Duff & Phelps Credit Rating Co. upgraded the short-term credit ratings of Cullen/Frost Bankers' lead bank.
The rating of Frost National Bank of San Antonio is upgraded to Duff 1-minus from Duff 2, an indication of a company with strong liquidity and minor risk.
Cullen/Frost has total assets of $3.5 billion and is the largest independent bank holding company based in Texas. The lead bank has around 80% of those assets.
D&P said the upgrade reflects the bank's substantial improvement in operating fundamentals, including asset quality, earnings, and capital. Cullen/Frost's third quarter return on assets was 1.34% versus 0.96% a year before.
Nonperforming assets declined to $38.9 million, equal to 3.3% of loans and other real estate owned.
At the end of the third quarter, loans were only 33% of total assets, compared to around 60% at most regional banks. That low level of loans means a very liquid balance sheet.
Big banks aren't the only ones buying back stock to manage their growing levels of capital.
Franklin Bank announced plans to redeem up to 200,000 shares of Series A preferred stock. The Southfield, Mich., bank, with $388 million in assets, has 908,000 preferred shares outstanding.
Under the terms of the redemption, each share of preferred that will be redeemed coverts into 1.297 shares of common stock. The redemption price is $10.40 plus accrued dividends. A shareholder who elects to convert would receive common stock worth $11.67 a share, the bank said.
Roosevelt Savings, Too
T.R. Financial Corp., the holding company for Roosevelt Savings Bank, announced that it may repurchase up to 5%, or 568,100 shares, of its common stock.
Any repurchases of more than 4.8% of the outstanding shares won't happen until T.R. Financial obtains federal and state regulatory approvals.
John M. Tsimbinos, chairman of the holding company, said the buyback is in the best interest of T.R. Financial Corp. and its stockholders.
