{"data":{"id":"sw_65909bc74185fe7a367e","slug":"cullen-frost-s-4-45-series-b-preferred-trades-35-below-par-months-after-becoming","title":"Cullen/Frost's 4.45% Series B Preferred Trades 35% Below Par Months After Becoming Callable","subheadline":"CFR'B has been redeemable since December 2025, yet shares last traded at $16.23, well under the $25 liquidation preference.","summary":"Cullen/Frost Bankers' 4.45% Series B non-cumulative preferred has traded roughly 35% below its $25 par value even after passing its December 2025 call date, a gap wider than its bank-preferred peer group average.","body":"Cullen/Frost Bankers' 4.45% Series B non-cumulative perpetual preferred stock, traded under symbols including CFR-B and CFR.PRB, last changed hands at $16.23 a share, a discount of roughly 35% to its $25 liquidation preference, even though the security has been callable by the San Antonio-based bank holding company since December 15, 2025. The pattern first stood out in data tracked on Preferred Stock AI, a Madison Labs research site, which lists the issue's current yield at 6.85% against an original coupon of 4.45%.\n\nThe gap between market price and par value on a callable security is not, by itself, unusual: once a preferred stock's call date has passed, the issuer has no obligation to redeem it, and redeeming shares at $25 when the market values them at roughly $16 would offer Cullen/Frost no economic benefit. That dynamic also explains why the Preferred Stock AI page lists \"yield to call\" as not applicable, with the shares already callable at management's discretion, the metric that typically frames a preferred's total return no longer applies in the conventional sense, leaving current yield as the more relevant reference point for income-focused holders.\n\nFor investors, the structure carries specific terms worth noting independent of any price view. CFR'B is non-cumulative, meaning that if Cullen/Frost were ever to suspend the dividend, missed payments would not accrue or need to be repaid later, a feature common to bank-issued preferred stock and tied to its treatment as a source of regulatory capital. The issue is also perpetual, with no maturity date, and pays quarterly on a fixed schedule of March, June, September and December 15. According to the site's category data covering 76 bank preferred issues, the average discount to par across that group is 15.9%, versus 35.1% for CFR'B, while the average yield across the category sits below the 6.85% figure attached to this issue, meaning the Series B currently screens wider on both discount and yield than its immediate peer set.\n\nCullen/Frost Bankers is the holding company for Frost Bank, which has operated in Texas since 1868 and today serves commercial and consumer customers across Houston, Dallas, Austin, Fort Worth and San Antonio, with lending exposure to energy, manufacturing, construction, healthcare and transportation. The Series B preferred was issued in November 2020, when 6,000,000 depositary shares were originally offered, each representing a 1/40th interest in the underlying preferred stock, according to the company's SEC prospectus. The fixed 4.45% coupon was set in a considerably lower interest-rate environment than the one prevailing since, which helps explain why a fixed-rate instrument from that period would need to trade below par to deliver a yield competitive with newer issuance.\n\nThe preferred's price behavior stands apart from that of Cullen/Frost's common stock, which closed at $148.00, near the top of its 52-week range of $119.00 to $148.97, according to the same market data. Recent news coverage of the company has centered on the common shares rather than the preferred: Zacks Investment Research published a piece on September 7 discussing Cullen/Frost's prospects, Simply Wall St examined the stock's valuation on September 4, and Yahoo Finance reviewed the company's post-earnings outlook and dividend profile in early September. None of that coverage addressed the Series B preferred specifically.\n\nLooking ahead, market participants tracking CFR'B are likely to watch whether Cullen/Frost takes any action on the now-callable shares, a decision that rests entirely with the company and has not been announced. The preferred's next scheduled ex-dividend date following its most recent payment, and its quarterly dividend history dating back to 2023, remain the primary income data points for holders, while its price relative to par will continue to reflect broader fixed-income rate conditions as much as anything specific to Cullen/Frost's credit profile. No party cited in this article has issued a public price target or redemption timeline for the Series B preferred.","source":{"name":"Preferred Stock AI","slug":"preferredstock-ai"},"category":"Preferred Stocks","article_type":"Data Story","license":"Free to republish, in full or in part, with attribution to SourceWire and a link to the original article. No fees, registration, or permission required.","quality_score":87,"human_reviewed":false,"original_url":"https://preferredstock.ai/symbol/CFR-P-B","featured_image":null,"published_at":"2026-09-09T11:24:31.220294+00:00","updated_at":"2026-09-09T11:24:31.220294+00:00","is_demo":false,"attribution":"Via SourceWire. Discovered via Preferred Stock AI.","attribution_html":"Via SourceWire. Discovered via <a href=\"https://preferredstock.ai/symbol/CFR-P-B\">Preferred Stock AI</a>."},"meta":{"demo_data":false}}