Q3 2024 Cullen/Frost Bankers Inc Earnings Call Transcript
Key Points
- Cullen/Frost Bankers Inc (CFR) reported strong loan growth, with average loans increasing by 11.8% year-over-year to $20.1 billion.
- The company achieved significant milestones in its expansion efforts, particularly in Houston and Dallas, surpassing deposit, loan, and new household goals.
- Consumer business saw robust growth, with a 21% year-over-year increase in average consumer loans, marking the ninth consecutive quarter of over 20% growth.
- Net interest margin improved slightly to 3.56%, driven by higher volumes and yields on loans.
- Cullen/Frost Bankers Inc (CFR) maintained strong credit quality, with net charge-offs and non-accrual loans at healthy levels.
- Earnings per share decreased to $2.24 from $2.38 in the same quarter last year, reflecting a decline in profitability.
- Average deposits slightly decreased by 20 basis points year-over-year, indicating challenges in deposit growth.
- Non-performing assets increased to $106 million from $76 million in the previous quarter, primarily due to a $120 million credit moving to non-accrual.
- The company anticipates a decrease in full-year average deposits, revising guidance to a decline of 1% to 2%.
- Increased competition in the lending market, particularly in commercial real estate, poses challenges for maintaining favorable loan structures.
Greetings. Welcome to Cullen/Frost Bankers, Inc., third-quarter 2024 earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded.
It is now my pleasure to introduce A.B. Mendez, Senior Vice President and Director of Investor Relations. Thank you. You may begin.
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Thanks, Jerry. This afternoon's conference call will be led by Phil Green, Chairman and CEO; Jerry Salinas, Group Executive Vice President and CFO; and Dan Geddes, our incoming CFO.
Before I turn the call over to Phil, Jerry, and Dan, I need to take a moment to address the safe harbor provisions. Some of the remarks made today will constitute forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995 as amended. We intend such statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 as amended. Please see
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