Cullen/Frost Bankers (CFR) stock accelerated 3.9% in Thursday morning trading after the regional lender's stronger-than-expected Q3 earnings highlighted growth in net interest income and a bolstered balance sheet.
"Our investments in regional expansion projects, our new residential mortgage product, and enhancements in customer experiences, will lead to further benefits in the long term," said Chairman and CEO Phil Green.
Q3 EPS of $2.59 exceeded the average analyst estimate of $2.22, rising from $1.81 in Q2 and $1.65 in the year-ago quarter.
Net interest income of $379.52M on a taxable equivalent basis climbed from $311.38M in the prior quarter and $269.3M in Q3 2021.
Non-interest income was $99.8M vs. $97.93M in Q2 and $93.19M a year before.
Book value of $41.53 per share compared with $49.93 in Q2 and $66.39 in Q3 of last year.
Average loans of $16.8B increased 3.9% from a year earlier; average deposits were $45.8B, rising 17.1% from Q3 2021 due to higher rates on customer's deposit accounts.
The company also declared a quarterly dividend of $0.87 a share, matching the prior payout.
Conference call at 1:00 p.m. CT (2:00 p.m. ET).
Earlier, Cullen/Frost Bankers GAAP EPS of $2.59 beats by $0.37, revenue of $479.34M beats by $40.17M.