Cullen/Frost Bankers sees jump in first quarter earnings

Cullen/Frost Bankers Inc. saw its net income climb 11.6 percent in the first quarter compared to a year ago. Both loans and deposits were up as well.

The financial services company reported net income of $52.8 million for the quarter ended March 31 compared to $47.3 million for the year ago period.

On a per-share basis, earnings for the quarter were 89 cents per diluted common share compared to 78 cents per diluted common share for the first quarter of 2007. Returns on average assets and equity for the first quarter were 1.59 percent and 13.89 percent respectively, compared to 1.47 percent and 13.78 percent for the same quarter the previous year.

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"I am pleased to report another quarter of strong results for our company," says Dick Evans, chairman and CEO of Cullen/Frost. "For the first quarter, we saw good increases in fee income from trust and insurance operations, and growth in business volumes, as both loans and deposits were up over the first quarter of 2007. Credit quality continues to be manageable and capital levels are favorable in comparison to our peers.

"While competition in the Texas markets we serve continues to be brisk, this is a great state and an exceptional place for business," Evans says. "Especially as the U.S. economy undergoes a contraction, I remain confident in the resilience of the Texas economy."

For the first quarter of 2008, net interest income on a taxable-equivalent basis increased 2.8 percent to $134.8 million, compared to the $131.1 million reported for the first quarter of 2007. Average loans for the quarter were up 6.9 percent to $7.9 billion, from the $7.4 billion reported a year earlier. Average deposits for the quarter were $10.4 billion, up 1.4 percent from the $10.3 billion reported in the first quarter of 2007.

San Antonio-based Cullen/Frost Bankers (NYSE: CFR) is a financial holding company with $13.2 billion in assets and $24.2 billion in trust assets. It is the parent company of Frost Bank.