Board declares fourth quarter dividend on
common and preferred stock
SAN
ANTONIO, Oct. 26, 2023 /PRNewswire/ -- Cullen/Frost
Bankers, Inc. (NYSE:CFR) today reported third quarter 2023
results. Net income available to common shareholders for the
third quarter of 2023 was $154.0
million compared to $168.1
million in the third quarter of 2022. On a per-share basis,
net income available to common shareholders for the third quarter
of 2023 was $2.38 per diluted common
share, compared to $2.59 per diluted
common share reported a year earlier, representing a 8.1 percent
decrease. Returns on average assets and average common equity were
1.25 percent and 18.93 percent, respectively, for the third quarter
of 2023 compared to 1.27 percent and 20.13 percent, respectively,
for the same period a year earlier.
For the first nine months of 2023, net income available to
common shareholders was $490.4
million, up 28.1 percent compared to $383.0 million for the first nine months of 2022.
Diluted EPS available to common shareholders for the first nine
months of 2023 was $7.54 compared to
$5.90 in the year-earlier period,
representing an increase of 27.8 percent. Returns on average assets
and average common equity for the first nine months of 2023 were
1.32 percent and 20.25 percent, respectively, compared to 1.00
percent and 14.19 percent, respectively, for the same period in
2022.
For the third quarter of 2023, net interest income on a
taxable-equivalent basis was $407.4
million, up 7.3 percent compared to the same quarter in
2022. Average loans for the third quarter of 2023 increased
$1.1 billion, or 6.8 percent, to
$18.0 billion, from the $16.8 billion reported for the third quarter a
year earlier. Average deposits for the third quarter were
$40.8 billion, down $5.0 billion, or 10.9 percent, compared to the
$45.8 billion reported for last
year's third quarter, and down $179
million, or 0.4 percent, compared to the second quarter of
2023. Average non-interest bearing deposits were down $408 million, or 2.7 percent, from the second
quarter. Average interest-bearing deposits were up $229 million, or 0.9 percent, from the second
quarter.
"Our third quarter results demonstrate that Frost bankers
continue to provide our customers with top-quality service and that
our long-term investments in sustained organic growth are paying
dividends," said Cullen/Frost Chairman and CEO Phil Green. "Loans continued to increase and our
deposit volumes stabilized as expected. We continued our
investments in market expansions and rolling out our new mortgage
loan offering, as well as in strategic marketing initiatives and
core technology platforms. We were excited to announce our Frost
Bank Center naming rights agreement with the San Antonio Spurs
during the third quarter, which will greatly enhance awareness of
the Frost brand.
"We continue to be focused on making sound institutional
decisions about near-term investments that will support our
sustained growth and success over the longer term."
Noted financial data for the third quarter of 2023 follows:
- The Common Equity Tier 1, Tier 1 and Total Risk-Based Capital
Ratios at the end of the third quarter of 2023 were 13.32 percent,
13.81 percent and 15.28 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
$407.4 million for the third quarter
of 2023, an increase of 7.3 percent, compared to the prior year
period. Net interest margin was 3.44 percent for the third quarter
compared to 3.45 percent for the second quarter of 2023 and
compared to 3.01 percent for the third quarter of 2022.
- Non-interest income for the third quarter of 2023 totaled
$106.0 million, an increase of
$6.2 million, or 6.2 percent, from
the $99.8 million reported for the
third quarter of 2022. Other non-interest income increased
$3.9 million, or 41.1 percent,
compared to the third quarter of 2022. The increase was primarily
related to increases in income from customer derivative and foreign
exchange transactions (up $2.6
million) and public finance underwriting fees (up
$751,000), among other things. Other
charges, commissions, and fees increased $2.0 million, or 18.3 percent, compared to the
third quarter of 2022. The increase was primarily related to
increases in other service charges (up $711,000), capital markets advisory fees (up
$428,000), and letter of credit fees
(up $393,000), among other things.
Insurance commissions and fees increased $484,000, or 3.7 percent, compared to the third
quarter of 2022. The increase during the third quarter of 2023 was
mainly driven by an increase in commission income.
- Non-interest expense was $293.3
million for the third quarter of 2023, up $35.4 million, or 13.7 percent, compared to the
$257.9 million reported for the third
quarter a year earlier. Other non-interest expense increased
$10.4 million, or 22.8 percent,
compared to the third quarter of 2022. The increase during the
third quarter of 2023 included increases in advertising/promotions
expense (up $3.6 million);
professional services expense (up $3.5
million), which was primarily related to information
technology services; and fraud losses (up $1.2 million), among other things. Salaries and
wages expense increased $10.4
million, or 8.2 percent, compared to the third 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,
Dallas and Austin markets, and also to the gradual
rollout of our mortgage loan product offering. Employee benefits
expense increased by $4.8 million, or
22.4 percent, compared to the third quarter of 2022. The increase
in employee benefits expense was related to an increase in medical
benefits expense (up $2.0 million), a
decrease in the net periodic benefit related to our defined benefit
retirement plan (down $1.6 million),
and an increase in payroll taxes (up $850,000), among other things. Technology,
furniture, and equipment expense increased $4.5 million, or 14.6 percent, compared to the
third quarter of 2022. The increase was primarily related to
increases in cloud services expense (up $3.3
million) and service contracts expense (up $1.3 million). Net occupancy expense increased
$3.4 million, or 12.3 percent,
compared to the third quarter of 2022. The increase was mainly
driven by increases in depreciation on buildings and leasehold
improvements (up $1.3 million) and
repairs/maintenance/service contracts (up $867,000), among other things, driven partly by
our expansion activity.
- For the third quarter of 2023, the company reported a credit
loss expense of $11.2 million, and
reported net charge-offs of $5.0
million. This compares to a credit loss expense of
$9.9 million and net charge-offs of
$9.8 million for the second quarter
of 2023 and no credit loss expense and net charge-offs of
$2.9 million for the third quarter of
2022. The allowance for credit losses on loans as a percentage of
total loans was 1.32 percent at September
30, 2023, compared to 1.32 percent at the end of the second
quarter of 2023 and 1.38 percent at the end of the third quarter of
2022. Non-accrual loans were $67.2
million at the end of the third quarter of 2023, compared to
$67.8 million at the end of the
second quarter of 2023 and $29.9
million at the end of the third quarter of 2022.
The Cullen/Frost board declared a fourth-quarter cash dividend
of $0.92 per common share. The
dividend on common stock is payable December
15, 2023 to shareholders of record on November 30 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 December
15, 2023 to shareholders of record on November 30 of this year.
Cullen/Frost Bankers, Inc. will host a conference call on
Thursday, October 26, 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, October 29, 2023 at 1-877-660-6853 with
Conference ID # of 13741829. 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 $48.7
billion in assets at September 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 global wars/military conflicts, terrorism, 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
|
|
3rd
Qtr
|
|
2nd
Qtr
|
|
1st
Qtr
|
|
4th
Qtr
|
|
3rd
Qtr
|
CONDENSED INCOME
STATEMENTS
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
$ 385,426
|
|
$ 385,266
|
|
$ 399,820
|
|
$ 398,457
|
|
$ 355,547
|
Net interest income
(1)
|
407,353
|
|
408,594
|
|
425,844
|
|
423,892
|
|
379,518
|
Credit loss
expense
|
11,185
|
|
9,901
|
|
9,104
|
|
3,000
|
|
—
|
Non-interest
income:
|
|
|
|
|
|
|
|
|
|
Trust and investment
management fees
|
37,616
|
|
39,392
|
|
36,144
|
|
39,695
|
|
38,552
|
Service charges on
deposit accounts
|
23,603
|
|
23,487
|
|
21,879
|
|
22,321
|
|
22,960
|
Insurance commissions
and fees
|
13,636
|
|
12,940
|
|
18,952
|
|
11,674
|
|
13,152
|
Interchange and card
transaction fees
|
4,672
|
|
5,250
|
|
4,889
|
|
4,480
|
|
4,614
|
Other charges,
commissions, and fees
|
13,128
|
|
12,090
|
|
11,704
|
|
10,981
|
|
11,095
|
Net gain (loss) on
securities transactions
|
12
|
|
33
|
|
21
|
|
—
|
|
—
|
Other
|
13,331
|
|
10,336
|
|
11,676
|
|
16,529
|
|
9,448
|
Total non-interest
income
|
105,998
|
|
103,528
|
|
105,265
|
|
105,680
|
|
99,821
|
|
|
|
|
|
|
|
|
|
|
Non-interest
expense:
|
|
|
|
|
|
|
|
|
|
Salaries and
wages
|
137,562
|
|
133,195
|
|
130,345
|
|
136,697
|
|
127,189
|
Employee
benefits
|
26,527
|
|
26,792
|
|
33,922
|
|
21,975
|
|
21,680
|
Net
occupancy
|
31,581
|
|
31,714
|
|
30,349
|
|
28,572
|
|
28,133
|
Technology, furniture,
and equipment
|
35,278
|
|
33,043
|
|
32,481
|
|
30,912
|
|
30,781
|
Deposit
insurance
|
6,033
|
|
6,202
|
|
6,245
|
|
3,967
|
|
4,279
|
Other
|
56,275
|
|
54,096
|
|
51,800
|
|
59,174
|
|
45,836
|
Total non-interest
expense
|
293,256
|
|
285,042
|
|
285,142
|
|
281,297
|
|
257,898
|
Income before income
taxes
|
186,983
|
|
193,851
|
|
210,839
|
|
219,840
|
|
197,470
|
Income taxes
|
31,332
|
|
31,733
|
|
33,186
|
|
28,666
|
|
27,710
|
Net income
|
155,651
|
|
162,118
|
|
177,653
|
|
191,174
|
|
169,760
|
Preferred stock
dividends
|
1,668
|
|
1,669
|
|
1,669
|
|
1,669
|
|
1,668
|
Net income available to
common shareholders
|
$ 153,983
|
|
$ 160,449
|
|
$ 175,984
|
|
$ 189,505
|
|
$ 168,092
|
|
|
|
|
|
|
|
|
|
|
PER COMMON SHARE
DATA
|
|
|
|
|
|
|
|
|
|
Earnings per common
share - basic
|
$ 2.38
|
|
$ 2.47
|
|
$ 2.71
|
|
$ 2.92
|
|
$ 2.60
|
Earnings per common
share - diluted
|
2.38
|
|
2.47
|
|
2.70
|
|
2.91
|
|
2.59
|
Cash dividends per
common share
|
0.92
|
|
0.87
|
|
0.87
|
|
0.87
|
|
0.87
|
Book value per common
share at end of quarter
|
44.59
|
|
50.55
|
|
51.59
|
|
46.49
|
|
41.53
|
|
|
|
|
|
|
|
|
|
|
OUTSTANDING COMMON
SHARES
|
|
|
|
|
|
|
|
|
|
Period-end common
shares
|
64,017
|
|
64,120
|
|
64,396
|
|
64,355
|
|
64,211
|
Weighted-average common
shares - basic
|
64,067
|
|
64,241
|
|
64,374
|
|
64,303
|
|
64,158
|
Dilutive effect of
stock compensation
|
172
|
|
187
|
|
258
|
|
344
|
|
343
|
Weighted-average common
shares - diluted
|
64,239
|
|
64,428
|
|
64,632
|
|
64,647
|
|
64,501
|
|
|
|
|
|
|
|
|
|
|
SELECTED ANNUALIZED
RATIOS
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
1.25 %
|
|
1.30 %
|
|
1.39 %
|
|
1.44 %
|
|
1.27 %
|
Return on average
common equity
|
18.93
|
|
19.36
|
|
22.59
|
|
27.16
|
|
20.13
|
Net interest income to
average earning assets
|
3.44
|
|
3.45
|
|
3.47
|
|
3.31
|
|
3.01
|
|
|
|
|
|
|
|
|
|
|
(1) Taxable-equivalent
basis assuming a 21% tax rate.
|
Cullen/Frost
Bankers, Inc.
|
CONSOLIDATED
FINANCIAL SUMMARY (UNAUDITED)
|
|
|
2023
|
|
2022
|
|
3rd
Qtr
|
|
2nd
Qtr
|
|
1st
Qtr
|
|
4th
Qtr
|
|
3rd
Qtr
|
BALANCE SHEET
SUMMARY
|
|
|
|
|
|
|
|
|
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
Average
Balance:
|
|
|
|
|
|
|
|
|
|
Loans
|
$
17,965
|
|
$
17,664
|
|
$
17,319
|
|
$
17,063
|
|
$
16,823
|
Loans excluding
Paycheck Protection Program
|
17,945
|
|
17,638
|
|
17,287
|
|
17,020
|
|
16,752
|
Earning
assets
|
45,366
|
|
45,929
|
|
47,904
|
|
48,867
|
|
49,062
|
Total
assets
|
48,804
|
|
49,317
|
|
51,307
|
|
52,284
|
|
52,383
|
Non-interest-bearing
demand deposits
|
14,823
|
|
15,231
|
|
16,636
|
|
17,980
|
|
18,511
|
Interest-bearing
deposits
|
26,005
|
|
25,776
|
|
26,121
|
|
26,779
|
|
27,292
|
Total
deposits
|
40,828
|
|
41,007
|
|
42,757
|
|
44,759
|
|
45,803
|
Shareholders'
equity
|
3,372
|
|
3,470
|
|
3,305
|
|
2,913
|
|
3,459
|
|
|
|
|
|
|
|
|
|
|
Period-End
Balance:
|
|
|
|
|
|
|
|
|
|
Loans
|
$
18,399
|
|
$
17,746
|
|
$
17,486
|
|
$
17,155
|
|
$
16,951
|
Loans excluding
Paycheck Protection Program
|
18,381
|
|
17,724
|
|
17,458
|
|
17,120
|
|
16,900
|
Earning
assets
|
45,218
|
|
45,146
|
|
47,870
|
|
49,402
|
|
49,517
|
Total
assets
|
48,747
|
|
48,597
|
|
51,246
|
|
52,892
|
|
52,946
|
Total
deposits
|
40,992
|
|
40,701
|
|
42,184
|
|
43,954
|
|
46,560
|
Shareholders'
equity
|
3,000
|
|
3,387
|
|
3,468
|
|
3,137
|
|
2,812
|
Adjusted shareholders'
equity (1)
|
4,779
|
|
4,692
|
|
4,610
|
|
4,486
|
|
4,341
|
|
|
|
|
|
|
|
|
|
|
ASSET
QUALITY
|
|
|
|
|
|
|
|
|
|
($ in
thousands)
|
|
|
|
|
|
|
|
|
|
Allowance for credit
losses on loans:
|
$ 242,235
|
|
$ 233,619
|
|
$ 231,514
|
|
$ 227,621
|
|
$ 234,315
|
As a percentage of
period-end loans
|
1.32 %
|
|
1.32 %
|
|
1.32 %
|
|
1.33 %
|
|
1.38 %
|
|
|
|
|
|
|
|
|
|
|
Net
charge-offs:
|
$ 4,992
|
|
$ 9,828
|
|
$ 8,782
|
|
$ 3,810
|
|
$ 2,854
|
Annualized as a
percentage of average loans
|
0.11 %
|
|
0.22 %
|
|
0.21 %
|
|
0.09 %
|
|
0.07 %
|
|
|
|
|
|
|
|
|
|
|
Non-accrual
loans:
|
$
67,175
|
|
$
67,781
|
|
$
38,410
|
|
$
37,833
|
|
$
29,904
|
As a percentage of
total loans
|
0.37 %
|
|
0.38 %
|
|
0.22 %
|
|
0.22 %
|
|
0.18 %
|
As a percentage of
total assets
|
0.14
|
|
0.14
|
|
0.07
|
|
0.07
|
|
0.06
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED CAPITAL
RATIOS
|
|
|
|
|
|
|
|
|
|
Common Equity Tier 1
Risk-Based Capital Ratio
|
13.32 %
|
|
13.42 %
|
|
13.24 %
|
|
12.85 %
|
|
12.74 %
|
Tier 1 Risk-Based
Capital Ratio
|
13.81
|
|
13.92
|
|
13.74
|
|
13.35
|
|
13.26
|
Total Risk-Based
Capital Ratio
|
15.28
|
|
15.39
|
|
15.22
|
|
14.84
|
|
14.80
|
Leverage
Ratio
|
8.17
|
|
8.11
|
|
7.69
|
|
7.29
|
|
7.09
|
Equity to Assets Ratio
(period-end)
|
6.15
|
|
6.97
|
|
6.77
|
|
5.93
|
|
5.31
|
Equity to Assets Ratio
(average)
|
6.91
|
|
7.04
|
|
6.44
|
|
5.57
|
|
6.60
|
|
|
|
|
|
|
|
|
|
|
(1) Shareholders'
equity excluding accumulated other comprehensive income
(loss).
|
|
|
Cullen/Frost
Bankers, Inc.
|
CONSOLIDATED
FINANCIAL SUMMARY (UNAUDITED)
|
(In thousands, except
per share amounts)
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
|
|
|
|
|
September
30,
|
|
|
|
|
|
|
|
2023
|
|
2022
|
CONDENSED INCOME
STATEMENTS
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
|
|
|
|
|
$ 1,170,512
|
|
$
892,826
|
Net interest income
(1)
|
|
|
|
|
|
|
1,241,791
|
|
963,089
|
Credit loss
expense
|
|
|
|
|
|
|
30,190
|
|
—
|
Non-interest
income:
|
|
|
|
|
|
|
|
|
|
Trust and investment
management fees
|
|
|
|
|
|
|
113,152
|
|
114,984
|
Service charges on
deposit accounts
|
|
|
|
|
|
|
68,969
|
|
69,570
|
Insurance commissions
and fees
|
|
|
|
|
|
|
45,528
|
|
41,536
|
Interchange and card
transaction fees
|
|
|
|
|
|
|
14,811
|
|
13,751
|
Other charges,
commissions, and fees
|
|
|
|
|
|
|
36,922
|
|
30,609
|
Net gain (loss) on
securities transactions
|
|
|
|
|
|
|
66
|
|
—
|
Other
|
|
|
|
|
|
|
35,343
|
|
28,688
|
Total non-interest
income
|
|
|
|
|
|
|
314,791
|
|
299,138
|
|
|
|
|
|
|
|
|
|
|
Non-interest
expense:
|
|
|
|
|
|
|
|
|
|
Salaries and
wages
|
|
|
|
|
|
|
401,102
|
|
355,399
|
Employee
benefits
|
|
|
|
|
|
|
87,241
|
|
66,633
|
Net
occupancy
|
|
|
|
|
|
|
93,644
|
|
83,923
|
Technology, furniture,
and equipment
|
|
|
|
|
|
|
100,802
|
|
89,859
|
Deposit
insurance
|
|
|
|
|
|
|
18,480
|
|
11,636
|
Other
|
|
|
|
|
|
|
162,171
|
|
135,527
|
Total non-interest
expense
|
|
|
|
|
|
|
863,440
|
|
742,977
|
Income before income
taxes
|
|
|
|
|
|
|
591,673
|
|
448,987
|
Income taxes
|
|
|
|
|
|
|
96,251
|
|
61,011
|
Net income
|
|
|
|
|
|
|
495,422
|
|
387,976
|
Preferred stock
dividends
|
|
|
|
|
|
|
5,006
|
|
5,006
|
Net income available to
common shareholders
|
|
|
|
|
|
|
$
490,416
|
|
$
382,970
|
|
|
|
|
|
|
|
|
|
|
PER COMMON SHARE
DATA
|
|
|
|
|
|
|
|
|
|
Earnings per common
share - basic
|
|
|
|
|
|
|
$
7.56
|
|
$
5.92
|
Earnings per common
share - diluted
|
|
|
|
|
|
|
7.54
|
|
5.90
|
Cash dividends per
common share
|
|
|
|
|
|
|
2.66
|
|
2.37
|
Book value per common
share at end of quarter
|
|
|
|
|
|
|
44.59
|
|
41.53
|
|
|
|
|
|
|
|
|
|
|
OUTSTANDING COMMON
SHARES
|
|
|
|
|
|
|
|
|
|
Period-end common
shares
|
|
|
|
|
|
|
64,017
|
|
64,211
|
Weighted-average common
shares - basic
|
|
|
|
|
|
|
64,226
|
|
64,108
|
Dilutive effect of
stock compensation
|
|
|
|
|
|
|
208
|
|
369
|
Weighted-average common
shares - diluted
|
|
|
|
|
|
|
64,434
|
|
64,477
|
|
|
|
|
|
|
|
|
|
|
SELECTED ANNUALIZED
RATIOS
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
|
|
|
|
|
|
1.32 %
|
|
1.00 %
|
Return on average
common equity
|
|
|
|
|
|
|
20.25
|
|
14.19
|
Net interest income to
average earning assets
|
|
|
|
|
|
|
3.45
|
|
2.64
|
|
|
|
|
|
|
|
|
|
|
(1) Taxable-equivalent
basis assuming a 21% tax rate.
|
Cullen/Frost
Bankers, Inc.
|
CONSOLIDATED
FINANCIAL SUMMARY (UNAUDITED)
|
|
|
|
|
|
|
|
|
As of or for
the
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
|
|
|
|
|
September
30,
|
|
|
|
|
|
|
|
2023
|
|
2022
|
BALANCE SHEET
SUMMARY
|
|
|
|
|
|
|
|
|
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
Average
Balance:
|
|
|
|
|
|
|
|
|
|
Loans
|
|
|
|
|
|
|
$
17,652
|
|
$
16,630
|
Loans excluding
Paycheck Protection Program
|
|
|
|
|
|
|
17,626
|
|
16,458
|
Earning
assets
|
|
|
|
|
|
|
46,390
|
|
48,100
|
Total
assets
|
|
|
|
|
|
|
49,849
|
|
51,276
|
Non-interest-bearing
demand deposits
|
|
|
|
|
|
|
15,557
|
|
18,277
|
Interest-bearing
deposits
|
|
|
|
|
|
|
25,967
|
|
26,230
|
Total
deposits
|
|
|
|
|
|
|
41,524
|
|
44,507
|
Shareholders'
equity
|
|
|
|
|
|
|
3,383
|
|
3,753
|
|
|
|
|
|
|
|
|
|
|
Period-End
Balance:
|
|
|
|
|
|
|
|
|
|
Loans
|
|
|
|
|
|
|
$
18,399
|
|
$
16,951
|
Loans excluding
Paycheck Protection Program
|
|
|
|
|
|
|
18,381
|
|
16,900
|
Earning
assets
|
|
|
|
|
|
|
45,218
|
|
49,517
|
Total
assets
|
|
|
|
|
|
|
48,747
|
|
52,946
|
Total
deposits
|
|
|
|
|
|
|
40,992
|
|
46,560
|
Shareholders'
equity
|
|
|
|
|
|
|
3,000
|
|
2,812
|
Adjusted shareholders'
equity (1)
|
|
|
|
|
|
|
4,779
|
|
4,341
|
|
|
|
|
|
|
|
|
|
|
ASSET
QUALITY
|
|
|
|
|
|
|
|
|
|
($ in
thousands)
|
|
|
|
|
|
|
|
|
|
Allowance for credit
losses on loans:
|
|
|
|
|
|
|
$ 242,235
|
|
$ 234,315
|
As a percentage of
period-end loans
|
|
|
|
|
|
|
1.32 %
|
|
1.38 %
|
|
|
|
|
|
|
|
|
|
|
Net
charge-offs:
|
|
|
|
|
|
|
23,602
|
|
11,956
|
Annualized as a
percentage of average loans
|
|
|
|
|
|
|
0.18 %
|
|
0.10 %
|
|
|
|
|
|
|
|
|
|
|
Non-accrual
loans:
|
|
|
|
|
|
|
$
67,175
|
|
$
29,904
|
As a percentage of
total loans
|
|
|
|
|
|
|
0.37 %
|
|
0.18 %
|
As a percentage of
total assets
|
|
|
|
|
|
|
0.14
|
|
0.06
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED CAPITAL
RATIOS
|
|
|
|
|
|
|
|
|
|
Common Equity Tier 1
Risk-Based Capital Ratio
|
|
|
|
|
|
|
13.32 %
|
|
12.74 %
|
Tier 1 Risk-Based
Capital Ratio
|
|
|
|
|
|
|
13.81
|
|
13.26
|
Total Risk-Based
Capital Ratio
|
|
|
|
|
|
|
15.28
|
|
14.80
|
Leverage
Ratio
|
|
|
|
|
|
|
8.17
|
|
7.09
|
Equity to Assets Ratio
(period-end)
|
|
|
|
|
|
|
6.15
|
|
5.31
|
Equity to Assets Ratio
(average)
|
|
|
|
|
|
|
6.79
|
|
7.32
|
|
|
|
|
|
|
|
|
|
|
(1) Shareholders'
equity excluding accumulated other comprehensive income
(loss).
|
|
|
Cullen/Frost
Bankers, Inc.
|
TAXABLE-EQUIVALENT
YIELD/COST AND AVERAGE BALANCES (UNAUDITED)
|
|
|
2023
|
|
2022
|
|
3rd
Qtr
|
|
2nd
Qtr
|
|
1st
Qtr
|
|
4th
Qtr
|
|
3rd
Qtr
|
TAXABLE-EQUIVALENT
YIELD/COST(1)
|
|
|
|
|
|
|
|
|
|
Earning
Assets:
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits
|
5.33 %
|
|
5.05 %
|
|
4.57 %
|
|
3.70 %
|
|
2.27 %
|
Federal funds
sold
|
5.65
|
|
5.35
|
|
4.72
|
|
3.88
|
|
2.44
|
Resell
agreements
|
5.53
|
|
5.26
|
|
4.77
|
|
4.14
|
|
2.39
|
Securities
|
3.24
|
|
3.24
|
|
3.24
|
|
3.09
|
|
2.94
|
Loans, net of unearned
discounts
|
6.83
|
|
6.64
|
|
6.36
|
|
5.80
|
|
4.89
|
Total earning
assets
|
4.92
|
|
4.77
|
|
4.57
|
|
4.14
|
|
3.43
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing
Liabilities:
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits:
|
|
|
|
|
|
|
|
|
|
Savings and interest
checking
|
0.38
|
|
0.41
|
|
0.36
|
|
0.27
|
|
0.07
|
Money market deposit
accounts
|
2.78
|
|
2.68
|
|
2.47
|
|
1.94
|
|
1.08
|
Time
accounts
|
4.34
|
|
3.77
|
|
2.40
|
|
1.52
|
|
0.99
|
Total interest-bearing
deposits
|
2.12
|
|
1.87
|
|
1.52
|
|
1.16
|
|
0.62
|
|
|
|
|
|
|
|
|
|
|
Total
deposits
|
1.35
|
|
1.18
|
|
0.93
|
|
0.69
|
|
0.37
|
|
|
|
|
|
|
|
|
|
|
Federal funds
purchased
|
5.32
|
|
4.97
|
|
4.55
|
|
3.78
|
|
2.33
|
Repurchase
agreements
|
3.67
|
|
3.52
|
|
3.20
|
|
2.69
|
|
1.50
|
Junior subordinated
deferrable interest debentures
|
7.34
|
|
6.84
|
|
6.46
|
|
5.39
|
|
3.77
|
Subordinated notes
payable and other notes
|
4.69
|
|
4.69
|
|
4.69
|
|
4.69
|
|
4.69
|
Total interest-bearing
liabilities
|
2.33
|
|
2.11
|
|
1.79
|
|
1.37
|
|
0.71
|
|
|
|
|
|
|
|
|
|
|
Net interest
spread
|
2.59
|
|
2.66
|
|
2.78
|
|
2.77
|
|
2.72
|
Net interest income to
total average earning assets
|
3.44
|
|
3.45
|
|
3.47
|
|
3.31
|
|
3.01
|
|
|
|
|
|
|
|
|
|
|
AVERAGE
BALANCES
|
|
|
|
|
|
|
|
|
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits
|
$
6,747
|
|
$
6,880
|
|
$
8,687
|
|
$ 11,574
|
|
$ 12,776
|
Federal funds
sold
|
13
|
|
22
|
|
64
|
|
52
|
|
51
|
Resell
agreements
|
85
|
|
85
|
|
90
|
|
49
|
|
10
|
Securities
|
20,557
|
|
21,278
|
|
21,744
|
|
20,129
|
|
19,402
|
Loans, net of unearned
discount
|
17,965
|
|
17,664
|
|
17,319
|
|
17,063
|
|
16,823
|
Total earning
assets
|
$ 45,366
|
|
$ 45,929
|
|
$ 47,904
|
|
$ 48,867
|
|
$ 49,062
|
|
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits:
|
|
|
|
|
|
|
|
|
|
Savings and interest
checking
|
$ 10,202
|
|
$ 10,862
|
|
$ 11,662
|
|
$ 12,113
|
|
$ 12,235
|
Money market deposit
accounts
|
11,144
|
|
11,431
|
|
12,404
|
|
12,958
|
|
13,466
|
Time
accounts
|
4,659
|
|
3,483
|
|
2,055
|
|
1,708
|
|
1,591
|
Total interest-bearing
deposits
|
26,005
|
|
25,776
|
|
26,121
|
|
26,779
|
|
27,292
|
|
|
|
|
|
|
|
|
|
|
Total
deposits
|
40,828
|
|
41,007
|
|
42,757
|
|
44,759
|
|
45,803
|
|
|
|
|
|
|
|
|
|
|
Federal funds
purchased
|
21
|
|
33
|
|
51
|
|
37
|
|
42
|
Repurchase
agreements
|
3,536
|
|
3,719
|
|
4,211
|
|
3,575
|
|
1,960
|
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
|
$ 29,785
|
|
$ 29,750
|
|
$ 30,606
|
|
$ 30,613
|
|
$ 29,516
|
|
|
|
|
|
|
|
|
|
|
(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
View original content to download
multimedia:https://www.prnewswire.com/news-releases/cullenfrost-reports-third-quarter-results-301968069.html
SOURCE Cullen/Frost Bankers, Inc.