Cullen/Frost reports Q2 EPS $2.47, consensus $2.40

Common Equity Tier 1, Tier 1 and Total Risk-Based Capital Ratios at the end of Q2 were 13.42%, 13.92% and 15.39%, respectively. NII on a taxable-equivalent basis was $408.6M, up 31.2% vs. the prior year period. Net interest margin was 3.45% for Q2 compared to 3.47% for Q1 2023 and 2.56% for Q2 2022. Reported a credit loss expense of $9.9M and net charge-offs of $9.8M vs. a credit loss expense of $9.1M and net charge-offs of $8.8M for Q1 2023 and no credit loss expense and net charge-offs of $2.8M for Q2 2022. “We were pleased with the earnings growth we experienced during the quarter, and I’m proud of our great staff living our culture of going above and beyond for our customers,” said CEO Phil Green. “We also were excited to announce our decision to double our presence in the Austin region, the third largest deposit market in Texas. We expect to complete this move by 2026. This effort aligns with our successful expansions in the dynamic Houston and Dallas markets and complements our organic growth strategy which has resulted in record levels of customer acquisition”.