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FROST BANK TO ACQUIRE NEW FIRST CITY BRANCHES

 SAN ANTONIO, Jan. 27 /PRNewswire/ -- Cullen/Frost Bankers, Inc. (NASDAQ-NMS: CFBI) announced today that The Frost National Bank of San Antonio, its wholly-owned subsidiary, has agreed to purchase New First City, Texas-San Antonio and New First City, Texas-Austin, two of the bridge banks established by the FDIC following the closing of banks owned by First City Bankcorporation of Texas, Inc., in separate purchase and assumption transactions. The announcement was made by T.C. Frost, chairman of the board.
 Upon consummation of the acquisitions, all New First City an Antonio and Austin branches will come under Frost National Bank ownership, increasing the total number of Frost Bank branches from 16 to 23 in the San Antonio and Austin markets. There will be no interruption in regular customer service. Customers should continue to use New First City's current Austin and San Antonio locations.
 Customers may continue to use their existing checks, deposit slips, ATM cards, loan payment coupons and other related material. Customers will be advised of a transition period which will be necessary before New First City customers may use Frost Bank facilities.
 Frost National Bank will assume all New First City Texas-San Antonio and Austin deposits, which will be transferred intact and secure. All Frost National Bank deposits are insured by the FDIC to the maximum limits allowed by law.
 For inquiries on existing accounts, customers should contact current New First City customer service numbers at 210-525-3460 in San Antonio or 512-473-4500 in Austin. Effective immediately, New First City customers can call 210-220-4000 in San Antonio, 512-339-3386 in Austin or 800-562-6732 toll free from anywhere in Texas should they have questions about this transition.
 The acquisitions will solidify Cullen/Frost's position as the leading independent banking organization in Texas. The assumption of the approximately $214 million of New First City, Texas-San Antonio deposits, will enhance Frost Bank's position in San Antonio and enable it to compete more effectively in the market.
 The Austin acquisition enables Frost Bank to establish itself in one of the most attractive markets in Texas, with three branches and the sixth largest share of deposits, $277 million. This strategy will enhance Cullen/Frost's growth potential and the overall attractiveness of its franchise. Cullen/Frost will also acquire New First City's established Austin-based trust business, with annual revenues of $3 million.
 "The acquisition of the New First City Austin and San Antonio banks by Cullen/Frost will provide substantial benefits to both Cullen/Frost and the Texas communities we serve," Frost stated. "The acquisition provides us with an additional stable depositor and customer base and will positively impact our long-term profitability. The San Antonio and Austin markets are growing banking markets and markets which we know well. We are extremely enthusiastic about these acquisitions and about the new customers who will join the Cullen/Frost family."
 Cullen/Frost intends to finance the acquisition from internal capital resources. Completion of the transaction is expected in February of 1993. Cullen/Frost expects that the acquisition will add to earnings in 1994.
 Frost National Bank also will acquire all of the loans presently held by the San Antonio and Austin bridge banks, having a combined book value, as reported by the FDIC, of approximately $169 million. These loans include approximately $16 million in consumer loans, $52 million in residential mortgages, and $101 million in commercial and other loans. Frost National Bank also will acquire approximately $262 million in investments and other securities and will receive an option to purchase or lease owned or leased bank premises, respectively.
 The combined purchase price of the Austin and San Antonio banks is $38 million, with loss-sharing protection to be provided by the FDIC with respect to certain categories of assets of the Austin bank.
 Cullen/Frost Bankers, Inc. reported net income of $8 million, or $.82 per common share, for the fourth quarter or 1992 and year-end earnings of $24.1 million, or $2.48 per common share, at Dec. 31, 1992. Profits for the fourth quarter reflect the highest quarterly earnings ever reported for the corporation.
 Cullen/Frost Bankers Inc. is a multibank holding company with assets of $3.2 billion at Dec. 31, 1993. The corporation has four member banks with a total of 23 offices in five major Texas banking markets San Antonio, Austin, Corpus Christi, Houston/Galveston and Dallas.
 Cullen/Frost Bankers' stock is traded in the over-the-counter (OTC) market under the NASDAQ symbol CFBI.
 -0- 01/27/93
 /CONTACT: Kelley L. Frey, 210-220-5512, or John Gellhausen, 210-220-4878, both of Cullen/Frost Bankers/
 (CFBI)


CO: Cullen/Frost Bankers, Inc.; First City Bancorporation of Texas ST: Texas IN: FIN SU: TNM

AH -- NY067 -- 9659 01/27/93 12:24 EST
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Date:Jan 27, 1993
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