EX-99.1 2 a4q24formxex991xpressrelea.htm EX-99.1 - 4Q24 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 30, 2025




CULLEN/FROST REPORTS FOURTH QUARTER AND 2024 ANNUAL RESULTS
Board declares first quarter dividend on common and preferred stock,
and authorizes $150 million stock repurchase program


SAN ANTONIO -- Cullen/Frost Bankers, Inc. (NYSE:CFR) today reported fourth quarter and full-year results for 2024. Net income available to common shareholders for the fourth quarter of 2024 was $153.2 million, representing a $52.3 million increase compared to $100.9 million reported for the fourth quarter of 2023. Results for the fourth quarter of 2023 were impacted by a $51.5 million ($40.7 million net of tax) special surcharge associated with FDIC insurance. Excluding the FDIC surcharge in the year-ago period, fourth quarter 2024 net income available to common shareholders increased by $11.6 million, or 8.2 percent, compared to $141.6 million for the fourth quarter of 2023. On a per-share basis, the company reported net income available to common shareholders of $2.36 per diluted common share for the fourth quarter of 2024, compared to $1.55 per diluted common share for the fourth quarter of 2023. Excluding the after-tax impact of the FDIC surcharge in the fourth quarter of 2023, fourth quarter 2024 diluted earnings per common share increased 8.3 percent compared to $2.18 per diluted common share for the fourth quarter of 2023. The FDIC special surcharge did not affect the fourth quarter of 2024, however, we recognized a total of $9.0 million in such surcharges in the first and second quarters of 2024. For the fourth quarter of 2024, returns on average assets and average common equity were 1.19 percent and 15.58 percent, respectively, compared to 0.82 percent and 13.51 percent for the same period in 2023. Excluding the special


FDIC insurance surcharge, returns on average assets and average common equity for the fourth quarter of 2023 would have been approximately 1.14 percent and 18.96 percent.

The company also reported 2024 annual net income available to common shareholders of $575.9 million, a decrease of 2.6 percent compared to 2023 earnings available to common shareholders of $591.3 million. Excluding the aforementioned special FDIC surcharge amounts, annual net income available to common shareholders for 2024 would have been $583.0 million, representing a decrease of $49.0 million, or 7.8 percent, compared to $632.0 million for 2023. On a per-share basis, 2024 earnings were $8.87 per diluted common share compared to $9.10 per diluted common share reported in 2023. Excluding the after-tax impact of the FDIC surcharge in both periods, 2024 diluted earnings per common share were $8.98 compared to $9.72 per diluted common share reported in 2023. For the year 2024, returns on average assets and average common equity were 1.16 percent and 15.81 percent respectively, compared to 1.19 percent and 18.66 percent reported in 2023.

“Our solid financial results for the fourth quarter were the result of continued focus and execution on the part of Frost bankers throughout the company,” said Cullen/Frost Chairman and CEO Phil Green. “Our people show their commitment to excellence in the way that they carry out our mission each day. That results in an unparalleled customer experience, and ultimately in our consistent growth in new customer relationships. In the fourth quarter, we saw average deposits return to growth on both a linked-quarter and a year-over-year basis.”

For the fourth quarter of 2024, net interest income on a taxable-equivalent basis was $433.7 million, up $23.8 million or 5.8 percent compared to $409.9 million for fourth quarter of 2023. Average loans for the fourth quarter of 2024 increased $1.7 billion, or 9.3 percent, to $20.3 billion, from the $18.6 billion reported for the fourth quarter a year earlier, and increased 1.3 percent compared to $20.1 billion for the third quarter of 2024. Average deposits for the quarter increased $701.7 million, or 1.7 percent to $41.9 billion compared to $41.2 billion in last year's fourth quarter, and increased 2.8 percent compared to $40.7 billion for the third quarter of 2024. Compared to the third quarter of 2024, fourth quarter average non-interest-bearing deposits increased by 2.9 percent and average interest-bearing deposits increased by 2.8 percent.



For full year 2024, average total loans were $19.8 billion, an increase of approximately $1.9 billion, or 10.7 percent, from the $17.9 billion reported in 2023. Average total deposits for 2024 were $41.0 billion, down $472.8 million, or 1.1 percent, compared to the $41.4 billion reported for full year 2023.


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 2024 were 13.62 percent, 14.07 percent, and 15.53 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 $433.7 million for the fourth quarter of 2024, an increase of 5.8 percent compared to the $409.9 million reported for the fourth quarter of 2023. The net interest margin was 3.53 percent for the fourth quarter of 2024 compared to 3.41 percent for the fourth quarter of 2023 and 3.56 percent for the third quarter of 2024.
•Non-interest income for the fourth quarter of 2024 was $122.8 million, up $9.1 million, or 8.0 percent, from the $113.8 million reported a year earlier. Trust and investment management fees increased by $3.6 million, or 9.0 percent, compared to the fourth quarter of 2023. The increase was mainly related to an increase in investment management fees, up $4.0 million compared to the fourth quarter of 2023. Investment management fees are generally based on the market value of assets within customer accounts and are thus impacted by price movements in the equity and bond markets. Service charges on deposit accounts increased by $3.4 million, or 13.8 percent, compared to the fourth quarter of 2023. The increase was driven by increases in overdraft fees and commercial service charges. Other charges, commissions and fees increased $3.1 million, or 25.6 percent, compared to the fourth quarter of 2023. The increase was primarily related to increases in income from the placement of annuities (up $1.1 million) and mutual fund fees (up $308,000), among other things. Insurance commissions and fees increased by $1.5 million, or 11.6 percent, compared to the fourth quarter of 2023. The increase was mainly driven by increases in commission revenues. These increases were partly offset by a decrease of $3.5 million, or 18.0 percent, in other non-
3

interest income for the fourth quarter of 2024 compared to the fourth quarter of 2023. The decrease was mainly driven by a $3.6 million benefit from a wire fraud recovery during the fourth quarter of 2023.
•Non-interest expense for the fourth quarter of 2024 was $336.2 million, down $29.1 million, or 8.0 percent, compared to the $365.2 million reported for the fourth quarter of 2023. Excluding the special surcharge expense associated with FDIC insurance during the fourth quarter of 2023, non-interest expense for the fourth quarter of 2024 increased by $22.5 million, or 7.2 percent, from $313.7 million in the fourth quarter of 2023 to $336.2 million in the fourth quarter of 2024. Salaries and wages expense increased by $18.9 million, or 12.9 percent, compared to the fourth quarter of 2023. The increase in salaries and wages was primarily related to an increase in salaries due to annual merit and market increases and an increase in the number of employees. The increase in the number of employees was partly related to our investment in organic expansion in various markets. Technology, furniture and equipment expense was up $5.3 million, or 15.3 percent, compared to the fourth quarter of 2023. The increase was primarily related to increases in cloud services expense (up $2.8 million), service contracts expense (up $1.1 million), software maintenance (up $498,000), and software amortization (up $483,000), among other things. Net occupancy expense increased by $1.4 million, or 4.4 percent, compared to the fourth quarter or 2023. The increase in net occupancy expense for the quarter was mainly driven by increases in depreciation on buildings and leasehold improvements (up $741,000) and increases in property taxes (up $559,000), among other things.
•For the fourth quarter of 2024, the company reported a credit loss expense of $16.2 million and reported net charge-offs of $14.0 million, compared to a credit loss expense of $19.4 million and net charge-offs of $9.6 million for the third quarter of 2024. For the fourth quarter of 2023, the company reported a credit loss expense of $16.0 million and net charge-offs of $10.9 million. The allowance for credit losses on loans as a percentage of total loans was 1.30 percent at December 31, 2024, compared to 1.31 percent at September 30, 2024, and 1.31 percent at December 31, 2023. Non-accrual loans were $78.9 million at the end of 2024, compared to $104.9 million the previous quarter and $60.9 million at year-end 2023.


4

The Cullen/Frost board declared a first-quarter cash dividend of $0.95 per common share, payable March 14, 2025, 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 17, 2025, to shareholders of record on February 28 of this year.
In addition, the company's board of directors approved a new share repurchase program with authorization to purchase up to $150 million of Cullen/Frost common stock over a one-year period expiring on January 28, 2026. Share repurchases under the authorization may be made through a variety of methods, which may include open market purchases, in privately negotiated transactions, block trades, accelerated share repurchase transactions, and/or through other legally permissible means. The timing and amount of any share repurchases under the authorization will be determined by management at its discretion and based on market conditions and other considerations. The share repurchase program may be suspended or discontinued at any time at the company’s discretion and does not obligate Cullen/Frost to purchase any amount of common stock.
Cullen/Frost Bankers, Inc. will host a conference call on Thursday, January 30, 2025, 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, February 2 at 877-660-6853, with the Conference ID# of
13750974. 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 $52.5 billion in assets at December 31, 2024. 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, Dallas, Fort Worth, Gulf Coast, Houston, Permian Basin, 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.
5

Forward-Looking Statements and Factors that Could Affect Future Results
Certain statements contained in this press 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:
•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 or economic 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 global wars/military conflicts, 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.
6

Cullen/Frost Bankers, Inc.
CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)
(In thousands, except per share amounts)
20242023
4th Qtr3rd Qtr2nd Qtr1st Qtr4th Qtr
CONDENSED INCOME STATEMENTS
Net interest income$413,518 $404,331 $396,712 $390,051 $388,152 
Net interest income (1)
433,726 425,160 417,621 411,367 409,904 
Credit loss expense16,162 19,386 15,787 13,650 15,981 
Non-interest income:
Trust and investment management fees43,765 41,016 41,404 39,085 40,163 
Service charges on deposit accounts27,909 27,412 26,114 24,795 24,535 
Insurance commissions and fees14,215 14,839 13,919 18,296 12,743 
Interchange and card transaction fees5,764 5,428 5,351 4,474 4,608 
Other charges, commissions and fees15,208 13,060 13,020 12,060 12,104 
Net gain (loss) on securities transactions(112)16 — — — 
Other16,075 11,936 11,382 12,667 19,598 
Total non-interest income122,824 113,707 111,190 111,377 113,751 
Non-interest expense:
Salaries and wages165,520 156,637 151,237 148,000 146,616 
Employee benefits28,614 29,060 28,802 35,970 28,065 
Net occupancy32,102 32,497 32,374 31,778 30,752 
Technology, furniture and equipment39,775 37,766 35,951 34,995 34,484 
Deposit insurance6,924 7,238 8,383 14,724 58,109 
Other63,232 60,212 60,217 60,750 67,196 
Total non-interest expense336,167 323,410 316,964 326,217 365,222 
Income before income taxes184,013 175,242 175,151 161,561 120,700 
Income taxes29,161 28,741 29,652 25,871 18,149 
Net income154,852 146,501 145,499 135,690 102,551 
Preferred stock dividends1,669 1,668 1,669 1,669 1,669 
Net income available to common shareholders$153,183 $144,833 $143,830 $134,021 $100,882 
PER COMMON SHARE DATA
Earnings per common share - basic$2.37 $2.24 $2.21 $2.06 $1.55 
Earnings per common share - diluted2.36 2.24 2.21 2.06 1.55 
Cash dividends per common share0.95 0.95 0.92 0.92 0.92 
Book value per common share at end of quarter58.46 62.41 55.02 54.36 55.64 
OUTSTANDING COMMON SHARES
Period-end common shares64,197 63,931 63,989 64,251 64,185 
Weighted-average common shares - basic64,116 63,958 64,193 64,216 64,139 
Dilutive effect of stock compensation121 127 140 156 176 
Weighted-average common shares - diluted64,237 64,085 64,333 64,372 64,315 
SELECTED ANNUALIZED RATIOS
Return on average assets1.19 %1.16 %1.18 %1.09 %0.82 %
Return on average common equity15.58 15.48 17.08 15.22 13.51 
Net interest income to average earning assets (1)
3.53 3.56 3.54 3.48 3.41 
(1) Taxable-equivalent basis assuming a 21% tax rate.
7

Cullen/Frost Bankers, Inc.
CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)
20242023
4th Qtr3rd Qtr2nd Qtr1st Qtr4th Qtr
BALANCE SHEET SUMMARY
($ in millions)
Average Balance:
Loans$20,346 $20,084 $19,652 $19,112 $18,609 
Earning assets47,577 46,100 45,527 45,883 45,579 
Total assets51,008 49,467 48,960 49,324 49,087 
Non-interest-bearing demand deposits14,051 13,659 13,679 13,976 14,697 
Interest-bearing deposits27,834 27,074 26,831 26,748 26,487 
Total deposits41,885 40,733 40,510 40,724 41,184 
Shareholders' equity4,057 3,868 3,533 3,687 3,108 
Period-End Balance:
Loans$20,755 $20,055 $19,996 $19,388 $18,824 
Earning assets48,878 47,424 45,344 46,164 47,124 
Total assets52,520 51,008 48,843 49,505 50,845 
Total deposits42,723 41,721 40,318 40,806 41,921 
Shareholders' equity3,899 4,135 3,666 3,638 3,716 
Adjusted shareholders' equity (1)
5,151 5,051 4,975 4,914 4,836 
ASSET QUALITY
($ in thousands)
Allowance for credit losses on loans:$270,151 $263,129 $256,307 $250,297 $245,996 
As a percentage of period-end loans1.30 %1.31 %1.28 %1.29 %1.31 %
Net charge-offs:$13,962 $9,640 $9,726 $7,349 $10,884 
Annualized as a percentage of average loans0.27 %0.19 %0.20 %0.15 %0.23 %
Non-accrual loans:$78,866 $104,877 $74,987 $71,515 $60,907 
As a percentage of total loans0.38 %0.52 %0.38 %0.37 %0.32 %
As a percentage of total assets0.15 0.21 0.15 0.14 0.12 
CONSOLIDATED CAPITAL RATIOS
Common Equity Tier 1 Risk-Based Capital Ratio13.62 %13.55 %13.35 %13.41 %13.25 %
Tier 1 Risk-Based Capital Ratio14.07 14.02 13.82 13.89 13.73 
Total Risk-Based Capital Ratio15.53 15.50 15.27 15.35 15.18 
Leverage Ratio8.63 8.80 8.62 8.44 8.35 
Equity to Assets Ratio (period-end)7.42 8.11 7.51 7.35 7.31 
Equity to Assets Ratio (average)7.95 7.82 7.22 7.47 6.33 
(1) Shareholders' equity excluding accumulated other comprehensive income (loss).
8

Cullen/Frost Bankers, Inc.
CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)
(In thousands, except per share amounts)
Year Ended December 31,
202420232022
CONDENSED INCOME STATEMENTS
Net interest income$1,604,612 $1,558,664 $1,291,283 
Net interest income (1)
1,687,873 1,651,695 1,386,981 
Credit loss expense64,985 46,171 3,000 
Non-interest income:
Trust and investment management fees165,270 153,315 154,679 
Service charges on deposit accounts106,230 93,504 91,891 
Insurance commissions and fees61,269 58,271 53,210 
Interchange and card transaction fees21,017 19,419 18,231 
Other charges, commissions and fees53,348 49,026 41,590 
Net gain (loss) on securities transactions(96)66 — 
Other52,060 54,941 45,217 
Total non-interest income459,098 428,542 404,818 
Non-interest expense:
Salaries and wages621,394 547,718 492,096 
Employee benefits122,446 115,306 88,608 
Net occupancy128,751 124,396 112,495 
Technology, furniture and equipment148,487 135,286 120,771 
Deposit insurance37,269 76,589 15,603 
Other244,411 229,367 194,701 
Total non-interest expense1,302,758 1,228,662 1,024,274 
Income before income taxes695,967 712,373 668,827 
Income taxes113,425 114,400 89,677 
Net income582,542 597,973 579,150 
Preferred stock dividends6,675 6,675 6,675 
Net income available to common shareholders$575,867 $591,298 $572,475 
PER COMMON SHARE DATA
Earnings per common share - basic$8.88 $9.11 $8.84 
Earnings per common share - diluted8.87 9.10 8.81 
Cash dividends per common share3.74 3.58 3.24 
Book value per common share at end of quarter58.46 55.64 46.49 
OUTSTANDING COMMON SHARES
Period-end common shares64,197 64,185 64,355 
Weighted-average common shares - basic64,121 64,204 64,157 
Dilutive effect of stock compensation142 201 364 
Weighted-average common shares - diluted64,263 64,405 64,521 
SELECTED ANNUALIZED RATIOS
Return on average assets1.16 %1.19 %1.11 %
Return on average common equity15.81 18.66 16.86 
Net interest income to average earning assets (1)
3.53 3.45 2.82 
(1) Taxable-equivalent basis assuming a 21% tax rate.
9

Cullen/Frost Bankers, Inc.
CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)
Year Ended December 31,
202420232022
BALANCE SHEET SUMMARY ($ in millions)
Average Balance:
Loans$19,801 $17,893 $16,739 
Earning assets46,275 46,186 48,293 
Total assets49,694 49,604 51,513 
Non-interest-bearing demand deposits13,841 15,340 18,203 
Interest-bearing deposits27,124 26,098 26,368 
Total deposits40,965 41,438 44,571 
Shareholders' equity3,787 3,313 3,541 
Period-End Balance:
Loans$20,755 $18,824 $17,155 
Earning assets48,878 47,124 49,402 
Total assets52,520 50,845 52,892 
Total deposits42,723 41,921 43,954 
Shareholders' equity3,899 3,716 3,137 
Adjusted shareholders' equity (1)
5,151 4,836 4,486 
ASSET QUALITY ($ in thousands)
Allowance for credit losses on loan:$270,151 $245,996 $227,621 
As a percentage of period-end loans1.30 %1.31 %1.33 %
Net charge-offs:$40,677 $34,486 $15,766 
Annualized as a percentage of average loans0.21 %0.19 %0.09 %
Non-accrual loans:$78,866 $60,907 $37,833 
As a percentage of total loans0.38 %0.32 %0.22 %
As a percentage of total assets0.15 0.12 0.07 
CONSOLIDATED CAPITAL RATIOS
Common Equity Tier 1 Risk-Based Capital Ratio13.62 %13.25 %12.85 %
Tier 1 Risk-Based Capital Ratio14.07 13.73 13.35 
Total Risk-Based Capital Ratio15.53 15.18 14.84 
Leverage Ratio8.63 8.35 7.29 
Equity to Assets Ratio (period-end)7.42 7.31 5.93 
Equity to Assets Ratio (average)7.62 6.68 6.87 
(1) Shareholders' equity excluding accumulated other comprehensive income (loss).



10

Cullen/Frost Bankers, Inc.
TAXABLE-EQUIVALENT YIELD/COST AND AVERAGE BALANCES (UNAUDITED)
20242023
4th Qtr3rd Qtr2nd Qtr1st Qtr4th Qtr
TAXABLE-EQUIVALENT YIELD/COST(1)
Earning Assets:     
Interest-bearing deposits4.71 %5.32 %5.40 %5.40 %5.39 %
Federal funds sold5.16 5.65 5.78 5.76 5.73 
Resell agreements4.88 5.48 5.60 5.60 5.60 
Securities(2)
3.44 3.40 3.38 3.32 3.24 
Loans, net of unearned discounts6.77 7.12 7.08 7.00 6.92 
Total earning assets5.05 5.26 5.23 5.13 5.00 
Interest-Bearing Liabilities:
Interest-bearing deposits:
Savings and interest checking0.29 %0.38 %0.39 %0.42 %0.40 %
Money market deposit accounts2.47 2.80 2.83 2.82 2.83 
Time accounts4.32 4.73 4.77 4.73 4.59 
Total interest-bearing deposits2.14 2.41 2.39 2.34 2.27 
Total deposits1.42 1.60 1.58 1.54 1.46 
Federal funds purchased4.71 5.33 5.39 5.38 5.40 
Repurchase agreements3.34 3.72 3.75 3.76 3.75 
Junior subordinated deferrable interest debentures6.87 7.14 7.47 7.34 7.45 
Subordinated notes payable and other notes4.69 4.69 4.69 4.69 4.69 
Total interest-bearing liabilities2.32 2.60 2.59 2.54 2.48 
Net interest spread2.73 2.66 2.64 2.59 2.52 
Net interest income to total average earning assets3.53 3.56 3.54 3.48 3.41 
AVERAGE BALANCES
($ in millions)
Assets:     
Interest-bearing deposits$8,577 $7,073 $7,156 $7,356 $7,047 
Federal funds sold3 4 5 5 3 
Resell agreements11 41 85 85 86 
Securities - carrying value(2)
18,640 18,898 18,629 19,324 19,834 
Securities - amortized cost(2)
19,944 20,324 20,400 20,813 21,969 
Loans, net of unearned discount20,346 20,084 19,652 19,112 18,609 
Total earning assets$47,577 $46,100 $45,527 $45,883 $45,579 
Liabilities:
Interest-bearing deposits:
Savings and interest checking$9,693 $9,470 $9,716 $9,918 $9,986 
Money market deposit accounts11,683 11,122 11,009 11,058 11,219 
Time accounts6,458 6,482 6,106 5,773 5,282 
Total interest-bearing deposits27,834 27,074 26,831 26,748 26,487 
Total deposits41,885 40,733 40,510 40,724 41,184 
Federal funds purchased24 20 40 33 18 
Repurchase agreements3,946 3,777 3,827 3,787 3,761 
Junior subordinated deferrable interest debentures123 123 123 123 123 
Subordinated notes payable and other notes100 100 100 100 99 
Total interest-bearing funds$32,027 $31,094 $30,921 $30,791 $30,488 
(1) Taxable-equivalent basis assuming a 21% tax rate.
(2) Average securities include unrealized gains and losses on securities available for sale while yields are based on average amortized cost.
11