- Capital ratios remained strong with Tier 1 capital at 14.2% and total risk-based capital at 15.2%.
- Cost of deposits remained stable at 160 basis points, down 21 basis points year-over-year, with a beta of 29%.
- Cost of deposits remained stable at 160 basis points quarter-over-quarter and declined 21 basis points year-over-year.
- Dividends of $0.70 per common share were declared for the third quarter, with $28 million paid on common stock and $5.3 million on preferreds during the quarter.
- Dividends of $28 million on common stock and $5.3 million on preferred stock were paid; no share repurchases during the quarter.
- Earnings per share increased for the fourth consecutive quarter, reaching $1.06, driven by net interest income and margin expansion.
- Net income for Q2 2025 was $47.6 million with diluted EPS of $1.06, up $3.7 million and $0.09 respectively from the prior quarter.
- Net income for the quarter was $47.6 million, up $3.7 million from the previous quarter.
- Net interest income and net interest margin expanded for the fifth consecutive quarter, with NII increasing by $3.9 million and NIM by 7 basis points.
- Net interest income increased by $3.9 million and net interest margin expanded by 7 basis points, marking the fifth consecutive quarter of growth.
- Noninterest expense was $110.8 million, including a $1.4 million severance charge; excluding special items, expenses decreased by $600,000 from the prior quarter.
- Noninterest income increased slightly to $44.8 million, including a one-time gain of $800,000 from a BOLI recovery.
- Noninterest income was $44.8 million, including a one-time gain of $800,000 from a BOLI recovery.
- Provision for credit losses was $3.3 million; effective tax rate was 21.2%, expected full-year rate between 21% and 22%.
- Provision for credit losses was $3.3 million; effective tax rate was 21.2%, expected to be between 21% and 22% for the full year.
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- Average deposits increased 3.1% year-over-year to $41.8 billion; average loans grew 7.2% to $21.1 billion.
- Commercial loans grew 4.9% year-over-year with CRE up 6.8%, energy loans up 22%, and C&I down about 1%.
- Consumer real estate loans grew 22% year-over-year to $3.3 billion, driven by second lien home equity and mortgage products.
- Cullen/Frost earned $155.3 million or $2.39 a share in Q2 2025, up from $143.8 million or $2.21 a share in Q2 2024.
- Expansion efforts contributed $2.76 billion in deposits, $2.03 billion in loans, and nearly 69,000 new households.
- New loan commitments totaled just under $2 billion in Q2, a 56% increase over Q1.
- Nonperforming assets declined to $64 million from $85 million at year-end; net charge-offs were $11.2 million, or 21 basis points annualized.
- Return on average assets and average common equity were 1.22% and 15.6%, compared to 1.18% and 17.08% in the prior year quarter.
- Total problem loans increased to $989 million, mainly due to multifamily loans, with expected resolutions in H2 2025.
- Capital ratio ended the quarter at 26.6%, up from 24.4% at year-end, supported by strong earnings and no stock repurchases.
- Delinquencies declined to 1%, reflecting high-quality portfolio and strong loss mitigation capabilities.
- Net income was $198 million, including $269 million in pretax operating income.
- Operating expenses increased by only 6% while revenues grew 13% year-over-year in Servicing.
- Operating ROTCE was 17.2%, up from 16.8% last quarter, within the guidance range of 16% to 20%.
- Originations generated $64 million in pretax income despite elevated rates.
- Servicing generated $332 million in pretax income, up 15% year-over-year.
- Adjusted noninterest expense increased 4% linked quarter, mainly due to salaries and benefits.
- Adjusted noninterest income increased 5% linked quarter, driven by mortgage, card, ATM fees, and wealth management.
- Average deposits grew organically by more than 30% over the last 5 years, with growth in consumer checking, small business, and wealth management accounts.
- Average loans remained stable, but ending loans grew in consumer and corporate banking.
- Capital markets revenue grew at a 14% compounded annual growth rate since 2019.
- Common equity Tier 1 ratio was 10.7%, with $144 million in share repurchases and $224 million in dividends paid during the quarter.
- Net interest income increased 5% linked quarter, with expected full year growth of 3% to 5%.
- Pretax pre-provision income increased 14% year-over-year to $832 million.
- Provision expense was $13 million over net charge-offs; asset quality metrics improved with net charge-offs at 47 basis points.
- Reported strong quarterly earnings of $534 million, with adjusted earnings of $538 million or $0.60 per share.
- Return on tangible common equity was 19%, highest among peers for the last 4 years.
- Treasury management revenue increased 8% year-to-date, and wealth management fee income reached a record quarter.
- Blue Owl Capital reported fee-related earnings (FRE) of $0.23 per share and distributable earnings (DE) of $0.21 per share for Q2 2025.
- Direct lending portfolio gross returns were 3% in Q2 and 13.5% over the last 12 months; alternative credit gross returns were 2% in Q2 and 15.7% over last 12 months.
- Equity fundraising hit a record with over $12 billion raised in Q2 and over $36 billion over the last 12 months, nearly 90% increase from prior year.
- FRE margin guidance for the year is 57% to 58%, with Q2 printing at 57%.
- Management fees increased by 32% over the last 12 months, with 87% from permanent capital vehicles.
- Net lease gross returns were 4.1% for Q2; real estate credit investments yielded 8.1% yield to maturity and 11.1% debt yield.
- The company declared a dividend of $0.225 per share for Q2 payable on August 28 to holders of record as of August 14.
- The company maintained strong credit quality with average annual realized losses at 13 basis points in direct lending.
- The listing of the technology-focused BDC, OTF, contributed approximately $6 million in incremental management fees in Q2.
- Year-over-year on a last 12 months basis, FRE revenues grew by 29%, FRE by 23%, and DE by 20%.
- Common stock repurchases doubled from Q2 to $6.1 billion, and dividend was increased.
- Credit quality improved with net loan charge-off ratio declining 9 basis points year-over-year and 4 basis points sequentially.
- Net income for Q3 2025 was $5.6 billion, up 9% year-over-year, with diluted earnings per share of $1.66.
- Net interest income increased $242 million (2%) from Q2, despite a 7 basis point decline in net interest margin due to growth in lower-yielding trading assets.
- Non-interest expense rose 6% year-over-year, driven by $296 million severance, higher revenue-related compensation, and increased technology and advertising spend.
- Non-interest income grew 9% year-over-year, led by wealth management and investment banking fee growth.
- Return on tangible common equity (ROTCE) improved to 15.2% in Q3, approaching the 15% target set in 2020.
- Revenue increased 5% from a year ago, driven by growth in net interest income and strong fee-based revenue.
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