Cullen/Frost Bankers(US:CFR)2025-10-30 13:35Financial Performance - Net income available to common shareholders for Q3 2025 was $172.7 million, up 19.3% from $144.8 million in Q3 2024, with diluted EPS increasing to $2.67 from $2.24[2][3] - Non-interest income for Q3 2025 totaled $125.6 million, up 10.5% from $113.7 million in Q3 2024[6] - Non-interest expense was $352.5 million in Q3 2025, an increase of 9.0% from $323.4 million in Q3 2024[6][7] - Credit loss expense for Q3 2025 was $6.8 million, down from $19.4 million in Q3 2024, with net loan charge-offs of $6.6 million compared to $9.6 million a year earlier[7] - Net income available to common shareholders for Q3 2025 was $172.7 million, compared to $155.3 million in Q2 2025, reflecting a 11.2% increase[16] - Earnings per common share (diluted) for Q3 2025 was $2.67, up from $2.39 in Q2 2025, indicating a 11.8% growth[16] - Net income available to common shareholders reached $477,299, a 12.9% increase from $422,684 in 2024[20] - Earnings per common share (basic) improved to $7.36, up from $6.52, marking a growth of 12.8%[20] Income and Expenses - Net interest income on a taxable-equivalent basis for Q3 2025 was $463.7 million, a 9.1% increase from $425.2 million in Q3 2024[3][6] - Net interest income for Q3 2025 was $441.6 million, an increase from $429.6 million in Q2 2025, representing a 2.3% quarter-over-quarter growth[16] - Total non-interest income reached $125.6 million in Q3 2025, up from $117.3 million in Q2 2025, marking a 7.3% increase[16] - Net interest income for the nine months ended September 30, 2025, increased to $1,287,442, up from $1,191,094 in 2024, representing a growth of 8.1%[20] - Total non-interest income rose to $366,931, compared to $336,274 in the previous year, reflecting an increase of 9.1%[20] Loans and Deposits - Average loans increased by $1.4 billion, or 6.8%, to $21.5 billion in Q3 2025 compared to $20.1 billion in Q3 2024[3][5] - Average loans for Q3 2025 were $21.5 billion, up from $21.1 billion in Q2 2025, showing a 1.8% increase[18] - Loans averaged $21,103 million, up from $19,618 million, representing an increase of 7.6%[22] - Average deposits rose by $1.3 billion, or 3.3%, to $42.1 billion in Q3 2025 from $40.7 billion in Q3 2024[3][5] Capital and Ratios - The Common Equity Tier 1 capital ratio was 14.14% at the end of Q3 2025, exceeding Basel III minimum requirements[6] - Common Equity Tier 1 Risk-Based Capital Ratio improved to 14.14% in Q3 2025 from 13.98% in Q2 2025[18] - Common Equity Tier 1 Risk-Based Capital Ratio improved to 14.14%, compared to 13.55% in the previous year[22] Asset Management - Total assets as of Q3 2025 were $52.5 billion, an increase from $51.4 billion in Q2 2025, representing a 2.1% growth[18] - Total assets as of September 30, 2025, were $52,533, an increase from $51,008 in 2024, indicating a growth of 3.0%[22] Dividends - The board declared a fourth-quarter cash dividend of $1.00 per common share, payable on December 15, 2025[8] - Cash dividends per common share remained stable at $1.00 for both Q3 2025 and Q2 2025[16] - Cash dividends per common share increased to $2.95, compared to $2.79 in the previous year, reflecting a growth of 5.7%[20] Strategic Focus - Cullen/Frost is focused on expanding its market presence and enhancing digital banking tools to improve customer experience[4] Loan Quality - The allowance for credit losses on loans was $280.2 million, representing 1.31% of period-end loans in Q3 2025, consistent with Q2 2025[18] - Non-accrual loans decreased to $44.8 million in Q3 2025 from $62.4 million in Q2 2025, a reduction of 28.0%[18]