San Antonio's Frost Bank, which is the largest Texas-based bank, reported net income available to common shareholders was up more than 20% in 2017, and bank officials credit the firm's financial strength largely to the strong Texas economy, and to the receit tax cut bill approved by Congress, News Radio 1200 WOAI reports.
"Fourth quarter and full year 2017 results include the benefit on a net basis of $4 million or 6 cents a share to adjusted deferred taxes, as a result of the Tax Cuts and Jobs Act," Cullen/Frost Bankers CEO Phil Green said.
Green said Frost is ready to reinvest the tax cuts into the corporation.
"The change in the tax law makes it easier for us to invest in the business and we are, and we will," he said.
Cullen/Frost Bankers CFO Jerry Salinas also credited the strong Texas economy for Frost's performance.
"The San Antonio economy is accelerating rapidly," he said. "For 2017, San Antonio employment grew 3.4%, the fastest among all the large state metro areas. The construction and leisure and hospitality sectors were the main drivers of job growth."
And Salinas said the strong economy is beginning to show up in increases in workers paychecks.
"Tightening labor markets can make it more challenging for Texas businesses to find qualified workers in 2018," he said. "Because of the labor market tightness, the Dallas Fed reports that Texas wages began rising in 2017 for the first time in three years."
Frost Bank also pointed out that this is its 150th anniversary.