Catherine Mealor's questions to CULLEN/FROST BANKERS (CFR) leadership • Q2 2025
Question
Catherine Mealor of KBW sought clarification on the service charge outlook and asked about the cost of new deposits. She also questioned how a 'higher for longer' interest rate environment might affect deposit costs.
Answer
CFO Dan Geddes affirmed that service charge growth is volume-based and should continue. He described new deposit inflows as broad-based and returning to seasonal norms. In a 'higher for longer' scenario, he does not anticipate a material increase in deposit costs, explaining that any rise would likely stem from a deposit mix shift toward products like CDs, rather than from raising rates to match competitors. CEO Phillip Green concurred that it would be a mix effect.