Energy Slump Creating New Opportunities for Texas Bank Cullen/Frost

While the recovery in the energy sector might be a year away, Texas-based Cullen/Frost (CFR) continues to write new loans for energy companies. 'We don't open the faucet all the way in the good times and we don't shut it in the bad times,' said Dick Evans, Chairman and CEO of Cullen/Frost. 'And quite frankly, in the bottom of the cycles is the opportunity to get those very best customers, who have a strong financial position, good capital, lots of liquidity, and so we've actually seen good growth in our energy loans, picking up some customers we always wanted to bank.' Evans added that while he expected to see a rebound in the U.S. energy sector this summer, he's now not expecting a recovery until the third or fourth quarter of next year. During a recent earnings conference call, Evans stated that while increases in problem energy loans are expected, the overall impact should be manageable. In an interview with TheStreet, Evans said he has yet to see an increase in non-performing loans. Evans also believes the boom and bust in energy was exacerbated by the Federal Reserve's current low interest rate policy.