A combination of rising interest rates, the strong Texas economy, and the resurgent energy industry add up to piles of profits for San Antonio based Cullen-Frost Bankers, the largest Texas based bank, Nws Radio 1200 WOAI reports.
CEO Phil Green says Frost Bank's net income jumped 27% compared to the third quarter of 2017, and deposits were also up sharply.
Net interest income and average loans also increased, while problem loans were down substantially.
Higher interest rates, the booming Texas economy, and strength in the state's oil and gas industry all contributed to the upswing, and he said all indications are that these conditions will continue.
"When we visit our customers across Texas, they tell us they are optimistic about oppportunities ahead of them," he said. "And because we are well positions to serve them with a competitive product mix and strong value proposition, we're looking forward to our own opporutities."
Like many financial institutions, Frost Bank suffered a setback when oil prices collapsed in late 2014, but he says the strong economy has enabled Frost to hedge its exposure to the volitile energy sector.
"Energy industry activity has been a source of growth in markets where we do business," he said. "But the percentage of energy loans in our portfolio remains well below our peak in 2016."
And the biggest consumer facing announcement. Green says Frost will vastly increase its footprint n the Houston area, where it is only the eighth largest bank in the metro.
"We plan to significantly expand our presence in the Houston region, by opening 25 financial centers in growing areas in the next 25 months," he said.