- Excess liquidity will likely continue to remain a problem in the year ahead because the loan portfolio will likely decline while deposits will continue to grow.
- The excess liquidity will pressurize the average yield, and consequently the net interest margin.
- Improvement in the economic environment will let the provision expense return to a normal level this year.
- The year-end target price is below the current market price. Further, CFR is offering a low dividend yield.
For further details see:
Cullen/Frost Bankers: Excess Liquidity A Small Blemish On Otherwise Rosy Earnings Outlook