All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.Cash flow can come from bond interest, interest from other types of investments, and of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that meas ...

Cullen/Frost Bankers (CFR) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.Since a changing e ...

Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view i ...

Cullen/Frost Bankers, Inc. (CFR) reported first-quarter 2025 earnings per share of $2.30, up 6.9% from the prior-year quarter. The bottom line surpassed the Zacks Consensus Estimate by 5.9%.Results were primarily aided by a rise in non-interest income and net interest income (NII), alongside higher loan and deposit balances in the quarter. However, increased credit loss expenses were significant drags.The company reported net income available to its common shareholders of $149.3 million, up 11.4% from the p ...

United States Securities and Exchange Commission Washington, D.C. 20549 Form 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended: March 31, 2025 Or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from ________________ to ________________ Commission file number: 001-13221 | | Trading | Name of each exchange on | | --- | --- | --- | | Title of each class | Symbol(s) | ...

Cullen/Frost Bankers (CFR) Q1 2025 Earnings Call May 01, 2025 02:00 PM ET Company Participants AB Mendez - Director - IRPhillip Green - Chairman & CEODan Geddes - CFOJared Shaw - Managing DirectorCatherine Mealor - Managing DirectorMichael Rose - Managing DirectorJon Arfstrom - Managing Director - Associate Director of US Research Conference Call Participants Casey Haire - Senior Research Analyst, Mid-Cap BanksManan Gosalia - AnalystPeter Winter - Managing Director - Senior Research Analyst Operator Greetin ...

Financial Data and Key Metrics Changes - In Q1 2025, Cullen/Frost earned $149.3 million or $2.3 per share, compared to $134 million or $2.06 per share in the same quarter last year, representing a year-over-year increase in earnings [4] - Return on average assets and average common equity were 1.19% and 15.54% respectively, compared to 1.09% and 15.22% in the same quarter last year [5] - Average deposits increased by 2.3% to $41.7 billion from $40.7 billion year-over-year, while average loans grew by 8.8% to $20.8 billion from $19.1 billion [5] Business Line Data and Key Metrics Changes - Average consumer deposits, making up 47% of the deposit base, grew by 3.8% year-over-year, while average consumer loan balances increased by 20.5% [7][8] - In the commercial banking sector, average loan balances grew by $1.1 billion or 6.6% year-over-year, with commercial real estate (CRE) balances increasing by 8.9% and energy balances by 19.8% [10] - New loan commitments totaled $1.28 billion in Q1 2025, up 1.5% from $1.26 billion in Q1 2024 [10] Market Data and Key Metrics Changes - The overall expansion efforts generated $2.64 billion in deposits and $1.9 billion in loans, exceeding goals by 27% and 402% respectively [6] - Non-performing assets declined to $85 million at the end of Q1 2025 from $93 million at year-end, representing 41 basis points of period-end loans [12] Company Strategy and Development Direction - The company continues to focus on organic growth and expansion, with plans to open its 200th financial center in the Austin region [5][6] - The strategy has resulted in a 50% increase in financial centers since late 2018, with ongoing identification of new Texas locations for expansion [6] - The company aims for its expansion efforts to be accretive to earnings beginning in 2026 [6] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the consumer banking business, citing strong customer satisfaction and a leading position in Texas for consumer banking satisfaction [8] - The company anticipates net interest income growth for the full year 2025 to be in the range of 5% to 7%, up from prior guidance of 4% to 6% [23] - Management noted that while some commercial customers are cautious, there is a high degree of confidence in their ability to pass on costs to consumers [37] Other Important Information - The net interest margin increased by 7 basis points to 3.6% due to higher yielding taxable securities and loans [18] - The investment portfolio averaged $19.4 billion during Q1 2025, with a net unrealized loss of $1.4 billion, a decrease from the previous quarter [19] - The company recorded a 15% year-over-year increase in insurance commissions, driven by better alignment with the commercial banking group [81] Q&A Session Summary Question: How should we think about the deposit beta on interest-bearing deposits? - The cumulative beta is about 47%, with spot beta around 50%, expected to hold as rate cuts occur [30] Question: What is the trajectory for expenses throughout the year? - Expenses are expected to be in the high single digits, with technology costs continuing to rise [32][34] Question: What is the sentiment among commercial customers regarding investments? - Some customers are waiting for clarity on tariffs and costs, but there is a high level of confidence in passing costs along [37] Question: Why is the loan growth guidance unchanged despite a strong pipeline? - Headwinds from commercial real estate payoffs are affecting loan growth, despite a strong pipeline [43] Question: What is the outlook for non-interest income growth? - Non-interest income growth is expected to be driven by increased volume from new relationships and insurance commissions [108]

Core Insights - Cullen/Frost Bankers (CFR) reported revenue of $560.42 million for Q1 2025, a year-over-year increase of 7.2% and exceeding the Zacks Consensus Estimate of $550.38 million by 1.82% [1] - The earnings per share (EPS) for the same quarter was $2.30, up from $2.15 a year ago, and also surpassed the consensus EPS estimate of $2.17 by 5.99% [1] Financial Metrics - Net loan charge-offs to average loans were 0.2%, better than the estimated 0.3% [4] - Total earning assets averaged $47.42 billion, slightly below the average estimate of $47.91 billion [4] - Net Interest Margin (FTE) was reported at 3.6%, matching the three-analyst average estimate [4] - Total Non-Performing Loans were $83.53 million, higher than the average estimate of $79.87 million [4] - Book value per common share at the end of the quarter was $61.74, exceeding the estimated $60.28 [4] - Total Non-Interest Income reached $124.01 million, surpassing the average estimate of $117.23 million [4] - Net Interest Income (FTE) was $436.40 million, slightly above the average estimate of $433.15 million [4] - Service charges on deposit accounts totaled $28.62 million, exceeding the estimated $26.79 million [4] - Net Interest Income was reported at $416.22 million, below the average estimate of $417.56 million [4] - Insurance commissions and fees were $21.02 million, higher than the estimated $18.29 million [4] - Trust and investment management fees reached $42.93 million, exceeding the average estimate of $41.20 million [4] - Other charges, commissions, and fees totaled $13.59 million, slightly above the estimated $13.38 million [4] Stock Performance - Shares of Cullen/Frost have returned -6.6% over the past month, compared to the Zacks S&P 500 composite's -0.7% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Cullen/Frost Bankers (CFR) came out with quarterly earnings of $2.30 per share, beating the Zacks Consensus Estimate of $2.17 per share. This compares to earnings of $2.15 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 5.99%. A quarter ago, it was expected that this financial holding company would post earnings of $2.17 per share when it actually produced earnings of $2.36, delivering a surprise of 8.76%.Over the last four qu ...

Financial Performance - Net income available to common shareholders for Q1 2025 was $149.3 million, up from $134.0 million in Q1 2024, representing a 11.8% increase[2] - Net income per diluted common share for Q1 2025 was $2.30, compared to $2.06 in Q1 2024, reflecting an increase of 11.6%[2] - Net income available to common shareholders for Q1 2025 was $149.25 million, compared to $153.18 million in Q4 2024, showing a decrease of 2.0%[17] - Earnings per common share (basic) for Q1 2025 was $2.30, slightly down from $2.37 in Q4 2024, a decline of 3.0%[17] Loan and Deposit Growth - Average loans increased by $1.7 billion, or 8.8%, to $20.8 billion in Q1 2025 compared to $19.1 billion in Q1 2024[3] - Average deposits rose by $933.4 million, or 2.3%, to $41.7 billion in Q1 2025 from $40.7 billion in Q1 2024[3] - Total deposits as of Q1 2025 were $41.66 billion, a slight decrease from $41.89 billion in Q4 2024, down by 0.5%[19] - Total deposits reached $41.658 billion in Q1 2025, a slight decrease from $41.885 billion in Q4 2024[20] Income and Expenses - Net interest income on a taxable-equivalent basis was $436.4 million for Q1 2025, a 6.1% increase from $411.4 million in Q1 2024[5] - Non-interest income totaled $124.0 million in Q1 2025, up $12.6 million, or 11.3%, from $111.4 million in Q1 2024[5] - Non-interest expense was $348.1 million for Q1 2025, an increase of $21.8 million, or 6.7%, compared to $326.2 million in Q1 2024[7] Credit and Capital Ratios - The company reported a credit loss expense of $13.1 million in Q1 2025, compared to $13.7 million in Q1 2024[8] - The allowance for credit losses on loans increased to $275.49 million in Q1 2025, up from $270.15 million in Q4 2024, reflecting a rise of 2.5%[19] - The Common Equity Tier 1 Risk-Based Capital Ratio improved to 13.84% in Q1 2025, compared to 13.62% in Q4 2024, an increase of 0.22 percentage points[19] Dividends and Expansion - The board declared a cash dividend of $1.00 per common share for Q2 2025, a 5.3% increase from the previous dividend of $0.95[9] - Cullen/Frost plans to open its 199th and 200th locations in Fort Worth and Pflugerville, respectively, marking a more than 50% increase in total locations since December 2018[5] Asset and Yield Metrics - Total earning assets averaged $47.424 billion in Q1 2025, slightly down from $47.577 billion in Q4 2024[20] - Interest-bearing deposits yield decreased to 4.39% in Q1 2025 from 5.40% in Q2 2024[20] - The yield on loans decreased to 6.57% in Q1 2025 from 6.77% in Q4 2024[20] - Total interest-bearing deposits yield decreased to 1.94% in Q1 2025 from 2.14% in Q4 2024[20] Other Financial Metrics - Non-accrual loans as a percentage of total loans were 0.40% in Q1 2025, slightly up from 0.38% in Q4 2024[19] - The return on average assets remained stable at 1.19% for both Q1 2025 and Q4 2024[17] - The book value per common share at the end of Q1 2025 was $61.74, an increase from $58.46 in Q4 2024, reflecting a growth of 3.9%[17] - Net interest spread improved to 2.87% in Q1 2025 compared to 2.73% in Q4 2024[20] - Total interest-bearing liabilities increased to $32.248 billion in Q1 2025 from $32.027 billion in Q4 2024[20] - Loans, net of unearned discounts, rose to $20.788 billion in Q1 2025, up from $20.346 billion in Q4 2024[20] - Securities carrying value increased to $19.384 billion in Q1 2025 from $18.640 billion in Q4 2024[20] - Federal funds sold remained stable at an average of $3 million in Q1 2025, consistent with Q4 2024[20]