Cullen Frost Bk has a market cap of $3.55 billion; its shares were traded at around $58.27 with a P/E ratio of 16.9 and P/S ratio of 4.3. The dividend yield of Cullen Frost Bk stocks is 3.1%. Cullen Frost Bk had an annual average earning growth of 5.9% over the past 10 years.Hedge Fund Gurus that owns CFR: Jim Simons of Renaissance Technologies LLC. Mutual Fund and Other Gurus that owns CFR: Westport Asset Management, Richard Aster Jr of Meridian Fund, Chuck Royce of Royce& Associates.
Highlight of Business Operations:Although the accounts of Trust II are not included in the Corporations consolidated financial statements, the $120.0 million in trust preferred securities issued by Trust II are included in the Tier 1 capital of Cullen/Frost for regulatory capital purposes. The aggregate amount of restricted core capital elements (which includes trust preferred securities, among other things) that may be included in the Tier 1 capital of most bank holding companies, including Cullen/Frosts, is limited to 25% of all core capital elements, including restricted core capital elements, net of goodwill less any associated deferred tax liability. Amounts of restricted core capital elements in excess of these limits generally may be included in Tier 2 capital. The quantitative limits do not currently preclude the Corporation from including the $120.0 million in trust preferred securities in Tier 1 capital. As further discussed below, provisions of the recently enacted Dodd-Frank Wall Street Reform and Consumer Protection Act will apply the same leverage and risk-based capital requirements that apply to insured depository institutions to most bank holding companies, which, among other things, will require the Corporation to deduct, over three years beginning January 1, 2013, all trust preferred securities from the Corporations Tier 1 capital.
In July 2010, the Corporation redeemed $12.4 million of floating rate (three-month LIBOR plus a margin of 2.65%) junior subordinated deferrable interest debentures, due July 7, 2034, held of record by Summit Bancshares Statutory Trust I (Summit Trust). Concurrently, the $12.0 million of floating rate (three-month LIBOR plus a margin of 2.65%) trust preferred securities issued by Summit Trust were also redeemed. Summit Trust was a Delaware statutory trust formed in 2004 for the purpose of issuing $12.0 million in trust preferred securities. Summit Trust was acquired by Cullen/Frost through the acquisition of Summit Bancshares in December 2006.
The Frost National Bank (Frost Bank) is primarily engaged in the business of commercial and consumer banking through more than 110 financial centers across Texas in the Austin, Corpus Christi, Dallas, Fort Worth, Houston, Rio Grande Valley and San Antonio regions. Frost Bank was chartered as a national banking association in 1899, but its origin can be traced to a mercantile partnership organized in 1868. At December 31, 2010, Frost Bank had consolidated total assets of $17.6 billion and total deposits of $14.5 billion and was one of the largest commercial banks headquartered in the State of Texas.
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