ServisFirst Bancshares is expanding its service into Texas, making it the latest in a long line of banks that have stampeded into the Lone Star State. The $18 billion-asset lender, based in Birmingham, Alabama, announced on Monday that it's opening a new office in Houston — its first in the state. The regional bank, which focuses on commercial lending, also has offices in Alabama, Florida, Georgia, North Carolina, South Carolina, Tennessee and Virginia. ServisFirst said its Texas operations will be led ...

Core Insights - A renewed wave of spending from Chinese consumers is revitalizing the global luxury sector, alongside steady demand in the US [1] - The luxury market is recovering after a challenging year characterized by economic uncertainty [1] Group 1: Consumer Behavior - Chinese consumers are increasing their spending, which is significantly impacting the luxury market [1] - Steady demand from US consumers is also contributing to the recovery of the luxury sector [1] Group 2: Market Conditions - The luxury sector faced challenges in the previous year due to economic uncertainties, but is now showing signs of life [1] - The combination of renewed consumer spending in China and stable demand in the US is crucial for the sector's recovery [1]

Core Insights - Crude Value Insights provides an investment service and community focused on the oil and natural gas sector, emphasizing cash flow and the companies that generate it [1] - The service includes access to a 50+ stock model account, in-depth cash flow analyses of exploration and production (E&P) firms, and live chat discussions about the sector [1] Offerings - Subscribers can take advantage of a two-week free trial to explore the services related to oil and gas investments [2]

Core Viewpoint - Cullen/Frost Bankers, Inc. (CFR) has experienced operational stability despite recent frustrations common among regional banks, with a focus on long-term investment strategies that prioritize high-quality earnings and dividends [1] Group 1: Company Performance - Cullen/Frost Bankers, Inc. has shown operational leverage, indicating effective management and potential for sustainable growth [1] Group 2: Investment Strategy - The investment approach emphasizes a long-term, buy-and-hold strategy, particularly favoring stocks that can consistently deliver high-quality earnings, often found in the dividend and income sectors [1]

Core Insights - Cullen/Frost Bankers, Inc. (CFR) has faced challenges in recent months, similar to other regional banks, but operational performance remains strong with notable operating leverage [1] Group 1: Company Performance - The company has delivered welcome operating leverage, indicating effective management and operational efficiency [1] - A long-term, buy-and-hold investment strategy is favored for stocks like CFR that can consistently generate high-quality earnings [1] Group 2: Investment Perspective - The focus is on dividend and income stocks, suggesting a preference for stable returns and income generation [1]

Financial Performance - Net income available to common shareholders increased by $27.9 million, or 19.2%, for the three months ended September 30, 2025, and by $54.6 million, or 12.9%, for the nine months ended September 30, 2025, compared to the same periods in 2024[144]. - Return on average assets improved to 1.32% for the three months ended September 30, 2025, compared to 1.16% for the same period in 2024[145]. - Return on average common equity increased to 16.72% for the three months ended September 30, 2025, compared to 15.48% for the same period in 2024[145]. - Net income for the Banking segment increased by $25.5 million, or 17.9%, for the three months ended September 30, 2025, and by $51.8 million, or 12.5%, for the nine months ended September 30, 2025, compared to the same periods in 2024[201]. - Net income for the Frost Wealth Advisors segment increased by $1.7 million, or 22.3%, for the three months ended September 30, 2025, and by $1.7 million, or 6.6%, for the nine months ended September 30, 2025, compared to the same periods in 2024[207]. Revenue and Income Sources - Net interest income for the three months ended September 30, 2025, was $441.6 million, up from $404.3 million in the same period of 2024, representing an increase of $37.3 million[145]. - Non-interest income increased by $11.9 million to $125.6 million for the three months ended September 30, 2025, compared to $113.7 million in the same period of 2024[145]. - Total non-interest income increased by $11.9 million, or 10.5%, for the three months and $30.7 million, or 9.1%, for the nine months ended September 30, 2025, compared to the same periods in 2024[175]. - Trust and investment management fees rose by $3.8 million, or 9.3%, for the three months and $9.9 million, or 8.2%, for the nine months ended September 30, 2025[176]. - Service charges on deposit accounts increased by $4.0 million, or 14.7%, for the three months and $10.9 million, or 13.9%, for the nine months ended September 30, 2025[178]. Expenses and Costs - Total non-interest expense increased by $29.1 million, or 9.0%, for the three months ended September 30, 2025, and by $81.1 million, or 8.4%, for the nine months ended September 30, 2025, compared to the same periods in 2024[192]. - Salaries and wages increased by $12.5 million, or 8.0%, for the three months ended September 30, 2025, and by $36.3 million, or 8.0%, for the nine months ended September 30, 2025, compared to the same periods in 2024[193]. - Employee benefits expense increased by $5.4 million, or 18.6%, for the three months ended September 30, 2025, and by $15.6 million, or 16.6%, for the nine months ended September 30, 2025, compared to the same periods in 2024[194]. - Other non-interest expense increased by $4.2 million, or 6.9%, for the three months ended September 30, 2025, and by $18.0 million, or 9.9%, for the nine months ended September 30, 2025, compared to the same periods in 2024[199]. Credit and Loans - Credit loss expense decreased by $12.6 million to $6.8 million for the three months ended September 30, 2025, compared to $19.4 million for the same period in 2024[145]. - Credit loss expense totaled $6.779 million for the three months and $32.978 million for the nine months ended September 30, 2025, compared to $19.386 million and $48.823 million in 2024[174]. - Total accruing past due loans amounted to $132.9 million, or 0.62% of total loans, as of September 30, 2025, compared to $117.5 million, or 0.57%, at December 31, 2024[221]. - The total allowance for credit losses on loans was $280.2 million as of September 30, 2025, representing 1.31% of total loans[229]. - The allowance allocated to commercial and industrial loans increased by $9.1 million to $96.7 million, or 1.55% of total commercial and industrial loans[229]. Assets and Deposits - Total assets increased to $51,344,145 as of September 30, 2025, from $49,240,256 a year earlier, representing a growth of approximately 4.3%[157]. - The company’s total deposits reached $42,071,151 for the quarter ending September 30, 2025, compared to $40,733,070 for the same period in 2024, reflecting an increase of approximately 3.3%[156]. - Interest-bearing deposits totaled $28,232,079 with a cost of 1.94% for the quarter ending September 30, 2025, down from $27,074,557 and 2.41% in the same quarter of 2024[156]. - The average balance of taxable securities rose to $13.32 billion, generating $372.36 million in income, compared to $12.27 billion and $296.64 million in the previous year[157]. - As of September 30, 2025, the company had approximately $7.3 billion held in an interest-bearing account at the Federal Reserve, with a total borrowing capacity with the FHLB of approximately $6.8 billion[260]. Dividends and Shareholder Equity - Dividends per common share increased to $1.00 for the three months ended September 30, 2025, compared to $0.95 for the same period in 2024[145]. - The company declared a year-to-date dividend of $2.95 per share for 2025, with a dividend payout ratio of 40.1%[259]. - Shareholders' equity increased to $4.5 billion at September 30, 2025, from $3.9 billion at December 31, 2024, driven by net income of $482.3 million[255]. - The accumulated other comprehensive income/loss component of shareholders' equity showed a net, after-tax, unrealized loss of $924.4 million at September 30, 2025, improved from a loss of $1.3 billion at December 31, 2024[256]. Economic Outlook - The average U.S. unemployment rate is projected to be 4.41% for the remainder of 2025, with a forecasted average of 4.44% in 2026[236]. - The average oil price is expected to be $64.61 per barrel during the remainder of 2025, decreasing to $61.73 per barrel in 2026[236]. - The projected average 10-year Treasury rate is 4.35% during the remainder of 2025 and 4.40% in 2026[236]. - The average Texas unemployment rate is projected to be 4.22% for the remainder of 2025, with a forecasted average of 4.17% in 2026[236].

Financial Data and Key Metrics Changes - In Q3 2025, Cullen/Frost Bankers, Inc. earned $172.7 million, or $2.67 per share, representing a 19.2% increase from $144.8 million, or $2.24 per share, in the same quarter last year [4] - Return on average assets and average common equity were 1.32% and 16.72%, respectively, compared to 1.16% and 15.48% in Q3 last year [4] Business Line Data and Key Metrics Changes - Average deposits increased to $42.1 billion, up 3.3% from $40.7 billion in Q3 last year, while average loans grew to $21.5 billion, a 6.8% increase from $20.1 billion in Q2 last year [5] - Consumer checking households grew by 5.4% year over year, marking the strongest quarter in new checking household growth since the post-Silicon Valley flight to safety [6] - The overall consumer real estate loan portfolio reached $3.5 billion, growing by $547 million year over year, or 18.7% [7] Market Data and Key Metrics Changes - Period-end commercial loans grew by 5.1% year over year, with energy loans up 17% and C&I loans up 6.8% [7] - New commercial relationships reached 3,082 year to date, setting the pace for the largest number of new relationships in a year [8] Company Strategy and Development Direction - The company continues to focus on organic growth through strategic expansion, which has generated positive results, with expansion deposits and loans standing at $2.9 billion and $2.1 billion, respectively [5] - Expansion locations contributed $0.09 of EPS accretion, with Houston 1.0 generating $0.14 per share [12] - The company is optimistic about its strategy and believes it is well-positioned to succeed in competitive markets [11] Management's Comments on Operating Environment and Future Outlook - Management noted increasing competition in the market but expressed confidence in their ability to compete effectively [29] - The company expects net interest income growth for the full year to fall in the range of 7% to 8%, with an anticipated improvement in net interest margin of about 12 to 15 basis points [18] - Credit quality remains strong, with non-performing assets declining to $47 million from $64 million last quarter [9] Other Important Information - The company utilized $69.3 million of its $150 million approved share repurchase plan to buy back approximately 549,000 shares [20] - The effective tax rate expectation for full year 2025 remains unchanged at 16% to 17% [19] Q&A Session Summary Question: Thoughts on NIM with Fed cuts coming - Management indicated that while Fed cuts may impact NIM, they expect it to remain relatively stable due to backbook repricing and upcoming maturities [24] Question: Expense growth moderation - Management is focused on reducing expense growth from high single digits to mid-single digits, but specific guidance for 2026 is not yet available [25] Question: Competitive pressures in the market - Management acknowledged increased competition but remains confident in their ability to compete effectively, citing a strong pipeline and customer relationships [28][30] Question: Capital generation and buyback strategy - Management clarified that stock buybacks do not indicate a lack of optimism for growth; rather, they are utilizing excess capital to benefit shareholders [43][44] Question: Loan growth trends and competition - Management noted that while competition exists, they expect to continue growing despite headwinds from commercial real estate paydowns [65][67]

Financial 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]

Core Points - Cullen/Frost Bankers, Inc. will host a conference call on October 30, 2025, to discuss its third quarter 2025 earnings [1] - The earnings release will be available at approximately 8:00 a.m. Central Time on the company's investor relations website [1] Conference Call Details - The conference call will begin at 1:00 p.m. CT and will be hosted by key executives including Phil Green, Dan Geddes, and A.B. Mendez [2] - A question and answer session will follow the prepared remarks, allowing analysts to engage with the executives [2] Access Information - The live webcast can be accessed via the company's investor relations website, and it will be archived for playback after 5:00 p.m. CT on the day of the call [3] - A domestic telephone number for the conference call is provided, with a recommendation to dial in 5 to 10 minutes early for efficient registration [3]

Core Insights - Cullen/Frost Bankers (CFR) has a strong track record of exceeding earnings estimates, particularly in the last two quarters, with an average surprise of 5.41% [1][5] - For the last reported quarter, the company achieved earnings of $2.39 per share, surpassing the Zacks Consensus Estimate of $2.28 per share by 4.82% [2] - The previous quarter also saw a positive surprise, with actual earnings of $2.30 per share against an expected $2.17 per share, resulting in a 5.99% surprise [2] Earnings Estimates and Predictions - Estimates for Cullen/Frost have been increasing, driven by its history of earnings surprises, and the stock currently has a positive Zacks Earnings ESP of +1.40% [5][8] - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a high likelihood of another earnings beat, with historical data indicating that nearly 70% of stocks with this combination exceed consensus estimates [6][8] - The Zacks Earnings ESP measures the Most Accurate Estimate against the Zacks Consensus Estimate, reflecting the latest analyst revisions prior to earnings releases [7] Investment Considerations - While many companies may beat consensus EPS estimates, this does not always correlate with stock price increases, making it essential to consider the Earnings ESP before quarterly releases [9] - Investors are encouraged to utilize the Earnings ESP Filter to identify promising stocks ahead of earnings announcements [9]