willNE: Thanks for your information. Would have
replied sooner but was in cool California on vacation.
The 2Q .24/sh. merger write-off for Overton was a bit
disconcenting though I presume Frost's conservative accounting
made it necessary. Needless to say the market didn't
like it as 23% decline in the stock value implies.
That was dissapointing to say the least.
willNE - Thx for Frost Bank update. Was away in
cool Calif otherwise would have responded sooner.
Continued drop in stock value is disconcerting but most
bank stocks have done very poorly over the last 30
days. I wonder if the merger expense write-off is
completed. Frost's accounting is known to be quite
conservative. 23% decline from '98 high is dissapointing.
Overton Bank & Trust was NOT privately held, but
rather was an entity owned by many stockholders. The
Overton Bank operational results were reported in the
annual report each year, a copy of which is available to
you if you will call the main number,
The merger date with Frost was May 29th, and
accordingly, a full month's operation during which the two
entities' earnings will be pooled will be included in the
2nd quarter report forthcoming, I believe, June 21st,
from Cullen/Frost Bankers.
Frost paid about 3.6
times book for Overton...and Overton is doing extremely
well this year.
You are presuming that the Overton Bank
acquisition will be accretive to earnings. Since Overton was
privately held we have no way to predetermine that. I
believe the acquisition became final on June 1. Don't be
surprised if earnings are below expectations. Might be if
Frost paid up for Overton. Bank. Bank mergers have
gotten extremely expensive. Some in access of four times
book! We will have to wait for the report.
Does anybody have a clue as to what the second
quarter earnings are going to be? Analysts are calling
for an expected 75 cents...but what is going to
happen when the earnings come out much higher due to
better than expected results from the newly acquired
Overton Bank & Trust?
Any thoughts out there?
In response to the Overton Purchase, the Office
of the Comptroller of Currency approved the
application to merge on 4/21/98. Cullen/Frost expects to
consumate the merger towards the end of this quarter or the
begining of the 3rd quarter.
Did those of you who follow Cullen Frost notice
that on 6/8 C S First Boston added the stock to their
research list with a "buy rating". I thought First Boston
followed the stock and was a primary market maker when it
traded otc. The stock is down almost 15% from its high
earlier this year when investors could not get enough
bank stocks in their portfolios. I would like a
comment from anyone who may have read the First Boston
report. The Overton acquisition is considered very