10-year

10-Year Anniversary Promotion (20% off)

Join GuruFocus Premium Membership Now for Only $279/Year

Once a decade discount

Save up to $500 on Global Membership.

Don't Miss It !

Free 7-day Trial
All Articles and Columns »

Cullen/Frost Bankers Inc. Reports Operating Results (10-Q)

July 28, 2010 | About:
10qk

10qk

18 followers
Cullen/Frost Bankers Inc. (CFR) filed Quarterly Report for the period ended 2010-06-30.

Cullen/frost Bankers Inc. has a market cap of $3.24 billion; its shares were traded at around $53.51 with a P/E ratio of 18.8 and P/S ratio of 3.9. The dividend yield of Cullen/frost Bankers Inc. stocks is 3.4%. Cullen/frost Bankers Inc. had an annual average earning growth of 5.9% over the past 10 years.CFR is in the portfolios of Westport Asset Management, Columbia Wanger of Columbia Wanger Asset Management, Richard Aster Jr of Meridian Fund, Bruce Kovner of Caxton Associates, Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.

Highlight of Business Operations:

Net income totaled $52.9 million, or $0.87 diluted per share, for the three months ended June 30, 2010 compared to $37.9 million, or $0.63 diluted per share, for the three months ended June 30, 2009 and $47.8 million, or $0.79 diluted per share, for the three months ended March 31, 2010. Net income totaled $100.7 million, or $1.66 diluted per share, for the six months ended June 30, 2010 compared to $82.8 million, or $1.39 diluted per share, for the six months ended June 30, 2009.

Net income increased $15.0 million, or 39.7%, for the three months ended June 30, 2010 and increased $17.9 million, or 21.6%, for six months ended June 30, 2010 compared to the same periods in 2009. The increase during the three months ended June 30, 2010 was primarily the result of an $8.0 million decrease in the provision for possible loan losses, a $7.4 million increase in net interest income, a $1.9 million increase in non-interest income and a $1.6 million decrease in non-interest expense partly offset by a $3.9 million increase in income tax expense. The increase during the six months ended June 30, 2010 was primarily the result of a $15.4 million increase in net interest income, a $4.0 million decrease in the provision for possible loan losses and a $3.5 million increase in non-interest income partly offset by a $3.5 million increase in non-interest expense and a $1.5 million increase in income tax expense.

Net income for the second quarter of 2010 increased $5.1 million, or 10.6%, from the first quarter of 2010. The increase was primarily the result of a $4.9 million decrease in the provision for possible loan losses and a $4.3 million increase in net interest income partly offset by a $2.6 million increase in income tax expense and a $1.5 million decrease in non-interest income.

Taxable-equivalent net interest income for the second quarter of 2010 increased $4.7 million, or 3.1%, from the first quarter of 2010. The increase primarily resulted from an increase in the average volume of interest-earning assets. The average volume of interest-earning assets for the second quarter of 2010 increased $406.1 million compared to the first quarter of 2010. Taxable-equivalent net interest income for the second quarter of 2010 was also impacted by an increase in the number of days compared to the first quarter of 2010. Taxable-equivalent net interest income for the first quarter of 2010 included 90 days compared to 91 days for the second quarter of 2010. The additional day added approximately $1.7 million to taxable-equivalent net interest income during the second quarter of 2010. Excluding the impact of the additional day during the second quarter of 2010 results in an effective increase in taxable-equivalent net interest income of approximately $3.0 million during the second quarter of 2010 which was primarily related to the aforementioned increase in average interest-earning assets. The net interest margin decreased 1 basis points from 4.19% in the first quarter of 2010 to 4.18% in the second quarter of 2010. The decrease in the net interest margin was partly due to an increase in the relative proportion of funds invested in lower yielding interest-bearing deposits during the second quarter.

Read the The complete Report

About the author:

10qk
GuruFocus - Stock Picks and Market Insight of Gurus

Rating: 2.8/5 (4 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK