The one name on the KBW list rated "underperform" by the firm is Cullen/Frost Bankers ( CFR) of San Antonio. The rating reflects a premium valuation for the shares, which in turn reflects the company's very long and very consistent track record of strong earnings performance, with no surprises.  The bank was one of the strongest industry earners for the 10-year period through 2012, with no surprises.

Cullen/Frost had $23.5 billion in total assets as of Sept. 20.  The company's ROTCE for the first three quarters of 2013 was 13.02%.  The shares closed at $72.93 Friday and traded for 2.4 time tangible book value, for 17.9 times the consensus 2014 EPS estimate of $4.07, and for 17.1 times the consensus 2015 EPS estimate of $4.25.

The following chart shows Cullen/Frost's stock performance this year, against the KBW Bank Index and the S&P 500:

CFR Chart
CFR data by YCharts

Interested in more on Cullen/Frost Bankers? See TheStreet Ratings' report card for this stock.


-- Written by Philip van Doorn in Jupiter, Fla.



>Contact by Email.

Philip W. van Doorn is a member of TheStreet's banking and finance team, commenting on industry and regulatory trends. He previously served as the senior analyst for TheStreet.com Ratings, responsible for assigning financial strength ratings to banks and savings and loan institutions. Mr. van Doorn previously served as a loan operations officer at Riverside National Bank in Fort Pierce, Fla., and as a credit analyst at the Federal Home Loan Bank of New York, where he monitored banks in New York, New Jersey and Puerto Rico. Mr. van Doorn has additional experience in the mutual fund and computer software industries. He holds a bachelor of science in business administration from Long Island University.

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