(RTTNews) - Wednesday, Cullen/Frost Bankers, Inc. (CFR: News ), a financial holding company, reported a decline in profit for the third quarter, hurt by higher net charge-offs and non-interest expenses.

San Antonio headquartered provider of financial services said its net earnings for the quarter declined 8.2% to $44.7 million, from $49.0 million in the corresponding period last year. Earnings per share decreased to $0.75 from $0.83 per share in the same period last year.

On average, 14 analysts polled by Thomson Reuters expected the company to report earnings of $0.77 per share for the quarter.

Net interest income on a tax-equivalent basis grew 3.8% to $144.9 million from $139.7 million a year earlier, helped primarily by an increase in the average volume of earning assets and was partly offset by a decrease in the net interest margin.

Non-interest income declined to $69.5 million, from $77.3 million in the corresponding period last year. Non-interest expense rose to $132.2 million from $123 million in the year-ago quarter.

Net interest margin declined to 4.12% from 4.74% in the year ago quarter. Return on average assets and return on average equity were 1.11% and 9.7% respectively, compared to 1.44% and 12.39% in the same period last year.
The provision for possible loan losses was $16.9 million, compared to $18.9 million in the year-ago quarter. Allowance for possible loan losses as a percentage of loans increased to 1.45% from 1.25% for the same quarter of 2008. Net charge-offs were $16.3 million or 0.75% of average loans compared with $6.4 million or 0.30% of average loans in the year-ago quarter.

Average loans for the quarter increased slightly to $8.6 billion, from $8.4 billion a year earlier. Average deposits for the quarter were $12.8 billion, up 23% over the $10.4 billion in the year-ago quarter.

For the nine month period, earnings declined to $127.5 million or $2.14 per share from $154.3 million or $2.61 per share in the same period last year. Net interest income increased to $398.1 million from $395.9 million in the year-ago period. Non-interest income declined to $207.4 million from $218.1 million in the corresponding period last year.

CFR is currently down $1.68 or 3.32% and trades at $48.96.

To receive FREE breaking news email alerts for Cullen Frost Bankers and others in your portfolio

by RTT Staff Writer

For comments and feedback: contact editorial@rttnews.com