Cullen/Frost Bankers Inc., the San Antonio-based parent of Frost Bank, plans to move its primary listings from the New York Stock Exchange to the Texas Stock Exchange. The transfer covers its common stock and Series B preferred-stock depositary shares: both are expected to stop trading on the NYSE after the market closes Nov. 11 and begin trading on the Texas exchange when the market opens Nov. 12. The symbols, CFR and CFR.PrB, will remain unchanged, and shareholders do not need to take action, according to the company’s announcement.
Cullen/Frost reported $54.5 billion in assets as of Sept. 30 and described itself as one of the 50 largest U.S. banks in its announcement. The company says Frost was founded in San Antonio in 1868. The San Antonio Express-News reported that Cullen/Frost’s NYSE listing began Aug. 14, 1997, under the ticker CFBI, making the transfer the end of a 29-year affiliation with the exchange.
Other financial firms have moved to the Texas exchange
Texas Capital Bancshares Inc., parent of Texas Capital Bank, transferred its primary listing from Nasdaq, and its common and preferred stock began trading on the Texas Stock Exchange Oct. 8, according to Yahoo Finance. The Express-News reported that Texas Capital had about $34 billion in assets in July. International Bancshares Corp., parent of IBC Bank, also moved its common-stock listing from Nasdaq to the Texas exchange under the ticker IBOC; the Express-News reported that it had about $17 billion in consolidated assets.
Origin Bank, based in Choudrant, Louisiana, announced a move from the NYSE on Sept. 15 and began trading on the Texas exchange Oct. 13 under its existing ticker, OBK, according to an Origin Bancorp announcement. The bank had approximately $10.2 billion in assets as of July 30, the Express-News reported.
Exchange draws backing from major financial firms
Charles Schwab Corp. is a founding institutional backer of the Texas Stock Exchange, although its own primary listing remains on the NYSE, the Express-News reported. State Street Corp. has also invested in the exchange, bringing its total equity capital to $440 million, according to Bloomberg. Bloomberg reported that State Street joined backers including BlackRock Inc. and JPMorgan Chase & Co.
TXSE listing standards
For investors asking how TXSE’s requirements compare with those at established exchanges, a U.S. Securities and Exchange Commission order published in the Federal Register says the exchange’s proposed initial and continuing listing standards are substantially similar to standards used by the Nasdaq Global Select Market, Nasdaq, NYSE or IEX. The SEC also found TXSE’s proposed corporate-governance listing standards consistent with Section 6(b)(5) of the Securities Exchange Act and compliant with requirements of Section 10A(m) and Rule 10A-3.
