In its upcoming report, Cullen/Frost Bankers (CFR) is predicted by Wall Street analysts to post quarterly earnings of $2.01 per share, reflecting a decline of 30.9% compared to the same period last year. Revenues are forecasted to be $498.09 million, representing a year-over-year decrease of 5.9%.Over the last 30 days, there has been a downward revision of 0.7% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of the ...

Cullen/Frost Bankers, Inc. (CFR) Q3 2023 Earnings Conference Call October 26, 2023 2:00 PM ET Company Participants A.B. Mendez - Director of Investor Relations Phillip Green - Chief Executive Officer Jerry Salinas - Chief Financial Officer Conference Call Participants Steven Alexopoulos - JPMorgan Chase & Co. David Rochester - Compass Point Research & Trading, LLC Ebrahim Poonawala - BofA Securities Manan Gosalia - Morgan Stanley Brady Gailey - Keefe, Bruyette & Woods, Inc. Michael Rose - Raymond James Fina ...

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: September 30, 2023 Or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from ________________ to ________________ N/A (Former name, former address and former fiscal year, if changed since last report Securities registered pursuant to Section ...

Financial Data and Key Metrics Changes - In the second quarter, the company earned $160.4 million, or $2.47 per share, representing a 36.6% increase from $117.4 million, or $1.81 per share, in the same quarter last year [29] - Return on average assets and average common equity were 1.30% and 19.36% respectively, compared to 0.92% and 13.88% for the same period last year [41] - Non-performing loans totaled $68.5 million at the end of the second quarter, up from $39.1 million at the end of the first quarter [47] Business Line Data and Key Metrics Changes - The commercial and private banking business saw a 33% increase in new customer relationships year-over-year, with 1,145 new relationships added [31] - Consumer loans ended the quarter at $2.6 billion, a 27% increase from the second quarter of last year [34] - Houston 1.0 expansion contributed $0.05 to quarterly earnings per share, with a 31% linked quarter annualized growth in average balances for deposits [52] Market Data and Key Metrics Changes - Houston led all regions with 333 net new relationships, up 63% from the previous quarter [32] - The company plans to double its locations in the Austin area from 17 to 34, capitalizing on its position in Texas's third-largest deposit market [35] - The Gulf Coast and Victoria regions produced 68 net new relationships, up by 48% [32] Company Strategy and Development Direction - The company is focused on growing its business and winning competitively, particularly in the Austin market [21] - Expansion efforts in Houston and Dallas are showing strong performance, with Dallas expansion currently at 226% of new household goals [46] - The company aims to maintain high ethical standards and safe sound assets while building long-term relationships [30] Management's Comments on Operating Environment and Future Outlook - Management expects non-performing loans to increase but remains optimistic about credit quality, stating that problem loans are still low by historical standards [10][22] - The company is cautious about the economic environment but believes in the strength of its underwriting and customer relationships [20] - Management anticipates that the pace of deposit outflows will slow down, but uncertainty remains due to attractive risk-reward options for customers [56] Other Important Information - The net unrealized loss on the available-for-sale portfolio increased to $1.61 billion, while the net unrealized loss on the held-to-maturity portfolio was $148 million [53] - The company did not take on any federal home loan bank advances or utilize any brokered deposits during the quarter [43] - The effective tax rate for the first six months of the year was approximately 16% [59] Q&A Session Summary Question: What should we expect on nonperformers? - Management expects non-performing loans to increase but emphasizes that they are currently at low levels and manageable [9][10] Question: How long does it take Houston 1.0 to reach corporate-wide profitability? - It is projected to take about 27 months for Houston 1.0 to break even [24] Question: What is the financial impact of the Austin expansion? - Significant impacts are not expected in 2023, with more substantial effects anticipated in the following year [95] Question: Why are non-interest-bearing deposits continuing to decline? - Management noted that customers are taking longer to stabilize their operating cash needs, leading to continued outflows [91] Question: What is the outlook for deposit beta next year? - Management does not expect much change in deposit beta, aiming to remain competitive with peers [130]

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-----------------------------------------------------|-------|----------------------|------------|-------------------------------------------------------|--------------|----------------------|--------------|---------------------------------------------------|-------------| | | | Average Balance | To 30, | Quarter Date June 2023 \nInterest Expense Income/ | Yield/ Cost | Average Balance | Quarter June | To Date 30, 2022 \nInterest Expense Income/ ...

Cullen/Frost Bankers, Inc. (CFR) Q1 2023 Results Conference Call April 27, 2022 2:00 PM ET Company Participants A.B. Mendez - Senior Vice President and Director of Investor Relations Phillip Green - Chairman and Chief Executive Officer Jerry Salinas - Executive Vice President and Chief Financial Officer Conference Call Participants Steven Alexopoulos - JPMorgan Chase & Co Peter Winter - D.A. Davidson Brady Gailey - Keefe Bruyette & Woods Ebrahim Poonawala - BofA Securities Manan Gosalia - Morgan Stanley Bro ...

| --- | --- | --- | --- | |-----------------------------------------|-----------------------------------------|----------------------------|--------------------------------------------| | | | | | | | | | | | | file number: | Commission | 001-13221 | | (Exact | name of registrant as specified | Cullen/Frost Bankers, Inc. | in its charter) | | Texas | | | 74-1751768 | | (State or other jurisdiction of | or organization) | incorporation | (I.R.S. Employer Identification No.) | | 111 W. Houston Street, | San An ...

Table of Contents If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ ITEM 1. BUSINESS ☒ Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 | --- | --- | |---------------------|-------| | | | | | | | | | | | | | | | | | | | (I.R.S. Employer | | | | | | Identification No.) | | ...

Cullen/Frost Bankers, Inc. (CFR) Q4 2022 Earnings Conference Call January 26, 2023 2:00 PM ET Corporate Participants A.B. Mendez - Senior Vice President and Director-Investor Relations Phil Green - Chairman and Chief Executive Officer Jerry Salinas - Group Executive Vice President and Chief Financial Officer Conference Call Participants Ebrahim Poonawala - Bank of America Steven Alexopoulos - JPMorgan Dave Rochester - Compass Point Brady Gailey - KBW Manan Gosalia - Morgan Stanley Peter Winter - D.A. Davids ...

Financial Data and Key Metrics Changes - In Q3 2022, Cullen/Frost earned $168.1 million or $2.59 per share, compared to $106.3 million or $1.65 per share in Q3 2021, and $117.4 million or $1.81 per share in Q2 2022 [7] - Return on average assets and average common equity were 1.27% and 20.13%, respectively, indicating strong performance and effective growth strategies [8] - Average loans, excluding PPP, were $16.75 billion, a 13% increase from $14.82 billion in Q3 2021, and a 5% increase on a linked-quarter basis [9] Business Line Data and Key Metrics Changes - Average consumer loans reached $2.1 billion, up 15.9% year-over-year, primarily driven by consumer real estate products [12] - New commercial commitments totaled $2.04 billion, up 12% year-over-year, but down 7% from the previous quarter [10] - Total delinquencies, excluding PPP, were $80.5 million, or 48 basis points of total loans, indicating stable credit quality [17] Market Data and Key Metrics Changes - Average deposits in Q3 were $45.8 billion, a 17% increase compared to Q3 2021, and up 9.6% on an annualized basis from the previous quarter [11] - The Houston expansion branches generated approximately $1 billion in deposits, with loans of $765 million and over 18,000 new households [13] - The Dallas branches opened earlier in the month achieved 356% of deposit goals and 290% of loan goals [14] Company Strategy and Development Direction - The company is focused on sustainable organic growth, with a strategy to expand its presence in Texas through new branches and enhanced customer relationships [20] - A new mortgage loan process is being developed, with plans for a pilot program to launch soon [16] - The company aims to maintain a strong customer service focus while investing in technology and marketing to enhance its competitive position [64] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate economic challenges, emphasizing strong credit quality and effective risk management [20][81] - The outlook for consumer loans remains positive, with expectations for continued growth in the consumer banking sector [12] - Management indicated that they do not foresee significant issues with asset quality, despite potential risks in commercial real estate [81] Other Important Information - The net interest margin for Q3 was 3.01%, up 45 basis points from the previous quarter, driven by higher yields on loans and balances held at the Fed [22] - Total noninterest expenses increased by $11.6 million or 4.7% from the previous quarter, primarily due to higher salaries and wages [29] - The effective tax rate for Q3 was 14%, with expectations for the full year to be in the range of 13% to 14% [30] Q&A Session Summary Question: What drove the growth of noninterest-bearing deposits? - Management noted that while there are concerns about larger balances, they have managed to offset reductions and continue to build relationships, with 55% of deposit growth from existing customers and 45% from new customers [33] Question: What is the outlook for the TCE ratio? - Management indicated that the TCE ratio is not a major concern, and future movements will depend on interest rates rather than just payoffs [35][36] Question: How is the customer reception to higher deposit rates? - Management reported continued growth in retail numbers and deposits, indicating a positive reception to higher rates [41] Question: What are the expectations for net interest income (NII) and net interest margin (NIM)? - Management expects NIM and NII to increase in Q4, with a positive trajectory into 2023 [47] Question: What is the outlook for deposit growth in 2023? - Management anticipates softer growth compared to previous quarters, particularly for larger customers, but remains optimistic due to branch expansions and competitive rates [56] Question: Are there any concerns regarding asset quality trends? - Management stated that there are currently no significant weaknesses in asset quality, although they are monitoring commercial real estate closely [81] Question: What is the plan for branch expansion? - Management plans to open approximately 20 more branches in Dallas and Houston, continuing to explore attractive markets in Texas [87][88]