Cullen/Frost 1Q17 Earnings Call Notes

Phil Green – Chairman and CEO

Growth good overall

“Yes. I think the growth is good overall. As I said, consumer’s up 8. We’re seeing strong commercial real estate growth. There is a lot of activity there. We’re being little careful and selective as far as that goes. And we’re seeing good C&I growth. I would say, it’s a very broad-based growth in the portfolio overall. So, it’s just indicative of better activity.”

Jerry Salinas

Texas economy is accelerating

“The Texas economy is accelerating across the industry sectors and metro areas. Texas employment expanded at an annualized 2.4% in the first quarter of 2017. The Dallas Fed notes more hiring optimism in Texas than in recent years. Although Texas rig counts are rising, employment growth in the energy sector is a bit slower due to both increased efficiency and automation. For the first time in many years, the Texas unemployment rate is higher than the national average due to a sharp increase in the state’s workforce. The March unemployment rate in Texas is now 5% compared to the national average of 4.5%.”