What drove CFR's strong Q4 earnings performance?

Cullen/Frost Bankers Inc.'s (CFR) strong Q4 earnings performance can be attributed to Robust Loan Growth and Improved Profitability:

1. Loan Growth: CFR reported strong loan growth, which is a key driver of its earnings performance. The company's average loans increased by 11.8% year-over-year to $20.1 billion. This growth in loans contributes to higher interest income, which is a significant component of net interest income.
2. Profitability: Despite facing some profitability pressures, CFR demonstrated improved profitability in Q4, as evidenced by its fourth-quarter earnings of $153.2 million or $2.36 per share, compared to $100.9 million or $1.55 per share in the same quarter last year. This improvement in profitability is a direct result of the bank's strategic initiatives and effective management of its operations.

In summary, CFR's strong Q4 earnings performance is primarily driven by robust loan growth and improved profitability. These factors, combined with effective management and strategic initiatives, have enabled the company to deliver strong financial results in the quarter.