Condensed Financial Statements of Parent Company (Tables)

12 Months Ended

Dec. 31, 2015

Condensed Balance Sheets



	December 31,
	2015		2014
Assets:
Cash	$	6,434	$	7,335
Resell agreements	200,100		286,660
Total cash and cash equivalents	206,534		293,995
Investment in subsidiaries	2,920,506		2,791,647
Accrued interest receivable and other assets	36,578		29,705
Total assets	$	3,163,618	$	3,115,347
Liabilities:
Junior subordinated deferrable interest debentures	$	137,115	$	137,115
Subordinated notes payable	100,000		100,000
Accrued interest payable and other liabilities	36,160		26,829
Total liabilities	273,275		263,944
Shareholders’ Equity	2,890,343		2,851,403
Total liabilities and shareholders’ equity	$	3,163,618	$	3,115,347

Condensed Statements of Income



	Year Ended December 31,
	2015		2014		2013
Income:
Dividend income paid by Frost Bank	$	126,375	$	114,439	$	144,642
Dividend income paid by non-banks	1,830		4,323		2,819
Interest and other income	82		69		79
Total income	128,287		118,831		147,540
Expenses:
Interest expense	3,673		3,381		7,365
Salaries and employee benefits	1,376		1,218		1,175
Other	5,727		8,526		6,735
Total expenses	10,776		13,125		15,275
Income before income taxes and equity in undistributed earnings of subsidiaries	117,511		105,706		132,265
Income tax benefit	6,062		6,702		7,845
Equity in undistributed earnings of subsidiaries	155,755		165,569		97,756
Net income	279,328		277,977		237,866
Preferred stock dividends	8,063		8,063		6,719
Net income available to common shareholders	$	271,265	$	269,914	$	231,147

Condensed Statements of Cash Flows



	Year Ended December 31,
	2015			2014			2013
Operating Activities:
Net income	$	279,328		$	277,977		$	237,866
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed earnings of subsidiaries	(155,755		)	(165,569		)	(97,756		)
Stock-based compensation	480			441			330
Excess tax benefits from stock-based compensation	(161		)	(165		)	(155		)
Net change in other assets and other liabilities	2,621			(1,984		)	2,372
Net cash from operating activities	126,513			110,700			142,657

Investing Activities:
Redemption of investment in Frost Securities, Inc.	216			—			—
Net cash received in acquisitions	—			830,661			—
Capital contribution to subsidiaries	—			(879,730		)	—
Net cash from investing activities	216			(49,069		)	—

Financing Activities:
Proceeds from stock option exercises	14,853			29,158			68,653
Proceeds from stock-based compensation activities of subsidiaries	12,257			12,062			11,633
Excess tax benefits from stock-based compensation	161			165			155
Proceeds from issuance of preferred stock	—			—			144,486
Purchase of treasury stock	(101,237		)	(1,457		)	(144,630		)
Cash dividends paid on preferred stock	(8,063		)	(8,063		)	(6,719		)
Cash dividends paid on common stock	(132,161		)	(127,178		)	(119,619		)
Net cash from financing activities	(214,190		)	(95,313		)	(46,041		)
Net change in cash and cash equivalents	(87,461		)	(33,682		)	96,616
Cash and cash equivalents at beginning of year	293,995			327,677			231,061
Cash and cash equivalents at end of year	$	206,534		$	293,995		$	327,677