EX-99.1 2 a4q22formxex991xpressrelea.htm EX-99.1 - 4Q22 EARNINGS RELEASE Document


Exhibit 99.1


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


FOR IMMEDIATE RELEASE    
January 26, 2023




CULLEN/FROST REPORTS 4th QUARTER AND 2022 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 full year results for 2022. Net income available to common shareholders for the fourth quarter of 2022 was $189.5 million, an increase of 90.7 percent compared to $99.4 million reported for the fourth quarter of 2021. On a per-share basis, the company reported net income available to common shareholders of $2.91 per diluted common share for the fourth quarter of 2022, compared to $1.54 per diluted common share for the fourth quarter of 2021. For the fourth quarter of 2022, returns on average assets and average common equity were 1.44 percent and 27.16 percent, respectively, compared to 0.81 percent and 9.26 percent for the same period in 2021.

The company also reported 2022 annual net income available to common shareholders of $572.5 million, an increase of 31.3 percent compared to 2021 earnings available to common shareholders of $435.9 million. On a per-share basis, 2022 earnings were $8.81 per diluted common share compared to $6.76 per diluted common share reported in 2021. For the year 2022, returns on average assets and average common equity were 1.11 percent and 16.86 percent respectively, compared to 0.95 percent and 10.35 percent reported in 2021.





“We finished 2022 and the fourth quarter in a very strong position, with our organic growth strategy paying off in Houston with the newly opened locations surpassing $1 billion in deposits, and in Dallas by opening 10 new financial centers and filling more than 100 banking positions,” said Phil Green, Cullen/Frost chairman and CEO. “Our results give us great momentum as we start 2023. Our mortgage pilot program has successfully closed its first loan, and that's just the start of many good things ahead of us this year.”

For the fourth quarter of 2022, net interest income on a taxable-equivalent basis was $423.9 million, up 60.5 percent compared to the same period in 2021. Average loans for the fourth quarter of 2022 increased $1.1 billion, or 6.8 percent, to $17.1 billion, from the $16.0 billion reported for the fourth quarter a year earlier, and increased 1.4 percent compared to the third quarter of 2022. Excluding PPP loans, fourth quarter average loans of $17.0 billion represented a 10.6 percent increase compared to the fourth quarter of 2021 and a 1.6 percent increase compared to the third quarter of 2022. Average deposits for the quarter increased $3.7 billion, or 9.1 percent. to $44.8 billion compared to $41.0 billion in last year's fourth quarter, and decreased 2.3 percent compared to the third quarter of 2022. During the fourth quarter, some customer balances moved out of deposit accounts and into repurchase agreement accounts. Average combined deposit and repurchase agreement account balances increased by $571,000, or 1.2 percent, compared to the third quarter.

For full year 2022, average total loans were $16.7 billion, a decrease of approximately $30.9 million, or 0.2 percent, from the $16.8 billion reported the previous year. Excluding PPP loans, 2022 average loans of $16.6 billion represented a 11.3 percent increase compared to 2021. Average total deposits for 2022 were $44.6 billion, up 15.9 percent, or $6.1 billion, compared to the $38.5 billion reported in 2021.





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 2022 were 12.85 percent, 13.35 percent, and 14.84 percent, respectively. Current capital ratios continue to be in excess of well-capitalized levels and exceed Basel III requirements.
•Net interest income on a tax-equivalent basis was $423.9 million for the fourth quarter of 2022, an increase of 60.5 percent compared to the $264.0 million reported for the fourth quarter of 2021. The net interest margin was 3.31 percent for the fourth quarter of 2022 compared to 2.31 percent for the fourth quarter of 2021 and 3.01 percent for the third quarter of 2022.
•Non-interest income for the fourth quarter of 2022 was $105.7 million, down $3.4 million, or 3.1 percent, from the $109.1 million reported a year earlier. Other non-interest income decreased $5.7 million, or 25.8 percent, compared to the fourth quarter of 2021. The comparison is impacted by a $9.7 million gain on the exchange of a branch facility recorded in the fourth quarter of 2021. That decrease was partly offset by a $5.1 million distribution received from an SBIC fund investment in the fourth quarter of 2022. Trust and investment management fees increased by $1.3 million, or 3.3 percent, compared to the fourth quarter of 2021. The increase in trust and investment management fees was primarily the result of a $1.5 million increase in estate fees, a $956,000 increase in real estate fees and a $605,000 increase in oil and gas fees, partly offset by a $1.9 million decrease in investment management fees. Other charges, commissions and fees increased $874,000, or 8.6%, compared to the fourth quarter of 2021. The increase was primarily related to increases in income from the placement of money market accounts (up $1.4 million).
•Non-interest expense for the fourth quarter of 2022 was $281.3 million, up $42.7 million, or 17.9 percent, compared to the $238.6 million reported for the fourth quarter of 2021. Salaries and wages expense increased by $31.2 million, or 29.5 percent, compared to the fourth quarter of 2021. The increase in salaries and wages was primarily related to increases in salaries due to annual merit and market increases as well as the implementation of a $20 per hour minimum wage in December, 2021. Salaries and wages were also impacted by our investments in organic expansion in the Houston and Dallas markets, as well as
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preparations for our mortgage loan product offering, and increases in incentive and stock compensation. Employee benefits expense increased by $2.8 million, or 14.5 percent, compared with the fourth quarter of 2021. The increase in employee benefits expense was impacted by increases in headcount and salary expense and was also affected by a $1.5 million increase in discretionary benefit plan expense. Other non-interest expense increased by $4.4 million, or 8.0 percent, compared to the fourth quarter of 2021, impacted by a $4.6 million increase in fraud losses and a $4.0 million accrual related to a license negotiation. Technology, furniture and equipment expense was up $2.7 million or 9.5 percent compared to the fourth quarter of 2021. The increase was primarily related to increases in cloud services expense (up $1.1 million), software maintenance (up $1.0 million), and service contracts (up $581,000).
•For the fourth quarter of 2022, the company reported a credit loss expense of $3.0 million, and reported net charge-offs of $3.8 million. For the fourth quarter of 2021, the company did not report a credit loss expense and reported net charge-offs of $2.8 million. The allowance for credit losses on loans as a percentage of total loans was 1.33 percent at December 31, 2022, compared to 1.38 percent at September 30, 2022 and 1.52 percent at year-end 2021. Non-accrual loans were $37.8 million at year end, compared to $29.9 million the previous quarter, and $53.7 million at year-end 2021.



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The Cullen/Frost board declared a first-quarter cash dividend of $0.87 per common share, payable March 15, 2023 to shareholders of record on February 28 of this year. The board of directors also declared a cash dividend of $11.125 per share of Series B Preferred Stock (or $0.278125 per depositary share). The depositary shares representing the Series B Preferred Stock are traded on the NYSE under the symbol "CFR PrB." The Series B Preferred Stock dividend is payable on March 15, 2023, to shareholders of record on February 28 of this year.
Cullen/Frost Bankers, Inc. will host a conference call on Thursday, January 26, 2023, at 1:00 p.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 877-709-8150. Playback of the conference call will be available after
5:00 p.m. CT on the day of the call until midnight Sunday, January 29 at 877-660-6853, with the Conference ID# of 13735488. A replay of the call will also be available by webcast at the URL listed below after 5:00 p.m. CT on the day of the call.
Cullen/Frost investor relations website: https://investor.frostbank.com/
Cullen/Frost Bankers, Inc. (NYSE: CFR) is a financial holding company, headquartered in San Antonio, with $52.9 billion in assets at December 31, 2022. One of the 50 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 Annual Report on Form 10-K 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:
•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.
•Local, regional, national and international economic conditions and the impact they may have on us and our customers and our assessment of that impact.
•Changes in the financial performance and/or condition of our borrowers.
•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 credit loss reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements.
•Changes in our liquidity position.
•Impairment of our goodwill or other intangible assets.
•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, borrowing and saving habits.
•Greater than expected costs or difficulties related to the integration of new products and lines of business.
•Technological changes.
•The cost and effects of cyber incidents or other failures, interruptions or security breaches of our systems or those of our customers or third-party providers.
•Acquisitions and integration of acquired businesses.
•Changes in the reliability of our vendors, internal control systems or information systems.
•Our ability to increase market share and control expenses.
•Our ability to attract and retain qualified employees.
•Changes in our organization, compensation and benefit plans.
•The soundness of other financial institutions.
•Volatility and disruption in national and international financial and commodity markets.
•Changes in the competitive environment in our markets and among banking organizations and other financial service providers.
•Government intervention in the U.S. financial system.
•Political instability.
•Acts of God or of war or terrorism.
•The potential impact of climate change.
•The impact of pandemics, epidemics or any other 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.
•The effect of changes in laws and regulations (including laws and regulations concerning taxes, banking, securities and insurance) and their application with which we and our subsidiaries must comply.
•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.
•Our success at managing the risks involved in the foregoing items.
In addition, financial markets and global supply chains may continue to be adversely affected by the current or anticipated impact of military conflict, including the current Russian invasion of Ukraine, terrorism or other geopolitical events.
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)
20222021
4th Qtr3rd Qtr2nd Qtr1st Qtr4th Qtr
CONDENSED INCOME STATEMENTS
Net interest income$398,457 $355,547 $288,208 $249,071 $240,708 
Net interest income (1)
423,892 379,518 311,377 272,194 264,049 
Credit loss expense3,000 — — — — 
Non-interest income:
Trust and investment management fees39,695 38,552 37,776 38,656 38,425 
Service charges on deposit accounts22,321 22,960 23,870 22,740 22,234 
Insurance commissions and fees11,674 13,152 11,776 16,608 11,714 
Interchange and card transaction fees4,480 4,614 4,911 4,226 4,237 
Other charges, commissions and fees10,981 11,095 9,887 9,627 10,107 
Net gain (loss) on securities transactions— — — — 69 
Other16,529 9,448 9,707 9,533 22,270 
Total non-interest income105,680 99,821 97,927 101,390 109,056 
Non-interest expense:
Salaries and wages136,697 127,189 116,881 111,329 105,541 
Employee benefits21,975 21,680 20,733 24,220 19,189 
Net occupancy28,572 28,133 28,379 27,411 27,435 
Technology, furniture and equipment30,912 30,781 29,921 29,157 28,230 
Deposit insurance3,967 4,279 3,724 3,633 3,339 
Intangible amortization100 103 131 146 153 
Other59,074 45,733 46,578 42,836 54,708 
Total non-interest expense281,297 257,898 246,347 238,732 238,595 
Income before income taxes219,840 197,470 139,788 111,729 111,169 
Income taxes28,666 27,710 20,674 12,627 10,148 
Net income191,174 169,760 119,114 99,102 101,021 
Preferred stock dividends1,669 1,668 1,669 1,669 1,669 
Net income available to common shareholders$189,505 $168,092 $117,445 $97,433 $99,352 
PER COMMON SHARE DATA
Earnings per common share - basic$2.92 $2.60 $1.82 $1.51 $1.54 
Earnings per common share - diluted2.91 2.59 1.81 1.50 1.54 
Cash dividends per common share0.87 0.87 0.75 0.75 0.75 
Book value per common share at end of quarter46.49 41.53 49.93 56.65 67.11 
OUTSTANDING COMMON SHARES
Period-end common shares64,355 64,211 64,123 64,094 63,986 
Weighted-average common shares - basic64,303 64,158 64,113 64,051 63,879 
Dilutive effect of stock compensation344 343 354 410 462 
Weighted-average common shares - diluted64,647 64,501 64,467 64,461 64,341 
SELECTED ANNUALIZED RATIOS
Return on average assets1.44 %1.27 %0.92 %0.79 %0.81 %
Return on average common equity27.16 20.13 13.88 9.58 9.26 
Net interest income to average earning assets (1)
3.31 3.01 2.56 2.33 2.31 
(1) Taxable-equivalent basis assuming a 21% tax rate.
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Cullen/Frost Bankers, Inc.
CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)
20222021
4th Qtr3rd Qtr2nd Qtr1st Qtr4th Qtr
BALANCE SHEET SUMMARY
($ in millions)
Average Balance:
Loans$17,063 $16,823 $16,674 $16,386 15,984 
Loans excluding Paycheck Protection Program17,020 16,752 16,531 16,084 15,391 
Earning assets48,867 49,062 47,880 47,339 46,008 
Total assets52,284 52,383 51,088 50,323 48,897 
Non-interest-bearing demand deposits17,980 18,511 18,355 17,961 17,885 
Interest-bearing deposits26,779 27,292 26,371 25,001 23,142 
Total deposits44,759 45,803 44,726 42,962 41,027 
Shareholders' equity2,913 3,459 3,540 4,270 4,400 
Period-End Balance:
Loans$17,155 $16,951 $16,736 $16,543 $16,336 
Loans excluding Paycheck Protection Program17,120 16,900 16,644 16,335 15,908 
Earning assets49,402 49,517 48,404 48,107 48,063 
Goodwill and intangible assets655 655 656 656 656 
Total assets52,892 52,946 51,785 51,296 50,878 
Total deposits43,954 46,560 45,602 44,431 42,696 
Shareholders' equity3,137 2,812 3,347 3,776 4,440 
Adjusted shareholders' equity (1)
4,486 4,341 4,221 4,148 4,092 
ASSET QUALITY
($ in thousands)
Allowance for credit losses on loans:$227,621 $234,315 $239,632 $246,835 $248,666 
As a percentage of period-end loans1.33 %1.38 %1.43 %1.49 %1.52 %
Net charge-offs:$3,810 $2,854 $2,807 $6,295 $2,789 
Annualized as a percentage of average loans0.09 %0.07 %0.07 %0.16 %0.07 %
Non-accrual loans:$37,833 $29,904 $35,125 $48,966 $53,713 
As a percentage of total loans0.22 %0.18 %0.21 %0.30 %0.33 %
As a percentage of total assets0.07 0.06 0.07 0.10 0.11 
CONSOLIDATED CAPITAL RATIOS
Common Equity Tier 1 Risk-Based Capital Ratio12.85 %12.74 %12.64 %12.78 %13.13 %
Tier 1 Risk-Based Capital Ratio13.35 13.26 13.17 13.32 13.70 
Total Risk-Based Capital Ratio14.84 14.80 14.75 14.97 15.45 
Leverage Ratio7.29 7.09 7.03 7.08 7.34 
Equity to Assets Ratio (period-end)5.93 5.31 6.46 7.36 8.73 
Equity to Assets Ratio (average)5.57 6.60 6.93 8.48 9.00 
(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)
Year Ended December 31,
202220212020
CONDENSED INCOME STATEMENTS
Net interest income$1,291,283 $984,867 $976,001 
Net interest income (1)
1,386,981 1,077,315 1,070,937 
Credit loss expense3,000 63 241,230 
Non-interest income:
Trust and investment management fees154,679 148,994 129,272 
Service charges on deposit accounts91,891 83,292 80,873 
Insurance commissions and fees53,210 51,548 50,313 
Interchange and card transaction fees18,231 17,461 13,470 
Other charges, commissions and fees41,590 36,836 34,825 
Net gain (loss) on securities transactions— 69 108,989 
Other45,217 48,528 47,712 
Total non-interest income404,818 386,728 465,454 
Non-interest expense:
Salaries and wages492,096 395,497 387,328 
Employee benefits88,608 82,029 75,676 
Net occupancy112,495 107,344 102,938 
Technology, furniture and equipment120,771 112,738 105,232 
Deposit insurance15,603 12,232 10,502 
Intangible amortization480 697 918 
Other194,221 171,457 166,310 
Total non-interest expense1,024,274 881,994 848,904 
Income before income taxes668,827 489,538 351,321 
Income taxes89,677 46,459 20,170 
Net income579,150 443,079 331,151 
Preferred stock dividends6,675 7,157 2,016 
Redemption of preferred stock— — 5,514 
Net income available to common shareholders$572,475 $435,922 $323,621 
PER COMMON SHARE DATA
Earnings per common share - basic$8.84 $6.79 $5.11 
Earnings per common share - diluted8.81 6.76 5.10 
Cash dividends per common share3.24 2.94 2.85 
Book value per common share at end of quarter46.49 67.11 65.82 
OUTSTANDING COMMON SHARES
Period-end common shares64,355 63,986 63,011 
Weighted-average common shares - basic64,157 63,613 62,727 
Dilutive effect of stock compensation364 489 277 
Weighted-average common shares - diluted64,521 64,102 63,004 
SELECTED ANNUALIZED RATIOS
Return on average assets1.11 %0.95 %0.85 %
Return on average common equity16.86 10.35 8.11 
Net interest income to average earning assets (1)
2.82 2.53 3.09 
(1) Taxable-equivalent basis assuming a 21% tax rate.
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Cullen/Frost Bankers, Inc.
CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)
Year Ended December 31,
202220212020
BALANCE SHEET SUMMARY ($ in millions)
Average Balance:
Loans$16,739 $16,770 $17,164 
Loans excluding Paycheck Protection Program16,600 14,918 15,006 
Earning assets48,293 43,196 35,248 
Total assets51,513 45,983 37,961 
Non-interest-bearing demand deposits18,203 16,671 13,564 
Interest-bearing deposits26,368 21,802 17,875 
Total deposits44,571 38,473 31,438 
Shareholders' equity3,541 4,359 4,039 
Period-End Balance:
Loans$17,155 $16,336 $17,481 
Loans excluding Paycheck Protection Program17,120 15,908 15,047 
Earning assets49,402 48,063 39,648 
Goodwill and intangible assets655 656 657 
Total assets52,892 50,878 42,391 
Total deposits43,954 42,696 35,016 
Shareholders' equity3,137 4,440 4,293 
Adjusted shareholders' equity (1)
4,486 4,092 3,780 
ASSET QUALITY ($ in thousands)
Allowance for credit losses on loan:$227,621 $248,666 $263,177 
As a percentage of period-end loans1.33 %1.52 %1.51 %
Net charge-offs:$15,766 $8,414 $103,435 
Annualized as a percentage of average loans0.09 %0.05 %0.60 %
Non-accrual loans:$37,833 $53,713 $61,449 
As a percentage of total loans0.22 %0.33 %0.35 %
As a percentage of total assets0.07 0.11 0.14 
CONSOLIDATED CAPITAL RATIOS
Common Equity Tier 1 Risk-Based Capital Ratio12.85 %13.13 %12.86 %
Tier 1 Risk-Based Capital Ratio13.35 13.70 13.47 
Total Risk-Based Capital Ratio14.84 15.45 15.44 
Leverage Ratio7.29 7.34 8.07 
Equity to Assets Ratio (period-end)5.93 8.73 10.13 
Equity to Assets Ratio (average)6.87 9.48 10.64 
(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)
20222021
4th Qtr3rd Qtr2nd Qtr1st Qtr4th Qtr
TAXABLE-EQUIVALENT YIELD/COST(1)
Earning Assets:     
Interest-bearing deposits3.70 %2.27 %0.80 %0.18 %0.15 %
Federal funds sold3.88 2.44 1.26 0.37 0.22 
Resell agreements4.14 2.39 1.32 0.27 0.25 
Securities3.09 2.94 2.87 2.88 3.08 
Loans, net of unearned discounts5.80 4.89 4.04 3.74 3.89 
Total earning assets4.14 3.43 2.71 2.39 2.36 
Interest-Bearing Liabilities:
Interest-bearing deposits:
Savings and interest checking0.27 0.07 0.04 0.01 0.01 
Money market deposit accounts1.94 1.08 0.35 0.12 0.11 
Time accounts1.52 0.99 0.64 0.29 0.21 
Total interest-bearing deposits1.16 0.62 0.22 0.08 0.07 
Total deposits0.69 0.37 0.13 0.05 0.04 
Federal funds purchased3.78 2.33 0.84 0.17 0.12 
Repurchase agreements2.69 1.50 0.41 0.10 0.10 
Junior subordinated deferrable interest debentures5.39 3.77 2.51 1.90 1.81 
Subordinated notes payable and other notes4.69 4.69 4.69 4.69 4.70 
Total interest-bearing liabilities1.37 0.71 0.26 0.11 0.10 
Net interest spread2.77 2.72 2.45 2.28 2.26 
Net interest income to total average earning assets3.31 3.01 2.56 2.33 2.31 
AVERAGE BALANCES
($ in millions)
Assets:     
Interest-bearing deposits$11,574 $12,776 $13,041 $13,766 $15,549 
Federal funds sold52 51 31 14 31 
Resell agreements49 10 3 6 8 
Securities20,129 19,402 18,130 17,166 14,436 
Loans, net of unearned discount17,063 16,823 16,674 16,386 15,984 
Total earning assets$48,867 $49,062 $47,880 $47,339 $46,008 
Liabilities:
Interest-bearing deposits:
Savings and interest checking$12,113 $12,235 $12,336 $11,955 $11,205 
Money market deposit accounts12,958 13,466 12,608 11,859 10,823 
Time accounts1,708 1,591 1,427 1,187 1,114 
Total interest-bearing deposits26,779 27,292 26,371 25,001 23,142 
Total deposits44,759 45,803 44,726 42,962 41,027 
Federal funds purchased37 42 36 28 27 
Repurchase agreements3,575 1,960 1,743 2,052 2,368 
Junior subordinated deferrable interest debentures123 123 123 123 126 
Subordinated notes payable and other notes99 99 99 99 99 
Total interest-bearing funds$30,613 $29,516 $28,372 $27,302 $25,762 
(1) Taxable-equivalent basis assuming a 21% tax rate.
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