Cullen Frost: Preferred Shares Offer 6.7% Yield

Cullen Frost Bankers common shares have surged over 30% YTD, making upside limited at current valuations. I prefer the CFR.PR.B preferred shares, trading at a 34% discount to par and yielding 6.7%, as an alternative income play.

CFR's loan growth remains robust at 8.2% YoY, with a conservative 52% loan-to-deposit ratio supporting stable funding. The bank's allowance for credit losses is adequate at 1.2% of gross loans, mitigating near-term credit risk concerns.

Cullen Frost Bankers ( CFR ) is a Texas based regional bank. The bank’s common shares have had a robust 2026, with gains of over 30% year to date. Along with the common shares, the bank also offers a preferred share class.