Earnings
Home›Earnings›Results›Cullen/Frost Bankers raises 2026 net interest income o…
Cullen/Frost Bankers raises 2026 net interest income outlook after Q2 growth
The bank lifted full-year 2026 net interest income guidance to 4.75% to 5.25%, assuming a 25 basis point Fed rate hike in September.
Yahoo Finance reports Cullen/Frost Bankers described strong Q2 2026 momentum, including accelerating consumer checking household growth to 5.7% and new customers making up one-third of its customer base since the 2018 expansion began.
Management said consumer loans are expected to grow about 20% annually, supported by mortgage lending and second-lien home equity products. In commercial lending, the bank reached a record 90-day weighted loan pipeline of $2.17 billion, driven by competition on price while maintaining strict credit structures.
The bank attributed much of its growth to strategic expansion branches, which accounted for 53% of total loan growth and 72% of deposit growth year over year. Credit quality was described as stable even with higher nonperforming assets, which management tied largely to a single $54 million multifamily loan in Austin affected by an equity partner dispute.
Looking ahead, Cullen/Frost Bankers raised its full-year 2026 net interest income growth guidance to a range of 4.75% to 5.25%, contingent on a 25 basis point Fed rate hike in September. It also increased full-year loan growth guidance to 7% to 8%, and plans roughly $1 billion of second-half 2026 purchases split between agency MBS and municipal securities to protect margins.