Following the recent approval by the Federal Reserve,
Cullen/Frost Bankers, Inc.
) closed the cash plus stock deal to get Texas based WNB
Bancshares, Inc. merged into its banking subsidiary Frost Bank. The
deal was inked in Aug 2013.
As per the deal, all the 7 WNB Bancshares locations in Midland and
Odessa merged into Frost Bank and will be recognized under the
brand of Frost. As Cullen/Frost already has 22 financial centers in
San Antonio, WNB Bancshares' San Antonio based branch was closed.
Owing to the deal, Cullen/Frost now has more than 120 financial
centers in Texas. The company assumed assets worth $1.8 billion
while adding loan and deposit balances of $668.3 million and 1.6
billion, respectively. Moreover, the transaction is expected to
contribute about 4% to Cullen/Frost's 2014 earnings per share
(excluding the restructuring charges).
The merger deal will enable Cullen/Frost to capitalize on the
booming Midland and Odessa markets of The Permian Basin, thereby
further strengthening its Texas franchise. On the other hand, the
venture seems beneficial to the customers of WNB Bancshares too, as
it facilitates access to Cullen/Frost's wide range of financial
products and services.
Cullen/Frost currently holds a Zacks Rank #3 (Hold). Some
better-ranked stocks in the banking space include
CVB Financial Corp.
Community National Bank
Central Pacific Financial Corp.
). All three stocks carry a Zacks Rank #1 (Strong Buy).
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