Texas-Based Frost CFO Affirms: "We Stand Firm as a Steadfast Bank in the Lone Star State"
Frost Bank, a 157-year-old San Antonio-based lender, has proven its resilience yet again as its operations remain unaffected by the recent floods, with all branches staying open. This consistency and dependability have been a hallmark of the bank for decades.
While communities in Kerrville, Hunt, and Ingram, Texas, have been among the hardest hit by the flash floods, causing tragic losses with at least 110 reported deaths and 173 people still missing as of Wednesday, Frost Bank is doing its part to help. The bank is offering emergency disaster loans and contacting customers in affected areas to discuss temporary loan payment deferrals.
A key factor in Frost Bank's success is its focus on employee retention. The bank has been able to attract and retain qualified employees, thanks to changes in organization, compensation, and benefit plans that enhance employee satisfaction and loyalty. This emphasis on internal organizational improvements sets Frost Bank apart from other banks.
Dan Geddes, the bank's chief financial officer, has been at Frost Bank for 28 years and values the bank's workforce. He mentioned that Frost Bank recruits bankers who choose to work with them, not those inherited from acquired banks. Acquiring teams of bankers can create subcultures within Frost Bank's organization, which Geddes aims to avoid.
Frost Bank's expansion strategy involves "planting trees, not corn," requiring patience. The average age of new branches is about five years in Houston, two years in Dallas, and less than one year in Austin, where Frost Bank plans to double its branch presence. The bank has a more significant presence in San Antonio and Corpus Christi, with a 10% branch share and 27% deposit market share in San Antonio, and a 9% branch share and 25% market share in Corpus Christi.
In Houston and Dallas, Frost Bank has room to grow, with smaller market shares compared to San Antonio and Corpus Christi. The bank competes with money center banks by focusing on customer service, personal touch, and the ability to talk to decision-makers.
In terms of market share, in Houston, Frost Bank has about 5% of bank branch share and 2.5% deposit market share, while in Dallas, it has a 3.6% branch share and about 1% deposit market share.
Frost Bank is not currently pursuing expansion through M&A. Instead, it is directing a $500,000 grant to the Community Foundation of the Texas Hill Country's Kerr County Flood Relief Fund and other local flood-relief efforts.
As Frost Bank continues to grow and adapt, its culture remains a top priority for Dan Geddes. The bank's commitment to its employees, customers, and communities is evident in its actions during times of crisis and in its strategic growth plans.
The bank's focus on business operations has shown resilience, as its financial services remained operational during the recent floods, with all branches staying open. In response to the disaster, Frost Bank is offering emergency loans and contacting customers in affected areas to discuss temporary loan payment deferrals, showcasing their commitment to their customers' financial well-being.
