Condensed Financial Statements of Parent Company

12 Months Ended

Dec. 31, 2017

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Financial Statements of Parent Company

Condensed Financial Statements of Parent Company

Condensed financial statements pertaining only to Cullen/Frost Bankers, Inc. are presented below. Investments in subsidiaries are stated using the equity method of accounting.

Condensed Balance Sheets

	December 31,
	2017		2016
Assets:
Cash	$	9,301	$	9,854
Resell agreements	256,000		279,270
Total cash and cash equivalents	265,301		289,124
Investment in subsidiaries	3,274,921		2,949,346
Accrued interest receivable and other assets	3,006		5,799
Total assets	$	3,543,228	$	3,244,269
Liabilities:
Junior subordinated deferrable interest debentures, net of unamortized issuance costs	$	136,184	$	136,127
Subordinated notes, net of unamortized issuance costs	98,552		99,990
Accrued interest payable and other liabilities	10,629		5,624
Total liabilities	245,365		241,741
Shareholders’ Equity	3,297,863		3,002,528
Total liabilities and shareholders’ equity	$	3,543,228	$	3,244,269

Condensed Statements of Income

	Year Ended December 31,
	2017		2016		2015
Income:
Dividend income paid by Frost Bank	$	149,671	$	141,377	$	126,375
Dividend income paid by non-banks	915		895		1,830
Interest and other income	421		33		82
Total income	151,007		142,305		128,287
Expenses:
Interest expense	7,815		4,624		3,673
Salaries and employee benefits	1,202		1,828		1,376
Other	6,373		5,933		5,727
Total expenses	15,390		12,385		10,776
Income before income taxes and equity in undistributed earnings of subsidiaries	135,617		129,920		117,511
Income tax benefit	7,092		7,015		6,062
Equity in undistributed earnings of subsidiaries	221,440		167,326		155,755
Net income	364,149		304,261		279,328
Preferred stock dividends	8,063		8,063		8,063
Net income available to common shareholders	$	356,086	$	296,198	$	271,265

Condensed Statements of Cash Flows

	Year Ended December 31,
	2017			2016			2015
Operating Activities:
Net income	$	364,149		$	304,261		$	279,328
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed earnings of subsidiaries	(221,440		)	(167,326		)	(155,755		)
Stock-based compensation	519			520			480
Net tax benefit from stock-based compensation	318			185			161
Net change in other assets and other liabilities	7,665			(940		)	2,460
Net cash from operating activities	151,211			136,700			126,674
Investing Activities:
Redemption of investment in Frost Securities, Inc.	—			—			216
Net cash from investing activities	—			—			216
Financing Activities:
Proceeds from issuance of subordinated notes	98,434			—			—
Principal payments on subordinated notes	(100,000		)	—			—
Proceeds from stock option exercises	67,746			78,866			14,853
Proceeds from stock-based compensation activities of subsidiaries	12,494			11,279			12,257
Purchase of treasury stock	(101,473		)	(1,290		)	(101,237		)
Cash dividends paid on preferred stock	(8,063		)	(8,063		)	(8,063		)
Cash dividends paid on common stock	(144,172		)	(134,902		)	(132,161		)
Net cash from financing activities	(175,034		)	(54,110		)	(214,351		)
Net change in cash and cash equivalents	(23,823		)	82,590			(87,461		)
Cash and cash equivalents at beginning of year	289,124			206,534			293,995
Cash and cash equivalents at end of year	$	265,301		$	289,124		$	206,534