-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
MA4Nydsra0xpw9rMYKgIZQ8DUylZTAWADWzEQiXm8kQ/mmi1AUvLZvitO8Y7GtML
Fy2rE7il609MqhtRl/TZGg==
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report CULLEN/FROST BANKERS, INC. (Exact name of issuer as specified in its charter) Texas 0-7275 74-1751768 (State or other jurisdiction (Commission (IRS Employer of incorporation) File Number) Identification No.) 100 West Houston Street, San Antonio, Texas 78205 (Address of principal executive offices) (Zip Code) (210) 220-4011 (Registrant's telephone number, including area code) Not Applicable (Former name or former address, if changed since last report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below): [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Item 2.02 Results of Operations and Financial Condition Attached as Exhibit 99.1 and incorporated into this item by reference is a press release issued by the Registrant on January 24, 2007 regarding its financial results for the quarter and year ended December 31, 2006. The information furnished by the Registrant pursuant to this item shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that section, and shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934. Item 9.01 Financial Statements and Exhibits (c) Exhibits: 99.1 Press Release dated January 24, 2007 with respect to the Registrant's financial results for the quarter and year ended December 31, 2006 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. CULLEN/FROST BANKERS, INC. By: /s/ Phillip D. Green Phillip D. Green Group Executive Vice President and Chief Financial Officer Dated: January 24, 2007 EXHIBIT INDEX Exhibit Number Description 99.1 Press Release dated January 24, 2007 with respect to the Registrant's financial results for the quarter and year ended December 31, 2006 EXHIBIT 99.1 Greg Parker Investor Relations 210/220-5632 or Renee Sabel Media Relations 210/220-5416 FOR IMMEDIATE RELEASE JANUARY 24, 2007 CULLEN/FROST REPORTS 4th QUARTER RESULTS, RECORD ANNUAL EARNINGS FOR 2006 AND TIMING OF EARNINGS CONFERENCE CALL SAN ANTONIO - Cullen/Frost Bankers, Inc. The company also reported record annual earnings for 2006 of $193.6 million, or $3.42 per diluted common share, up 17.0 percent from 2005 earnings of $165.4 million, or $3.07 per diluted common share. For the year, returns on average assets and equity were 1.67 percent and 18.03 percent respectively, compared to the 1.63 percent and 18.78 percent reported in 2005. " " "This strong performance for 2006 would not be possible without our superb employees and their commitment to achieving company goals and living up to our core values. In an increasingly challenging competitive environment, they continue to focus on executing our sales discipline and taking care of our customers, helping us build long-term customer relationships." For the year ended December 31, 2006, average annual total loans were $6.5 billion, up 16.6 percent compared to $5.6 billion for the previous year. Average annual total deposits for 2006 rose to $9.2 billion, an increase of 12.9 percent over the $8.1 billion reported in 2005. Net interest income on a taxable-equivalent basis grew to $479.1 million, a 20.1 percent increase over the $398.9 million reported a year earlier. The increase reflected increasing volumes as a result of organic growth and our acquisitions and a rise in interest rates during the first half of the year. For 2006, non-interest income increased to $240.7 million, up 4.5 percent over the $230.4 million reported for 2005, while non-interest expenses increased 11.8 percent over the previous year to $410.4 million. Noted financial data for the fourth quarter: w The Corporation acquired Summit Bancshares, Inc. - with loans of $825 million and deposits of $974 million - after the close of business on December 8, 2006. These loans and deposits, and the results of operations, are included from the date of acquisition. w Net interest income on a taxable-equivalent basis increased 12.8 percent to $124.0 million from the $110.0 million reported for the fourth quarter of 2005. This increase in net interest income was impacted by a $1.0 billion increase in the average volume of earning assets, combined with an improvement in the earning asset mix, as average loans for the quarter rose to $6.7 billion, 11.2 percent higher than the $6.0 billion reported for the same period a year earlier. A rising rate environment during the first half of 2006 also had a positive impact on the Corporation's net interest income and net interest margin compared to the fourth quarter a year ago. The net interest margin was 4.62 percent for the fourth quarter, compared to 4.54 percent for the fourth quarter of 2005. When compared to the third quarter of 2006, the net interest margin contracted seven basis points from 4.69 percent primarily from increases in short term liquidity funded by growth in customer time deposits. w For the fourth quarter of 2006, non-interest income was $58.4 million, compared to the $56.6 million reported a year earlier. Trust fees rose 6.3 percent to $16.0 million, compared to $15.1 million for the fourth quarter of 2005. Insurance commissions and fees were $5.9 million for the fourth quarter of 2006, up 6.6 percent compared to $5.5 million the same quarter of 2005. w For the fourth quarter of 2006, non-interest expense was $105.6 million, up $10.5 million or 11.1 percent from the $95.1 million for the fourth quarter of 2005. Combined, salaries and wages and employee benefits were up $6.2 million over the same quarter a year earlier, as a result of normal annual merit and market increases, along with an increase in the number of employees, which were impacted by the three acquisitions completed during 2006. Net occupancy expense was up $542 thousand to $8.8 million, primarily the result of higher lease expenses associated with the additional locations from the acquisitions made during the year. Furniture and fixtures were up $1.1 million to $7.1 million, due mainly to higher depreciation expense for furniture and fixtures and higher software maintenance costs. Both of these expenses were impacted in part by the company's decision to bring certain data processing functions in-house, as well as the acquisitions. The additional expense that resulted from br
inging certain data processing functions in-house, was more than offset in other expense by a decrease in outside computer service costs. Other expenses were up $2.2 million from the same quarter the previous year, and were also impacted primarily by the Summit acquisition, including conversion-related expenses of $2.0 million, with $1.7 million impacting this category of expense. w For the fourth quarter of 2006, the provision for possible loan losses was $3.4 million, compared to net charge-offs of $3.3 million. For the fourth quarter of 2005, the provision for possible loan losses was $3.0 million, compared to net charge offs of $2.9 million. The allowance for possible loan losses as a percentage of total loans was 1.30 percent at December 31, 2006, compared to 1.32 percent at year-end 2005. Non-performing assets were $57.7 million at year-end, compared to $35.0 million the previous quarter and $38.9 million at year-end 2005. The fourth quarter increase in non-performing assets was impacted by two commercial real estate loans totaling $23.2 million that were placed on non-accrual status. These two loans were previously reported as potential problem loans during the third quarter of 2006. Cullen/Frost intends to redeem its outstanding $100 million 8.42 percent trust preferred securities issued by Cullen/Frost Capital Trust I. As a result of the anticipated redemption on February 21, 2007, the corporation expects to incur approximately $5.3 million in expense in the first quarter of 2007 related to the prepayment penalty and the write-off of the un-amortized debt issuance costs. Cullen/Frost Bankers, Inc. will host a conference call on Wednesday, January 24, 2007 at 10:00 a.m. Central Time (CT) to discuss the results for the quarter and the year. 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 12:00 p.m. CT until midnight Sunday, January 28, 2007 at 800-642-1687, with the Conference ID # of 6757092. 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 $13.2 billion at December 31, 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 more than 100 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 one of the largest banks headquartered in Texas, with a legacy of 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. 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 4th Qtr 3rd Qtr 2nd Qtr 1st Qtr 4th Qtr CONDENSED INCOME STATEMENTS Net interest income $ 121,229 $ 118,526 $ 116,968 $ 112,440 $ 107,800 Net interest income 124,017 121,093 119,309 114,719 109,968 Provision for possible loan losses Non-interest income: Trust fees 16,009 15,962 15,744 15,754 15,059 Service charges on deposit accounts Insurance commissions and fees Other charges, commissions and fees Net gain (loss) on securities transactions Other 11,333 10,871 10,615 11,009 10,070 Total non-interest income 58,400 60,566 60,750 61,031 56,553 Non-interest expense: Salaries and wages 48,472 48,743 47,463 46,106 43,787 Employee benefits 10,739 10,882 11,434 13,176 9,252 Net occupancy 8,786 8,964 8,512 8,433 8,244 Furniture and equipment 7,081 6,553 6,357 6,302 5,983 Intangible amortization 1,671 1,293 1,358 1,306 1,160 Other 28,846 27,175 25,555 25,146 26,652 Total non-interest expense Income before income taxes 70,634 73,771 71,934 69,068 66,325 Income taxes 22,272 23,769 23,384 22,391 21,408 Net income $ 48,362 $ 50,002 $ 48,550 $ 46,677 $ 44,917 PER SHARE DATA Net income - basic $ 0.85 $ 0.90 $ 0.88 $ 0.86 $ 0.83 Net income - diluted 0.84 0.88 0.86 0.83 0.81 Cash dividends 0.34 0.34 0.34 0.30 0.30 Book value at end of quarter OUTSTANDING SHARES Period-end shares 59,839 55,821 55,542 55,106 54,483 Weighted-average shares - basic Dilutive effect of stock Weighted-average shares - diluted SELECTED ANNUALIZED RATIOS Return on average assets 1.59 % 1.72 % 1.70 % 1.68 % 1.63 % Return on average equity 16.04 18.56 19.02 18.86 18.52 Net interest income to average earning assets (1)
3,400
1,711
5,105
3,934
2,950
19,142
19,301
19,566
19,107
19,749
5,907
7,204
6,144
8,975
5,539
6,009
7,228
8,681
6,187
6,117
- --
- --
- --
(1
)
19
105,595
103,610
100,679
100,469
95,078
23.01
20.08
18.51
18.34
18.03
56,726
55,440
55,105
54,574
54,015
compensation
1,007
1,147
1,198
1,353
1,346
57,733
56,587
56,303
55,927
55,361
4.62
4.69
4.70
4.66
4.54
Cullen/Frost Bankers, Inc. |
|||||||||||||||||||||||
CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED) |
|||||||||||||||||||||||
2006 |
2005 |
||||||||||||||||||||||
4th Qtr |
3rd Qtr |
2nd Qtr |
1st Qtr |
4th Qtr |
|||||||||||||||||||
BALANCE SHEET SUMMARY |
|||||||||||||||||||||||
($ in millions) |
|||||||||||||||||||||||
Average Balance: |
|||||||||||||||||||||||
Loans |
$ |
6,681 |
$ |
6,565 |
$ |
6,539 |
$ |
6,307 |
$ |
6,008 |
|||||||||||||
Earning assets |
10,629 |
10,181 |
10,090 |
9,906 |
9,587 |
||||||||||||||||||
Total assets |
12,071 |
11,522 |
11,450 |
11,286 |
10,901 |
||||||||||||||||||
Non-interest-bearing demand deposits |
|
|
|
|
|
||||||||||||||||||
Interest-bearing deposits |
6,107 |
5,829 |
5,769 |
5,691 |
5,378 |
||||||||||||||||||
Total deposits |
9,530 |
9,138 |
9,069 |
8,996 |
8,680 |
||||||||||||||||||
Shareholders' equity |
1,196 |
1,069 |
1,024 |
1,004 |
962 |
||||||||||||||||||
Period-End Balance: |
|||||||||||||||||||||||
Loans |
$ |
7,373 |
$ |
6,516 |
$ |
6,577 |
$ |
6,511 |
$ |
6,085 |
|||||||||||||
Earning assets |
11,461 |
10,324 |
10,076 |
10,300 |
10,203 |
||||||||||||||||||
Goodwill and intangible |
|
|
|
|
|
||||||||||||||||||
Total assets |
13,224 |
11,647 |
11,403 |
11,579 |
11,741 |
||||||||||||||||||
Total deposits |
10,388 |
9,270 |
9,078 |
9,292 |
9,146 |
||||||||||||||||||
Shareholders' equity |
1,377 |
1,121 |
1,028 |
1,011 |
982 |
||||||||||||||||||
Adjusted shareholders' |
|
|
|
|
|
||||||||||||||||||
ASSET QUALITY |
|||||||||||||||||||||||
($ in thousands) |
|||||||||||||||||||||||
Allowance for possible |
|||||||||||||||||||||||
loan losses |
$ |
96,085 |
$ |
85,667 |
$ |
85,552 |
$ |
84,142 |
$ |
80,325 |
|||||||||||||
as a percentage of |
|||||||||||||||||||||||
period-end loans |
1.30 |
% |
1.31 |
% |
1.30 |
% |
1.29 |
% |
1.32 |
% |
|||||||||||||
Net charge-offs |
$ |
3,329 |
$ |
1,596 |
$ |
3,695 |
$ |
2,490 |
$ |
2,928 |
|||||||||||||
Annualized as a percentage |
|||||||||||||||||||||||
of average loans |
0.20 |
% |
0.10 |
% |
0.23 |
% |
0.16 |
% |
0.19 |
% |
|||||||||||||
Non-performing assets: |
|||||||||||||||||||||||
Non-accrual loans |
$ |
52,204 |
$ |
30,045 |
$ |
30,824 |
$ |
34,027 |
$ |
33,179 |
|||||||||||||
Foreclosed assets |
5,545 |
4,971 |
6,461 |
6,766 |
5,748 |
||||||||||||||||||
Total |
$ |
57,749 |
$ |
35,016 |
$ |
37,285 |
$ |
40,793 |
$ |
38,927 |
|||||||||||||
As a percentage of: |
|||||||||||||||||||||||
Total loans and |
|||||||||||||||||||||||
foreclosed assets |
0.78 |
% |
0.54 |
% |
0.57 |
% |
0.63 |
% |
0.64 |
% |
|||||||||||||
Total assets |
0.44 |
0.30 |
0.33 |
0.35 |
0.33 |
||||||||||||||||||
CONSOLIDATED CAPITAL RATIOS |
|||||||||||||||||||||||
Tier 1 Risk-Based |
|||||||||||||||||||||||
Capital Ratio |
11.25 |
% |
12.39 |
% |
12.00 |
% |
11.55 |
% |
12.24 |
% |
|||||||||||||
Total Risk-Based |
|||||||||||||||||||||||
Capital Ratio |
13.43 |
14.68 |
14.65 |
|
14.21 |
14.94 |
|||||||||||||||||
Leverage Ratio |
9.56 |
9.76 |
9.39 |
9.12 |
9.62 |
||||||||||||||||||
Equity to Assets Ratio |
|
|
|
|
|
||||||||||||||||||
Equity to Assets Ratio |
|
|
|
|
|
||||||||||||||||||
(1) Shareholders' equity excluding accumulated other comprehensive income (loss).
Cullen/Frost Bankers, Inc. |
|||||||||||||||||||||||||||
CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED) |
|||||||||||||||||||||||||||
(In thousands, except per share amounts) |
|||||||||||||||||||||||||||
Year Ended December 31 |
|||||||||||||||||||||||||||
2006 |
2005 |
2004 |
2003 |
2002 |
|||||||||||||||||||||||
CONDENSED INCOME STATEMENTS |
|||||||||||||||||||||||||||
Net interest income |
$ |
469,163 |
$ |
391,266 |
$ |
331,438 |
$ |
313,758 |
$ |
313,773 |
|||||||||||||||||
Net interest income (1) |
479,138 |
398,938 |
337,102 |
318,945 |
318,772 |
||||||||||||||||||||||
Provision for possible loan losses |
|
|
|
|
|
||||||||||||||||||||||
Non-interest income: |
|||||||||||||||||||||||||||
Trust fees |
63,469 |
58,353 |
53,910 |
47,486 |
47,463 |
||||||||||||||||||||||
Service charges on deposit accounts |
|
|
|
|
|
|
|||||||||||||||||||||
Insurance commissions and fees |
|
|
|
|
|
||||||||||||||||||||||
Other charges, commissions and fees |
|
|
|
|
|
||||||||||||||||||||||
Net gain(loss) on securities transactions |
|
|
|
|
|
|
|
||||||||||||||||||||
Other |
43,828 |
42,400 |
33,304 |
28,848 |
27,643 |
||||||||||||||||||||||
Total non-interest income |
240,747 |
230,379 |
225,110 |
215,361 |
200,969 |
||||||||||||||||||||||
Non-interest expense: |
|||||||||||||||||||||||||||
Salaries and wages |
190,784 |
166,059 |
158,039 |
146,622 |
139,227 |
||||||||||||||||||||||
Employee benefits |
46,231 |
41,577 |
40,176 |
38,316 |
34,614 |
||||||||||||||||||||||
Net occupancy |
34,695 |
31,107 |
29,375 |
29,286 |
28,883 |
||||||||||||||||||||||
Furniture and equipment |
26,293 |
23,912 |
22,771 |
21,768 |
22,597 |
||||||||||||||||||||||
Intangible amortization |
5,628 |
4,859 |
5,346 |
5,886 |
7,083 |
||||||||||||||||||||||
Other |
106,722 |
99,493 |
89,323 |
84,157 |
79,738 |
||||||||||||||||||||||
Total non-interest expense |
410,353 |
367,007 |
345,030 |
326,035 |
312,142 |
||||||||||||||||||||||
Income from continuing operations, |
|||||||||||||||||||||||||||
before income taxes |
285,407 |
244,388 |
209,018 |
192,540 |
180,054 |
||||||||||||||||||||||
Income taxes |
91,816 |
78,965 |
67,693 |
62,039 |
57,821 |
||||||||||||||||||||||
Income from continuing operations |
|
|
|
|
|
||||||||||||||||||||||
Loss from discontinued operations, |
|||||||||||||||||||||||||||
net of tax |
-- |
-- |
-- |
-- |
(5,247 |
) |
|||||||||||||||||||||
Net income |
$ |
193,591 |
$ |
165,423 |
$ |
141,325 |
$ |
130,501 |
$ |
116,986 |
|||||||||||||||||
PER SHARE DATA |
|||||||||||||||||||||||||||
Income from continuing |
|||||||||||||||||||||||||||
operations - basic |
$ |
3.49 |
$ |
3.15 |
$ |
2.74 |
$ |
2.54 |
$ |
2.40 |
|||||||||||||||||
Income from continuing |
|||||||||||||||||||||||||||
operations - diluted |
3.42 |
3.07 |
2.66 |
2.48 |
2.33 |
||||||||||||||||||||||
Net income - basic |
3.49 |
3.15 |
2.74 |
2.54 |
2.29 |
||||||||||||||||||||||
Net income - diluted |
3.42 |
3.07 |
2.66 |
2.48 |
2.23 |
||||||||||||||||||||||
Cash dividends |
1.32 |
1.165 |
1.035 |
0.94 |
0.875 |
||||||||||||||||||||||
Book value |
23.01 |
18.03 |
15.84 |
14.87 |
13.72 |
||||||||||||||||||||||
OUTSTANDING SHARES |
|||||||||||||||||||||||||||
Period-end shares |
59,839 |
54,483 |
51,924 |
51,776 |
51,295 |
||||||||||||||||||||||
Weighted-average shares - basic |
55,467 |
52,481 |
51,651 |
51,442 |
51,001 |
||||||||||||||||||||||
Dilutive effect of stock |
|||||||||||||||||||||||||||
compensation |
1,175 |
1,322 |
1,489 |
1,216 |
1,422 |
||||||||||||||||||||||
Weighted-average shares - diluted |
|
|
|
|
|
||||||||||||||||||||||
SELECTED ANNUALIZED RATIOS |
|||||||||||||||||||||||||||
Income from continuing operations |
|||||||||||||||||||||||||||
ROA |
1.67 |
% |
1.63 |
% |
1.47 |
% |
1.36 |
% |
1.46 |
% |
|||||||||||||||||
Return on average assets |
1.67 |
1.63 |
1.47 |
1.36 |
1.40 |
||||||||||||||||||||||
Income from continuing operations |
|||||||||||||||||||||||||||
ROE |
18.03 |
18.78 |
17.91 |
17.78 |
18.77 |
||||||||||||||||||||||
Return on average equity |
18.03 |
18.78 |
17.91 |
17.78 |
17.96 |
||||||||||||||||||||||
Net interest income to average |
|||||||||||||||||||||||||||
earning assets (1) |
4.67 |
4.45 |
4.05 |
3.98 |
4.58 |
||||||||||||||||||||||
(1) |
Taxable-equivalent basis assuming a 35% tax rate. |
||||||||||||||||||||||||||
Cullen/Frost Bankers, Inc. |
||||||||||||||||||||||||||
CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED) |
||||||||||||||||||||||||||
Year Ended December 31 |
||||||||||||||||||||||||||
2006 |
2005 |
2004 |
2003 |
2002 |
||||||||||||||||||||||
BALANCE SHEET SUMMARY |
||||||||||||||||||||||||||
($ in millions) |
||||||||||||||||||||||||||
Average Balance: |
||||||||||||||||||||||||||
Loans |
$ |
6,524 |
$ |
5,594 |
$ |
4,823 |
$ |
4,497 |
$ |
4,537 |
||||||||||||||||
Earning assets |
10,203 |
8,969 |
8,352 |
8,011 |
6,961 |
|||||||||||||||||||||
Total assets |
11,581 |
10,143 |
9,619 |
9,584 |
8,353 |
|||||||||||||||||||||
Non-interest-bearing demand deposits |
|
|
|
|
|
|||||||||||||||||||||
Interest bearing deposits |
5,850 |
5,124 |
4,852 |
4,540 |
4,354 |
|||||||||||||||||||||
Total deposits |
9,184 |
8,133 |
7,767 |
7,577 |
6,894 |
|||||||||||||||||||||
Shareholders' equity |
1,074 |
881 |
789 |
734 |
651 |
|||||||||||||||||||||
Period-End Balance: |
||||||||||||||||||||||||||
Loans |
$ |
7,373 |
$ |
6,085 |
$ |
5,165 |
$ |
4,591 |
$ |
4,519 |
||||||||||||||||
Earning assets |
11,461 |
10,197 |
8,892 |
8,132 |
7,710 |
|||||||||||||||||||||
Goodwill and intangible assets |
|
|
|
|
|
|||||||||||||||||||||
Total assets |
13,224 |
11,741 |
9,953 |
9,672 |
9,536 |
|||||||||||||||||||||
Total deposits |
10,388 |
9,146 |
8,106 |
8,069 |
7,628 |
|||||||||||||||||||||
Shareholders' equity |
1,377 |
982 |
822 |
770 |
704 |
|||||||||||||||||||||
Adjusted shareholders' equity (1) |
|
|
|
|
|
|||||||||||||||||||||
ASSET QUALITY |
||||||||||||||||||||||||||
($ in thousands) |
||||||||||||||||||||||||||
Allowance for possible loan losses |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
As a percentage of period-end loans |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Net charge-offs: |
$ |
11,110 |
$ |
8,921 |
$ |
10,191 |
$ |
9,627 |
$ |
12,843 |
||||||||||||||||
As a percentage of average loans |
|
% |
|
% |
|
% |
|
% |
|
% |
||||||||||||||||
Non-performing assets: |
||||||||||||||||||||||||||
Non-accrual loans |
$ |
52,204 |
$ |
33,179 |
$ |
30,443 |
$ |
47,451 |
$ |
34,861 |
||||||||||||||||
Foreclosed assets |
5,545 |
5,748 |
8,673 |
5,343 |
8,047 |
|||||||||||||||||||||
Total |
$ |
57,749 |
$ |
38,927 |
$ |
39,116 |
$ |
52,794 |
$ |
42,908 |
||||||||||||||||
As a percentage of: |
||||||||||||||||||||||||||
Total loans plus foreclosed |
||||||||||||||||||||||||||
assets |
0.78 |
% |
0.64 |
% |
0.76 |
% |
1.15 |
% |
0.95 |
% |
||||||||||||||||
Total assets |
0.44 |
0.33 |
0.39 |
0.55 |
0.45 |
|||||||||||||||||||||
(1) |
Shareholders' equity excluding accumulated other comprehensive income, net of tax. |