SAN ANTONIO, Jan. 25, 2012 /PRNewswire/ -- Cullen/Frost
Bankers, Inc. today reported results for the fourth quarter and
full year of 2011, as the Texas
financial services leader posted record-high annual earnings,
operating effectively in a challenging economic, regulatory and
rate environment. For the first time, the company exceeded
$20 billion in assets, which is a 50
percent increase over year-end 2007.
(Logo:
http://photos.prnewswire.com/prnh/20030109/CFRLOGO)
Cullen/Frost reported net income for the fourth quarter of 2011
of $55.4 million, or $.90 per diluted common share, compared to fourth
quarter 2010 earnings of $53.1
million, or $.87 per diluted
common share. For the fourth quarter of 2011, returns on average
assets and equity were 1.12 percent and 9.74 percent respectively,
compared to 1.18 percent and 9.96 percent for the same period of
2010.
The company also reported annual earnings for 2011 of
$217.5 million, a rise of 4.2 percent
over 2010 earnings of $208.8 million.
On a per-share basis, 2011 earnings were $3.54 per diluted common share, an increase of
2.9 percent compared to the $3.44 per
diluted common share reported in 2010. For the year, returns on
average assets and equity were 1.17 percent and 10.01 percent
respectively, compared to the 1.21 percent and 10.30 percent
reported in 2010.
At the end of the fourth quarter of 2011, Cullen/Frost saw
non-performing assets decline by $44.0
million from the fourth quarter of 2010 and $18.3 million from the previous quarter.
"I am pleased to report that in 2011Cullen/Frost achieved record
annual earnings, demonstrating steady performance amid continued
economic challenges and regulatory headwinds," said Dick Evans, Cullen/Frost chairman and CEO. "It
is a credit to our dedicated employees and strong value proposition
that we were able to post record earnings. Although uncertainty
about the economy and healthcare legislation continue to constrain
the lending environment, we were able to maintain loans at the same
level as in 2010. Deposits grew again this quarter, both from new
business and consumer relationships as well as from existing
customers. In this persistent low-rate environment, it was
encouraging to see net interest income rise, as we were able to
deploy some of our additional liquidity into the investment
portfolio. Our capital levels remain very strong.
"Non-performing assets this quarter were down significantly from
both the same period a year ago and the previous quarter. This is
evidence of our credit disciplines. This quarter, we saw the best
improvement in asset quality in the last eight quarters," said
Evans.
"The Texas economy continues to
outpace the U.S., with growth in oil and gas energized by the Eagle
Ford Shale. Even with stronger job growth and lower unemployment
than the nation, uncertainty about the broader economy and the
impact of regulation persists. Businesses have reduced debt but
remain cautious about hiring or capital expenditures.
"As we have since the recession began, we are working to build
new relationships and believe these new relationships form the
foundation for future loan growth when confidence returns."
Adding to high rankings Frost has received from J.D. Power and
Associates, Greenwich Associates and Allegiance, in December Frost
Bank received an A+ credit rating from Standard and Poor's. The
agency cited Frost's "strong capital, excellent liquidity,
consistent profitability and solid credit performance relative to
peers," reinforced by the company's "conservative strategy and
solid market position in Texas."
With this rating upgrade, Frost becomes one of the highest ranked
financial institutions in the U.S., Evans noted.
"Financial services regulation poses challenges for our
industry, but at Cullen/Frost, our value proposition is helping us
take great care of customers while meeting our commitment to
providing outstanding value to our shareholders, as shown by
our consistent history of paying and increasing the dividend.
Evans said the company opened six new financial centers in 2011,
including three in Houston, two in
Austin and one in the Dallas region. In December 2011 the company announced the
acquisition of Stone Partners, Inc., a Houston-based human resource consulting firm
that will operate as a division of Frost Insurance.
"Our employees, as always, keep the Frost culture alive and
thriving and make our company's success possible. I am grateful for
their loyalty and commitment to Frost."
For the year ended December 31,
2011, average annual total loans were $8.0 billion, compared to $8.1 billion for the previous year. Average
annual total deposits for 2011 rose to $15.2
billion, up 8.4 percent, or $1.2
billion, over the $14.0
billion reported in 2010. Net interest income on a
taxable-equivalent basis increased to $642.1
million, up 4.2 percent over the $616.3 million reported a year earlier,
reflecting the impact of the increasing volume of earning assets.
For 2011, non-interest income was $290.0
million, compared to $282.0
million reported for 2010, while non-interest expense
increased 4.2 percent over the previous year to $558.1 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 2011 were 14.38 percent and
16.24 percent, respectively and are in excess of well capitalized
levels. The ratio of tangible common equity to tangible
assets was 8.82 percent at the end of the fourth quarter of 2011,
compared to 8.90 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 $165.3
million, compared to the $155.2
million reported for the fourth quarter of 2010. 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 3.76 percent for the
fourth quarter, compared to 3.93 percent for the fourth quarter of
2010 and 3.81 percent for the third quarter of 2011.
- Non-interest income for the fourth quarter of 2011 was
$67.7 million, down $2.6 million from the $70.3 million a year earlier. The Durbin
Amendment negatively impacts non-interest income by approximately
$5 million per quarter. In the
fourth quarter, that impact was most evident in other income, which
was down $3.4 million and in service
charges on deposits, which were down $1.0
million. Positively impacting the quarter were several
factors. Other charges, commissions and fees were $8.6 million, up $838,000 from the $7.8
million reported for the prior year's fourth quarter,
primarily relating to an increase in investment banking income.
Insurance commissions and fees rose $673,000 to $7.5
million, from $6.8 million in
the fourth quarter of 2010, with $459,000 of the increase resulting from benefit
commissions. Trust fees were $17.6
million, up $233,000 compared
to $17.4 million a year earlier.
Impacting trust fees was a $427,000
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 $25.2
billion at the end of the fourth quarter of 2011, compared
to $24.9 billion at December 31, 2010. Trust fees were offset, in
part, by lower estate fees.
- Non-interest expense for the fourth quarter of 2011 was
$143.8 million, up $10.1 million from the $133.7 million for the fourth quarter of 2010.
Salaries were up $5.4 million, or 8.9
percent, over the same quarter a year earlier as a result of normal
annual merit and market increases, and increases in stock-based
compensation expense and incentive compensation. Other expense was
$36.4 million, a $5.6 million increase from the $30.9 million reported for the fourth quarter of
2010, primarily from a $2.4 million
increase in brand marketing and advertising expense and a
$2.0 million contribution to the
Frost Charitable Foundation for donations. Furniture and equipment
expense was $13.5 million, up
$1.1 million mainly due to
amortization expense for software upgrades. Offsetting these
increases, in part, was a $2.1
million decrease in FDIC expense, compared to the same
quarter in 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 fourth quarter of 2011, the provision for possible loan
losses was zero, compared to net charge-offs of $5.3 million. 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. The allowance for possible loan
losses as a percentage of total loans was 1.38 percent at
December 31, 2011, compared to 1.56
percent at year-end 2010. Non-performing assets were $120.9 million at year-end, compared to
$139.3 million the previous quarter,
and $165.0 million at year-end
2010.
Cullen/Frost Bankers, Inc. will host a conference call on
Wednesday, January 25, 2012 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 29, 2012 at 800-642-1687, with the
Conference ID# of 43571634. 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 $20.3 billion in
assets at December 31, 2011,
and more than 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.
Greg Parker
Investor Relations
210/220-5632
or
Renee Sabel
Media Relations
210/220-5416
Forward-Looking Statements and Factors that Could Affect
Future Results
Certain statements contained in this Earnings Release that are
not statements of historical fact constitute forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995 (the "Act"), notwithstanding that such
statements are not specifically identified as such. In addition,
certain statements may be contained in the Corporation's future
filings with the SEC, in press releases, and in oral and written
statements made by or with the approval of the Corporation that are
not statements of historical fact and constitute forward-looking
statements within the meaning of the Act. Examples of
forward-looking statements include, but are not limited to: (i)
projections of revenues, expenses, income or loss, earnings or loss
per share, the payment or nonpayment of dividends, capital
structure and other financial items; (ii) statements of plans,
objectives and expectations of Cullen/Frost or its management or
Board of Directors, including those relating to products or
services; (iii) statements of future economic performance; and (iv)
statements of assumptions underlying such statements. Words such as
"believes", "anticipates", "expects", "intends", "targeted",
"continue", "remain", "will", "should", "may" and other similar
expressions are intended to identify forward-looking statements but
are not the exclusive means of identifying such statements.
Forward-looking statements involve risks and uncertainties that
may cause actual results to differ materially from those in such
statements. Factors that could cause actual results to differ from
those discussed in the forward-looking statements include, but are
not limited to:
- Local, regional, national and international economic conditions
and the impact they may have on the Corporation and its customers
and the Corporation's assessment of that impact.
- Volatility and disruption in national and international
financial markets.
- Government intervention in the U.S. financial system.
- Changes in the 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.
Cullen/Frost
Bankers, Inc.
|
|
CONSOLIDATED
FINANCIAL SUMMARY (UNAUDITED)
|
|
(In
thousands, except per share amounts)
|
|
|
|
|
|
2011
|
|
|
2010
|
|
|
|
4th
Qtr
|
|
3rd
Qtr
|
|
2nd
Qtr
|
|
1st
Qtr
|
|
4th
Qtr
|
|
|
CONDENSED INCOME
STATEMENTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
$
|
150,323
|
|
$
|
145,361
|
|
$
|
144,333
|
|
$
|
141,759
|
|
$
|
141,563
|
|
|
Net interest
income(1)
|
|
165,340
|
|
|
160,579
|
|
|
159,509
|
|
|
156,638
|
|
|
155,221
|
|
|
Provision for loan
losses
|
|
--
|
|
|
9,010
|
|
|
8,985
|
|
|
9,450
|
|
|
11,290
|
|
|
Non-interest income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trust
fees
|
|
17,632
|
|
|
18,405
|
|
|
18,976
|
|
|
18,220
|
|
|
17,399
|
|
|
Service charges on
deposit accounts
|
|
23,074
|
|
|
24,306
|
|
|
23,619
|
|
|
23,368
|
|
|
24,082
|
|
|
Insurance
commissions and fees
|
|
7,450
|
|
|
9,569
|
|
|
7,908
|
|
|
10,494
|
|
|
6,777
|
|
|
Other charges,
commissions and fees
|
|
8,634
|
|
|
8,134
|
|
|
8,478
|
|
|
8,759
|
|
|
7,796
|
|
|
Net gain (loss) on
securities transactions
|
|
--
|
|
|
6,409
|
|
|
--
|
|
|
5
|
|
|
--
|
|
|
Other
|
|
10,870
|
|
|
12,394
|
|
|
11,811
|
|
|
11,487
|
|
|
14,224
|
|
|
Total non-interest
income
|
|
67,660
|
|
|
79,217
|
|
|
70,792
|
|
|
72,333
|
|
|
70,278
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and
wages
|
|
66,126
|
|
|
61,697
|
|
|
61,775
|
|
|
62,430
|
|
|
60,744
|
|
|
Employee
benefits
|
|
12,574
|
|
|
12,004
|
|
|
13,050
|
|
|
15,311
|
|
|
12,458
|
|
|
Net
occupancy
|
|
11,413
|
|
|
12,080
|
|
|
11,823
|
|
|
11,652
|
|
|
11,197
|
|
|
Furniture and
equipment
|
|
13,454
|
|
|
13,106
|
|
|
12,628
|
|
|
12,281
|
|
|
12,335
|
|
|
Deposit
insurance
|
|
2,773
|
|
|
2,583
|
|
|
2,598
|
|
|
4,760
|
|
|
4,918
|
|
|
Intangible
amortization
|
|
1,052
|
|
|
1,108
|
|
|
1,107
|
|
|
1,120
|
|
|
1,217
|
|
|
Other
|
|
36,441
|
|
|
34,829
|
|
|
33,816
|
|
|
32,507
|
|
|
30,872
|
|
|
Total non-interest
expense
|
|
143,833
|
|
|
137,407
|
|
|
136,797
|
|
|
140,061
|
|
|
133,741
|
|
|
Income before income
taxes
|
|
74,150
|
|
|
78,161
|
|
|
69,343
|
|
|
64,581
|
|
|
66,810
|
|
|
Income taxes
|
|
18,736
|
|
|
23,654
|
|
|
13,657
|
|
|
12,653
|
|
|
13,759
|
|
|
Net income
|
$
|
55,414
|
|
$
|
54,507
|
|
$
|
55,686
|
|
$
|
51,928
|
|
$
|
53,051
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PER SHARE DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income – basic
|
$
|
0.90
|
|
$
|
0.89
|
|
$
|
0.91
|
|
$
|
0.85
|
|
$
|
0.87
|
|
|
Net income - diluted
|
|
0.90
|
|
|
0.89
|
|
|
0.91
|
|
|
0.85
|
|
|
0.87
|
|
|
Cash dividends
|
|
0.46
|
|
|
0.46
|
|
|
0.46
|
|
|
0.45
|
|
|
0.45
|
|
|
Book value at end of
quarter
|
|
37.27
|
|
|
36.69
|
|
|
35.54
|
|
|
34.25
|
|
|
33.74
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OUTSTANDING SHARES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end shares
|
|
61,264
|
|
|
61,245
|
|
|
61,245
|
|
|
61,242
|
|
|
61,108
|
|
|
Weighted-average shares -
basic
|
|
61,154
|
|
|
61,137
|
|
|
61,094
|
|
|
61,018
|
|
|
60,772
|
|
|
Dilutive effect of stock
compensation
|
|
54
|
|
|
102
|
|
|
297
|
|
|
316
|
|
|
176
|
|
|
Weighted-average shares -
diluted
|
|
61,208
|
|
|
61,239
|
|
|
61,391
|
|
|
61,334
|
|
|
60,948
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED ANNUALIZED
RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
|
1.12
|
%
|
|
1.15
|
%
|
|
1.23
|
%
|
|
1.19
|
%
|
|
1.18
|
%
|
|
Return on average
equity
|
|
9.74
|
|
|
9.79
|
|
|
10.45
|
|
|
10.11
|
|
|
9.96
|
|
|
Net interest income to average
earning assets(1)
|
|
3.76
|
|
|
3.81
|
|
|
3.95
|
|
|
4.03
|
|
|
3.93
|
|
|
(1) Taxable-equivalent basis
assuming a 35% tax rate.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cullen/Frost
Bankers, Inc.
CONSOLIDATED
FINANCIAL SUMMARY (UNAUDITED)
|
|
|
|
2011
|
|
|
2010
|
|
|
|
|
4th
Qtr
|
|
|
3rd
Qtr
|
|
|
2nd
Qtr
|
|
|
1st
Qtr
|
|
|
4th
Qtr
|
|
|
BALANCE SHEET
SUMMARY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Balance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
$
|
7,975
|
|
$
|
8,036
|
|
$
|
8,080
|
|
$
|
8,081
|
|
$
|
8,033
|
|
|
Earning
assets
|
|
17,806
|
|
|
17,053
|
|
|
16,356
|
|
|
15,822
|
|
|
15,953
|
|
|
Total
assets
|
|
19,579
|
|
|
18,825
|
|
|
18,170
|
|
|
17,678
|
|
|
17,855
|
|
|
Non-interest-bearing
demand deposits
|
|
6,325
|
|
|
5,905
|
|
|
5,464
|
|
|
5,248
|
|
|
5,371
|
|
|
Interest-bearing
deposits
|
|
9,804
|
|
|
9,524
|
|
|
9,379
|
|
|
9,221
|
|
|
9,264
|
|
|
Total
deposits
|
|
16,129
|
|
|
15,429
|
|
|
14,843
|
|
|
14,469
|
|
|
14,635
|
|
|
Shareholders'
equity
|
|
2,258
|
|
|
2,209
|
|
|
2,137
|
|
|
2,083
|
|
|
2,114
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-End Balance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
$
|
7,995
|
|
$
|
8,090
|
|
$
|
8,068
|
|
$
|
8,025
|
|
$
|
8,117
|
|
|
Earning
assets
|
|
18,498
|
|
|
17,728
|
|
|
16,710
|
|
|
16,160
|
|
|
15,806
|
|
|
Goodwill and
intangible assets
|
|
539
|
|
|
540
|
|
|
541
|
|
|
541
|
|
|
542
|
|
|
Total
assets
|
|
20,317
|
|
|
19,490
|
|
|
18,478
|
|
|
17,942
|
|
|
17,617
|
|
|
Total
deposits
|
|
16,757
|
|
|
16,064
|
|
|
15,104
|
|
|
14,710
|
|
|
14,479
|
|
|
Shareholders'
equity
|
|
2,284
|
|
|
2,247
|
|
|
2,177
|
|
|
2,097
|
|
|
2,062
|
|
|
Adjusted
shareholders'
equity(1)
|
|
2,036
|
|
|
2,003
|
|
|
1,974
|
|
|
1,943
|
|
|
1,907
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSET QUALITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses
|
$
|
110,147
|
|
$
|
115,433
|
|
$
|
122,741
|
|
$
|
124,321
|
|
$
|
126,316
|
|
|
as a percentage of
period-end loans
|
|
1.38
|
%
|
|
1.43
|
%
|
|
1.52
|
%
|
|
1.55
|
%
|
|
1.56
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs
|
$
|
5,286
|
|
$
|
16,318
|
|
$
|
10,565
|
|
$
|
11,445
|
|
$
|
11,131
|
|
|
Annualized as a
percentage of average
loans
|
|
0.26
|
%
|
|
0.81
|
%
|
|
0.52
|
%
|
|
0.57
|
%
|
|
0.55
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-accrual
loans
|
$
|
94,338
|
|
$
|
110,178
|
|
$
|
130,528
|
|
$
|
123,811
|
|
$
|
137,140
|
|
|
Foreclosed
assets
|
|
26,608
|
|
|
29,114
|
|
|
30,822
|
|
|
30,892
|
|
|
27,810
|
|
|
Total
|
$
|
120,946
|
|
$
|
139,292
|
|
$
|
161,350
|
|
$
|
154,703
|
|
$
|
164,950
|
|
|
As a percentage of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans and
foreclosed assets
|
|
1.51
|
%
|
|
1.72
|
%
|
|
1.99
|
%
|
|
1.92
|
%
|
|
2.03
|
%
|
|
Total
assets
|
|
0.60
|
|
|
0.71
|
|
|
0.87
|
|
|
0.86
|
|
|
0.94
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED CAPITAL
RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 Risk-Based Capital
Ratio
|
|
14.38
|
%
|
|
14.59
|
%
|
|
14.37
|
%
|
|
14.22
|
%
|
|
13.82
|
%
|
|
Total Risk-Based Capital
Ratio
|
|
16.24
|
|
|
16.57
|
|
|
16.42
|
|
|
16.31
|
|
|
15.91
|
|
|
Leverage Ratio
|
|
8.66
|
|
|
8.82
|
|
|
8.94
|
|
|
8.99
|
|
|
8.68
|
|
|
Equity to Assets Ratio
(period-end)
|
|
11.24
|
|
|
11.53
|
|
|
11.78
|
|
|
11.69
|
|
|
11.70
|
|
|
Equity to Assets Ratio
(average)
|
|
11.53
|
|
|
11.73
|
|
|
11.76
|
|
|
11.78
|
|
|
11.84
|
|
|
(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
|
|
|
|
|
2011
|
|
|
2010
|
|
|
2009
|
|
|
2008
|
|
|
2007
|
|
|
CONDENSED INCOME
STATEMENTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
$
|
581,776
|
|
$
|
563,459
|
|
$
|
536,679
|
|
$
|
534,025
|
|
$
|
518,737
|
|
|
Net interest
income(1)
|
|
642,066
|
|
|
616,319
|
|
|
577,716
|
|
|
554,353
|
|
|
534,195
|
|
|
Provision for
possible loan losses
|
|
27,445
|
|
|
43,611
|
|
|
65,392
|
|
|
37,823
|
|
|
14,660
|
|
|
Non-interest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trust
fees
|
|
73,233
|
|
|
68,428
|
|
|
67,268
|
|
|
74,554
|
|
|
70,359
|
|
|
|
Service charges on
deposit accounts
|
|
94,367
|
|
|
98,796
|
|
|
102,474
|
|
|
87,566
|
|
|
80,718
|
|
|
|
Insurance
commissions and fees
|
|
35,421
|
|
|
34,015
|
|
|
33,096
|
|
|
32,904
|
|
|
30,847
|
|
|
|
Other charges,
commissions and fees
|
|
34,005
|
|
|
30,452
|
|
|
27,699
|
|
|
35,557
|
|
|
32,558
|
|
|
|
Net gain (loss) on
securities transactions
|
|
6,414
|
|
|
6
|
|
|
(1,260)
|
|
|
(159)
|
|
|
15
|
|
|
|
Other
|
|
46,562
|
|
|
50,336
|
|
|
64,429
|
|
|
56,900
|
|
|
53,734
|
|
|
|
Total non-interest
income
|
|
290,002
|
|
|
282,033
|
|
|
293,706
|
|
|
287,322
|
|
|
268,231
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and
wages
|
|
252,028
|
|
|
239,589
|
|
|
230,643
|
|
|
225,943
|
|
|
209,982
|
|
|
|
Employee
benefits
|
|
52,939
|
|
|
52,352
|
|
|
55,224
|
|
|
47,219
|
|
|
47,095
|
|
|
|
Net
occupancy
|
|
46,968
|
|
|
46,166
|
|
|
44,188
|
|
|
40,464
|
|
|
38,824
|
|
|
|
Furniture and
equipment
|
|
51,469
|
|
|
47,651
|
|
|
44,223
|
|
|
37,799
|
|
|
32,821
|
|
|
|
Deposit
insurance
|
|
12,714
|
|
|
20,451
|
|
|
25,812
|
|
|
4,597
|
|
|
1,220
|
|
|
|
Intangible
amortization
|
|
4,387
|
|
|
5,125
|
|
|
6,537
|
|
|
7,906
|
|
|
8,860
|
|
|
|
Other
|
|
137,593
|
|
|
124,207
|
|
|
125,611
|
|
|
122,717
|
|
|
123,644
|
|
|
|
Total non-interest
expense
|
|
558,098
|
|
|
535,541
|
|
|
532,238
|
|
|
486,645
|
|
|
462,446
|
|
|
Income before
income taxes
|
|
286,235
|
|
|
266,340
|
|
|
232,755
|
|
|
296,879
|
|
|
309,862
|
|
|
Income
taxes
|
|
68,700
|
|
|
57,576
|
|
|
53,721
|
|
|
89,624
|
|
|
97,791
|
|
|
Net
income
|
$
|
217,535
|
|
$
|
208,764
|
|
$
|
179,034
|
|
$
|
207,255
|
|
$
|
212,071
|
|
|
PER SHARE DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income -
basic
|
$
|
3.55
|
|
$
|
3.44
|
|
$
|
3.00
|
|
$
|
3.51
|
|
$
|
3.59
|
|
|
Net income -
diluted
|
|
3.54
|
|
|
3.44
|
|
|
3.00
|
|
|
3.50
|
|
|
3.57
|
|
|
Cash
dividends
|
|
1.83
|
|
|
1.78
|
|
|
1.71
|
|
|
1.66
|
|
|
1.54
|
|
|
Book
value
|
|
37.27
|
|
|
33.74
|
|
|
31.55
|
|
|
29.68
|
|
|
25.18
|
|
|
|
|
OUTSTANDING
SHARES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end
shares
|
|
61,264
|
|
|
61,108
|
|
|
60,038
|
|
|
59,416
|
|
|
58,662
|
|
|
Weighted-average
shares - basic
|
|
61,101
|
|
|
60,411
|
|
|
59,456
|
|
|
58,846
|
|
|
58,952
|
|
|
Dilutive effect of
stock compensation
|
|
177
|
|
|
175
|
|
|
58
|
|
|
324
|
|
|
645
|
|
|
Weighted-average
shares - diluted
|
|
61,278
|
|
|
60,586
|
|
|
59,514
|
|
|
59,170
|
|
|
59,597
|
|
|
|
|
SELECTED ANNUALIZED
RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
|
1.17
|
%
|
|
1.21
|
%
|
|
1.14
|
%
|
|
1.51
|
%
|
|
1.63
|
%
|
|
Return on average
equity
|
|
10.01
|
|
|
10.30
|
|
|
9.78
|
|
|
13.11
|
|
|
15.20
|
|
|
Net interest income
to average earning
assets(1)
|
3.88
|
|
|
4.08
|
|
|
4.23
|
|
|
4.67
|
|
|
4.69
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Taxable-equivalent
basis assuming a 35% tax rate.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cullen/Frost
Bankers, Inc.
CONSOLIDATED
FINANCIAL SUMMARY (UNAUDITED)
|
|
|
Year Ended
December 31
|
|
|
|
|
2011
|
|
|
2010
|
|
|
2009
|
|
|
2008
|
|
|
2007
|
|
|
BALANCE SHEET
SUMMARY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
Balance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
$
|
8,043
|
|
$
|
8,125
|
|
$
|
8,653
|
|
$
|
8,314
|
|
$
|
7,464
|
|
|
|
Earning
assets
|
|
16,769
|
|
|
15,333
|
|
|
13,804
|
|
|
11,868
|
|
|
11,340
|
|
|
|
Total
assets
|
|
18,569
|
|
|
17,187
|
|
|
15,702
|
|
|
13,685
|
|
|
13,042
|
|
|
|
Non-interest-bearing demand deposits
|
|
5,739
|
|
|
5,024
|
|
|
4,259
|
|
|
3,615
|
|
|
3,524
|
|
|
|
Interest bearing
deposits
|
|
9,484
|
|
|
9,024
|
|
|
8,161
|
|
|
6,916
|
|
|
6,689
|
|
|
|
Total
deposits
|
|
15,223
|
|
|
14,048
|
|
|
12,420
|
|
|
10,531
|
|
|
10,213
|
|
|
|
Shareholders'
equity
|
|
2,172
|
|
|
2,028
|
|
|
1,831
|
|
|
1,580
|
|
|
1,395
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-End
Balance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
$
|
7,995
|
|
$
|
8,117
|
|
$
|
8,368
|
|
$
|
8,844
|
|
$
|
7,769
|
|
|
|
Earning
assets
|
|
18,498
|
|
|
15,806
|
|
|
14,437
|
|
|
13,001
|
|
|
11,556
|
|
|
|
Goodwill and
intangible assets
|
|
539
|
|
|
542
|
|
|
547
|
|
|
551
|
|
|
558
|
|
|
|
Total
assets
|
|
20,317
|
|
|
17,617
|
|
|
16,288
|
|
|
15,034
|
|
|
13,485
|
|
|
|
Total
deposits
|
|
16,757
|
|
|
14,479
|
|
|
13,313
|
|
|
11,509
|
|
|
10,530
|
|
|
|
Shareholders'
equity
|
|
2,284
|
|
|
2,062
|
|
|
1,894
|
|
|
1,764
|
|
|
1,477
|
|
|
|
Adjusted
shareholders' equity(1)
|
|
2,036
|
|
|
1,907
|
|
|
1,740
|
|
|
1,626
|
|
|
1,484
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSET
QUALITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for
possible loan losses
|
$
|
110,147
|
|
$
|
126,316
|
|
$
|
125,309
|
|
$
|
110,244
|
|
$
|
92,339
|
|
|
|
As a percentage of
period-end loans
|
|
1.38
|
%
|
|
1.56
|
%
|
|
1.50
|
%
|
|
1.25
|
%
|
|
1.19
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
charge-offs:
|
$
|
43,614
|
|
$
|
42,604
|
|
$
|
50,327
|
|
$
|
19,918
|
|
$
|
18,406
|
|
|
|
As a percentage of
average loans
|
|
0.54
|
%
|
|
0.52
|
%
|
|
0.58
|
%
|
|
0.24
|
%
|
|
0.25
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-accrual
loans
|
$
|
94,338
|
|
$
|
137,140
|
|
$
|
146,867
|
|
$
|
65,174
|
|
$
|
24,443
|
|
|
|
Foreclosed
assets
|
|
26,608
|
|
|
27,810
|
|
|
33,312
|
|
|
12,866
|
|
|
5,406
|
|
|
|
|
Total
|
$
|
120,946
|
|
$
|
164,950
|
|
$
|
180,179
|
|
$
|
78,040
|
|
$
|
29,849
|
|
|
|
As a percentage
of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans and
foreclosed assets
|
|
1.51
|
%
|
|
2.03
|
%
|
|
2.14
|
%
|
|
0.88
|
%
|
|
0.38
|
%
|
|
|
|
Total
assets
|
|
0.60
|
|
|
0.94
|
|
|
1.11
|
|
|
0.52
|
|
|
0.22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Shareholders' equity
excluding accumulated other comprehensive income (loss).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Cullen/Frost Bankers, Inc.