Cullen/Frost Bankers (CFR) in San Antonio reported a profit of $59.2 million in the first quarter on strong asset and deposit growth.
The $24.7 billion-asset company's net income available to shareholders rose 7% from a year earlier. Earnings per share of 96 cents fell one cent short of estimates, according to analysts polled by Bloomberg.
Cullen/Frost's average earning assets increased 9.8% to $22.8 billion, and total deposits increased 9.5% to $21 billion, according to its press release Wednesday.
Net interest income was $160.3 million, up 5%. This increase was driven by an improvement in overall asset quality, as nonperformers declined 42%, to $61.3 million.
Total noninterest income stayed virtually the same at $77.5 million.
Net interest margin fell three basis points to 3.42%.
Noninterest expenses rose 1.3% to $157.9 million as Cullen/Frost hired more employees.
Additionally, there were $1.1 million of expenses associated with the pending acquisition of WNB Bancshares, which is expected to close this quarter, Cullen/Frost Chief Executive Dick Evans said in a news release Wednesday.