SAN ANTONIO - Cullen/Frost Bankers, Inc. (NYSE: NYSE:CFR), the parent company of Frost Bank, announced today that Jerry Salinas, the firm's long-serving Chief Financial Officer, will retire at the end of the year. Salinas, who has been with Frost since 1986, has played a pivotal role in the company's growth and major initiatives for nearly four decades.
During his tenure, Salinas has witnessed and contributed to significant expansions and transactions of the company. Starting at Frost in 1986, he advanced through various roles, becoming the bank and corporate controller in 1989, treasurer in 1997, and eventually rising to senior executive vice president and treasurer in 2001. He assumed his current role as group executive vice president & CFO in 2015.
Phil Green, Chairman and CEO of Cullen/Frost, praised Salinas for his substantial impact on the company, highlighting him as a trusted adviser and integral to the company's success. Salinas expressed gratitude for his career at Frost and the company's culture, which he said mirrored his personal values.
In anticipation of Salinas's retirement, Frost has initiated a transition plan. Dan Geddes, the current San Antonio Region President, will step down from his role to prepare for his new position as CFO, effective January 1, 2025. Geddes has been with Frost for 27 years and is recognized for his leadership in the company's Houston expansion and his success in managing the San Antonio region.
Clay Jones, a seasoned commercial banker, will take over as the new San Antonio region president immediately. Additionally, Matt Henson, an executive vice with 21 years at Frost's accounting division, is set to become the chief accounting officer, also starting January 1, 2025.
Frost Bank, a subsidiary of Cullen/Frost Bankers, Inc., is one of the 50 largest U.S. banks by asset size and operates with over $49.5 billion in assets as of March 31, 2024. The bank offers a variety of services including banking, investments, and insurance, serving multiple regions across Texas.
This announcement is based on a press release statement from Cullen/Frost Bankers, Inc.
In other recent news, Cullen/Frost Bankers Inc . reported a decrease in Q1 earnings for 2024. The company's net income fell to $134 million, or $2.06 per share, from $176 million, or $2.70 per share, in the same quarter the previous year. This decline was influenced by an additional FDIC insurance surcharge accrual related to bank failures in early 2023. Despite this, Cullen/Frost experienced growth in loans and new household additions, with its balance sheet and liquidity levels remaining strong.
The company's organic growth strategy yielded $2 billion in deposits and $1.5 billion in loans, even as average deposits decreased by 4.8% to $40.7 billion. Average loans, however, grew by 10.4% to $19.1 billion. In other recent developments, Cullen/Frost's net interest margin increased to 3.48% from 3.41% in the previous quarter.
Looking ahead, the company expects full-year average loan growth in the high single digits and net interest income growth between 2% to 4%. Despite the unexpected FDIC expenses, Cullen/Frost is maintaining its expense guidance unchanged and remains focused on managing expenses and monitoring credit quality.
InvestingPro Insights
As Cullen/Frost Bankers, Inc. (NYSE: CFR) prepares for the retirement of Jerry Salinas and the transition to new leadership, investors and stakeholders may find value in the latest financial metrics and analyst insights from InvestingPro. The company, with a market capitalization of $6.47 billion, holds a steady P/E ratio of 11.87, indicating a potentially attractive valuation relative to earnings. Additionally, the P/E ratio has remained consistent in the last twelve months as of Q1 2024, at 11.92.
An important aspect of Cullen/Frost's appeal to investors is its dividend reliability. Notably, the company has raised its dividend for 31 consecutive years and maintained dividend payments for 32 consecutive years, underscoring a strong commitment to shareholder returns. This dedication is further reflected in the current dividend yield of 3.62%, coupled with a dividend growth of 5.75% over the last twelve months as of Q1 2024. These figures are particularly relevant for income-focused investors considering the bank's stock.
Moreover, while some analysts have revised their earnings expectations downwards for the upcoming period, Cullen/Frost has been profitable over the last twelve months. This profitability, alongside the company's long history of dividend payments, may offer reassurance to investors during the executive transition period. For those interested in deeper insights, InvestingPro offers additional tips on Cullen/Frost Bankers, which can be accessed by visiting https://www.investing.com/pro/CFR. To enhance your investment research, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
Investors can also find value in knowing that there are 6 additional InvestingPro Tips available for Cullen/Frost, which could provide further clarity on the company's financial health and future prospects. These tips, along with comprehensive data and analytics, are part of the suite of tools that InvestingPro offers to help investors make informed decisions.
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