Peter Winter's questions to CULLEN/FROST BANKERS (CFR) leadership • Q2 2025
Question
Peter Winter from D.A. Davidson followed up on the Net Interest Income guidance, asking why the upper end of the range wasn't increased given fewer expected Fed rate cuts. He also inquired about the future of the branch expansion strategy beyond current projects.
Answer
CFO Dan Geddes responded that the steady NII guidance is due to a shifting deposit mix, with growth in higher-cost CDs partially offsetting the benefit from fewer rate cuts. CEO Phillip Green detailed the expansion strategy, confirming it will remain within Texas. He explained the focus will be on identifying new high-growth areas in both expansion markets like Houston and Dallas and in legacy markets, rather than expanding into new states.