SAN ANTONIO, Oct. 27 /PRNewswire-FirstCall/ -- Cullen/Frost
Bankers, Inc. (NYSE: CFR) today reported earnings for the third
quarter of 2010 of $55.0 million, an
increase of 23.0 percent over the $44.7
million reported for the same period in 2009. On a per-share
basis, net income for the quarter was $.90 per diluted common share, compared to the
$.75 per diluted common share
reported a year earlier.
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Return on average assets and return on average equity for the
third quarter of 2010 were 1.25 percent and 10.49 percent,
respectively, compared to 1.11 percent and 9.70 percent for the
same quarter in 2009.
The provision for possible loan losses was $10.1 million, compared to $16.9 million reported a year earlier, while the
allowance for possible loan losses as a percentage of loans
increased to 1.57 percent from 1.45 percent for the same quarter of
2009.
For the third quarter of 2010, net interest income on a
tax-equivalent basis increased 7.4 percent to $155.7 million, compared to the $144.9 million reported for the same quarter of
2009. Average deposits for the quarter were $14.3 billion, an increase of $474 million over the previous quarter, and a
rise of $1.5 billion over the
$12.8 billion reported for the third
quarter of 2009. Average loans for the third quarter of 2010
declined slightly to $8.1 billion,
compared to the $8.6 billion reported
for the third quarter a year earlier, and were essentially flat
compared to the $8.1 billion reported
in the second quarter.
"Our company's third quarter performance reflects that
Cullen/Frost continues to operate well in this challenging
environment," said Cullen/Frost CEO Dick
Evans. "I was pleased to see good growth in net interest
income, as we continue to see the benefits of lower deposit costs
and having deployed some of our liquidity into quality investments
during the last half of 2009. We continue to grow our customer base
and expand relationships, which we believe will fuel our future
growth."
The flight to quality and safety that Cullen/Frost has been
experiencing for eight consecutive quarters continues to drive
average deposit growth, with deposits up almost $4.0 billion since the third quarter of 2008.
"Customers and prospects are continuing to bring their money to
Frost amid this deleveraging environment, and we will be there to
help them reinvest and grow their businesses again when confidence
returns," Evans said.
"Although making loans continues to be challenged by an
environment in which both businesses and consumers remain cautious
and are paying down debt, Cullen/Frost continues to add new
relationships and build for the future. We are also
maintaining discipline in expense control, even as we
continue to invest in our company."
The new Frost Technology Center, which is now fully operational,
will meet the company's technology infrastructure expansion needs
for the foreseeable future. This quarter, the organization
moved an older financial center in Fort
Worth to a newer facility, and the relocation of one of the
Dallas locations should be complete by year-end. The company
is also in the midst of a program to renovate a number of older
financial centers throughout the state to better serve customers
and reflect the Frost brand.
"We continue to believe Texas
is positioned to do well coming out of this recession and that the
U.S. economy is starting to level off, which is encouraging," said
Evans. "Even with improved economic conditions, charge-offs and the
provision for loan losses remain at elevated levels. Our credit
quality levels continue to be manageable.
"The Texas markets Frost serves
are among the strongest in the nation, and the state's economy
continues to outpace the U.S. by about one percent in job growth.
Cullen/Frost has strong capital and money to lend, and we continue
to focus on building and expanding relationships."
"With the two-year anniversary of Cullen/Frost's turning down
TARP bailout funds approaching in a few days, we believe that
decision was among the best in our company's 142-year
history," Evans continued. "Declining the bailout funds freed the
organization to focus our attention unabated on building our
business. Cullen/Frost has continued to pay dividends
throughout the financial crisis, even increasing our dividend each
year for the last 16 years."
"At Cullen/Frost, it is the human capital as much as the
financial capital that makes this possible. Our employees have done
an incredible job of helping us take advantage of the opportunities
this recession has presented, and I appreciate their ongoing
efforts to help our company grow," Evans said.
For the first nine months of 2010, earnings were $155.7 million, up 22.1 percent, compared
to $127.5 million reported for the
same period of 2009. On a per-share basis, earnings for the year to
date were $2.57 per diluted common
share, compared to $2.14 per diluted
common share for the same period in 2009. Returns on average assets
and equity for the first nine months of 2010 were 1.23 percent and
10.42 percent respectively, compared to 1.10 percent and 9.45
percent for the same period a year earlier.
Noted financial data for the third quarter of 2010 follows.
- Tier 1 and Total Risk-Based Capital Ratios for the Corporation
at the end of the third quarter of 2010 were 13.38 percent and
15.46 percent, respectively and are in excess of well capitalized
levels. The tangible common equity ratio was 9.15 percent at
the end of the third quarter of 2010 compared to 8.70 percent for
the same quarter last year.
- Net-interest income on a taxable equivalent basis for the third
quarter of 2010 totaled $155.7
million, an increase of 7.4 percent compared to $144.9 million for the same period a year ago.
This increase primarily resulted from an increase in the average
volume of earning assets as we are now seeing the benefits of
deploying some of our liquidity into quality investments late in
the second half of 2009. The net interest margin was 4.04 percent
for the third quarter of 2010, compared to 4.12 percent for the
third quarter of 2009, and 4.18 percent for the second quarter of
2010. The margin has been pressured in this near zero rate
environment although that pressure has been mitigated somewhat by
the benefits of quality municipal bond investments made since the
last half of 2009.
- Non-interest income for the third quarter of 2010 totaled
$70.4 million, compared to
$69.5 million reported for the third
quarter of 2009.
Trust fee income was $17.0
million, compared to $16.8
million a year earlier. Most of this increase was related to
increases in oil and gas trust management fees and securities
lending income. Investment fees, which represent
approximately 74 percent of total trust fees, were flat
compared to the same quarter a year ago.
Service charges on deposit accounts were $25.0 million, down $1.4
million compared to $26.4
million for the third quarter of 2009. This reduction
resulted from a $988 thousand
decrease in overdraft/insufficient funds charges on consumer
accounts, which was impacted by new overdraft regulations, and a
$957 thousand decrease in service
charges on commercial accounts. These decreases were partly offset
by a $613 thousand increase in
point-of-sale income from PIN-based debit card transactions.
Other charges, commissions and fees were $7.7 million for the third quarter of 2010, up
$863 thousand from last year's third
quarter of $6.8 million, due
primarily to commission income related to the sale of annuities (up
$287 thousand) and mutual fund
management fees (up $246 thousand).
Other non-interest income increased $1.1
million from the third quarter last year due primarily
to increases in revenues from Visa checkcard usage (up $671 thousand) and mineral interest income (up
$231 thousand).
- Non-interest expense was $132.6
million for the quarter, up $318
thousand, or flat with the $132.2
million reported a year earlier. Total salaries rose
$1.2 million, or 2.0 percent, to
$59.7 million, and were impacted by
an increase in incentive compensation expense and stock-based
compensation expense and were partially offset by lower staff
levels. Employee benefits were down $747 thousand, or 5.6 percent, primarily
related to decreases in expenses from the Corporation's retirement
plan (down $862 thousand). Net
occupancy expense was $12.2 million,
an increase of $1.1 million, or 9.8
percent, from the third quarter last year due mainly to increases
in expense for the new technology center, in building depreciation,
service contracts expense and building maintenance. Furniture and
equipment was $12.2 million, which
was up $1.0 million, or 9.3 percent
from the same quarter last year. This increase occurred due to
increases in software amortization expense and equipment rental,
also related to the technology center. Other expenses
declined $1.9 million, or 6.1
percent, from the third quarter last year. The most significant
components of this decrease were the losses from sale/write down of
foreclosed assets (down $1.1 million)
and armored motor services expense (down $599 thousand).
- For the third quarter of 2010, the provision for possible loan
losses was $10.1 million, compared to
net charge-offs of $9.4 million.
For the third quarter of 2009, the provision for possible
loan losses was $16.9 million,
compared to net charge-offs of $16.3
million. The allowance for possible loan losses as a
percentage of total loans was 1.57 percent at September 30, 2010, compared to 1.45 percent at
the end of the third quarter last year and 1.56 percent at the end
of the second quarter of 2010.
Cullen/Frost Bankers, Inc. will host a conference call on
Wednesday, October 27, 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, October 31, 2010 at 800-642-1687 with
Conference ID # of 18344509. 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 $17.7
billion at September 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.
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.
Greg Parker
|
|
Investor Relations
|
|
210/220-5632
|
|
or
|
|
Renee Sabel
|
|
Media Relations
|
|
210/220-5416
|
|
|
Cullen/Frost
Bankers, Inc.
|
|
CONSOLIDATED
FINANCIAL SUMMARY (UNAUDITED)
|
|
(In
thousands, except per share amounts)
|
|
|
|
2010
|
|
|
2009
|
|
|
|
|
3rd
Qtr
|
|
|
2nd
Qtr
|
|
|
1st
Qtr
|
|
|
4th
Qtr
|
|
|
3rd
Qtr
|
|
|
CONDENSED INCOME
STATEMENTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
$
|
142,416
|
|
$
|
141,896
|
|
$
|
137,584
|
|
$
|
138,594
|
|
$
|
133,989
|
|
|
Net interest
income(1)
|
|
155,702
|
|
|
155,054
|
|
|
150,343
|
|
|
150,743
|
|
|
144,915
|
|
|
Provision for possible loan
losses
|
|
10,100
|
|
|
8,650
|
|
|
13,571
|
|
|
22,250
|
|
|
16,940
|
|
|
Non-interest income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trust fees
|
|
17,029
|
|
|
17,037
|
|
|
16,963
|
|
|
17,669
|
|
|
16,755
|
|
|
Service charges on deposit
accounts
|
|
24,980
|
|
|
24,925
|
|
|
24,809
|
|
|
26,017
|
|
|
26,395
|
|
|
Insurance commissions and
fees
|
|
8,588
|
|
|
7,512
|
|
|
11,138
|
|
|
6,734
|
|
|
8,505
|
|
|
Other charges, commissions
and fees
|
|
7,708
|
|
|
8,029
|
|
|
6,919
|
|
|
7,804
|
|
|
6,845
|
|
|
Net gain (loss) on
securities transactions
|
|
--
|
|
|
1
|
|
|
5
|
|
|
(1,309)
|
|
|
--
|
|
|
Other
|
|
12,125
|
|
|
12,428
|
|
|
11,559
|
|
|
29,430
|
|
|
10,991
|
|
|
Total non-interest
income
|
|
70,430
|
|
|
69,932
|
|
|
71,393
|
|
|
86,345
|
|
|
69,491
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and
wages
|
|
59,743
|
|
|
58,827
|
|
|
60,275
|
|
|
58,736
|
|
|
58,591
|
|
|
Employee
benefits
|
|
12,698
|
|
|
12,675
|
|
|
14,521
|
|
|
12,756
|
|
|
13,445
|
|
|
Net occupancy
|
|
12,197
|
|
|
11,637
|
|
|
11,135
|
|
|
11,523
|
|
|
11,111
|
|
|
Furniture and
equipment
|
|
12,165
|
|
|
11,662
|
|
|
11,489
|
|
|
12,065
|
|
|
11,133
|
|
|
Deposit
insurance
|
|
4,661
|
|
|
5,429
|
|
|
5,443
|
|
|
5,126
|
|
|
4,643
|
|
|
Intangible
amortization
|
|
1,276
|
|
|
1,299
|
|
|
1,333
|
|
|
1,473
|
|
|
1,564
|
|
|
Other
|
|
29,812
|
|
|
33,125
|
|
|
30,398
|
|
|
32,537
|
|
|
31,747
|
|
|
Total non-interest
expense
|
|
132,552
|
|
|
134,654
|
|
|
134,594
|
|
|
134,216
|
|
|
132,234
|
|
|
Income before income
taxes
|
|
70,194
|
|
|
68,524
|
|
|
60,812
|
|
|
68,473
|
|
|
54,306
|
|
|
Income taxes
|
|
15,199
|
|
|
15,624
|
|
|
12,994
|
|
|
16,979
|
|
|
9,607
|
|
|
Net income
|
$
|
54,995
|
|
$
|
52,900
|
|
$
|
47,818
|
|
$
|
51,494
|
|
$
|
44,699
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PER SHARE DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income – basic
|
$
|
0.90
|
|
$
|
0.87
|
|
$
|
0.79
|
|
$
|
0.86
|
|
$
|
0.75
|
|
|
Net income - diluted
|
|
0.90
|
|
|
0.87
|
|
|
0.79
|
|
|
0.86
|
|
|
0.75
|
|
|
Cash dividends
|
|
0.45
|
|
|
0.45
|
|
|
0.43
|
|
|
0.43
|
|
|
0.43
|
|
|
Book value at end of
quarter
|
|
34.78
|
|
|
33.65
|
|
|
32.25
|
|
|
31.55
|
|
|
31.80
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OUTSTANDING SHARES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end shares
|
|
60,836
|
|
|
60,656
|
|
|
60,443
|
|
|
60,038
|
|
|
59,929
|
|
|
Weighted-average shares -
basic
|
|
60,524
|
|
|
60,365
|
|
|
59,972
|
|
|
59,762
|
|
|
59,537
|
|
|
Dilutive effect of stock
compensation
|
|
141
|
|
|
199
|
|
|
185
|
|
|
64
|
|
|
91
|
|
|
Weighted-average shares -
diluted
|
|
60,665
|
|
|
60,564
|
|
|
60,157
|
|
|
59,826
|
|
|
59,628
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED ANNUALIZED
RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
|
1.25
|
%
|
|
1.26
|
%
|
|
1.17
|
%
|
|
1.25
|
%
|
|
1.11
|
%
|
|
Return on average
equity
|
|
10.49
|
|
|
10.67
|
|
|
10.07
|
|
|
10.70
|
|
|
9.70
|
|
|
Net interest income to average
earning assets(1)
|
|
4.04
|
|
|
4.18
|
|
|
4.19
|
|
|
4.20
|
|
|
4.12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Taxable-equivalent basis
assuming a 35% tax rate.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cullen/Frost
Bankers, Inc.
|
|
CONSOLIDATED
FINANCIAL SUMMARY (UNAUDITED)
|
|
|
|
|
|
2010
|
|
2009
|
|
|
|
|
3rd
Qtr
|
|
|
2nd
Qtr
|
|
|
1st
Qtr
|
|
|
4th
Qtr
|
|
|
3rd
Qtr
|
|
|
BALANCE SHEET SUMMARY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Balance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
$
|
8,058
|
|
$
|
8,142
|
|
$
|
8,271
|
|
$
|
8,440
|
|
$
|
8,582
|
|
|
Earning
assets
|
|
15,590
|
|
|
15,071
|
|
|
14,665
|
|
|
14,501
|
|
|
14,121
|
|
|
Total
assets
|
|
17,470
|
|
|
16,872
|
|
|
16,530
|
|
|
16,335
|
|
|
16,047
|
|
|
Non-interest-bearing
demand deposits
|
|
5,125
|
|
|
4,906
|
|
|
4,684
|
|
|
4,574
|
|
|
4,343
|
|
|
Interest-bearing
deposits
|
|
9,166
|
|
|
8,911
|
|
|
8,806
|
|
|
8,644
|
|
|
8,453
|
|
|
Total
deposits
|
|
14,291
|
|
|
13,817
|
|
|
13,490
|
|
|
13,218
|
|
|
12,796
|
|
|
Shareholders'
equity
|
|
2,080
|
|
|
1,989
|
|
|
1,926
|
|
|
1,909
|
|
|
1,829
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-End Balance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
$
|
8,053
|
|
$
|
8,066
|
|
$
|
8,190
|
|
$
|
8,368
|
|
$
|
8,519
|
|
|
Earning
assets
|
|
15,852
|
|
|
15,245
|
|
|
14,991
|
|
|
14,437
|
|
|
14,436
|
|
|
Goodwill and
intangible assets
|
|
543
|
|
|
545
|
|
|
546
|
|
|
547
|
|
|
549
|
|
|
Total
assets
|
|
17,738
|
|
|
17,060
|
|
|
16,761
|
|
|
16,288
|
|
|
16,158
|
|
|
Total
deposits
|
|
14,530
|
|
|
13,952
|
|
|
13,734
|
|
|
13,313
|
|
|
12,922
|
|
|
Shareholders'
equity
|
|
2,116
|
|
|
2,041
|
|
|
1,949
|
|
|
1,894
|
|
|
1,906
|
|
|
Adjusted
shareholders' equity(1)
|
|
1,865
|
|
|
1,826
|
|
|
1,785
|
|
|
1,740
|
|
|
1,709
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSET QUALITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for possible loan
losses
|
$
|
126,157
|
|
$
|
125,442
|
|
$
|
125,369
|
|
$
|
125,309
|
|
$
|
123,122
|
|
|
as a percentage of
period-end loans
|
|
1.57
|
%
|
|
1.56
|
%
|
|
1.53
|
%
|
|
1.50
|
%
|
|
1.45
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs
|
$
|
9,385
|
|
$
|
8,577
|
|
$
|
13,511
|
|
$
|
20,063
|
|
$
|
16,319
|
|
|
Annualized as a
percentage of average loans
|
|
0.46
|
%
|
|
0.42
|
%
|
|
0.66
|
%
|
|
0.94
|
%
|
|
0.75
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-accrual
loans
|
$
|
144,900
|
|
$
|
134,524
|
|
$
|
144,617
|
|
$
|
146,867
|
|
$
|
191,754
|
|
|
Foreclosed
assets
|
|
23,778
|
|
|
24,744
|
|
|
26,936
|
|
|
33,312
|
|
|
29,112
|
|
|
Total
|
$
|
168,678
|
|
$
|
159,268
|
|
$
|
171,553
|
|
$
|
180,179
|
|
$
|
220,866
|
|
|
As a percentage
of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
and foreclosed assets
|
|
2.09
|
%
|
|
1.97
|
%
|
|
2.09
|
%
|
|
2.14
|
%
|
|
2.58
|
%
|
|
Total
assets
|
|
0.95
|
|
|
0.93
|
|
|
1.02
|
|
|
1.11
|
|
|
1.37
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED CAPITAL
RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 Risk-Based Capital
Ratio
|
|
13.38
|
%
|
|
13.16
|
%
|
|
12.70
|
%
|
|
11.91
|
%
|
|
11.49
|
%
|
|
Total Risk-Based Capital
Ratio
|
|
15.46
|
|
|
15.52
|
|
|
15.05
|
|
|
14.19
|
|
|
13.72
|
|
|
Leverage Ratio
|
|
8.67
|
|
|
8.80
|
|
|
8.70
|
|
|
8.50
|
|
|
8.47
|
|
|
Equity to Assets Ratio
(period-end)
|
|
11.93
|
|
|
11.96
|
|
|
11.63
|
|
|
11.63
|
|
|
11.80
|
|
|
Equity to Assets Ratio
(average)
|
|
11.90
|
|
|
11.79
|
|
|
11.65
|
|
|
11.69
|
|
|
11.40
|
|
|
(1) Shareholders' equity excluding
accumulated other comprehensive income (loss).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cullen/Frost
Bankers, Inc.
|
|
CONSOLIDATED
FINANCIAL SUMMARY (UNAUDITED)
|
|
(In
thousands, except per share amounts)
|
|
|
|
|
Nine Months
Ended
|
|
|
|
|
|
September
30,
|
|
|
|
|
|
2010
|
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED INCOME
STATEMENTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
|
$
|
421,896
|
|
$
|
398,085
|
|
|
Net interest
income(1)
|
|
|
461,098
|
|
|
426,972
|
|
|
Provision for possible loan
losses
|
|
|
32,321
|
|
|
43,142
|
|
|
Non-interest income
|
|
|
|
|
|
|
|
|
|
Trust fees
|
|
|
51,029
|
|
|
49,599
|
|
|
|
Service charges on deposit
accounts
|
|
|
74,714
|
|
|
76,457
|
|
|
|
Insurance commissions and
fees
|
|
|
27,238
|
|
|
26,362
|
|
|
|
Other charges, commissions and
fees
|
|
|
22,656
|
|
|
19,895
|
|
|
|
Net gain (loss) on securities
transactions
|
|
|
6
|
|
|
49
|
|
|
|
Other
|
|
|
36,112
|
|
|
34,999
|
|
|
|
|
|
|
|
|
|
|
|
Total non-interest
income
|
|
|
211,755
|
|
|
207,361
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest expense
|
|
|
|
|
|
|
|
|
|
Salaries and wages
|
|
|
178,845
|
|
|
171,907
|
|
|
|
Employee benefits
|
|
|
39,894
|
|
|
42,468
|
|
|
|
Net occupancy
|
|
|
34,969
|
|
|
32,665
|
|
|
|
Furniture and
equipment
|
|
|
35,316
|
|
|
32,158
|
|
|
|
Deposit insurance
|
|
|
15,533
|
|
|
20,686
|
|
|
|
Intangible
amortization
|
|
|
3,908
|
|
|
5,064
|
|
|
|
Other
|
|
|
93,335
|
|
|
93,074
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-interest
expense
|
|
|
401,800
|
|
|
398,022
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
|
199,530
|
|
|
164,282
|
|
|
Income taxes
|
|
|
43,817
|
|
|
36,742
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
155,713
|
|
$
|
127,540
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PER SHARE DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income - basic
|
|
$
|
2.57
|
|
$
|
2.14
|
|
|
Net income - diluted
|
|
|
2.57
|
|
|
2.14
|
|
|
Cash dividends
|
|
|
1.33
|
|
|
1.28
|
|
|
Book value at end of
period
|
|
|
34.78
|
|
|
31.80
|
|
|
|
|
|
|
|
|
|
|
|
|
OUTSTANDING SHARES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end shares
|
|
|
60,836
|
|
|
59,929
|
|
|
Weighted-average shares -
basic
|
|
|
60,289
|
|
|
59,353
|
|
|
Dilutive effect of stock
compensation
|
|
|
179
|
|
|
69
|
|
|
Weighted-average shares -
diluted
|
|
|
60,468
|
|
|
59,422
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED ANNUALIZED
RATIOS
|
|
|
|
|
|
|
|
|
Return on average
assets
|
|
|
1.23
|
%
|
|
1.10
|
%
|
|
Return on average
equity
|
|
|
10.42
|
|
|
9.45
|
|
|
Net interest income to average
earning assets(1)
|
|
|
4.13
|
|
|
4.24
|
|
|
(1) Taxable-equivalent basis
assuming a 35% tax rate.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cullen/Frost
Bankers, Inc.
|
|
CONSOLIDATED
FINANCIAL SUMMARY (UNAUDITED)
|
|
|
|
|
|
|
As of or for
the
|
|
|
|
|
|
Nine Months
Ended
|
|
|
|
|
|
September
30,
|
|
|
|
|
|
|
|
|
|
|
|
2010
|
|
|
2009
|
|
|
BALANCE SHEET SUMMARY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in
millions)
|
|
|
|
|
|
|
|
|
Average Balance:
|
|
|
|
|
|
|
|
|
|
Loans
|
|
$
|
8,156
|
|
$
|
8,724
|
|
|
|
Earning assets
|
|
|
15,125
|
|
|
13,569
|
|
|
|
Total assets
|
|
|
16,961
|
|
|
15,488
|
|
|
|
Non-interest-bearing demand
deposits
|
|
|
4,907
|
|
|
4,152
|
|
|
|
Interest-bearing
deposits
|
|
|
8,962
|
|
|
7,999
|
|
|
|
Total deposits
|
|
|
13,869
|
|
|
12,151
|
|
|
|
Shareholders' equity
|
|
|
1,999
|
|
|
1,805
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-End Balance:
|
|
|
|
|
|
|
|
|
|
Loans
|
|
$
|
8,053
|
|
$
|
8,519
|
|
|
|
Earning assets
|
|
|
15,852
|
|
|
14,436
|
|
|
|
Goodwill and intangible
assets
|
|
|
543
|
|
|
549
|
|
|
|
Total assets
|
|
|
17,738
|
|
|
16,158
|
|
|
|
Total deposits
|
|
|
14,530
|
|
|
12,922
|
|
|
|
Shareholders' equity
|
|
|
2,116
|
|
|
1,906
|
|
|
|
Adjusted shareholders'
equity(1)
|
|
|
1,865
|
|
|
1,709
|
|
|
|
|
|
|
|
|
|
|
|
ASSET QUALITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in thousands)
|
|
|
|
|
|
|
|
|
Allowance for possible loan
losses
|
|
$
|
126,157
|
|
$
|
123,122
|
|
|
|
|
As a percentage of period-end
loans
|
|
|
1.57
|
%
|
|
1.45
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs:
|
|
$
|
31,473
|
|
$
|
30,264
|
|
|
|
|
Annualized as a percentage of
average loans
|
|
|
0.52
|
%
|
|
0.46
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing
assets:
|
|
|
|
|
|
|
|
|
|
Non-accrual loans
|
|
$
|
144,900
|
|
$
|
191,754
|
|
|
|
Foreclosed assets
|
|
|
23,778
|
|
|
29,112
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
168,678
|
|
$
|
220,866
|
|
|
|
As a percentage of:
|
|
|
|
|
|
|
|
|
|
Total loans
and foreclosed assets
|
|
|
2.09
|
%
|
|
2.58
|
%
|
|
|
Total
assets
|
|
|
0.95
|
|
|
1.37
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED CAPITAL
RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 Risk-Based Capital
Ratio
|
|
|
13.38
|
%
|
|
11.49
|
%
|
|
Total Risk-Based Capital
Ratio
|
|
|
15.46
|
|
|
13.72
|
|
|
Leverage Ratio
|
|
|
8.67
|
|
|
8.47
|
|
|
Equity to Assets Ratio
(period-end)
|
|
|
11.93
|
|
|
11.80
|
|
|
Equity to Assets Ratio
(average)
|
|
|
11.78
|
|
|
11.65
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Shareholders' equity excluding
accumulated other comprehensive income (loss).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Cullen/Frost Bankers, Inc.
Copyright . 27 PR Newswire