Operating Segments

6 Months Ended

Jun. 30, 2026

Segment Reporting [Abstract]

Operating Segments

Operating Segments

We are managed under a matrix organizational structure whereby our two primary operating segments, Banking and Frost Wealth Advisors, overlap a regional reporting structure. The regions are primarily based upon geographic location and include Austin, Dallas, Fort Worth, Gulf Coast (which includes Corpus Christi and the Rio Grande Valley), Houston, Permian Basin, San Antonio, and Statewide. We are primarily managed based on the line of business structure. In that regard, all regions have the same lines of business, which have the same product and service offerings, have similar types and classes of customers, and utilize similar service delivery methods. Pricing guidelines for products and services are the same across all regions. The regional reporting structure is primarily a means to scale the lines of business to provide a local, community focus for customer relations and business development. See our 2025 Form 10-K for additional information about our operating segments and related accounting policies.

Our chief executive officer is our chief operating decision maker. We use a match-funded transfer pricing process to allocate costs, capital, and resources to each operating segment. The process helps us to (i) identify the cost or opportunity value of funds within each business segment, (ii) measure the profitability of a particular business segment by relating appropriate costs to revenues, (iii) evaluate each business segment in a manner consistent with its economic impact on consolidated earnings, and (iv) enhance asset and liability pricing decisions. Our chief executive officer reviews actual net income versus budgeted net income to assess segment performance on a monthly basis and to make decisions about allocating capital and personnel to the segments. Financial results by operating segment, including significant expense categories provided to the chief operating decision maker, are detailed below.

	Banking		Frost Wealth Advisors		Non-Banks		Consolidated
Three months ended:
June 30, 2026
Interest income	$	592,937	$	1,826	$	—	$	594,763
Interest expense	144,062		82		2,891		147,035
Net interest income (expense)	448,875		1,744		(2,891)		447,728
Credit loss expense	9,767		—		—		9,767
Net interest income after credit loss expense	439,108		1,744		(2,891)		437,961
Non-interest income:
Trust and investment management fees	—		47,681		(38)		47,643
Service charges on deposit accounts	34,172		5		—		34,177
Insurance commissions and fees	14,166		—		—		14,166
Interchange and card transaction fees	6,546		—		—		6,546
Other charges, commissions and fees	7,944		5,843		—		13,787
Net gain (loss) on securities transactions	—		—		—		—
Other	10,577		1,334		51		11,962
Total non-interest income	73,405		54,863		13		128,281
Non-interest expense:
Salaries and wages	151,014		21,520		421		172,955
Employee benefits	31,023		4,107		26		35,156
Net occupancy	31,280		3,943		—		35,223
Technology, furniture and equipment	40,908		1,604		52		42,564
Deposit insurance	6,296		9		—		6,305
Other	53,052		14,182		2,263		69,497
Total non-interest expense	313,573		45,365		2,762		361,700
Income (loss) before income taxes	198,940		11,242		(5,640)		204,542
Income tax expense (benefit)	31,887		2,361		(1,765)		32,483
Net income (loss)	167,053		8,881		(3,875)		172,059
Preferred stock dividends	—		—		1,669		1,669
Net income (loss) available to common shareholders	$	167,053	$	8,881	$	(5,544)	$	170,390
Revenues from (expenses to) external customers	$	522,280	$	56,607	$	(2,878)	$	576,009
Average assets (in millions)	$	52,541	$	76	$	9	$	52,626

	Banking		Frost Wealth Advisors		Non-Banks		Consolidated
Three months ended:
June 30, 2025
Interest income	$	599,875	$	2,083	$	—	$	601,958
Interest expense	169,150		99		3,105		172,354
Net interest income (expense)	430,725		1,984		(3,105)		429,604
Credit loss expense	13,129		—		—		13,129
Net interest income after credit loss expense	417,596		1,984		(3,105)		416,475
Non-interest income:
Trust and investment management fees	—		43,844		(175)		43,669
Service charges on deposit accounts	29,149		2		—		29,151
Insurance commissions and fees	13,879		—		—		13,879
Interchange and card transaction fees	5,619		—		—		5,619
Other charges, commissions and fees	8,031		5,936		—		13,967
Net gain (loss) on securities transactions	—		—		—		—
Other	9,002		1,928		58		10,988
Total non-interest income	65,680		51,710		(117)		117,273
Non-interest expense:
Salaries and wages	142,089		19,664		396		162,149
Employee benefits	29,244		3,557		25		32,826
Net occupancy	30,893		3,747		—		34,640
Technology, furniture and equipment	39,178		1,344		50		40,572
Deposit insurance	6,579		11		—		6,590
Other	54,412		13,414		2,525		70,351
Total non-interest expense	302,395		41,737		2,996		347,128
Income (loss) before income taxes	180,881		11,957		(6,218)		186,620
Income tax expense (benefit)	28,891		2,511		(1,785)		29,617
Net income (loss)	151,990		9,446		(4,433)		157,003
Preferred stock dividends	—		—		1,669		1,669
Net income (loss) available to common shareholders	$	151,990	$	9,446	$	(6,102)	$	155,334
Revenues from (expenses to) external customers	$	496,405	$	53,694	$	(3,222)	$	546,877
Average assets (in millions)	$	51,117	$	65	$	9	$	51,191

	Banking		Frost Wealth Advisors		Non-Banks		Consolidated
Six months ended:
June 30, 2026
Interest income	$	1,169,269	$	3,461	$	—	$	1,172,730
Interest expense	280,524		166		5,790		286,480
Net interest income (expense)	888,745		3,295		(5,790)		886,250
Credit loss expense	16,512		—		—		16,512
Net interest income after credit loss expense	872,233		3,295		(5,790)		869,738
Non-interest income:
Trust and investment management fees	—		95,813		(213)		95,600
Service charges on deposit accounts	66,324		10		—		66,334
Insurance commissions and fees	36,241		—		—		36,241
Interchange and card transaction fees	13,078		—		—		13,078
Other charges, commissions and fees	15,183		11,872		—		27,055
Net gain (loss) on securities transactions	—		—		—		—
Other	23,589		2,607		92		26,288
Total non-interest income	154,415		110,302		(121)		264,596
Non-interest expense:
Salaries and wages	296,844		41,458		843		339,145
Employee benefits	70,715		9,045		52		79,812
Net occupancy	62,062		7,914		—		69,976
Technology, furniture and equipment	81,000		3,136		102		84,238
Deposit insurance	13,488		20		—		13,508
Other	109,578		27,996		3,133		140,707
Total non-interest expense	633,687		89,569		4,130		727,386
Income (loss) before income taxes	392,961		24,028		(10,041)		406,948
Income tax expense (benefit)	62,010		5,046		(3,154)		63,902
Net income (loss)	330,951		18,982		(6,887)		343,046
Preferred stock dividends	—		—		3,338		3,338
Net income (loss) available to common shareholders	$	330,951	$	18,982	$	(10,225)	$	339,708
Revenues from (expenses to) external customers	$	1,043,160	$	113,597	$	(5,911)	$	1,150,846
Average assets (in millions)	$	52,287	$	77	$	9	$	52,373

	Banking		Frost Wealth Advisors		Non-Banks		Consolidated
Six months ended:
June 30, 2025
Interest income	$	1,183,116	$	3,959	$	—	$	1,187,075
Interest expense	334,850		188		6,213		341,251
Net interest income (expense)	848,266		3,771		(6,213)		845,824
Credit loss expense	26,199		—		—		26,199
Net interest income after credit loss expense	822,067		3,771		(6,213)		819,625
Non-interest income:
Trust and investment management fees	—		87,388		(788)		86,600
Service charges on deposit accounts	57,767		5		—		57,772
Insurance commissions and fees	34,898		—		—		34,898
Interchange and card transaction fees	11,021		—		—		11,021
Other charges, commissions and fees	15,437		12,116		—		27,553
Net gain (loss) on securities transactions	(14)		—		—		(14)
Other	20,387		2,951		116		23,454
Total non-interest income	139,496		102,460		(672)		241,284
Non-interest expense:
Salaries and wages	283,181		39,033		792		323,006
Employee benefits	66,582		8,351		50		74,983
Net occupancy	60,629		7,288		—		67,917
Technology, furniture and equipment	77,735		2,852		103		80,690
Deposit insurance	13,750		24		—		13,774
Other	105,240		26,054		3,530		134,824
Total non-interest expense	607,117		83,602		4,475		695,194
Income (loss) before income taxes	354,446		22,629		(11,360)		365,715
Income tax expense (benefit)	56,417		4,752		(3,379)		57,790
Net income (loss)	298,029		17,877		(7,981)		307,925
Preferred stock dividends	—		—		3,338		3,338
Net income (loss) available to common shareholders	$	298,029	$	17,877	$	(11,319)	$	304,587
Revenues from (expenses to) external customers	$	987,762	$	106,231	$	(6,885)	$	1,087,108
Average assets (in millions)	$	50,987	$	68	$	9	$	51,064