San Antonio-based Frost Bank’s parent company beats analysts’ 2Q expectations by 4¢ a share – San Antonio Express-News

The San Antonio-based parent company of Frost Bank reported slightly higher earnings on rising revenue in the quarter ended June 30.

Cullen/Frost Bankers Inc. earned $117.4 million, or $1.81 a share, on $409.3 million in the most recent quarter. By comparison, it earned $116.4 million, or $1.80 a share, on $371.2 million in revenue for the same period last year.

The financial holding company’s latest results beat the average estimate of 13 analysts by 4 cents a share.

In a statement, Cullen/Frost Chairman and CEO said the company continues to execute on its internal growth strategy. He will host a conference call with securities analysts Thursday afternoon.

Frost ended the second quarter with $16.7 billion in loans on its books, essentially unchanged from the same period a year ago.

Excluding Paycheck Protection Program loans, however, the bank finished the quarter with $16.6 billion in loans — up 13.5 percent from the nearly $14.7 billion in loans at the of the second quarter of 2021.

Frost made 32,000 PPP loans totaling $4.7 billion in 2020 as part of the federal government’s effort to prop up the economy during the coronavirus pandemic.

Frost’s deposits continued to soar. It reported $45.6 billion in deposits at the end of the second quarter, up almost $6.9 billion, or about 18 percent, from $38.7 billion at the same point last year.

Phil Green is chairman and CEO of San Antonio-based Cullen/Frost Bankers Inc., the parent company of Frost Bank.

Phil Green is chairman and CEO of San Antonio-based Cullen/Frost Bankers Inc., the parent company of Frost Bank.

Billy Calzada / Staff photographer

Frost once again reported no credit loss expense in the latest quarter, unchanged from a year ago. It had net charge-offs of $2.8 million versus $1.6 million a year ago.

Frost recorded salaries and wages of $116.9 million in the second quarter, a 20.5 percent jump from $97 million a year ago.

It attributed the large increase to rising salaries as a result of annual merit and market increases and implementing a $20 an hour minimum wage in December. It also reported higher incentive compensation.

Staffing costs could continue to rise given the competitive labor market, Frost said.

Cullen/Frost’s shares closed at $129 Wednesday.

Raymond James & Associates analyst Michael Rose earlier this month lowered his price target on the stock to $145 from $160, but still had the stock rated a buy.

Rose cited Frost’s “solid loan growth outlook” and the “relative strength of the Texas economy”

pdanner@express-news.net

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