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Investing.com -- Cullen/Frost Bankers, Inc. (NYSE:CFR) reported first quarter 2025 earnings that surpassed analyst expectations, driven by strong loan growth and higher net interest income. The company also announced a dividend increase, sending shares up 3% following the news.
The Texas-based bank reported Q1 adjusted earnings per share of $2.30, beating the analyst consensus of $2.15. Revenue rose 9.5% YoY to $560.41 million, exceeding estimates of $538.79 million.
Net interest income increased 6.1% YoY to $436.4 million, while average loans grew 8.8% to $20.8 billion compared to the same quarter last year. Average deposits rose 2.3% YoY to $41.7 billion.
"In the first quarter we continued to see solid loan growth, and our deposit trends returned to our normal first quarter seasonality," said Cullen/Frost Chairman and CEO Phil Green. "We remain focused on generating continued, sustainable organic growth and expanding to offer the Frost experience to more customers throughout the state."
The company’s board approved a 5.3% increase in its quarterly dividend to $1.00 per share, payable on June 13 to shareholders of record on May 30.
Non-interest income climbed 11.3% YoY to $124 million, boosted by higher trust and investment management fees, service charges, and insurance commissions.
Cullen/Frost reported a credit loss expense of $13.1 million for Q1, down from $13.7 million in the year-ago quarter. The allowance for credit losses on loans as a percentage of total loans stood at 1.32% at quarter-end.
The bank plans to open its 199th and 200th locations in the coming month, continuing its expansion efforts across Texas.
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