Cullen/Frost Bankers Reports $150.9 Million Net Income in Q1 2025

Cullen/Frost Bankers, Inc. reported a net income of $150.9 million for the first quarter of 2025, translating to earnings of $2.30 per diluted share, an increase from $135.7 million, or $2.06 per diluted share, in the same period of 2024. The bank's total revenue for the quarter was $540.2 million, up from $501.4 million year-over-year, driven by a $26.2 million increase in net interest income and a $12.6 million rise in non-interest income. The net interest income reached $416.2 million, while non-interest income totaled $124.0 million, reflecting strong performance across various segments.

In comparison to the previous fiscal period, Cullen/Frost experienced a 6.7% increase in non-interest expenses, totaling $348.1 million, primarily due to higher salaries and wages, employee benefits, and technology-related costs. The bank's credit loss expense decreased slightly to $13.1 million from $13.7 million in the prior year, indicating a stable credit quality environment. The allowance for credit losses on loans increased to $275.5 million, representing 1.32% of total loans, up from 1.30% at the end of 2024.

Operationally, Cullen/Frost's loan portfolio grew to $20.9 billion, a 0.7% increase from the previous quarter, with notable increases in commercial and industrial loans and consumer real estate loans. The bank's total deposits decreased to $42.4 billion from $42.7 billion, with a shift in the composition towards more interest-bearing deposits. The bank's average assets rose to $50.9 billion, reflecting a 3.2% increase year-over-year, while the average loans increased by $1.7 billion, or 8.8%.

Strategically, Cullen/Frost continues to focus on enhancing its product offerings and expanding its market presence. The bank has authorized a $150 million stock repurchase program, which is expected to be executed over the next year. The management remains optimistic about future growth, citing a favorable economic outlook and the potential for further increases in net interest income as interest rates stabilize. The bank's capital ratios remain strong, with a Common Equity Tier 1 capital ratio of 13.84%, well above regulatory requirements, indicating a solid foundation for future growth and stability.