Condensed Financial Statements of Parent Company (Tables)

12 Months Ended

Dec. 31, 2021

Condensed Balance Sheets


	December 31,
	2021		2020
Assets:
Cash	$	471,875	$	381,240
Resell agreements	—		—
Total cash and cash equivalents	471,875		381,240
Investment in subsidiaries	4,222,288		4,155,619
Accrued interest receivable and other assets	2,228		2,164
Total assets	$	4,696,391	$	4,539,023
Liabilities:
Junior subordinated deferrable interest debentures, net of unamortized issuance costs	$	123,011	$	136,357
Subordinated notes, net of unamortized issuance costs	99,178		99,021
Accrued interest payable and other liabilities	34,647		10,629
Total liabilities	256,836		246,007
Shareholders’ Equity	4,439,555		4,293,016
Total liabilities and shareholders’ equity	$	4,696,391	$	4,539,023

Condensed Statements of Income


	Year Ended December 31,
	2021		2020		2019
Income:
Dividend income paid by Frost Bank	$	219,386	$	298,884	$	234,531
Dividend income paid by non-banks	473		736		1,822
Interest and other income	101		446		2,868
Total income	219,960		300,066		239,221
Expenses:
Interest expense	7,141		8,216		10,363
Salaries and employee benefits	1,499		1,581		1,551
Other	5,867		6,833		7,033
Total expenses	14,507		16,630		18,947
Income before income taxes and equity in undistributed earnings of subsidiaries	205,453		283,436		220,274
Income tax benefit	4,899		5,406		5,135
Equity in undistributed earnings of subsidiaries	232,727		42,309		218,190
Net income	443,079		331,151		443,599
Preferred stock dividends	7,157		2,016		8,063
Redemption of preferred stock	—		5,514		—
Net income available to common shareholders	$	435,922	$	323,621	$	435,536

Condensed Statements of Cash Flows


	Year Ended December 31,
	2021		2020		2019
Operating Activities:
Net income	$	443,079	$	331,151	$	443,599
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed earnings of subsidiaries	(232,727)		(42,309)		(218,190)
Stock-based compensation	700		770		780
Net tax benefit from stock-based compensation	278		370		240
Net change in other assets and other liabilities	23,890		(8,937)		22,216
Net cash from operating activities	235,220		281,045		248,645

Investing Activities:
Redemption of investment in non-bank subsidiary	406		—		—


Net cash from investing activities	406		—		—

Financing Activities:
Principal payments on long-term borrowings	(13,403)		—		—
Redemption of Series A preferred stock	—		(150,000)		—
Proceeds from issuance of Series B preferred stock	—		145,452		—


Proceeds from stock option exercises	54,417		12,557		20,770
Proceeds from stock-based compensation activities of subsidiaries	12,053		13,148		15,166
Purchase of treasury stock	(3,864)		(15,785)		(68,793)
Treasury stock issued to 401(k) stock purchase plan	1,749		10,307		—
Cash dividends paid on preferred stock	(7,157)		(2,016)		(8,063)
Cash dividends paid on common stock	(188,786)		(180,584)		(177,006)
Net cash from financing activities	(144,991)		(166,921)		(217,926)
Net change in cash and cash equivalents	90,635		114,124		30,719
Cash and cash equivalents at beginning of year	381,240		267,116		236,397
Cash and cash equivalents at end of year	$	471,875	$	381,240	$	267,116