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. (NYSE: CFR) today reported net income for the fourth quarter of 2006 of $48.4 million, or $.84 per diluted common share, a 7.7 percent increase over fourth quarter 2005 earnings of $44.9 million, or $.81 per diluted common share. For the fourth quarter of 2006, returns on average assets and equity were 1.59 percent and 16.04 percent respectively, compared to 1.63 percent and 18.52 percent for the same period of 2005. Included in the fourth quarter of 2006 results were $2.0 million in conversion expenses relating to the December acquisition of Summit Bancshares, 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. "I am pleased to report another record year for our company," said Dick Evans, Cullen/Frost chairman and CEO. "During 2006, we completed three acquisitions - Texas Community Bancshares, Inc. in Dallas, Alamo Corporation of Texas in the Rio Grande Valley and Summit Bancshares, Inc. in Fort Worth - expanding our physical presence to more than 100 locations statewide and bringing an outstanding group of employees and customers into our Frost family. I am also pleased to announce we were able to complete all the systems conversions of these three acquisitions as well. "Our net interest margin for the year increased to 4.67 percent, the highest annual level since 2001, due in part to a one-percent increase in interest rates during the first half of 2006. At year-end, both loans and deposits were at all-time highs, with total loans reaching $7.4 billion and total deposits at $10.4 billion. Both volume levels were impacted by our acquisitions. "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. Service charges on deposits were $19.1 million, compared to $19.7 million reported for the previous year's fourth quarter. The decrease is primarily due to a higher interest rate environment when compared to the fourth quarter last year. Commercial treasury management customers currently earn more credit for their deposit balances, which, in turn, reduces the amount of fees paid for these services. Other non-interest income was $11.3 million, a 12.5 percent increase over the $10.1 million reported a year earlier. The largest factors contributing to this increase were higher income from Visa checkcard usage and higher earnings received from balances the Corporation maintains related to its official checks program.
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 bringing 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(1)			124,017				121,093				119,309				114,719				109,968
Provision for possible loan losses			3,400				1,711				5,105				3,934				2,950
Non-interest income:
Trust fees			16,009				15,962				15,744				15,754				15,059
Service charges on deposit accounts			19,142				19,301				19,566				19,107				19,749
Insurance commissions and fees			5,907				7,204				6,144				8,975				5,539
Other charges, commissions and   fees			6,009				7,228				8,681				6,187				6,117
Net gain (loss) on securities   transactions			--				--				--				(1	)			19
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			105,595				103,610				100,679				100,469				95,078
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			23.01				20.08				18.51				18.34				18.03
OUTSTANDING SHARES
Period-end shares			59,839				55,821				55,542				55,106				54,483
Weighted-average shares - basic			56,726				55,440				55,105				54,574				54,015
Dilutive effect of stock   compensation			1,007				1,147				1,198				1,353				1,346
Weighted-average shares - diluted			57,733				56,587				56,303				55,927				55,361
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)			4.62				4.69				4.70				4.66				4.54

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

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			3,423				3,309				3,300				3,305				3,302
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    assets			563				268				268				269				184
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'    equity(1)			1,432				1,179				1,135				1,086				1,033
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   (period-end)			10.41				9.63				9.01				8.73				8.37
Equity to Assets Ratio   (average)			9.91				9.28				8.94				8.89				8.82

(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				14,150			10,250			2,500			10,544			22,546
Non-interest income:
	Trust fees			63,469			58,353			53,910			47,486			47,463
	Service charges on deposit   accounts			77,116			78,751			87,415			87,805			78,417
	Insurance commissions and fees			28,230			27,731			30,981			28,660			25,912
	Other charges, commissions and   fees			28,105			23,125			22,877			22,522			21,446
	Net gain(loss) on securities   transactions			(1	)		19			(3,377	)		40			88
	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				193,591			165,423			141,325			130,501			122,233
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				56,642			53,803			53,140			52,658			52,423
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				3,334			3,009			2,915			3,038			2,540
	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				563			184			117			115			119
	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)				1,432			1,033			833			762			671
ASSET QUALITY
	($ in thousands)
Allowance for possible loan   losses				$	96,085		$	80,325		$	75,810		$	83,501		$	82,584
	As a percentage of period-end  loans				1.30	%		1.32	%		1.47	%		1.82	%		1.83	%
Net charge-offs:				$	11,110		$	8,921		$	10,191		$	9,627		$	12,843
	As a percentage of average loans				0.17	%		0.16	%		0.20	%		0.21	%		0.28	%
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.