- Controllable expenses decreased 3.7% year-over-year and were flat year-to-date, driven by lower marketing, administrative, and repairs and maintenance costs.
- Net debt-to-EBITDA was 11.3x trailing 12 months, not reflecting recent asset sales and contracts.
- Net income available to common shareholders was $0.12 per fully diluted share in Q2 versus $0.03 prior year and a net loss of $0.12 in Q1.
- Non-controllable expenses were down 3.2% year-over-year and 2.6% year-to-date due to lower insurance and real estate tax expenses.
- Same Store NOI grew 5.6% in the quarter and 4.4% year-to-date.
- Same Store rental revenue was up 2.5% for the quarter, or 3.8% excluding Liberty Towers and other income recognized last year.
- Second quarter Core FFO was $0.17 per share, up $0.01 from the first quarter, including $0.01 of nonrecurring other income and property management expense savings.
- Weighted average effective interest rate was 4.86%, a reduction of over 20 basis points prior to the credit facility amendment.
- Year-to-date Core FFO was $0.33 per share versus $0.32 last year.
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- Adjusted leverage was modest at 1.6x as of quarter end, with total gross leverage at 1.9x, below the target range of 2x to 3x.
- Declared and paid a $0.23 per share dividend; repurchased $6.6 million of common stock in Q2 with $93.4 million remaining in the repurchase program.
- Ladder generated distributable earnings of $30.9 million or $0.23 per share in Q2 2025, achieving a return on equity of 7.7%.
- Loan portfolio totaled $1.6 billion with a weighted average yield of approximately 9%, and 5 loans on nonaccrual totaling $162.3 million (3.6% of total assets).
- Real estate portfolio of $936 million generated $15.1 million in net operating income, primarily from net lease properties with long-term leases to investment-grade tenants.
- Securities portfolio was $2 billion, up 82% from year-end, with a weighted average yield of 5.9%, 99% investment-grade and 97% AAA rated.
- Capital levels remained strong and stable, with 41% of assets in cash or government-guaranteed investments and a healthy Mahan Ratio of 16.5%.
- Credit metrics improved with past dues low at $13 million (11 basis points), new defaults down to 40, and nonaccrual loans trending down to $69 million (63 basis points).
- Customer deposits grew 6% linked quarter and are approximately 20% higher than June 30, 2024, with noninterest-bearing checking balances up 36% year-to-date.
- Gain on sale revenue totaled approximately $22 million from $322 million of guaranteed loan sales at a 7% average premium.
- Loan originations reached $1.5 billion, the largest Q2 in bank history excluding PPP, driving 3% linked quarter loan growth and 19% year-over-year loan balance increase.
- Net interest income increased $9 million or 9% linked quarter, with net interest margin expanding 8 basis points for the third consecutive quarter.
- Noninterest expense was $89 million, including $3 million of one-time expenses, with core recurring expenses up 3% linked quarter primarily due to growth.
- Q2 earnings per share of $0.51, a 22% linked quarter increase in core operating leverage, and a 20% year-over-year revenue growth highlight strong financial results.
- 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.
- Adjusted expenses increased only 1% sequentially, supporting 270 basis points of positive operating leverage.
- Adjusted non-interest income increased 9.9% sequentially to over $1.5 billion, driven by investment banking, trading, and wealth management income.
- Average deposit balances declined 1% sequentially due to withdrawal of $10.9 billion in M&A-related client deposits, but excluding this, deposits increased.
- Average loan balances increased 2.5% sequentially, driven by growth in both wholesale and consumer segments.
- Net charge-offs declined both sequentially and year-over-year, reflecting strong asset quality.
- Reported net income available to common shareholders of $1.3 billion, or $1.04 per share, including $0.02 per share of restructuring charges.
- Returned $1.2 billion to shareholders via dividends and $500 million in share repurchases during the quarter.
- ROTCE improved 130 basis points sequentially to 13.6%, with a target of 15% ROTCE by 2027.
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