Cullen/Frost Bankers Reports $575.9 Million Net Income for 2024

Cullen/Frost Bankers, Inc. reported net income available to common shareholders of $575.9 million, or $8.87 diluted per common share, for the year ended December 31, 2024, a decrease of $15.4 million compared to the $591.3 million, or $9.10 diluted per common share, reported in 2023. This decrease resulted from a $74.1 million increase in non-interest expense and an $18.8 million increase in credit loss expense, partially offset by a $45.9 million increase in net interest income and a $30.6 million increase in non-interest income. The company's taxable-equivalent net interest income increased by $36.2 million to $1,687.8 million in 2024.

The increase in net interest income was primarily driven by higher average yields on loans and securities, and increased average volume of interest-bearing deposits, partially offset by increased costs on certain deposit accounts and decreased volume of securities. Non-interest income increased due to higher trust and investment management fees, service charges on deposit accounts, and insurance commissions and fees. Non-interest expense increased primarily due to higher salaries and wages, technology costs, and other operating expenses, partially offset by a decrease in deposit insurance expense related to a special assessment.

As of December 31, 2024, Cullen/Frost had total consolidated assets of $52.5 billion and employed 5,854 full-time equivalent employees. The company's loan portfolio increased by $1.9 billion (10.3%) year-over-year, with significant growth in energy and real estate loans. The allowance for credit losses on loans increased to $270.1 million, reflecting increased expected credit losses in several loan categories. The company's board of directors authorized a $150 million stock repurchase plan in January 2025, following a similar plan in 2024 under which $50 million in shares were repurchased.

The company's trust assets, including managed and custody assets, totaled an estimated $51.4 billion at year-end 2024, up from $47.2 billion in 2023. Cullen/Frost noted that its operations are subject to extensive government regulation and supervision, including capital adequacy standards under the Basel III Capital Rules, and that compliance with these regulations is a significant factor affecting its financial performance. The company also highlighted risks related to interest rate fluctuations, credit quality, cybersecurity, and competition within the financial services industry.

Looking ahead, Cullen/Frost acknowledged various factors that could affect future results, including changes in interest rates, economic conditions, regulatory changes, and competition from fintech companies. The company's outlook is contingent upon these and other factors, and no specific forward-looking statements regarding future performance were provided beyond the Federal Reserve's projections for the federal funds rate.