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CULLEN/FROST REPORTS FOURTH QUARTER EARNINGS

 CULLEN/FROST REPORTS FOURTH QUARTER EARNINGS
 SAN ANTONIO, Texas, Jan. 21 /PRNewswire/ -- Cullen/Frost Bankers,


Inc. (NASDAQ: CFBI) today reported net income of $2.1 million or $.23 per common share for the fourth quarter of 1991. Net income for the year is $205,000 or $.02 per common share. Results for 1990 were a loss of $8.2 million, or $.94 per common share, due to additions to reserves.
 "We are experiencing a steady improvement in asset quality which has been bolstered this quarter by a continued trend of re-coveries," said T.C. Frost, chairman of the board. "We are pleased that these events combined with strong reserves allowed us to overcome a loss reported earlier this year." A second quarter loss resulted from the $5.4 million settlement of a nine-year-old lawsuit.
 At year-end 1991, non-performing assets were $101 million, down from $122 million a year ago. Reserves for loan losses stood at $42.4 million and covered 116 percent of non-accrual and restructured loans. At the end of 1990, reserves were $45.6 million and totalled 86 percent of non-accrual and restructured loans.
 "While asset quality improvements are encouraging, we do expect that real estate market conditions will continue to impact the value of foreclosed properties and, therefore, Cullen/Frost's net income in the near future," Frost added.
 The provision for loan losses was reduced to $10.0 million from $32.0 million last year. The provision for real estate losses increased from $11.2 million in 1990 to $20.8 million for 1991. The combined effect of these two provisions, a decrease in expenses of $12.3 million, was the single largest contributor to the turnaround in 1991 results.
 Other highlights of the year include:
 -- Net charge-offs for the year totalled $13.2 million, down from $28.7 million for the year-ended 1990.
 -- During 1991, foreclosed properties totaling $14.1 million were sold, compared with $15.5 million in the previous year.
 -- Net interest income on a non-taxable equivalent basis was $108.5 million for the year, compared with $110 million for 1990.
 -- Excluding securities gains, non-interest income was $55.5 million for 1991, up 10 percent from the same period in 1990.
 -- An important component of non-interest income, trust fees were 7 percent ahead of last year's results. The market value of trust assets under management exceeded $8.8 billion at Dec. 31, 1991.
 -- Excluding the lawsuit settlement in the second quarter and the provision for real estate losses, non-interest expenses totalled $129 million for the year, compared with $125 million for 1990.
 -- Total core deposits (which exclude public funds, correspondent bank deposits and certificates of deposit greater than $100,000) remained steady at $2 billion at Dec. 31, 1991, compared with year-end 1990.
 -- Loan volume, a reflection of the economy, continued to decline and averaged $1.1 billion in 1991, compared with $1.3 billion in 1990.
 -- Capital ratios improved. At year-end 1991, equity to assets rose to 5.72 percent from 5.33 percent at last year-end.
 Cullen/Frost Bankers, Inc. is a multi-bank holding company with assets of $3.1 billion at December 31, 1991. The corporation has four member banks and 23 offices in five major Texas banking markets--San Antonio, Houston/Galveston, Austin, Corpus Christi and Dallas.
 Cullen/Frost Bankers' stock is traded in the over-the-counter (OTC) market.
 CULLEN/FROST BANKERS, INC.
 Consolidated Financial Summary (Unaudited)
 1991 1990
 Quarters: Fourth Third Second First Fourth
 CONDENSED INCOME
 STATEMENTS
 (in thousands of dollars)
 Net interest income $27,803 $ 27,133 $26,649 $26,929 $27,503
 Net interest income(A) 28,219 27,685 27,208 27,542 28,193
 Provision for possible
 loan losses 225 1,725 3,025 5,045 4,348
 Non-interest income 14,157 14,345 15,355 13,625 12,724
 Provision for real estate
 losses 6,498 6,099 4,875 3,327 4,039
 Non-interest expense(B) 32,776 32,946 37,040 31,577 31,254
 Net income (loss) 2,104 503 (2,957) 555 538
 PER COMMON SHARE DATA
 Net income (loss) $.23 $.06 $(.33) $.06 $.06
 Shareholders' equity 19.34 19.16 19.15 19.55 19.57
 Average common and
 common equivalent
 shares 9,260,677 9,123,838 9,011,943 8,922,764 8,840,221
 BALANCE SHEET SUMMARY
 (in millions of dollars)
 Average Balance:
 Loans $1,073 $1,117 $1,174 $1,236 $1,279
 Earning assets 2,625 2,681 2,671 2,750 2,793
 Total assets 3,058 3,114 3,085 3,162 3,219
 Private deposits 2,619 2,624 2,603 2,630 2,694
 Public funds 105 147 147 157 151
 Total deposits 2,724 2,771 2,750 2,787 2,845
 Period-End Balance:
 Loans $1,073 $1,093 $1,143 $1,200 $1,268
 Earning assets 2,611 2,759 2,584 2,731 2,781
 Total assets 3,079 3,257 3,063 3,138 3,255
 Total deposits 2,766 2,934 2,735 2,769 2,878
 Shareholders'
 equity 176 173 172 175 173
 CAPITAL RATIOS - 1990 RULES
 Tier 1 Capital
 Ratio (in percents) 13.39 12.65 11.85 11.66 11.36
 Total Capital Ratio 15.69 14.98 14.13 14.04 13.73
 Leverage Ratio 5.56 5.36 5.37 5.31 5.18
 (A) Taxable-equivalent basis assuming a 34 percent tax rate.
 (B) Excluding the provision for real estate losses.
 CULLEN/FROST BANKERS, INC.
 Consolidated Financial Summary (Unaudited)
 1991 1990
 Quarters Fourth Third Second First Fourth
 SELECTED FINANCIAL DATA
 (in thousands of dollars)
 Return on average
 assets (in percents) .27 .06 N/A .07 .07
 Return on average
 equity 4.71 1.14 N/A 1.29 1.24
 Net interest income to
 average
 earning assets(A) 4.29 4.12 4.07 pct. 4.02 4.03
 Allowance for possible
 loan losses $42,387 $43,714 $42,509 $45,499 $45,604
 As a percentage of
 period-end loans 3.95 4.00 3.72 3.79 3.60
 Net charge-offs:
 Real estate $1,990 $ 945 $ 3,011 $ 2,111 $ 2,019
 Commercial
 and industrial (847) (175) 976 2,038 1,133
 Energy 20 8 (28) (2) (13)
 Consumer 342 86 754 824 437
 Other 47 (344) 1,302 179 629
 Total $ 1,552 $ 520 $ 6,015 $ 5,150 $ 4,205
 As a percentage of
 average loans .57 .18 2.06 1.69 1.30
 Non-performing assets:
 Non-accrual
 loans $36,172 $39,875 $38,535 $59,059 $52,557
 Restructured loans 313 315 323 330 178
 Foreclosed assets,
 net of
 allowance 64,157 74,889 83,737 67,283 69,130
 Total $100,642 $115,079 $122,595 $126,672 $121,865
 As a percentage of:
 Total assets 3.27 3.53 4.00 4.04 3.74
 Total loans plus
 foreclosed
 assets 8.85 9.86 9.99 10.00 9.11
 (A) Taxable-equivalent basis assuming a 34 percent tax rate.
 CULLEN/FROST BANKERS, INC.
 Consolidated Financial Summary (Unaudited)
 Year Ended Dec. 31
 1991 1990 1989 1988 1987
 CONDENSED INCOME
 STATEMENTS
 (in thousands of dollars)
 Net interest income $108,514 $110,044 $106,960 $97,923 $91,248
 Net interest inc.(A) 110,654 112,923 110,546 101,713 97,018
 Provision for possible
 loan losses 10,020 31,993 28,902 27,224 27,905
 Non-interest income 57,482 50,592 50,480 53,297 53,455
 Provision for real estate
 losses 20,799 11,172 8,131 6,633 3,161
 Non-interest
 expense(B) 134,339 125,455 117,534 114,760 111,254
 Net income (loss) 205 (8,220) 2,673 2,403 1,983
 PER COMMON SHARE DATA
 Net income (loss) $.02 $(.94) $.31 $.28 $.24
 Shareholders' equity 19.34 19.57 20.81 20.69 20.72
 Cash dividends -- -- -- -- --
 Average common and
 common equivalent
 shares 9,155,218 8,774,493 8,651,201 8,452,351 8,134,709
 BALANCE SHEET SUMMARY
 (in millions of dollars)
 Average Balance:
 Loans $1,149 $1,315 $1,407 $1,567 $1,709
 Earning assets 2,681 2,873 3,071 2,947 2,800
 Total assets 3,105 3,289 3,455 3,273 3,138
 Private deposits 2,619 2,714 2,713 2,527 2,408
 Public funds 139 154 150 150 192
 Total deposits 2,758 2,868 2,863 2,677 2,600
 Shareholders'
 equity 176 178 178 173 170
 Period-End Balance:
 Loans $1,073 $1,268 $1,370 $1,565 $1,626
 Earning assets 2,611 2,781 3,076 3,025 2,833
 Total assets 3,079 3,255 3,505 3,386 3,182
 Total deposits 2,766 2,878 2,980 2,851 2,645
 Shareholders'
 equity 176 173 179 175 171
 (A) Taxable-equivalent basis assuming a 34 percent tax rate for 1988
 through 1991 and a 40 percent tax rate for 1987.
 (B) Excluding the provision for real estate losses.
 CULLEN/FROST BANKERS, INC.
 Consolidated Financial Summary (Unaudited)
 Year Ended Dec. 31
 1991 1990 1989 1988 1987
 SELECTED FINANCIAL DATA
 (in thousands of dollars)
 Return on average
 assets (in percents) .01 N/A .08 .07 .06
 Return on average
 equity .12 N/A 1.51 1.39 1.17
 Net interest income to
 average earning
 assets(A) 4.13 3.93 pct. 3.60 3.45 3.47
 Allowance for possible
 loan losses $42,387 $45,604 $42,282 $40,702 $35,754
 As a percentage of
 period-end loans 3.95 3.60 3.09 2.60 2.20
 Net charge-offs:
 Real estate $8,057 $11,023 $16,039 $12,864 $9,271
 Commercial
 and industrial 1,992 11,317 5,404 11,833 5,622
 Energy (2) (722) 1,092 (5,296) 1,909
 Consumer 2,006 2,455 2,327 2,071 1,704
 Other 1,184 4,598 3,270 804 4,341
 Total $13,237 $28,671 $28,132 $22,276 $22,847
 As a percentage of
 average loans 1.15 2.18 2.00 1.42 1.34
 Non-performing assets:
 Non-accrual loans $36,172 $52,557 $59,223 $62,774 $51,126
 Restructured loans 313 178 17,170 6,768 13,450
 Foreclosed assets,
 net of
 allowance(B) 64,157 69,130 55,340 28,637 29,110
 Total $100,642 $121,865 $131,733 $98,179 $93,686
 As a percentage of:
 Total assets 3.27 3.74 3.76 2.90 2.94
 Total loans plus
 foreclosed
 assets 8.85 9.11 9.24 6.16 5.66
 (A) Taxable-equivalent basis assuming a 34 percent tax rate for 1988
 through 1991 and a 40 percent tax rate for 1987.
 (B) Foreclosed assets include $42.0 million, $31.2 million and $16.2
 million of in-substance foreclosures at Dec. 31, 1991, 1990, and
 1989, respectively.
 -0- 1/21/92
 /CONTACT: Jerry Salinas of Cullen/Frost Bankers, 512-220-4605, or Robin Magers of Dublin-McCarter & Associates, 512-227-0221, for Cullen/Frost Bankers/
 (CFBI) CO: Cullen/Frost Bankers Inc. ST: Texas IN: FIN SU: ERN SH -- NY018 -- 1723 01/21/92 10:36 EST
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