EXHIBIT 99.1
		Greg Parker
		Investor Relations
		210/220-5632
		or
		Renee Sabel
		Media Relations
		210/220-5416
FOR IMMEDIATE RELEASE
July 26, 2006
CULLEN/FROST REPORTS SECOND QUARTER
RESULTS AND TIMING OF EARNINGS CONFERENCE CALL
SAN ANTONIO - Cullen/Frost Bankers, Inc. (NYSE: CFR) today reported second quarter 2006 net income of $48.6 million, a 19.3 percent increase from the $40.7 million reported for the second quarter of 2005. On a per-share basis, earnings for the quarter were $.86 per diluted common share, up 11.7 percent over the $.77 per diluted common share reported a year earlier. Returns on average assets and equity for the second quarter of 2006 were 1.70 percent and 19.02 percent, respectively, compared to 1.67 percent and 19.35 percent for the same quarter of 2005. For the second quarter of 2006, net interest income on a taxable-equivalent basis was up 24.4 percent to $119.3 million, from the $95.9 million reported for the same quarter a year earlier. Average loans increased 19.3 percent to $6.5 billion, compared to the $5.5 billion reported for the second quarter of 2005. Average deposits for the quarter rose to $9.1 billion, up 15.2 percent over the $7.9 billion reported a year earlier. Excluding the impact of three acquisitions completed during the fourth quarter of 2005 and the first quarter of 2006, average loans were up 11.2 percent, and average deposits rose 9.1 percent, compared to the second quarter a year earlier. "I am extremely pleased by our company's strong results for the second quarter, as we continue to expand our Texas franchise," said Dick Evans, chairman and CEO of Cullen/Frost. "Our strong performance for the quarter reflects our staff's success in integrating recent acquisitions and executing our sales strategy across lines of business. I was especially pleased to see a record 1.70 percent return on assets, along with a 19 percent increase in loans and 15 percent rise in deposits. Reflecting this outstanding loan and deposit growth, along with the continued impact of a rising interest rate environment on our asset-sensitive balance sheet, net interest income also grew by a solid 24 percent. The market value of trust assets also topped $20 billion this quarter, a new high for us. "With our state's strong population growth, demographics, low cost of living and business-friendly environment, I continue to feel very positive about the state's economy and the markets we serve," Evans continued. "With our outstanding employees meeting the competitive challenges, we are well positioned for future growth." "Just three weeks ago, we announced a merger agreement with Fort Worth-based Summit Bancshares, which has assets of $1.1 billion. This is an outstanding bank in an outstanding market we have served since the acquisition of Overton Bank and Trust in 1998. Their philosophy and relationship-driven business focus parallel our own, and we look forward to bringing their staff and customers into the Frost family. Late in the quarter we also converted all 10 Alamo Bank of Texas locations to Frost Bank, completing a process that began when we closed on the acquisition during the first quarter." For the first six months of 2006, net income was $95.2 million, or $1.70 per diluted common share, compared to $78.1 million, or $1.47 per diluted common share, for the first six months of 2005. Returns on average assets and average equity for the first six months of 2006 were 1.69 percent and 18.94 percent, respectively, compared to 1.60 percent and 18.83 percent for the same period in 2005. Other noted financial data for the first quarter follows:
w	Net interest income on a taxable-equivalent basis increased 24.4 percent to $119.3 million, from the $95.9 million reported a year earlier. Impacting this increase, in part, was a 15.2 percent increase in average deposits from the second quarter last year, to $9.1 billion, which in turn contributed to a rise of $1.4 billion in average earning assets compared to the same period a year earlier. The earning asset mix continued to improve as average loans for the quarter rose to $6.5 billion, 19.3 percent higher than the $5.5 billion reported for the second quarter of 2005. Net interest income and net interest margin were also impacted by the ongoing rising rate environment. The net interest margin was 4.70 percent for the second quarter, up from 4.66 percent for the previous quarter and 4.42 percent for the second quarter of 2005.
w	Non-interest income for the second quarter of 2006 rose 4.4 percent to $60.3 million, from the $57.7 million reported a year earlier. Trust fees were up 8.3 percent to $15.7 million, compared to $14.5 million in the second quarter of 2005, primarily as a result of increased levels of investment fees and oil and gas trust management fees. Investment fees are assessed based on the market values of trust assets, which exceeded $20 billion for the first time. This market value includes both assets that are managed and those held in custody. Other service charges and fees were $8.2 million, up 45.3 percent compared to the same quarter a year earlier. This increase was due primarily to the recognition of $2.4 million in investment banking fees during the second quarter of 2006 related to corporate advisory services. Other income dropped 10.8 percent from the second quarter of last year, to $10.6 million. Impacting the second quarter of 2005 was $2.4 million in income the company recognized related to net proceeds from a legal settlement.
w	Non-interest expense for the quarter was $100.2 million, an increase of 12.0 percent over the $89.5 million reported for the second quarter of last year. Total salaries and related employee benefits rose to $58.9 million, or 16.0 percent, impacted by the acquisitions completed during the fourth quarter of 2005 and the first quarter of 2006 and normal annual merit increases. The Company also recognized $1.8 million in expense related to stock options during the quarter in connection with the adoption of a new accounting standard, effective at the beginning of the year. The recent acquisitions impacted lease expense, utilities and depreciation expense related to buildings, resulting in an increase in net occupancy of $1.1 million compared to the second quarter of 2005. Other non-interest expense was also up $1.0 million from a year earlier, impacted, in large part by acquisition-related conversion expenses.
w	For the second quarter of 2006, the provision for possible loan losses was $5.1 million, compared to net charge-offs of $3.7 million. The loan loss provision for the second quarter of 2005 was $2.2 million, compared to net charge-offs of $1.6 million. Non-performing assets for the second quarter were $37.3 million, compared to $41.3 million a year earlier. The allowance for possible loan losses as a percentage of loans at June 30, 2006 was 1.30 percent, compared with 1.38 percent at the end of the second quarter of 2005.
Cullen/Frost Bankers, Inc. will host a conference call on Wednesday, July 26, 2006, at 10:00 a.m. Central Time (CT) to discuss the results for the quarter. 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 2:00 p.m. CT until midnight Sunday, July 30,2006 at 800-642-1687 with Conference ID # of 2822874. The call will also be available by webcast at the URL listed below and available for playback after 2:00 p.m. CT. After entering the website, www.frostbank.com, 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 assets of $11.4 billion at June 30, 2006. The corporation provides a full range of commercial and consumer banking products, investment and brokerage services, insurance products and investment banking services. Its subsidiary, Frost Bank, operates 93 financial centers across Texas in the Austin, Corpus Christi, Dallas, Fort Worth, Houston, Rio Grande Valley and San Antonio regions. Founded in 1868, Frost is the largest Texas-based bank, helping Texans with their financial needs during three centuries.

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. 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:
w	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.
w	Changes in the level of non-performing assets and charge-offs.
w	Changes in estimates of future reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements.
w	The effects of and changes in trade and monetary and fiscal policies and laws, including the interest rate policies of the Federal Reserve Board.
w	Inflation, interest rate, securities market and monetary fluctuations.
w	Political instability.
w	Acts of war or terrorism.
w	The timely development and acceptance of new products and services and perceived overall value of these products and services by users.
w	Changes in consumer spending, borrowings and savings habits.
w	Changes in the financial performance and/or condition of the Corporation's borrowers.
w	Technological changes.
w	Acquisitions and integration of acquired businesses. See the Corporation's current reports on Form 8-K filed with the SEC on July 3, 2006 and July 7, 2006.
w	The ability to increase market share and control expenses.
w	Changes in the competitive environment among financial holding companies.
w	The effect 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.
w	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.
w	Changes in the Corporation's organization, compensation and benefit plans.
w	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.
w	Greater than expected costs or difficulties related to the integration of new products and lines of business.
w	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)
		2006								2005
		2nd Qtr				1st Qtr				4th Qtr				3rd Qtr				2nd Qtr
CONDENSED INCOME STATEMENTS
Net interest income	$		116,968		$		112,440		$		107,800		$		99,285		$		94,078
Net interest income(1)			119,309				114,719				109,968				101,255				95,926
Provision for possible loan losses			5,105				3,934				2,950				2,725				2,175
Non-interest income:
Trust fees			15,744				15,754				15,059				14,463				14,541
Service charges on deposit accounts			19,566				19,107				19,749				20,173				19,462
Insurance commissions and fees			6,144				8,975				5,539				7,389				6,193
Other charges, commissions and   fees			8,196				5,914				6,117				6,135				5,642
Net gain (loss) on securities   transactions			--				(1	)			19				--				--
Other			10,615				11,009				10,070				9,894				11,895
Total non-interest income			60,265				60,758				56,553				58,054				57,733
Non-interest expense:
Salaries and wages			47,463				46,106				43,787				41,818				40,454
Employee benefits			11,434				13,176				9,252				9,973				10,315
Net occupancy			8,512				8,433				8,244				8,111				7,408
Furniture and equipment			6,357				6,302				5,983				6,202				5,925
Intangible amortization			1,358				1,306				1,160				1,050				1,278
Other			25,070				24,873				26,652				24,838				24,070
Total non-interest expense			100,194				100,196				95,078				91,992				89,450
Income before income taxes			71,934				69,068				66,325				62,622				60,186
Income taxes			23,384				22,391				21,408				20,167				19,502
Net income	$		48,550		$		46,677		$		44,917		$		42,455		$		40,684
PER SHARE DATA
Net income - basic	$		0.88		$		0.86		$		0.83		$		0.81		$		0.78
Net income - diluted			0.86				0.83				0.81				0.79				0.77
Cash dividends			0.34				0.30				0.30				0.30				0.30
Book value at end of quarter			18.51				18.34				18.03				17.03				16.81
OUTSTANDING SHARES
Period-end shares			55,542				55,106				54,483				52,657				52,308
Weighted-average shares - basic			55,105				54,574				54,015				52,345				51,884
Dilutive effect of stock   compensation			1,198				1,353				1,346				1,285				1,246
Weighted-average shares - diluted			56,303				55,927				55,361				53,630				53,130
SELECTED ANNUALIZED RATIOS
Return on average assets			1.70	%			1.68	%			1.63	%			1.68	%			1.67	%
Return on average equity			19.02				18.86				18.52				18.98				19.35
Net interest income to average   earning assets(1)			4.70				4.66				4.54				4.52				4.42
(1)Taxable-equivalent basis assuming a 35% tax rate.

Cullen/Frost Bankers, Inc.
CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)
		2006						2005
		2nd Qtr			1st Qtr			4th Qtr			3rd Qtr			2nd Qtr
BALANCE SHEET SUMMARY
($ in millions)
Average Balance:
Loans	$	6,539		$	6,307		$	6,008		$	5,593		$	5,483
Earning assets		10,090			9,906			9,587			8,916			8,697
Total assets		11,450			11,286			10,901			10,037			9,786
Non-interest-bearing demand    deposits		3,300			3,305			3,302			2,964			2,869
Interest-bearing deposits		5,769			5,691			5,378			5,052			5,005
Total deposits		9,069			8,996			8,680			8,016			7,874
Shareholders' equity		1,024			1,004			962			887			844
Period-End Balance:
Loans	$	6,577		$	6,511		$	6,085		$	5,710		$	5,589
Earning assets		10,076			10,300			10,203			9,185			8,903
Goodwill and intangible    assets		268			269			184			111			112
Total assets		11,403			11,579			11,741			10,280			9,951
Total deposits		9,078			9,292			9,146			8,283			8,011
Shareholders' equity		1,028			1,011			982			897			879
Adjusted shareholders'    equity(1)		1,135			1,086			1,033			928			890
ASSET QUALITY
($ in thousands)
Allowance for possible
loan losses	$	85,552		$	84,142		$	80,325		$	77,117		$	77,103
As a percentage of
period-end loans		1.30	%		1.29	%		1.32	%		1.35	%		1.38	%
Net charge-offs	$	3,695		$	2,490		$	2,928		$	2,711		$	1,610
Annualized as a percentage
of average loans		0.23	%		0.16	%		0.19	%		0.19	%		0.12	%
Non-performing assets:
Non-accrual loans	$	30,824		$	34,027		$	33,179		$	34,432		$	34,205
Foreclosed assets		6,461			6,766			5,748			6,394			7,130
Total	$	37,285		$	40,793		$	38,927		$	40,826		$	41,335
As a percentage of:
Total loans and
foreclosed assets		0.57	%		0.63	%		0.64	%		0.71	%		0.74	%
Total assets		0.33			0.35			0.33			0.40			0.42
CONSOLIDATED CAPITAL RATIOS
Tier 1 Risk-Based
Capital Ratio		12.00	%		11.55	%		12.24	%		13.01	%		12.84	%
Total Risk-Based
Capital Ratio		14.65			14.21			14.94			15.92			15.82
Leverage Ratio		9.39			9.12			9.62			10.16			10.06
Equity to Assets Ratio
(period-end)		9.01			8.73			8.37			8.72			8.84
Equity to Assets Ratio
(average)		8.94			8.89			8.82			8.84			8.62

(1) Shareholders' equity excluding accumulated other comprehensive income (loss).

Cullen/Frost Bankers, Inc.
CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)
(In thousands, except per share amounts)
			Six Months Ended
			June 30,
			2006			2005
CONDENSED INCOME STATEMENTS
Net interest income		$	229,408		$	184,181
Net interest income(1)			234,027			187,672
Provision for possible loan losses			9,039			4,575
Non-interest income
	Trust fees		31,498			28,831
	Service charges on deposit accounts		38,673			38,829
	Insurance commissions and fees		15,119			14,803
	Other charges, commissions and fees		14,110			10,873
	Net gain (loss) securities transactions		(1	)		-
	Other		21,624			22,436
	Total non-interest income		121,023			115,772
Non-interest expense
	Salaries and wages		93,569			80,454
	Employee benefits		24,610			22,352
	Net occupancy		16,945			14,752
	Furniture and equipment		12,659			11,727
	Intangible amortization		2,664			2,649
	Other		49,943			48,003
	Total non-interest expense		200,390			179,937
Income before income taxes			141,002			115,441
Income taxes			45,775			37,390
Net income		$	95,227		$	78,051
PER SHARE DATA
Net income - basic		$	1.74		$	1.51
Net income - diluted			1.70			1.47
Cash dividends			0.64			0.565
Book value at end of period			18.51			16.81
OUTSTANDING SHARES
Period-end shares			55,542			52,308
Weighted-average shares - basic			54,841			51,769
Dilutive effect of stock compensation			1,275			1,331
Weighted-average shares - diluted			56,116			53,100
SELECTED ANNUALIZED RATIOS
Return on average assets			1.69	%		1.60	%
Return on average equity			18.94			18.83
Net interest income to average earning assets(1)			4.68			4.35

(1)Taxable-equivalent basis assuming a 35% tax rate.

Cullen/Frost Bankers, Inc.
CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)
					As of or for the
					Six Months Ended
					June 30,
					2006			2005
BALANCE SHEET SUMMARY
($ in millions)
Average Balance:
	Loans			$	6,424		$	5,385
	Earning assets				9,998			8,682
	Total assets				11,369			9,810
	Non-interest-bearing demand deposits				3,302			2,882
	Interest-bearing deposits				5,730			5,032
	Total deposits				9,032			7,914
	Shareholders' equity				1,014			836
Period-End Balance:
	Loans			$	6,577		$	5,589
	Earning assets				10,076			8,903
	Goodwill and intangible assets				268			112
	Total assets				11,403			9,951
	Total deposits				9,078			8,011
	Shareholders' equity				1,028			879
	Adjusted shareholders' equity(1)				1,135			890
ASSET QUALITY
	($ in thousands)
Allowance for possible loan losses				$	85,552		$	77,103
		As a percentage of period-end loans			1.30	%		1.38	%
Net charge-offs:				$	6,185		$	3,282
		Annualized as a percentage of average loans			0.19	%		0.12	%
Non-performing assets:
	Non-accrual loans			$	30,824		$	34,205
	Foreclosed assets				6,461			7,130
			Total	$	37,285		$	41,335
	As a percentage of:
			Total loans and foreclosed assets		0.57	%		0.74	%
			Total assets		0.33			0.42
	CONSOLIDATED CAPITAL RATIOS
	Tier 1 Risk-Based Capital Ratio				12.00	%		12.84	%
	Total Risk-Based Capital Ratio				14.65			15.82
	Leverage Ratio				9.39			10.06
	Equity to Assets Ratio (period-end)				9.01			8.84
	Equity to Assets Ratio (average)				8.92			8.52

(1) Shareholders' equity excluding accumulated other comprehensive income (loss).