This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

10 Bank Stocks Bringing Home the Bacon (Mmm... Bacon)

Stocks in this article: USB BOH CFR PRSP FFBC OZRK WABC FFIN CHCO SBSI BAC C JPM WFC

9. Cullen/Frost Bankers

Shares of Cullen/Frost Bankers (CFR - Get Report) of San Antonio, Texas, closed at $49.87 last Friday, declining 16% year-to-date. Based on a quarterly payout of 46 cents, the shares have a dividend yield of 3.69%.

The company's year-to-date ROA was 1.19% as of Sept. 30, and its five-year average ROA was 1.34%.

Cullen/Frost had $19.5 billion in total assets as of Sept. 30, with 132 branches in Texas.

Third-quarter net income was $54.5 million, or 89 cents a share, declining from $55.7 million, or 91 cents a share, in the second quarter, and $55.0 million, or 90 cents a share, in the third quarter of 2010. A 3.1% year-over-year increase in net interest income, to a tax-adjusted $160.6 million in the third quarter, was more than offset by the correction of "an under-accrual of taxes from incorrectly deducting premium amortization on municipal bonds since 2008,: which "resulted in the unusually high effective tax rate in the third quarter of 30.3 percent" in the third quarter, with $6 million in additional income tax expenses.

The shares trade for 13.6 times the consensus 2012 EPS estimate of 3.64, among analysts polled by FactSet, and 1.8 times tangible book value, according to SNL.

Out of 14 analysts covering Cullen/Frost Bankers, only one rates the shares a buy, while 11 analysts have neutral ratings and Brett Rabatin of Sterne Agee recommends selling the shares.

In a report published on Oct. 26, Rabatin called Cullen/Frost "qualitatively one of the best banks in the country" but said it was "likely the premium valuation was not likely to move much higher vis-à-vis the industry," and that the bank's "overall profitability may continue to decline towards peers in the pervasive low interest rate environment."

3 of 11

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,302.41 +111.04 0.65%
S&P 500 2,005.15 +2.99 0.15%
NASDAQ 4,634.2730 -3.7210 -0.08%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs