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Operating Segments | 12 Months Ended
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Dec. 31, 2021
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, Corpus Christi, Dallas, Fort Worth, Houston, Permian Basin, Rio Grande Valley, 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. Banking and Frost Wealth Advisors are delineated by the products and services that each segment offers. The Banking operating segment includes both commercial and consumer banking services and Frost Insurance Agency. Commercial banking services are provided to corporations and other business clients and include a wide array of lending and cash management products. Consumer banking services include direct lending and depository services. Frost Insurance Agency provides insurance brokerage services to individuals and businesses covering corporate and personal property and casualty products, as well as group health and life insurance products. The Frost Wealth Advisors operating segment includes fee-based services within private trust, retirement services, and financial management services, including personal wealth management and securities brokerage services. A third operating segment, Non-Banks, is for the most part the parent holding company, as well as certain other insignificant non-bank subsidiaries of the parent that, for the most part, have little or no activity. The parent company’s principal activities include the direct and indirect ownership of our banking and non-banking subsidiaries and the issuance of debt and equity. Our principal source of revenue is dividends from our subsidiaries. The accounting policies of each reportable segment are the same as those of our consolidated entity except for the following items, which impact the Banking and Frost Wealth Advisors segments: (i) expenses for consolidated back-office operations and general overhead-type expenses such as executive administration, accounting and internal audit are allocated to operating segments based on estimated uses of those services, (ii) income tax expense for the individual segments is calculated essentially at the statutory rate, and (iii) the parent company records the tax expense or benefit necessary to reconcile to the consolidated total. We use a match-funded transfer pricing process to assess operating segment performance. 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. Financial results by operating segment are detailed below. Certain prior period amounts have been reclassified to conform to the current presentation. Frost Wealth Advisors excludes off-balance-sheet managed and custody assets with a total fair value of $43.3 billion, $38.6 billion and $37.8 billion at December 31, 2021, 2020 and 2019.
| Banking |  | Frost Wealth Advisors |  | Non-Banks |  | Consolidated
2021 |  |  |  |  |  |  |
Net interest income (expense) | $ | 989,870 |  |  | $ | 2,138 |  |  | $ | (7,141) |  |  | $ | 984,867 |
Credit loss expense | 54 |  |  | 9 |  |  | — |  |  | 63 |
Non-interest income | 220,662 |  |  | 167,442 |  |  | (1,376) |  |  | 386,728 |
Non-interest expense | 753,719 |  |  | 122,972 |  |  | 5,303 |  |  | 881,994 |
Income (loss) before income taxes | 456,759 |  |  | 46,599 |  |  | (13,820) |  |  | 489,538 |
Income tax expense (benefit) | 41,483 |  |  | 9,786 |  |  | (4,810) |  |  | 46,459 |
Net income (loss) | 415,276 |  |  | 36,813 |  |  | (9,010) |  |  | 443,079 |
Preferred stock dividends | — |  |  | — |  |  | 7,157 |  |  | 7,157 |
Net income (loss) available to common shareholders | $ | 415,276 |  |  | $ | 36,813 |  |  | $ | (16,167) |  |  | $ | 435,922 |
Revenues from (expenses to) external customers | $ | 1,210,532 |  |  | $ | 169,580 |  |  | $ | (8,517) |  |  | $ | 1,371,595 |
Average assets (in millions) | $ | 45,903 |  |  | $ | 70 |  |  | $ | 10 |  |  | $ | 45,983 |
| Banking |  | Frost Wealth Advisors |  | Non-Banks |  | Consolidated
2020 |  |  |  |  |  |  |
Net interest income (expense) | $ | 981,441 |  |  | $ | 2,776 |  |  | $ | (8,216) |  |  | $ | 976,001 |
Credit loss expense | 241,230 |  |  | — |  |  | — |  |  | 241,230 |
Non-interest income | 321,136 |  |  | 145,268 |  |  | (950) |  |  | 465,454 |
Non-interest expense | 718,519 |  |  | 123,630 |  |  | 6,755 |  |  | 848,904 |
Income (loss) before income taxes | 342,828 |  |  | 24,414 |  |  | (15,921) |  |  | 351,321 |
Income tax expense (benefit) | 20,347 |  |  | 5,127 |  |  | (5,304) |  |  | 20,170 |
Net income (loss) | 322,481 |  |  | 19,287 |  |  | (10,617) |  |  | 331,151 |
Preferred stock dividends | — |  |  | — |  |  | 2,016 |  |  | 2,016 |
Redemption of preferred stock | — |  |  | — |  |  | 5,514 |  |  | 5,514 |
Net income (loss) available to common shareholders | $ | 322,481 |  |  | $ | 19,287 |  |  | $ | (18,147) |  |  | $ | 323,621 |
Revenues from (expenses to) external customers | $ | 1,302,577 |  |  | $ | 148,044 |  |  | $ | (9,166) |  |  | $ | 1,441,455 |
Average assets (in millions) | $ | 37,892 |  |  | $ | 59 |  |  | $ | 10 |  |  | $ | 37,961 |
2019 |  |  |  |  |  |  |
Net interest income (expense) | $ | 1,010,368 |  |  | $ | 4,001 |  |  | $ | (10,364) |  |  | $ | 1,004,005 |
Credit loss expense | 33,758 |  |  | 1 |  |  | — |  |  | 33,759 |
Non-interest income | 218,447 |  |  | 145,905 |  |  | (450) |  |  | 363,902 |
Non-interest expense | 703,121 |  |  | 124,622 |  |  | 6,936 |  |  | 834,679 |
Income (loss) before income taxes | 491,936 |  |  | 25,283 |  |  | (17,750) |  |  | 499,469 |
Income tax expense (benefit) | 55,520 |  |  | 5,308 |  |  | (4,958) |  |  | 55,870 |
Net income (loss) | 436,416 |  |  | 19,975 |  |  | (12,792) |  |  | 443,599 |
Preferred stock dividends | — |  |  | — |  |  | 8,063 |  |  | 8,063 |
Net income (loss) available to common shareholders | $ | 436,416 |  |  | $ | 19,975 |  |  | $ | (20,855) |  |  | $ | 435,536 |
Revenues from (expenses to) external customers | $ | 1,228,815 |  |  | $ | 149,906 |  |  | $ | (10,814) |  |  | $ | 1,367,907 |
Average assets (in millions) | $ | 32,019 |  |  | $ | 56 |  |  | $ | 11 |  |  | $ | 32,086 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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