Cullen/Frost Bankers, Inc. Q1 FY2026 earnings call

Phil Green mentioned that in the first quarter of 2026, Cullen Frost earned $169.3 million, an increase of 13.4% compared to the first quarter of last year. Share earnings were $2.65, an increase of 15.2% from the first quarter last year. Return on average assets and average common equity were 1.32% and 15.15% respectively. Discussed organic branch expansion strategy, including eight new financial centers opened outside announced regions in addition to Houston, Dallas, and Austin. Consumer bank's sustained customer satisfaction signals strong culture and drives organic growth.

In the first quarter of 2026, for the consumer line of business, the consumer bank earned the J.D. Power Award for Customer Satisfaction in Consumer Banking in Texas for the 17th consecutive year. Year over year, consumer checking households grew 5.3%, and consumer loan balances increased 19%. Consumer loan growth totaled $154 million in the first quarter alone, nearly double Q1 2025 growth. Mortgage products grew $124 million in the quarter and reached $719 million in total outstanding balances. Average deposits in the first quarter were $42.2 billion, an increase from $41.7 billion in the same quarter last year, and average loans grew to $22 billion in the first quarter, up from $20.8 billion in the first quarter of last year.

Welcome to Colin Frost Bankers Incorporated First Quarter 2026 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to A.B. Mendez, Senior Vice President and Director of Investor Relations. Thank you. You may begin. Thanks, Sherry. This afternoon's conference call will be led by Phil Green, Chairman and CEO, and Dan Geddes, Group Executive Vice President and CFO. Before I turn the call over to Phil and Dan, I need to take a moment to address the Safe Harbor provisions.