Cullen/Frost Bankers in San Antonio, Texas, reported an uptick second-quarter earnings, boosted by its recent acquisition of WNB Bancshares.
The $26.5 billion-asset bank's profits were $66.5 million, or 10% higher than a year ago. Earnings per share of $1.02 beat an estimate of analysts polled by Bloomberg by eight cents.
Strong loan performance fueled the earnings increase. Net interest income increased 14%, to $198.9 million. The bank's loan portfolio expanded 9%, partially due to its acquisition of the $1.4 billion-asset WNB in May.
The net interest margin climbed 5 basis points, to 3.48%.
The bank raised its provision for problem loans by 38%, to $4.9 million. At the same time, net charge-offs declined 52%, to $1.8 million.
Higher investment fees also contributed to second-quarter profits, as noninterest income climbed 9%, to $79.2 million.
Operating expenses were up 9%, to $164 million, mainly because of occupancy and merger-related costs.