EXHIBIT 99.1
		Greg Parker
		Investor Relations
		210/220-5632
		or
		Renee Sabel
		Media Relations
		210/220-5416
FOR IMMEDIATE RELEASE
July 25, 2007
CULLEN/FROST REPORTS SECOND QUARTER
RESULTS AND TIMING OF EARNINGS CONFERENCE CALL
SAN ANTONIO - Cullen/Frost Bankers, Inc. (NYSE: CFR) today reported second quarter 2007 net income of $53.6 million, a 10.5 percent increase from the $48.6 million reported for the second quarter of 2006. On a per-share basis, earnings for the second quarter were $.89 per diluted common share, up 3.5 percent over the $.86 per diluted common share reported a year earlier. Returns on average assets and equity for the second quarter of 2007 were 1.66 percent and 15.40 percent, respectively, compared to 1.70 percent and 19.02 percent for the same quarter of 2006. For the second quarter of 2007, net interest income on a taxable-equivalent basis increased 11.6 percent to $133.1 million, compared to the $119.3 million reported for the same quarter a year earlier. Average loans were $7.5 billion, up 14.0 percent from the $6.5 billion reported for the second quarter of 2006. Average deposits for the quarter rose 11.3 percent to $10.1 billion over the $9.1 billion reported a year earlier. Both loans and deposit volumes were impacted by the December 2006 acquisition of Summit Bancshares, Inc. " As we report another record quarter for our company, I was pleased to see our net interest margin reach 4.72 percent, the highest level we have achieved in five years," said Cullen/Frost Chairman and CEO Dick Evans. "Trust income was also up by a solid 12.4 percent. Loans and deposits each increased by double digits over last year's second quarter and were impacted by our Summit Bancshares acquisition in Fort Worth. We continue to operate in an environment of strong competition in loan structure and pricing, impacting organic loan growth, as evidenced by recent flat loan volumes." " This year, we are pleased to be opening new financial centers in San Antonio, Austin and the Rio Grande Valley, including our first location in Brownsville. Texas continues to outperform the U.S. in job growth and other measures, and I continue to be positive about the state's economy and the Texas markets we serve." " As always, our outstanding employees provide the commitment that make our results possible," Evans continued. "They take care of our customers every day, and they step up when we ask them to meet new goals and challenges. I am very proud of them and grateful for their loyalty." For the first six months of 2007, net income was $100.9 million, or $1.67 per diluted common share, compared to $95.2 million, or $1.70 per diluted common share, for the first six months of 2006. Returns on average assets and average equity for the first six months of 2007 were 1.57 percent and 14.60 percent, respectively, compared to 1.69 percent and 18.94 percent for the same period in 2006. Other noted financial data for the first quarter follows:
All of the following comparisons to the second quarter a year ago were impacted, in part, by the acquisition of Summit Bancshares, Inc. in Fort Worth in the fourth quarter of 2006.
w	Net interest income on a taxable-equivalent basis increased 11.6 percent to $133.1 million, from the $119.3 million reported a year earlier. Partly impacting this increase was an 11.3 percent increase in average deposits from the second quarter of 2006 to $10.1 billion, which, in turn, contributed to a rise of $1.2 billion in average earning assets compared to the same period a year earlier. The earning asset mix continued to improve, with average loans for the quarter rising to $7.5 billion, up 14.0 percent from the $6.5 billion reported for the second quarter of 2006. The net interest margin was 4.72 percent for the second quarter, a rise of seven basis points from the first quarter this year and up two basis points over the second quarter of 2006.
w	Non-interest income for the second quarter of 2007 increased 5.4 percent to $64.0 million, compared to the $60.8 million reported a year earlier. Trust fees rose 12.4 percent to $17.7 million, compared to $15.7 million in the second quarter of 2006. Contributing to the increase were higher levels of investment fees, as well as an increase in the number of trust accounts. Investment fees are assessed based on the market value of trust assets, which now exceeds $24 billion. This market value includes both assets that are managed and held in custody. Service charges on deposits were $20.1, up 3.0 percent, or $581 thousand, compared to the same quarter the previous year. Insurance commissions and fees were $6.5 million, up 6.5 percent over the $6.1 million reported the same quarter a year earlier. Other service charges and fees were $7.0 million, compared to $8.7 million reported the same quarter a year earlier. During the second quarter of 2006, the company recognized $2.4 million in investment banking fees related to corporate advisory services, which impacted other service charges and fees that quarter. Other income increased 19.2 percent from the second quarter of last year to $12.7 million, with approximately 40 percent of this increase in other income due to an $802 thousand increase in income from checkcard usage.
w	Non-interest expense for the quarter was $112.6 million, an increase of 11.9 percent over the $100.7 million reported for the second quarter of last year. Total salaries and related employee benefits rose to $63.2 million, or 7.3 percent, and were impacted by the an increase in the number of employees related to the acquisition during the fourth quarter of 2006, as well as normal annual merit increases and incentive accruals. The Summit acquisition also impacted lease expense, utilities and depreciation expense related to buildings, resulting in an increase in net occupancy of $971 thousand, compared to the second quarter of 2006. Furniture and fixtures, which were up $1.9 million from the same quarter last year, were also impacted in various furniture and fixture accounts by the acquisition. However, most of the increase occurred in software maintenance, which included upgrades to retail banking technology and teller systems, up $1.0 million over the comparable period a year ago. Other non-interest expense increased $4.0 million from a year earlier, impacted, in part, by the recent Summit acquisition. The largest single component of the rise in other non-interest expense was advertising/promotion expense, up $923 thousand.
w	For the second quarter of 2007, the provision for possible loan losses was $2.65 million, compared to net charge-offs of $2.72 million. The loan loss provision for the second quarter of 2006 was $5.1 million, compared to net charge-offs of $3.7 million. Non-performing assets for the second quarter of 2007 were $49.7 million, compared to $37.3 million a year earlier. The allowance for possible loan losses as a percentage of loans at June 30, 2007 was 1.30 percent, the same percentage as at the end of the second quarter of 2006.
Cullen/Frost Bankers, Inc. will host a conference call on Wednesday, July 25, 2007, 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 1-800-944-6430. Digital playback of the conference call will be available after 2:00 p.m. CT until midnight Sunday, July 29,2007 at 800-642-1687 with Conference ID # of 7272329. 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 $12.9 billion at June 30, 2007. The corporation provides a full range of commercial and consumer banking products, investment and brokerage services, insurance products and investment banking services. Frost 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 banking organizations 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 as such. 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 and other financial service providers.
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 risk 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)
		2007								2006
		2nd Qtr				1st Qtr				4th Qtr				3rd Qtr				2nd Qtr
CONDENSED INCOME STATEMENTS
Net interest income	$		129,520		$		127,833		$		121,229		$		118,526		$		116,968
Net interest income(1)			133,095				131,127				124,017				121,093				119,309
Provision for possible loan losses			2,650				2,650				3,400				1,711				5,105
Non-interest income:
Trust fees			17,694				16,907				16,009				15,962				15,744
Service charges on deposit accounts			20,147				18,831				19,142				19,301				19,566
Insurance commissions and fees			6,545				10,628				5,907				7,204				6,144
Other charges, commissions and fees			6,979				6,858				6,009				7,228				8,681
Net gain (loss) on securities   transactions			--				--				--				--				--
Other			12,655				13,848				11,333				10,871				10,615
Total non-interest income			64,020				67,072				58,400				60,566				60,750
Non-interest expense:
Salaries and wages			51,203				51,714				48,472				48,743				47,463
Employee benefits			11,997				14,426				10,739				10,882				11,434
Net occupancy			9,483				9,634				8,786				8,964				8,512
Furniture and equipment			8,230				6,928				7,081				6,553				6,357
Intangible amortization			2,188				2,326				1,671				1,293				1,358
Other			29,541				37,059				28,846				27,175				25,555
Total non-interest expense			112,642				122,087				105,595				103,610				100,679
Income before income taxes			78,248				70,168				70,634				73,771				71,934
Income taxes			24,619				22,889				22,272				23,769				23,384
Net income	$		53,629		$		47,279		$		48,362		$		50,002		$		48,550
PER SHARE DATA
Net income - basic	$		0.90		$		0.79		$		0.85		$		0.90		$		0.88
Net income - diluted			0.89				0.78				0.84				0.88				0.86
Cash dividends			0.40				0.34				0.34				0.34				0.34
Book value at end of quarter			22.99				23.64				23.01				20.08				18.51
OUTSTANDING SHARES
Period-end shares			59,074				59,972				59,839				55,821				55,542
Weighted-average shares - basic			59,324				59,676				56,726				55,440				55,105
Dilutive effect of stock   compensation			810				919				1,007				1,147				1,198
Weighted-average shares - diluted			60,134				60,595				57,733				56,587				56,303
SELECTED ANNUALIZED RATIOS
Return on average assets			1.66	%			1.47	%			1.59	%			1.72	%			1.70	%
Return on average equity			15.40				13.78				16.04				18.56				19.02
Net interest income to average   earning assets(1)			4.72				4.65				4.62				4.69				4.70
(1) Taxable-equivalent basis assuming a 35% tax rate.

Cullen/Frost Bankers, Inc.
CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)
		2007						2006
		2nd Qtr			1st Qtr			4th Qtr			3rd Qtr			2nd Qtr
BALANCE SHEET SUMMARY
($ in millions)
Average Balance:
Loans	$	7,455		$	7,404		$	6,681		$	6,565		$	6,539
Earning assets		11,248			11,349			10,629			10,181			10,090
Total assets		12,923			13,058			12,071			11,522			11,450
Non-interest-bearing demand    deposits		3,505			3,541			3,423			3,309			3,300
Interest-bearing deposits		6,593			6,711			6,107			5,829			5,769
Total deposits		10,098			10,252			9,530			9,138			9,069
Shareholders' equity		1,396			1,392			1,196			1,069			1,024
Period-End Balance:
Loans	$	7,412		$	7,459		$	7,373		$	6,516		$	6,577
Earning assets		11,257			11,405			11,461			10,324			10,076
Goodwill and intangible    assets		562			564			563			268			268
Total assets		12,949			13,176			13,224			11,647			11,403
Total deposits		10,177			10,280			10,388			9,270			9,078
Shareholders' equity		1,358			1,418			1,377			1,121			1,028
Adjusted shareholders'    equity(1)		1,445			1,466			1,432			1,179			1,135
ASSET QUALITY
($ in thousands)
Allowance for possible
loan losses	$	96,071		$	96,144		$	96,085		$	85,667		$	85,552
As a percentage of
period-end loans		1.30	%		1.29	%		1.30	%		1.31	%		1.30	%
Net charge-offs	$	2,723		$	2,591		$	3,329		$	1,596		$	3,695
Annualized as a percentage
of average loans		0.15	%		0.14	%		0.20	%		0.10	%		0.23	%
Non-performing assets:
Non-accrual loans	$	45,503		$	46,769		$	52,204		$	30,045		$	30,824
Foreclosed assets		4,222			3,715			5,545			4,971			6,461
Total	$	49,725		$	50,484		$	57,749		$	35,016		$	37,285
As a percentage of:
Total loans and
foreclosed assets		0.67	%		0.68	%		0.78	%		0.54	%		0.57	%
Total assets		0.38			0.38			0.44			0.30			0.33
CONSOLIDATED CAPITAL RATIOS
Tier 1 Risk-Based
Capital Ratio		10.14	%		10.41	%		11.25	%		12.39	%		12.00	%
Total Risk-Based
Capital Ratio		13.25			13.54			13.43			14.68			14.65
Leverage Ratio		8.10			8.31			9.56			9.76			9.36
Equity to Assets Ratio
(period-end)		10.49			10.76			10.41			9.63			9.01
Equity to Assets Ratio
(average)		10.80			10.66			9.91			9.28			8.94

(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,
			2007			2006
CONDENSED INCOME STATEMENTS
Net interest income		$	257,353		$	229,408
Net interest income(1)			264,222			234,027
Provision for possible loan losses			5,300			9,039
Non-interest income
	Trust fees		34,601			31,498
	Service charges on deposit accounts		38,978			38,673
	Insurance commissions and fees		17,173			15,119
	Other charges, commissions and fees		13,837			14,868
	Net gain (loss) securities transactions		--			(1	)
	Other		26,503			21,624
	Total non-interest income		131,092			121,781
Non-interest expense
	Salaries and wages		102,917			93,569
	Employee benefits		26,423			24,610
	Net occupancy		19,117			16,945
	Furniture and equipment		15,158			12,659
	Intangible amortization		4,514			2,664
	Other		66,600			50,701
	Total non-interest expense		234,729			201,148
Income before income taxes			148,416			141,002
Income taxes			47,508			45,775
Net income		$	100,908		$	95,227
PER SHARE DATA
Net income - basic		$	1.70		$	1.74
Net income - diluted			1.67			1.70
Cash dividends			0.74			0.64
Book value at end of period			22.99			18.51
OUTSTANDING SHARES
Period-end shares			59,074			55,542
Weighted-average shares - basic			59,499			54,841
Dilutive effect of stock compensation			864			1,275
Weighted-average shares - diluted			60,363			56,116
SELECTED ANNUALIZED RATIOS
Return on average assets			1.57	%		1.69	%
Return on average equity			14.60			18.94
Net interest income to average earning assets(1)			4.69			4.68

(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,
					2007			2006
BALANCE SHEET SUMMARY
($ in millions)
Average Balance:
	Loans			$	7,430		$	6,424
	Earning assets				11,298			9,998
	Total assets				12,992			11,369
	Non-interest-bearing demand deposits				3,523			3,302
	Interest-bearing deposits				6,652			5,730
	Total deposits				10,175			9,032
	Shareholders' equity				1,394			1,014
Period-End Balance:
	Loans			$	7,412		$	6,577
	Earning assets				11,257			10,076
	Goodwill and intangible assets				562			268
	Total assets				12,949			11,403
	Total deposits				10,177			9,078
	Shareholders' equity				1,358			1,028
	Adjusted shareholders' equity(1)				1,445			1,135
ASSET QUALITY
	($ in thousands)
Allowance for possible loan losses				$	96,071		$	85,552
		As a percentage of period-end loans			1.30	%		1.30	%
Net charge-offs:				$	5,314		$	6,185
		Annualized as a percentage of average loans			0.14	%		0.19	%
Non-performing assets:
	Non-accrual loans			$	45,503		$	30,824
	Foreclosed assets				4,222			6,461
			Total	$	49,725		$	37,285
	As a percentage of:
			Total loans and foreclosed assets		0.67	%		0.57	%
			Total assets		0.38			0.33
	CONSOLIDATED CAPITAL RATIOS
	Tier 1 Risk-Based Capital Ratio				10.14	%		12.00	%
	Total Risk-Based Capital Ratio				13.25			14.65
	Leverage Ratio				8.10			9.39
	Equity to Assets Ratio (period-end)				10.49			9.01
	Equity to Assets Ratio (average)				10.73			8.92

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