SAN ANTONIO, Oct. 26, 2011 /PRNewswire/ -- Cullen/Frost
Bankers, Inc. (NYSE: CFR) today released results for the third
quarter of 2011, reporting that the Texas financial services leader continues to
operate well in an ongoing environment of sluggish economic growth
and low interest rates.
(Logo: http://photos.prnewswire.com/prnh/20030109/CFRLOGO)
Cullen/Frost's net income for the third quarter of 2011 was
$54.5 million, or $.89 per diluted common share, compared to third
quarter 2010 earnings of $55.0
million, or $.90 per diluted
common share. Returns on average assets and equity for the third
quarter of 2011 were 1.15 percent and 9.79 percent, respectively,
compared to 1.25 percent and 10.49 percent for the same period of
2010.
The provision for loan losses was $9.0
million, compared to $10.1
million reported a year earlier, while the allowance for
loan losses as a percentage of loans decreased to 1.43 percent from
1.57 percent for the same quarter of 2010.
For the third quarter of 2011, net interest income on a
tax-equivalent basis increased 3.1 percent to $160.6 million, compared to the $155.7 million reported for the same quarter of
2010. Average deposits for the quarter were $15.4 billion, an increase of $586 million over the previous quarter, and
$1.1 billion over the $14.3 billion reported for the third quarter of
2010. Average loans for the third quarter of 2011 were $8.0 billion, down $22
million compared to the $8.1
billion reported for the third quarter a year earlier, and
down $44 million compared to the
$8.1 billion reported in the second
quarter.
"Cullen/Frost continues to produce steady results in a
challenging economy and extended low interest rate environment,"
said CEO Dick Evans. "I was pleased
to see strong growth in trust fees, the majority of it from
investment fees. We saw solid increases in both net interest income
and non-interest income for the quarter. The response to our
company's value proposition since the financial crisis began in
2008 has been gratifying, validating our way of doing business, as
customers come to understand the Frost difference. In fact, average
deposits have grown almost $5.0
billion over the last 12 consecutive quarters.
"In a lending environment that remains challenging, with
individuals and businesses remaining cautious and paying down debt,
we continue to add relationships. We are seeing the result of our
disciplined calling and team selling efforts in the expansion of
our customer base, which should drive our future growth.
"Frost opened three new financial centers during the third
quarter, including locations in the Rice
Village and River Oaks
areas in Houston, and one location
in Cedar Park in South Austin. In late September, our
investment advisory, Frost Investment Advisors, launched the Frost
Natural Resources Fund, adding another strategy to the firm's
mutual fund family.
"The Texas markets Frost serves
are some of the strongest in the U.S., and the state continues to
grow jobs at a higher rate than the nation. The overall economy
remains sluggish, however, and the recovery has flattened," said
Evans. "Our credit quality levels are manageable, capital levels
remain very strong, and we have money to lend.
"It has been three years since Cullen/Frost turned down TARP
bailout funds, and we continue to believe that this was among the
best decisions in our 143-year history," Evans said. "This decision
allowed us to pursue a laser-like focus on building our business.
In addition, we have consistently paid a shareholder dividend and,
in fact, have increased the dividend annually for the past 17
years.
"As always, it is our people who make Cullen/Frost's success
possible. They provide the human capital that makes our business
work, and they are doing a great job of helping us take advantage
of the opportunities we have seen in this recession. I appreciate
their continued efforts to help our company grow," Evans said.
During the quarter, the company corrected an under-accrual of
taxes from incorrectly deducting premium amortization on municipal
bonds since 2008. This resulted in the unusually high effective tax
rate in the third quarter of 30.3 percent. As a result, the
Corporation recognized additional income tax expense totaling
$6.0 million. This was offset,
in part, by a $4.2 million after-tax
net gain on the sale of $32.6 million
in long duration municipal securities during the quarter.
For the first nine months of 2011, earnings were $162.1 million, up 4.1 percent, compared to
$155.7 million reported for the same
period of 2010. On a per-share basis, earnings for the year to date
were $2.64 per diluted common share,
compared to $2.57 per diluted common
share for the same period in 2010. Returns on average assets and
equity for the first nine months of 2011 were 1.19 percent and
10.11 percent respectively, compared to 1.23 percent and 10.42
percent for the same period a year earlier.
Noted financial data for the third quarter of 2011 follows.
- Tier 1 and Total Risk-Based Capital Ratios for the Corporation
at the end of the third quarter of 2011 were 14.59 percent and
16.57 percent, respectively, and continue to be in excess of well
capitalized levels. The tangible common equity ratio was 9.01
percent at the end of the third quarter of 2011 compared to 9.15
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 third
quarter of 2011 totaled $160.6
million, an increase of 3.1 percent compared to $155.7 million for the same period a year ago.
This increase resulted primarily from an increase in the average
volume of earning assets and was partly offset by a decrease in the
net interest margin. Strong growth in deposits has helped to fund
the increase in earning assets. The net interest margin was 3.81
percent for the third quarter of 2011, compared to 4.04 percent for
the third quarter of 2010, and 3.95 percent for the second quarter
of 2011.
- Non-interest income for the third quarter of 2011 totaled
$79.2 million, an increase of
$8.8 million compared to $70.4 million reported for the third quarter of
2010. This included a $6.4 million
pre-tax gain on the sale of $32.6
million in long-duration municipal securities. Without
this gain, non-interest income would have been up $2.4 million from the third quarter last year.
Trust fees rose $1.4 million to
$18.4 million, compared to
$17.0 million for the third quarter
of 2010, with most of the increase resulting from investment fees.
Insurance commissions and fees were up $1.0
million, mainly due to higher benefits commissions of
$736,000 that were impacted, in part,
by the acquisition of Clark Benefit Group in May 2011 ($243,000).
- Non-interest expense was $137.4
million for the quarter, up $4.9
million, or 3.7 percent, compared to the $132.6 million reported for the third quarter a
year earlier. Total salaries rose $2.0
million, or 3.3 percent, to $61.7
million, and were impacted by normal annual merit increases.
Employee benefits were down $694,000,
primarily related to decreases in expenses from the Corporation's
retirement plan (down $678,000).
Furniture and equipment expense was $13.1
million, up $941,000 from the
same quarter last year. This increase occurred due to increases in
software maintenance and amortization expenses primarily for
software placed into service in 2010. Other expenses increased
$5.0 million from the third quarter
last year. The most significant components of this increase were
$2.2 million in advertising and brand
promotion expense and $3.0 million in
various and sundry losses which included a $1.4 million write-down related to an interest in
a limited partnership and $1.3
million in losses on the sale/write-down of foreclosed
assets. Deposit insurance expense was down $2.1 million to $2.6 million compared to the
third quarter of last year. 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 third quarter of 2011, the provision for loan losses
was $9.0 million, compared to net
charge-offs of $16.3 million.
For the third quarter of 2010, the provision for loan losses
was $10.1 million, compared to net
charge-offs of $9.4 million.
The allowance for loan losses as a percentage of total
loans was 1.43 percent at September 30,
2011, compared to 1.57 percent at the end of the third
quarter last year and 1.52 percent at the end of the second quarter
of 2011. Non-performing assets decreased to $139.3 million at the end of the third quarter,
down from $161.4 million last
quarter-end and $168.7 million at
last year's third quarter.
Cullen/Frost Bankers, Inc. will host a conference call on
Wednesday, October 26, 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 2:00 p.m. CT until midnight
Sunday, October 30, 2011 at 800-642-1687 with Conference ID
# of 19299812. 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 $19.5 billion in
assets at September 30, 2011
and 115 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
|
|
|
|
|
3rd Qtr
|
|
|
2nd Qtr
|
|
|
1st Qtr
|
|
|
4th Qtr
|
|
|
3rd Qtr
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED INCOME STATEMENTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest income
|
$
|
145,361
|
|
$
|
144,333
|
|
$
|
141,759
|
|
$
|
141,563
|
|
$
|
142,416
|
|
|
Net
interest income(1)
|
|
160,579
|
|
|
159,509
|
|
|
156,638
|
|
|
155,221
|
|
|
155,702
|
|
|
Provision for loan losses
|
|
9,010
|
|
|
8,985
|
|
|
9,450
|
|
|
11,290
|
|
|
10,100
|
|
|
Non-interest income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trust fees
|
|
18,405
|
|
|
18,976
|
|
|
18,220
|
|
|
17,399
|
|
|
17,029
|
|
|
Service charges on deposit accounts
|
|
24,306
|
|
|
23,619
|
|
|
23,368
|
|
|
24,082
|
|
|
24,980
|
|
|
Insurance commissions and fees
|
|
9,569
|
|
|
7,908
|
|
|
10,494
|
|
|
6,777
|
|
|
8,588
|
|
|
Other charges, commissions and fees
|
|
8,134
|
|
|
8,478
|
|
|
8,759
|
|
|
7,796
|
|
|
7,708
|
|
|
Net gain (loss) on securities transactions
|
|
6,409
|
|
|
--
|
|
|
5
|
|
|
--
|
|
|
--
|
|
|
Other
|
|
12,394
|
|
|
11,811
|
|
|
11,487
|
|
|
14,224
|
|
|
12,125
|
|
|
Total non-interest income
|
|
79,217
|
|
|
70,792
|
|
|
72,333
|
|
|
70,278
|
|
|
70,430
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and wages
|
|
61,697
|
|
|
61,775
|
|
|
62,430
|
|
|
60,744
|
|
|
59,743
|
|
|
Employee benefits
|
|
12,004
|
|
|
13,050
|
|
|
15,311
|
|
|
12,458
|
|
|
12,698
|
|
|
Net occupancy
|
|
12,080
|
|
|
11,823
|
|
|
11,652
|
|
|
11,197
|
|
|
12,197
|
|
|
Furniture and equipment
|
|
13,106
|
|
|
12,628
|
|
|
12,281
|
|
|
12,335
|
|
|
12,165
|
|
|
Deposit insurance
|
|
2,583
|
|
|
2,598
|
|
|
4,760
|
|
|
4,918
|
|
|
4,661
|
|
|
Intangible amortization
|
|
1,108
|
|
|
1,107
|
|
|
1,120
|
|
|
1,217
|
|
|
1,276
|
|
|
Other
|
|
34,829
|
|
|
33,816
|
|
|
32,507
|
|
|
30,872
|
|
|
29,812
|
|
|
Total non-interest expense
|
|
137,407
|
|
|
136,797
|
|
|
140,061
|
|
|
133,741
|
|
|
132,552
|
|
|
Income before income taxes
|
|
78,161
|
|
|
69,343
|
|
|
64,581
|
|
|
66,810
|
|
|
70,194
|
|
|
Income taxes
|
|
23,654
|
|
|
13,657
|
|
|
12,653
|
|
|
13,759
|
|
|
15,199
|
|
|
Net
income
|
$
|
54,507
|
|
$
|
55,686
|
|
$
|
51,928
|
|
$
|
53,051
|
|
$
|
54,995
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PER SHARE DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income – basic
|
$
|
0.89
|
|
$
|
0.91
|
|
$
|
0.85
|
|
$
|
0.87
|
|
$
|
0.90
|
|
|
Net
income - diluted
|
|
0.89
|
|
|
0.91
|
|
|
0.85
|
|
|
0.87
|
|
|
0.90
|
|
|
Cash
dividends
|
|
0.46
|
|
|
0.46
|
|
|
0.45
|
|
|
0.45
|
|
|
0.45
|
|
|
Book
value at end of quarter
|
|
36.69
|
|
|
35.54
|
|
|
34.25
|
|
|
33.74
|
|
|
34.78
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OUTSTANDING SHARES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end shares
|
|
61,245
|
|
|
61,245
|
|
|
61,242
|
|
|
61,108
|
|
|
60,836
|
|
|
Weighted-average shares - basic
|
|
61,137
|
|
|
61,094
|
|
|
61,018
|
|
|
60,772
|
|
|
60,524
|
|
|
Dilutive effect of stock compensation
|
|
102
|
|
|
297
|
|
|
316
|
|
|
176
|
|
|
141
|
|
|
Weighted-average shares - diluted
|
|
61,239
|
|
|
61,391
|
|
|
61,334
|
|
|
60,948
|
|
|
60,665
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED ANNUALIZED
RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets
|
|
1.15
|
%
|
|
1.23
|
%
|
|
1.19
|
%
|
|
1.18
|
%
|
|
1.25
|
%
|
|
Return on average equity
|
|
9.79
|
|
|
10.45
|
|
|
10.11
|
|
|
9.96
|
|
|
10.49
|
|
|
Net
interest income to average earning assets(1)
|
|
3.81
|
|
|
3.95
|
|
|
4.03
|
|
|
3.93
|
|
|
4.04
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Taxable-equivalent basis assuming a 35% tax rate.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cullen/Frost
Bankers, Inc.
|
|
|
CONSOLIDATED
FINANCIAL SUMMARY (UNAUDITED)
|
|
|
|
|
|
|
|
2011
|
|
|
2010
|
|
|
|
|
3rd Qtr
|
|
|
2nd Qtr
|
|
|
1st Qtr
|
|
|
4th Qtr
|
|
|
3rd Qtr
|
|
|
BALANCE SHEET SUMMARY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Balance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
$
|
8,036
|
|
$
|
8,080
|
|
$
|
8,081
|
|
$
|
8,033
|
|
$
|
8,058
|
|
|
Earning assets
|
|
17,053
|
|
|
16,356
|
|
|
15,822
|
|
|
15,953
|
|
|
15,590
|
|
|
Total assets
|
|
18,825
|
|
|
18,170
|
|
|
17,678
|
|
|
17,855
|
|
|
17,470
|
|
|
Non-interest-bearing demand deposits
|
|
5,905
|
|
|
5,464
|
|
|
5,248
|
|
|
5,371
|
|
|
5,125
|
|
|
Interest-bearing deposits
|
|
9,524
|
|
|
9,379
|
|
|
9,221
|
|
|
9,264
|
|
|
9,166
|
|
|
Total deposits
|
|
15,429
|
|
|
14,843
|
|
|
14,469
|
|
|
14,635
|
|
|
14,291
|
|
|
Shareholders' equity
|
|
2,209
|
|
|
2,137
|
|
|
2,083
|
|
|
2,114
|
|
|
2,080
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-End Balance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
$
|
8,090
|
|
$
|
8,068
|
|
$
|
8,025
|
|
$
|
8,117
|
|
$
|
8,053
|
|
|
Earning assets
|
|
17,728
|
|
|
16,710
|
|
|
16,160
|
|
|
15,806
|
|
|
15,852
|
|
|
Goodwill and intangible assets
|
|
540
|
|
|
541
|
|
|
541
|
|
|
542
|
|
|
543
|
|
|
Total assets
|
|
19,490
|
|
|
18,478
|
|
|
17,942
|
|
|
17,617
|
|
|
17,738
|
|
|
Total deposits
|
|
16,064
|
|
|
15,104
|
|
|
14,710
|
|
|
14,479
|
|
|
14,530
|
|
|
Shareholders' equity
|
|
2,247
|
|
|
2,177
|
|
|
2,097
|
|
|
2,062
|
|
|
2,116
|
|
|
Adjusted shareholders' equity(1)
|
|
2,003
|
|
|
1,974
|
|
|
1,943
|
|
|
1,907
|
|
|
1,865
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSET QUALITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses
|
$
|
115,433
|
|
$
|
122,741
|
|
$
|
124,321
|
|
$
|
126,316
|
|
$
|
126,157
|
|
|
as a percentage of period-end loans
|
|
1.43
|
%
|
|
1.52
|
%
|
|
1.55
|
%
|
|
1.56
|
%
|
|
1.57
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
charge-offs
|
$
|
16,318
|
|
$
|
10,565
|
|
$
|
11,445
|
|
$
|
11,131
|
|
$
|
9,385
|
|
|
Annualized as a percentage of average loans
|
|
0.81
|
%
|
|
0.52
|
%
|
|
0.57
|
%
|
|
0.55
|
%
|
|
0.46
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-accrual loans
|
$
|
110,178
|
|
$
|
130,528
|
|
$
|
123,811
|
|
$
|
137,140
|
|
$
|
144,900
|
|
|
Foreclosed assets
|
|
29,114
|
|
|
30,822
|
|
|
30,892
|
|
|
27,810
|
|
|
23,778
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
$
|
139,292
|
|
$
|
161,350
|
|
$
|
154,703
|
|
$
|
164,950
|
|
$
|
168,678
|
|
|
As a percentage of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans and foreclosed assets
|
|
1.72
|
%
|
|
1.99
|
%
|
|
1.92
|
%
|
|
2.03
|
%
|
|
2.09
|
%
|
|
Total assets
|
|
0.71
|
|
|
0.87
|
|
|
0.86
|
|
|
0.94
|
|
|
0.95
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED CAPITAL
RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier
1 Risk-Based Capital Ratio
|
|
14.59
|
%
|
|
14.37
|
%
|
|
14.22
|
%
|
|
13.82
|
%
|
|
13.38
|
%
|
|
Total
Risk-Based Capital Ratio
|
|
16.57
|
|
|
16.42
|
|
|
16.31
|
|
|
15.91
|
|
|
15.46
|
|
|
Leverage Ratio
|
|
8.82
|
|
|
8.94
|
|
|
8.99
|
|
|
8.68
|
|
|
8.67
|
|
|
Equity to Assets Ratio (period-end)
|
|
11.53
|
|
|
11.78
|
|
|
11.69
|
|
|
11.70
|
|
|
11.93
|
|
|
Equity to Assets Ratio (average)
|
|
11.73
|
|
|
11.76
|
|
|
11.78
|
|
|
11.84
|
|
|
11.90
|
|
|
(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,
|
|
|
|
|
|
2011
|
|
|
2010
|
|
|
CONDENSED
INCOME STATEMENTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
|
431,453
|
|
$
|
421,896
|
|
|
Net interest
income(1)
|
|
|
476,725
|
|
|
461,098
|
|
|
Provision for loan
losses
|
|
|
27,445
|
|
|
32,321
|
|
|
Non-interest
income
|
|
|
|
|
|
|
|
|
Trust
fees
|
|
|
55,601
|
|
|
51,029
|
|
|
Service charges on deposit accounts
|
|
|
71,293
|
|
|
74,714
|
|
|
Insurance commissions and fees
|
|
|
27,971
|
|
|
27,238
|
|
|
Other
charges, commissions and fees
|
|
|
25,371
|
|
|
22,656
|
|
|
Net
gain (loss) on securities transactions
|
|
|
6,414
|
|
|
6
|
|
|
Other
|
|
|
35,692
|
|
|
36,112
|
|
|
Total
non-interest income
|
|
|
222,342
|
|
|
211,755
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
expense
|
|
|
|
|
|
|
|
|
Salaries and wages
|
|
|
185,902
|
|
|
178,845
|
|
|
Employee benefits
|
|
|
40,365
|
|
|
39,894
|
|
|
Net
occupancy
|
|
|
35,555
|
|
|
34,969
|
|
|
Furniture and equipment
|
|
|
38,015
|
|
|
35,316
|
|
|
Deposit insurance
|
|
|
9,941
|
|
|
15,533
|
|
|
Intangible amortization
|
|
|
3,335
|
|
|
3,908
|
|
|
Other
|
|
|
101,152
|
|
|
93,335
|
|
|
Total
non-interest expense
|
|
|
414,265
|
|
|
401,800
|
|
|
|
|
|
|
|
|
|
|
|
Income before
income taxes
|
|
|
212,085
|
|
|
199,530
|
|
|
Income
taxes
|
|
|
49,964
|
|
|
43,817
|
|
|
Net
income
|
|
$
|
162,121
|
|
$
|
155,713
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PER SHARE
DATA
|
|
|
|
|
|
|
|
|
Net income –
basic
|
|
$
|
2.64
|
|
$
|
2.57
|
|
|
Net income –
diluted
|
|
|
2.64
|
|
|
2.57
|
|
|
Cash
dividends
|
|
|
1.37
|
|
|
1.33
|
|
|
Book value at end
of period
|
|
|
36.69
|
|
|
34.78
|
|
|
|
|
|
|
|
|
|
|
|
OUTSTANDING
SHARES
|
|
|
|
|
|
|
|
|
Period-end
shares
|
|
|
61,245
|
|
|
60,836
|
|
|
Weighted-average
shares – basic
|
|
|
61,083
|
|
|
60,289
|
|
|
Dilutive effect of
stock compensation
|
|
|
199
|
|
|
179
|
|
|
Weighted-average
shares – diluted
|
|
|
61,282
|
|
|
60,468
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED
ANNUALIZED RATIOS
|
|
|
|
|
|
|
|
|
Return on average
assets
|
|
|
1.19
|
%
|
|
1.23
|
%
|
|
Return on average
equity
|
|
|
10.11
|
|
|
10.42
|
|
|
Net interest income
to average earning assets(1)
|
|
|
3.93
|
|
|
4.13
|
|
|
(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,
|
|
|
|
|
|
2011
|
|
|
2010
|
|
|
BALANCE
SHEET SUMMARY
|
|
|
|
|
|
|
|
|
($ in
millions)
|
|
|
|
|
|
|
|
|
Average
Balance:
|
|
|
|
|
|
|
|
|
Loans
|
|
$
|
8,066
|
|
$
|
8,156
|
|
|
Earning
assets
|
|
|
16,415
|
|
|
15,125
|
|
|
Total
assets
|
|
|
18,229
|
|
|
16,961
|
|
|
Non-interest-bearing demand deposits
|
|
|
5,541
|
|
|
4,907
|
|
|
Interest-bearing deposits
|
|
|
9,376
|
|
|
8,962
|
|
|
Total
deposits
|
|
|
14,917
|
|
|
13,869
|
|
|
Shareholders' equity
|
|
|
2,143
|
|
|
1,999
|
|
|
|
|
|
|
|
|
|
|
|
Period-End
Balance:
|
|
|
|
|
|
|
|
|
Loans
|
|
$
|
8,090
|
|
$
|
8,053
|
|
|
Earning
assets
|
|
|
17,728
|
|
|
15,852
|
|
|
Goodwill and
intangible assets
|
|
|
540
|
|
|
543
|
|
|
Total
assets
|
|
|
19,490
|
|
|
17,738
|
|
|
Total
deposits
|
|
|
16,064
|
|
|
14,530
|
|
|
Shareholders' equity
|
|
|
2,247
|
|
|
2,116
|
|
|
Adjusted
shareholders' equity(1)
|
|
|
2,003
|
|
|
1,865
|
|
|
|
|
|
|
|
|
|
|
|
ASSET
QUALITY
|
|
|
|
|
|
|
|
|
($ in
thousands)
|
|
|
|
|
|
|
|
|
Allowance for loan
losses
|
|
$
|
115,433
|
|
$
|
126,157
|
|
|
As a
percentage of period-end loans
|
|
|
1.43
|
%
|
|
1.57
|
%
|
|
|
|
|
|
|
|
|
|
|
Net
charge-offs:
|
|
$
|
38,328
|
|
$
|
31,473
|
|
|
Annualized
as a percentage of average loans
|
|
|
0.64
|
%
|
|
0.52
|
%
|
|
|
|
|
|
|
|
|
|
|
Non-performing
assets:
|
|
|
|
|
|
|
|
|
Non-accrual
loans
|
|
$
|
110,178
|
|
$
|
144,900
|
|
|
Foreclosed
assets
|
|
|
29,114
|
|
|
23,778
|
|
|
Total
|
|
$
|
139,292
|
|
$
|
168,678
|
|
|
As a percentage
of:
|
|
|
|
|
|
|
|
|
Total loans and foreclosed assets
|
|
|
1.72
|
%
|
|
2.09
|
%
|
|
Total assets
|
|
|
0.71
|
|
|
0.95
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED
CAPITAL RATIOS
|
|
|
|
|
|
|
|
|
Tier 1 Risk-Based
Capital Ratio
|
|
|
14.59
|
%
|
|
13.38
|
%
|
|
Total Risk-Based
Capital Ratio
|
|
|
16.57
|
|
|
15.46
|
|
|
Leverage
Ratio
|
|
|
8.82
|
|
|
8.67
|
|
|
Equity to Assets
Ratio (period-end)
|
|
|
11.53
|
|
|
11.93
|
|
|
Equity to Assets
Ratio (average)
|
|
|
11.76
|
|
|
11.78
|
|
|
(1)
Shareholders' equity excluding accumulated other comprehensive
income (loss).
|
|
|
|
|
|
|
|
|
|
SOURCE Cullen/Frost Bankers, Inc.