Cullen/Frost Q1 Net Income Up 13.4% to $169.3M on Strong Credit Quality
CFR•Cullen/Frost reported a $6.7 million Q1 credit loss provision, under half the $14.5 million consensus, reflecting strong asset quality. First-quarter net income rose 13.4% to $169.3 million as average loans grew just under 6% year-over-year to $22 billion, fueling a 5% increase in net interest income.
1. Credit Loss Provision Under Half of Expectations
Cullen/Frost posted a $6.7 million provision for credit losses in Q1, less than half the $14.5 million consensus. The bank’s annualized net charge-off ratio fell to 0.11% and its nonaccrual loan ratio to 0.40%, underscoring continued strong asset quality.
2. Q1 Earnings and Loan Growth
First-quarter net income rose 13.4% year-over-year to $169.3 million, driven by a 5% increase in net interest income to $460.8 million. Average loans expanded just under 6% to $22 billion, supporting higher interest margins and earnings.
3. Branch Expansion Boosts Deposit Base
During Q1, Cullen/Frost opened its 205th branch in Austin, extending its retail network by over 50% since 2018. This expansion has contributed $2.6 billion in new loans and $3.2 billion in deposits from growth markets.
