Professor Elam

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Let’s Compare

Friday April 16 2010

We are studying earnings per share. Let's compare Sterling Bank SBIB with Cullen Frost Bank CFR.

Picture 11

Now go to finance.yahoo.com and enter SBIB. At bottom left you will see the income and cash flow statements. One can view quarterly or annuals. Hmm, what do you find?

As you can see SBIB is in a downtrend, why, what do the financial results tell you?

Picture 12
 Cullen Frost on the other hand is a considerably different picture. Go to the same stats for CFR. What do you find?  The share prices of CFR are breaking out to the upside. This is a combination of two factors I think. One, CFR has consistent earnings and cash flow. After the chaos of the last few years. bank customers are seeking safe harbors in the storm. CFR has no credit cards and no mortgages. No wonder it is a safe harbor in the storm.   

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3 responses to “Let’s Compare”

  1. Kristin Hinojosa Avatar
    Kristin Hinojosa

    Because CFR has no credit cards and mortgages then it would save more money because their is no unpaid debt. During this hard time people are finding it hard to pay back their credit card debt, loans, and mortgages which has the financial institutions at a loss of money if unpaid. Banks that have less accounts that are on a loan basis usually do better and struggle less with unpaid debt. That is why CFR is doing better and consider a “safe harbor” than SBIB.

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  2. Franchesca Avatar
    Franchesca

    Wow CFR has invested in many assets. CFR has made some very smart method in not having card cards or mortages. Now you can see that it has paid off. SBIB is low on the balance sheet compared to CFR maybe becuase of all the debt that has acumalated over time.

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  3. LeAnna Nesbitt Avatar
    LeAnna Nesbitt

    Frost Bank has been known to stay pretty much in their own regional market and risk taking excursions. They avoided subprime mortgaging melt downs. They kept their capital reserves at a very well funded level. Their loan loss experience is much lower than other banks too. I highly recommend Frost Bank, being that I worked there for 4 years. Frost Bank is only in Texas, but is a strong institution with core values.

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