Cullen/Frost Bankers : Cullen/Frost Reports Fourth Quarter and Annual Results

N E W S R E L E A S E

January 30, 2020

CULLEN/FROST REPORTS 4th QUARTER AND 2019 ANNUAL RESULTS

Board declares first quarter dividend on common and preferred stock

SAN ANTONIO -- Cullen/Frost Bankers, Inc. (NYSE:CFR) today reported fourth quarter and annual results for 2019. Cullen/Frost reported net income available to common shareholders for the fourth quarter of 2019 of $101.7 million, or $1.60 per diluted common share, compared to $117.2 million, or $1.82 per common diluted share, for the fourth quarter 2018. For the fourth quarter of 2019, returns on average assets and common equity were 1.21 percent and 10.74 percent, respectively, compared to 1.48 percent and 14.85 percent for the same period in 2018.

The company also reported 2019 annual net income available to common shareholders of $435.5 million, a decrease of 2.5 percent compared to 2018 earnings of $446.9 million. On a per-share basis, 2019 earnings were $6.84 per diluted common share compared to $6.90 per diluted common share reported in 2018. For the year 2019, returns on average assets and common equity were 1.36 percent and 12.24 percent respectively, compared to 1.44 percent and 14.23 percent reported in 2018.

"These earnings show the result of consistent execution of our sustainable organic growth strategy," said Phil Green, Cullen/Frost chairman and CEO. "As illustrated by our Houston expansion, where we have opened 10 of the 25 planned new financial centers, we are investing for steady, long-term growth while maintaining our quality standards.

"We saw deposit growth rebound in the second half of 2019 after a more challenging environment earlier in the year," Green said.

For the fourth quarter of 2019, net interest income on a taxable-equivalent basis was $275.0 million, up 0.4 percent compared to the same quarter in 2018. Average loans for the fourth quarter of 2019 increased $755.3 million, or 5.4 percent, to $14.7 billion, from the $13.9 billion reported for the fourth quarter a year earlier. Average deposits for the quarter were $27.2 billion, an increase of 2.6 percent or $678.4 million compared to $26.5 billion in last year's fourth quarter.

For 2019, average total loans were $14.4 billion, an increase of approximately $822.6 million, or 6.0 percent, from the $13.6 billion reported the previous year. Average total deposits for 2019 increased to $26.4 billion, up 0.5 percent, or $124.2 million, over the $26.3 billion reported in 2018.

Noted financial data for the fourth quarter:

• The Common Equity Tier 1, Tier 1 and Total Risk-Based Capital Ratios for Cullen/Frost at the end of the fourth quarter of 2019 were 12.36 percent, 12.99 percent, and 14.57 percent, respectively. Current capital ratios continue to be in excess of well-capitalized levels and exceed Basel III requirements.
• Net interest income for the fourth quarter totaled $251.1 million, an increase of 0.8 percent compared to the $249.2 million reported for the fourth quarter of 2018. The net interest margin was 3.62 percent for the fourth quarter compared to 3.72 percent for the fourth quarter of 2018 and 3.76 percent for the third quarter of 2019.
• Non-interestincome for the fourth quarter of 2019 was $95.3 million, up $8.1 million or 9.3 percent from the $87.1 million reported a year earlier. Trust and investment management fees increased by $3.0 million, or 10.2 percent, compared to the fourth quarter of 2018. The increase in trust and investment management fees was primarily the result of higher average equity valuations and an increase in the number of accounts. Other income increased $3.0 million, primarily driven by a $1.6 million increase in public finance underwriting fees.
• Non-interestexpense for the fourth quarter of 2019 was $220.8 million, up $21.1 million, or 10.6 percent, compared to the $199.7 million reported for the fourth quarter of 2018. Net occupancy expense increased $7.2 million, primarily driven by a $5.6 million increase in lease expenses associated with our downtown San Antonio headquarters move and our Houston expansion. Salaries and wages expense increased $7.1 million due to an increase in the number of employees and normal annual merit and market increases and, to a lesser extent, an increase in stock compensation. Employee benefits expense increased $2.6 million, or 13.6 percent, impacted by higher expenses related to our profit sharing/401(k) plan (up $1.1 million), defined benefit retirement plan (up $585,000), and payroll tax (up $554,000). Technology, furniture and equipment expense was up $3.8 million, or 17.3 percent, compared to the fourth quarter of 2018. The increase was primarily driven by a $3.8 million increase in software maintenance and cloud services expense.
• For the fourth quarter of 2019, the provision for loan losses was $8.4 million, compared to net charge-offs of $12.7 million. For the fourth quarter of 2018, the provision for loan losses was $3.8 million, compared to net charge-offs of $9.2 million. The allowance for loan losses as a percentage of total loans was 0.90 percent at December 31, 2019, compared to 0.93 percent last quarter and 0.94 percent at year-end 2018. Non-performing assets were $109.5 million at year end, compared to $105.0 million the previous quarter, and $74.9 million at year-end 2018.

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The Cullen/Frost board declared a first-quarter cash dividend of $0.71 per common share, payable March 13, 2020 to shareholders of record on February 28 of this year. The board of directors also declared a cash dividend of $0.3359375 per share of the Noncumulative Perpetual Preferred Stock, Series A, which is traded on the NYSE under the symbol "CFR PrA." The Series A Preferred Stock dividend is payable on March 16, 2020, to shareholders of record on February 28 of this year.

Cullen/Frost Bankers, Inc. will host a conference call on Thursday, January 30, 2020, at 10 a.m. Central Time (CT) to discuss the results for the quarter and the year. The media and other interested parties are invited to access the call in a "listen only" mode at 800-944-6430. Digital playback of the conference call will be available after 12 p.m. CT on the day of the call until midnight Sunday, February 2, 2020 at 855-859-2056, with the Conference ID# of 1379608. 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 $34.0 billion in assets at December 31, 2019. One of the 60 largest U.S. banks, 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 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"), 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.

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• 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 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.

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)

					2019					2018
		4th Qtr		3rd Qtr		2nd Qtr		1st Qtr		4th Qtr
CONDENSED INCOME STATEMENTS
Net interest income	$	251,098	$	253,007	$	253,431	$	246,469	$	249,209
Net interest income (1)		275,038		276,618		277,751		271,179		273,810
Provision for loan losses		8,355		8,001		6,400		11,003		3,767
Non-interest income:
Trust and investment management fees		32,928		31,649		30,448		31,697		29,882
Service charges on deposit accounts		23,454		22,941		21,798		20,790		21,632
Insurance commissions and fees		12,138		11,683		10,118		18,406		11,394
Interchange and debit card transaction fees		3,608		4,117		3,868		3,280		3,774
Other charges, commissions and fees		9,020		10,108		8,933		9,062		9,371
Net gain (loss) on securities transactions		28		96		169		-		(43)
Other		14,079		8,630		7,304		13,550		11,108
Total non-interest income		95,255		89,224		82,638		96,785		87,118
Non-interest expense:
Salaries and wages		97,951		93,812		90,790		92,476		90,878
Employee benefits		21,651		21,002		20,051		23,526		19,066
Net occupancy		24,864		24,202		21,133		19,267		17,699
Technology, furniture and equipment		25,759		22,415		22,157		21,664		21,960
Deposit insurance		2,374		2,491		2,453		2,808		2,219
Intangible amortization		264		274		305		325		331
Other		47,943		44,668		46,320		41,734		47,544
Total non-interest expense		220,806		208,864		203,209		201,800		199,697
Income before income taxes		117,192		125,366		126,460		130,451		132,863
Income taxes		13,511		13,530		14,874		13,955		13,610
Net income		103,681		111,836		111,586		116,496		119,253
Preferred stock dividends		2,016		2,016		2,015		2,016		2,016
Net income available to common shareholders	$	101,665	$	109,820	$	109,571	$	114,480	$	117,237
PER COMMON SHARE DATA
Earnings per common share - basic	$	1.61	$	1.74	$	1.73	$	1.80	$	1.84
Earnings per common share - diluted		1.60		1.73		1.72		1.79		1.82
Cash dividends per common share		0.71		0.71		0.71		0.67		0.67
Book value per common share at end of quarter		60.11		59.76		57.39		54.64		51.19
OUTSTANDING COMMON SHARES
Period-end common shares		62,669		62,537		62,638		63,081		62,986
Weighted-average common shares - basic		62,609		62,566		62,789		63,009		63,441
Dilutive effect of stock compensation		625		593		765		819		811
Weighted-average common shares - diluted		63,234		63,159		63,554		63,828		64,252
SELECTED ANNUALIZED RATIOS
Return on average assets		1.21%		1.35%	1.40%		1.48%		1.48%
Return on average common equity		10.74		11.83		12.60		14.08		14.85
Net interest income to average earning assets (1)		3.62		3.76		3.85		3.79		3.72

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

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Cullen/Frost Bankers, Inc.

CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)

				2019					2018
		4th Qtr		3rd Qtr		2nd Qtr		1st Qtr		4th Qtr
BALANCE SHEET SUMMARY
($ in millions)
Average Balance:
Loans	$	14,705	$	14,471	$	14,375	$	14,205	$	13,949
Earning assets		30,621		29,693		29,114		28,954		29,153
Total assets		33,314		32,248		31,491		31,356		31,330
Non-interest-bearing demand deposits		10,772		10,316		10,148		10,193		10,740
Interest-bearing deposits		16,414		16,036		15,845		15,919		15,767
Total deposits		27,186		26,352		25,993		26,112		26,507
Shareholders' equity		3,900		3,828		3,632		3,441		3,277
Period-End Balance:
Loans	$	14,750	$	14,635	$	14,459	$	14,406	$	14,100
Earning assets		31,281		30,358		29,216		29,281		29,894
Goodwill and intangible assets		657		658		658		658		659
Total assets		34,027		33,098		31,817		31,663		32,293
Total deposits		27,640		27,084		25,985		26,295		27,149
Shareholders' equity		3,912		3,881		3,739		3,592		3,369
Adjusted shareholders' equity (1)		3,644		3,576		3,520		3,498		3,433
ASSET QUALITY
($ in thousands)
Allowance for loan losses:	$	132,167	$	136,559	$	134,929	$	136,350	$	132,132
As a percentage of period-end loans		0.90%		0.93%		0.93%		0.95%		0.94%
Net charge-offs:	$	12,747	$	6,371	$	7,821	$	6,785	$	9,213
Annualized as a percentage of average loans		0.34%		0.17%		0.22%		0.19%		0.26%
Non-performing assets:
Non-accrual loans	$	102,303	$	97,446	$	71,521	$	92,162	$	73,739
Restructured loans		6,098		6,160		3,973		4,028		-
Foreclosed assets		1,084		1,427		907		1,175		1,175
Total	$	109,485	$	105,033	$	76,401	$	97,365	$	74,914
As a percentage of:
Total loans and foreclosed assets		0.74%		0.72%		0.53%		0.68%		0.53%
Total assets		0.32		0.32		0.24		0.31		0.23
CONSOLIDATED CAPITAL RATIOS
Common Equity Tier 1 Risk-Based Capital Ratio(2)		12.36%		12.35%		12.29%		12.34%		12.27%
Tier 1 Risk-Based Capital Ratio(2)		12.99		12.99		12.94		13.00		12.94
Total Risk-Based Capital Ratio(2)		14.57		14.63		14.60		14.68		14.64
Leverage Ratio		9.28		9.36		9.40		9.35		9.06
Equity to Assets Ratio (period-end)		11.50		11.73		11.75		11.34		10.43
Equity to Assets Ratio (average)		11.71		11.87		11.53		10.97		10.46

1. Shareholders' equity excluding accumulated other comprehensive income (loss).
2. After a review of risk-weight classifications during the first quarter of 2019, risk-weightings for certain loans were reclassified. Amounts reported prior to March 31, 2019 have been revised to reflect these reclassifications.

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Cullen/Frost Bankers, Inc.

CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)

(In thousands, except per share amounts)

				Year Ended December 31,
		2019		2018		2017		2016		2015
CONDENSED INCOME STATEMENTS
Net interest income	$	1,004,005	$	957,892	$	866,422	$	776,336	$	736,632
Net interest income (1)		1,100,586		1,052,564		1,043,431		939,958		888,035
Provision for loan losses		33,759		21,613		35,460		51,673		51,845
Non-interest income:
Trust and investment management fees		126,722		119,391		110,675		104,240		105,512
Service charges on deposit accounts		88,983		85,186		84,182		81,203		81,350
Insurance commissions and fees		52,345		48,967		46,169		47,154		48,926
Interchange and debit card transaction fees (2)		14,873		13,877		23,232		21,369		19,666
Other charges, commissions and fees		37,123		37,231		39,931		39,623		37,551
Net gain (loss) on securities transactions		293		(156)		(4,941)		14,975		69
Other		43,563		46,790		37,222		41,144		35,656
Total non-interest income (2)		363,902		351,286		336,470		349,708		328,730
Non-interest expense:
Salaries and wages		375,029		350,312		337,068		318,665		310,504
Employee benefits		86,230		77,323		74,575		72,615		69,746
Net occupancy		89,466		76,788		75,971		71,627		65,690
Technology, furniture and equipment		91,995		83,102		74,335		71,208		64,373
Deposit insurance		10,126		16,397		20,128		17,428		14,519
Intangible amortization		1,168		1,424		1,703		2,429		3,325
Other (2)		180,665		173,538		175,289		178,988		165,561
Total non-interest expense (2)		834,679		778,884		759,069		732,960		693,718
Income before income taxes		499,469		508,681		408,363		341,411		319,799
Income taxes		55,870		53,763		44,214		37,150		40,471
Net income		443,599		454,918		364,149		304,261		279,328
Preferred stock dividends		8,063		8,063		8,063		8,063		8,063
Net income available to common shareholders	$	435,536	$	446,855	$	356,086	$	296,198	$	271,265
PER COMMON SHARE DATA
Earnings per common share - basic	$	6.89	$	6.97	$	5.56	$	4.73	$	4.31
Earnings per common share - diluted		6.84		6.90		5.51		4.70		4.28
Cash dividends per common share		2.80		2.58		2.25		2.15		2.10
Book value per common share at end of quarter		60.11		51.19		49.68		45.03		44.30
OUTSTANDING COMMON SHARES
Period-end common shares		62,669		62,986		63,476		63,474		61,982
Weighted-average common shares - basic		62,742		63,705		63,694		62,376		62,758
Dilutive effect of stock compensation		700		982		968		593		715
Weighted-average common shares - diluted		63,442		64,687		64,662		62,969		63,473
SELECTED ANNUALIZED RATIOS
Return on average assets		1.36%		1.44%		1.17%		1.03%		0.97%
Return on average common equity		12.24		14.23		11.76		10.16		9.86
Net interest income to average earning assets (1)		3.75		3.64		3.69		3.56		3.45

1. Taxable-equivalentbasis assuming a 21% tax rate for 2019 and 2018 and 35% tax rate for 2015-2017.
2. Beginning in 2018, in connection with the adoption of a new accounting standard, interchange and debit card transaction fees are reported net of related network costs. Prior to 2018, such network costs were reported separately as a component of other non-interest expense. For comparative purposes, interchange and debit card transaction fees reported net of related network costs would have totaled $11,289 in 2017 and $8,473 in 2016.

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Cullen/Frost Bankers, Inc.

CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)

				Year Ended December 31,
		2019		2018		2017		2016		2015(1)
BALANCE SHEET SUMMARY ($ in millions)
Average Balance:
Loans	$	14,441	$	13,618	$	12,460	$	11,555	$	11,267
Earning assets		29,600		28,900		28,359		26,717		25,955
Total assets(1)		32,086		31,030		30,450		28,832		28,061
Non-interest-bearing demand deposits		10,358		10,757		10,819		10,034		10,180
Interest-bearing deposits		16,055		15,532		15,085		14,478		13,861
Total deposits		26,413		26,289		25,905		24,512		24,041
Shareholders' equity		3,702		3,284		3,173		3,059		2,895
Period-End Balance:
Loans	$	14,750	$	14,100	$	13,146	$	11,975	$	11,487
Earning assets		31,281		29,894		29,595		28,025		26,431
Goodwill and intangible assets		657		659		660		662		663
Total assets(1)		34,027		32,293		31,748		30,196		28,566
Total deposits		27,640		27,149		26,872		25,812		24,344
Shareholders' equity		3,912		3,369		3,298		3,003		2,890
Adjusted shareholders' equity (2)		3,644		3,433		3,218		3,027		2,776
ASSET QUALITY ($ in thousands)
Allowance for loan losses:	$	132,167	$	132,132	$	155,364	$	153,045	$	135,859
As a percentage of period-end loans		0.90%		0.94%		1.18%		1.28%		1.18%
Net charge-offs:	$	33,724	$	44,845	$	33,141	$	34,487	$	15,528
Annualized as a percentage of average loans		0.23%		0.33%		0.27%		0.30%		0.14%
Non-performing assets:
Non-accrual loans	$	102,303	$	73,739	$	150,314	$	100,151	$	83,467
Restructured loans		6,098		-		4,862		-		-
Foreclosed assets		1,084		1,175		2,116		2,440		2,255
Total	$	109,485	$	74,914	$	157,292	$	102,591	$	85,722
As a percentage of:
Total loans and foreclosed assets		0.74%		0.53%		1.20%		0.86%		0.75%
Total assets		0.32		0.23		0.50		0.34		0.30
CONSOLIDATED CAPITAL RATIOS
Common Equity Tier 1 Risk-Based Capital Ratio(3)		12.36%		12.27%		12.42%		12.52%		11.37%
Tier 1 Risk-Based Capital Ratio(3)		12.99		12.94		13.16		13.33		12.38
Total Risk-Based Capital Ratio(3)		14.57		14.64		15.15		14.93		13.85
Leverage Ratio		9.28		9.06		8.46		8.14		7.79
Equity to Assets Ratio (period-end)		11.50		10.43		10.39		9.94		10.12
Equity to Assets Ratio (average)		11.54		10.58		10.42		10.61		10.32

1. Certain items in the 2015 financial statements have been reclassified to conform to the current presentation in connection with the adoption of an accounting standard in 2016 that requires unamortized debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability.
2. Shareholders' equity excluding accumulated other comprehensive income (loss).
3. After a review of risk-weight classifications during the first quarter of 2019, risk-weightings for certain loans were reclassified. Amounts reported at December 31, 2018 have been revised to reflect these reclassifications.

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Cullen/Frost Bankers, Inc.

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

					2019					2018
		4th Qtr		3rd Qtr		2nd Qtr		1st Qtr		4th Qtr
TAXABLE-EQUIVALENT YIELD/COST
Earning Assets:
Interest-bearing deposits		1.64%		2.19%	2.64%		2.50%		2.35%
Federal funds sold and resell agreements		1.71		2.21		2.48		2.58		2.41
Securities		3.37		3.43		3.42		3.37		3.39
Loans, net of unearned discounts		4.88		5.16		5.34		5.33		5.20
Total earning assets		3.98		4.21		4.33		4.27		4.15
Interest-Bearing Liabilities:
Interest-bearing deposits:
Savings and interest checking		0.04		0.07		0.08		0.09		0.08
Money market deposit accounts		0.66		0.93		1.03		1.09		1.00
Time accounts		1.72		1.74		1.66		1.43		1.14
Public funds		1.05		1.34		1.51		1.39		1.31
Total interest-bearing deposits		0.49		0.63		0.68		0.69		0.63
Total deposits		0.29		0.39		0.41		0.42		0.37
Federal funds purchased and repurchase agreements		1.21		1.53		1.69		1.72		1.56
Junior subordinated deferrable interest debentures		3.83		4.18		4.34		4.40		4.24
Subordinated notes payable and other notes		4.71		4.71		4.71		4.72		4.72
Total interest-bearing liabilities		0.59		0.75		0.80		0.81		0.74
Net interest spread		3.39		3.46		3.53		3.46		3.41
Net interest income to total average earning assets		3.62		3.76		3.85		3.79		3.72
AVERAGE BALANCES
($ in millions)
Assets:
Interest-bearing deposits	$	2,000	$	1,566	$	1,171	$	1,729	$	2,452
Federal funds sold and resell agreements		275		212		246		250		317
Securities		13,641		13,444		13,322		12,770		12,435
Loans, net of unearned discount		14,705		14,471		14,375		14,205		13,949
Total earning assets	$	30,621	$	29,693	$	29,114	$	28,954	$	29,153
Liabilities:
Interest-bearing deposits:
Savings and interest checking	$	6,850	$	6,712	$	6,774	$	6,774	$	6,673
Money market deposit accounts		7,905		7,763		7,588		7,696		7,792
Time accounts		1,069		1,023		970		895		836
Public funds		590		538		513		554		467
Total interest-bearing deposits		16,414		16,036		15,845		15,919		15,767
Total deposits		27,186		26,352		25,993		26,112		26,507
Federal funds purchased and repurchase agreements		1,418		1,291		1,242		1,180		1,138
Junior subordinated deferrable interest debentures		136		136		136		136		136
Subordinated notes payable and other notes		99		99		99		99		99
Total interest-bearing funds	$	18,067	$	17,562	$	17,322	$	17,334	$	17,140

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For more information:

A.B. Mendez Investor Relations 210.220.5234

Or

Bill Day

Media Relations 210.220.5427

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