Condensed Financial Statements of Parent Company (Tables)

12 Months Ended

Dec. 31, 2020

Condensed Balance Sheets


	December 31,
	2020		2019
Assets:
Cash	$	381,240	$	9,116
Resell agreements	—		258,000
Total cash and cash equivalents	381,240		267,116
Investment in subsidiaries	4,155,619		3,896,962
Accrued interest receivable and other assets	2,164		2,545
Total assets	$	4,539,023	$	4,166,623
Liabilities:
Junior subordinated deferrable interest debentures, net of unamortized issuance costs	$	136,357	$	136,299
Subordinated notes, net of unamortized issuance costs	99,021		98,865
Accrued interest payable and other liabilities	10,629		19,791
Total liabilities	246,007		254,955
Shareholders’ Equity	4,293,016		3,911,668
Total liabilities and shareholders’ equity	$	4,539,023	$	4,166,623

Condensed Statements of Income


	Year Ended December 31,
	2020		2019		2018
Income:
Dividend income paid by Frost Bank	$	298,884	$	234,531	$	223,371
Dividend income paid by non-banks	736		1,822		953
Interest and other income	446		2,868		1,828
Total income	300,066		239,221		226,152
Expenses:
Interest expense	8,216		10,363		9,948
Salaries and employee benefits	1,581		1,551		1,973
Other	6,833		7,033		7,016
Total expenses	16,630		18,947		18,937
Income before income taxes and equity in undistributed earnings of subsidiaries	283,436		220,274		207,215
Income tax benefit	5,406		5,135		5,218
Equity in undistributed earnings of subsidiaries	42,309		218,190		242,485
Net income	331,151		443,599		454,918
Preferred stock dividends	2,016		8,063		8,063
Redemption of preferred stock	5,514		—		—
Net income available to common shareholders	$	323,621	$	435,536	$	446,855

Condensed Statements of Cash Flows


	Year Ended December 31,
	2020		2019		2018
Operating Activities:
Net income	$	331,151	$	443,599	$	454,918
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed earnings of subsidiaries	(42,309)		(218,190)		(242,485)
Stock-based compensation	770		780		721
Net tax benefit from stock-based compensation	370		240		304
Net change in other assets and other liabilities	(8,937)		22,216		(12,709)
Net cash from operating activities	281,045		248,645		200,749

Investing Activities:



Net cash from investing activities	—		—		—

Financing Activities:
Redemption of Series A preferred stock	(150,000)		—		—
Proceeds from issuance of Series B preferred stock	145,452		—		—


Proceeds from stock option exercises	12,557		20,770		31,647
Proceeds from stock-based compensation activities of subsidiaries	13,148		15,166		13,222
Purchase of treasury stock	(15,785)		(68,793)		(101,010)
Treasury stock issued to 401(k) stock purchase plan	10,307		—		—
Cash dividends paid on preferred stock	(2,016)		(8,063)		(8,063)
Cash dividends paid on common stock	(180,584)		(177,006)		(165,449)
Net cash from financing activities	(166,921)		(217,926)		(229,653)
Net change in cash and cash equivalents	114,124		30,719		(28,904)
Cash and cash equivalents at beginning of year	267,116		236,397		265,301
Cash and cash equivalents at end of year	$	381,240	$	267,116	$	236,397