Cullent/Frost Bankers Inc. Delivers Strong Q1 2025 Results, Driven by Organic Growth Strategy
Cullent/Frost Bankers Inc. has reported strong first quarter 2025 results, driven by its continued focus on organic growth and expansion efforts. In a recent conference call, Chairman and CEO Phil Green highlighted the company's solid performance, which saw earnings reach $149.3 million or $2.30 a share, compared to $134 million or $2.06 a share in the same quarter last year.
The company's return on average assets (ROAA) and return on average common equity (ROACE) also improved, reaching 1.19% and 15.54%, respectively, compared to 1.09% and 15.22% in the same period last year. Average deposits grew by 2.3% to $41.7 billion, while average loans increased by 8.8% to $20.8 billion.
"We continue to see solid results driven by the hard work of our Frost bankers and the extension of our organic growth strategy," said Green. "In just a couple of weeks, we'll open another new financial center in the Austin region and that will be our 200th location."
The company's expansion efforts have generated $1.9 billion in deposits, $20.8 billion in loans, and attracted 64,000 new households since late 2018. These results exceeded Gold standards by 40% for loans and 27% for households, with deposits being within 1% of Gold.
Green emphasized the durability and scalability of the company's expansion strategy, which is driven by delivering a level of customer experience that is unexpected in today's world. Frost was recently named #1 in Texas for consumer banking satisfaction for the 16th year in a row by J.D. Power, demonstrating the effectiveness of this approach.
The company's consumer bank saw outstanding growth, with average consumer deposits increasing by 3.8% and average consumer loan balances growing by 20.5% over the same period last year. Checking customer growth continued to be industry-leading at 5.7%, while consumer loan growth hit 20% for the 11th consecutive quarter.
Green attributed this success to Frost's reputation for outstanding service, investments in organic expansion, marketing, and technology. "People are choosing Frost based on our reputation for outstanding service," he said. "Our investments in our organic expansion in Houston, Dallas, and Austin as well as our investments in marketing and technology are helping fund and fuel total results in our consumer bank."
The company's strong performance is expected to continue, driven by its enduring growth strategy and commitment to delivering exceptional customer experiences.
