Q4 2024 Cullen/Frost Bankers Inc Earnings Call Transcript
Key Points
- Cullen/Frost Bankers Inc (CFR) reported a significant increase in fourth-quarter earnings, with $153.2 million or $2.36 per share, compared to $100.9 million or $1.55 per share in the same quarter last year.
- The company achieved a 9% growth in average loans, reaching $20.3 billion in the fourth quarter compared to $18.6 billion in the previous year.
- Cullen/Frost Bankers Inc (CFR) continues to expand its footprint, with plans to open its 200th location by mid-2025, contributing to $2.4 billion in deposits and $1.8 billion in loans.
- The bank's consumer business saw record growth, with a $610 million increase in average outstanding balances for consumer loans, representing a 21% annual growth rate.
- The company's return on average assets and average common equity improved to 1.19% and 15.58%, respectively, compared to 0.82% and 13.51% in the same period last year.
- Full-year 2024 earnings per share decreased to $8.87 from $9.10 in 2023, indicating a slight decline in profitability.
- The net interest margin percentage decreased by 3 basis points to 3.53% from the previous quarter, impacted by lower rates on balances held at the Fed.
- Nonperforming assets increased to $93 million at the end of the fourth quarter, up from $62 million in the fourth quarter of 2023.
- Total problem loans rose to $943 million at the end of the fourth quarter, compared to $839 million at the end of the third quarter.
- The company anticipates high single-digit growth in noninterest expenses for 2025, driven by continued investments in technology and expansion, which may pressure profitability.
Greetings. Welcome to Cuddllen/Frost Bankrs fourth quarter and full year 2024 results conference call. (Operator Instructions) As a reminder, this conference is being recorded.
It is now my pleasure to introduce A.B. Mendez, Senior Vice President and Director of Investor Relations. Thank you. You may begin.
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Thanks, Sherry. This afternoon's conference call will be led Phil Green, Chairman and CEO; and Dan Geddes, Group Executive Vice President and CFO. Before I turn the call over to Phil and Dan, I need to take a moment to address the safe harbor provisions.
Some of the remarks made today will constitute forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995 as amended. We intend such statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 as amended. Please see the last page of text
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