CFR

Cullen/Frost Bankers is the holding company for Frost Bank, a high-quality, conservatively run Texas franchise. Earnings have compounded steadily — net income rose from $443M (FY2021) to $649M (FY2025), up 11.3% last year, with diluted EPS up 11.8% to $9.92. Return on equity is a healthy 14.2%, and stockholders' equity grew 17.3% to $4.57B as accumulated rate-driven securities marks recovered and retained earnings built to $4.31B. The bank is leveraged 10.60x liabilities/equity, which is normal for a deposit-funded commercial bank, and it carries substantial liquidity ($8.87B cash and equivalents) on a $53.0B balance sheet.

The franchise's appeal is its market and its discipline. Frost operates in the fast-growing Texas economy and has a long reputation for relationship banking and a granular, low-cost deposit base — a structural advantage in a higher-for-longer rate environment. Management is returning capital while still growing: $255M of dividends (+5.3%) and $158M of buybacks (+159.2%), with the share count down 1.6% to 63.2M. (Note the XBRL 'revenue' line of $122M captures only fee/noninterest income, so the headline net-margin and P/S ratios are not meaningful for a bank and should be ignored.)