Cullen/Frost Bankers, Inc. is a financial holding company, headquartered in San Antonio, Texas, with assets of $9.6 billion  at December 31, 2002. Frost National Bank operates 78 financial  centers across Texas in Austin, Boerne, Corpus Christi, Dallas, Fort Worth, Galveston, Harlingen, Houston, McAllen, New Braunfels, San Antonio and San Marcos. The corporation provides  a full range of commercial and consumer banking products, investment, trust and brokerage services, insurance products  and investment banking services. The annual meeting of shareholders is scheduled for  May 21, 2003, at 10 a.m. in the Commanders Room of Frost National Bank, 100 West Houston Street, San Antonio,Texas. TABLE OF CONTENTS Financial Highlights 1 Letter to Shareholders 2 Appendix: Form 10-K 7