Cullen/Frost reports Q3 EPS $2.38, consensus $2.15

Common Equity Tier 1, Tier 1 and Total Risk-Based Capital Ratios at the end of Q3 were 13.32%, 13.81% and 15.28%, respectively. NII on a taxable-equivalent basis was $407.4M, up 7.3% vs. the prior year period. Net interest margin was 3.44% for Q3 compared to 3.45% for Q12 2023 and 3.01% for Q3 2022. Reported a credit loss expense of $11.2M and net charge-offs of $5.0M vs. a credit loss expense of $9.9M and net charge-offs of $2.9M for Q2 2023 and no credit loss expense and net charge-offs of $2.9M for Q3 2022. “Our Q3 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 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.”