CULLEN/FROST BANKERS, INC. - FORM 8-K - EX-99.1 - EX-99.1 2020 THIRD QUARTER EARNINGS RELEASE - October 29, 2020

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Exhibit 99.1


A.B. Mendez
Investor Relations
210.220.5234
    or
Bill Day
Media Relations
210.220.5427


FOR IMMEDIATE RELEASE    
October 29, 2020



CULLEN/FROST REPORTS THIRD QUARTER RESULTS
Board increases quarterly common dividend to $0.72




SAN ANTONIO -- Cullen/Frost Bankers, Inc. (NYSE:CFR) today reported third quarter 2020 results. Net income available to common shareholders for the third quarter of 2020 was $95.1 million, compared to $109.8 million for the third quarter of 2019. On a per-share basis, net income available to common shareholders for the third quarter of 2020 was $1.50 per diluted common share, compared to $1.73 per diluted common share reported a year earlier. Returns on average assets and average common equity were 0.96 percent and 9.30 percent, respectively, for the third quarter of 2020 compared to 1.35 percent and 11.83 percent, respectively, for the same period a year earlier.

For the third quarter of 2020, net interest income on a taxable-equivalent basis was $267.0 million, down 3.5 percent compared to the same quarter in 2019. Average loans for the third quarter of 2020 increased $3.7 billion, or 25.4 percent, to $18.1 billion, from the $14.5 billion reported for the third quarter a year earlier. Excluding PPP loans, third quarter average loans of $14.9 billion represented a 3.3 percent increase compared to the third quarter of 2019. Average deposits for the third quarter were $32.9 billion, up $6.5 billion, or 24.8 percent, compared to the $26.4 billion reported for last year's third quarter.




“Our third quarter results demonstrate our strength and stability despite the challenging environment," said Phil Green, Cullen/Frost Chairman and CEO. "Our dedication to our customers and our commitment to sustainable, organic growth has delivered positive results, and I want to acknowledge the dedication to the Frost philosophy and culture that our people have maintained during what has been a very unusual year."

For the first nine months of 2020, net income available to common shareholders was $235.4 million, down 29.5 percent compared to $333.9 million for the first nine months of 2019. Diluted EPS available to common shareholders for the first nine months of 2020 was $3.71 compared to $5.24 in the year-earlier period. Returns
on average assets and average common equity for the first nine months of 2020 were 0.85 percent and 7.95 percent, respectively, compared to 1.41 percent and 12.79 percent, respectively, for the same period in 2019.

Noted financial data for the third quarter of 2020 follows:

•The Common Equity Tier 1, Tier 1 and Total Risk-Based Capital Ratios at the end of the third quarter of 2020 were 12.71 percent, 12.71 percent and 14.69 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 $267.0 million for the third quarter of 2020, a decrease of 3.5 percent compared to the prior year period. The net interest margin was 2.95 percent for the third quarter of 2020, down 18 basis points compared to the second quarter of 2020 net interest margin of 3.13 percent. Net interest margin decreased 81 basis points compared to 3.76 percent in the year-ago period.
•Non-interest income for the third quarter of 2020 totaled $83.6 million, a decrease of $5.6 million, or 6.3 percent, from the $89.2 million reported for the third quarter of 2019. Service charges on deposits for the third quarter decreased $3.1 million, or 13.6 percent, compared to the same period in 2019. This decrease was primarily driven by decreases in overdraft/insufficient funds charges on consumer and commercial accounts. The decrease in overdraft/insufficient funds charges during the third quarter of 2020 was primarily related to a decrease in the volume of overdrafts relative to the same period in 2019. Other charges, commissions and fees for the third quarter decreased $1.7 million, or 17.2 percent, compared to
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the third quarter of 2019. The decrease was driven by a decrease in income associated with customer balances placed in third party money market accounts, among other things. Interchange and debit card transaction fees decreased by $614,000, or 14.9 percent, compared to the third quarter a year earlier. Revenue from interchange and debit card transactions was impacted by reduced transaction volumes resulting from the COVID-19 pandemic. Other non-interest income for the third quarter increased $361,000, or 4.2 percent, compared to the same period in 2019. The increase was primarily related to an increase in sundry and other miscellaneous income (up $1.3 million) and public finance underwriting fees (up $833,000) partly offset by a decrease in gains on the sale of foreclosed and other assets (down $1.3 million), among other things.
•Non-interest expense was $202.2 million for the third quarter, down $6.7 million, or 3.2 percent, compared to the $208.9 million reported for the third quarter a year earlier. Other non-interest expense of $38.2 million represented a $6.4 million, or 14.4 percent, decrease compared to the third quarter of 2019. The decrease was driven by decreases in travel, meals and entertainment expense (down $3.1 million); professional services expense (down $1.6 million); and advertising/promotions expense (down $1.2 million), among other things. Employee benefits expense for the third quarter of 2020 decreased $4.9 million, or 23.5 percent, compared to the same period in 2019. The decrease in employee benefits expense was primarily related to a decrease in certain discretionary benefit plan expenses and expenses related to our defined benefit retirement and restoration plans partly offset by increases in medical benefits expense and payroll taxes. Salaries and wages expense was $93.3 million in the third quarter of 2020, down $489,000 or 0.5% compared to the third quarter of 2019. Increases in salaries due to an increase in the number of employees and normal, annual merit and market increases were offset by decreases in incentive compensation, commissions and stock-based compensation. Technology, furniture and equipment expense for the third quarter increased by $4.1 million or 18.1 percent from the third quarter of 2019. The increases were primarily related to increases in cloud services expense (up $2.6 million), depreciation of furniture and equipment (up $1.2 million), software amortization (up $481,000) and software maintenance (up $299,000), partly offset by a $537,000 decrease in service contracts. Third quarter net occupancy expense increased by $1.3 million, or 5.2 percent, compared to the same period in
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2019, primarily driven by increases in depreciation on leasehold improvements (up $842,000), property taxes (up $805,000) and building depreciation (up $300,000), among other things, partly offset by a decrease in repairs and maintenance/service contracts expense (down $602,000).
•For the third quarter of 2020, credit loss expense related to loans was $23.6 million, compared to net charge-offs of $10.2 million. This compares with $27.2 million in credit loss expense related to loans and $41.0 million in net charge-offs for the second quarter of 2020, and $8.0 million in credit loss expense related to loans and $6.4 million in net charge-offs in the third quarter of 2019. The allowance for credit losses on loans as a percentage of total loans was 1.45 percent at September 30, 2020, compared to 1.39 percent at the end of the second quarter of 2020 and 0.93 percent at the end of the third 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 1.76 percent at the end of the third quarter of 2020. Non-performing assets were $96.4 million at the end of the third quarter of 2020, compared to $85.2 million at the end of the second quarter of 2020 and $105.0 million at the end of the third quarter of 2019. Credit loss expense related to off-balance-sheet exposures was a credit of $3.3 million in the third quarter of 2020.
The Cullen/Frost board declared a fourth-quarter cash dividend of $0.72 per common share, payable December 15, 2020 to shareholders of record on November 30 of this year.

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Cullen/Frost Bankers, Inc. will host a conference call on Thursday, October 29, 2020, at 4 p.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 8 p.m. CT on the day of the call until midnight Sunday, November 1, 2020 at 855-859-2056 with Conference ID # of 4553807. A replay of the call will also be available by webcast at the URL listed below after 8 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 $40.1 billion in assets at September 30, 2020. One of the 50 largest U.S. banks, Frost provides a wide range of banking, investment 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.

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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 cyber incidents or other failures, interruptions or security breaches of our systems or those of third-party providers.
•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.
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Cullen/Frost Bankers, Inc.
CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)
(In thousands, except per share amounts)
20202019
3rd Qtr2nd Qtr1st Qtr4th Qtr3rd Qtr
CONDENSED INCOME STATEMENTS
Net interest income$243,423 $245,811 $244,521 $251,098 $253,007 
Net interest income (1)
267,041 269,722 268,453 275,038 276,618 
Credit loss expense (2)
20,302 31,975 175,197 8,355 8,001 
Non-interest income:
Trust and investment management fees31,469 31,060 34,473 32,928 31,649 
Service charges on deposit accounts19,812 17,580 22,651 23,454 22,941 
Insurance commissions and fees11,456 10,668 16,485 12,138 11,683 
Interchange and debit card transaction fees 3,503 2,966 3,255 3,608 4,117 
Other charges, commissions and fees8,370 7,663 9,365 9,020 10,108 
Net gain (loss) on securities transactions— — 108,989 28 96 
Other8,991 7,664 17,697 14,079 8,630 
Total non-interest income 83,601 77,601 212,915 95,255 89,224 
Non-interest expense:
Salaries and wages93,323 90,350 98,812 97,951 93,812 
Employee benefits16,074 18,861 24,889 21,651 21,002 
Net occupancy25,466 25,266 25,384 24,864 24,202 
Technology, furniture and equipment26,482 26,046 25,240 25,759 22,415 
Deposit insurance2,372 2,800 2,624 2,374 2,491 
Intangible amortization212 241 257 264 274 
Other 38,221 36,115 46,957 47,943 44,668 
Total non-interest expense 202,150 199,679 224,163 220,806 208,864 
Income before income taxes104,572 91,758 58,076 117,192 125,366 
Income taxes9,516 (1,314)3,323 13,511 13,530 
Net income95,056 93,072 54,753 103,681 111,836 
Preferred stock dividends— — 2,016 2,016 2,016 
Redemption of preferred stock— — 5,514 — — 
Net income available to common shareholders$95,056 $93,072 $47,223 $101,665 109,820 
PER COMMON SHARE DATA
Earnings per common share - basic$1.50 $1.47 $0.75 $1.61 $1.74 
Earnings per common share - diluted1.50 1.47 0.75 1.60 1.73 
Cash dividends per common share0.71 0.71 0.71 0.71 0.71 
Book value per common share at end of quarter65.07 63.97 61.17 60.11 59.76 
OUTSTANDING COMMON SHARES
Period-end common shares62,782 62,670 62,553 62,669 62,537 
Weighted-average common shares - basic62,727 62,596 62,643 62,609 62,566 
Dilutive effect of stock compensation193 205 407 625 593 
Weighted-average common shares - diluted62,920 62,801 63,050 63,234 63,159 
SELECTED ANNUALIZED RATIOS
Return on average assets0.96 %0.99 %0.57 %1.21 %1.35 %
Return on average common equity9.30 9.60 4.88 10.74 11.83 
Net interest income to average earning assets 2.95 3.13 3.56 3.62 3.76 
(1) Taxable-equivalent basis assuming a 21% tax rate.
(2) Provision for loan losses for periods prior to the first quarter of 2020.
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Cullen/Frost Bankers, Inc.
CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)
20202019
3rd Qtr2nd Qtr1st Qtr4th Qtr3rd Qtr
BALANCE SHEET SUMMARY
($ in millions)
Average Balance:
Loans18,149 17,550 $14,995 $14,705 $14,471 
Earning assets36,749 35,128 30,804 30,621 29,693 
Total assets39,435 37,838 33,534 33,314 32,248 
Non-interest-bearing demand deposits14,585 13,785 10,737 10,772 10,316 
Interest-bearing deposits18,289 17,528 16,654 16,414 16,036 
Total deposits32,875 31,313 27,391 27,186 26,352 
Shareholders' equity4,065 3,899 4,009 3,900 3,828 
Period-End Balance:
Loans$18,224 $17,972 $15,338 $14,750 $14,635 
Earning assets37,482 36,613 31,440 31,281 30,358 
Goodwill and intangible assets657 657 657 657 658 
Total assets40,101 39,378 34,147 34,027 33,098 
Total deposits33,500 32,679 28,141 27,640 27,084 
Shareholders' equity4,085 4,009 3,827 3,912 3,881 
Adjusted shareholders' equity (1)
3,580 3,521 3,463 3,644 3,576 
ASSET QUALITY
($ in thousands)
Allowance for credit losses on loans:$263,475 $250,061 $263,881 $132,167 $136,559 
As a percentage of period-end loans1.45 %1.39 %1.72 %0.90 %0.93 %
Net charge-offs:$10,176 $41,048 $38,646 $12,747 $6,371 
Annualized as a percentage of average loans0.22 %0.94 %1.04 %0.34 %0.17 %
Non-performing assets:
Non-accrual loans$91,578 $79,461 $66,727 $102,303 $97,446 
Restructured loans3,932 4,932 — 6,098 6,160 
Foreclosed assets850 806 806 1,084 1,427 
Total$96,360 $85,199 $67,533 $109,485 $105,033 
As a percentage of:
Total loans and foreclosed assets0.53 %0.47 %0.44 %0.74 %0.72 %
Total assets0.24 0.22 0.20 0.32 0.32 
CONSOLIDATED CAPITAL RATIOS
Common Equity Tier 1 Risk-Based Capital Ratio12.71 %12.48 %12.02 %12.36 %12.35 %
Tier 1 Risk-Based Capital Ratio12.71 12.48 12.02 12.99 12.99 
Total Risk-Based Capital Ratio14.69 14.43 13.97 14.57 14.63 
Leverage Ratio7.85 8.01 8.84 9.28 9.36 
Equity to Assets Ratio (period-end)10.19 10.18 11.21 11.50 11.73 
Equity to Assets Ratio (average)10.31 10.30 11.95 11.71 11.87 
(1) Shareholders' equity excluding accumulated other comprehensive income (loss).
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Cullen/Frost Bankers, Inc.
CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)
(In thousands, except per share amounts)
Nine Months Ended
September 30,
20202019
CONDENSED INCOME STATEMENTS
Net interest income$733,755 $752,907 
Net interest income (1)
805,216 825,547 
Credit loss expense (2)
227,474 25,404 
Non-interest income:
Trust and investment management fees97,002 93,794 
Service charges on deposit accounts60,043 65,529 
Insurance commissions and fees38,609 40,207 
Interchange and debit card transaction fees 9,724 11,265 
Other charges, commissions and fees25,398 28,103 
Net gain (loss) on securities transactions108,989 265 
Other34,352 29,484 
Total non-interest income 374,117 268,647 
Non-interest expense:
Salaries and wages282,485 277,078 
Employee benefits59,824 64,579 
Net occupancy76,116 64,602 
Technology, furniture and equipment77,768 66,236 
Deposit insurance7,796 7,752 
Intangible amortization710 904 
Other 121,293 132,722 
Total non-interest expense 625,992 613,873 
Income before income taxes254,406 382,277 
Income taxes11,525 42,359 
Net income242,881 339,918 
Preferred stock dividends2,016 6,047 
Redemption of preferred stock5,514 — 
Net income available to common shareholders$235,351 $333,871 
PER COMMON SHARE DATA
Earnings per common share - basic$3.72 $5.28 
Earnings per common share - diluted3.71 5.24 
Cash dividends per common share2.13 2.09 
Book value per common share at end of quarter65.07 59.76 
OUTSTANDING COMMON SHARES
Period-end common shares62,782 62,537 
Weighted-average common shares - basic62,655 62,787 
Dilutive effect of stock compensation263 725 
Weighted-average common shares - diluted62,918 63,512 
SELECTED ANNUALIZED RATIOS
Return on average assets0.85 %1.41 %
Return on average common equity7.95 12.79 
Net interest income to average earning assets 3.20 3.80 
(1) Taxable-equivalent basis assuming a 21% tax rate.
(2) Provision for loan losses for periods prior to the first quarter of 2020.

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Cullen/Frost Bankers, Inc.
CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)
As of or for the
Nine Months Ended
September 30,
20202019
BALANCE SHEET SUMMARY ($ in millions)
Average Balance:
Loans$16,903 $14,352 
Earning assets34,236 29,257 
Total assets36,954 31,678 
Non-interest-bearing demand deposits13,041 10,219 
Interest-bearing deposits17,493 15,934 
Total deposits30,535 26,153 
Shareholders' equity3,991 3,635 
Period-End Balance:
Loans18,224 14,635 
Earning assets37,482 30,358 
Goodwill and intangible assets657 658 
Total assets40,101 33,098 
Total deposits33,500 27,084 
Shareholders' equity4,085 3,881 
Adjusted shareholders' equity (1)
3,580 3,576 
ASSET QUALITY ($ in thousands)
Allowance for credit losses on loans:$263,475 $136,559 
As a percentage of period-end loans1.45 %0.93 %
Net charge-offs:$89,870 $20,977 
Annualized as a percentage of average loans0.71 %0.20 %
Non-performing assets:
Non-accrual loans$91,578 $97,446 
Restructured loans3,932 6,160 
Foreclosed assets850 1,427 
Total$96,360 $105,033 
As a percentage of:
Total loans and foreclosed assets0.53 %0.72 %
Total assets0.24 0.32 
CONSOLIDATED CAPITAL RATIOS
Common Equity Tier 1 Risk-Based Capital Ratio12.71 %12.35 %
Tier 1 Risk-Based Capital Ratio12.71 12.99 
Total Risk-Based Capital Ratio14.69 14.63 
Leverage Ratio7.85 9.36 
Equity to Assets Ratio (period-end)10.19 11.73 
Equity to Assets Ratio (average)10.80 11.48 
(1) Shareholders' equity excluding accumulated other comprehensive income (loss).

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Cullen/Frost Bankers, Inc.
TAXABLE-EQUIVALENT YIELD/COST AND AVERAGE BALANCES (UNAUDITED)
20202019
3rd Qtr2nd Qtr1st Qtr4th Qtr3rd Qtr
TAXABLE-EQUIVALENT YIELD/COST (1)
Earning Assets:     
Interest-bearing deposits0.10 %0.10 %1.24 %1.64 %2.19 %
Federal funds sold and resell agreements0.24 0.27 1.22 1.71 2.21 
Securities3.44 3.53 3.46 3.37 3.43 
Loans, net of unearned discounts3.73 3.95 4.65 4.88 5.16 
Total earning assets3.04 3.24 3.84 3.98 4.21 
Interest-Bearing Liabilities:
Interest-bearing deposits:
Savings and interest checking0.02 0.02 0.02 0.04 0.07 
Money market deposit accounts0.09 0.09 0.50 0.66 0.93 
Time accounts1.11 1.40 1.67 1.72 1.74 
Public funds0.02 0.09 0.85 1.05 1.34 
Total interest-bearing deposits0.12 0.14 0.39 0.49 0.63 
Total deposits0.07 0.08 0.24 0.29 0.39 
Federal funds purchased and repurchase agreements0.12 0.15 0.95 1.21 1.53 
Junior subordinated deferrable interest debentures2.05 2.90 3.54 3.83 4.18 
Subordinated notes 4.70 4.71 4.71 4.71 4.71 
Federal Home Loan Bank advances— 0.29 — — — 
Total interest-bearing liabilities0.15 0.19 0.47 0.59 0.75 
Net interest spread2.89 3.05 3.37 3.39 3.46 
Net interest income to total average earning assets2.95 3.13 3.56 3.62 3.76 
AVERAGE BALANCES
($ in millions)
Assets:   
Interest-bearing deposits$5,888 $4,986 $2,586 $2,000 $1,566 
Federal funds sold and resell agreements31 92 260 275 212 
Securities12,680 12,501 12,963 13,641 13,444 
Loans, net of unearned discount18,149 17,550 14,995 14,705 14,471 
Total earning assets$36,749 $35,128 $30,804 $30,621 $29,693 
Liabilities:
Interest-bearing deposits:
Savings and interest checking$8,077 $7,615 $7,030 $6,850 $6,712 
Money market deposit accounts8,555 8,230 7,874 7,905 7,763 
Time accounts1,120 1,118 1,109 1,069 1,023 
Public funds537 565 640 590 538 
Total interest-bearing deposits18,289 17,528 16,654 16,414 16,036 
Total deposits32,875 31,313 27,391 27,186 26,352 
Federal funds purchased and repurchase agreements1,578 1,295 1,259 1,418 1,291 
Junior subordinated deferrable interest debentures136 136 136 136 136 
Subordinated notes99 99 99 99 99 
Federal Home Loan Bank advances— 440 — — — 
Total interest-bearing funds$20,103 $19,498 $18,149 $18,067 $17,562 
(1) Taxable-equivalent basis assuming a 21% tax rate.
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CULLEN/FROST BANKERS, INC. Reports