SAN ANTONIO, Jan. 26, 2011 /PRNewswire/ -- Cullen/Frost
Bankers, Inc. today reported results for the fourth quarter and
full year of 2010, as the Texas
financial services leader continued to operate well in a
challenging economy and extended low rate environment.
(Logo:
http://photos.prnewswire.com/prnh/20030109/CFRLOGO)
Cullen/Frost reported net income for the fourth quarter of 2010
of $53.1 million, or $.87 per diluted common share, compared to fourth
quarter 2009 earnings of $51.5
million, or $.86 per diluted
common share. For the fourth quarter of 2010, returns on
average assets and equity were 1.18 percent and 9.96 percent
respectively, compared to 1.25 percent and 10.70 percent for the
same period of 2009. The company benefited in the fourth
quarter of 2009 from a one-time $17.7
million gain from the termination of interest rate swaps
related to Federal Home Loan Bank advances.
The company also reported annual earnings for 2010 of
$208.8 million, a rise of 16.6
percent over 2009 earnings of $179.0
million. On a per-share basis, 2010 earnings were
$3.44 per diluted common share, an
increase of 14.7 percent compared to the $3.00 per diluted common share reported in 2009.
For the year, returns on average assets and equity were 1.21
percent and 10.30 percent respectively, compared to the 1.14
percent and 9.78 percent reported in 2009.
At the end of the fourth quarter of 2010, Cullen/Frost saw
non-performing assets decline by $15.2 million from the fourth quarter of
2009 and $3.7 million from the
previous quarter.
"Cullen/Frost turned in a strong performance in 2010 as the
economy is starting to show some early signs of recovery," said
Dick Evans, Cullen/Frost chairman
and CEO. "While we continue to experience a challenging
lending environment, I was especially pleased to see a slight
uptick in period-end loans, the first increase we've seen since the
fourth quarter of 2008. I believe we are beginning to see the
results of our disciplined calling effort, which has produced
many new relationships. Today our capital levels continue to be
strong – stronger, in fact, than before the economic crisis began.
And deposits continue to rise, although at a slower pace, as
customers continue to respond to our value proposition.
"It was encouraging to see another decline in non-performing
assets this quarter from both the same period a year ago and the
previous quarter. This is a clear indication of continuing progress
in our asset quality disciplines. I am pleased to report that
credit quality continues to be at manageable levels. The
provision for loan losses was down by $11
million from last year's fourth quarter," said Evans.
Evans said that economic uncertainty continued to affect the
lending environment, noting that business owners have deleveraged,
but remain cautious about putting capital to work. Although some
uncertainty has been resolved with the extension of tax cuts, Evans
said, broader economic uncertainty lingers.
"During the past year, we have worked harder than ever to
increase the number of new relationships and expand existing ones.
We are well positioned to see the benefits of these efforts
as the economy begins to grow once more.
"Many unknowns are yet to be resolved by the financial services
industry as we all determine the impact of Dodd-Frank," Evans
continued. "Even with the challenges this legislation poses,
at Cullen/Frost we are committed to continuing to deliver value to
our customers and shareholders.
Evans said the company opened one new financial center in
Houston in 2010 and relocated two
older facilities to newer locations in Fort Worth and Dallas.
Evans said. "As always, it is our outstanding people who make
our success possible and bring the Frost culture to life with our
customers every day. I appreciate their commitment to our
company and to taking great care of our customers."
For the year ended December 31,
2010, average annual total loans were $8.1 billion, compared to $8.7 billion for the previous year. Average
annual total deposits for 2010 rose to $14.0
billion, up 13.1 percent, or $1.6
billion, over the $12.4
billion reported in 2009. Net interest income on a
taxable-equivalent basis increased to $616.3
million, up 6.7 percent over the $577.7 million reported a year earlier,
reflecting the impact of the increasing volume of earning assets.
For 2010, non-interest income was $282.0 million, compared to $293.7 million reported for 2009, while
non-interest expense increased 0.6 percent over the previous year
to $535.5 million.
Noted financial data for the fourth quarter:
- Tier 1 and Total Risk-Based Capital Ratios for the Corporation
at the end of the fourth quarter of 2010 were 13.82 percent and
15.91 percent, respectively and are in excess of well capitalized
levels. The ratio of tangible common equity to tangible
assets was 8.90 percent at the end of the fourth quarter of 2010,
compared to 8.56 percent for the same quarter last year. (The
tangible common equity ratio, which is a non-GAAP financial measure
is equal to end of period shareholders' equity less goodwill and
intangible assets divided by end of period total assets less
goodwill and intangible assets.)
- Net interest income on a taxable-equivalent basis for the
fourth quarter totaled $155.2
million, compared to the $150.7
million reported for the fourth quarter of 2009. This
increase primarily resulted from an increase in the average volume
of earning assets and was partly offset by a decrease in the net
interest margin. The net interest margin was 3.93 percent for
the fourth quarter, compared to 4.20 percent for the fourth quarter
of 2009 and 4.04 percent for the third quarter of 2010.
- Non-interest income for the fourth quarter of 2010 was
$70.3 million, down $16.1 million from the $86.3 million a year earlier.
Other income was $14.2 million, a
decrease of $15.2 million from the
$29.4 million reported in the fourth
quarter of 2009, when the company realized a $17.7 million gain from the termination of
interest rate swaps associated with certain Federal Home Loan
Bank advances.
Service charges on deposits were $24.1
million, down $1.9 million
from the $26.0 million reported for
the previous year's fourth quarter. Most of this decrease is
related to lower NSF and overdraft service charges, which were
impacted by recent regulations passed during the third quarter of
2010. Also impacting the decrease were lower commercial
service charges from lower billable services.
- Non-interest expense for the fourth quarter of 2010 was
$133.7 million, down $475,000 from the $134.2
million for the fourth quarter of 2009. Salaries
were up $2 million, or 3.4
percent, over the same quarter a year earlier, as a result of
normal annual merit and market increases and an increase in
incentive compensation. Other expense was $30.9 million, a $1.7
million decline from the $32.5
million reported for the fourth quarter of 2009.
Included in other expense for 2009 was a $1.4 million prepayment penalty on the early
termination of certain Federal Home Loan Bank advances.
- For the fourth quarter of 2010, the provision for possible loan
losses was $11.3 million, compared to
net charge-offs of $11.1 million.
For the fourth quarter of 2009, the provision for possible
loan losses was $22.3 million,
compared to net charge offs of $20.1
million. The allowance for possible loan losses as a
percentage of total loans was 1.56 percent at December 31, 2010, compared to 1.50 percent at
year-end 2009. Non-performing assets were $165.0 million at year-end, compared to
$168.7 million the previous quarter,
and $180.2 million at year-end
2009.
Cullen/Frost Bankers, Inc. will host a conference call on
Wednesday, January 26, 2011 at
10 am Central Time (CT) to discuss
the results for the quarter and the year. The media and other
interested parties are invited to access the call in a "listen
only" mode at 800-944-6430. Digital playback of the
conference call will be available after 12
pm CT until midnight Sunday, January 30, 2011 at
800-642-1687, with the Conference ID# of 36233865. The call
will also be available by webcast on the company's website,
frostbank.com, and available for playback after 2 pm CT. After entering the website, 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 $17.6 billion in
assets at December 31, 2010, and more
than 110 financial centers throughout Texas. One of 24 U.S. banks included in
the KBW Bank Index, Frost provides a wide range of banking,
investments and insurance services to businesses and individuals in
the Austin, Corpus Christi, Dallas, Fort
Worth, Houston, Rio Grande
Valley and San Antonio regions.
Founded in 1868, Frost has helped clients with their financial
needs during three centuries. Additional information is available
at frostbank.com.
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 mix of loan geographies, sectors and types or
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.
- The effects 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 soundness of other financial institutions.
- Political instability.
- Impairment of the Corporation's goodwill or other intangible
assets.
- 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.
- The Corporation's ability to attract and retain qualified
employees.
- Changes in the competitive environment in the Corporation's
markets and among banking organizations and other financial service
providers.
- 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 reliability of the Corporation's vendors,
internal control systems or information systems.
- Changes in the Corporation's liquidity position.
- 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
|
|
|
|
|
4th
Qtr
|
|
|
3rd
Qtr
|
|
|
2nd
Qtr
|
|
|
1st
Qtr
|
|
|
4th
Qtr
|
|
|
CONDENSED INCOME
STATEMENTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
$
|
141,563
|
|
$
|
142,416
|
|
$
|
141,896
|
|
$
|
137,584
|
|
$
|
138,594
|
|
|
Net interest
income(1)
|
|
155,221
|
|
|
155,702
|
|
|
155,054
|
|
|
150,343
|
|
|
150,743
|
|
|
Provision for possible loan
losses
|
|
11,290
|
|
|
10,100
|
|
|
8,650
|
|
|
13,571
|
|
|
22,250
|
|
|
Non-interest income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trust fees
|
|
17,399
|
|
|
17,029
|
|
|
17,037
|
|
|
16,963
|
|
|
17,669
|
|
|
Service charges on deposit
accounts
|
|
24,082
|
|
|
24,980
|
|
|
24,925
|
|
|
24,809
|
|
|
26,017
|
|
|
Insurance commissions and
fees
|
|
6,777
|
|
|
8,588
|
|
|
7,512
|
|
|
11,138
|
|
|
6,734
|
|
|
Other charges, commissions
and fees
|
|
7,796
|
|
|
7,708
|
|
|
8,029
|
|
|
6,919
|
|
|
7,804
|
|
|
Net gain (loss) on
securities transactions
|
|
--
|
|
|
--
|
|
|
1
|
|
|
5
|
|
|
(1,309)
|
|
|
Other
|
|
14,224
|
|
|
12,125
|
|
|
12,428
|
|
|
11,559
|
|
|
29,430
|
|
|
Total non-interest
income
|
|
70,278
|
|
|
70,430
|
|
|
69,932
|
|
|
71,393
|
|
|
86,345
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and
wages
|
|
60,744
|
|
|
59,743
|
|
|
58,827
|
|
|
60,275
|
|
|
58,736
|
|
|
Employee
benefits
|
|
12,458
|
|
|
12,698
|
|
|
12,675
|
|
|
14,521
|
|
|
12,756
|
|
|
Net occupancy
|
|
11,197
|
|
|
12,197
|
|
|
11,637
|
|
|
11,135
|
|
|
11,523
|
|
|
Furniture and
equipment
|
|
12,335
|
|
|
12,165
|
|
|
11,662
|
|
|
11,489
|
|
|
12,065
|
|
|
Deposit
insurance
|
|
4,918
|
|
|
4,661
|
|
|
5,429
|
|
|
5,443
|
|
|
5,126
|
|
|
Intangible
amortization
|
|
1,217
|
|
|
1,276
|
|
|
1,299
|
|
|
1,333
|
|
|
1,473
|
|
|
Other
|
|
30,872
|
|
|
29,812
|
|
|
33,125
|
|
|
30,398
|
|
|
32,537
|
|
|
Total non-interest
expense
|
|
133,741
|
|
|
132,552
|
|
|
134,654
|
|
|
134,594
|
|
|
134,216
|
|
|
Income before income
taxes
|
|
66,810
|
|
|
70,194
|
|
|
68,524
|
|
|
60,812
|
|
|
68,473
|
|
|
Income taxes
|
|
13,759
|
|
|
15,199
|
|
|
15,624
|
|
|
12,994
|
|
|
16,979
|
|
|
Net income
|
$
|
53,051
|
|
$
|
54,995
|
|
$
|
52,900
|
|
$
|
47,818
|
|
$
|
51,494
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PER SHARE DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income - basic
|
$
|
0.87
|
|
$
|
0.90
|
|
$
|
0.87
|
|
$
|
0.79
|
|
$
|
0.86
|
|
|
Net income - diluted
|
|
0.87
|
|
|
0.90
|
|
|
0.87
|
|
|
0.79
|
|
|
0.86
|
|
|
Cash dividends
|
|
0.45
|
|
|
0.45
|
|
|
0.45
|
|
|
0.43
|
|
|
0.43
|
|
|
Book value at end of
quarter
|
|
33.74
|
|
|
34.78
|
|
|
33.65
|
|
|
32.25
|
|
|
31.55
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OUTSTANDING SHARES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end shares
|
|
61,108
|
|
|
60,836
|
|
|
60,656
|
|
|
60,443
|
|
|
60,038
|
|
|
Weighted-average shares -
basic
|
|
60,772
|
|
|
60,524
|
|
|
60,365
|
|
|
59,972
|
|
|
59,762
|
|
|
Dilutive effect of stock
compensation
|
|
176
|
|
|
141
|
|
|
199
|
|
|
185
|
|
|
64
|
|
|
Weighted-average shares -
diluted
|
|
60,948
|
|
|
60,665
|
|
|
60,564
|
|
|
60,157
|
|
|
59,826
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED ANNUALIZED
RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
|
1.18
|
%
|
|
1.25
|
%
|
|
1.26
|
%
|
|
1.17
|
%
|
|
1.25
|
%
|
|
Return on average
equity
|
|
9.96
|
|
|
10.49
|
|
|
10.67
|
|
|
10.07
|
|
|
10.70
|
|
|
Net interest income to average
earning assets(1)
|
|
3.93
|
|
|
4.04
|
|
|
4.18
|
|
|
4.19
|
|
|
4.20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Taxable-equivalent basis
assuming a 35% tax rate.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cullen/Frost
Bankers, Inc.
|
|
CONSOLIDATED
FINANCIAL SUMMARY (UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2010
|
|
|
2009
|
|
|
|
|
4th
Qtr
|
|
|
3rd
Qtr
|
|
|
2nd
Qtr
|
|
|
1st
Qtr
|
|
|
4th
Qtr
|
|
|
BALANCE SHEET SUMMARY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Balance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
$
|
8,033
|
|
$
|
8,058
|
|
$
|
8,142
|
|
$
|
8,271
|
|
$
|
8,440
|
|
|
Earning
assets
|
|
15,953
|
|
|
15,590
|
|
|
15,071
|
|
|
14,665
|
|
|
14,501
|
|
|
Total
assets
|
|
17,855
|
|
|
17,470
|
|
|
16,872
|
|
|
16,530
|
|
|
16,335
|
|
|
Non-interest-bearing
demand deposits
|
|
5,371
|
|
|
5,125
|
|
|
4,906
|
|
|
4,684
|
|
|
4,574
|
|
|
Interest-bearing
deposits
|
|
9,264
|
|
|
9,166
|
|
|
8,911
|
|
|
8,806
|
|
|
8,644
|
|
|
Total
deposits
|
|
14,635
|
|
|
14,291
|
|
|
13,817
|
|
|
13,490
|
|
|
13,218
|
|
|
Shareholders'
equity
|
|
2,114
|
|
|
2,080
|
|
|
1,989
|
|
|
1,926
|
|
|
1,909
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-End Balance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
$
|
8,117
|
|
$
|
8,053
|
|
$
|
8,066
|
|
$
|
8,190
|
|
$
|
8,368
|
|
|
Earning
assets
|
|
15,806
|
|
|
15,852
|
|
|
15,245
|
|
|
14,991
|
|
|
14,437
|
|
|
Goodwill and
intangible assets
|
|
542
|
|
|
543
|
|
|
545
|
|
|
546
|
|
|
547
|
|
|
Total
assets
|
|
17,617
|
|
|
17,738
|
|
|
17,060
|
|
|
16,761
|
|
|
16,288
|
|
|
Total
deposits
|
|
14,479
|
|
|
14,530
|
|
|
13,952
|
|
|
13,734
|
|
|
13,313
|
|
|
Shareholders'
equity
|
|
2,062
|
|
|
2,116
|
|
|
2,041
|
|
|
1,949
|
|
|
1,894
|
|
|
Adjusted
shareholders' equity(1)
|
|
1,907
|
|
|
1,865
|
|
|
1,826
|
|
|
1,785
|
|
|
1,740
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSET QUALITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for possible loan
losses
|
$
|
126,316
|
|
$
|
126,157
|
|
$
|
125,442
|
|
$
|
125,369
|
|
$
|
125,309
|
|
|
as a
percentage of period-end loans
|
|
1.56
|
%
|
|
1.57
|
%
|
|
1.56
|
%
|
|
1.53
|
%
|
|
1.50
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs
|
$
|
11,131
|
|
$
|
9,385
|
|
$
|
8,577
|
|
$
|
13,511
|
|
$
|
20,063
|
|
|
Annualized as
a percentage of average loans
|
|
0.55
|
%
|
|
0.46
|
%
|
|
0.42
|
%
|
|
0.66
|
%
|
|
0.94
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-accrual
loans
|
$
|
137,140
|
|
$
|
144,900
|
|
$
|
134,524
|
|
$
|
144,617
|
|
$
|
146,867
|
|
|
Foreclosed
assets
|
|
27,810
|
|
|
23,778
|
|
|
24,744
|
|
|
26,936
|
|
|
33,312
|
|
|
Total
|
$
|
164,950
|
|
$
|
168,678
|
|
$
|
159,268
|
|
$
|
171,553
|
|
$
|
180,179
|
|
|
As a
percentage of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans and
foreclosed assets
|
|
2.03
|
%
|
|
2.09
|
%
|
|
1.97
|
%
|
|
2.09
|
%
|
|
2.14
|
%
|
|
Total
assets
|
|
0.94
|
|
|
0.95
|
|
|
0.93
|
|
|
1.02
|
|
|
1.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED CAPITAL
RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 Risk-Based Capital
Ratio
|
|
13.82
|
%
|
|
13.38
|
%
|
|
13.16
|
%
|
|
12.70
|
%
|
|
11.91
|
%
|
|
Total Risk-Based Capital
Ratio
|
|
15.91
|
|
|
15.46
|
|
|
15.52
|
|
|
15.05
|
|
|
14.19
|
|
|
Leverage Ratio
|
|
8.68
|
|
|
8.67
|
|
|
8.80
|
|
|
8.70
|
|
|
8.50
|
|
|
Equity to Assets Ratio
(period-end)
|
|
11.70
|
|
|
11.93
|
|
|
11.96
|
|
|
11.63
|
|
|
11.63
|
|
|
Equity to Assets Ratio
(average)
|
|
11.84
|
|
|
11.90
|
|
|
11.79
|
|
|
11.65
|
|
|
11.69
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Shareholders' equity
excluding accumulated other comprehensive income (loss).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cullen/Frost
Bankers, Inc.
|
|
CONSOLIDATED
FINANCIAL SUMMARY (UNAUDITED)
|
|
(In
thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31
|
|
|
|
|
2010
|
|
|
2009
|
|
|
2008
|
|
|
2007
|
|
|
2006
|
|
|
CONDENSED INCOME
STATEMENTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
$
|
563,459
|
|
$
|
536,679
|
|
$
|
534,025
|
|
$
|
518,737
|
|
$
|
469,163
|
|
|
Net interest
income(1)
|
|
616,319
|
|
|
577,716
|
|
|
554,353
|
|
|
534,195
|
|
|
479,138
|
|
|
Provision for possible loan
losses
|
|
43,611
|
|
|
65,392
|
|
|
37,823
|
|
|
14,660
|
|
|
14,150
|
|
|
Non-interest income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trust fees
|
|
68,428
|
|
|
67,268
|
|
|
74,554
|
|
|
70,359
|
|
|
63,469
|
|
|
|
Service charges on deposit
accounts
|
|
98,796
|
|
|
102,474
|
|
|
87,566
|
|
|
80,718
|
|
|
77,116
|
|
|
|
Insurance commissions and
fees
|
|
34,015
|
|
|
33,096
|
|
|
32,904
|
|
|
30,847
|
|
|
28,230
|
|
|
|
Other charges, commissions and
fees
|
|
30,452
|
|
|
27,699
|
|
|
35,557
|
|
|
32,558
|
|
|
28,105
|
|
|
|
Net gain (loss) on securities
transactions
|
|
6
|
|
|
(1,260)
|
|
|
(159)
|
|
|
15
|
|
|
(1)
|
|
|
|
Other
|
|
50,336
|
|
|
64,429
|
|
|
56,900
|
|
|
53,734
|
|
|
43,828
|
|
|
|
Total non-interest
income
|
|
282,033
|
|
|
293,706
|
|
|
287,322
|
|
|
268,231
|
|
|
240,747
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and wages
|
|
239,589
|
|
|
230,643
|
|
|
225,943
|
|
|
209,982
|
|
|
190,784
|
|
|
|
Employee benefits
|
|
52,352
|
|
|
55,224
|
|
|
47,219
|
|
|
47,095
|
|
|
46,231
|
|
|
|
Net occupancy
|
|
46,166
|
|
|
44,188
|
|
|
40,464
|
|
|
38,824
|
|
|
34,695
|
|
|
|
Furniture and
equipment
|
|
47,651
|
|
|
44,223
|
|
|
37,799
|
|
|
32,821
|
|
|
26,293
|
|
|
|
Deposit insurance
|
|
20,451
|
|
|
25,812
|
|
|
4,597
|
|
|
1,220
|
|
|
1,162
|
|
|
|
Intangible
amortization
|
|
5,125
|
|
|
6,537
|
|
|
7,906
|
|
|
8,860
|
|
|
5,628
|
|
|
|
Other
|
|
124,207
|
|
|
125,611
|
|
|
122,717
|
|
|
123,644
|
|
|
105,560
|
|
|
|
Total non-interest
expense
|
|
535,541
|
|
|
532,238
|
|
|
486,645
|
|
|
462,446
|
|
|
410,353
|
|
|
Income before income
taxes
|
|
266,340
|
|
|
232,755
|
|
|
296,879
|
|
|
309,862
|
|
|
285,407
|
|
|
Income taxes
|
|
57,576
|
|
|
53,721
|
|
|
89,624
|
|
|
97,791
|
|
|
91,816
|
|
|
Net income
|
$
|
208,764
|
|
$
|
179,034
|
|
$
|
207,255
|
|
$
|
212,071
|
|
$
|
193,591
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PER SHARE DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income - basic
|
$
|
3.44
|
|
$
|
3.00
|
|
$
|
3.51
|
|
$
|
3.59
|
|
$
|
3.48
|
|
|
Net income - diluted
|
|
3.44
|
|
|
3.00
|
|
|
3.50
|
|
|
3.57
|
|
|
3.44
|
|
|
Cash dividends
|
|
1.78
|
|
|
1.71
|
|
|
1.66
|
|
|
1.54
|
|
|
1.32
|
|
|
Book value
|
|
33.74
|
|
|
31.55
|
|
|
29.68
|
|
|
25.18
|
|
|
23.01
|
|
|
|
|
OUTSTANDING SHARES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end shares
|
|
61,108
|
|
|
60,038
|
|
|
59,416
|
|
|
58,662
|
|
|
59,839
|
|
|
Weighted-average shares -
basic
|
|
60,411
|
|
|
59,456
|
|
|
58,846
|
|
|
58,952
|
|
|
55,467
|
|
|
Dilutive effect of stock
compensation
|
|
175
|
|
|
58
|
|
|
324
|
|
|
645
|
|
|
1,043
|
|
|
Weighted-average shares -
diluted
|
|
60,586
|
|
|
59,514
|
|
|
59,170
|
|
|
59,597
|
|
|
56,510
|
|
|
|
|
SELECTED ANNUALIZED
RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
|
1.21
|
%
|
|
1.14
|
%
|
|
1.51
|
%
|
|
1.63
|
%
|
|
1.67
|
%
|
|
Return on average
equity
|
|
10.30
|
|
|
9.78
|
|
|
13.11
|
|
|
15.20
|
|
|
18.03
|
|
|
Net interest income to average
earning assets(1)
|
|
4.08
|
|
|
4.23
|
|
|
4.67
|
|
|
4.69
|
|
|
4.67
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Taxable-equivalent basis
assuming a 35% tax rate.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cullen/Frost
Bankers, Inc.
|
|
CONSOLIDATED
FINANCIAL SUMMARY (UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31
|
|
|
|
|
2010
|
|
|
2009
|
|
|
2008
|
|
|
2007
|
|
|
2006
|
|
|
BALANCE SHEET SUMMARY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Balance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
$
|
8,125
|
|
$
|
8,653
|
|
$
|
8,314
|
|
$
|
7,464
|
|
$
|
6,524
|
|
|
|
Earning assets
|
|
15,333
|
|
|
13,804
|
|
|
11,868
|
|
|
11,340
|
|
|
10,203
|
|
|
|
Total assets
|
|
17,187
|
|
|
15,702
|
|
|
13,685
|
|
|
13,042
|
|
|
11,581
|
|
|
|
Non-interest-bearing demand
deposits
|
|
5,024
|
|
|
4,259
|
|
|
3,615
|
|
|
3,524
|
|
|
3,334
|
|
|
|
Interest bearing
deposits
|
|
9,024
|
|
|
8,161
|
|
|
6,916
|
|
|
6,689
|
|
|
5,850
|
|
|
|
Total deposits
|
|
14,048
|
|
|
12,420
|
|
|
10,531
|
|
|
10,213
|
|
|
9,184
|
|
|
|
Shareholders' equity
|
|
2,028
|
|
|
1,831
|
|
|
1,580
|
|
|
1,395
|
|
|
1,074
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-End Balance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
$
|
8,117
|
|
$
|
8,368
|
|
$
|
8,844
|
|
$
|
7,769
|
|
$
|
7,373
|
|
|
|
Earning assets
|
|
15,806
|
|
|
14,437
|
|
|
13,001
|
|
|
11,556
|
|
|
11,461
|
|
|
|
Goodwill and intangible
assets
|
|
542
|
|
|
547
|
|
|
551
|
|
|
558
|
|
|
563
|
|
|
|
Total assets
|
|
17,617
|
|
|
16,288
|
|
|
15,034
|
|
|
13,485
|
|
|
13,224
|
|
|
|
Total deposits
|
|
14,479
|
|
|
13,313
|
|
|
11,509
|
|
|
10,530
|
|
|
10,388
|
|
|
|
Shareholders' equity
|
|
2,062
|
|
|
1,894
|
|
|
1,764
|
|
|
1,477
|
|
|
1,377
|
|
|
|
Adjusted shareholders'
equity(1)
|
|
1,907
|
|
|
1,740
|
|
|
1,626
|
|
|
1,484
|
|
|
1,432
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSET QUALITY
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($ in thousands)
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Allowance for possible loan
losses
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$
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126,316
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$
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125,309
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$
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110,244
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$
|
92,339
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$
|
96,085
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As a percentage of period-end
loans
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1.56
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%
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|
1.50
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%
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|
1.25
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%
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1.19
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%
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1.30
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%
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|
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Net charge-offs:
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$
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42,604
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$
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50,327
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$
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19,918
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$
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18,406
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$
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11,110
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As a percentage of average
loans
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0.52
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%
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|
0.58
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%
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|
0.24
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%
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0.25
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%
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0.17
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%
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Non-performing
assets:
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Non-accrual loans
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$
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137,140
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$
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146,867
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$
|
65,174
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$
|
24,443
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$
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52,204
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Foreclosed assets
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27,810
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33,312
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|
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12,866
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|
|
5,406
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|
5,545
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Total
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$
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164,950
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$
|
180,179
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$
|
78,040
|
|
$
|
29,849
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|
$
|
57,749
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As a percentage of:
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Total loans and foreclosed
assets
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2.03
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%
|
|
2.14
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%
|
|
0.88
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%
|
|
0.38
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%
|
|
0.78
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%
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|
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Total assets
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|
0.94
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|
|
1.11
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|
|
0.52
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|
|
0.22
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|
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0.44
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|
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(1) Shareholders'
equity excluding accumulated
other comprehensive income (loss).
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SOURCE Cullen/Frost Bankers, Inc.