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And balances we kicked off our week long series today this show.
Is taking a close look at the state of the nation's regional and community banks with the CEO the company whose assets top twenty billion dollars in 2011 stopped.
Jumped over 20% just in the past six months how about that they haven't seen yet sex is based.
Cullen/Frost bankers joins me now it's great to having your near by the way it's my pleasure thank you yeah I know it's tough to -- Texas because the state has been so.
Good to you and the customer base has been so strong with you what you account for the fact that you have.
Your annual earnings hit new records in 2011 what you do right that other banks did not do.
Right now it's history in the customers -- that it sounds so simple but but we're so focused.
-- having a great staff have and a philosophy that's taking care of customers.
Listen -- to him.
And being responsive and when we get like JD powers has given us the number one award the last two years -- -- managed morning.
One actual awards to me that validates how we're doing business.
We have several analysts just up the price target on a second -- if you apply pressure when you see that happening because.
You get FBI are Jeffries RBC -- raising their price targets from you all recently based on your annual earnings for 2011.
GD worry that you're not gonna meet expectations and.
-- really don't think about it you know and I think about is long does that take good carrier customers and I say we.
And I wonderful staff place your customers those things work now.
Okay seeking out and are believed to come about -- they called to the best run bank.
And the nascent -- other well but that was very very good complement for you actually applied to change your status you -- -- be state regulated right instead.
Being nationally regulated -- making that move now -- and.
Where we don't change very often we've only been their cents 189 and and so hot as a national bank but.
I think it's really important I think -- simplify.
What we're done with our regulators I think -- be better communications.
Because we will be a state member bank which remains will be estate bank.
And regulated by the state and the Federal Reserve in.
Now and you'll say you'll save money and we'll actually help them about Archie that you're OK and went into the analysts are gonna perk up to that let me ask you of the first bank to turned -- her.
-- one in the country right to the timing are you glad that you did.
-- guess as it turned out very very decision we don't realize that they have.
Because if you remember if you're good enough you can have the TARP money if you're not -- -- you won't have it so we had a challenge which is our capital was strong.
Really where most -- were given.
We have -- liquidity so we didn't need the money.
And so we made that decision and we had to quickly go tell investors and not only way okay but we're strong and we don't need the money.
You also got out of the -- the residential mortgage business in 2000 I believe we correct you avoided.
Financial crisis because about one decision would you ever consider going back to residential mortgages now that things have.
Seemingly begun to stabilize.
You know it's they've -- is so complicated mortgage business doesn't have to become period if the borrower will put.
Some money in some cash money into the -- and the bank continues to own the Paper.
And if it doesn't work out you foreclose on the house it's pretty simple business but now -- is so complex who have all the laws.
That not at this time I would -- Let me ask you about Dodd-Frank and the -- of particular dot frightened many see as a regional banks to come on to the show and said to me.
Yes it's gonna be expensive no I don't like it or -- -- right.
Well it's a dump -- bill and it had tremendous.
They go way beyond whatever and camp.
And so it's not good for the industry you -- it's an impact earnings.
Well it's gonna race because there's no question about it -- compliance cost and there's a lot of other factors -- we got to remember there's still only half.
Of the interpretations.
Of the bill have been done by the regulators we still have a lot of interpretation.
Stock up twenty my personal ethics -- -- all the pressure gonna keep apartment I mean that's a big job.
Well if you if you focus on the customer it works have been we've been doing it for a hundred years all right -- Dick Evans it's great to have you on the show right now Cullen/Frost chairman and CEO great way to kick off.
Our series but I Texas bank by the --