Board increases quarterly common dividend
by 5.7 percent to $0.92
SAN
ANTONIO, July 27, 2023 /PRNewswire/ -- Cullen/Frost
Bankers, Inc. (NYSE:CFR) today reported second quarter 2023
results. Net income available to common shareholders for the
second quarter of 2023 was $160.4
million compared to $117.4
million in the second quarter of 2022. On a per-share basis,
net income available to common shareholders for the second quarter
of 2023 was $2.47 per diluted common
share, compared to $1.81 per diluted
common share reported a year earlier, representing a 36.5 percent
increase. Returns on average assets and average common equity were
1.30 percent and 19.36 percent, respectively, for the second
quarter of 2023 compared to 0.92 percent and 13.88 percent,
respectively, for the same period a year earlier.
For the second quarter of 2023, net interest income on a
taxable-equivalent basis was $408.6
million, up 31.2 percent compared to the same quarter in
2022. Average loans for the second quarter of 2023 increased
$1.0 billion, or 5.9 percent, to
$17.7 billion, from the $16.7 billion reported for the second quarter a
year earlier. Excluding PPP loans, second quarter average loans of
$17.6 billion represented a 6.7
percent increase compared to the second quarter of 2022 and a 2.0
percent increase compared to the first quarter of 2023. Average
deposits for the second quarter were $41.0
billion, down $3.7 billion, or
8.3 percent, compared to the $44.7
billion reported for last year's second quarter, and down
$1.8 billion, or 4.1 percent,
compared to the first quarter of 2023. Average deposits during the
second quarter continued to be impacted by the higher interest rate
environment, as we saw a continuation of the declining trend in
non-interest bearing deposit balances that began in the fourth
quarter of 2022. Average non-interest bearing deposits were down
$1.4 billion, or 8.4 percent, from
the first quarter. Average interest-bearing deposits were down
$345 million, or 1.3 percent, from
the first quarter.
"We were pleased with the earnings growth we experienced during
the quarter, and I'm proud of our great staff living our culture of
going above and beyond for our customers," said Cullen/Frost
Chairman and CEO Phil Green. "We
also were excited to announce our decision to double our presence
in the Austin region, the third
largest deposit market in Texas.
We expect to complete this move by 2026. This effort aligns with
our successful expansions in the dynamic Houston and Dallas markets and complements our organic
growth strategy which has resulted in record levels of customer
acquisition."
Noted financial data for the second quarter of 2023 follows:
- The Common Equity Tier 1, Tier 1 and Total Risk-Based Capital
Ratios at the end of the second quarter of 2023 were 13.42 percent,
13.92 percent and 15.39 percent, respectively, and continue to be
in excess of well-capitalized levels and exceed Basel III minimum
requirements.
- Net interest income on a taxable-equivalent basis was
$408.6 million for the second quarter
of 2023, an increase of 31.2 percent, compared to the prior year
period. Net interest margin was 3.45 percent for the second quarter
compared to 3.47 percent for the first quarter of 2023 and compared
to 2.56 percent for the second quarter of 2022.
- Non-interest income for the second quarter of 2023 totaled
$103.5 million, an increase of
$5.6 million, or 5.7 percent, from
the $97.9 million reported for the
second quarter of 2022. Other charges, commissions and fees
increased $2.2 million, or 22.3
percent, compared to the second quarter of 2022. The increase was
mainly driven by an increase in capital markets advisory fees (up
$648,000), other service charges (up
$641,000), and income from the
placement of money market accounts (up $472,000), among other things. Trust and
investment management fees increased $1.6
million, or 4.3 percent, compared to the second quarter of
2022. The increase was primarily due to increases in real estate
fees (up $1.0 million), estate fees
(up $821,000) and investment
management fees (up $580,000) partly
offset by a decrease in oil and gas fees (down $1.0 million). Insurance commissions and fees
increased $1.2 million, or 9.9
percent, compared to the second quarter of 2022. The increase
during the second quarter of 2023 was mainly driven by an increase
in commission income (up $1.3
million) partly offset by a decrease in contingent income
(down $133,000).
- Non-interest expense was $285.0
million for the second quarter of 2023, up $38.7 million, or 15.7 percent, compared to the
$246.3 million reported for the
second quarter a year earlier. Salaries and wages expense increased
$16.3 million, or 14.0 percent,
compared to the second quarter of 2022. The increase in salaries
and wages was primarily related to an increase in salaries, due to
annual merit and market increases, and an increase in the number of
employees. The increase in the number of employees was partly
related to our investments in organic expansion in the Houston and Dallas markets, and also to the gradual
rollout of our mortgage loan product offering. Employee benefits
expense increased by $6.1 million, or
29.2 percent, compared to the second quarter of 2022. The increase
in employee benefits expense was related to increases in 401(k)
plan expense, payroll taxes and medical benefits expense, among
other things. Other non-interest expense increased $7.4 million, or 16.0 percent, compared to the
second quarter of 2022. The increase during the second quarter of
2023 included increases in advertising/promotions expense (up
$2.9 million); professional services
expense (up $2.8 million), which was
primarily related to information technology services; and travel,
meals and entertainment expense (up $956,000), among other things.
- For the second quarter of 2023, the company reported a credit
loss expense of $9.9 million, and
reported net charge-offs of $9.8
million. This compares to a credit loss expense of
$9.1 million and net charge-offs of
$8.8 million for the first quarter of
2023 and no credit loss expense and net charge-offs of $2.8 million for the second quarter of 2022. The
allowance for credit losses on loans as a percentage of total loans
was 1.32 percent at June 30, 2023,
compared to 1.32 percent at the end of the first quarter of 2023
and 1.43 percent at the end of the second quarter of 2022.
Non-accrual loans were $67.8 million
at the end of the second quarter of 2023, compared to $38.4 million at the end of the first quarter of
2023 and $35.1 million at the end of
the second quarter of 2022.
The Cullen/Frost board declared a third-quarter cash dividend of
$0.92 per common share. The dividend
on common stock is payable September 15,
2023 to shareholders of record on August 31 of this year. The board of directors
also declared a cash dividend of $11.125 per share of Series B Preferred Stock (or
$0.278125 per depositary share). The
depositary shares representing the Series B Preferred Stock are
traded on the NYSE under the symbol "CFR PrB." The Series B
Preferred Stock dividend is payable September 15, 2023 to shareholders of record on
August 31 of this year.
Cullen/Frost Bankers, Inc. will host a conference call on
Thursday, July 27, 2023, at 1 p.m.
Central Time (CT) to discuss the results for the quarter.
The media and other interested parties are invited to access the
call in a "listen only" mode at 1-877-709-8150 or via webcast on
our investor relations website linked below. Playback of the
conference call will be available after 5
p.m. CT on the day of the call until midnight Sunday, July 30, 2023 at 1-877-660-6853 with
Conference ID # of 13739639. A replay of the call will also be
available by webcast at the URL listed below after 5 p.m. CT on the day of the call.
Cullen/Frost investor relations website:
https://investor.frostbank.com/
Cullen/Frost Bankers, Inc. (NYSE: CFR) is a financial holding
company, headquartered in San
Antonio, with $48.6 billion in
assets at June 30, 2023. Frost provides a wide range of
banking, investments and insurance services to businesses and
individuals across Texas in the
Austin, Corpus Christi, Dallas, Fort
Worth, Houston, Permian
Basin, Rio Grande Valley and San
Antonio regions. Founded in 1868, Frost has helped clients
with their financial needs during three centuries. Additional
information is available at www.frostbank.com.
Forward-Looking Statements and Factors that Could Affect
Future Results
Certain statements contained in this Earnings Release that are
not statements of historical fact constitute forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995 (the "Act"), notwithstanding that such
statements are not specifically identified as such. In addition,
certain statements may be contained in our future filings with the
SEC, in press releases, and in oral and written statements made by
us or with our approval that are not statements of historical fact
and constitute forward-looking statements within the meaning of the
Act. Examples of forward-looking statements include, but are not
limited to: (i) projections of revenues, expenses, income or
loss, earnings or loss per share, the payment or nonpayment of
dividends, capital structure and other financial items;
(ii) statements of plans, objectives and expectations of
Cullen/Frost or its management or Board of Directors, including
those relating to products, services or operations;
(iii) statements of future economic performance; and
(iv) statements of assumptions underlying such statements.
Words such as "believes", "anticipates", "expects", "intends",
"targeted", "continue", "remain", "will", "should", "may" and other
similar expressions are intended to identify forward-looking
statements but are not the exclusive means of identifying such
statements.
Forward-looking statements involve risks and uncertainties that
may cause actual results to differ materially from those in such
statements. Factors that could cause actual results to differ from
those discussed in the forward-looking statements include, but are
not limited to:
- The effects of and changes in trade and monetary and fiscal
policies and laws, including the interest rate policies of the
Federal Reserve Board.
- Inflation, interest rate, securities market and monetary
fluctuations.
- Local, regional, national and international economic conditions
and the impact they may have on us and our customers and our
assessment of that impact.
- Changes in the financial performance and/or condition of our
borrowers.
- Changes in the mix of loan geographies, sectors and types or
the level of non-performing assets and charge-offs.
- Changes in estimates of future credit loss reserve requirements
based upon the periodic review thereof under relevant regulatory
and accounting requirements.
- Changes in our liquidity position.
- Impairment of our goodwill or other intangible assets.
- The timely development and acceptance of new products and
services and perceived overall value of these products and services
by users.
- Changes in consumer spending, borrowing and saving habits.
- Greater than expected costs or difficulties related to the
integration of new products and lines of business.
- Technological changes.
- The cost and effects of cyber incidents or other failures,
interruptions or security breaches of our systems or those of our
customers or third-party providers.
- Acquisitions and integration of acquired businesses.
- Changes in the reliability of our vendors, internal control
systems or information systems.
- Our ability to increase market share and control expenses.
- Our ability to attract and retain qualified employees.
- Changes in our organization, compensation and benefit
plans.
- The soundness of other financial institutions.
- Volatility and disruption in national and international
financial and commodity markets.
- Changes in the competitive environment in our markets and among
banking organizations and other financial service providers.
- Government intervention in the U.S. financial system.
- Political or economic instability.
- Acts of God or of war or terrorism.
- The potential impact of climate change.
- The impact of pandemics, epidemics or any other health-related
crisis.
- The costs and effects of legal and regulatory developments, the
resolution of legal proceedings or regulatory or other governmental
inquiries, the results of regulatory examinations or reviews and
the ability to obtain required regulatory approvals.
- The effect of changes in laws and regulations (including laws
and regulations concerning taxes, banking, securities and
insurance) and their application with which we and our subsidiaries
must comply.
- The effect of changes in accounting policies and practices, as
may be adopted by the regulatory agencies, as well as the Public
Company Accounting Oversight Board, the Financial Accounting
Standards Board and other accounting standard setters.
- Our success at managing the risks involved in the foregoing
items.
In addition, financial markets and global supply chains may
continue to be adversely affected by the current or anticipated
impact of military conflict, including the current Russian invasion
of Ukraine or other geopolitical
events.
Forward-looking statements speak only as of the date on which
such statements are made. We do not undertake any obligation to
update any forward-looking statement to reflect events or
circumstances after the date on which such statement is made, or to
reflect the occurrence of unanticipated events.
Cullen/Frost
Bankers, Inc.
|
CONSOLIDATED
FINANCIAL SUMMARY (UNAUDITED)
|
(In thousands, except
per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
2023
|
|
2022
|
|
2nd
Qtr
|
|
1st
Qtr
|
|
4th
Qtr
|
|
3rd
Qtr
|
|
2nd
Qtr
|
CONDENSED INCOME
STATEMENTS
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
$ 385,266
|
|
$ 399,820
|
|
$ 398,457
|
|
$ 355,547
|
|
$ 288,208
|
Net interest income
(1)
|
408,594
|
|
425,844
|
|
423,892
|
|
379,518
|
|
311,377
|
Credit loss
expense
|
9,901
|
|
9,104
|
|
3,000
|
|
—
|
|
—
|
Non-interest
income:
|
|
|
|
|
|
|
|
|
|
Trust and investment
management fees
|
39,392
|
|
36,144
|
|
39,695
|
|
38,552
|
|
37,776
|
Service charges on
deposit accounts
|
23,487
|
|
21,879
|
|
22,321
|
|
22,960
|
|
23,870
|
Insurance commissions
and fees
|
12,940
|
|
18,952
|
|
11,674
|
|
13,152
|
|
11,776
|
Interchange and card
transaction fees
|
5,250
|
|
4,889
|
|
4,480
|
|
4,614
|
|
4,911
|
Other charges,
commissions and fees
|
12,090
|
|
11,704
|
|
10,981
|
|
11,095
|
|
9,887
|
Net gain (loss) on
securities transactions
|
33
|
|
21
|
|
—
|
|
—
|
|
—
|
Other
|
10,336
|
|
11,676
|
|
16,529
|
|
9,448
|
|
9,707
|
Total non-interest
income
|
103,528
|
|
105,265
|
|
105,680
|
|
99,821
|
|
97,927
|
|
|
|
|
|
|
|
|
|
|
Non-interest
expense:
|
|
|
|
|
|
|
|
|
|
Salaries and
wages
|
133,195
|
|
130,345
|
|
136,697
|
|
127,189
|
|
116,881
|
Employee
benefits
|
26,792
|
|
33,922
|
|
21,975
|
|
21,680
|
|
20,733
|
Net
occupancy
|
31,714
|
|
30,349
|
|
28,572
|
|
28,133
|
|
28,379
|
Technology, furniture
and equipment
|
33,043
|
|
32,481
|
|
30,912
|
|
30,781
|
|
29,921
|
Deposit
insurance
|
6,202
|
|
6,245
|
|
3,967
|
|
4,279
|
|
3,724
|
Intangible
amortization
|
82
|
|
96
|
|
100
|
|
103
|
|
131
|
Other
|
54,014
|
|
51,704
|
|
59,074
|
|
45,733
|
|
46,578
|
Total non-interest
expense
|
285,042
|
|
285,142
|
|
281,297
|
|
257,898
|
|
246,347
|
Income before income
taxes
|
193,851
|
|
210,839
|
|
219,840
|
|
197,470
|
|
139,788
|
Income taxes
|
31,733
|
|
33,186
|
|
28,666
|
|
27,710
|
|
20,674
|
Net income
|
162,118
|
|
177,653
|
|
191,174
|
|
169,760
|
|
119,114
|
Preferred stock
dividends
|
1,669
|
|
1,669
|
|
1,669
|
|
1,668
|
|
1,669
|
Net income available to
common shareholders
|
$ 160,449
|
|
$ 175,984
|
|
$ 189,505
|
|
$ 168,092
|
|
$ 117,445
|
|
|
|
|
|
|
|
|
|
|
PER COMMON SHARE
DATA
|
|
|
|
|
|
|
|
|
|
Earnings per common
share - basic
|
$ 2.47
|
|
$ 2.71
|
|
$ 2.92
|
|
$ 2.60
|
|
$ 1.82
|
Earnings per common
share - diluted
|
2.47
|
|
2.70
|
|
2.91
|
|
2.59
|
|
1.81
|
Cash dividends per
common share
|
0.87
|
|
0.87
|
|
0.87
|
|
0.87
|
|
0.75
|
Book value per common
share at end of quarter
|
50.55
|
|
51.59
|
|
46.49
|
|
41.53
|
|
49.93
|
|
|
|
|
|
|
|
|
|
|
OUTSTANDING COMMON
SHARES
|
|
|
|
|
|
|
|
|
|
Period-end common
shares
|
64,120
|
|
64,396
|
|
64,355
|
|
64,211
|
|
64,123
|
Weighted-average common
shares - basic
|
64,241
|
|
64,374
|
|
64,303
|
|
64,158
|
|
64,113
|
Dilutive effect of
stock compensation
|
187
|
|
258
|
|
344
|
|
343
|
|
354
|
Weighted-average common
shares - diluted
|
64,428
|
|
64,632
|
|
64,647
|
|
64,501
|
|
64,467
|
|
|
|
|
|
|
|
|
|
|
SELECTED ANNUALIZED
RATIOS
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
1.30 %
|
|
1.39 %
|
|
1.44 %
|
|
1.27 %
|
|
0.92 %
|
Return on average
common equity
|
19.36
|
|
22.59
|
|
27.16
|
|
20.13
|
|
13.88
|
Net interest income to
average earning assets
|
3.45
|
|
3.47
|
|
3.31
|
|
3.01
|
|
2.56
|
|
|
|
|
|
|
|
|
|
|
(1) Taxable-equivalent
basis assuming a 21% tax rate.
|
Cullen/Frost
Bankers, Inc.
|
CONSOLIDATED
FINANCIAL SUMMARY (UNAUDITED)
|
|
|
2023
|
|
2022
|
|
2nd
Qtr
|
|
1st
Qtr
|
|
4th
Qtr
|
|
3rd
Qtr
|
|
2nd
Qtr
|
BALANCE SHEET
SUMMARY
|
|
|
|
|
|
|
|
|
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
Average
Balance:
|
|
|
|
|
|
|
|
|
|
Loans
|
$
17,664
|
|
$
17,319
|
|
$
17,063
|
|
$
16,823
|
|
$
16,674
|
Loans excluding
Paycheck Protection Program
|
17,638
|
|
17,287
|
|
17,020
|
|
16,752
|
|
16,531
|
Earning
assets
|
45,929
|
|
47,904
|
|
48,867
|
|
49,062
|
|
47,880
|
Total
assets
|
49,317
|
|
51,307
|
|
52,284
|
|
52,383
|
|
51,088
|
Non-interest-bearing
demand deposits
|
15,231
|
|
16,636
|
|
17,980
|
|
18,511
|
|
18,355
|
Interest-bearing
deposits
|
25,776
|
|
26,121
|
|
26,779
|
|
27,292
|
|
26,371
|
Total
deposits
|
41,007
|
|
42,757
|
|
44,759
|
|
45,803
|
|
44,726
|
Shareholders'
equity
|
3,470
|
|
3,305
|
|
2,913
|
|
3,459
|
|
3,540
|
|
|
|
|
|
|
|
|
|
|
Period-End
Balance:
|
|
|
|
|
|
|
|
|
|
Loans
|
$
17,746
|
|
$
17,486
|
|
$
17,155
|
|
$
16,951
|
|
$
16,736
|
Loans excluding
Paycheck Protection Program
|
17,724
|
|
17,458
|
|
17,120
|
|
16,900
|
|
16,644
|
Earning
assets
|
45,146
|
|
47,870
|
|
49,402
|
|
49,517
|
|
48,404
|
Goodwill and
intangible assets
|
655
|
|
655
|
|
655
|
|
655
|
|
656
|
Total
assets
|
48,597
|
|
51,246
|
|
52,892
|
|
52,946
|
|
51,785
|
Total
deposits
|
40,701
|
|
42,184
|
|
43,954
|
|
46,560
|
|
45,602
|
Shareholders'
equity
|
3,387
|
|
3,468
|
|
3,137
|
|
2,812
|
|
3,347
|
Adjusted shareholders'
equity (1)
|
4,692
|
|
4,610
|
|
4,486
|
|
4,341
|
|
4,221
|
|
|
|
|
|
|
|
|
|
|
ASSET
QUALITY
|
|
|
|
|
|
|
|
|
|
($ in
thousands)
|
|
|
|
|
|
|
|
|
|
Allowance for credit
losses on loans:
|
$ 233,619
|
|
$ 231,514
|
|
$ 227,621
|
|
$ 234,315
|
|
$ 239,632
|
As a percentage of
period-end loans
|
1.32 %
|
|
1.32 %
|
|
1.33 %
|
|
1.38 %
|
|
1.43 %
|
|
|
|
|
|
|
|
|
|
|
Net
charge-offs:
|
$ 9,828
|
|
$ 8,782
|
|
$ 3,810
|
|
$ 2,854
|
|
$ 2,807
|
Annualized as a
percentage of average loans
|
0.22 %
|
|
0.21 %
|
|
0.09 %
|
|
0.07 %
|
|
0.07 %
|
|
|
|
|
|
|
|
|
|
|
Non-accrual
loans:
|
$
67,781
|
|
$
38,410
|
|
$
37,833
|
|
$
29,904
|
|
$
35,125
|
As a percentage of
total loans
|
0.38 %
|
|
0.22 %
|
|
0.22 %
|
|
0.18 %
|
|
0.21 %
|
As a percentage of
total assets
|
0.14
|
|
0.07
|
|
0.07
|
|
0.06
|
|
0.07
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED CAPITAL
RATIOS
|
|
|
|
|
|
|
|
|
|
Common Equity Tier 1
Risk-Based Capital Ratio
|
13.42 %
|
|
13.24 %
|
|
12.85 %
|
|
12.74 %
|
|
12.64 %
|
Tier 1 Risk-Based
Capital Ratio
|
13.92
|
|
13.74
|
|
13.35
|
|
13.26
|
|
13.17
|
Total Risk-Based
Capital Ratio
|
15.39
|
|
15.22
|
|
14.84
|
|
14.80
|
|
14.75
|
Leverage
Ratio
|
8.11
|
|
7.69
|
|
7.29
|
|
7.09
|
|
7.03
|
Equity to Assets Ratio
(period-end)
|
6.97
|
|
6.77
|
|
5.93
|
|
5.31
|
|
6.46
|
Equity to Assets Ratio
(average)
|
7.04
|
|
6.44
|
|
5.57
|
|
6.60
|
|
6.93
|
|
|
|
|
|
|
|
|
|
|
(1) Shareholders'
equity excluding accumulated other comprehensive income
(loss).
|
Cullen/Frost
Bankers, Inc.
|
CONSOLIDATED
FINANCIAL SUMMARY (UNAUDITED)
|
(In thousands, except
per share amounts)
|
|
|
|
|
|
|
|
Six Months
Ended
|
|
|
|
|
|
|
|
June
30,
|
|
|
|
|
|
|
|
2023
|
|
2022
|
CONDENSED INCOME
STATEMENTS
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
|
|
|
|
|
$ 785,086
|
|
$ 537,279
|
Net interest income
(1)
|
|
|
|
|
|
|
834,438
|
|
583,572
|
Credit loss
expense
|
|
|
|
|
|
|
19,005
|
|
—
|
Non-interest
income:
|
|
|
|
|
|
|
|
|
|
Trust and investment
management fees
|
|
|
|
|
|
|
75,536
|
|
76,432
|
Service charges on
deposit accounts
|
|
|
|
|
|
|
45,366
|
|
46,610
|
Insurance commissions
and fees
|
|
|
|
|
|
|
31,892
|
|
28,384
|
Interchange and card
transaction fees
|
|
|
|
|
|
|
10,139
|
|
9,137
|
Other charges,
commissions and fees
|
|
|
|
|
|
|
23,794
|
|
19,514
|
Net gain (loss) on
securities transactions
|
|
|
|
|
|
|
54
|
|
—
|
Other
|
|
|
|
|
|
|
22,012
|
|
19,240
|
Total non-interest
income
|
|
|
|
|
|
|
208,793
|
|
199,317
|
|
|
|
|
|
|
|
|
|
|
Non-interest
expense:
|
|
|
|
|
|
|
|
|
|
Salaries and
wages
|
|
|
|
|
|
|
263,540
|
|
228,210
|
Employee
benefits
|
|
|
|
|
|
|
60,714
|
|
44,953
|
Net
occupancy
|
|
|
|
|
|
|
62,063
|
|
55,790
|
Technology, furniture
and equipment
|
|
|
|
|
|
|
65,524
|
|
59,078
|
Deposit
insurance
|
|
|
|
|
|
|
12,447
|
|
7,357
|
Intangible
amortization
|
|
|
|
|
|
|
178
|
|
277
|
Other
|
|
|
|
|
|
|
105,718
|
|
89,414
|
Total non-interest
expense
|
|
|
|
|
|
|
570,184
|
|
485,079
|
Income before income
taxes
|
|
|
|
|
|
|
404,690
|
|
251,517
|
Income taxes
|
|
|
|
|
|
|
64,919
|
|
33,301
|
Net income
|
|
|
|
|
|
|
339,771
|
|
218,216
|
Preferred stock
dividends
|
|
|
|
|
|
|
3,338
|
|
3,338
|
Net income available to
common shareholders
|
|
|
|
|
|
|
$ 336,433
|
|
$ 214,878
|
|
|
|
|
|
|
|
|
|
|
PER COMMON SHARE
DATA
|
|
|
|
|
|
|
|
|
|
Earnings per common
share - basic
|
|
|
|
|
|
|
$ 5.18
|
|
$ 3.32
|
Earnings per common
share - diluted
|
|
|
|
|
|
|
5.17
|
|
3.31
|
Cash dividends per
common share
|
|
|
|
|
|
|
1.74
|
|
1.50
|
Book value per common
share at end of quarter
|
|
|
|
|
|
|
50.55
|
|
49.93
|
|
|
|
|
|
|
|
|
|
|
OUTSTANDING COMMON
SHARES
|
|
|
|
|
|
|
|
|
|
Period-end common
shares
|
|
|
|
|
|
|
64,120
|
|
64,123
|
Weighted-average common
shares - basic
|
|
|
|
|
|
|
64,307
|
|
64,082
|
Dilutive effect of
stock compensation
|
|
|
|
|
|
|
225
|
|
383
|
Weighted-average common
shares - diluted
|
|
|
|
|
|
|
64,532
|
|
64,465
|
|
|
|
|
|
|
|
|
|
|
SELECTED ANNUALIZED
RATIOS
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
|
|
|
|
|
|
1.35 %
|
|
0.85 %
|
Return on average
common equity
|
|
|
|
|
|
|
20.92
|
|
11.53
|
Net interest income to
average earning assets
|
|
|
|
|
|
|
3.46
|
|
2.45
|
|
|
|
|
|
|
|
|
|
|
(1) Taxable-equivalent
basis assuming a 21% tax rate.
|
Cullen/Frost
Bankers, Inc.
|
CONSOLIDATED
FINANCIAL SUMMARY (UNAUDITED)
|
|
|
|
|
|
|
|
|
As of or for
the
|
|
|
|
|
|
|
|
Six Months
Ended
|
|
|
|
|
|
|
|
June
30,
|
|
|
|
|
|
|
|
2023
|
|
2022
|
BALANCE SHEET
SUMMARY
|
|
|
|
|
|
|
|
|
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
Average
Balance:
|
|
|
|
|
|
|
|
|
|
Loans
|
|
|
|
|
|
|
$
17,493
|
|
$
16,531
|
Loans excluding
Paycheck Protection Program
|
|
|
|
|
|
|
17,463
|
|
16,308
|
Earning
assets
|
|
|
|
|
|
|
46,911
|
|
47,611
|
Total
assets
|
|
|
|
|
|
|
50,320
|
|
50,711
|
Non-interest-bearing
demand deposits
|
|
|
|
|
|
|
15,930
|
|
18,159
|
Interest-bearing
deposits
|
|
|
|
|
|
|
25,947
|
|
25,690
|
Total
deposits
|
|
|
|
|
|
|
41,877
|
|
43,849
|
Shareholders'
equity
|
|
|
|
|
|
|
3,388
|
|
3,903
|
|
|
|
|
|
|
|
|
|
|
Period-End
Balance:
|
|
|
|
|
|
|
|
|
|
Loans
|
|
|
|
|
|
|
$
17,746
|
|
$
16,736
|
Loans excluding
Paycheck Protection Program
|
|
|
|
|
|
|
17,724
|
|
16,644
|
Earning
assets
|
|
|
|
|
|
|
45,146
|
|
48,404
|
Goodwill and
intangible assets
|
|
|
|
|
|
|
655
|
|
656
|
Total
assets
|
|
|
|
|
|
|
48,597
|
|
51,785
|
Total
deposits
|
|
|
|
|
|
|
40,701
|
|
45,602
|
Shareholders'
equity
|
|
|
|
|
|
|
3,387
|
|
3,347
|
Adjusted shareholders'
equity (1)
|
|
|
|
|
|
|
4,692
|
|
4,221
|
|
|
|
|
|
|
|
|
|
|
ASSET
QUALITY
|
|
|
|
|
|
|
|
|
|
($ in
thousands)
|
|
|
|
|
|
|
|
|
|
Allowance for credit
losses on loans:
|
|
|
|
|
|
|
$ 233,619
|
|
$ 239,632
|
As a percentage of
period-end loans
|
|
|
|
|
|
|
1.32 %
|
|
1.43 %
|
|
|
|
|
|
|
|
|
|
|
Net
charge-offs:
|
|
|
|
|
|
|
18,610
|
|
9,102
|
Annualized as a
percentage of average loans
|
|
|
|
|
|
|
0.21 %
|
|
0.11 %
|
|
|
|
|
|
|
|
|
|
|
Non-accrual
loans:
|
|
|
|
|
|
|
$
67,781
|
|
$
35,125
|
As a percentage of
total loans
|
|
|
|
|
|
|
0.38 %
|
|
0.21 %
|
As a percentage of
total assets
|
|
|
|
|
|
|
0.14
|
|
0.07
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED CAPITAL
RATIOS
|
|
|
|
|
|
|
|
|
|
Common Equity Tier 1
Risk-Based Capital Ratio
|
|
|
|
|
|
|
13.42 %
|
|
12.64 %
|
Tier 1 Risk-Based
Capital Ratio
|
|
|
|
|
|
|
13.92
|
|
13.17
|
Total Risk-Based
Capital Ratio
|
|
|
|
|
|
|
15.39
|
|
14.75
|
Leverage
Ratio
|
|
|
|
|
|
|
8.11
|
|
7.03
|
Equity to Assets Ratio
(period-end)
|
|
|
|
|
|
|
6.97
|
|
6.46
|
Equity to Assets Ratio
(average)
|
|
|
|
|
|
|
6.73
|
|
7.70
|
|
|
|
|
|
|
|
|
|
|
(1) Shareholders'
equity excluding accumulated other comprehensive income
(loss).
|
Cullen/Frost
Bankers, Inc.
|
TAXABLE-EQUIVALENT
YIELD/COST AND AVERAGE BALANCES (UNAUDITED)
|
|
|
2023
|
|
2022
|
|
2nd
Qtr
|
|
1st
Qtr
|
|
4th
Qtr
|
|
3rd
Qtr
|
|
2nd
Qtr
|
TAXABLE-EQUIVALENT
YIELD/COST(1)
|
|
|
|
|
|
|
|
|
|
Earning
Assets:
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits
|
5.05 %
|
|
4.57 %
|
|
3.70 %
|
|
2.27 %
|
|
0.80 %
|
Federal funds
sold
|
5.35
|
|
4.72
|
|
3.88
|
|
2.44
|
|
1.26
|
Resell
agreements
|
5.26
|
|
4.77
|
|
4.14
|
|
2.39
|
|
1.32
|
Securities
|
3.24
|
|
3.24
|
|
3.09
|
|
2.94
|
|
2.87
|
Loans, net of unearned
discounts
|
6.64
|
|
6.36
|
|
5.80
|
|
4.89
|
|
4.04
|
Total earning
assets
|
4.77
|
|
4.57
|
|
4.14
|
|
3.43
|
|
2.71
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing
Liabilities:
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits:
|
|
|
|
|
|
|
|
|
|
Savings and interest
checking
|
0.41
|
|
0.36
|
|
0.27
|
|
0.07
|
|
0.04
|
Money market deposit
accounts
|
2.68
|
|
2.47
|
|
1.94
|
|
1.08
|
|
0.35
|
Time
accounts
|
3.77
|
|
2.40
|
|
1.52
|
|
0.99
|
|
0.64
|
Total interest-bearing
deposits
|
1.87
|
|
1.52
|
|
1.16
|
|
0.62
|
|
0.22
|
|
|
|
|
|
|
|
|
|
|
Total
deposits
|
1.18
|
|
0.93
|
|
0.69
|
|
0.37
|
|
0.13
|
|
|
|
|
|
|
|
|
|
|
Federal funds
purchased
|
4.97
|
|
4.55
|
|
3.78
|
|
2.33
|
|
0.84
|
Repurchase
agreements
|
3.52
|
|
3.20
|
|
2.69
|
|
1.50
|
|
0.41
|
Junior subordinated
deferrable interest debentures
|
6.84
|
|
6.46
|
|
5.39
|
|
3.77
|
|
2.51
|
Subordinated notes
payable and other notes
|
4.69
|
|
4.69
|
|
4.69
|
|
4.69
|
|
4.69
|
Total interest-bearing
liabilities
|
2.11
|
|
1.79
|
|
1.37
|
|
0.71
|
|
0.26
|
|
|
|
|
|
|
|
|
|
|
Net interest
spread
|
2.66
|
|
2.78
|
|
2.77
|
|
2.72
|
|
2.45
|
Net interest income to
total average earning assets
|
3.45
|
|
3.47
|
|
3.31
|
|
3.01
|
|
2.56
|
|
|
|
|
|
|
|
|
|
|
AVERAGE
BALANCES
|
|
|
|
|
|
|
|
|
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits
|
$
6,880
|
|
$
8,687
|
|
$ 11,574
|
|
$ 12,776
|
|
$ 13,041
|
Federal funds
sold
|
22
|
|
64
|
|
52
|
|
51
|
|
31
|
Resell
agreements
|
85
|
|
90
|
|
49
|
|
10
|
|
3
|
Securities
|
21,278
|
|
21,744
|
|
20,129
|
|
19,402
|
|
18,130
|
Loans, net of unearned
discount
|
17,664
|
|
17,319
|
|
17,063
|
|
16,823
|
|
16,674
|
Total earning
assets
|
$ 45,929
|
|
$ 47,904
|
|
$ 48,867
|
|
$ 49,062
|
|
$ 47,880
|
|
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits:
|
|
|
|
|
|
|
|
|
|
Savings and interest
checking
|
$ 10,862
|
|
$ 11,662
|
|
$ 12,113
|
|
$ 12,235
|
|
$ 12,336
|
Money market deposit
accounts
|
11,431
|
|
12,404
|
|
12,958
|
|
13,466
|
|
12,608
|
Time
accounts
|
3,483
|
|
2,055
|
|
1,708
|
|
1,591
|
|
1,427
|
Total interest-bearing
deposits
|
25,776
|
|
26,121
|
|
26,779
|
|
27,292
|
|
26,371
|
|
|
|
|
|
|
|
|
|
|
Total
deposits
|
41,007
|
|
42,757
|
|
44,759
|
|
45,803
|
|
44,726
|
|
|
|
|
|
|
|
|
|
|
Federal funds
purchased
|
33
|
|
51
|
|
37
|
|
42
|
|
36
|
Repurchase
agreements
|
3,719
|
|
4,211
|
|
3,575
|
|
1,960
|
|
1,743
|
Junior subordinated
deferrable interest debentures
|
123
|
|
123
|
|
123
|
|
123
|
|
123
|
Subordinated notes
payable and other notes
|
99
|
|
99
|
|
99
|
|
99
|
|
99
|
Total interest-bearing
funds
|
$ 29,750
|
|
$ 30,606
|
|
$ 30,613
|
|
$ 29,516
|
|
$ 28,372
|
|
|
|
|
|
|
|
|
|
|
(1) Taxable-equivalent
basis assuming a 21% tax rate.
|
A.B. Mendez
Investor Relations
210.220.5234
or
Bill Day
Media Relations
210.220.5427
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SOURCE Cullen/Frost Bankers, Inc.