Q2 2024 Cullen/Frost Bankers Inc Earnings Call Transcript
Key Points
- Cullen/Frost Bankers Inc (CFR) reported strong loan growth, with average loans increasing by more than 11% year-over-year to $19.7 billion.
- The company's organic growth strategy continues to yield positive results, particularly in the Houston, Dallas, and Austin expansion projects.
- Consumer loan balances saw a significant increase of over 22% year-over-year, driven by record consumer real estate lending and new mortgage products.
- Cullen/Frost Bankers Inc (CFR) maintained a healthy net interest margin of 3.54%, up six basis points from the previous quarter.
- The company has been recognized for its outstanding service, with J.D. Power acknowledging its excellence for 15 consecutive years.
- Earnings per share decreased to $2.21 from $2.47 in the same quarter last year, reflecting a decline in profitability.
- Average deposits fell by 1.2% year-over-year, indicating a potential challenge in attracting or retaining depositors.
- Nonperforming assets increased to $75 million from $69 million a year ago, suggesting a rise in credit risk.
- The company experienced a mix shift in deposits, with non-interest-bearing deposits decreasing by 2.1% while interest-bearing deposits increased slightly.
- Problem loans, defined as risk grade 10 or higher, rose to $986 million from $442 million a year ago, driven by issues in the contractor and automobile dealer sectors.
Please stand by for streaming text. We will be starting in just a few minutes.
Greetings. Welcome to Cullen/Frost Bankers Inc. Second Quarter 2024 Earnings Conference Call. (Operator Instructions) Please note, this conference is being recorded.
I will now turn the conference over to A.B. Mendez, Senior Vice President and Director of Investor Relations. Thank you. You may begin.
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Thank you A.B. February was garbled goal will be led by Phil Green, Chairman and CEO, and Jerry Salinas, Group Executive Vice President and CFO. Before I turn the call over to Phil and Jerry, I'm going to take a moment to address the Safe Harbor provisions 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 are covered by the Safe Harbor provisions for forward-looking statements contained in the Private
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