Condensed Financial Statements of Parent Company

12 Months Ended

Dec. 31, 2019

Condensed Financial Information 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,
	2019		2018
Assets:
Cash	$	9,116	$	11,397
Resell agreements	258,000		225,000
Total cash and cash equivalents	267,116		236,397
Investment in subsidiaries	3,896,962		3,362,474
Accrued interest receivable and other assets	2,545		9,122
Total assets	$	4,166,623	$	3,607,993
Liabilities:
Junior subordinated deferrable interest debentures, net of unamortized issuance costs	$	136,299	$	136,242
Subordinated notes, net of unamortized issuance costs	98,865		98,708
Accrued interest payable and other liabilities	19,791		4,126
Total liabilities	254,955		239,076
Shareholders’ Equity	3,911,668		3,368,917
Total liabilities and shareholders’ equity	$	4,166,623	$	3,607,993

Condensed Statements of Income

	Year Ended December 31,
	2019		2018		2017
Income:
Dividend income paid by Frost Bank	$	234,531	$	223,371	$	149,671
Dividend income paid by non-banks	1,822		953		915
Interest and other income	2,868		1,828		421
Total income	239,221		226,152		151,007
Expenses:
Interest expense	10,363		9,948		7,815
Salaries and employee benefits	1,551		1,973		1,202
Other	7,033		7,016		6,373
Total expenses	18,947		18,937		15,390
Income before income taxes and equity in undistributed earnings of subsidiaries	220,274		207,215		135,617
Income tax benefit	5,135		5,218		7,092
Equity in undistributed earnings of subsidiaries	218,190		242,485		221,440
Net income	443,599		454,918		364,149
Preferred stock dividends	8,063		8,063		8,063
Net income available to common shareholders	$	435,536	$	446,855	$	356,086

Condensed Statements of Cash Flows

	Year Ended December 31,
	2019			2018			2017
Operating Activities:
Net income	$	443,599		$	454,918		$	364,149
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed earnings of subsidiaries	(218,190		)	(242,485		)	(221,440		)
Stock-based compensation	780			721			519
Net tax benefit from stock-based compensation	240			304			318
Net change in other assets and other liabilities	22,216			(12,709		)	7,665
Net cash from operating activities	248,645			200,749			151,211
Investing Activities:
Net cash from investing activities	—			—			—
Financing Activities:
Proceeds from issuance of subordinated notes	—			—			98,434
Principal payments on subordinated notes	—			—			(100,000		)
Proceeds from stock option exercises	20,770			31,647			67,746
Proceeds from stock-based compensation activities of subsidiaries	15,166			13,222			12,494
Purchase of treasury stock	(68,793		)	(101,010		)	(101,473		)
Cash dividends paid on preferred stock	(8,063		)	(8,063		)	(8,063		)
Cash dividends paid on common stock	(177,006		)	(165,449		)	(144,172		)
Net cash from financing activities	(217,926		)	(229,653		)	(175,034		)
Net change in cash and cash equivalents	30,719			(28,904		)	(23,823		)
Cash and cash equivalents at beginning of year	236,397			265,301			289,124
Cash and cash equivalents at end of year	$	267,116		$	236,397		$	265,301