year period.

Non-interest expenses increased 9.3% to $420 million, reflecting continued investment in digital platforms and branch network enhancements. The efficiency ratio widened to 53.8% from 52.1% a year earlier. Provision for credit losses was $45 million, down 15% sequentially, as asset quality metrics remained stable with non-performing assets representing 0.32% of total loans.

Cullen/Frost maintained a robust capital cushion with a common equity Tier 1 ratio of 10.8%, above regulatory benchmarks. The board declared a quarterly dividend of $1.00 per share, up 4% year-over-year. Management indicated that continued margin pressure from short-term funding costs and targeted expense investments will shape guidance for the first quarter, setting the stage for measured growth in 2026.