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Keefe, Bruyette & Woods Upgrades Regional Banks

May 18, 2009 8:25 AM EDT
CFR Hot Sheet
Rating Summary:
    0 Buy, 5 Hold, 2 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 16 | Down: 7 | New: 23
Keefe, Bruyette & Woods upgrades Cullen/Frost Bankers (NYSE: CFR), Prosperity Bancshares (Nasdaq: PRSP), First Financial Bankshares (NASDAQ: FFIN) and Southside Bancshares (Nasdaq: SBSI) to Market Perform.

Keefe analyst says, "After looking over the past due 30-89 days and nonaccrual loan data for the Texas banks, we are becoming more positive on the group despite headwinds that may appear later in the year. As a result, we are upgrading CFR,PRSP, FFIN and SBSI to Market Perform from Underperform. We are increasing the target prices of PRSP to $25, FFIN to $44 and SBSI to $19."

"There remain many mixed signals for the future of the Texas economy. While we are beginning to see
stabilization of energy prices at healthier levels than earlier in the year, we also continued to be concerned with increasing unemployment in the state."

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