# EDGAR Filing Document

**Accession Number:** 0000039263
**File Stem:** 0000039263-23-000005
**Filing Date:** 2023-1
**Character Count:** 43687
**Document Hash:** d3b9d4bed277203ac4be8c636c2fd709
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000039263-23-000005.hdr.sgml**: 20230126

**ACCESSION NUMBER**: 0000039263-23-000005

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20230126

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230126

**DATE AS OF CHANGE**: 20230126

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** CULLEN/FROST BANKERS, INC.
- **CENTRAL INDEX KEY:** 0000039263
- **STANDARD INDUSTRIAL CLASSIFICATION:** NATIONAL COMMERCIAL BANKS [6021]
- **IRS NUMBER:** 741751768
- **STATE OF INCORPORATION:** TX
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-13221
- **FILM NUMBER:** 23555092

**BUSINESS ADDRESS:**
- **STREET 1:** 111 W HOUSTON ST
- **CITY:** SAN ANTONIO
- **STATE:** TX
- **ZIP:** 78205
- **BUSINESS PHONE:** 210-220-4011

**MAIL ADDRESS:**
- **STREET 1:** POST OFFICE BOX 1600
- **CITY:** SAN ANTONIO
- **STATE:** TX
- **ZIP:** 78296-1600

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** CULLEN FROST BANKERS INC
- **DATE OF NAME CHANGE:** 19920703

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** FROST BANK CORP
- **DATE OF NAME CHANGE:** 19770823

?xml version="1.0" ? cfr-20230126

**United States**

**Securities and Exchange Commission**

**Washington, D.C. 20549**

**Form 8-K** 

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

**Date of Report** (Date of earliest event reported): **January 26, 2023**

**Cullen/Frost Bankers, Inc.** 

(Exact name of registrant as specified in its charter)

---

| | | |
|:---|:---|:---|
| **Texas** | **001-13221** | **74-1751768** |
| (State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification No.) |

---

---

| | | | |
|:---|:---|:---|:---|
| **111 W. Houston Street,** | **San Antonio,** | **Texas** | **78205** |
| (Address of principal executive offices) | (Address of principal executive offices) | (Address of principal executive offices) | (Zip code) |

---

---

| | |
|:---|:---|
| **(210)** | **220-4011** |
| (Registrant's telephone number, including area code) | (Registrant's telephone number, including area code) |

---

---

| |
|:---|
| **N/A** |
| (Former name, former address and former fiscal year, if changed since last report |

---

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

**Securities registered pursuant to Section 12(b) of the Act:**

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| | | |
|:---|:---|:---|
| Title of each class | Trading Symbol(s) | Name of each exchange on <br>which registered |
| **Common Stock, $.01 Par Value** | **CFR** | **New York Stock Exchange** |
| **Depositary Shares, each representing a 1/40th interest in a share of 4.450% Non-Cumulative Perpetual Preferred Stock, Series B** | **CFR.PrB** | **New York Stock Exchange** |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company&nbsp;&nbsp;&nbsp;&nbsp;☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.&nbsp;&nbsp;&nbsp;&nbsp;☐

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**Item 2.02&nbsp;&nbsp;&nbsp;&nbsp;Results of Operations and Financial Condition**

Attached as Exhibit 99.1 and incorporated into this item by reference is a press release issued by the Registrant on January 26, 2023 regarding its financial results for the quarter and year ended December 31, 2022. The information furnished by the Registrant pursuant to this item shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that section, and shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934.

**Item 9.01&nbsp;&nbsp;&nbsp;&nbsp;Financial Statements and Exhibits**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Exhibits:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;99.1&nbsp;&nbsp;&nbsp;&nbsp;Press Release dated January 26, 2023.

104&nbsp;&nbsp;&nbsp;&nbsp;Cover Page Interactive Data File - The cover page XBRL tags are embedded within the inline XBRL document.

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**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

**&nbsp;&nbsp;&nbsp;&nbsp;CULLEN/FROST BANKERS, INC.**

**&nbsp;&nbsp;&nbsp;&nbsp;**By:&nbsp;&nbsp;&nbsp;&nbsp;<u>/s/ Jerry Salinas&nbsp;&nbsp;&nbsp;&nbsp;</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Jerry Salinas

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Group Executive Vice President

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and Chief Financial Officer

&nbsp;&nbsp;&nbsp;&nbsp;Dated:&nbsp;&nbsp;&nbsp;&nbsp;January 26, 2023

------

**EXHIBIT INDEX**

---

| | |
|:---|:---|
| **Exhibit Number** | **Description** |
| &nbsp;&nbsp;&nbsp;&nbsp;99.1 | <u>[Press Release dated January 2](a4q22formxex991xpressrelea.htm)[6](a4q22formxex991xpressrelea.htm)[, 202](a4q22formxex991xpressrelea.htm)[3](a4q22formxex991xpressrelea.htm)[.](a4q22formxex991xpressrelea.htm)</u> |
| 104 | Cover Page Interactive Data File - The cover page XBRL tags are embedded within the inline XBRL document. |

---

## Exhibit 99.1

**Exhibit 99.1**

A.B. Mendez

Investor Relations

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;210.220.5234 &nbsp;&nbsp;&nbsp;&nbsp;or

Bill Day

Media Relations

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;210.220.5427 <br>

FOR IMMEDIATE RELEASE&nbsp;&nbsp;&nbsp;&nbsp;

January 26, 2023

**CULLEN/FROST REPORTS 4**<sup>th</sup> **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**:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*•* 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*•* 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*•* 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).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 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

------

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).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 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.

------

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 <br>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: <u>https://investor.frostbank.com/</u>

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.

------

**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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The effects of and changes in trade and monetary and fiscal policies and laws, including the interest rate policies of the Federal Reserve Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Inflation, interest rate, securities market and monetary fluctuations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Local, regional, national and international economic conditions and the impact they may have on us and our customers and our assessment of that impact.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Changes in the financial performance and/or condition of our borrowers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Changes in the mix of loan geographies, sectors and types or the level of non-performing assets and charge-offs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Changes in estimates of future credit loss reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Changes in our liquidity position.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Impairment of our goodwill or other intangible assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The timely development and acceptance of new products and services and perceived overall value of these products and services by users.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Changes in consumer spending, borrowing and saving habits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Greater than expected costs or difficulties related to the integration of new products and lines of business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Technological changes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Acquisitions and integration of acquired businesses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Changes in the reliability of our vendors, internal control systems or information systems.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our ability to increase market share and control expenses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our ability to attract and retain qualified employees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Changes in our organization, compensation and benefit plans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The soundness of other financial institutions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Volatility and disruption in national and international financial and commodity markets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Changes in the competitive environment in our markets and among banking organizations and other financial service providers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Government intervention in the U.S. financial system.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Political instability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Acts of God or of war or terrorism.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The potential impact of climate change.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The impact of pandemics, epidemics or any other health-related crisis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 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.** | **Cullen/Frost Bankers, Inc.** | **Cullen/Frost Bankers, Inc.** | **Cullen/Frost Bankers, Inc.** | **Cullen/Frost Bankers, Inc.** | **Cullen/Frost Bankers, Inc.** |
| **CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)** | **CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)** | **CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)** | **CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)** | **CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)** | **CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)** |
| (In thousands, except per share amounts) | (In thousands, except per share amounts) | (In thousands, except per share amounts) | (In thousands, except per share amounts) | (In thousands, except per share amounts) | (In thousands, except per share amounts) |
|  | **2022** | **2022** | **2022** | **2022** | **2021** |
|  | **4th Qtr** | **3rd Qtr** | **2nd Qtr** | **1st Qtr** | **4th Qtr** |
| <u>CONDENSED INCOME STATEMENTS</u> |  |  |  |  |  |
| Net interest income | 398457 | 355547 | 288208 | 249071 | 240708 |
| Net interest income <sup>(1)</sup> | 423892 | 379518 | 311377 | 272194 | 264049 |
| Credit loss expense | 3000 |  |  |  |  |
| Non-interest income: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Trust and investment management fees | 39695 | 38552 | 37776 | 38656 | 38425 |
| &nbsp;&nbsp;&nbsp;Service charges on deposit accounts | 22321 | 22960 | 23870 | 22740 | 22234 |
| &nbsp;&nbsp;&nbsp;Insurance commissions and fees | 11674 | 13152 | 11776 | 16608 | 11714 |
| &nbsp;&nbsp;&nbsp;Interchange and card transaction fees | 4480 | 4614 | 4911 | 4226 | 4237 |
| &nbsp;&nbsp;&nbsp;Other charges, commissions and fees | 10981 | 11095 | 9887 | 9627 | 10107 |
| &nbsp;&nbsp;&nbsp;Net gain (loss) on securities transactions |  |  |  |  | 69 |
| &nbsp;&nbsp;&nbsp;Other | 16529 | 9448 | 9707 | 9533 | 22270 |
| &nbsp;&nbsp;&nbsp;Total non-interest income | 105680 | 99821 | 97927 | 101390 | 109056 |
| Non-interest expense: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Salaries and wages | 136697 | 127189 | 116881 | 111329 | 105541 |
| &nbsp;&nbsp;&nbsp;Employee benefits | 21975 | 21680 | 20733 | 24220 | 19189 |
| &nbsp;&nbsp;&nbsp;Net occupancy | 28572 | 28133 | 28379 | 27411 | 27435 |
| &nbsp;&nbsp;&nbsp;Technology, furniture and equipment | 30912 | 30781 | 29921 | 29157 | 28230 |
| &nbsp;&nbsp;&nbsp;Deposit insurance | 3967 | 4279 | 3724 | 3633 | 3339 |
| &nbsp;&nbsp;&nbsp;Intangible amortization | 100 | 103 | 131 | 146 | 153 |
| &nbsp;&nbsp;&nbsp;Other | 59074 | 45733 | 46578 | 42836 | 54708 |
| &nbsp;&nbsp;&nbsp;Total non-interest expense | 281297 | 257898 | 246347 | 238732 | 238595 |
| Income before income taxes | 219840 | 197470 | 139788 | 111729 | 111169 |
| Income taxes | 28666 | 27710 | 20674 | 12627 | 10148 |
| Net income | 191174 | 169760 | 119114 | 99102 | 101021 |
| Preferred stock dividends | 1669 | 1668 | 1669 | 1669 | 1669 |
| Net income available to common shareholders | 189505 | 168092 | 117445 | 97433 | 99352 |
| <u>PER COMMON SHARE DATA</u> |  |  |  |  |  |
| Earnings per common share - basic | 2.92 | 2.60 | 1.82 | 1.51 | 1.54 |
| Earnings per common share - diluted | 2.91 | 2.59 | 1.81 | 1.50 | 1.54 |
| Cash dividends per common share | 0.87 | 0.87 | 0.75 | 0.75 | 0.75 |
| Book value per common share at end of quarter | 46.49 | 41.53 | 49.93 | 56.65 | 67.11 |
| <u>OUTSTANDING COMMON SHARES</u> |  |  |  |  |  |
| Period-end common shares | 64355 | 64211 | 64123 | 64094 | 63986 |
| Weighted-average common shares - basic | 64303 | 64158 | 64113 | 64051 | 63879 |
| Dilutive effect of stock compensation | 344 | 343 | 354 | 410 | 462 |
| Weighted-average common shares - diluted | 64647 | 64501 | 64467 | 64461 | 64341 |
| <u>SELECTED ANNUALIZED RATIOS</u> |  |  |  |  |  |
| Return on average assets | 1.44% | 1.27% | 0.92% | 0.79% | 0.81% |
| Return on average common equity | 27.16 | 20.13 | 13.88 | 9.58 | 9.26 |
| Net interest income to average earning assets <sup>(1)</sup> | 3.31 | 3.01 | 2.56 | 2.33 | 2.31 |
| (1) Taxable-equivalent basis assuming a 21% tax rate. | (1) Taxable-equivalent basis assuming a 21% tax rate. | (1) Taxable-equivalent basis assuming a 21% tax rate. | (1) Taxable-equivalent basis assuming a 21% tax rate. | (1) Taxable-equivalent basis assuming a 21% tax rate. | (1) Taxable-equivalent basis assuming a 21% tax rate. |

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|:---|:---|:---|:---|:---|:---|
| **Cullen/Frost Bankers, Inc.** | **Cullen/Frost Bankers, Inc.** | **Cullen/Frost Bankers, Inc.** | **Cullen/Frost Bankers, Inc.** | **Cullen/Frost Bankers, Inc.** | **Cullen/Frost Bankers, Inc.** |
| **CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)** | **CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)** | **CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)** | **CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)** | **CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)** | **CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)** |
|  | **2022** | **2022** | **2022** | **2022** | **2021** |
|  | **4th Qtr** | **3rd Qtr** | **2nd Qtr** | **1st Qtr** | **4th Qtr** |
| <u>BALANCE SHEET SUMMARY</u> |  |  |  |  |  |
| ($ in millions) |  |  |  |  |  |
| Average Balance: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Loans | $17063 | $16823 | $16674 | $16386 | 15984 |
| &nbsp;&nbsp;&nbsp;Loans excluding Paycheck Protection Program | 17020 | 16752 | 16531 | 16084 | 15391 |
| &nbsp;&nbsp;&nbsp;Earning assets | 48867 | 49062 | 47880 | 47339 | 46008 |
| &nbsp;&nbsp;&nbsp;Total assets | 52284 | 52383 | 51088 | 50323 | 48897 |
| &nbsp;&nbsp;&nbsp;Non-interest-bearing demand deposits | 17980 | 18511 | 18355 | 17961 | 17885 |
| &nbsp;&nbsp;&nbsp;Interest-bearing deposits | 26779 | 27292 | 26371 | 25001 | 23142 |
| &nbsp;&nbsp;&nbsp;Total deposits | 44759 | 45803 | 44726 | 42962 | 41027 |
| &nbsp;&nbsp;&nbsp;Shareholders' equity | 2913 | 3459 | 3540 | 4270 | 4400 |
| Period-End Balance: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Loans | $17155 | $16951 | $16736 | $16543 | $16336 |
| &nbsp;&nbsp;&nbsp;Loans excluding Paycheck Protection Program | 17120 | 16900 | 16644 | 16335 | 15908 |
| &nbsp;&nbsp;&nbsp;Earning assets | 49402 | 49517 | 48404 | 48107 | 48063 |
| &nbsp;&nbsp;&nbsp;Goodwill and intangible assets | 655 | 655 | 656 | 656 | 656 |
| &nbsp;&nbsp;&nbsp;Total assets | 52892 | 52946 | 51785 | 51296 | 50878 |
| &nbsp;&nbsp;&nbsp;Total deposits | 43954 | 46560 | 45602 | 44431 | 42696 |
| &nbsp;&nbsp;&nbsp;Shareholders' equity | 3137 | 2812 | 3347 | 3776 | 4440 |
| &nbsp;&nbsp;Adjusted shareholders' equity <sup>(1)</sup> | 4486 | 4341 | 4221 | 4148 | 4092 |
| <u>ASSET QUALITY</u> |  |  |  |  |  |
| ($ in thousands) |  |  |  |  |  |
| Allowance for credit losses on loans: | $227621 | $234315 | $239632 | $246835 | $248666 |
| &nbsp;&nbsp;&nbsp;As a percentage of period-end loans | 1.33% | 1.38% | 1.43% | 1.49% | 1.52% |
| Net charge-offs: | $3810 | $2854 | $2807 | $6295 | $2789 |
| &nbsp;&nbsp;&nbsp;Annualized as a percentage of average loans | 0.09% | 0.07% | 0.07% | 0.16% | 0.07% |
| Non-accrual loans: | $37833 | $29904 | $35125 | $48966 | $53713 |
| &nbsp;&nbsp;&nbsp;As a percentage of total loans | 0.22% | 0.18% | 0.21% | 0.30% | 0.33% |
| &nbsp;&nbsp;&nbsp;As a percentage of total assets | 0.07 | 0.06 | 0.07 | 0.10 | 0.11 |
| <u>CONSOLIDATED CAPITAL RATIOS</u> |  |  |  |  |  |
| Common Equity Tier 1 Risk-Based Capital Ratio | 12.85% | 12.74% | 12.64% | 12.78% | 13.13% |
| Tier 1 Risk-Based Capital Ratio | 13.35 | 13.26 | 13.17 | 13.32 | 13.70 |
| Total Risk-Based Capital Ratio | 14.84 | 14.80 | 14.75 | 14.97 | 15.45 |
| Leverage Ratio | 7.29 | 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). | (1) Shareholders' equity excluding accumulated other comprehensive income (loss). | (1) Shareholders' equity excluding accumulated other comprehensive income (loss). | (1) Shareholders' equity excluding accumulated other comprehensive income (loss). | (1) Shareholders' equity excluding accumulated other comprehensive income (loss). | (1) Shareholders' equity excluding accumulated other comprehensive income (loss). |

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| | | | |
|:---|:---|:---|:---|
| **Cullen/Frost Bankers, Inc.** | **Cullen/Frost Bankers, Inc.** | **Cullen/Frost Bankers, Inc.** | **Cullen/Frost Bankers, Inc.** |
| **CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)** | **CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)** | **CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)** | **CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)** |
| (In thousands, except per share amounts) | (In thousands, except per share amounts) | (In thousands, except per share amounts) | (In thousands, except per share amounts) |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** |
| <u>CONDENSED INCOME STATEMENTS</u> |  |  |  |
| Net interest income | 1291283 | 984867 | 976001 |
| Net interest income <sup>(1)</sup> | 1386981 | 1077315 | 1070937 |
| Credit loss expense | 3000 | 63 | 241230 |
| Non-interest income: |  |  |  |
| &nbsp;&nbsp;&nbsp;Trust and investment management fees | 154679 | 148994 | 129272 |
| &nbsp;&nbsp;&nbsp;Service charges on deposit accounts | 91891 | 83292 | 80873 |
| &nbsp;&nbsp;&nbsp;Insurance commissions and fees | 53210 | 51548 | 50313 |
| &nbsp;&nbsp;&nbsp;Interchange and card transaction fees | 18231 | 17461 | 13470 |
| &nbsp;&nbsp;&nbsp;Other charges, commissions and fees | 41590 | 36836 | 34825 |
| &nbsp;&nbsp;&nbsp;Net gain (loss) on securities transactions |  | 69 | 108989 |
| &nbsp;&nbsp;&nbsp;Other | 45217 | 48528 | 47712 |
| &nbsp;&nbsp;&nbsp;Total non-interest income | 404818 | 386728 | 465454 |
| Non-interest expense: |  |  |  |
| &nbsp;&nbsp;&nbsp;Salaries and wages | 492096 | 395497 | 387328 |
| &nbsp;&nbsp;&nbsp;Employee benefits | 88608 | 82029 | 75676 |
| &nbsp;&nbsp;&nbsp;Net occupancy | 112495 | 107344 | 102938 |
| &nbsp;&nbsp;&nbsp;Technology, furniture and equipment | 120771 | 112738 | 105232 |
| &nbsp;&nbsp;&nbsp;Deposit insurance | 15603 | 12232 | 10502 |
| &nbsp;&nbsp;&nbsp;Intangible amortization | 480 | 697 | 918 |
| &nbsp;&nbsp;&nbsp;Other | 194221 | 171457 | 166310 |
| &nbsp;&nbsp;&nbsp;Total non-interest expense | 1024274 | 881994 | 848904 |
| Income before income taxes | 668827 | 489538 | 351321 |
| Income taxes | 89677 | 46459 | 20170 |
| Net income | 579150 | 443079 | 331151 |
| Preferred stock dividends | 6675 | 7157 | 2016 |
| Redemption of preferred stock |  |  | 5514 |
| Net income available to common shareholders | 572475 | 435922 | 323621 |
| <u>PER COMMON SHARE DATA</u> |  |  |  |
| Earnings per common share - basic | 8.84 | 6.79 | 5.11 |
| Earnings per common share - diluted | 8.81 | 6.76 | 5.10 |
| Cash dividends per common share | 3.24 | 2.94 | 2.85 |
| Book value per common share at end of quarter | 46.49 | 67.11 | 65.82 |
| <u>OUTSTANDING COMMON SHARES</u> |  |  |  |
| Period-end common shares | 64355 | 63986 | 63011 |
| Weighted-average common shares - basic | 64157 | 63613 | 62727 |
| Dilutive effect of stock compensation | 364 | 489 | 277 |
| Weighted-average common shares - diluted | 64521 | 64102 | 63004 |
| <u>SELECTED ANNUALIZED RATIOS</u> |  |  |  |
| Return on average assets | 1.11% | 0.95% | 0.85% |
| Return on average common equity | 16.86 | 10.35 | 8.11 |
| Net interest income to average earning assets <sup>(1)</sup> | 2.82 | 2.53 | 3.09 |
| (1) Taxable-equivalent basis assuming a 21% tax rate. | (1) Taxable-equivalent basis assuming a 21% tax rate. | (1) Taxable-equivalent basis assuming a 21% tax rate. | (1) Taxable-equivalent basis assuming a 21% tax rate. |

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| | | | |
|:---|:---|:---|:---|
| **Cullen/Frost Bankers, Inc.** | **Cullen/Frost Bankers, Inc.** | **Cullen/Frost Bankers, Inc.** | **Cullen/Frost Bankers, Inc.** |
| **CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)** | **CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)** | **CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)** | **CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** |
| <u>BALANCE SHEET SUMMARY ($ in millions)</u> |  |  |  |
| Average Balance: |  |  |  |
| &nbsp;&nbsp;&nbsp;Loans | $16739 | $16770 | $17164 |
| &nbsp;&nbsp;&nbsp;Loans excluding Paycheck Protection Program | 16600 | 14918 | 15006 |
| &nbsp;&nbsp;&nbsp;Earning assets | 48293 | 43196 | 35248 |
| &nbsp;&nbsp;&nbsp;Total assets | 51513 | 45983 | 37961 |
| &nbsp;&nbsp;&nbsp;Non-interest-bearing demand deposits | 18203 | 16671 | 13564 |
| &nbsp;&nbsp;&nbsp;Interest-bearing deposits | 26368 | 21802 | 17875 |
| &nbsp;&nbsp;&nbsp;Total deposits | 44571 | 38473 | 31438 |
| &nbsp;&nbsp;&nbsp;Shareholders' equity | 3541 | 4359 | 4039 |
| Period-End Balance: |  |  |  |
| &nbsp;&nbsp;&nbsp;Loans | $17155 | $16336 | $17481 |
| &nbsp;&nbsp;&nbsp;Loans excluding Paycheck Protection Program | 17120 | 15908 | 15047 |
| &nbsp;&nbsp;&nbsp;Earning assets | 49402 | 48063 | 39648 |
| &nbsp;&nbsp;&nbsp;Goodwill and intangible assets | 655 | 656 | 657 |
| &nbsp;&nbsp;&nbsp;Total assets | 52892 | 50878 | 42391 |
| &nbsp;&nbsp;&nbsp;Total deposits | 43954 | 42696 | 35016 |
| &nbsp;&nbsp;&nbsp;Shareholders' equity | 3137 | 4440 | 4293 |
| &nbsp;&nbsp;Adjusted shareholders' equity <sup>(1)</sup> | 4486 | 4092 | 3780 |
| <u>ASSET QUALITY ($ in thousands)</u> |  |  |  |
| Allowance for credit losses on loan: | $227621 | $248666 | $263177 |
| &nbsp;&nbsp;&nbsp;As a percentage of period-end loans | 1.33% | 1.52% | 1.51% |
| Net charge-offs: | $15766 | $8414 | $103435 |
| &nbsp;&nbsp;&nbsp;Annualized as a percentage of average loans | 0.09% | 0.05% | 0.60% |
| Non-accrual loans: | $37833 | $53713 | $61449 |
| &nbsp;&nbsp;&nbsp;&nbsp;As a percentage of total loans | 0.22% | 0.33% | 0.35% |
| &nbsp;&nbsp;&nbsp;&nbsp;As a percentage of total assets | 0.07 | 0.11 | 0.14 |
| <u>CONSOLIDATED CAPITAL RATIOS</u> |  |  |  |
| Common Equity Tier 1 Risk-Based Capital Ratio | 12.85% | 13.13% | 12.86% |
| Tier 1 Risk-Based Capital Ratio | 13.35 | 13.70 | 13.47 |
| Total Risk-Based Capital Ratio | 14.84 | 15.45 | 15.44 |
| Leverage Ratio | 7.29 | 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). | (1) Shareholders' equity excluding accumulated other comprehensive income (loss). | (1) Shareholders' equity excluding accumulated other comprehensive income (loss). | (1) Shareholders' equity excluding accumulated other comprehensive income (loss). |

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;**Cullen/Frost Bankers, Inc.** | &nbsp;&nbsp;&nbsp;**Cullen/Frost Bankers, Inc.** | &nbsp;&nbsp;&nbsp;**Cullen/Frost Bankers, Inc.** | &nbsp;&nbsp;&nbsp;**Cullen/Frost Bankers, Inc.** | &nbsp;&nbsp;&nbsp;**Cullen/Frost Bankers, Inc.** | &nbsp;&nbsp;&nbsp;**Cullen/Frost Bankers, Inc.** |
| **TAXABLE-EQUIVALENT YIELD/COST AND AVERAGE BALANCES (UNAUDITED)** | **TAXABLE-EQUIVALENT YIELD/COST AND AVERAGE BALANCES (UNAUDITED)** | **TAXABLE-EQUIVALENT YIELD/COST AND AVERAGE BALANCES (UNAUDITED)** | **TAXABLE-EQUIVALENT YIELD/COST AND AVERAGE BALANCES (UNAUDITED)** | **TAXABLE-EQUIVALENT YIELD/COST AND AVERAGE BALANCES (UNAUDITED)** | **TAXABLE-EQUIVALENT YIELD/COST AND AVERAGE BALANCES (UNAUDITED)** |
|  | **2022** | **2022** | **2022** | **2022** | **2021** |
|  | **4th Qtr** | **3rd Qtr** | **2nd Qtr** | **1st Qtr** | **4th Qtr** |
| <u>TAXABLE-EQUIVALENT YIELD/COST</u><sup>(1)</sup> |  |  |  |  |  |
| Earning Assets: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest-bearing deposits | 3.70% | 2.27% | 0.80% | 0.18% | 0.15% |
| &nbsp;&nbsp;&nbsp;Federal funds sold | 3.88 | 2.44 | 1.26 | 0.37 | 0.22 |
| &nbsp;&nbsp;&nbsp;Resell agreements | 4.14 | 2.39 | 1.32 | 0.27 | 0.25 |
| &nbsp;&nbsp;&nbsp;Securities | 3.09 | 2.94 | 2.87 | 2.88 | 3.08 |
| &nbsp;&nbsp;&nbsp;Loans, net of unearned discounts | 5.80 | 4.89 | 4.04 | 3.74 | 3.89 |
| &nbsp;&nbsp;&nbsp;Total earning assets | 4.14 | 3.43 | 2.71 | 2.39 | 2.36 |
| Interest-Bearing Liabilities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest-bearing deposits: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Savings and interest checking | 0.27 | 0.07 | 0.04 | 0.01 | 0.01 |
| &nbsp;&nbsp;&nbsp;&nbsp;Money market deposit accounts | 1.94 | 1.08 | 0.35 | 0.12 | 0.11 |
| &nbsp;&nbsp;&nbsp;&nbsp;Time accounts | 1.52 | 0.99 | 0.64 | 0.29 | 0.21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest-bearing deposits | 1.16 | 0.62 | 0.22 | 0.08 | 0.07 |
| &nbsp;&nbsp;&nbsp;Total deposits | 0.69 | 0.37 | 0.13 | 0.05 | 0.04 |
| &nbsp;&nbsp;&nbsp;Federal funds purchased | 3.78 | 2.33 | 0.84 | 0.17 | 0.12 |
| &nbsp;&nbsp;&nbsp;Repurchase agreements | 2.69 | 1.50 | 0.41 | 0.10 | 0.10 |
| &nbsp;&nbsp;&nbsp;Junior subordinated deferrable interest debentures | 5.39 | 3.77 | 2.51 | 1.90 | 1.81 |
| &nbsp;&nbsp;&nbsp;Subordinated notes payable and other notes | 4.69 | 4.69 | 4.69 | 4.69 | 4.70 |
| &nbsp;&nbsp;&nbsp;Total interest-bearing liabilities | 1.37 | 0.71 | 0.26 | 0.11 | 0.10 |
| &nbsp;&nbsp;&nbsp;Net interest spread | 2.77 | 2.72 | 2.45 | 2.28 | 2.26 |
| &nbsp;&nbsp;&nbsp;Net interest income to total average earning assets | 3.31 | 3.01 | 2.56 | 2.33 | 2.31 |
| <u>AVERAGE BALANCES</u> |  |  |  |  |  |
| ($ in millions) |  |  |  |  |  |
| Assets: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest-bearing deposits | 11574 | 12776 | 13041 | 13766 | 15549 |
| &nbsp;&nbsp;&nbsp;Federal funds sold | 52 | 51 | 31 | 14 | 31 |
| &nbsp;&nbsp;&nbsp;Resell agreements | 49 | 10 | 3 | 6 | 8 |
| &nbsp;&nbsp;&nbsp;Securities | 20129 | 19402 | 18130 | 17166 | 14436 |
| &nbsp;&nbsp;&nbsp;Loans, net of unearned discount | 17063 | 16823 | 16674 | 16386 | 15984 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total earning assets | 48867 | 49062 | 47880 | 47339 | 46008 |
| Liabilities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest-bearing deposits: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Savings and interest checking | 12113 | 12235 | 12336 | 11955 | 11205 |
| &nbsp;&nbsp;&nbsp;&nbsp;Money market deposit accounts | 12958 | 13466 | 12608 | 11859 | 10823 |
| &nbsp;&nbsp;&nbsp;&nbsp;Time accounts | 1708 | 1591 | 1427 | 1187 | 1114 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest-bearing deposits | 26779 | 27292 | 26371 | 25001 | 23142 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total deposits | 44759 | 45803 | 44726 | 42962 | 41027 |
| &nbsp;&nbsp;&nbsp;Federal funds purchased | 37 | 42 | 36 | 28 | 27 |
| &nbsp;&nbsp;&nbsp;Repurchase agreements | 3575 | 1960 | 1743 | 2052 | 2368 |
| &nbsp;&nbsp;&nbsp;Junior subordinated deferrable interest debentures | 123 | 123 | 123 | 123 | 126 |
| &nbsp;&nbsp;&nbsp;Subordinated notes payable and other notes | 99 | 99 | 99 | 99 | 99 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total interest-bearing funds | 30613 | 29516 | 28372 | 27302 | 25762 |
| (1) Taxable-equivalent basis assuming a 21% tax rate. | (1) Taxable-equivalent basis assuming a 21% tax rate. | (1) Taxable-equivalent basis assuming a 21% tax rate. | (1) Taxable-equivalent basis assuming a 21% tax rate. | (1) Taxable-equivalent basis assuming a 21% tax rate. | (1) Taxable-equivalent basis assuming a 21% tax rate. |

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