Cullen/Frost Bankers(CFR) - 2025 Q1 - Quarterly Results

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]