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

Cullen/Frost Bankers (CFR) reported $522.74 million in revenue for the quarter ended March 2024, representing a year-over-year decline of 1.6%. EPS of $2.15 for the same period compares to $2.70 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $524.89 million, representing a surprise of -0.41%. The company delivered an EPS surprise of +0.94%, with the consensus EPS estimate being $2.13.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings ...

Cullen/Frost Bankers (CFR) came out with quarterly earnings of $2.15 per share, beating the Zacks Consensus Estimate of $2.13 per share. This compares to earnings of $2.70 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 0.94%. A quarter ago, it was expected that this financial holding company would post earnings of $2.01 per share when it actually produced earnings of $2.18, delivering a surprise of 8.46%.Over the last four qu ...

[First Quarter 2024 Earnings Highlights](index=1&type=section&id=First%20Quarter%202024%20Earnings%20Highlights) Overview of Q1 2024 financial performance, including net income, EPS, and CEO commentary on growth [Q1 2024 Financial Performance Overview](index=1&type=section&id=Q1%202024%20Financial%20Performance%20Overview) Net income available to common shareholders decreased 20.4% to $134.0 million, impacted by FDIC assessment | Metric | Q1 2024 (Reported) | Q1 2024 (Adjusted for FDIC) | Q1 2023 | | :------------------------------------------ | :----------------- | :-------------------------- | :----------------- | | Net Income Available to Common Shareholders | $134.0 million | ~$140.1 million | N/A (implied by % change) | | Diluted EPS | $2.06 | $2.15 | $2.70 | | Return on Average Assets | 1.09% | 1.14% | 1.39% | | Return on Average Common Equity | 15.22% | 15.92% | 22.59% | - The Q1 2024 results were impacted by a **$7.7 million** (**$6.1 million** after tax) addition to the estimated FDIC special assessment[2](index=2&type=chunk) - Excluding this, net income available to common shareholders would have been approximately **$140.1 million**, and EPS **$2.15**[2](index=2&type=chunk) [CEO Commentary](index=2&type=section&id=CEO%20Commentary) CEO Phil Green highlighted solid Q1 earnings from organic growth, steady loans, and expanding customer relationships - Solid earnings for Q1 2024 are attributed to the company's organic growth strategy and the hard work of its bankers[9](index=9&type=chunk) - Frost experienced a steady increase in loans and consistent growth in both commercial and consumer relationships, reflecting enduring strength and stability[9](index=9&type=chunk) - The company continues to invest in future growth, including opening a second new location in its Austin expansion on April 1[9](index=9&type=chunk) [Detailed Financial Review](index=2&type=section&id=Detailed%20Financial%20Review) Comprehensive review of net interest income, non-interest income and expense, and credit quality for Q1 2024 [Net Interest Income and Margin](index=2&type=section&id=Net%20Interest%20Income%20and%20Margin) Net interest income decreased 3.4% to $411.4 million, with margin at 3.48%; average loans grew 10.4% | Metric | Q1 2024 | Q4 2023 | Q1 2023 | YoY Change (Q1 24 vs Q1 23) | QoQ Change (Q1 24 vs Q4 23) | | :-------------------------------------- | :--------------- | :--------------- | :--------------- | :-------------------------- | :-------------------------- | | Net Interest Income (Taxable-Equivalent) | $411.4 million | $409.9 million | $425.844 million | -3.4% | +0.37% | | Net Interest Margin | 3.48% | 3.41% | 3.47% | +0.01 pp | +0.07 pp | | Average Loans | $19.1 billion | $18.6 billion | $17.3 billion | +10.4% | +2.7% | | Average Deposits | $40.7 billion | $41.184 billion | $42.8 billion | -4.8% | -1.1% | - Average non-interest-bearing deposits were down **$720.2 million** (4.9%) from Q4 2023, while average interest-bearing deposits were up **$261.0 million** (1.0%) from Q4 2023[25](index=25&type=chunk) [Non-Interest Income](index=2&type=section&id=Non-Interest%20Income) Total non-interest income increased 5.8% to $111.4 million, driven by trust fees and service charges | Non-Interest Income Category | Q1 2024 ($M) | Q1 2023 ($M) | YoY Change ($M) | YoY Change (%) | | :------------------------------------ | :----------- | :----------- | :-------------- | :------------- | | Total Non-Interest Income | 111.4 | 105.3 | +6.1 | +5.8% |\ | Trust and Investment Management Fees | N/A | N/A | +2.9 | +8.1% |\ | Service Charges on Deposit Accounts | N/A | N/A | +2.9 | +13.3% |\ | Other Non-Interest Income | N/A | N/A | +0.991 | +8.5% | - The increase in trust and investment management fees was primarily related to an increase in investment management fees, driven by an increase in the value of customer assets under management[27](index=27&type=chunk) - Service charges on deposit accounts increased due to increases in commercial service charges (**$1.4 million**) and commercial and consumer overdraft charges (**$1.3 million**)[27](index=27&type=chunk) [Non-Interest Expense](index=3&type=section&id=Non-Interest%20Expense) Non-interest expense rose 14.4% to $326.2 million, primarily due to salaries, benefits, and FDIC assessment | Non-Interest Expense Category | Q1 2024 ($M) | Q1 2023 ($M) | YoY Change ($M) | YoY Change (%) | | :---------------------------------------- | :----------- | :----------- | :-------------- | :------------- | | Total Non-Interest Expense | 326.2 | 285.1 | +41.1 | +14.4% |\ | Total Non-Interest Expense (Excl. FDIC) | N/A | N/A | +33.4 | +11.7% |\ | Salaries and Wages | N/A | N/A | +17.7 | +13.5% |\ | Employee Benefits | N/A | N/A | +2.0 | +6.0% |\ | Other Non-Interest Expense | N/A | N/A | +9.0 | +17.3% |\ | Technology, Furniture, and Equipment | N/A | N/A | +2.5 | +7.7% | - The increase in salaries and wages was primarily related to annual merit and market increases and an increase in the number of employees, partly due to investment in organic expansion in Houston, Dallas, and Austin markets[11](index=11&type=chunk) - Technology, furniture, and equipment expense increased by **7.7%** primarily due to increases in cloud services expense[28](index=28&type=chunk) [Credit Quality](index=4&type=section&id=Credit%20Quality) Credit loss expense increased to $13.7 million, with non-accrual loans rising significantly to $71.5 million | Metric | Q1 2024 ($M) | Q4 2023 ($M) | Q1 2023 ($M) | YoY Change (Q1 24 vs Q1 23) | | :---------------------------------------- | :----------- | :----------- | :----------- | :-------------------------- | | Credit Loss Expense | 13.7 | 16.0 | 9.1 | +49.9% |\ | Net Charge-offs | 7.3 | 10.9 | 8.8 | -16.3% |\ | Allowance for Credit Losses on Loans (% of total loans) | 1.29% | 1.31% | 1.32% | -0.03 pp |\ | Non-accrual Loans | 71.5 | 60.9 | 38.4 | +86.2% | - Non-accrual loans as a percentage of total loans increased to **0.37%** in Q1 2024 from **0.22%** in Q1 2023[12](index=12&type=chunk) [Corporate Information and Outlook](index=4&type=section&id=Corporate%20Information%20and%20Outlook) Key corporate details, dividend declarations, forward-looking statements, and investor relations information [Dividend Declaration](index=4&type=section&id=Dividend%20Declaration) The board declared Q2 cash dividends of $0.92 per common share and $11.125 per Series B Preferred share | Dividend Type | Amount per Share | Record Date | Payment Date | | :------------------------ | :--------------- | :---------- | :----------- | | Common Stock | $0.92 | May 31, 2024| June 14, 2024|\ | Series B Preferred Stock | $11.125 | May 31, 2024| June 17, 2024|\ | Series B Depositary Share | $0.278125 | May 31, 2024| June 17, 2024| [Company Profile](index=5&type=section&id=Company%20Profile) Cullen/Frost Bankers, Inc., a San Antonio-based financial holding company, manages $49.5 billion in assets - Cullen/Frost Bankers, Inc. is a financial holding company headquartered in San Antonio, with **$49.5 billion** in assets at March 31, 2024[6](index=6&type=chunk) - Frost provides a wide range of banking, investments, and insurance services to businesses and individuals across Texas in key regions like Austin, Dallas, Houston, and San Antonio[6](index=6&type=chunk) - Founded in 1868, Frost has a history spanning three centuries, assisting clients with their financial needs[6](index=6&type=chunk) [Forward-Looking Statements and Risk Factors](index=6&type=section&id=Forward-Looking%20Statements%20and%20Risk%20Factors) Forward-looking statements are subject to risks from economic conditions, interest rates, regulations, and geopolitical events - Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those projected[15](index=15&type=chunk)[32](index=32&type=chunk) - Factors that could affect future results include changes in monetary and fiscal policies, inflation, interest rates, economic conditions, credit performance, technological changes, cyber incidents, and regulatory developments[32](index=32&type=chunk) - Financial markets and global supply chains may also be adversely affected by current or anticipated impacts of global wars/military conflicts, terrorism, or other geopolitical events[16](index=16&type=chunk) [Conference Call and Investor Relations](index=1&type=section&id=Conference%20Call%20and%20Investor%20Relations) A conference call for Q1 results was held on April 25, 2024, with playback and investor info online - A conference call to discuss Q1 2024 results was held on Thursday, April 25, 2024, at 1 p.m. Central Time (CT)[29](index=29&type=chunk) - Playback of the conference call was available until midnight Sunday, April 28, 2024[29](index=29&type=chunk) - Additional investor information and webcast replays are available on the Cullen/Frost investor relations website: https://investor.frostbank.com/[13](index=13&type=chunk)[29](index=29&type=chunk) [Consolidated Financial Summary (Unaudited)](index=7&type=section&id=Consolidated%20Financial%20Summary%20(Unaudited)) Unaudited consolidated financial statements, including income statements, balance sheets, and capital ratios [Condensed Income Statements](index=7&type=section&id=Condensed%20Income%20Statements) Unaudited condensed income statements detail quarterly financial performance, including net income and EPS, for Q1 2024 and 2023 | Metric | 2024 1st Qtr ($K) | 2023 4th Qtr ($K) | 2023 3rd Qtr ($K) | 2023 2nd Qtr ($K) | 2023 1st Qtr ($K) | | :-------------------------------------- | :---------------- | :---------------- | :---------------- | :---------------- | :---------------- | | Net interest income | $390,051 | $388,152 | $385,426 | $385,266 | $399,820 |\ | (1) Net interest income (Taxable-equiv) | 411,367 | 409,904 | 407,353 | 408,594 | 425,844 |\ | Credit loss expense | 13,650 | 15,981 | 11,185 | 9,901 | 9,104 |\ | Total non-interest income | 111,377 | 113,751 | 105,998 | 103,528 | 105,265 |\ | Total non-interest expense | 326,217 | 365,222 | 293,256 | 285,042 | 285,142 |\ | Income before income taxes | 161,561 | 120,700 | 186,983 | 193,851 | 210,839 |\ | Net income | 135,690 | 102,551 | 155,651 | 162,118 | 177,653 |\ | Net income available to common shareholders | $134,021 | $100,882 | $153,983 | $160,449 | $175,984 |\ | Earnings per common share - diluted | $2.06 | $1.55 | $2.38 | $2.47 | $2.70 |\ | Return on average assets | 1.09% | 0.82% | 1.25% | 1.30% | 1.39% |\ | Return on average common equity | 15.22% | 13.51% | 18.93% | 19.36% | 22.59% | [Balance Sheet Summary and Asset Quality](index=8&type=section&id=Balance%20Sheet%20Summary%20and%20Asset%20Quality) Summary of average and period-end balance sheet items, asset quality metrics, and consolidated capital ratios | Balance Sheet Metric | 2024 1st Qtr ($M) | 2023 4th Qtr ($M) | 2023 3rd Qtr ($M) | 2023 2nd Qtr ($M) | 2023 1st Qtr ($M) | | :---------------------------------------- | :---------------- | :---------------- | :---------------- | :---------------- | :---------------- | | **Average Balance:** | | | | | |\ | Loans | $19,112 | $18,609 | $17,965 | $17,664 | $17,319 |\ | Total assets | 49,324 | 49,087 | 48,804 | 49,317 | 51,307 |\ | Total deposits | 40,724 | 41,184 | 40,828 | 41,007 | 42,757 |\ | Shareholders' equity | 3,687 | 3,108 | 3,372 | 3,470 | 3,305 |\ | **Period-End Balance:** | | | | | |\ | Loans | $19,388 | $18,824 | $18,399 | $17,746 | $17,486 |\ | Total assets | 49,505 | 50,845 | 48,747 | 48,597 | 51,246 |\ | Total deposits | 40,806 | 41,921 | 40,992 | 40,701 | 42,184 |\ | Shareholders' equity | 3,638 | 3,716 | 3,000 | 3,387 | 3,468 | | Asset Quality Metric | 2024 1st Qtr ($K) | 2023 4th Qtr ($K) | 2023 3rd Qtr ($K) | 2023 2nd Qtr ($K) | 2023 1st Qtr ($K) | | :---------------------------------------- | :---------------- | :---------------- | :---------------- | :---------------- | :---------------- | | Allowance for credit losses on loans | $250,297 | $245,996 | $242,235 | $233,619 | $231,514 |\ | As a percentage of period-end loans | 1.29% | 1.31% | 1.32% | 1.32% | 1.32% |\ | Net charge-offs | $7,349 | $10,884 | $4,992 | $9,828 | $8,782 |\ | Non-accrual loans | $71,515 | $60,907 | $67,175 | $67,781 | $38,410 |\ | As a percentage of total loans | 0.37% | 0.32% | 0.37% | 0.38% | 0.22% | | Capital Ratio | 2024 1st Qtr | 2023 4th Qtr | 2023 3rd Qtr | 2023 2nd Qtr | 2023 1st Qtr | | :---------------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Common Equity Tier 1 Risk-Based Capital Ratio | 13.41% | 13.25% | 13.32% | 13.42% | 13.24% |\ | Tier 1 Risk-Based Capital Ratio | 13.89% | 13.73% | 13.81% | 13.92% | 13.74% |\ | Total Risk-Based Capital Ratio | 15.35% | 15.18% | 15.28% | 15.39% | 15.22% |\ | Leverage Ratio | 8.44% | 8.35% | 8.17% | 8.11% | 7.69% |\ | Equity to Assets Ratio (period-end) | 7.35% | 7.31% | 6.15% | 6.97% | 6.77% | [Taxable-Equivalent Yield/Cost and Average Balances](index=9&type=section&id=Taxable-Equivalent%20Yield%2FCost%20and%20Average%20Balances) Details taxable-equivalent yields on earning assets, costs on interest-bearing liabilities, and corresponding average balances | Metric | 2024 1st Qtr | 2023 4th Qtr | 2023 3rd Qtr | 2023 2nd Qtr | 2023 1st Qtr | | :---------------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | **Earning Assets Yields:** | | | | | |\ | Interest-bearing deposits | 5.40% | 5.39% | 5.33% | 5.05% | 4.57% |\ | Loans, net of unearned discounts | 7.00% | 6.92% | 6.83% | 6.64% | 6.36% |\ | Total earning assets | 5.13% | 5.00% | 4.92% | 4.77% | 4.57% |\ | **Interest-Bearing Liabilities Costs:** | | | | | |\ | Total interest-bearing deposits | 2.34% | 2.27% | 2.12% | 1.87% | 1.52% |\ | Total interest-bearing liabilities | 2.54% | 2.48% | 2.33% | 2.11% | 1.79% |\ | Net interest spread | 2.59% | 2.52% | 2.59% | 2.66% | 2.78% |\ | Net interest income to total average earning assets | 3.48% | 3.41% | 3.44% | 3.45% | 3.47% | | Average Balances ($M) | 2024 1st Qtr | 2023 4th Qtr | 2023 3rd Qtr | 2023 2nd Qtr | 2023 1st Qtr | | :---------------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | **Earning Assets:** | | | | | |\ | Interest-bearing deposits | $7,356 | $7,047 | $6,747 | $6,880 | $8,687 |\ | Loans, net of unearned discount | 19,112 | 18,609 | 17,965 | 17,664 | 17,319 |\ | Total earning assets | 45,883 | 45,579 | 45,366 | 45,929 | 47,904 |\ | **Interest-Bearing Liabilities:** | | | | | |\ | Total interest-bearing deposits | 26,748 | 26,487 | 26,005 | 25,776 | 26,121 |\ | Total interest-bearing liabilities | 30,791 | 30,488 | 29,785 | 29,750 | 30,606 |

Wall Street analysts forecast that Cullen/Frost Bankers (CFR) will report quarterly earnings of $2.13 per share in its upcoming release, pointing to a year-over-year decline of 21.1%. It is anticipated that revenues will amount to $524.93 million, exhibiting a decline of 1.2% compared to the year-ago quarter.The consensus EPS estimate for the quarter has undergone a downward revision of 0.2% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have re ...

Cullen/Frost Bankers, Inc.’s (CFR) strong loan book, solid net interest income (NII) and steady capital distribution activities are positives. Also, efforts to expand its presence in Texas bode well for CFR's long-term growth. However, the company is affected by mounting costs and an undiversified loan portfolio.CFR’s deposits witnessed a five-year compound annual growth rate (CAGR) of 9.1% (2018-2023), while loans, net of unearned discounts, recorded a CAGR of 6%. Moreover, branch openings in 2024 will lik ...

SAN ANTONIO, Feb. 21, 2024 /PRNewswire/ -- Frost Bank, one of the largest banks based in Texas, received 34 Greenwich Excellence and Best Brand Awards – the highest amount received nationwide for the eighth consecutive year – for providing superior service, advice and performance to small-business and middle-market banking clients. As in previous years, Frost is the only Texas-based bank to receive national recognition for "Overall Satisfaction" and "Likelihood to Recommend" in both the middle-market and sm ...

| --- | --- | --- | --- | --- | --- | --- | --- | |---------------------------------|--------|--------------------------|-------|------------------------------|-------|---------------|-----------------------------------------------------------------------------| | 2023 | Credit | Loss Expense (Benefit) | | Net (Charge-Offs) Recoveries | | Average Loans | Ratio of Annualized Net (Charge-Offs) Recoveries to Average Loans | | Commercial and industrial | $ | (16,709) | $ | (13,522) | $ | 5,734,509 | (0.24)% | | ...

Dilok Klaisataporn/iStock via Getty Images MoneyShow’s top contributing analysts, strategists, and newsletter editors share their investment recommendations for the year ahead. See Part 2 here. Celldex Therapeutics By John McCamant, Editor of The Medical Technology Stock Letter Celldex Therapeutics (CLDX) is one of our top picks for 2024. The recently reported 208-patient trial with the first-ever subcutaneous (SC) version of CLDX’s barzo in CSU confirmed that it is the Best-In-Class compound with the f ...

SAN ANTONIO, Jan. 26, 2024 /PRNewswire/ -- The board of directors of Cullen/Frost Bankers, Inc. (NYSE: CFR) announced that Hope Andrade has been elected to the board. Andrade will join the board's Audit and Risk committees."We're fortunate to add someone of Hope's experience and prestige to our board of directors," said Phil Green, Cullen/Frost Chairman and CEO. "She is a longtime Texas entrepreneur and leader with a wealth of knowledge about the workings of our state. All of us look forward to having her p ...