Cullen/Frost Posts $2.70 EPS Beat as Q2 Revenue Misses by $13.7 Million
Updated
Updated · Yahoo Finance · Jul 31
Cullen/Frost Posts $2.70 EPS Beat as Q2 Revenue Misses by $13.7 Million
3 articles · Updated · Yahoo Finance · Jul 31
Summary
$575.3 million in Q2 revenue missed analysts' $589 million estimate by 2.3%, even as Cullen/Frost's adjusted EPS of $2.70 topped the $2.57 consensus by 5.2%.
5.7% consumer checking household growth and branch expansion helped drive results, with newer branches now holding more than $3 billion in loans and $3.7 billion in deposits while adding $0.16 to quarterly EPS.
$54 million in multifamily commercial real estate nonperformers lifted nonperforming assets, though management said the exposure should have limited impact because of a guarantor and ongoing sale talks.
Management expects loan and deposit growth, positive operating leverage and margin expansion to continue, but said higher rates and intense Texas lending competition could keep pressure on deposit costs and loan pricing.