Cullen/Frost Bankers Inc. in San Antonio reported third-quarter profit up 9.8% from a year earlier, to $36 million,.
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The $9.8 billion-asset parent of Frost Bank attributed the gains to strong loan demand and better pricing.
Net interest income increased 8.4%, to $85.4 million, as Frost Bank was able to boost loan pricing after the Federal Reserve rose interest rates over the last two quarters. This led to a 21 basis point increase in its net interest margin, to 4.09%. Average loans grew 8.7%, to $4.8 billion.
Fee income increased just 1%, to $55.6 million, as double-digit revenue increases in trust income and insurance commissions were offset by a $1.6 million loss from the sale of $227 million in callable U.S. government agency securities.
