Cullen/Frost Bankers, Inc. (CFR) Q2 2022 Earnings Conference Call July 28, 2022 2:00 PM ET

Company Participants

A.B. Mendez – Director-Investor Relations

Phil Green – Chairman and Chief Executive Officer

Jerry Salinas – Group Executive Vice President and Chief Financial Officer

Conference Call Participants

Steven Alexopoulos – JPMorgan

Michael Rose – Raymond James

Ebrahim Poonawala – Bank of America

Brady Gailey – KBW

Dave Rochester – Compass Point

Jon Arfstrom – RBC Capital Markets

Operator

Greetings. Welcome to the Cullen/Frost Bankers Inc. Second Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note, this conference is being recorded.

I will now turn the conference over to your host, Director of Investor Relations, A.B. Mendez. Thank you. You may begin.

A.B. Mendez

Thanks, Alex. Our conference call today will be led by Phil Green, Chairman and CEO; and Jerry Salinas, Group Executive Vice President and CFO. Before I turn the call over to Phil and Jerry, I need to take a moment to address the Safe Harbor provisions.

Some of the remarks made today will constitute forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995 as amended. We intend such statements to be covered by the Safe Harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 as amended.

Please see the last page of text in this morning’s earnings release for additional information about the risk factors associated with these forward-looking statements. If needed, a copy of the release is available on our website or by calling the Investor Relations department at 210-220-5234.

At this time, I’ll turn the call over to Phil.

Phil Green

Thanks, A.B. Good afternoon, everybody, and thanks for joining us today. I’ll review the second quarter results for Cullen/Frost and our Chief Financial Officer, Jerry Salinas will provide additional comments, and then we’ll open it up to your questions.

In the second quarter, Cullen/Frost earned $117.4 million or $1.81 a share compared with earnings of $116.4 million or $1.80 a share reported in the same quarter last year and $97.4 million or $1.50 a share in the first quarter of this year. Our return on average assets and average common equity in the second quarter was 0.92% and 13.88% respectively. These results and our overall growth show that our company is well-positioned to succeed in what’s been an unusual and evolving environment.