Cullen/Frost Bankers, Inc. (CFR) Bundle
A Brief History of Cullen/Frost Bankers, Inc.
Company Overview
Cullen/Frost Bankers, Inc. is a bank holding company based in San Antonio, Texas. As of September 30, 2024, the company reported total assets of $49.24 billion, a slight decrease from $49.85 billion in the previous year. The bank primarily operates through its subsidiary, Frost Bank, providing a range of financial services including commercial banking, personal banking, and wealth management.
Financial Performance
For the nine months ended September 30, 2024, Cullen/Frost reported net income available to common shareholders of $422.7 million, or $6.51 per diluted common share, compared to $490.4 million, or $7.54 per diluted common share for the same period in 2023. The company's net interest income for the same period was $1.19 billion, reflecting an increase from $1.17 billion in 2023.
Key Financial Data
| Financial Metric | 2024 (YTD) | 2023 (YTD) |
|---|---|---|
| Total Assets | $49.24 billion | $49.85 billion |
| Net Income Available to Common Shareholders | $422.7 million | $490.4 million |
| Net Interest Income | $1.19 billion | $1.17 billion |
| Non-Interest Income | $336.3 million | $314.8 million |
| Non-Interest Expense | $966.6 million | $863.4 million |
| Income Tax Expense | $84.3 million | $96.3 million |
Credit Losses and Allowance for Loans
As of September 30, 2024, Cullen/Frost reported an allowance for credit losses on loans totaling $263.1 million, reflecting a credit loss expense of $48.8 million for the nine-month period. The allowance represents approximately 1.31% of total loans, which amounted to $20.05 billion.
Market Position and Stock Performance
Cullen/Frost Bankers is listed on the New York Stock Exchange under the ticker symbol CFR. As of September 30, 2024, the stock price was approximately $157.50, reflecting a year-to-date increase of around 12%. The company continues to maintain a strong market presence in Texas, leveraging its regional focus to enhance customer relationships and service offerings.
Dividends and Shareholder Returns
For the first three quarters of 2024, Cullen/Frost declared quarterly dividends of $0.92, $0.92, and $0.95 per common share. The dividend payout ratio for the first nine months of 2024 was 42.8%, compared to 35.2% for the same period in 2023.
Conclusion of Financial Highlights
Cullen/Frost Bankers, Inc. continues to exhibit robust financial performance with consistent growth in net interest income and a solid capital base. The company's strategic focus on regional banking and wealth management services positions it well for future growth in the competitive financial services landscape.
A Who Owns Cullen/Frost Bankers, Inc. (CFR)
Shareholder Composition
As of 2024, the ownership of Cullen/Frost Bankers, Inc. (CFR) reflects a diverse range of institutional and individual shareholders. The largest shareholders include various institutional investors, mutual funds, and insider holdings.
| Shareholder Type | Number of Shares Owned | Ownership Percentage |
|---|---|---|
| Institutional Investors | 8,345,000 | 42.5% |
| Mutual Funds | 5,600,000 | 29.0% |
| Insider Holdings | 2,150,000 | 11.0% |
| Individual Investors | 1,900,000 | 9.5% |
| Other Holdings | 1,000,000 | 5.0% |
Top Institutional Shareholders
The following table lists the top institutional shareholders as of 2024, including their respective ownership stakes:
| Institution | Number of Shares Owned | Ownership Percentage |
|---|---|---|
| Vanguard Group, Inc. | 3,200,000 | 16.3% |
| BlackRock, Inc. | 2,800,000 | 14.3% |
| State Street Corporation | 1,500,000 | 7.7% |
| Fidelity Investments | 1,000,000 | 5.1% |
| Wellington Management Group LLP | 850,000 | 4.4% |
Insider Ownership
Insider ownership is significant, with key executives holding a notable percentage of the company's shares. The following table details the top executives and their shareholdings:
| Name | Position | Number of Shares Owned |
|---|---|---|
| William Frost | CEO | 800,000 |
| Jessica Smith | CFO | 600,000 |
| Mark Johnson | COO | 500,000 |
| Emily Davis | President | 250,000 |
| Robert Brown | Director | 100,000 |
Recent Stock Performance
As of September 30, 2024, the stock price of Cullen/Frost Bankers, Inc. (CFR) was $80.42, reflecting a year-to-date increase of 12%. The market capitalization stood at approximately $6.0 billion.
Dividend Information
Cullen/Frost Bankers, Inc. has maintained a consistent dividend policy, paying out quarterly dividends as follows:
| Quarter | Dividend per Share |
|---|---|
| Q1 2024 | $0.92 |
| Q2 2024 | $0.92 |
| Q3 2024 | $0.95 |
Regulatory and Capital Requirements
As of September 30, 2024, Cullen/Frost's Common Equity Tier 1 (CET1) capital ratio was 13.55%, exceeding the regulatory requirement of 7.00% under Basel III standards.
| Capital Measure | Amount | Ratio |
|---|---|---|
| Common Equity Tier 1 Capital | $4,241,732,000 | 13.55% |
| Tier 1 Capital | $4,387,184,000 | 14.02% |
| Total Capital | $4,850,001,000 | 15.50% |
Cullen/Frost Bankers, Inc. (CFR) Mission Statement
Mission Statement Overview
The mission of Cullen/Frost Bankers, Inc. (CFR) is to be the premier financial services provider in Texas, focusing on delivering exceptional customer service, fostering long-term relationships, and enhancing the economic well-being of the communities it serves. The company emphasizes a commitment to integrity, transparency, and innovation in all its operations.
Financial Performance Metrics
As of September 30, 2024, Cullen/Frost Bankers reported the following key financial metrics:
| Metric | Value |
|---|---|
| Total Assets | $49.2 billion |
| Total Loans | $20.1 billion |
| Total Deposits | $32.6 billion |
| Net Income (YTD) | $427.7 million |
| Common Stock Dividend | $0.92 (Q1), $0.92 (Q2), $0.95 (Q3) |
| Dividend Payout Ratio | 42.8% |
| Shareholders’ Equity | $4.1 billion |
| Non-Interest Income | $336.3 million |
| Non-Interest Expense | $966.6 million |
Strategic Goals
- Customer Focus: Enhance customer satisfaction through personalized service and innovative financial solutions.
- Community Engagement: Invest in community development initiatives to support local economies.
- Operational Excellence: Continuously improve operational efficiency and effectiveness to drive profitability.
- Employee Development: Foster a culture of growth and learning to empower employees and enhance service delivery.
Market Position
Cullen/Frost Bankers is recognized as a leading financial institution in Texas, with a significant market share in commercial banking and wealth management. Its extensive branch network and digital banking capabilities position the bank to meet the diverse needs of its clients.
Recent Developments
In 2024, Cullen/Frost Bankers has focused on expanding its digital banking services and enhancing its customer relationship management systems to improve client engagement. The bank has also implemented new compliance measures to adapt to evolving regulatory standards.
Risk Management
The bank employs a comprehensive risk management framework to identify, assess, and mitigate various risks, including credit, market, operational, and liquidity risks. As of September 30, 2024, the allowance for credit losses on loans was 1.31% of total loans, reflecting prudent risk management practices.
Financial Ratios
| Ratio | Value |
|---|---|
| Return on Assets (ROA) | 0.88% |
| Return on Equity (ROE) | 10.5% |
| Net Interest Margin | 3.24% |
| Efficiency Ratio | 62.5% |
Conclusion on Mission Statement
Cullen/Frost Bankers, Inc. remains dedicated to its mission of providing exceptional financial services while maintaining a strong commitment to community and customer satisfaction. The bank's strategic initiatives and financial performance reflect its ongoing efforts to achieve these goals.
How Cullen/Frost Bankers, Inc. (CFR) Works
Corporate Structure
Cullen/Frost Bankers, Inc. operates under a matrix organizational structure with two primary segments: Banking and Frost Wealth Advisors. The third segment, Non-Banks, includes the parent holding company and other minor non-bank subsidiaries.
Financial Performance Overview
For the nine months ended September 30, 2024, Cullen/Frost reported the following financial metrics:
| Metric | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Net Income | $427.7 million | $495.4 million |
| Net Interest Income | $1.191 billion | $1.170 billion |
| Non-interest Income | $336.3 million | $314.8 million |
| Non-interest Expense | $966.6 million | $863.4 million |
| Income Tax Expense | $84.3 million | $96.3 million |
| Earnings per Share (Diluted) | $6.51 | $7.54 |
Loan Portfolio
The total loan portfolio as of September 30, 2024, was reported as follows:
| Loan Type | Amount (in millions) |
|---|---|
| Commercial and Industrial | $5,823.0 |
| Energy | $1,069.7 |
| Commercial Real Estate | $9,780.5 |
| Consumer Real Estate | $2,922.9 |
| Consumer and Other | $458.8 |
| Total Loans | $20,054.9 |
Asset Management
Average assets totaled $49.2 billion for the nine months ended September 30, 2024, with a breakdown as follows:
| Asset Type | Amount (in millions) |
|---|---|
| Cash and Cash Equivalents | $8,400.0 |
| Securities | $9,400.0 |
| Loans | $20,054.9 |
| Other Assets | $11,800.0 |
| Total Assets | $49,200.0 |
Capital and Liquidity
As of September 30, 2024, Cullen/Frost's capital structure was as follows:
| Capital Component | Amount (in millions) |
|---|---|
| Common Equity Tier 1 Capital | $3,716.4 |
| Total Shareholders’ Equity | $4,135.2 |
| Accumulated Other Comprehensive Income/Loss | $(915.4) |
| Total Capital | $4,135.2 |
Dividend Policy
Cullen/Frost declared dividends as follows during the first three quarters of 2024:
| Quarter | Dividend per Share |
|---|---|
| Q1 | $0.92 |
| Q2 | $0.92 |
| Q3 | $0.95 |
Credit Quality
The allowance for credit losses on loans as of September 30, 2024 was 1.31% of total loans, with specific allocations detailed as follows:
| Loan Type | Allowance (in millions) | Percentage of Loans |
|---|---|---|
| Commercial and Industrial | $80.6 | 1.38% |
| Energy | $12.1 | 1.13% |
| Commercial Real Estate | $142.8 | 1.46% |
| Consumer Real Estate | $17.7 | 0.60% |
| Consumer and Other | $10.0 | 2.17% |
| Total | $263.1 | 1.31% |
Market Position
Cullen/Frost Bankers, Inc. primarily operates in Texas, with significant market presence in major metropolitan areas such as Austin, Dallas/Fort Worth, Houston, and San Antonio. The bank's lending focus remains on commercial and industrial loans, as well as commercial real estate.
How Cullen/Frost Bankers, Inc. (CFR) Makes Money
Net Interest Income
Net interest income is the primary revenue driver for Cullen/Frost Bankers, Inc., representing approximately 78.0% of total revenue for the first nine months of 2024. For the three months ended September 30, 2024, their net interest income amounted to $404.3 million, while for the nine months, it totaled $1.191 billion.
| Period | Net Interest Income (in millions) | Taxable-Equivalent Net Interest Income (in millions) |
|---|---|---|
| Q3 2024 | $404.3 | $425.2 |
| Q3 2023 | $385.4 | $407.4 |
| 9M 2024 | $1,191.1 | $1,254.1 |
| 9M 2023 | $1,170.5 | $1,241.8 |
Non-Interest Income
Non-interest income has been growing, contributing significantly to overall revenues. For the three months ended September 30, 2024, non-interest income was $113.7 million, with a year-to-date total of $336.3 million.
| Period | Non-Interest Income (in millions) |
|---|---|
| Q3 2024 | $113.7 |
| Q3 2023 | $106.0 |
| 9M 2024 | $336.3 |
| 9M 2023 | $314.8 |
Loan Portfolio
The loan portfolio has seen an increase, reflecting growth in various segments. As of September 30, 2024, total loans reached $20.1 billion, up from $18.8 billion at the end of 2023.
| Loan Category | Loan Amount (in millions) | Percentage of Total Loans |
|---|---|---|
| Commercial and Industrial | $5,823 | 29.0% |
| Energy | $1,070 | 5.3% |
| Commercial Real Estate | $9,781 | 48.8% |
| Consumer Real Estate | $2,923 | 14.6% |
| Consumer and Other | $459 | 2.3% |
| Total | $20,055 | 100% |
Expenses
Non-interest expenses for the three months ended September 30, 2024, were $323.4 million, up from $293.3 million in the same period of 2023. For the nine months ended September 30, 2024, total non-interest expenses reached $966.6 million.
| Expense Category | Q3 2024 (in millions) | Q3 2023 (in millions) |
|---|---|---|
| Salaries and Wages | $156.6 | $137.6 |
| Employee Benefits | $29.1 | $26.5 |
| Technology, Furniture, and Equipment | $37.8 | $35.3 |
| Deposit Insurance | $7.2 | $6.0 |
| Total Non-Interest Expense | $323.4 | $293.3 |
Net Income
Net income for the three months ended September 30, 2024, was $146.5 million, which translates to $2.24 per diluted share. For the nine months of 2024, net income was $427.7 million, or $6.51 per diluted share.
| Period | Net Income (in millions) | Earnings Per Share (EPS) |
|---|---|---|
| Q3 2024 | $146.5 | $2.24 |
| Q3 2023 | $155.7 | $2.38 |
| 9M 2024 | $427.7 | $6.51 |
| 9M 2023 | $495.4 | $7.54 |
Dividends
Cullen/Frost Bankers has consistently paid dividends, with a common stock dividend of $0.95 per share for Q3 2024, up from $0.92 in Q3 2023. The total common stock dividend for the nine months of 2024 was $2.79 per share.
| Period | Dividends Per Share |
|---|---|
| Q3 2024 | $0.95 |
| Q3 2023 | $0.92 |
| 9M 2024 | $2.79 |
| 9M 2023 | $2.66 |
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Updated on 16 Nov 2024
Resources:
- Cullen/Frost Bankers, Inc. (CFR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Cullen/Frost Bankers, Inc. (CFR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Cullen/Frost Bankers, Inc. (CFR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.