SAN ANTONIO, July 27, 2011 /PRNewswire/ -- 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 and increase revenue in a challenging economic
and regulatory environment.
(Logo:
http://photos.prnewswire.com/prnh/20030109/CFRLOGO)
Cullen/Frost reported net income for the second quarter of 2011
of $55.7 million, a 5.3 percent
increase over second quarter 2010 earnings of $52.9 million. On a per-share basis, income was
$0.91 per diluted common share,
compared to $0.87 per diluted common
share reported a year earlier. Returns on average assets and equity
were 1.23 percent and 10.45 percent respectively, compared to 1.26
percent and 10.67 percent for the same period a year
earlier.
"Our company's strong performance this quarter reflects our
ability to operate well in a slowly recovering economy," said
Dick Evans, Cullen/Frost chairman
and CEO. "I was very pleased to see net income for the quarter rise
to the second-highest level in company history and the best since
the third quarter of 2007, which was before the financial crisis
began. We continue to provide outstanding value to our customers,
affirmed by the solid 7.4 percent growth in deposits and an 11.4
percent increase in trust income this quarter.
"Even as an ongoing lack of confidence among business owners
continues to pressure lending, we are building new relationships
and growing deposits through our focused and disciplined calling
effort. Since the second quarter last year, much of our deposit
growth came from new customers.
"New customer loans enabled us to maintain loan consistency,
positioning us for stronger growth when confidence returns. Texans
who trust our company's safety and soundness and respond to our
value proposition continue to bring their money and their business
to Frost.
"We are fortunate to be in Texas, which accounted for 43 percent of all
net new jobs in the U.S. from June
2009 to May 2011," said Evans. "Projected job growth in
Texas this year is 3 to 3.5
percent, a full 1.5 percent ahead of the nation, and unemployment
remains a percentage point below the national average. With strong
energy and high-tech sectors and stable housing markets that didn't
go through boom-and-bust cycles, Texas continues to be one of the country's
strongest states.
"As you know, the banking industry is facing far-reaching
regulatory changes that will impact all financial institutions. At
Frost, we are tackling these changes with confidence, and I am
optimistic about our future. We believe now is an ideal time to
expand our business even further. We increased our marketing budget
and will soon launch a new campaign that underscores the Frost
difference, which should attract more prospects. Building on the
trust and respect we earned by publicly declining federal TARP
bailout funds, and reinforced by our receiving J.D. Power and
Associates' highest customer satisfaction ranking in
Texas retail banking two years in
a row, we are now sharing the Frost message with more Texans.
"Our exceptional employees continue to add value to customers'
relationships and provide an extraordinarily high level of service.
I appreciate their continued commitment to our company and our
culture," Evans continued.
For the second quarter of 2011, average total deposits were
$14.8 billion, up 7.4 percent, or
$1.0 billion, over the $13.8 billion reported for the second quarter a
year ago. Average total loans for the quarter were $8.1 billion, flat compared to last year's second
quarter.
For the first six months of 2011, net income was $107.6 million, or $1.75 per diluted common share, compared to
$100.7 million, or $1.66 per diluted common share, for the first six
months of 2010. Returns on average assets and average equity for
the first six months of 2011 were 1.21 percent and 10.29 percent,
respectively, compared to 1.22 percent and 10.38 percent for the
same period in 2010.
Other noted financial data for the second quarter follows:
- Tier 1 and Total Risk-Based Capital Ratios remained strong at
14.37 percent and 16.42 percent, respectively, at the end of the
second quarter of 2011 and are in excess of well capitalized
levels. The tangible common equity ratio was 9.12 percent at the
end of the second quarter of 2011 compared to 9.05 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 increased
$4.5 million, or 2.9 percent, to $159.5 million, from the $155.1 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. The net
interest margin was 3.95 percent for the second quarter, compared
to 4.03 percent for the first quarter this year and 4.18 percent
for the second quarter of 2010.
- Non-interest income for the second quarter of 2011 was
$70.8 million, compared to the
$69.9 million reported a year
earlier. Trust fees were $19.0
million, up $1.9 million, or
11.4 percent, compared to $17.0
million in the second quarter 2010. Impacting trust fees was
a $1.8 million increase in investment
fees, which are generally assessed based on the market value of
trust assets that are managed and held in custody. These
values were $25.3 billion at the end
of the second quarter of 2011, compared to $22.2 billion at June 30,
2010. Other service charges and fees were $8.5 million, up $449,000, or 5.6 percent, when compared to
$8.0 million reported in the same
quarter a year earlier. The largest component of this increase was
mutual fund management fees, up $400,000. Insurance commissions and fees
were $7.9 million, up $396,000, from the $7.5
million reported in last year's second quarter. Deposit
service charges were down $1.3
million, or 5.2 percent, due to decreases in
overdrafts/insufficient funds charges on both consumer and
commercial accounts.
- Non-interest expense for the quarter was $136.8 million, an increase of $2.1 million and a rise of 1.6 percent, compared
to the $134.7 million reported for
the second quarter of last year. Total salaries rose $2.9 million or 5.0 percent, to $61.8 million and were impacted by normal annual
merit increases. Employee benefits were up $375,000, or 3.0 percent. Furniture and fixtures
increased $966,000, or 8.3 percent,
from the same quarter last year, with most of the increase coming
from software maintenance and amortized software. Other
non-interest expense increased $691,000, or 2.1 percent, from a year earlier,
primarily from increased advertising and brand promotion expense.
This increase was partially offset by decreases in sundry losses
from miscellaneous items. Deposit insurance expense for the quarter
was $2.6 million, down $2.8 million from the second quarter of 2010. The
decrease was related to a change in the deposit insurance
assessment base and a change in the method by which the assessment
rate is determined for large financial institutions.
- For the second quarter of 2011, the provision for possible loan
losses was $9.0 million, compared to
net charge-offs of $10.6 million. The
loan loss provision for the second quarter of 2010 was $8.7 million, compared to net charge-offs of
$8.6 million. Non-performing assets
for the second quarter of 2011 were $161.4
million, compared to $154.7
million last quarter and $159.3
million a year earlier. The allowance for possible loan
losses as a percentage of loans at June 30,
2011 was 1.52 percent, compared to 1.56 percent at the end
of the second quarter of 2010.
Cullen/Frost Bankers, Inc. will host a conference call on
Wednesday, July 27, 2011, 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 p.m. CT until
midnight Sunday, July 31, 2011, at 1-800-642-1687 or
1-706-645-9291 for international calls, with Conference ID #
83758312. The call will also be available by webcast at the URL
listed below and available for playback after 2 p.m. CT. After entering the website,
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 $18.5 billion in
assets at June 30, 2011 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.
- 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)
|
|
|
|
|
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
2nd
Qtr
|
|
|
1st
Qtr
|
|
|
4th
Qtr
|
|
|
3rd
Qtr
|
|
|
2nd
Qtr
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED INCOME
STATEMENTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
$
|
144,333
|
|
$
|
141,759
|
|
$
|
141,563
|
|
$
|
142,416
|
|
$
|
141,896
|
|
|
Net interest
income(1)
|
|
159,509
|
|
|
156,638
|
|
|
155,221
|
|
|
155,702
|
|
|
155,054
|
|
|
Provision for possible loan
losses
|
|
8,985
|
|
|
9,450
|
|
|
11,290
|
|
|
10,100
|
|
|
8,650
|
|
|
Non-interest income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trust fees
|
|
18,976
|
|
|
18,220
|
|
|
17,399
|
|
|
17,029
|
|
|
17,037
|
|
|
Service charges on deposit
accounts
|
|
23,619
|
|
|
23,368
|
|
|
24,082
|
|
|
24,980
|
|
|
24,925
|
|
|
Insurance commissions and
fees
|
|
7,908
|
|
|
10,494
|
|
|
6,777
|
|
|
8,588
|
|
|
7,512
|
|
|
Other charges, commissions
and fees
|
|
8,478
|
|
|
8,759
|
|
|
7,796
|
|
|
7,708
|
|
|
8,029
|
|
|
Net gain (loss) on
securities transactions
|
|
--
|
|
|
5
|
|
|
--
|
|
|
--
|
|
|
1
|
|
|
Other
|
|
11,811
|
|
|
11,487
|
|
|
14,224
|
|
|
12,125
|
|
|
12,428
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-interest
income
|
|
70,792
|
|
|
72,333
|
|
|
70,278
|
|
|
70,430
|
|
|
69,932
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and
wages
|
|
61,775
|
|
|
62,430
|
|
|
60,744
|
|
|
59,743
|
|
|
58,827
|
|
|
Employee
benefits
|
|
13,050
|
|
|
15,311
|
|
|
12,458
|
|
|
12,698
|
|
|
12,675
|
|
|
Net occupancy
|
|
11,823
|
|
|
11,652
|
|
|
11,197
|
|
|
12,197
|
|
|
11,637
|
|
|
Furniture and
equipment
|
|
12,628
|
|
|
12,281
|
|
|
12,335
|
|
|
12,165
|
|
|
11,662
|
|
|
Deposit
insurance
|
|
2,598
|
|
|
4,760
|
|
|
4,918
|
|
|
4,661
|
|
|
5,429
|
|
|
Intangible
amortization
|
|
1,107
|
|
|
1,120
|
|
|
1,217
|
|
|
1,276
|
|
|
1,299
|
|
|
Other
|
|
33,816
|
|
|
32,507
|
|
|
30,872
|
|
|
29,812
|
|
|
33,125
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-interest
expense
|
|
136,797
|
|
|
140,061
|
|
|
133,741
|
|
|
132,552
|
|
|
134,654
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
69,343
|
|
|
64,581
|
|
|
66,810
|
|
|
70,194
|
|
|
68,524
|
|
|
Income taxes
|
|
13,657
|
|
|
12,653
|
|
|
13,759
|
|
|
15,199
|
|
|
15,624
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
|
55,686
|
|
$
|
51,928
|
|
$
|
53,051
|
|
$
|
54,995
|
|
$
|
52,900
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PER SHARE DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income - basic
|
$
|
0.91
|
|
$
|
0.85
|
|
$
|
0.87
|
|
$
|
0.90
|
|
$
|
0.87
|
|
|
Net income - diluted
|
|
0.91
|
|
|
0.85
|
|
|
0.87
|
|
|
0.90
|
|
|
0.87
|
|
|
Cash dividends
|
|
0.46
|
|
|
0.45
|
|
|
0.45
|
|
|
0.45
|
|
|
0.45
|
|
|
Book value at end of
quarter
|
|
35.54
|
|
|
34.25
|
|
|
33.74
|
|
|
34.78
|
|
|
33.65
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OUTSTANDING SHARES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end shares
|
|
61,245
|
|
|
61,242
|
|
|
61,108
|
|
|
60,836
|
|
|
60,656
|
|
|
Weighted-average shares -
basic
|
|
61,094
|
|
|
61,018
|
|
|
60,772
|
|
|
60,524
|
|
|
60,365
|
|
|
Dilutive effect of stock
compensation
|
|
297
|
|
|
316
|
|
|
176
|
|
|
141
|
|
|
199
|
|
|
Weighted-average shares -
diluted
|
|
61,391
|
|
|
61,334
|
|
|
60,948
|
|
|
60,665
|
|
|
60,564
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED ANNUALIZED
RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
|
1.23
|
%
|
|
1.19
|
%
|
|
1.18
|
%
|
|
1.25
|
%
|
|
1.26
|
%
|
|
Return on average
equity
|
|
10.45
|
|
|
10.11
|
|
|
9.96
|
|
|
10.49
|
|
|
10.67
|
|
|
Net interest income to average
earning assets(1)
|
|
3.95
|
|
|
4.03
|
|
|
3.93
|
|
|
4.04
|
|
|
4.18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Taxable-equivalent basis
assuming a 35% tax rate.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cullen/Frost
Bankers, Inc.
|
|
CONSOLIDATED
FINANCIAL SUMMARY (UNAUDITED)
|
|
|
|
|
|
2011
|
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
2nd
Qtr
|
|
|
1st
Qtr
|
|
|
4th
Qtr
|
|
|
3rd
Qtr
|
|
|
2nd
Qtr
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BALANCE SHEET SUMMARY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Balance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
$
|
8,080
|
|
$
|
8,081
|
|
$
|
8,033
|
|
$
|
8,058
|
|
$
|
8,142
|
|
|
Earning
assets
|
|
16,356
|
|
|
15,822
|
|
|
15,953
|
|
|
15,590
|
|
|
15,071
|
|
|
Total
assets
|
|
18,170
|
|
|
17,678
|
|
|
17,855
|
|
|
17,470
|
|
|
16,872
|
|
|
Non-interest-bearing
demand deposits
|
|
5,464
|
|
|
5,248
|
|
|
5,371
|
|
|
5,125
|
|
|
4,906
|
|
|
Interest-bearing
deposits
|
|
9,379
|
|
|
9,221
|
|
|
9,264
|
|
|
9,166
|
|
|
8,911
|
|
|
Total
deposits
|
|
14,843
|
|
|
14,469
|
|
|
14,635
|
|
|
14,291
|
|
|
13,817
|
|
|
Shareholders'
equity
|
|
2,137
|
|
|
2,083
|
|
|
2,114
|
|
|
2,080
|
|
|
1,989
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-End Balance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
$
|
8,068
|
|
$
|
8,025
|
|
$
|
8,117
|
|
$
|
8,053
|
|
$
|
8,066
|
|
|
Earning
assets
|
|
16,710
|
|
|
16,160
|
|
|
15,806
|
|
|
15,852
|
|
|
15,245
|
|
|
Goodwill and
intangible assets
|
|
541
|
|
|
541
|
|
|
542
|
|
|
543
|
|
|
545
|
|
|
Total
assets
|
|
18,478
|
|
|
17,942
|
|
|
17,617
|
|
|
17,738
|
|
|
17,060
|
|
|
Total
deposits
|
|
15,104
|
|
|
14,710
|
|
|
14,479
|
|
|
14,530
|
|
|
13,952
|
|
|
Shareholders'
equity
|
|
2,177
|
|
|
2,097
|
|
|
2,062
|
|
|
2,116
|
|
|
2,041
|
|
|
Adjusted
shareholders' equity(1)
|
|
1,974
|
|
|
1,943
|
|
|
1,907
|
|
|
1,865
|
|
|
1,826
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSET QUALITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for possible loan
losses
|
$
|
122,741
|
|
$
|
124,321
|
|
$
|
126,316
|
|
$
|
126,157
|
|
$
|
125,442
|
|
|
as a
percentage of period-end loans
|
|
1.52
|
%
|
|
1.55
|
%
|
|
1.56
|
%
|
|
1.57
|
%
|
|
1.56
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs:
|
$
|
10,565
|
|
$
|
11,445
|
|
$
|
11,131
|
|
$
|
9,385
|
|
$
|
8,577
|
|
|
Annualized as
a percentage of average loans
|
|
0.52
|
%
|
|
0.57
|
%
|
|
0.55
|
%
|
|
0.46
|
%
|
|
0.42
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-accrual
loans
|
$
|
130,528
|
|
$
|
123,811
|
|
$
|
137,140
|
|
$
|
144,900
|
|
$
|
134,524
|
|
|
Foreclosed
assets
|
|
30,822
|
|
|
30,892
|
|
|
27,810
|
|
|
23,778
|
|
|
24,744
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
$
|
161,350
|
|
$
|
154,703
|
|
$
|
164,950
|
|
$
|
168,678
|
|
$
|
159,268
|
|
|
As a percentage
of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
and foreclosed assets
|
|
1.99
|
%
|
|
1.92
|
%
|
|
2.03
|
%
|
|
2.09
|
%
|
|
1.97
|
%
|
|
Total
assets
|
|
0.87
|
|
|
0.86
|
|
|
0.94
|
|
|
0.95
|
|
|
0.93
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED CAPITAL
RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 Risk-Based Capital
Ratio
|
|
14.37
|
%
|
|
14.22
|
%
|
|
13.82
|
%
|
|
13.38
|
%
|
|
13.16
|
%
|
|
Total Risk-Based Capital
Ratio
|
|
16.42
|
|
|
16.31
|
|
|
15.91
|
|
|
15.46
|
|
|
15.52
|
|
|
Leverage Ratio
|
|
8.94
|
|
|
8.99
|
|
|
8.68
|
|
|
8.67
|
|
|
8.80
|
|
|
Equity to Assets Ratio
(period-end)
|
|
11.78
|
|
|
11.69
|
|
|
11.70
|
|
|
11.93
|
|
|
11.96
|
|
|
Equity to Assets Ratio
(average)
|
|
11.76
|
|
|
11.78
|
|
|
11.84
|
|
|
11.90
|
|
|
11.79
|
|
|
|
|
(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,
|
|
|
|
|
|
|
|
|
|
|
|
2011
|
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED INCOME
STATEMENTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
|
$
|
286,092
|
|
$
|
279,480
|
|
|
Net interest
income(1)
|
|
|
316,146
|
|
|
305,397
|
|
|
Provision for possible loan
losses
|
|
|
18,435
|
|
|
22,221
|
|
|
Non-interest income:
|
|
|
|
|
|
|
|
|
|
Trust fees
|
|
|
37,196
|
|
|
34,000
|
|
|
|
Service charges on deposit
accounts
|
|
|
46,987
|
|
|
49,734
|
|
|
|
Insurance commissions and
fees
|
|
|
18,402
|
|
|
18,650
|
|
|
|
Other charges, commissions and
fees
|
|
|
17,237
|
|
|
14,948
|
|
|
|
Net gain (loss) securities
transactions
|
|
|
5
|
|
|
6
|
|
|
|
Other
|
|
|
23,298
|
|
|
23,987
|
|
|
|
|
|
|
|
|
|
|
|
Total non-interest
income
|
|
|
143,125
|
|
|
141,325
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest expense:
|
|
|
|
|
|
|
|
|
|
Salaries and wages
|
|
|
124,205
|
|
|
119,102
|
|
|
|
Employee benefits
|
|
|
28,361
|
|
|
27,196
|
|
|
|
Net occupancy
|
|
|
23,475
|
|
|
22,772
|
|
|
|
Furniture and
equipment
|
|
|
24,909
|
|
|
23,151
|
|
|
|
Deposit insurance
|
|
|
7,358
|
|
|
10,872
|
|
|
|
Intangible
amortization
|
|
|
2,227
|
|
|
2,632
|
|
|
|
Other
|
|
|
66,323
|
|
|
63,523
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-interest
expense
|
|
|
276,858
|
|
|
269,248
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
|
133,924
|
|
|
129,336
|
|
|
Income taxes
|
|
|
26,310
|
|
|
28,618
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
107,614
|
|
$
|
100,718
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PER SHARE DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income – basic
|
|
$
|
1.76
|
|
$
|
1.67
|
|
|
Net income – diluted
|
|
|
1.75
|
|
|
1.66
|
|
|
Cash dividends
|
|
|
0.91
|
|
|
0.88
|
|
|
Book value at end of
period
|
|
|
35.54
|
|
|
33.65
|
|
|
|
|
|
|
|
|
|
|
|
|
OUTSTANDING SHARES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end shares
|
|
|
61,245
|
|
|
60,656
|
|
|
Weighted-average shares -
basic
|
|
|
61,056
|
|
|
60,170
|
|
|
Dilutive effect of stock
compensation
|
|
|
307
|
|
|
195
|
|
|
Weighted-average shares -
diluted
|
|
|
61,363
|
|
|
60,365
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED ANNUALIZED
RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
|
|
1.21
|
%
|
|
1.22
|
%
|
|
Return on average
equity
|
|
|
10.29
|
|
|
10.38
|
|
|
Net interest income to average
earning assets(1)
|
|
|
3.99
|
|
|
4.18
|
|
|
|
|
(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,
|
|
|
|
|
|
|
|
|
|
|
|
2011
|
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
BALANCE SHEET SUMMARY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in
millions)
|
|
|
|
|
|
|
|
|
Average Balance:
|
|
|
|
|
|
|
|
|
|
Loans
|
|
$
|
8,081
|
|
$
|
8,206
|
|
|
|
Earning assets
|
|
|
16,091
|
|
|
14,888
|
|
|
|
Total assets
|
|
|
17,926
|
|
|
16,702
|
|
|
|
Non-interest-bearing demand
deposits
|
|
|
5,356
|
|
|
4,796
|
|
|
|
Interest-bearing
deposits
|
|
|
9,301
|
|
|
8,858
|
|
|
|
Total deposits
|
|
|
14,657
|
|
|
13,654
|
|
|
|
Shareholders' equity
|
|
|
2,110
|
|
|
1,957
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-End Balance:
|
|
|
|
|
|
|
|
|
|
Loans
|
|
$
|
8,068
|
|
$
|
8,066
|
|
|
|
Earning assets
|
|
|
16,710
|
|
|
15,245
|
|
|
|
Goodwill and intangible
assets
|
|
|
541
|
|
|
545
|
|
|
|
Total assets
|
|
|
18,478
|
|
|
17,060
|
|
|
|
Total deposits
|
|
|
15,104
|
|
|
13,952
|
|
|
|
Shareholders' equity
|
|
|
2,177
|
|
|
2,041
|
|
|
|
Adjusted shareholders'
equity(1)
|
|
|
1,974
|
|
|
1,825
|
|
|
|
|
|
|
|
|
|
|
|
ASSET QUALITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in thousands)
|
|
|
|
|
|
|
|
|
Allowance for possible loan
losses
|
|
$
|
122,741
|
|
$
|
125,442
|
|
|
|
|
As a percentage of period-end
loans
|
|
|
1.52
|
%
|
|
1.56
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs:
|
|
$
|
22,010
|
|
$
|
22,088
|
|
|
|
|
Annualized as a percentage of
average loans
|
|
|
0.55
|
%
|
|
0.54
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing
assets:
|
|
|
|
|
|
|
|
|
|
Non-accrual loans
|
|
$
|
130,528
|
|
$
|
134,524
|
|
|
|
Foreclosed assets
|
|
|
30,822
|
|
|
24,744
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
161,350
|
|
$
|
159,268
|
|
|
|
As a percentage of:
|
|
|
|
|
|
|
|
|
|
|
Total loans and foreclosed
assets
|
|
|
1.99
|
%
|
|
1.97
|
%
|
|
|
|
Total assets
|
|
|
0.87
|
|
|
0.93
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED CAPITAL
RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 Risk-Based Capital
Ratio
|
|
|
14.37
|
%
|
|
13.16
|
%
|
|
|
Total Risk-Based Capital
Ratio
|
|
|
16.42
|
|
|
15.52
|
|
|
|
Leverage Ratio
|
|
|
8.94
|
|
|
8.80
|
|
|
|
Equity to Assets Ratio
(period-end)
|
|
|
11.78
|
|
|
11.96
|
|
|
|
Equity to Assets Ratio
(average)
|
|
|
11.77
|
|
|
11.72
|
|
|
|
|
(1)
Shareholders' equity excluding
accumulated other comprehensive income (loss).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Cullen/Frost Bankers, Inc.