Cullen/Frost Bankers in San Antonio reported increased quarterly earnings that reflected a significant reduction in credit costs.
The $27.4 billion-asset company's profit rose 17% from the second quarter and 29% from a year earlier, to $75.6 million, or $1.19 a share. Comparisons from the third quarter of 2013 were influenced by Cullen/Frost's May purchase of WNB Bancshares, which added $1.6 billion in deposits and $670 million in loans.
The biggest factor in the third-quarter results was credit costs. The loan-loss provision fell 92% from the second quarter, to $390,000.
Net interest income rose 5% from the second quarter, to $209 million. Total loans rose slightly, to $10.6 billion, offsetting an net interest margin that compressed by 9 basis points, to 3.39%.
Noninterest income rose 2.2%, to $81 million, largely reflecting higher trust and investment management fees.
Noninterest expense was flat from the second quarter, at $163.8 million.