Cullen/Frost Bankers Q3 net income rises on loan growth

Overview

• Texas regional bank's Q3 net income and EPS rose yr/yr

• Net interest income for Q3 increased 5.8% from a year earlier

• Company repurchased $15 mln in shares during the quarter

Outlook

• Company did not provide specific financial guidance for future quarters or the full year in the press release

Result Drivers

• LOAN GROWTH - Co said average loans rose 9% yr/yr, driven by organic growth strategy

• CUSTOMER BASE EXPANSION - Co said banking customer base grew at a 5% yearly rate, with new additions across Texas

• NON-INTEREST INCOME GAINS - Co said non-interest income rose 8.2% yr/yr, helped by investment management fees and gains on sale of bank properties

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 7 "strong buy" or "buy", 7 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy."

• Wall Street's median 12-month price target for Cullen/Frost Bankers, Inc. is $177.00, about 12.7% above its October 28 closing price of $157.01

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 14 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)