Cullen/Frost Bankers in San Antonio reported higher second-quarter profit, as growth in commercial and residential construction loans offset weakness in the energy sector.
Profits for the $27.8 billion-asset company rose 9.9% to $71.1 million, or $1.11 per share, from a year earlier. That met the average estimate of analysts polled by Bloomberg.
Net interest income rose 7.6% to $182.8 million. Total loans rose 6.5% to $11.4 billion. Total earning assets rose 5.2% to $25.6 billion, partly due to Cullen/Frost's June 2014 acquisition of Western National Bank in Odessa, Texas. The net interest margin declined two basis points to 3.47%.
"Even with the lingering slowdown in the energy sector we increased average loans over the same quarter last year by double digits," Chairman and Chief Executive Dick Evans said in a news release.
Noninterest income fell 0.2% to $79 million, partly because of a $1 million decrease in oil and gas trust and investment management fees.
Noninterest expense rose 5.7% to $173.2 million, on an increase in salaries, employee benefits and occupancy costs.