PR Newswire | Jul 30, 2020 09:01AM EDT

07/30 08:00 CDT

Cullen/Frost Reports Second Quarter ResultsBoard declares third quarter dividend on common stock SAN ANTONIO, July 30, 2020

SAN ANTONIO, July 30, 2020 /PRNewswire/ -- Cullen/Frost Bankers, Inc. (NYSE:CFR) today reported second quarter 2020 results. Net income available to common shareholders for the second quarter of 2020 was $93.1 million, compared to $109.6 million in the second quarter of 2019. On a per-share basis, net income available to common shareholders for the second quarter of 2020 was $1.47 per diluted common share, compared to $1.72 per diluted common share reported a year earlier. Returns on average assets and average common equity were 0.99 percent and 9.60 percent, respectively, for the second quarter of 2020 compared to 1.40 percent and 12.60 percent, respectively, for the same period a year earlier.

For the second quarter of 2020, net interest income on a taxable-equivalent basis was $269.7 million, down 2.9 percent compared to the same quarter in 2019. Average loans for the second quarter of 2020 increased $3.2 billion, or 22.1 percent, to $17.5 billion, from the $14.4 billion reported for the second quarter a year earlier. Excluding PPP loans, second quarter average loans of $15.1 billion represented a 4.7 percent increase compared to the second quarter of 2019. Average deposits for the quarter were $31.3 billion, up $5.3 billion, or 20.5 percent, compared to the $26.0 billion reported for last year's second quarter.

"Our second quarter results demonstrate our continued commitment to serving our customers and our communities during these challenging times," said Phil Green, Cullen/Frost Chairman and CEO. "We finished the second quarter with approximately $3.2 billion in PPP loans outstanding. I'm extraordinarily proud that our company has been such a source of strength for our customers and our communities, and also a force for good in their lives."

For the first six months of 2020, net income available to common shareholders was $140.3 million, down 37.4 percent compared to $224.1 million for the first six months of 2019. Diluted EPS available to common shareholders for the first six months of 2020 was $2.21 compared to $3.51 in the year-earlier period, representing a decrease of 37.0 percent. Returns on average assets and average common equity for the first six months of 2020 were 0.79 percent and 7.24 percent, respectively, compared to 1.44 percent and 13.32 percent, respectively, for the same period in 2019.

Noted financial data for the second quarter of 2020 follows:

* For the second quarter of 2020, credit loss expense related to loans was $27.2 million, compared to net charge-offs of $41.0 million. This compares with $172.9 million in credit loss expense related to loans and $38.6 million in net charge-offs for the first quarter of 2020, and $6.4 million in credit loss expense related to loans and $7.8 million in net charge-offs in the second quarter of 2019. The allowance for credit losses on loans as a percentage of total loans was 1.39 percent at June 30, 2020, compared to 1.72 percent at the end of the first quarter of 2020 and 0.93 percent at the end of the second quarter of 2019. Excluding PPP loans which carry a guarantee from the SBA, the allowance for credit losses on loans as a percentage of total loans was 1.69 percent at the end of the second quarter of 2020. Non-performing assets were $85.2 million at the end of the second quarter of 2020, compared to $67.5 million at the end of the first quarter of 2020 and $76.4 million at the end of the second quarter of 2019. Credit loss expense related to off-balance-sheet credit exposures was $4.8 million in the second quarter of 2020, compared to $2.3 million in the first quarter of 2020. * The Common Equity Tier 1, Tier 1 and Total Risk-Based Capital Ratios at the end of the second quarter of 2020 were 12.48 percent, 12.48 percent and 14.43 percent, respectively, and continue to be in excess of well-capitalized levels and exceed Basel III minimum requirements. * Net interest income on a taxable-equivalent basis was $269.7 million, a decrease of 2.9 percent compared to the prior year period. The net interest margin was 3.13 percent for the second quarter of 2020, down 43 basis points compared to the first quarter of 2020 net interest margin of 3.56 percent. Net interest margin decreased 72 basis points compared to 3.85 percent in the year-ago period. * Non-interest income for the second quarter of 2020 totaled $77.6 million, a decrease of $5.0 million, or 6.1 percent, from the $82.6 million reported for the second quarter of 2019. Service charges on deposits for the second quarter decreased $4.2 million, or 19.4 percent, compared to the same period in 2019. The decrease was primarily related to decreases in overdraft/insufficient funds charges on consumer and commercial accounts. Overdraft/insufficient funds charges were impacted by lower volumes in the second quarter. Other charges, commissions and fees for the second quarter decreased $1.3 million, or 14.2 percent, compared to the second quarter of 2019. The decrease was driven by a decrease in sales of investment products and services, among other things. Interchange and debit card transaction fees decreased by $902,000, or 23.3 percent, compared to the second quarter a year earlier. Revenue from interchange and debit card transactions was impacted by reduced transaction volumes resulting from the COVID-19 pandemic. Trust and investment management fees and insurance commissions and fees for the second quarter each increased by approximately $600,000 (2.0 percent and 5.4 percent, respectively) compared to the second quarter of 2019. The increase in trust investment fees was primarily related to an increase in the number of accounts. The increase in insurance commissions and fees was driven by increased commissions from commercial lines and, to a lesser extent, increased commissions on sales of personal lines property and casualty insurance. * Non-interest expense was $199.7 million for the quarter, down $3.5 million, or 1.7 percent, compared to the $203.2 million reported for the second quarter a year earlier. Other non-interest expense of $36.1 million represented a $10.2 million, or 22.0 percent, decrease compared to the second quarter of 2019. The decrease was driven by decreases in advertising/promotions expense (down $3.1 million); travel, meals and entertainment expense (down $3.0 million); and business development expense (down $806,000), among other things. Another driver of the decrease in other non-interest expense in the second quarter of 2020 was $1.8 million in PPP-related expense deferrals. Employee benefits expense for the second quarter of 2020 decreased $1.2 million, or 5.9 percent, compared to the same period in 2019. The decrease in employee benefits expense during the three months ended June 30, 2020 was primarily related to decreases in certain discretionary benefit plan expenses partly offset by an increase in medical benefits expense and payroll taxes. Salaries and wages expense was $90.4 million in the second quarter of 2020, down $440,000 or 0.5% compared to the second quarter of 2019. The decrease was primarily related to the deferral of some salary costs as loan origination costs in connection with the high volume of PPP loan originations during the second quarter of 2020. PPP-related salary expense deferrals in the second quarter of 2020 were $5.5 million. Second quarter net occupancy expense increased by $4.1 million, or 19.6 percent, compared to the same period in 2019, primarily driven by our move starting in June of 2019 into our new corporate headquarters building in San Antonio and other leases related to existing facilities and to our expansion within the Houston market area. Technology, furniture and equipment expense for the second quarter increased by $3.9 million or 17.6 percent from the second quarter of 2019. The increases were primarily related to increases in cloud services expense (up $2.4 million), depreciation of furniture and equipment (up $961,000) and software maintenance expense (up $523,000).

The Cullen/Frost board declared a third-quarter cash dividend of $0.71 per common share, payable September 15, 2020 to shareholders of record on August 31 of this year.

Cullen/Frost Bankers, Inc. will host a conference call on Thursday, July 30, 2020, at 10 a.m. Central Time (CT) to discuss the results for the quarter. The media and other interested parties are invited to access the call in a "listen only" mode at 1-800-944-6430 or via webcast on our investor relations website linked below. Playback of the conference call will be available after 2 p.m. CT on the day of the call until midnight Sunday, August 2, 2020 at 855-859-2056 with Conference ID # of 9885929. A replay of the call will also be available by webcast at the URL listed below after 2 p.m. CT on the day of the call.

Cullen/Frost investor relations website: www.frostbank.com/investor-relations/

Cullen/Frost Bankers, Inc. (NYSE: CFR) is a financial holding company, headquartered in San Antonio, with $39.4 billion in assets at June 30, 2020. Frost provides a wide range of banking, investments and insurance services to businesses and individuals across Texas in the Austin, Corpus Christi, Dallas, Fort Worth, Houston, Permian Basin, Rio Grande Valley and San Antonio regions. Founded in 1868, Frost has helped clients with their financial needs during three centuries. Additional information is available at www.frostbank.com.

Forward-Looking Statements and Factors that Could Affect Future Results

Certain statements contained in this Earnings Release that are not statements of historical fact constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"), including statements regarding the potential effects of the ongoing COVID-19 pandemic on our business, financial condition, liquidity and results of operations, notwithstanding that such statements are not specifically identified as such. In addition, certain statements may be contained in our future filings with the SEC, in press releases, and in oral and written statements made by us or with our approval that are not statements of historical fact and constitute forward-looking statements within the meaning of the Act. Examples of forward-looking statements include, but are not limited to: (i) projections of revenues, expenses, income or loss, earnings or loss per share, the payment or nonpayment of dividends, capital structure and other financial items; (ii) statements of plans, objectives and expectations of Cullen/Frost or its management or Board of Directors, including those relating to products, services or operations; (iii) statements of future economic performance; and (iv) statements of assumptions underlying such statements. Words such as "believes", "anticipates", "expects", "intends", "targeted", "continue", "remain", "will", "should", "may" and other similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements.

Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from those in such statements. Factors that could cause actual results to differ from those discussed in the forward-looking statements include, but are not limited to:

* Local, regional, national and international economic conditions and the impact they may have on us and our customers and our assessment of that impact. * Volatility and disruption in national and international financial and commodity markets. * Government intervention in the U.S. financial system. * Changes in the mix of loan geographies, sectors and types or the level of non-performing assets and charge-offs. * Changes in estimates of future reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements. * The effects of and changes in trade and monetary and fiscal policies and laws, including the interest rate policies of the Federal Reserve Board. * Inflation, interest rate, securities market and monetary fluctuations. * The effect of changes in laws and regulations (including laws and regulations concerning taxes, banking, securities and insurance) with which we and our subsidiaries must comply. * The soundness of other financial institutions. * Political instability. * Impairment of our goodwill or other intangible assets. * Acts of God or of war or terrorism. * The timely development and acceptance of new products and services and perceived overall value of these products and services by users. * Changes in consumer spending, borrowings and savings habits. * Changes in the financial performance and/or condition of our borrowers. * Technological changes. * The cost and effects of failure, interruption, or breach of security of our systems. * Acquisitions and integration of acquired businesses. * Our ability to increase market share and control expenses. * Our ability to attract and retain qualified employees. * Changes in the competitive environment in our markets and among banking organizations and other financial service providers. * The effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board and other accounting standard setters. * Changes in the reliability of our vendors, internal control systems or information systems. * Changes in our liquidity position. * Changes in our organization, compensation and benefit plans. * The impact of the ongoing COVID-19 pandemic and any other pandemic, epidemic or health-related crisis. * The costs and effects of legal and regulatory developments, the resolution of legal proceedings or regulatory or other governmental inquiries, the results of regulatory examinations or reviews and the ability to obtain required regulatory approvals. * Greater than expected costs or difficulties related to the integration of new products and lines of business. * Our success at managing the risks involved in the foregoing items.

Further, statements about the potential effects of the ongoing COVID-19 pandemic on our business, financial condition, liquidity and results of operations may constitute forward-looking statements and are subject to the risk that the actual effects may differ, possibly materially, from what is reflected in those forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond our control, including the scope and duration of the pandemic, actions taken by governmental authorities in response to the pandemic, and the direct and indirect impact of the pandemic on our customers, clients, third parties and us.

Forward-looking statements speak only as of the date on which such statements are made. We do not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made, or to reflect the occurrence of unanticipated events.

A.B. MendezInvestor Relations210.220.5234 orBill DayMedia Relations210.220.5427

Cullen/Frost Bankers, Inc.

CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)

(In thousands, except per share amounts)



2020 2019

2nd Qtr 1st Qtr 4th Qtr 3rd Qtr 2nd Qtr

CONDENSED INCOME STATEMENTS

Net interest $245,811 $244,521 $251,098 $253,007 $253,431 income

Net interest 269,722 268,453 275,038 276,618 277,751 income ^(1)

Credit loss 31,975 175,197 8,355 8,001 6,400 expense ^(2)

Non-interest income:

Trust and investment 31,060 34,473 32,928 31,649 30,448 management fees

Service charges on deposit 17,580 22,651 23,454 22,941 21,798 accounts

Insurance commissions and 10,668 16,485 12,138 11,683 10,118 fees

Interchange and debit card 2,966 3,255 3,608 4,117 3,868 transaction fees

Other charges, commissions and 7,663 9,365 9,020 10,108 8,933 fees

Net gain (loss) on securities - 108,989 28 96 169 transactions

Other 7,664 17,697 14,079 8,630 7,304

Total non-interest 77,601 212,915 95,255 89,224 82,638 income



Non-interest expense:

Salaries and 90,350 98,812 97,951 93,812 90,790 wages

Employee 18,861 24,889 21,651 21,002 20,051 benefits

Net occupancy 25,266 25,384 24,864 24,202 21,133

Technology, furniture and 26,046 25,240 25,759 22,415 22,157 equipment

Deposit 2,800 2,624 2,374 2,491 2,453 insurance

Intangible 241 257 264 274 305 amortization

Other 36,115 46,957 47,943 44,668 46,320

Total non-interest 199,679 224,163 220,806 208,864 203,209 expense

Income before 91,758 58,076 117,192 125,366 126,460 income taxes

Income taxes (1,314) 3,323 13,511 13,530 14,874

Net income 93,072 54,753 103,681 111,836 111,586

Preferred stock - 2,016 2,016 2,016 2,015 dividends

Redemption of - 5,514 - - - preferred stock

Net income available to $93,072 $47,223 $101,665 $109,820 109,571 common shareholders



PER COMMON SHARE DATA

Earnings per common share - $1.47 $0.75 $1.61 $1.74 $1.73 basic

Earnings per common share - 1.47 0.75 1.60 1.73 1.72 diluted

Cash dividends 0.71 0.71 0.71 0.71 0.71 per common share

Book value per common share at 63.97 61.17 60.11 59.76 57.39 end of quarter



OUTSTANDING COMMON SHARES

Period-end 62,670 62,553 62,669 62,537 62,638 common shares

Weighted-average common shares - 62,596 62,643 62,609 62,566 62,789 basic

Dilutive effect of stock 205 407 625 593 765 compensation

Weighted-average common shares - 62,801 63,050 63,234 63,159 63,554 diluted



SELECTED ANNUALIZED RATIOS

Return on 0.99 %0.57 % 1.21 %1.35 %1.40 %average assets

Return on average common 9.60 4.88 10.74 11.83 12.60 equity

Net interest income to 3.13 3.56 3.62 3.76 3.85 average earning assets



(1) Taxable-equivalent basis assuming a 21% tax rate. (2) Provision for loan losses for periods prior to the first quarter of 2020.

Cullen/Frost Bankers, Inc.

CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)



2020 2019

2nd Qtr 1st Qtr 4th Qtr 3rd Qtr 2nd Qtr

BALANCE SHEET SUMMARY

($ in millions)

Average Balance:

Loans 17,550 $14,995 $14,705 $14,471 $14,375

Earning assets 35,128 30,804 30,621 29,693 29,114

Total assets 37,838 33,534 33,314 32,248 31,491

Non-interest-bearing13,785 10,737 10,772 10,316 10,148 demand deposits

Interest-bearing 17,528 16,654 16,414 16,036 15,845 deposits

Total deposits 31,313 27,391 27,186 26,352 25,993

Shareholders' equity3,899 4,009 3,900 3,828 3,632



Period-End Balance:

Loans $17,972 $15,338 $14,750 $14,635 $14,459

Earning assets 36,613 31,440 31,281 30,358 29,216

Goodwill and 657 657 657 658 658 intangible assets

Total assets 39,378 34,147 34,027 33,098 31,817

Total deposits 32,679 28,141 27,640 27,084 25,985

Shareholders' equity4,009 3,827 3,912 3,881 3,739

Adjusted shareholders' equity3,521 3,463 3,644 3,576 3,520 ^(1)



ASSET QUALITY

($ in thousands)

Allowance for credit$250,061 $263,881 $132,167 $136,559 $134,929 losses on loans:

As a percentage of 1.39 %1.72 % 0.90 %0.93 %0.93 %period-end loans



Net charge-offs: $41,048 $38,646 $12,747 $6,371 $7,821

Annualized as a percentage of 0.94 %1.04 % 0.34 %0.17 %0.22 %average loans



Non-performing assets:

Non-accrual loans $79,461 $66,727 $102,303 $97,446 $71,521

Restructured loans 4,932 - 6,098 6,160 3,973

Foreclosed assets 806 806 1,084 1,427 907

Total $85,199 $67,533 $109,485 $105,033 $76,401

As a percentage of:

Total loans and 0.47 %0.44 % 0.74 %0.72 %0.53 %foreclosed assets

Total assets 0.22 0.20 0.32 0.32 0.24



CONSOLIDATED CAPITAL RATIOS

Common Equity Tier 1 Risk-Based Capital 12.48 %12.02 % 12.36 %12.35 %12.29 %Ratio

Tier 1 Risk-Based 12.48 12.02 12.99 12.99 12.94 Capital Ratio

Total Risk-Based 14.43 13.97 14.57 14.63 14.60 Capital Ratio

Leverage Ratio 8.01 8.84 9.28 9.36 9.40

Equity to Assets 10.18 11.21 11.50 11.73 11.75 Ratio (period-end)

Equity to Assets 10.30 11.95 11.71 11.87 11.53 Ratio (average)



(1) Shareholders' equity excluding accumulated other comprehensive income (loss).

Cullen/Frost Bankers, Inc.

CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)

(In thousands, except per share amounts)



Six Months Ended

June 30,

2020 2019

CONDENSED INCOME STATEMENTS

Net interest income $490,332 $499,900

Net interest income ^(1) 538,174 548,930

Credit loss expense ^(2) 207,172 17,403

Non-interest income:

Trust and investment management fees 65,533 62,145

Service charges on deposit accounts 40,231 42,588

Insurance commissions and fees 27,153 28,524

Interchange and debit card transaction fees 6,221 7,148

Other charges, commissions and fees 17,028 17,995

Net gain (loss) on securities transactions 108,989 169

Other 25,361 20,854

Total non-interest income 290,516 179,423



Non-interest expense:

Salaries and wages 189,162 183,266

Employee benefits 43,750 43,577

Net occupancy 50,650 40,400

Technology, furniture and equipment 51,286 43,821

Deposit insurance 5,424 5,261

Intangible amortization 498 630

Other 83,072 88,054

Total non-interest expense 423,842 405,009

Income before income taxes 149,834 256,911

Income taxes 2,009 28,829

Net income 147,825 228,082

Preferred stock dividends 2,016 4,031

Redemption of preferred stock 5,514 -

Net income available to common shareholders $140,295 $224,051



PER COMMON SHARE DATA

Earnings per common share - basic $2.22 $3.53

Earnings per common share - diluted 2.21 3.51

Cash dividends per common share 1.42 1.38

Book value per common share at end of quarter 63.97 57.39



OUTSTANDING COMMON SHARES

Period-end common shares 62,670 62,638

Weighted-average common shares - basic 62,619 62,899

Dilutive effect of stock compensation 301 791

Weighted-average common shares - diluted 62,920 63,690



SELECTED ANNUALIZED RATIOS

Return on average assets 0.79 %1.44 %

Return on average common equity 7.24 13.32

Net interest income to average earning assets 3.33 3.82



(1) Taxable-equivalent basis assuming a 21% tax rate.

(2) Provision for loan losses for periods prior to the first quarter of 2020.

Cullen/Frost Bankers, Inc.

CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)



As of or for the

Six Months Ended

June 30,

2020 2019

BALANCE SHEET SUMMARY ($ in millions)

Average Balance:

Loans $16,272 $14,291

Earning assets 32,966 29,035

Total assets 35,693 31,391

Non-interest-bearing demand deposits 12,261 10,170

Interest-bearing deposits 17,091 15,882

Total deposits 29,352 26,052

Shareholders' equity 3,954 3,537



Period-End Balance:

Loans 17,972 14,459

Earning assets 36,613 29,216

Goodwill and intangible assets 657 658

Total assets 39,378 31,817

Total deposits 32,679 25,985

Shareholders' equity 4,009 3,739

Adjusted shareholders' equity ^(1) 3,521 3,520



ASSET QUALITY ($ in thousands)

Allowance for credit losses on loans: $250,061 $134,929

As a percentage of period-end loans 1.39 %0.93 %



Net charge-offs: $79,694 $14,606

Annualized as a percentage of average loans 0.98 %0.21 %



Non-performing assets:

Non-accrual loans $79,461 $71,521

Restructured loans 4,932 3,973

Foreclosed assets 806 907

Total $85,199 $76,401

As a percentage of:

Total loans and foreclosed assets 0.47 %0.53 %

Total assets 0.22 0.24



CONSOLIDATED CAPITAL RATIOS

Common Equity Tier 1 Risk-Based Capital Ratio12.48 %12.29 %

Tier 1 Risk-Based Capital Ratio 12.48 12.94

Total Risk-Based Capital Ratio 14.43 14.60

Leverage Ratio 8.01 9.40

Equity to Assets Ratio (period-end) 10.18 11.75

Equity to Assets Ratio (average) 11.08 11.27



(1) Shareholders' equity excluding accumulated other comprehensive income (loss).

Cullen/Frost Bankers, Inc.

TAXABLE-EQUIVALENT YIELD/COST AND AVERAGE BALANCES (UNAUDITED)



2020 2019

2nd Qtr 1st Qtr 4th Qtr 3rd Qtr 2nd Qtr

TAXABLE-EQUIVALENT YIELD/COST ^(1)

Earning Assets:

Interest-bearing 0.10 %1.24 %1.64 %2.19 %2.64 %deposits

Federal funds sold and resell 0.27 1.22 1.71 2.21 2.48 agreements

Securities 3.53 3.46 3.37 3.43 3.42

Loans, net of 3.95 4.65 4.88 5.16 5.34 unearned discounts

Total earning 3.24 3.84 3.98 4.21 4.33 assets



Interest-Bearing Liabilities:

Interest-bearing deposits:

Savings and 0.02 0.02 0.04 0.07 0.08 interest checking

Money market 0.09 0.50 0.66 0.93 1.03 deposit accounts

Time accounts 1.40 1.67 1.72 1.74 1.66

Public funds 0.09 0.85 1.05 1.34 1.51

Total interest-bearing 0.14 0.39 0.49 0.63 0.68 deposits



Total deposits 0.08 0.24 0.29 0.39 0.41



Federal funds purchased and 0.15 0.95 1.21 1.53 1.69 repurchase agreements

Junior subordinated deferrable 2.90 3.54 3.83 4.18 4.34 interest debentures

Subordinated notes4.71 4.71 4.71 4.71 4.71

Federal Home Loan 0.29 - - - - Bank advances

Total interest-bearing 0.19 0.47 0.59 0.75 0.80 liabilities



Net interest 3.05 3.37 3.39 3.46 3.53 spread

Net interest income to total 3.13 3.56 3.62 3.76 3.85 average earning assets



AVERAGE BALANCES

($ in millions)

Assets:

Interest-bearing $4,986 $2,586 $2,000 $1,566 $1,171 deposits

Federal funds sold and resell 92 260 275 212 246 agreements

Securities 12,501 12,963 13,641 13,444 13,322

Loans, net of 17,550 14,995 14,705 14,471 14,375 unearned discount

Total earning $35,128 $30,804 $30,621 $29,693 $29,114 assets



Liabilities:

Interest-bearing deposits:

Savings and $7,615 $7,030 $6,850 $6,712 $6,774 interest checking

Money market 8,230 7,874 7,905 7,763 7,588 deposit accounts

Time accounts 1,118 1,109 1,069 1,023 970

Public funds 565 640 590 538 513

Total interest-bearing 17,528 16,654 16,414 16,036 15,845 deposits



Total deposits 31,313 27,391 27,186 26,352 25,993



Federal funds purchased and 1,295 1,259 1,418 1,291 1,242 repurchase agreements

Junior subordinated deferrable 136 136 136 136 136 interest debentures

Subordinated notes99 99 99 99 99

Federal Home Loan 440 - - - - Bank advances

Total interest-bearing $19,498 $18,149 $18,067 $17,562 $17,322 funds



(1) Taxable-equivalent basis assuming a 21% tax rate.

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SOURCE Cullen/Frost Bankers, Inc.