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, 8170731-0101.
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?
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 positive.