In This Article:
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Earnings: $149.3 million or $2.30 per share, compared to $134 million or $2.06 per share in the same quarter last year.
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Return on Average Assets: 1.19%, up from 1.09% last year.
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Return on Average Common Equity: 15.54%, compared to 15.22% last year.
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Average Deposits: $41.7 billion, a 2.3% increase from $40.7 billion last year.
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Average Loans: $20.8 billion, an 8.8% increase from $19.1 billion last year.
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Net Interest Margin: 3.60%, up 7 basis points from 3.53% last quarter.
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Net Charge-Offs: $9.7 million, compared to $14 million last quarter and $7.3 million a year ago.
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Nonperforming Assets: $85 million, down from $93 million at year-end.
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New Loan Commitments: $1.28 billion, up 1.5% from $1.26 billion last year.
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Consumer Loan Growth: 20.5% year-over-year.
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Commercial Loan Growth: $1.1 billion or 6.6% year-over-year.
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CRE Balances Growth: 8.9% year-over-year.
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Energy Balances Growth: 19.8% year-over-year.
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Consumer Checking Customer Growth: 5.7% year-over-year.
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Financial Centers: Reached 200 locations, up from around 130 in late 2018.
Release Date: May 01, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Cullen/Frost Bankers Inc (NYSE:CFR) reported a significant increase in earnings, with $149.3 million or $2.30 per share, compared to $134 million or $2.06 per share in the same quarter last year.
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The company achieved a return on average assets of 1.19% and a return on average common equity of 15.54%, both showing improvement from the previous year.
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Cullen/Frost Bankers Inc (NYSE:CFR) continues to expand its presence, with plans to open its 200th financial center, marking a 50% increase in locations since 2018.
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The consumer banking segment showed strong growth, with average consumer loan balances increasing by 20.5% year-over-year.
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The company was recognized by J.D. Power as number one in Texas for consumer banking satisfaction for the 16th consecutive year, highlighting its strong customer service reputation.
Negative Points
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Average total deposits decreased by $228 million from the previous quarter, primarily due to lower noninterest-bearing accounts, following normal seasonal trends.
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The company faces headwinds from commercial real estate (CRE) payoffs, impacting loan growth despite a strong pipeline.
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Net charge-offs increased to $9.7 million from $7.3 million a year ago, indicating some deterioration in credit quality.
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The cost of interest-bearing deposits remains a concern, although it decreased to 1.94% from 2.14% in the previous quarter.
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Cullen/Frost Bankers Inc (NYSE:CFR) anticipates four rate cuts in 2025, which could impact net interest income growth if fewer cuts occur.