CFR
Board declares first quarter dividend on common and preferred stock, and authorizes $150 million stock repurchase program
SAN ANTONIO, Jan. 30, 2025 /PRNewswire/ -- Cullen/Frost Bankers, Inc. (NYSE:CFR) today reported fourth quarter and full-year results for 2024. Net income available to common shareholders for the fourth quarter of 2024 was $153.2 million, representing a $52.3 million increase compared to $100.9 million reported for the fourth quarter of 2023. Results for the fourth quarter of 2023 were impacted by a $51.5 million ($40.7 million net of tax) special surcharge associated with FDIC insurance. Excluding the FDIC surcharge in the year-ago period, fourth quarter 2024 net income available to common shareholders increased by $11.6 million, or 8.2 percent, compared to $141.6 million for the fourth quarter of 2023. On a per-share basis, the company reported net income available to common shareholders of $2.36 per diluted common share for the fourth quarter of 2024, compared to $1.55 per diluted common share for the fourth quarter of 2023. Excluding the after-tax impact of the FDIC surcharge in the fourth quarter of 2023, fourth quarter 2024 diluted earnings per common share increased 8.3 percent compared to $2.18 per diluted common share for the fourth quarter of 2023. The FDIC special surcharge did not affect the fourth quarter of 2024, however, we recognized a total of $9.0 million in such surcharges in the first and second quarters of 2024. For the fourth quarter of 2024, returns on average assets and average common equity were 1.19 percent and 15.58 percent, respectively, compared to 0.82 percent and 13.51 percent for the same period in 2023. Excluding the special FDIC insurance surcharge, returns on average assets and average common equity for the fourth quarter of 2023 would have been approximately 1.14 percent and 18.96 percent.
The company also reported 2024 annual net income available to common shareholders of $575.9 million, a decrease of 2.6 percent compared to 2023 earnings available to common shareholders of $591.3 million. Excluding the aforementioned special FDIC surcharge amounts, annual net income available to common shareholders for 2024 would have been $583.0 million, representing a decrease of $49.0 million, or 7.8 percent, compared to $632.0 million for 2023. On a per-share basis, 2024 earnings were $8.87 per diluted common share compared to $9.10 per diluted common share reported in 2023. Excluding the after-tax impact of the FDIC surcharge in both periods, 2024 diluted earnings per common share were $8.98 compared to $9.72 per diluted common share reported in 2023. For the year 2024, returns on average assets and average common equity were 1.16 percent and 15.81 percent respectively, compared to 1.19 percent and 18.66 percent reported in 2023.
"Our solid financial results for the fourth quarter were the result of continued focus and execution on the part of Frost bankers throughout the company," said Cullen/Frost Chairman and CEO Phil Green. "Our people show their commitment to excellence in the way that they carry out our mission each day. That results in an unparalleled customer experience, and ultimately in our consistent growth in new customer relationships. In the fourth quarter, we saw average deposits return to growth on both a linked-quarter and a year-over-year basis."
For the fourth quarter of 2024, net interest income on a taxable-equivalent basis was $433.7 million, up $23.8 million or 5.8 percent compared to $409.9 million for fourth quarter of 2023. Average loans for the fourth quarter of 2024 increased $1.7 billion, or 9.3 percent, to $20.3 billion, from the $18.6 billion reported for the fourth quarter a year earlier, and increased 1.3 percent compared to $20.1 billion for the third quarter of 2024. Average deposits for the quarter increased $701.7 million, or 1.7 percent to $41.9 billion compared to $41.2 billion in last year's fourth quarter, and increased 2.8 percent compared to $40.7 billion for the third quarter of 2024. Compared to the third quarter of 2024, fourth quarter average non-interest-bearing deposits increased by 2.9 percent and average interest-bearing deposits increased by 2.8 percent.
For full year 2024, average total loans were $19.8 billion, an increase of approximately $1.9 billion, or 10.7 percent, from the $17.9 billion reported in 2023. Average total deposits for 2024 were $41.0 billion, down $472.8 million, or 1.1 percent, compared to the $41.4 billion reported for full year 2023.
Noted financial data for the fourth quarter:
The Cullen/Frost board declared a first-quarter cash dividend of $0.95 per common share, payable March 14, 2025, to shareholders of record on February 28 of this year. The board of directors also declared a cash dividend of $11.125 per share of Series B Preferred Stock (or $0.278125 per depositary share). The depositary shares representing the Series B Preferred Stock are traded on the NYSE under the symbol "CFR PrB." The Series B Preferred Stock dividend is payable on March 17, 2025, to shareholders of record on February 28 of this year.
In addition, the company's board of directors approved a new share repurchase program with authorization to purchase up to $150 million of Cullen/Frost common stock over a one-year period expiring on January 28, 2026. Share repurchases under the authorization may be made through a variety of methods, which may include open market purchases, in privately negotiated transactions, block trades, accelerated share repurchase transactions, and/or through other legally permissible means. The timing and amount of any share repurchases under the authorization will be determined by management at its discretion and based on market conditions and other considerations. The share repurchase program may be suspended or discontinued at any time at the company's discretion and does not obligate Cullen/Frost to purchase any amount of common stock.
Cullen/Frost Bankers, Inc. will host a conference call on Thursday, January 30, 2025, at 1:00 p.m. Central Time (CT) to discuss the results for the quarter and the year. The media and other interested parties are invited to access the call in a "listen only" mode at 877-709-8150. Playback of the conference call will be available after 5:00 p.m. CT on the day of the call until midnight Sunday, February 2 at 877-660-6853, with the Conference ID# of
13750974. A replay of the call will also be available by webcast at the URL listed below after 5:00 p.m. CT on the day of the call.
Cullen/Frost investor relations website: https://investor.frostbank.com/
Cullen/Frost Bankers, Inc. (NYSE: CFR) is a financial holding company, headquartered in San Antonio, with $52.5 billion in assets at December 31, 2024. 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, Dallas, Fort Worth, Gulf Coast, Houston, Permian Basin, 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 press 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, 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:
In addition, financial markets and global supply chains may continue to be adversely affected by the current or anticipated impact of global wars/military conflicts, terrorism, or other geopolitical events.
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.
Cullen/Frost Bankers, Inc.
CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)
(In thousands, except per share amounts)
2024
2023
4th Qtr
3rd Qtr
2nd Qtr
1st Qtr
4th Qtr
CONDENSED INCOME STATEMENTS
Net interest income
$ 413,518
$ 404,331
$ 396,712
$ 390,051
$ 388,152
Net interest income (1)
433,726
425,160
417,621
411,367
409,904
Credit loss expense
16,162
19,386
15,787
13,650
15,981
Non-interest income:
Trust and investment management fees
43,765
41,016
41,404
39,085
40,163
Service charges on deposit accounts
27,909
27,412
26,114
24,795
24,535
Insurance commissions and fees
14,215
14,839
13,919
18,296
12,743
Interchange and card transaction fees
5,764
5,428
5,351
4,474
4,608
Other charges, commissions and fees
15,208
13,060
13,020
12,060
12,104
Net gain (loss) on securities transactions
(112)
16
—
—
—
Other
16,075
11,936
11,382
12,667
19,598
Total non-interest income
122,824
113,707
111,190
111,377
113,751
Non-interest expense:
Salaries and wages
165,520
156,637
151,237
148,000
146,616
Employee benefits
28,614
29,060
28,802
35,970
28,065
Net occupancy
32,102
32,497
32,374
31,778
30,752
Technology, furniture and equipment
39,775
37,766
35,951
34,995
34,484
Deposit insurance
6,924
7,238
8,383
14,724
58,109
Other
63,232
60,212
60,217
60,750
67,196
Total non-interest expense
336,167
323,410
316,964
326,217
365,222
Income before income taxes
184,013
175,242
175,151
161,561
120,700
Income taxes
29,161
28,741
29,652
25,871
18,149
Net income
154,852
146,501
145,499
135,690
102,551
Preferred stock dividends
1,669
1,668
1,669
1,669
1,669
Net income available to common shareholders
$ 153,183
$ 144,833
$ 143,830
$ 134,021
$ 100,882
PER COMMON SHARE DATA
Earnings per common share - basic
$ 2.37
$ 2.24
$ 2.21
$ 2.06
$ 1.55
Earnings per common share - diluted
2.36
2.24
2.21
2.06
1.55
Cash dividends per common share
0.95
0.95
0.92
0.92
0.92
Book value per common share at end of quarter
58.46
62.41
55.02
54.36
55.64
OUTSTANDING COMMON SHARES
Period-end common shares
64,197
63,931
63,989
64,251
64,185
Weighted-average common shares - basic
64,116
63,958
64,193
64,216
64,139
Dilutive effect of stock compensation
121
127
140
156
176
Weighted-average common shares - diluted
64,237
64,085
64,333
64,372
64,315
SELECTED ANNUALIZED RATIOS
Return on average assets
1.19 %
1.16 %
1.18 %
1.09 %
0.82 %
Return on average common equity
15.58
15.48
17.08
15.22
13.51
Net interest income to average earning assets (1)
3.53
3.56
3.54
3.48
3.41
(1) Taxable-equivalent basis assuming a 21% tax rate.
Cullen/Frost Bankers, Inc.
CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)
2024
2023
4th Qtr
3rd Qtr
2nd Qtr
1st Qtr
4th Qtr
BALANCE SHEET SUMMARY
($ in millions)
Average Balance:
Loans
$ 20,346
$ 20,084
$ 19,652
$ 19,112
$ 18,609
Earning assets
47,577
46,100
45,527
45,883
45,579
Total assets
51,008
49,467
48,960
49,324
49,087
Non-interest-bearing demand deposits
14,051
13,659
13,679
13,976
14,697
Interest-bearing deposits
27,834
27,074
26,831
26,748
26,487
Total deposits
41,885
40,733
40,510
40,724
41,184
Shareholders' equity
4,057
3,868
3,533
3,687
3,108
Period-End Balance:
Loans
$ 20,755
$ 20,055
$ 19,996
$ 19,388
$ 18,824
Earning assets
48,878
47,424
45,344
46,164
47,124
Total assets
52,520
51,008
48,843
49,505
50,845
Total deposits
42,723
41,721
40,318
40,806
41,921
Shareholders' equity
3,899
4,135
3,666
3,638
3,716
Adjusted shareholders' equity (1)
5,151
5,051
4,975
4,914
4,836
ASSET QUALITY
($ in thousands)
Allowance for credit losses on loans:
$ 270,151
$ 263,129
$ 256,307
$ 250,297
$ 245,996
As a percentage of period-end loans
1.30 %
1.31 %
1.28 %
1.29 %
1.31 %
Net charge-offs:
$ 13,962
$ 9,640
$ 9,726
$ 7,349
$ 10,884
Annualized as a percentage of average loans
0.27 %
0.19 %
0.20 %
0.15 %
0.23 %
Non-accrual loans:
$ 78,866
$ 104,877
$ 74,987
$ 71,515
$ 60,907
As a percentage of total loans
0.38 %
0.52 %
0.38 %
0.37 %
0.32 %
As a percentage of total assets
0.15
0.21
0.15
0.14
0.12
CONSOLIDATED CAPITAL RATIOS
Common Equity Tier 1 Risk-Based Capital Ratio
13.62 %
13.55 %
13.35 %
13.41 %
13.25 %
Tier 1 Risk-Based Capital Ratio
14.07
14.02
13.82
13.89
13.73
Total Risk-Based Capital Ratio
15.53
15.50
15.27
15.35
15.18
Leverage Ratio
8.63
8.80
8.62
8.44
8.35
Equity to Assets Ratio (period-end)
7.42
8.11
7.51
7.35
7.31
Equity to Assets Ratio (average)
7.95
7.82
7.22
7.47
6.33
(1) Shareholders' equity excluding accumulated other comprehensive income (loss).
Cullen/Frost Bankers, Inc.
CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)
(In thousands, except per share amounts)
Year Ended December 31,
2024
2023
2022
CONDENSED INCOME STATEMENTS
Net interest income
$ 1,604,612
$ 1,558,664
$ 1,291,283
Net interest income (1)
1,687,873
1,651,695
1,386,981
Credit loss expense
64,985
46,171
3,000
Non-interest income:
Trust and investment management fees
165,270
153,315
154,679
Service charges on deposit accounts
106,230
93,504
91,891
Insurance commissions and fees
61,269
58,271
53,210
Interchange and card transaction fees
21,017
19,419
18,231
Other charges, commissions and fees
53,348
49,026
41,590
Net gain (loss) on securities transactions
(96)
66
—
Other
52,060
54,941
45,217
Total non-interest income
459,098
428,542
404,818
Non-interest expense:
Salaries and wages
621,394
547,718
492,096
Employee benefits
122,446
115,306
88,608
Net occupancy
128,751
124,396
112,495
Technology, furniture and equipment
148,487
135,286
120,771
Deposit insurance
37,269
76,589
15,603
Other
244,411
229,367
194,701
Total non-interest expense
1,302,758
1,228,662
1,024,274
Income before income taxes
695,967
712,373
668,827
Income taxes
113,425
114,400
89,677
Net income
582,542
597,973
579,150
Preferred stock dividends
6,675
6,675
6,675
Net income available to common shareholders
$ 575,867
$ 591,298
$ 572,475
PER COMMON SHARE DATA
Earnings per common share - basic
$ 8.88
$ 9.11
$ 8.84
Earnings per common share - diluted
8.87
9.10
8.81
Cash dividends per common share
3.74
3.58
3.24
Book value per common share at end of quarter
58.46
55.64
46.49
OUTSTANDING COMMON SHARES
Period-end common shares
64,197
64,185
64,355
Weighted-average common shares - basic
64,121
64,204
64,157
Dilutive effect of stock compensation
142
201
364
Weighted-average common shares - diluted
64,263
64,405
64,521
SELECTED ANNUALIZED RATIOS
Return on average assets
1.16 %
1.19 %
1.11 %
Return on average common equity
15.81
18.66
16.86
Net interest income to average earning assets (1)
3.53
3.45
2.82
(1) Taxable-equivalent basis assuming a 21% tax rate.
Cullen/Frost Bankers, Inc.
CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)
Year Ended December 31,
2024
2023
2022
BALANCE SHEET SUMMARY ($ in millions)
Average Balance:
Loans
$ 19,801
$ 17,893
$ 16,739
Earning assets
46,275
46,186
48,293
Total assets
49,694
49,604
51,513
Non-interest-bearing demand deposits
13,841
15,340
18,203
Interest-bearing deposits
27,124
26,098
26,368
Total deposits
40,965
41,438
44,571
Shareholders' equity
3,787
3,313
3,541
Period-End Balance:
Loans
$ 20,755
$ 18,824
$ 17,155
Earning assets
48,878
47,124
49,402
Total assets
52,520
50,845
52,892
Total deposits
42,723
41,921
43,954
Shareholders' equity
3,899
3,716
3,137
Adjusted shareholders' equity (1)
5,151
4,836
4,486
ASSET QUALITY ($ in thousands)
Allowance for credit losses on loan:
$ 270,151
$ 245,996
$ 227,621
As a percentage of period-end loans
1.30 %
1.31 %
1.33 %
Net charge-offs:
$ 40,677
$ 34,486
$ 15,766
Annualized as a percentage of average loans
0.21 %
0.19 %
0.09 %
Non-accrual loans:
$ 78,866
$ 60,907
$ 37,833
As a percentage of total loans
0.38 %
0.32 %
0.22 %
As a percentage of total assets
0.15
0.12
0.07
CONSOLIDATED CAPITAL RATIOS
Common Equity Tier 1 Risk-Based Capital Ratio
13.62 %
13.25 %
12.85 %
Tier 1 Risk-Based Capital Ratio
14.07
13.73
13.35
Total Risk-Based Capital Ratio
15.53
15.18
14.84
Leverage Ratio
8.63
8.35
7.29
Equity to Assets Ratio (period-end)
7.42
7.31
5.93
Equity to Assets Ratio (average)
7.62
6.68
6.87
(1) Shareholders' equity excluding accumulated other comprehensive income (loss).
Cullen/Frost Bankers, Inc.
TAXABLE-EQUIVALENT YIELD/COST AND AVERAGE BALANCES (UNAUDITED)
2024
2023
4th Qtr
3rd Qtr
2nd Qtr
1st Qtr
4th Qtr
TAXABLE-EQUIVALENT YIELD/COST(1)
Earning Assets:
Interest-bearing deposits
4.71 %
5.32 %
5.40 %
5.40 %
5.39 %
Federal funds sold
5.16
5.65
5.78
5.76
5.73
Resell agreements
4.88
5.48
5.60
5.60
5.60
Securities(2)
3.44
3.40
3.38
3.32
3.24
Loans, net of unearned discounts
6.77
7.12
7.08
7.00
6.92
Total earning assets
5.05
5.26
5.23
5.13
5.00
Interest-Bearing Liabilities:
Interest-bearing deposits:
Savings and interest checking
0.29 %
0.38 %
0.39 %
0.42 %
0.40 %
Money market deposit accounts
2.47
2.80
2.83
2.82
2.83
Time accounts
4.32
4.73
4.77
4.73
4.59
Total interest-bearing deposits
2.14
2.41
2.39
2.34
2.27
Total deposits
1.42
1.60
1.58
1.54
1.46
Federal funds purchased
4.71
5.33
5.39
5.38
5.40
Repurchase agreements
3.34
3.72
3.75
3.76
3.75
Junior subordinated deferrable interest debentures
6.87
7.14
7.47
7.34
7.45
Subordinated notes payable and other notes
4.69
4.69
4.69
4.69
4.69
Total interest-bearing liabilities
2.32
2.60
2.59
2.54
2.48
Net interest spread
2.73
2.66
2.64
2.59
2.52
Net interest income to total average earning assets
3.53
3.56
3.54
3.48
3.41
AVERAGE BALANCES
($ in millions)
Assets:
Interest-bearing deposits
$ 8,577
$ 7,073
$ 7,156
$ 7,356
$ 7,047
Federal funds sold
3
4
5
5
3
Resell agreements
11
41
85
85
86
Securities - carrying value(2)
18,640
18,898
18,629
19,324
19,834
Securities - amortized cost(2)
19,944
20,324
20,400
20,813
21,969
Loans, net of unearned discount
20,346
20,084
19,652
19,112
18,609
Total earning assets
$ 47,577
$ 46,100
$ 45,527
$ 45,883
$ 45,579
Liabilities:
Interest-bearing deposits:
Savings and interest checking
$ 9,693
$ 9,470
$ 9,716
$ 9,918
$ 9,986
Money market deposit accounts
11,683
11,122
11,009
11,058
11,219
Time accounts
6,458
6,482
6,106
5,773
5,282
Total interest-bearing deposits
27,834
27,074
26,831
26,748
26,487
Total deposits
41,885
40,733
40,510
40,724
41,184
Federal funds purchased
24
20
40
33
18
Repurchase agreements
3,946
3,777
3,827
3,787
3,761
Junior subordinated deferrable interest debentures
123
123
123
123
123
Subordinated notes payable and other notes
100
100
100
100
99
Total interest-bearing funds
$ 32,027
$ 31,094
$ 30,921
$ 30,791
$ 30,488
(1) Taxable-equivalent basis assuming a 21% tax rate.
(2) Average securities include unrealized gains and losses on securities available for sale while yields are based on average amortized cost.
A.B. MendezInvestor Relations210.220.5234 orBill DayMedia Relations210.220.5427
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SOURCE Cullen/Frost Bankers, Inc.