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Banking earnings roundup: BOK Financial, Cullen/Frost talk spillover from oil

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Banking earnings roundup: BOK Financial, Cullen/Frost talk spillover from oil

BOKFinancial Corp. reported first-quarter net income attributable to shareholders of $42.6 millionor 64 cents per share, down from $74.8 million or $1.08 per share for the first quarter of 2015.

BOK Financial faced challenges on the oil-and-gas front during what President and CEO Steven Bradshaw called"a very challenging quarter." Nonperforming energy loans rose $98 million during the first quarter, and nearly 19% of the bank's total loans consistof oil-and-gas credits.

For more information,see:

BOK Financial says 'little spillover'from oil; investors dubious


State Street Corp. reported first-quarter available to common shareholdersof $319 million or 79 cents per share, compared to $373 million or 89 cents pershare in the same period of 2015. On an operating basis, net income available to common shareholders totaled$396 million or 98 cents per share.

During an earningscall, executives said the bank is committed to resolving its living will deficiencies.CFO Michael Bell said while it is too early to give specifics, "there's likelyto be some additional infrastructure to be built," including modeling and monitoringcapabilities and additional legal entity simplification.

For more information,see:

State Street executives committedto resolving living will deficiencies


Cullen/FrostBankers Inc. reported first-quarter net income available to common shareholders of $67 million or $1.07 per share, compared to $70.1 million or $1.10 per share in the year-ago period.

When asked during an earnings call aboutenergy weakness affecting other markets in Texas, Chairman and CEO Phillip Greensaid he is not "seeing much, if any, contagion in the portfolio right now."

"And so I wouldnot expect that to happen from a contagion basis," Green added.

During the call, executives said thecompany saw three loans totaling $94.3 million move into the nonperforming categoryin the first quarter. All three loans were to exploration and production companies,and the bank has set aside $28 million in reserves for the loans.

For more information,see:

Cullen/Frost CEO sees little,'if any,' contagion from energy


Valley National Bancorpreportedfirst-quarter net incomeavailable to common shareholders of $34.4 million or 14 cents per diluted share.This was up from $30.3 million or 13 cents per share a year earlier.

The net interest margin was 3.08% forthe first quarter on a tax-equivalent basis, compared to 3.30% in the previous periodand 3.20% for the year-ago period.

Valley National Chairman, Presidentand CEO, Gerald Lipkin was upbeat about the company's loan growth in spite of "tepid"economic development in its core markets of New Jersey and New York. Lipkin saidduring an earnings call that he has "reason to be optimistic about levels oflending in the Northeast for the balance of the year."

For more information,see:

Lipkin sees better loan growthin Northeast after Florida carries company in Q1


UnitedCommunity Banks Inc. reported first-quarter net income available to common shareholders of $22.3 million or 31 cents per share. On an operating basis, the bank reportednet income of $23.9 million or 33 cents per share.

Thefirst-quarter provision for credit losses was negative $200,000 compared with positiveprovisions of $300,000 during the linked period and $1.8 million during the year-agoquarter. The bank said the negative provision reflects continued strong credit quality,a low overall level of net charge-offs and improvement in a number of its largesttroubled debt restructurings and the related release of reserves assigned specificallyto them.

Net charge-offs for the quarter totaled $2.1 million compared with $1.3million during the previous quarter,and $2.6 million during the firstquarter of 2015. Nonperforming assets stood at0.28% of total assets for the quarter, compared with 0.29% in the previous quarter, and 0.26% in the year-ago period.


ProsperityBancshares Inc. reported first-quarter net income available to common shareholders of $69.0 million or 98 cents per share, comparedwith $73.6 million or $1.05 per share for the same period in 2015.

The bank's tax equivalent net interestmargin stood at 3.48% for the quarter, compared with 3.24% from the previous quarter,and 3.57% for the same period in 2015.

Despite a slowdown in M&A activity in Texas, executives said the bankcontinues looking for acquisitions.

For more information,see:

TexasM&A slower, but Prosperity still hunting for deals


EverBank Financial Corp first-quarter GAAP netincome available to common shareholders of $25.4 million or 20 cents per share,compared to $11.7 million or 9 cents per share for the first quarter of 2015. EverBank'sadjusted net income available to common shareholders was $39.8 million, or 32 centsper share, for the first quarter, compared to $39.1 million, or 31 cents per share,for the first quarter of 2015.

Executives said they continueto expect a low and flat interest rate environment throughout 2016. They plan togrow the bank's balance sheet on a "more selective basis" by retainingfewer of the high-quality loans and leases it originates and optimizing risk-adjustedreturns through asset sales.

For more information, see:

EverBank Financial selectivelygrowing balance sheet with low rate outlook for '16


First Citizens BancShares Inc. reported first-quarter of $52.1 million or $4.34per share, compared to $67.2 million or $5.59 per share for the first quarter of2015.

The company's allowance for loan losses was $206.8 million, compared to $206.2million in the fourth quarter of 2015, and $205.6 million in the year-ago period.

Net loans charged offwere $4.3 million for the first quarter, compared to $6.3 million for the priorquarter and $4.7 million for the first quarter of 2015.


Jackson, Miss.-based Trustmark Corp. reported first-quarter net income of $27.0million or 40 cents per diluted share, compared to $29.1 million or 43 cents perdiluted share for the same period a year ago.

Executives downplayed the bank's energy exposure duringa conference call April 27. They also discussed plans to close six branches with"limited growth opportunities" in Alabama, Mississippi and Florida duringthe second quarter.

For more information, see:Trustmark execs talk branch strategy, energy exposure


 Capital One Financial Corp. reported first-quarter available to common stockholdersof $970 million or $1.84 per share, compared to $848 million or $1.58 per sharefor the linked quarter.

During a conference call, Chairman and CEO RichardFairbank spoke about branch optimization plansand revealed the company had spent $50 million in 2015 and another $11 million in2016 on this effort. Fairbank also cautionedabout the potential for further reserve-building in the company's oil-and-gas portfolio.

For more information, see:

Capital One toaccelerate branch optimization plans