Frost Bank ranks highest in the Texas region for a third consecutive year and achieves the highest score in four of six study factors, according to the J.D. Power and Associates 2012 U.S. Retail Banking Satisfaction Study.^SM Frost not only achieves the highest scores in the Product Offerings, Account Information, Fees, and Account Activities factors, but also performs well in the Facility factor.

With a score of 859 (on a 1,000-point scale), Frost Bank achieves the highest overall satisfaction score among all banks in the Texas region included in the study. The 2012 Retail Banking Satisfaction Study examines the relationship between retail banking customers and their financial institution. The study is designed to provide financial institutions with valuable insights to prioritize and implement changes that improve customer satisfaction.

Frost Bank achieves the highest overall satisfaction score among all banks in the Texas region.

Branch Performance Key to Frost Bank's Success
Branch performance is a key advantage for Frost. According to the 2012 Retail Banking Satisfaction Study, a high percentage of Frost customers say they were greeted as they entered the branch (96% vs. 76% industry average). An even higher percentage say that bank employees thanked them for their business (99% vs. 94% industry average) and nine in 10 Frost customers indicate the bank representative offered additional assistance, compared with 82% industry average.

In-Branch Service Performance
(% of customers reporting having received each contact)

Source: J.D. Power and Associates 2012 Retail Banking Study^SM

Frost Bank excels in providing a personal touch, as 82% of Frost customers say they were called by name while visiting a branch, compared with just 64% industry average. Furthermore, branch wait times at Frost (1.9 minutes) are considerably shorter than industry average (3.1 minutes).

Average Branch Wait Time

Source: J.D. Power and Associates 2012 Retail Banking Study^SM

Frost not only provides customers with above-average service at the branch, but also provides an inviting atmosphere, as 94% of customers provide positive ratings for branch appearance (the leading driver of Facility satisfaction), compared with 85% industry average. Additionally, 65% of Frost customers say their branch offers extended hours, compared with just 55% industry average.

Frost Bank Also Receives High Ratings for Live Phone Service
In addition to exceeding customer expectations at branch office locations, Frost delivers the highest service experience via live phone as well. All Frost customers who responded to the survey for this study indicate they were greeted in a friendly manner; that the service representative gave their name; and that they were thanked for their business. Further, nine in 10 Frost customers say the phone representative had their account information ready, compared with 78% industry average.

Live Phone Service Performance

Source: J.D. Power and Associates 2012 Retail Banking Study^SM

A majority of Frost Bank customers also experience short live phone service wait times, with 83% of customers experiencing a wait time of 2 minutes or less vs. 52% industry average.

Frost Delivers a Strong Value Proposition
In addition to region-leading performance at the branch and in live phone service, the study shows that Frost Bank also delivers a strong value proposition. Frost achieves the highest satisfaction score in the Fees factor--783 vs. 609 industry average. Furthermore, satisfaction in this factor has increased 28 index points year over year for Frost, while the industry average has declined in this area again this year.

A leading driver of Frost's strong performance in the Fees factor is the bank's low number of fee structure changes and the level of customers' understanding of fees. In fact, more than four in 10 Frost customers state they "completely" understand their fee structure (42%) compared with only 26% industry average. Furthermore, fee changes at the industry level (23%) are more than double the number of changes as made by Frost (9%, on average).

Fee Stability and Understanding

Source: J.D. Power and Associates 2012 Retail Banking Study^SM

Frost Bank Achieves High Levels of Customer Recommendation, Loyalty
Customer recommendations and customer loyalty are critical to the long-term success of any organization and Frost Bank excels in both areas. In fact, Frost Bank has the highest percentage (in a tie) of customers who say they "definitely will" recommend the bank (69% vs. 30% industry average). In addition, 95% of Frost customers say they "definitely will" or "probably will" not switch from Frost, compared with only 87% industry average.

A positive on-boarding experience is crucial in satisfying customers from the beginning of their retail bank experience. Frost exceeds the industry average in proportion of customers who say the bank "completely" identified their financial needs at account opening (70% vs. 53% industry average).

About the Study
The 2012 Retail Banking Satisfaction Study is based on responses from nearly 52,000 retail banking customers regarding their experiences with their retail bank. Customer satisfaction with the retail banking experience is measured in six factors: Account Activities; Account Information; Facility; Fees; Problem Resolution; and Product Offerings. Findings are based on data collected from nearly 52,000 retail banking customers of approximately 130 of the largest financial institutions across the United States. The study was fielded in January and February 2012.

2012 Retail Banking Satisfaction Study:
Customer Satisfaction Index Ranking
Texas Region
(based on a 1,000-point scale)

Other banks in the study include (in alphabetical order): Bank of America, BBVA Compass, Citibank, Comerica Bank.

Source: J.D. Power and Associates 2012 Retail Banking Study^SM

Frost Bank:
Highest Customer Satisfaction with Retail Banking in Texas,
Three Years in a Row