Cullen/Frost Bankers (CFR) in San Antonio has agreed to refrain from announcing more acquisitions until it improves its compliance programs.
The $25 billion-asset company said the arrangement was tied to securing approval from the Federal Reserve Board for its $220 million acquisition of WNB Bancshares in Odessa, Texas. Cullen/Frost expects to close the deal on May 30.
"As part of the approval process, we agreed with the Federal Reserve that before bringing them any further expansionary proposals, we would spend some time and effort enhancing our compliance programs, including those related to fair lending," Dick Evans, the company's chief executive, said in a press release. "Work on these enhancements has been under way for some time."
Cullen/Frost will convert two of WNB's branches on June 20. It will close WNB's San Antonio branch the same day.