Cullen/Frost Bankers Inc (CFR) Q3 2023 Earnings: A Detailed Review
Net income available to common shareholders for Q3 2023 was $154.0 million, down from $168.1 million in Q3 2022.
Net interest income on a taxable-equivalent basis was $407.4 million, up 7.3 percent compared to the same quarter in 2022.
Non-interest income for Q3 2023 totaled $106.0 million, an increase of $6.2 million from Q3 2022.
Non-interest expense was $293.3 million for Q3 2023, up $35.4 million from Q3 2022.
On October 26, 2023, Cullen/Frost Bankers Inc (NYSE:CFR) released its third-quarter earnings report for the year 2023. The report showed a mixed performance with a decrease in net income but an increase in net interest income.
Financial Performance
CFR reported a net income available to common shareholders of $154.0 million for Q3 2023, a decrease from $168.1 million in Q3 2022. This translates to $2.38 per diluted common share, compared to $2.59 per diluted common share reported a year earlier, representing an 8.1 percent decrease. However, for the first nine months of 2023, net income available to common shareholders was $490.4 million, up 28.1 percent compared to $383.0 million for the first nine months of 2022.
Net Interest Income and Non-Interest Income
Net interest income on a taxable-equivalent basis was $407.4 million for Q3 2023, marking a 7.3 percent increase compared to the same quarter in 2022. Non-interest income for the third quarter of 2023 totaled $106.0 million, an increase of $6.2 million, or 6.2 percent, from the $99.8 million reported for the third quarter of 2022.
Non-Interest Expense and Credit Loss Expense
Non-interest expense was $293.3 million for the third quarter of 2023, up $35.4 million, or 13.7 percent, compared to the $257.9 million reported for the third quarter a year earlier. For the third quarter of 2023, the company reported a credit loss expense of $11.2 million, and reported net charge-offs of $5.0 million.
Dividend Declaration
The Cullen/Frost board declared a fourth-quarter cash dividend of $0.92 per common share. The dividend on common stock is payable December 15, 2023 to shareholders of record on November 30 of this year.
CEO Commentary
Our third quarter results demonstrate that Frost bankers continue to provide our customers with top-quality service and that our long-term investments in sustained organic growth are paying dividends, said Cullen/Frost Chairman and CEO Phil Green.
Financial Data
Noted financial data for the third quarter of 2023 includes the Common Equity Tier 1, Tier 1 and Total Risk-Based Capital Ratios at the end of the third quarter of 2023 were 13.32 percent, 13.81 percent and 15.28 percent, respectively, and continue to be in excess of well-capitalized levels and exceed Basel III minimum requirements.
Balance Sheet Summary
As of the end of Q3 2023, CFR reported average loans of $18.0 billion, an increase of $1.1 billion, or 6.8 percent, from the $16.8 billion reported for the third quarter a year earlier. Average deposits for the third quarter were $40.8 billion, down $5.0 billion, or 10.9 percent, compared to the $45.8 billion reported for last year's third quarter.
Explore the complete 8-K earnings release (here) from Cullen/Frost Bankers Inc for further details.
This article first appeared on GuruFocus.
