Cullen/Frost Bankers (CFR) has received an upgrade from ‘Underperform’ to ‘In-Line’ by Evercore ISI, signaling a more favorable outlook following a string of strong financial results and operational stability.
💼 The upgrade follows a notable 11.4% year-over-year increase in net income for Q1 2025, totaling \$149.3 million. Net interest income rose 6.1%, while non-interest income advanced by 11.3%, showing CFR’s ability to drive revenue across multiple channels. Loan balances grew by 8.8%, complemented by a 2.3% increase in total deposits, highlighting consistent organic growth across core banking operations.
🏦 From a balance sheet standpoint, CFR maintains a Common Equity Tier 1 capital ratio of 13.84%, comfortably above regulatory requirements. The bank continues to reinvest strategically, expanding its branch footprint throughout Texas and enhancing digital banking capabilities—key initiatives that are expected to support future growth.
💸 Cullen/Frost also stands out as a dividend stalwart. The company recently increased its quarterly dividend to \$1.00 per share, up 5.3% from the previous payout. This marks its 33rd consecutive year of dividend growth. With a dividend yield near 2.65% and a modest payout ratio of 46.66%, CFR offers investors a reliable income stream backed by disciplined financial management.
📌 In short, Evercore’s upgrade reflects a bank that is financially sound, operationally efficient, and committed to shareholder returns. For dividend investors and long-term holders alike, CFR is showing all the right signals at the right time.