Cullen/Frost Reports Second Quarter Results

Noted financial data for the second quarter of 2017 follows:

• The Common Equity Tier 1, Tier 1 and Total Risk-Based Capital Ratios at the end of the second quarter of 2017 were 12.81 percent, 13.59 percent and 15.65 percent, respectively, and continue to be in excess of well-capitalized levels. Current capital ratios exceed Basel III fully phased-in requirements.
• Net-interest income on a taxable equivalent basis for the second quarter of 2017 totaled $258.0 million, an increase of 12.1 percent, compared to $230.2 million for the same period a year ago. This increase is mainly due to an increase in the volume of earning assets in both loans and securities, combined with higher yields on loans and cash balances that we maintain at the Federal Reserve. The net interest margin was 3.70 percent for the second quarter of 2017, an increase over the 3.57 percent reported for the second quarter of 2016 and 3.64 percent for the first quarter of 2017. The increase in the net interest margin compared to a year ago was primarily driven by an increase in the yield on earning assets.
• Non-interest income for the second quarter of 2017 totaled $81.1 million, an increase of $3.1 million, or 3.9 percent, compared to $78.0 million reported for the second quarter of 2016. This increase resulted primarily from trust and investment management fees which were $27.7 million, up $1.7 million, or 6.6 percent, from the second quarter of 2016. Investment fees were up $1.6 million, or 7.7 percent. The increase in investment fees was due to higher average equity valuations. Service charges on deposit accounts were $21.2 million up $1.3 million, or 6.7 percent.
• Non-interest expense was $188.1 million for the second quarter of 2017, up $8.6 million, or 4.8 percent, compared to the $179.4 million reported for the second quarter a year earlier. Total salaries rose $2.9 million, or 3.7 percent, to $81.0 million, and were impacted by normal annual merit and market increases combined with increases in the number of employees. Employee benefits were up $486,000, or 2.7 percent. Net occupancy expense rose $911,000, or 5.0 percent, mostly due to increases in lease expense. Deposit insurance expense was up $1.4 million from last year's second quarter, to $5.6 million. This increase was primarily due to an increase in the assessment rate impacted by a new surcharge as well as an increase in assets. Other expense was up $2.9 million, or 6.7 percent, with most of the increase resulting from check card related fraud losses, up by $1.4 million. In addition, advertising expense was up $577,000 and outside computer services were up $535,000.
• For the second quarter of 2017, the provision for loan losses was $8.4 million, and net charge-offs were $11.9 million. That compares with $8.0 million and $7.9 million, respectively, for the first quarter of 2017. For the second quarter of 2016, the provision for loan losses was $9.2 million, and net charge-offs were $21.4 million. The allowance for loan losses as a percentage of total loans was 1.20 percent at June 30, 2017, compared to 1.29 percent at the end of the second quarter of 2016 and 1.26 percent at the end of the first quarter of 2017. Non-performing assets were $90.2 million at the end of the second quarter of 2017, compared to $89.5 million at the end of the second quarter of 2016 and $118.2 million at the end of the first quarter of 2017.

In addition, the Cullen/Frost board today declared a third-quarter cash dividend of $.57 per common share, payable September 15, 2017 to shareholders of record on August 31 of this year. The board of directors also declared a cash dividend of $.3359375 per share of the Noncumulative Perpetual Preferred Stock, Series A, which is traded on the NYSE under the symbol "CFR PrA." The Series A Preferred Stock dividend is also payable on September 15, 2017, to shareholders of record on August 31 of this year.

Cullen/Frost Bankers, Inc. will host a conference call on Thursday, July 27, 2017, at 10 a.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 1-800-944-6430. Digital playback of the conference call will be available after 2 p.m. CT until midnight Sunday, July 30, 2017 at 855-859-2056 with Conference ID # of 52323043. The call will also be available by webcast at the URL listed below and available for playback after 2 p.m. CT. After entering the Web site, www.frostbank.com, scroll down to the bottom of the home page. Under Company Information, click on Investor Relations.

Cullen/Frost Bankers, Inc. (NYSE: CFR) is a financial holding company, headquartered in San Antonio, with $30.2 billion in assets at June 30, 2017. One of the 50 largest U.S. banks, 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 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 or services; (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:

• Local, regional, national and international economic conditions and the impact they may have on us and our customers and our assessment of that impact.
• Volatility and disruption in national and international financial and commodity markets.
• Government intervention in the U.S. financial system.
• 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 reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements.
• 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.
• The effect of changes in laws and regulations (including laws and regulations concerning taxes, banking, securities and insurance) with which we and our subsidiaries must comply.
• The soundness of other financial institutions.
• Political instability.
• Impairment of our goodwill or other intangible assets.
• Acts of God or of war or terrorism.
• 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, borrowings and savings habits.
• Changes in the financial performance and/or condition of our borrowers.
• Technological changes.
• Acquisitions and integration of acquired businesses.
• Our ability to increase market share and control expenses.
• Our ability to attract and retain qualified employees.
• Changes in the competitive environment in our markets and among banking organizations and other financial service providers.
• 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.
• Changes in the reliability of our vendors, internal control systems or information systems.
• Changes in our liquidity position.
• Changes in our organization, compensation and benefit plans.
• 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.
• Greater than expected costs or difficulties related to the integration of new products and lines of business.
• Our success at managing the risks involved in the foregoing items.

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.

Greg Parker
Investor Relations
210.220.5632
or
Bill Day
Media Relations
210.220.5427

Cullen/Frost Bankers, Inc.
CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)
(In thousands, except per share amounts)
	2017								2016
	2nd Qtr				1st Qtr				4th Qtr				3rd Qtr				2nd Qtr(2)
CONDENSED INCOME STATEMENTS
Net interest income	$	214,788			$	208,509			$	201,603			$	194,507			$	190,502
Net interest income (1)	258,020				252,393				244,961				235,665				230,158
Provision for loan losses	8,426				7,952				8,939				5,045				9,189
Non-interest income:
Trust and investment management fees	27,727				26,470				26,434				26,451				26,021
Service charges on deposit accounts	21,198				20,769				20,434				20,540				19,865
Insurance commissions and fees	9,728				13,821				11,342				11,029				9,360
Interchange and debit card transaction fees	5,692				5,574				5,531				5,435				5,381
Other charges, commissions and fees	9,898				9,592				9,798				10,703				10,069
Net gain (loss) on securities transactions	(50)				—				109				(37)				—
Other	6,887				7,474				19,786				7,993				7,321
Total non-interest income	81,080				83,700				93,434				82,114 Werbung Mehr Nachrichten zur Cullen-Frost Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 13:11 - ARIVA.DE Redaktion Allianz-Aktie: Kurs nur geringfügig im Minus (261,80 €) 02:00 - PR Newswire Invesco Select Trust Plc - Tender Prices and Tender Purchases Auf zur INVEST am 26.+ 27.04.2024    Foto: Landesmesse Stuttgart GmbH - Jetzt kostenloses Ticket sichern! weiterlesen» Anzeige wo-site-teaser-box-16688_site-teaser-box_2024-04-17_09%253A00%253A00_2024-04-22_09%253A00%253A59