Macquarie analyst John Moran downgraded Cullen/Frost to Underperform to reflect the heavy concentration and overall exposure to the oil patch and a less favorable position to a better short-term rate environment. Moran has a $48 price target on Cullen/Frost shares. Note that Barclays also downgraded shares this morning.

Common Equity Tier 1, Tier 1 and Total Risk-Based Capital Ratios at the end of Q1 were 13.41%, 13.89% and 15.35%, respectively. Q1 net interest income on a taxable-equivalent basis was $411.4M, down 3.4% vs. the prior year period. Net interest margin was 3.48% vs. 3.41% for 4Q23 and 3.47% for 1Q23. Q1 reported a credit loss expense of $13.7M and net charge-offs of $7.3M vs. a credit loss expense of $16.0M and net charge-offs of $10.9M for 4Q23 and a credit loss expense of $9.1M and net charge-offs of $8.8M for 1Q23. "The solid earnings for the first quarter show the results of our organic growth strategy and the hard work of our bankers," said CEO Phil Green. "The steady increase in loans and consistent growth in both commercial and consumer relationships reflect Frost's enduring strength and stability. We continue to make investments to fuel the sustained growth of our business into the future, including opening the second new location in our Austin expansion on April 1 of this year. I want to commend all the Frost bankers who continue to provide world-class service to more people throughout the state as we pursue our organic growth initiatives."