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CULLEN/FROST BANKERS DECLARES STOCK DIVIDEND

 SAN ANTONIO, Feb. 2 /PRNewswire/ -- The Cullen/Frost Bankers, Inc. (NASDAQ: CFBI) board of directors declared a ten percent stock dividend at its regular meeting today. The dividend will be paid on March 2, 1993, to shareholders of record on February 16.
 "We are most pleased that the much improved financial results in 1992 allow the board to pass on in a tangible way to shareholders this benefit of our better performance," said T.C. Frost, chairman of the board. "Additionally, the board has announced its intention to consider a cash dividend during the last half of 1993."
 Cullen/Frost President Robert S. McClane, speaking before the Bank and Financial Analysts Association at its winter meeting in Phoenix on January 28, said that the corporation's current outlook is for improved results this year compared to 1992 because of substantially less need to provide for declines in value of foreclosed assets. Provisions charged to income during 1992 for this valuation reserve totaled $18.3 million. In addition to this earnings improvement, Cullen/Frost has previously reported that it is required to adopt a change in accounting for income taxes (Financial Accounting Standards No. 109) which will have the cumulative effect of increasing net income in the first quarter of 1993 by approximately $8 million or $.84 per share before considering this stock dividend.
 Also, Cullen/Frost reported that General Electric Pension Fund, holder of the corporation's $10 million convertible subordinated debentures maturing in 1996, will convert these debentures into 467,836 shares of Cullen/Frost common stock by Feb. 4, 1993 thereby augmenting capital and reducing debt. The debentures bear interest at the rate of 9.75 percent, and the conversion price is $21.37 per share. The debentures have been accounted for as common stock equivalents and, therefore, earnings per share as previously reported will not be affected. General Electric has said that its current intention is to hold the shares in its investment account.
 Cullen/Frost is expected to complete its previously announced acquisition of New First City-San Antonio and New First City-Austin through its wholly owned subsidiary, Frost National Bank, in mid- February from the FDIC. This transaction will add $494 million in additional assets and expand the Corporation's assets to $3.6 billion.
 Cullen/Frost Bankers, Inc. is a multibank holding company with assets of $3.2 billion at Dec. 31, 1992. 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- 2/2/93
 /CONTACT: Kelley L. Frey, 210-220-5512 or John D. Gellhausen, 210-220-4878, both of Cullen/Frost Bankers, Inc./
 (CFBI)


CO: Cullen/Frost Bankers, Inc. ST: Texas IN: FIN SU: DIV

TS -- NY108 -- 2095 02/02/93 17:09 EST
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Publication:PR Newswire
Date:Feb 2, 1993
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