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CULLEN/FROST REPORTS FIRST QUARTER EARNINGS

 SAN ANTONIO, Texas, April 15 /PRNewswire/ -- Cullen/Frost Bankers, Inc. (NASDAQ-NMS: CFBI) today reported net income of $16.2 million or $1.47 per common share for the first quarter of 1993, compared with $8.0 million or $.74 per common share for the fourth quarter of 1992 and $3.3 million or $.32 per common share for the first quarter of 1992. Operating trends continued to improve, and the first quarter profits were influenced by several non-recurring items.
 "This was the most positive quarter in our 125-year history. We acquired New First City Banks in San Antonio and Austin, adding $443 million in deposits for a total of $3.1 billion," said T.C. Frost, chairman of the board. "This expansion strengthens us in the cities which ranked first and second in Texas in total job growth last year."
 The transaction was handled within the Corporation's existing capital base and brings an estimated additional 13 percent in trust fee income. During 1993, transition costs are expected to total $6 million of which $3 million was recognized in the first quarter. The banks were acquired Feb. 13 and are expected to add to earnings in 1994.
 Also during the quarter, Cullen/Frost:
 -- recorded a mandatory change in accounting for income taxes (SFAS No.109) which resulted in a one-time cumulative addition to earnings of $8.4 million.
 -- implemented a retirement incentive program which resulted in a one-time charge to earnings of $1.9 million but which produces cost savings for the future.
 Excluding the transition costs and these non-recurring items, net income for the quarter would have been approximately $11.0 million -- still the highest in history.
 Improved asset quality was a positive for the quarter. The combined provisions for possible loan losses and real estate valuations were $323,000 for the first quarter of 1993, down from $6.7 million a year ago. Net loan recoveries of $82,000 were reported during the f ?quarter of 1993 compared with net charge-offs of $3.1 million for the same period last year.
 In recognition of the significantly improved operating profits, Cullen/Frost paid a 10 percent stock dividend on March 2, 1993. After this, book value per share was $21.29 on March 31, 1993.
 Other financial highlights:
 -- Net interest income on a non-taxable equivalent basis was $31.0 million for the first quarter of 1993, compared with $28.8 million for the same quarter last year.
 -- Non-interest income for the first quarter totaled $17.7 million, up from $14.1 million during the same period last year.
 -- Non-interest expenses excluding the provision for real estate losses totaled $40.4 million compared with $32.8 million for the first quarter of 1992. Transition costs related to the New First City transaction and a one-time charge related to the implementation of a retirement incentive program accounted for $4.9 million of the increase in the first quarter of 1993.
 -- $10 million in convertible subordinated debentures were redeemed which reduced debt and resulted in the issuance of 467,836 additional shares of common stock.
 Cullen/Frost Bankers, Inc. is a multi-bank holding company with assets of $3.5 billion at March 31, 1993. The corporation has four member banks and 27 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 under the NASDAQ symbol CFBI.
 CULLEN/FROST BANKERS, INC.
 Consolidated Financial Summary
 (unaudited)
 Condensed Income Statements
 (in thousands of dollars)
 1993 1992
 Quarters First Fourth Third Second First
 Net interest income $30,980 $29,687 $29,251 $28,894 $28,825
 Net interest inc.(A) 31,206 29,950 29,523 29,175 29,138
 Provision for possible
 loan losses (590) 200 1,000 (418) (2,468)
 Non-interest income 17,683 16,250 15,911 15,549 14,103
 Provision for real estate
 losses 913 1,730 3,365 5,036 9,180
 Non-interest exp.(B) 40,395 34,547 33,200 33,600 32,840
 Net income 16,224 8,041 7,403 5,340 3,338
 PER COMMON SHARE DATA
 (adjusted for 10 percent Stock Dividend)
 Net income (loss) $ 1.47 $ .74 $ .69 $ .50 $ .32
 Shareholders' equity 21.29 19.80 19.08 18.36 17.85
 Avg. common & common
 equivalent
 shares 11,102,284 11,057,560 11,010,958 10,956,548 10,837,739
 BALANCE SHEET SUMMARY
 (in millions of dollars)
 Average Balance:
 Loans $ 1,092 $ 1,009 $ 1,006 $ 1,031 $ 1,054
 Earning assets 2,834 2,697 2,644 2,603 2,605
 Total assets 3,316 3,117 3,060 3,010 3,033
 Private deposits 2,819 2,637 2,585 2,569 2,597
 Public funds 93 114 117 113 111
 Total deposits 2,912 2,751 2,702 2,682 2,708
 Period-End Balance:
 Loans $ 1,176 $ 1,011 $ 1,010 $ 1,009 $ 1,032
 Earning assets 2,979 2,708 2,631 2,597 2,603
 Total assets 3,537 3,151 3,064 3,025 3,046
 Total deposits 3,126 2,769 2,718 2,692 2,727
 Shareholders' equity 233 206 195 186 180
 CAPITAL RATIOS (in percents)
 Tier 1 Capital Ratio 12.78 15.66 15.63 14.67 13.71
 Total Capital Ratio 14.15 17.52 17.57 16.61 15.79
 Equity to Assets Ratio 6.69 6.54 6.37 6.16 5.92
 Leverage Ratio 5.56 6.43 6.19 5.99 5.74
 (A) Taxable-equivalent basis assuming a 34 percent tax rate.
 (B) Excluding the provision for real estate losses.
 Selected Financial Data
 (in thousands of dollars)
 1993 1992
 Quarters First Fourth Third Second First
 Return on avg. assets
 (in percents) 1.98 1.03 .96 .71 .44
 Return on avg. equity
 (in percents) 27.86 15.61 15.14 11.48 7.40
 Net int. inc. to avg.
 earn. assets
 (in percents)(A) 4.43 4.43 4.45 4.49 4.48
 Allowance for possible
 loan losses $31,389 $31,897 $33,678 $34,245 $36,864
 As a percentage of
 period-end loans 2.67 3.15 3.33 3.39 3.57
 Net charge-offs:
 Real estate $ 484 $ 2,142 $ 214 $ 2,444 $ (453)
 Commercial
 and industrial (637) (164) 543 372 (328)
 Energy (5) (31) (14) (3) (97)
 Consumer 440 13 827 233 292
 Other (364) 21 (3) (9) 3,641
 Total $ (82) $ 1,981 $ 1,567 $ 3,037 $ 3,055
 As a percentage of
 average loans (.03) .78 .62 1.18 1.17
 Non-performing assets:
 Non-accrual loans $23,742 $23,117 $33,224 $34,505 $38,699
 Restructured loans 712 31 31 32 32
 Foreclosed assets,
 net of allowance 26,175 28,155 31,187 42,064 48,620
 Total $50,629 $51,303 $64,442 $76,601 $87,351
 As a percentage of:
 Total assets 1.43 1.63 2.10 2.53 2.87
 Total loans plus
 foreclosed assets 4.21 4.94 6.19 7.29 8.09
 (A) Taxable-equivalent basis assuming a 34 percent tax rate.
 -0- 4/15/93
 /CONTACT: John D. Gellhausen, 210-220-4878, or Tammy Valentine of Dublin-McCarter & Associates, 210-227-0221, both for Cullen/Frost Bankers/
 (CFBI)


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

SH -- NY019 -- 6102 04/15/93 10:08 EDT
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