Cullen/Frost Reports Second Quarter Results

Rhea-AI Summary

Cullen/Frost Bankers reported second-quarter 2020 net income of $93.1 million, down from $109.6 million a year earlier. Earnings per share decreased to $1.47 from $1.72. Average loans rose 22.1% to $17.5 billion, while average deposits increased by 20.5% to $31.3 billion. The bank's net interest income declined by 2.9% to $269.7 million. Credit loss expenses related to loans were $27.2 million, contrasting with higher first-quarter figures. The board declared a third-quarter cash dividend of $0.71 per share, payable September 15, 2020.

Positive

• Average loans increased 22.1% to $17.5 billion.
• Average deposits rose 20.5% to $31.3 billion.
• The Common Equity Tier 1 ratio remains strong at 12.48%.
• Non-interest expense decreased by 1.7% year-over-year.

Negative

• Net income available to common shareholders dropped 15.0% year-over-year.
• Earnings per share fell 14.5% compared to the previous year.
• Net interest income decreased by 2.9% year-over-year.
• Non-performing assets increased to $85.2 million from $67.5 million in the first quarter.

SAN ANTONIO, July 30, 2020 /PRNewswire/ -- Cullen/Frost Bankers, Inc. (NYSE:CFR) today reported second quarter 2020 results. Net income available to common shareholders for the second quarter of 2020 was $93.1 million, compared to $109.6 million in the second quarter of 2019. On a per-share basis, net income available to common shareholders for the second quarter of 2020 was $1.47 per diluted common share, compared to $1.72 per diluted common share reported a year earlier. Returns on average assets and average common equity were 0.99 percent and 9.60 percent, respectively, for the second quarter of 2020 compared to 1.40 percent and 12.60 percent, respectively, for the same period a year earlier.

For the second quarter of 2020, net interest income on a taxable-equivalent basis was $269.7 million, down 2.9 percent compared to the same quarter in 2019. Average loans for the second quarter of 2020 increased $3.2 billion, or 22.1 percent, to $17.5 billion, from the $14.4 billion reported for the second quarter a year earlier. Excluding PPP loans, second quarter average loans of $15.1 billion represented a 4.7 percent increase compared to the second quarter of 2019. Average deposits for the quarter were $31.3 billion, up $5.3 billion, or 20.5 percent, compared to the $26.0 billion reported for last year's second quarter. 

"Our second quarter results demonstrate our continued commitment to serving our customers and our communities during these challenging times," said Phil Green, Cullen/Frost Chairman and CEO. "We finished the second quarter with approximately $3.2 billion in PPP loans outstanding. I'm extraordinarily proud that our company has been such a source of strength for our customers and our communities, and also a force for good in their lives."

For the first six months of 2020, net income available to common shareholders was $140.3 million, down 37.4 percent compared to $224.1 million for the first six months of 2019. Diluted EPS available to common shareholders for the first six months of 2020 was $2.21 compared to $3.51 in the year-earlier period, representing a decrease of 37.0 percent. Returns on average assets and average common equity for the first six months of 2020 were 0.79 percent and 7.24 percent, respectively, compared to 1.44 percent and 13.32 percent, respectively, for the same period in 2019.

Noted financial data for the second quarter of 2020 follows:

• For the second quarter of 2020, credit loss expense related to loans was $27.2 million, compared to net charge-offs of $41.0 million. This compares with $172.9 million in credit loss expense related to loans and $38.6 million in net charge-offs for the first quarter of 2020, and $6.4 million in credit loss expense related to loans and $7.8 million in net charge-offs in the second quarter of 2019. The allowance for credit losses on loans as a percentage of total loans was 1.39 percent at June 30, 2020, compared to 1.72 percent at the end of the first quarter of 2020 and 0.93 percent at the end of the second quarter of 2019. Excluding PPP loans which carry a guarantee from the SBA, the allowance for credit losses on loans as a percentage of total loans was 1.69 percent at the end of the second quarter of 2020. Non-performing assets were $85.2 million at the end of the second quarter of 2020, compared to $67.5 million at the end of the first quarter of 2020 and $76.4 million at the end of the second quarter of 2019. Credit loss expense related to off-balance-sheet credit exposures was $4.8 million in the second quarter of 2020, compared to $2.3 million in the first quarter of 2020.
• The Common Equity Tier 1, Tier 1 and Total Risk-Based Capital Ratios at the end of the second quarter of 2020 were 12.48 percent, 12.48 percent and 14.43 percent, respectively, and continue to be in excess of well-capitalized levels and exceed Basel III minimum requirements.
• Net interest income on a taxable-equivalent basis was $269.7 million, a decrease of 2.9 percent compared to the prior year period. The net interest margin was 3.13 percent for the second quarter of 2020, down 43 basis points compared to the first quarter of 2020 net interest margin of 3.56 percent. Net interest margin decreased 72 basis points compared to 3.85 percent in the year-ago period.
• Non-interest income for the second quarter of 2020 totaled $77.6 million, a decrease of $5.0 million, or 6.1 percent, from the $82.6 million reported for the second quarter of 2019. Service charges on deposits for the second quarter decreased $4.2 million, or 19.4 percent, compared to the same period in 2019. The decrease was primarily related to decreases in overdraft/insufficient funds charges on consumer and commercial accounts. Overdraft/insufficient funds charges were impacted by lower volumes in the second quarter. Other charges, commissions and fees for the second quarter decreased $1.3 million, or 14.2 percent, compared to the second quarter of 2019. The decrease was driven by a decrease in sales of investment products and services, among other things. Interchange and debit card transaction fees decreased by $902,000, or 23.3 percent, compared to the second quarter a year earlier. Revenue from interchange and debit card transactions was impacted by reduced transaction volumes resulting from the COVID-19 pandemic. Trust and investment management fees and insurance commissions and fees for the second quarter each increased by approximately $600,000 (2.0 percent and 5.4 percent, respectively) compared to the second quarter of 2019. The increase in trust investment fees was primarily related to an increase in the number of accounts. The increase in insurance commissions and fees was driven by increased commissions from commercial lines and, to a lesser extent, increased commissions on sales of personal lines property and casualty insurance.
• Non-interest expense was $199.7 million for the quarter, down $3.5 million, or 1.7 percent, compared to the $203.2 million reported for the second quarter a year earlier. Other non-interest expense of $36.1 million represented a $10.2 million, or 22.0 percent, decrease compared to the second quarter of 2019. The decrease was driven by decreases in advertising/promotions expense (down $3.1 million); travel, meals and entertainment expense (down $3.0 million); and business development expense (down $806,000), among other things. Another driver of the decrease in other non-interest expense in the second quarter of 2020 was $1.8 million in PPP-related expense deferrals. Employee benefits expense for the second quarter of 2020 decreased $1.2 million, or 5.9 percent, compared to the same period in 2019. The decrease in employee benefits expense during the three months ended June 30, 2020 was primarily related to decreases in certain discretionary benefit plan expenses partly offset by an increase in medical benefits expense and payroll taxes. Salaries and wages expense was $90.4 million in the second quarter of 2020, down $440,000 or 0.5% compared to the second quarter of 2019. The decrease was primarily related to the deferral of some salary costs as loan origination costs in connection with the high volume of PPP loan originations during the second quarter of 2020. PPP-related salary expense deferrals in the second quarter of 2020 were $5.5 million. Second quarter net occupancy expense increased by $4.1 million, or 19.6 percent, compared to the same period in 2019, primarily driven by our move starting in June of 2019 into our new corporate headquarters building in San Antonio and other leases related to existing facilities and to our expansion within the Houston market area. Technology, furniture and equipment expense for the second quarter increased by $3.9 million or 17.6 percent from the second quarter of 2019. The increases were primarily related to increases in cloud services expense (up $2.4 million), depreciation of furniture and equipment (up $961,000) and software maintenance expense (up $523,000).

The Cullen/Frost board declared a third-quarter cash dividend of $0.71 per common share, payable September 15, 2020 to shareholders of record on August 31 of this year.

Cullen/Frost Bankers, Inc. will host a conference call on Thursday, July 30, 2020, 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 or via webcast on our investor relations website linked below. Playback of the conference call will be available after 2 p.m. CT on the day of the call until midnight Sunday, August 2, 2020 at 855-859-2056 with Conference ID # of 9885929. A replay of the call will also be available by webcast at the URL listed below after 2 p.m. CT on the day of the call.

Cullen/Frost investor relations website: www.frostbank.com/investor-relations/

Cullen/Frost Bankers, Inc. (NYSE: CFR) is a financial holding company, headquartered in San Antonio, with $39.4 billion in assets at June 30, 2020. 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 www.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"), including statements regarding the potential effects of the ongoing COVID-19 pandemic on our business, financial condition, liquidity and results of operations, 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, services or operations; (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.
• The cost and effects of failure, interruption, or breach of security of our systems.
• 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 impact of the ongoing COVID-19 pandemic and any other pandemic, epidemic or health-related crisis.
• 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.

Further, statements about the potential effects of the ongoing COVID-19 pandemic on our business, financial condition, liquidity and results of operations may constitute forward-looking statements and are subject to the risk that the actual effects may differ, possibly materially, from what is reflected in those forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond our control, including the scope and duration of the pandemic, actions taken by governmental authorities in response to the pandemic, and the direct and indirect impact of the pandemic on our customers, clients, third parties and us.

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.

A.B. Mendez
Investor Relations
210.220.5234
     or
Bill Day
Media Relations
210.220.5427

Cullen/Frost Bankers, Inc.
CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)
(In thousands, except per share amounts)
	2020												2019
	2nd Qtr					1st Qtr							4th Qtr					3rd Qtr				2nd Qtr
CONDENSED INCOME STATEMENTS
Net interest income	$	245,811				$		244,521					$		251,098			$	253,007			$	253,431
Net interest income (1)	269,722					268,453							275,038					276,618				277,751
Credit loss expense (2)	31,975					175,197							8,355					8,001				6,400
Non-interest income:
Trust and investment management fees	31,060					34,473							32,928					31,649				30,448
Service charges on deposit accounts	17,580					22,651							23,454					22,941				21,798
Insurance commissions and fees	10,668					16,485							12,138					11,683				10,118
Interchange and debit card transaction fees	2,966					3,255							3,608					4,117				3,868
Other charges, commissions and fees	7,663					9,365							9,020					10,108				8,933
Net gain (loss) on securities transactions	—					108,989							28					96				169
Other	7,664					17,697							14,079					8,630				7,304
Total non-interest income	77,601					212,915							95,255					89,224				82,638
Non-interest expense:
Salaries and wages	90,350					98,812							97,951					93,812				90,790
Employee benefits	18,861					24,889							21,651					21,002				20,051
Net occupancy	25,266					25,384							24,864					24,202				21,133
Technology, furniture and equipment	26,046					25,240							25,759					22,415				22,157
Deposit insurance	2,800					2,624							2,374					2,491				2,453
Intangible amortization	241					257							264					274				305
Other	36,115					46,957							47,943					44,668				46,320
Total non-interest expense	199,679					224,163							220,806					208,864				203,209
Income before income taxes	91,758					58,076							117,192					125,366				126,460
Income taxes	(1,314)					3,323							13,511					13,530				14,874
Net income	93,072					54,753							103,681					111,836				111,586
Preferred stock dividends	—					2,016							2,016					2,016				2,015
Redemption of preferred stock	—					5,514							—					—				—
Net income available to common shareholders	$	93,072				$		47,223					$		101,665			$	109,820			109,571
PER COMMON SHARE DATA
Earnings per common share - basic	$	1.47				$		0.75					$		1.61			$	1.74			$	1.73
Earnings per common share - diluted	1.47					0.75							1.60					1.73				1.72
Cash dividends per common share	0.71					0.71							0.71					0.71				0.71
Book value per common share at end of quarter	63.97					61.17							60.11					59.76				57.39
OUTSTANDING COMMON SHARES
Period-end common shares	62,670					62,553							62,669					62,537				62,638
Weighted-average common shares - basic	62,596					62,643							62,609					62,566				62,789
Dilutive effect of stock compensation	205					407							625					593				765
Weighted-average common shares - diluted	62,801					63,050							63,234					63,159				63,554
SELECTED ANNUALIZED RATIOS
Return on average assets	0.99			%		0.57				%			1.21			%		1.35		%		1.40		%
Return on average common equity	9.60					4.88							10.74					11.83				12.60
Net interest income to average earning assets	3.13					3.56							3.62					3.76				3.85

(1) Taxable-equivalent basis assuming a 21% tax rate. (2) Provision for loan losses for periods prior to the first quarter of 2020.

 

Cullen/Frost Bankers, Inc.
CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)
	2020												2019
	2nd Qtr					1st Qtr							4th Qtr					3rd Qtr				2nd Qtr
BALANCE SHEET SUMMARY
($ in millions)
Average Balance:
Loans	17,550					$		14,995					$		14,705			$	14,471			$	14,375
Earning assets	35,128					30,804							30,621					29,693				29,114
Total assets	37,838					33,534							33,314					32,248				31,491
Non-interest-bearing demand deposits	13,785					10,737							10,772					10,316				10,148
Interest-bearing deposits	17,528					16,654							16,414					16,036				15,845
Total deposits	31,313					27,391							27,186					26,352				25,993
Shareholders' equity	3,899					4,009							3,900					3,828				3,632
Period-End Balance:
Loans	$	17,972				$		15,338					$		14,750			$	14,635			$	14,459
Earning assets	36,613					31,440							31,281					30,358				29,216
Goodwill and intangible assets	657					657							657					658				658
Total assets	39,378					34,147							34,027					33,098				31,817
Total deposits	32,679					28,141							27,640					27,084				25,985
Shareholders' equity	4,009					3,827							3,912					3,881				3,739
Adjusted shareholders' equity (1)	3,521					3,463							3,644					3,576				3,520
ASSET QUALITY
($ in thousands)
Allowance for credit losses on loans:	$	250,061				$		263,881					$		132,167			$	136,559			$	134,929
As a percentage of period-end loans	1.39			%		1.72				%			0.90			%		0.93		%		0.93		%
Net charge-offs:	$	41,048				$		38,646					$		12,747			$	6,371			$	7,821
Annualized as a percentage of average loans	0.94			%		1.04				%			0.34			%		0.17		%		0.22		%
Non-performing assets:
Non-accrual loans	$	79,461				$		66,727					$		102,303			$	97,446			$	71,521
Restructured loans	4,932					—							6,098					6,160				3,973
Foreclosed assets	806					806							1,084					1,427				907
Total	$	85,199				$		67,533					$		109,485			$	105,033			$	76,401
As a percentage of:
Total loans and foreclosed assets	0.47			%		0.44				%			0.74			%		0.72		%		0.53		%
Total assets	0.22					0.20							0.32					0.32				0.24
CONSOLIDATED CAPITAL RATIOS
Common Equity Tier 1 Risk-Based Capital Ratio	12.48			%		12.02				%			12.36			%		12.35		%		12.29		%
Tier 1 Risk-Based Capital Ratio	12.48					12.02							12.99					12.99				12.94
Total Risk-Based Capital Ratio	14.43					13.97							14.57					14.63				14.60
Leverage Ratio	8.01					8.84							9.28					9.36				9.40
Equity to Assets Ratio (period-end)	10.18					11.21							11.50					11.73				11.75
Equity to Assets Ratio (average)	10.30					11.95							11.71					11.87				11.53

(1) Shareholders' equity excluding accumulated other comprehensive income (loss).

 

Cullen/Frost Bankers, Inc.
CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)
(In thousands, except per share amounts)
				Six Months Ended
				June 30,
				2020				2019
CONDENSED INCOME STATEMENTS
Net interest income				$	490,332			$	499,900
Net interest income (1)				538,174				548,930
Credit loss expense (2)				207,172				17,403
Non-interest income:
Trust and investment management fees				65,533				62,145
Service charges on deposit accounts				40,231				42,588
Insurance commissions and fees				27,153				28,524
Interchange and debit card transaction fees				6,221				7,148
Other charges, commissions and fees				17,028				17,995
Net gain (loss) on securities transactions				108,989				169
Other				25,361				20,854
Total non-interest income				290,516				179,423
Non-interest expense:
Salaries and wages				189,162				183,266
Employee benefits				43,750				43,577
Net occupancy				50,650				40,400
Technology, furniture and equipment				51,286				43,821
Deposit insurance				5,424				5,261
Intangible amortization				498				630
Other				83,072				88,054
Total non-interest expense				423,842				405,009
Income before income taxes				149,834				256,911
Income taxes				2,009				28,829
Net income				147,825				228,082
Preferred stock dividends				2,016				4,031
Redemption of preferred stock				5,514				—
Net income available to common shareholders				$	140,295			$	224,051
PER COMMON SHARE DATA
Earnings per common share - basic				$	2.22			$	3.53
Earnings per common share - diluted				2.21				3.51
Cash dividends per common share				1.42				1.38
Book value per common share at end of quarter				63.97				57.39
OUTSTANDING COMMON SHARES
Period-end common shares				62,670				62,638
Weighted-average common shares - basic				62,619				62,899
Dilutive effect of stock compensation				301				791
Weighted-average common shares - diluted				62,920				63,690
SELECTED ANNUALIZED RATIOS
Return on average assets				0.79		%		1.44		%
Return on average common equity				7.24				13.32
Net interest income to average earning assets				3.33				3.82

(1) Taxable-equivalent basis assuming a 21% tax rate.

(2) Provision for loan losses for periods prior to the first quarter of 2020.

 

Cullen/Frost Bankers, Inc.
CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)
		As of or for the
		Six Months Ended
		June 30,
		2020				2019
BALANCE SHEET SUMMARY ($ in millions)
Average Balance:
Loans		$	16,272			$	14,291
Earning assets		32,966				29,035
Total assets		35,693				31,391
Non-interest-bearing demand deposits		12,261				10,170
Interest-bearing deposits		17,091				15,882
Total deposits		29,352				26,052
Shareholders' equity		3,954				3,537
Period-End Balance:
Loans		17,972				14,459
Earning assets		36,613				29,216
Goodwill and intangible assets		657				658
Total assets		39,378				31,817
Total deposits		32,679				25,985
Shareholders' equity		4,009				3,739
Adjusted shareholders' equity (1)		3,521				3,520
ASSET QUALITY ($ in thousands)
Allowance for credit losses on loans:		$	250,061			$	134,929
As a percentage of period-end loans		1.39		%		0.93		%
Net charge-offs:		$	79,694			$	14,606
Annualized as a percentage of average loans		0.98		%		0.21		%
Non-performing assets:
Non-accrual loans		$	79,461			$	71,521
Restructured loans		4,932				3,973
Foreclosed assets		806				907
Total		$	85,199			$	76,401
As a percentage of:
Total loans and foreclosed assets		0.47		%		0.53		%
Total assets		0.22				0.24
CONSOLIDATED CAPITAL RATIOS
Common Equity Tier 1 Risk-Based Capital Ratio		12.48		%		12.29		%
Tier 1 Risk-Based Capital Ratio		12.48				12.94
Total Risk-Based Capital Ratio		14.43				14.60
Leverage Ratio		8.01				9.40
Equity to Assets Ratio (period-end)		10.18				11.75
Equity to Assets Ratio (average)		11.08				11.27

(1) Shareholders' equity excluding accumulated other comprehensive income (loss).

 

Cullen/Frost Bankers, Inc.
TAXABLE-EQUIVALENT YIELD/COST AND AVERAGE BALANCES (UNAUDITED)
	2020								2019
	2nd Qtr				1st Qtr				4th Qtr				3rd Qtr				2nd Qtr
TAXABLE-EQUIVALENT YIELD/COST (1)
Earning Assets:
Interest-bearing deposits	0.10		%		1.24		%		1.64		%		2.19		%		2.64		%
Federal funds sold and resell agreements	0.27				1.22				1.71				2.21				2.48
Securities	3.53				3.46				3.37				3.43				3.42
Loans, net of unearned discounts	3.95				4.65				4.88				5.16				5.34
Total earning assets	3.24				3.84				3.98				4.21				4.33
Interest-Bearing Liabilities:
Interest-bearing deposits:
Savings and interest checking	0.02				0.02				0.04				0.07				0.08
Money market deposit accounts	0.09				0.50				0.66				0.93				1.03
Time accounts	1.40				1.67				1.72				1.74				1.66
Public funds	0.09				0.85				1.05				1.34				1.51
Total interest-bearing deposits	0.14				0.39				0.49				0.63				0.68
Total deposits	0.08				0.24				0.29				0.39				0.41
Federal funds purchased and repurchase agreements	0.15				0.95				1.21				1.53				1.69
Junior subordinated deferrable interest debentures	2.90				3.54				3.83				4.18				4.34
Subordinated notes	4.71				4.71				4.71				4.71				4.71
Federal Home Loan Bank advances	0.29				—				—				—				—
Total interest-bearing liabilities	0.19				0.47				0.59				0.75				0.80
Net interest spread	3.05				3.37				3.39				3.46				3.53
Net interest income to total average earning assets	3.13				3.56				3.62				3.76				3.85
AVERAGE BALANCES
($ in millions)
Assets:
Interest-bearing deposits	$	4,986			$	2,586			$	2,000			$	1,566			$	1,171
Federal funds sold and resell agreements	92				260				275				212				246
Securities	12,501				12,963				13,641				13,444				13,322
Loans, net of unearned discount	17,550				14,995				14,705				14,471				14,375
Total earning assets	$	35,128			$	30,804			$	30,621			$	29,693			$	29,114
Liabilities:
Interest-bearing deposits:
Savings and interest checking	$	7,615			$	7,030			$	6,850			$	6,712			$	6,774
Money market deposit accounts	8,230				7,874				7,905				7,763				7,588
Time accounts	1,118				1,109				1,069				1,023				970
Public funds	565				640				590				538				513
Total interest-bearing deposits	17,528				16,654				16,414				16,036				15,845
Total deposits	31,313				27,391				27,186				26,352				25,993
Federal funds purchased and repurchase agreements	1,295				1,259				1,418				1,291				1,242
Junior subordinated deferrable interest debentures	136				136				136				136				136
Subordinated notes	99				99				99				99				99
Federal Home Loan Bank advances	440				—				—				—				—
Total interest-bearing funds	$	19,498			$	18,149			$	18,067			$	17,562			$	17,322

(1) Taxable-equivalent basis assuming a 21% tax rate.

 

 

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SOURCE Cullen/Frost Bankers, Inc.

FAQ

What were Cullen/Frost's earnings for Q2 2020?

Cullen/Frost reported net income of $93.1 million for Q2 2020.

How much did earnings per share decline for CFR in Q2 2020?

Earnings per share for CFR declined to $1.47, down from $1.72 a year earlier.

What is the average loan increase reported by CFR?

CFR reported a 22.1% increase in average loans, reaching $17.5 billion.

What was the dividend declared by Cullen/Frost for Q3 2020?

The board declared a cash dividend of $0.71 per common share for Q3 2020.

How did non-performing assets change for CFR in Q2 2020?

Non-performing assets increased to $85.2 million in Q2 2020, up from $67.5 million in Q1 2020.