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Dec 31, 2022
Cullen/Frost Bankers Q4 2022 Earnings Report
Cullen/Frost Bankers reported strong Q4 2022 results driven by organic growth and increased net interest income.
Key Takeaways
Cullen/Frost Bankers reported a significant increase in net income available to common shareholders for Q4 2022, reaching $189.5 million, a 90.7% increase compared to Q4 2021. Earnings per diluted common share rose to $2.91, and net interest income saw a substantial increase. The company's organic growth strategy, particularly in Houston and Dallas, contributed to the positive results.
Net income available to common shareholders increased by 90.7% to $189.5 million compared to Q4 2021.
Earnings per diluted common share rose to $2.91, up from $1.54 in Q4 2021.
Net interest income on a taxable-equivalent basis increased by 60.5% to $423.9 million.
Average loans increased by 6.8% to $17.1 billion compared to Q4 2021.
Cullen/Frost Bankers
Cullen/Frost Bankers
Cullen/Frost Bankers Revenue by Segment
Revenue by Segment
Trust and investment fees Revenue
CapyFin.comService charges on deposits Revenue
CapyFin.comInsurance commissions Revenue
CapyFin.comInterchange and card fees Revenue
CapyFin.comOther charges, commissions, fees Revenue
CapyFin.com Forward Guidance
The company did not provide specific forward guidance in this earnings report. However, the CEO expressed confidence in the company's momentum as they enter 2023, citing the success of their organic growth strategy and new initiatives like the mortgage pilot program.
Positive Outlook
- Organic growth strategy paying off in Houston with newly opened locations surpassing $1 billion in deposits.
- Expansion in Dallas with 10 new financial centers and over 100 banking positions filled.
- Successful launch of mortgage pilot program with the first loan closed.
- Strong capital ratios exceeding well-capitalized levels and Basel III requirements.
- Increase in net interest income and net interest margin.
Challenges Ahead
- Decrease in non-interest income due to the absence of a gain on the exchange of a branch facility recorded in Q4 2021.
- Increase in non-interest expense, particularly salaries and wages, due to merit increases, minimum wage implementation, and organic expansion investments.
- Increase in fraud losses and accrual related to a license negotiation impacting other non-interest expenses.
- Customer balances moved out of deposit accounts and into repurchase agreement accounts
- Net charge-offs increased to $3.8 million
Revenue & Expenses
Visualization of income flow from segment revenue to net income