Cullen/frost Bankers Inc. has a market cap of $3.1 billion; its shares were traded at around $51.7 with a P/E ratio of 18.3 and P/S ratio of 3.7. The dividend yield of Cullen/frost Bankers Inc. stocks is 3.3%. Cullen/frost Bankers Inc. had an annual average earning growth of 8.5% over the past 10 years. GuruFocus rated Cullen/frost Bankers Inc. the business predictability rank of 2.5-star.CFR is in the portfolios of Westport Asset Management, Bruce Kovner of Caxton Associates, Jeremy Grantham of GMO LLC.
Highlight of Business Operations:Cullen/Frost Capital Trust II (Trust II) is a Delaware statutory business trust formed in 2004 for the purpose of issuing $120.0 million in trust preferred securities and lending the proceeds to Cullen/Frost. Summit Bancshares Statutory Trust I (Summit Trust) is 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, Inc. in 2006. Cullen/Frost guarantees, on a limited basis, payments of distributions on the trust preferred securities and payments on redemption of the trust preferred securities.
Although the accounts of the Capital Trusts are not included in the Corporations consolidated financial statements, the $132.0 million in trust preferred securities issued by these subsidiary trusts 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 $132.0 million in trust preferred securities in Tier 1 capital.
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, 2009, Frost Bank had consolidated total assets of $16.3 billion and total deposits of $13.3 billion and was one of the largest commercial banks headquartered in the State of Texas.
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