Headquartered in San Antonio, Cullen/Frost Bankers, Inc. (CFR) is a financial holding company with $39.4 billion in assets. The actual bank, Frost, was founded in 1868 and provides a wide range of banking services, to both businesses and individuals, across the state of Texas.
CFR is Texas’s premier hometown bank as it touts the title of being fifth in deposit market share across the state, and San Antonio as its crown jewel, where it holds the number one position. The company has offices in Arlington, Austin, Dallas, and Houston, among many other small towns dotting the state.
From an investment and valuation perspective, one must always remember that CFR operates what is arguably the best pure-Texas franchise. Driven by its sheer size and ability to tap different parts of the states at different times for continued growth, the share price is likely to always have a premium to