Thu, Jul 25, 7:06 PM (44 days ago)
For the quarter ending June 30, 2024, Cullen/Frost Bankers, Inc. reported mixed financial performance. Net income available to common shareholders decreased to $143.8 million ($2.21 per diluted share) from $160.4 million ($2.47 per diluted share) in the same quarter of 2023. This decline was primarily due to a significant 11.2% increase in non-interest expenses, driven by higher salaries, wages, and deposit insurance costs, as well as a 59.5% increase in credit loss expense. Net interest income rose modestly by 2.2% to $396.7 million, supported by higher average loan volumes and yields. However, this was partly offset by increased interest expenses on deposits and borrowings. The net interest margin improved slightly to 3.54%. Non-interest income grew by 7.4%, with notable increases in trust and investment management fees and service charges on deposit accounts. However, these gains were somewhat offset by higher operating costs, particularly in salaries, wages, and technology expenses. The company's loan portfolio expanded by 6.2% to $20.0 billion, driven by growth in commercial and industrial, and real estate loans. However, the allowance for credit losses also increased, reflecting heightened credit risk. Overall, Cullen/Frost's financial health remains robust, but rising costs and credit risks pose challenges.