Casey Haire's questions to CULLEN/FROST BANKERS (CFR) leadership • Q2 2025
Question
Casey Haire of Autonomous Research questioned why the full-year Net Interest Income (NII) guidance appeared conservative and asked for an update on the size and momentum of the loan pipeline.
Answer
CFO Dan Geddes explained that the full-year NII guidance is influenced by the late-in-the-year timing of expected rate cuts and potential loan payoffs. He noted the loan pipeline was down only 1% sequentially, which he viewed as encouraging given the record loan commitments booked in Q2. CEO Phillip Green added that while loan utilization has been soft due to economic uncertainty, he anticipates activity will increase as clarity on trade policy and the economy improves.