Cullen/Frost Bankers(US:CFR) ZACKSยท2025-05-02 17:35Core Viewpoint - Cullen/Frost Bankers, Inc. (CFR) reported a strong first-quarter 2025 performance with earnings per share of $2.30, reflecting a 6.9% increase year-over-year, surpassing the Zacks Consensus Estimate by 5.9% [1][2] Financial Performance - The net income available to common shareholders was $149.3 million, up 11.4% from the prior-year quarter [2] - Total revenues reached $560.4 million, marking a 7.2% year-over-year increase and exceeding the Zacks Consensus Estimate by 1.8% [3] - Net interest income (NII) on a taxable-equivalent basis increased by 6.1% to $436.4 million year-over-year, while the net interest margin (NIM) expanded by 12 basis points to 3.60% [3] - Non-interest income improved by 11.3% year-over-year to $124 million, driven by increases in all components except for other non-interest income [4] Expenses and Credit Quality - Non-interest expenses rose by 6.7% year-over-year to $349.8 million, with a notable increase of 9.3% to $377.7 million when excluding special surcharge expenses related to FDIC insurance [5] - Credit loss expenses were recorded at $13.1 million, slightly down from $13.7 million in the prior-year quarter, but the allowance for credit losses on loans increased to 1.32% of total loans [7] Capital Ratios and Profitability - The Tier 1 risk-based capital ratio improved to 14.30%, up from 13.89% a year earlier, while the total risk-based capital ratio rose to 15.76% from 15.35% [8] - Return on average assets and return on average common equity were reported at 1.19% and 15.54%, respectively, compared to 1.09% and 15.22% in the prior-year quarter [9] Strategic Outlook - The company is well-positioned for revenue growth due to steady improvements in NII and non-interest income, supported by a solid capital position and efforts to expand in Texas markets [10]