SAN ANTONIO, July 28 /PRNewswire-FirstCall/ -- Cullen/Frost
Bankers, Inc. (NYSE: CFR) today reported strong results for the
second quarter, as the Texas
financial services leader continues to demonstrate its ability to
operate effectively in the current economic environment.
Cullen/Frost reported net income for the second quarter of 2010
of $52.9 million, a 39.7 percent
increase over second quarter 2009 earnings of $37.9 million. On a per-share basis, income was
$0.87 per diluted common share,
compared to $0.63 per diluted common
share reported a year earlier. Returns on average assets and
equity were 1.26 percent and 10.67 percent respectively, compared
to 0.98 percent and 8.35 percent for the same period a year
earlier.
"I am very pleased with our company's strong performance this
quarter, as it demonstrates our ability to operate effectively and
provide superior value to customers during challenging times," said
Dick Evans, Cullen/Frost chairman
and CEO. "Once again, we saw excellent deposit growth, as Texans,
trusting the safety and soundness of our company and appreciating
our value proposition, continue to bring their money and their
business to Frost. I was glad to see growth in net interest income,
as even in this near-zero rate environment, we have been able to
strategically deploy some of our liquidity into quality
investments.
"Signs of the recovery in Texas
are broad-based as our state's diversified and resilient economy,
positive job growth — expected to be 3 percent in 2010 — and stable
housing markets, continue to outpace the U.S. I am very encouraged
at the improvement in asset quality, as we saw a decline for the
third consecutive quarter in non-performing assets, which were down
$12 million sequentially and
$31 million compared to a year ago.
Similarly, the provision for possible loan losses declined by
$8.0 million compared to a year
earlier. Net charge-offs, at $8.6
million, were down significantly from the high of
$20.1 million reported for the fourth
quarter of 2009.
"This continues to be a period of great opportunity for
Cullen/Frost. With our strong balance sheet and capital levels, we
are poised for growth, and we are taking advantage of our position
as a financial institution that did not take federal bailout money.
Instead of worrying about repaying TARP funds, we have been able to
focus our efforts on making more calls and bringing in new
relationships, while helping our existing customers navigate
through the uncertainty. In spite of our strong efforts, the
lending environment continues to be challenged, with businesses
remaining cautious about hiring or investing in capital
improvements until they know the impact of various new
government regulations on their operations. I share their
frustration.
"With regard to the financial regulatory reform bill just passed
by Congress, there will be many changes going forward that we can't
control. But what we can control — the quality service and value we
provide to our customers — will not change. As always, I want to
express my appreciation to our outstanding employees, whose
loyalty, energy and commitment to our company and its culture help
us provide value and the very best service to our customers," Evans
continued.
For the first six months of 2010, net income was $100.7 million, or $1.66 per diluted common share, compared to
$82.8 million, or $1.39 per diluted common share, for the first six
months of 2009. Returns on average assets and average equity
for the first six months of 2010 were 1.22 percent and 10.38
percent, respectively, compared to 1.10 percent and 9.32 percent
for the same period in 2009.
Other noted financial data for the second quarter follows:
- Tier 1 and Total Risk-Based Capital Ratios remained strong at
13.16 percent and 15.52 percent, respectively, at the end of the
second quarter of 2010 and are in excess of well capitalized
levels. The tangible common equity ratio was 9.06 percent at the
end of the second quarter of 2010 compared to 8.19 percent for the
same quarter last year.
- Net interest income on a taxable-equivalent basis increased
$10.7 million, or 7.4 percent, to
$155.1 million, from the $144.3 million reported a year earlier. This
increase primarily resulted from an increase in the average volume
of interest earning assets and was partly offset by a decrease in
the net interest margin. Strong growth in deposits helped to fund
the increase in the volume of earning assets, which was used, in
part, to purchase high-quality higher-yielding tax-exempt
securities. The net interest margin was 4.18 percent for the second
quarter, compared to 4.19 percent for the first quarter this year
and 4.28 percent for the second quarter of 2009.
- Non-interest income for the second quarter of 2010 was
$69.9 million, compared to the
$68.0 million reported a year
earlier.
Trust fees were $17.0
million, up $162 thousand,
compared to $16.9 million in the
second quarter of 2009. This was primarily due to higher oil and
gas trust management fees, up $187
thousand, and real estate fees, up $186 thousand. These fee increases were offset in
part by lower securities lending income, down by $203 thousand.
Other service charges and fees were $8.0
million a 27.7 percent increase when compared to
$6.3 million reported in the same
quarter a year earlier. The largest components of this increase
were increases in commission income related to the sale of mutual
funds, up $591 thousand, mutual fund
management fees, up $328 thousand,
and investment banking fees related to corporate advisory services,
up $297 thousand.
- Non-interest expense for the quarter was $134.7 million, a decrease of $1.6 million, down 1.2 percent compared to the
$136.3 million reported for the
second quarter of last year. Most of the decrease in
non-interest expense is due to the $7.3 million FDIC special assessment recorded
during the second quarter of 2009. FDIC insurance expense was
$5.4 million for the second quarter
of 2010, down $6.2 million from
$11.7 million recorded in last year's
second quarter. Total salaries rose $2.3
million or 4.0 percent, to $58.8
million, and were impacted by normal annual merit increases
and an increase in incentive compensation, partially offset
by lower staff levels. Employee benefits were down
$1.1 million or 8.0 percent due
primarily to decreases in expenses related to the company's
retirement and profit sharing plans. Net occupancy was up
$773 thousand, or 7.1 percent,
compared to the second quarter of 2009, mainly due to an increase
in expenses related to the opening of the new technology center.
Furniture and fixtures increased $1.0
million, or 9.4 percent, from the same quarter last
year, with most of the increase coming from equipment rental and
depreciation expense related to the new technology center. Other
non-interest expense increased $2.1
million or 6.7 percent from a year earlier. The most
significant components of the increase included sundry expense from
miscellaneous items, up $1.7 million,
and losses on the sale/write-down of foreclosed assets, up
$1.4 million. Sundry expenses
included several one-time charges for write-offs, losses and
refunds.
- For the second quarter of 2010, the provision for possible loan
losses was $8.7 million, compared to
net charge-offs of $8.6 million.
The loan loss provision for the second quarter of 2009 was
$16.6 million, compared to net
charge-offs of $8.3 million.
Non-performing assets for the second quarter of 2010 were
$159.3 million, compared to
$171.6 million last quarter and
$190.3 million a year earlier. The
allowance for possible loan losses as a percentage of loans at
June 30, 2010 was 1.56 percent,
compared to 1.42 percent at the end of the second quarter of
2009.
Cullen/Frost Bankers, Inc. will host a conference call on
Wednesday, July 28, 2010, at
10:00 a.m. Central Time (CT) to
discuss the results for the quarter. The media and other
interested parties are invited to access the call in a "listen
only" mode at 1-800-944-6430. Digital playback of the conference
call will be available after 2:00 p.m. CT
until midnight Sunday, August 1, 2010 at 1-800-642-1687 or
1-706-645-9291 for international calls, with Conference ID # of
89043074. The call will also be available by webcast at the URL
listed below and available for playback after 2:00 p.m. CT. After entering the Web site,
www.frostbank.com, go to "About Frost" on the top navigation bar,
then click on Investor Relations.
Cullen/Frost Bankers, Inc. (NYSE: CFR) is a financial holding
company, headquartered in San
Antonio, with assets of $17.1
billion at June 30, 2010.
The corporation provides a full range of commercial and
consumer banking products, investment and brokerage services,
insurance products and investment banking services. Frost operates
more than 110 financial centers across Texas in the Austin, Corpus
Christi, Dallas,
Fort Worth, Houston, Rio Grande Valley and San Antonio regions. Founded in 1868, Frost is
the largest Texas-based banking
organization that operates only in Texas, with a legacy of helping clients with
their financial needs during three centuries.
Greg Parker
|
|
Investor Relations
|
|
210/220-5632
|
|
or
|
|
Renee Sabel
|
|
Media Relations
|
|
210/220-5416
|
|
|
Forward-Looking Statements and Factors that Could Affect
Future Results
Certain statements contained in this Earnings Release that are
not statements of historical fact constitute forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995 (the "Act"), notwithstanding that such
statements are not specifically identified as such. In addition,
certain statements may be contained in the Corporation's future
filings with the SEC, in press releases, and in oral and written
statements made by or with the approval of the Corporation that are
not statements of historical fact and constitute forward-looking
statements within the meaning of the Act. Examples of
forward-looking statements include, but are not limited to: (i)
projections of revenues, expenses, income or loss, earnings or loss
per share, the payment or nonpayment of dividends, capital
structure and other financial items; (ii) statements of plans,
objectives and expectations of Cullen/Frost or its management or
Board of Directors, including those relating to products or
services; (iii) statements of future economic performance; and
(iv) statements of assumptions underlying such statements. Words
such as "believes", "anticipates", "expects", "intends",
"targeted", "continue", "remain", "will", "should", "may" and other
similar expressions are intended to identify forward-looking
statements but are not the exclusive means of identifying such
statements.
Forward-looking statements involve risks and uncertainties that
may cause actual results to differ materially from those in such
statements. Factors that could cause actual results to differ from
those discussed in the forward-looking statements include, but are
not limited to:
- Local, regional, national and international economic conditions
and the impact they may have on the Corporation and its customers
and the Corporation's assessment of that impact.
- Volatility and disruption in national and international
financial markets.
- Government intervention in the U.S. financial system.
- Changes in the level of non-performing assets and
charge-offs.
- Changes in estimates of future reserve requirements based upon
the periodic review thereof under relevant regulatory and
accounting requirements.
- The effects of and changes in trade and monetary and fiscal
policies and laws, including the interest rate policies of the
Federal Reserve Board.
- Inflation, interest rate, securities market and monetary
fluctuations.
- Political instability.
- Acts of God or of war or terrorism.
- The timely development and acceptance of new products and
services and perceived overall value of these products and services
by users.
- Changes in consumer spending, borrowings and savings
habits.
- Changes in the financial performance and/or condition of the
Corporation's borrowers.
- Technological changes.
- Acquisitions and integration of acquired businesses.
- The ability to increase market share and control expenses.
- Changes in the competitive environment among financial holding
companies and other financial service providers.
- The effect of changes in laws and regulations (including laws
and regulations concerning taxes, banking, securities and
insurance) with which the Corporation and its subsidiaries must
comply.
- The effect of changes in accounting policies and practices, as
may be adopted by the regulatory agencies, as well as the Public
Company Accounting Oversight Board, the Financial Accounting
Standards Board and other accounting standard setters.
- Changes in the Corporation's organization, compensation and
benefit plans.
- The costs and effects of legal and regulatory developments
including the resolution of legal proceedings or regulatory or
other governmental inquiries and the results of regulatory
examinations or reviews.
- Greater than expected costs or difficulties related to the
integration of new products and lines of business.
- The Corporation's success at managing the risks involved in the
foregoing items.
Forward-looking statements speak only as of the date on which
such statements are made. The Corporation undertakes no obligation
to update any forward-looking statement to reflect events or
circumstances after the date on which such statement is made, or to
reflect the occurrence of unanticipated events.
Cullen/Frost Bankers,
Inc.
|
|
CONSOLIDATED FINANCIAL SUMMARY
(UNAUDITED)
|
|
(In thousands, except per share
amounts)
|
|
|
|
|
|
|
|
|
|
|
2010
|
|
|
2009
|
|
|
|
|
2nd Qtr
|
|
|
1st Qtr
|
|
|
4th Qtr
|
|
|
3rd Qtr
|
|
|
2nd Qtr
|
|
|
CONDENSED INCOME
STATEMENTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
$
|
141,896
|
|
$
|
137,584
|
|
$
|
138,594
|
|
$
|
133,989
|
|
$
|
134,464
|
|
|
Net interest
income(1)
|
|
155,054
|
|
|
150,343
|
|
|
150,743
|
|
|
144,915
|
|
|
144,325
|
|
|
Provision for possible loan
losses
|
|
8,650
|
|
|
13,571
|
|
|
22,250
|
|
|
16,940
|
|
|
16,601
|
|
|
Non-interest income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trust fees
|
|
17,037
|
|
|
16,963
|
|
|
17,669
|
|
|
16,755
|
|
|
16,875
|
|
|
Service charges on deposit
accounts
|
|
24,925
|
|
|
24,809
|
|
|
26,017
|
|
|
26,395
|
|
|
25,152
|
|
|
Insurance commissions and
fees
|
|
7,512
|
|
|
11,138
|
|
|
6,734
|
|
|
8,505
|
|
|
7,106
|
|
|
Other charges, commissions
and fees
|
|
8,029
|
|
|
6,919
|
|
|
7,804
|
|
|
6,845
|
|
|
6,288
|
|
|
Net gain (loss) on
securities transactions
|
|
1
|
|
|
5
|
|
|
(1,309)
|
|
|
--
|
|
|
49
|
|
|
Other
|
|
12,428
|
|
|
11,559
|
|
|
29,430
|
|
|
10,991
|
|
|
12,536
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-interest
income
|
|
69,932
|
|
|
71,393
|
|
|
86,345
|
|
|
69,491
|
|
|
68,006
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and
wages
|
|
58,827
|
|
|
60,275
|
|
|
58,736
|
|
|
58,591
|
|
|
56,540
|
|
|
Employee
benefits
|
|
12,675
|
|
|
14,521
|
|
|
12,756
|
|
|
13,445
|
|
|
13,783
|
|
|
Net occupancy
|
|
11,637
|
|
|
11,135
|
|
|
11,523
|
|
|
11,111
|
|
|
10,864
|
|
|
Furniture and
equipment
|
|
11,662
|
|
|
11,489
|
|
|
12,065
|
|
|
11,133
|
|
|
10,662
|
|
|
Deposit
insurance
|
|
5,429
|
|
|
5,443
|
|
|
5,126
|
|
|
4,643
|
|
|
11,667
|
|
|
Intangible
amortization
|
|
1,299
|
|
|
1,333
|
|
|
1,473
|
|
|
1,564
|
|
|
1,719
|
|
|
Other
|
|
33,125
|
|
|
30,398
|
|
|
32,537
|
|
|
31,747
|
|
|
31,054
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-interest
expense
|
|
134,654
|
|
|
134,594
|
|
|
134,216
|
|
|
132,234
|
|
|
136,289
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
68,524
|
|
|
60,812
|
|
|
68,473
|
|
|
54,306
|
|
|
49,580
|
|
|
Income taxes
|
|
15,624
|
|
|
12,994
|
|
|
16,979
|
|
|
9,607
|
|
|
11,721
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
|
52,900
|
|
$
|
47,818
|
|
$
|
51,494
|
|
$
|
44,699
|
|
$
|
37,859
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PER SHARE DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income - basic
|
$
|
0.87
|
|
$
|
0.79
|
|
$
|
0.86
|
|
$
|
0.75
|
|
$
|
0.64
|
|
|
Net income - diluted
|
|
0.87
|
|
|
0.79
|
|
|
0.86
|
|
|
0.75
|
|
|
0.63
|
|
|
Cash dividends
|
|
0.45
|
|
|
0.43
|
|
|
0.43
|
|
|
0.43
|
|
|
0.43
|
|
|
Book value at end of
quarter
|
|
33.65
|
|
|
32.25
|
|
|
31.55
|
|
|
31.80
|
|
|
30.12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OUTSTANDING SHARES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end shares
|
|
60,656
|
|
|
60,443
|
|
|
60,038
|
|
|
59,929
|
|
|
59,653
|
|
|
Weighted-average shares -
basic
|
|
60,365
|
|
|
59,972
|
|
|
59,762
|
|
|
59,537
|
|
|
59,331
|
|
|
Dilutive effect of stock
compensation
|
|
199
|
|
|
185
|
|
|
64
|
|
|
91
|
|
|
119
|
|
|
Weighted-average shares -
diluted
|
|
60,564
|
|
|
60,157
|
|
|
59,826
|
|
|
59,628
|
|
|
59,450
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED ANNUALIZED
RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
|
1.26
|
%
|
|
1.17
|
%
|
|
1.25
|
%
|
|
1.11
|
%
|
|
0.98
|
%
|
|
Return on average
equity
|
|
10.67
|
|
|
10.07
|
|
|
10.70
|
|
|
9.70
|
|
|
8.35
|
|
|
Net interest income to average
earning assets(1)
|
|
4.18
|
|
|
4.19
|
|
|
4.20
|
|
|
4.12
|
|
|
4.28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Taxable-equivalent basis
assuming a 35% tax rate.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cullen/Frost Bankers,
Inc.
|
|
CONSOLIDATED FINANCIAL SUMMARY
(UNAUDITED)
|
|
|
|
|
|
2010
|
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
2nd Qtr
|
|
|
1st Qtr
|
|
|
4th Qtr
|
|
|
3rd Qtr
|
|
|
2nd Qtr
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BALANCE SHEET SUMMARY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Balance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
$
|
8,142
|
|
$
|
8,271
|
|
$
|
8,440
|
|
$
|
8,582
|
|
$
|
8,784
|
|
|
Earning
assets
|
|
15,071
|
|
|
14,665
|
|
|
14,501
|
|
|
14,121
|
|
|
13,632
|
|
|
Total
assets
|
|
16,872
|
|
|
16,530
|
|
|
16,335
|
|
|
16,047
|
|
|
15,519
|
|
|
Non-interest-bearing
demand deposits
|
|
4,906
|
|
|
4,684
|
|
|
4,574
|
|
|
4,343
|
|
|
4,138
|
|
|
Interest-bearing
deposits
|
|
8,911
|
|
|
8,806
|
|
|
8,644
|
|
|
8,453
|
|
|
8,045
|
|
|
Total
deposits
|
|
13,817
|
|
|
13,490
|
|
|
13,218
|
|
|
12,796
|
|
|
12,183
|
|
|
Shareholders'
equity
|
|
1,989
|
|
|
1,926
|
|
|
1,909
|
|
|
1,829
|
|
|
1,818
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-End Balance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
$
|
8,066
|
|
$
|
8,190
|
|
$
|
8,368
|
|
$
|
8,519
|
|
$
|
8,644
|
|
|
Earning
assets
|
|
15,245
|
|
|
14,991
|
|
|
14,437
|
|
|
14,436
|
|
|
13,855
|
|
|
Goodwill and
intangible assets
|
|
545
|
|
|
546
|
|
|
547
|
|
|
549
|
|
|
549
|
|
|
Total
assets
|
|
17,060
|
|
|
16,761
|
|
|
16,288
|
|
|
16,158
|
|
|
15,785
|
|
|
Total
deposits
|
|
13,952
|
|
|
13,734
|
|
|
13,313
|
|
|
12,922
|
|
|
12,497
|
|
|
Shareholders'
equity
|
|
2,041
|
|
|
1,949
|
|
|
1,894
|
|
|
1,906
|
|
|
1,797
|
|
|
Adjusted
shareholders' equity(1)
|
|
1,826
|
|
|
1,785
|
|
|
1,740
|
|
|
1,709
|
|
|
1,675
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSET QUALITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for possible loan
losses
|
$
|
125,442
|
|
$
|
125,369
|
|
$
|
125,309
|
|
$
|
123,122
|
|
$
|
122,501
|
|
|
as a
percentage of period-end loans
|
|
1.56
|
%
|
|
1.53
|
%
|
|
1.50
|
%
|
|
1.45
|
%
|
|
1.42
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs
|
$
|
8,577
|
|
$
|
13,511
|
|
$
|
20,063
|
|
$
|
16,319
|
|
$
|
8,268
|
|
|
Annualized as
a percentage of average loans
|
|
0.42
|
%
|
|
0.66
|
%
|
|
0.94
|
%
|
|
0.75
|
%
|
|
0.38
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-accrual
loans
|
$
|
134,524
|
|
$
|
144,617
|
|
$
|
146,867
|
|
$
|
191,754
|
|
$
|
168,805
|
|
|
Foreclosed
assets
|
|
24,744
|
|
|
26,936
|
|
|
33,312
|
|
|
29,112
|
|
|
21,478
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
$
|
159,268
|
|
$
|
171,553
|
|
$
|
180,179
|
|
$
|
220,866
|
|
$
|
190,283
|
|
|
As a percentage
of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
and foreclosed assets
|
|
1.97
|
%
|
|
2.09
|
%
|
|
2.14
|
%
|
|
2.58
|
%
|
|
2.20
|
%
|
|
Total
assets
|
|
0.93
|
|
|
1.02
|
|
|
1.11
|
|
|
1.37
|
|
|
1.21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED CAPITAL
RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 Risk-Based Capital
Ratio
|
|
13.16
|
%
|
|
12.70
|
%
|
|
11.91
|
%
|
|
11.49
|
%
|
|
10.91
|
%
|
|
Total Risk-Based Capital
Ratio
|
|
15.52
|
|
|
15.05
|
|
|
14.19
|
|
|
13.72
|
|
|
13.34
|
|
|
Leverage Ratio
|
|
8.80
|
|
|
8.70
|
|
|
8.50
|
|
|
8.47
|
|
|
8.50
|
|
|
Equity to Assets Ratio
(period-end)
|
|
11.96
|
|
|
11.63
|
|
|
11.63
|
|
|
11.80
|
|
|
11.38
|
|
|
Equity to Assets Ratio
(average)
|
|
11.79
|
|
|
11.65
|
|
|
11.69
|
|
|
11.40
|
|
|
11.72
|
|
|
(1) Shareholders' equity excluding
accumulated other comprehensive income (loss).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cullen/Frost Bankers,
Inc.
|
|
CONSOLIDATED FINANCIAL SUMMARY
(UNAUDITED)
|
|
(In thousands, except per share
amounts)
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
|
|
June 30,
|
|
|
|
|
|
|
|
|
|
|
|
2010
|
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED INCOME
STATEMENTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
|
$
|
279,480
|
|
$
|
264,096
|
|
|
Net interest
income(1)
|
|
|
305,397
|
|
|
282,058
|
|
|
Provision for possible loan
losses
|
|
|
22,221
|
|
|
26,202
|
|
|
Non-interest income
|
|
|
|
|
|
|
|
|
|
Trust fees
|
|
|
34,000
|
|
|
32,844
|
|
|
|
Service charges on deposit
accounts
|
|
|
49,734
|
|
|
50,062
|
|
|
|
Insurance commissions and
fees
|
|
|
18,650
|
|
|
17,857
|
|
|
|
Other charges, commissions and
fees
|
|
|
14,948
|
|
|
13,050
|
|
|
|
Net gain (loss) securities
transactions
|
|
|
6
|
|
|
49
|
|
|
|
Other
|
|
|
23,987
|
|
|
24,008
|
|
|
|
|
|
|
|
|
|
|
|
Total non-interest
income
|
|
|
141,325
|
|
|
137,870
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest expense
|
|
|
|
|
|
|
|
|
|
Salaries and wages
|
|
|
119,102
|
|
|
113,316
|
|
|
|
Employee benefits
|
|
|
27,196
|
|
|
29,023
|
|
|
|
Net occupancy
|
|
|
22,772
|
|
|
21,554
|
|
|
|
Furniture and
equipment
|
|
|
23,151
|
|
|
21,025
|
|
|
|
Deposit insurance
|
|
|
10,872
|
|
|
16,043
|
|
|
|
Intangible
amortization
|
|
|
2,632
|
|
|
3,500
|
|
|
|
Other
|
|
|
63,523
|
|
|
61,327
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-interest
expense
|
|
|
269,248
|
|
|
265,788
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
|
129,336
|
|
|
109,976
|
|
|
Income taxes
|
|
|
28,618
|
|
|
27,135
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
100,718
|
|
$
|
82,841
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PER SHARE DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income - basic
|
|
$
|
1.67
|
|
$
|
1.39
|
|
|
Net income - diluted
|
|
|
1.66
|
|
|
1.39
|
|
|
Cash dividends
|
|
|
0.88
|
|
|
0.85
|
|
|
Book value at end of
period
|
|
|
33.65
|
|
|
30.12
|
|
|
|
|
|
|
|
|
|
|
|
|
OUTSTANDING SHARES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end shares
|
|
|
60,656
|
|
|
59,653
|
|
|
Weighted-average shares -
basic
|
|
|
60,170
|
|
|
59,260
|
|
|
Dilutive effect of stock
compensation
|
|
|
195
|
|
|
78
|
|
|
Weighted-average shares -
diluted
|
|
|
60,365
|
|
|
59,338
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED ANNUALIZED
RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
|
|
1.22
|
%
|
|
1.10
|
%
|
|
Return on average
equity
|
|
|
10.38
|
|
|
9.32
|
|
|
Net interest income to average
earning assets(1)
|
|
|
4.15
|
|
|
4.30
|
|
|
(1) Taxable-equivalent basis
assuming a 35% tax rate.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cullen/Frost Bankers,
Inc.
|
|
CONSOLIDATED FINANCIAL SUMMARY
(UNAUDITED)
|
|
|
|
|
|
|
As of or for the
|
|
|
|
|
|
Six Months Ended
|
|
|
|
|
|
June 30,
|
|
|
|
|
|
|
|
|
|
|
|
2010
|
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
BALANCE SHEET SUMMARY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in
millions)
|
|
|
|
|
|
|
|
|
Average Balance:
|
|
|
|
|
|
|
|
|
|
Loans
|
|
$
|
8,206
|
|
$
|
8,796
|
|
|
|
Earning assets
|
|
|
14,888
|
|
|
13,289
|
|
|
|
Total assets
|
|
|
16,702
|
|
|
15,203
|
|
|
|
Non-interest-bearing demand
deposits
|
|
|
4,796
|
|
|
4,055
|
|
|
|
Interest-bearing
deposits
|
|
|
8,859
|
|
|
7,768
|
|
|
|
Total deposits
|
|
|
13,654
|
|
|
11,823
|
|
|
|
Shareholders' equity
|
|
|
1,957
|
|
|
1,793
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-End Balance:
|
|
|
|
|
|
|
|
|
|
Loans
|
|
$
|
8,066
|
|
$
|
8,644
|
|
|
|
Earning assets
|
|
|
15,245
|
|
|
13,855
|
|
|
|
Goodwill and intangible
assets
|
|
|
545
|
|
|
549
|
|
|
|
Total assets
|
|
|
17,060
|
|
|
15,785
|
|
|
|
Total deposits
|
|
|
13,952
|
|
|
12,497
|
|
|
|
Shareholders' equity
|
|
|
2,041
|
|
|
1,797
|
|
|
|
Adjusted shareholders'
equity(1)
|
|
|
1,826
|
|
|
1,675
|
|
|
|
|
|
|
|
|
|
|
|
ASSET QUALITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in thousands)
|
|
|
|
|
|
|
|
|
Allowance for possible loan
losses
|
|
$
|
125,442
|
|
$
|
122,501
|
|
|
|
|
As a percentage of period-end
loans
|
|
|
1.56
|
%
|
|
1.42
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs:
|
|
$
|
22,088
|
|
$
|
13,945
|
|
|
|
|
Annualized as a percentage of
average loans
|
|
|
0.54
|
%
|
|
0.32
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing
assets:
|
|
|
|
|
|
|
|
|
|
Non-accrual loans
|
|
$
|
134,524
|
|
$
|
168,805
|
|
|
|
Foreclosed assets
|
|
|
24,744
|
|
|
21,478
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
159,268
|
|
$
|
190,283
|
|
|
|
As a percentage of:
|
|
|
|
|
|
|
|
|
|
|
Total loans and foreclosed
assets
|
|
|
1.97
|
%
|
|
2.20
|
%
|
|
|
|
Total assets
|
|
|
0.93
|
|
|
1.21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED CAPITAL
RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 Risk-Based Capital
Ratio
|
|
|
13.16
|
%
|
|
10.91
|
%
|
|
|
Total Risk-Based Capital
Ratio
|
|
|
15.52
|
|
|
13.34
|
|
|
|
Leverage Ratio
|
|
|
8.80
|
|
|
8.50
|
|
|
|
Equity to Assets Ratio
(period-end)
|
|
|
11.96
|
|
|
11.38
|
|
|
|
Equity to Assets Ratio
(average)
|
|
|
11.72
|
|
|
11.79
|
|
|
(1) Shareholders' equity
excluding accumulated other comprehensive income (loss).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Cullen/Frost Bankers, Inc.