Texas Economy Worries Overblown Says Cullen/Frost CEO

The drop in oil prices has the nation worried about the state of both the Texas economy and its banks. Dick Evans, CEO of San Antonio-based Cullen/Frost Bankers (CFR), said the concern about the Lone Star state’s financial health is overdone. 'The Texas economy is diversified,' said Evans. 'Despite all the things that were said, we grew 1.4% last year in job growth when everybody thought we would go negative.' Shares of Cullen/Frost have dropped 18% so far this year. Evans is retiring effective March 16, 2016, at which point current President Phillip D. Green will become Chairman and CEO. Last week, Cullen/Frost released fourth quarter profits of $56.2 million, or 90 cents per diluted common share. Wall Street’s consensus estimate for the bank’s quarter was $1.04. Cullen/Frost posted revenue of $269.3 million in the period, which also did not meet the Street’s forecast of $311.5 million. Cullen/Frost also raised its provision for loan losses to $34 million for the quarter from $4.4 million the prior year.

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