XML 42 R25.htm IDEA: XBRL DOCUMENT
v3.25.0.1

Operating Segments | 12 Months Ended
--- | ---
Dec. 31, 2024
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. 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. Non-banks also includes certain eliminating amounts. 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, and (ii) the parent company records the tax expense or benefit necessary to reconcile to the consolidated total. 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. 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 $51.4 billion, $47.2 billion and $42.9 billion at December 31, 2024, 2023 and 2022.
| Banking |  | Frost Wealth Advisors |  | Non-Banks |  | Consolidated
2024 |  |  |  |  |  |  |
Interest income | $ | 2,382,675 |  |  | $ | 7,962 |  |  | $ | — |  |  | $ | 2,390,637 |
Interest expense | 772,075 |  |  | 421 |  |  | 13,529 |  |  | 786,025 |
Net interest income (expense) | 1,610,600 |  |  | 7,541 |  |  | (13,529) |  |  | 1,604,612 |
Credit loss expense | 64,985 |  |  | — |  |  | — |  |  | 64,985 |
Net interest income after credit loss expense | 1,545,615 |  |  | 7,541 |  |  | (13,529) |  |  | 1,539,627 |
Non-interest income: |  |  |  |  |  |  |
Trust and investment management fees | — |  |  | 167,448 |  |  | (2,178) |  |  | 165,270 |
Service charges on deposit accounts | 106,217 |  |  | 13 |  |  | — |  |  | 106,230 |
Insurance commissions and fees | 61,269 |  |  | — |  |  | — |  |  | 61,269 |
Interchange and card transaction fees | 21,017 |  |  | — |  |  | — |  |  | 21,017 |
Other charges, commissions and fees | 30,626 |  |  | 22,717 |  |  | 5 |  |  | 53,348 |
Net gain (loss) on securities transactions | (96) |  |  | — |  |  | — |  |  | (96) |
Other | 45,790 |  |  | 6,011 |  |  | 259 |  |  | 52,060 |
Total non-interest income | 264,823 |  |  | 196,189 |  |  | (1,914) |  |  | 459,098 |
Non-interest expense: |  |  |  |  |  |  |
Salaries and wages | 544,843 |  |  | 74,928 |  |  | 1,623 |  |  | 621,394 |
Employee benefits | 109,431 |  |  | 12,911 |  |  | 104 |  |  | 122,446 |
Net occupancy | 115,136 |  |  | 13,615 |  |  | — |  |  | 128,751 |
Technology, furniture and equipment | 142,517 |  |  | 5,764 |  |  | 206 |  |  | 148,487 |
Deposit insurance | 37,203 |  |  | 66 |  |  | — |  |  | 37,269 |
Other | 189,700 |  |  | 49,790 |  |  | 4,921 |  |  | 244,411 |
Total non-interest expense | 1,138,830 |  |  | 157,074 |  |  | 6,854 |  |  | 1,302,758 |
Income (loss) before income taxes | 671,608 |  |  | 46,656 |  |  | (22,297) |  |  | 695,967 |
Income tax expense (benefit) | 110,524 |  |  | 9,798 |  |  | (6,897) |  |  | 113,425 |
Net income (loss) | 561,084 |  |  | 36,858 |  |  | (15,400) |  |  | 582,542 |
Preferred stock dividends | — |  |  | — |  |  | 6,675 |  |  | 6,675 |
Net income (loss) available to common shareholders | $ | 561,084 |  |  | $ | 36,858 |  |  | $ | (22,075) |  |  | $ | 575,867 |
Revenues from (expenses to) external customers | $ | 1,875,423 |  |  | $ | 203,730 |  |  | $ | (15,443) |  |  | $ | 2,063,710 |
Average assets (in millions) | $ | 49,621 |  |  | $ | 64 |  |  | $ | 9 |  |  | $ | 49,694 |
| Banking |  | Frost Wealth Advisors |  | Non-Banks |  | Consolidated
2023 |  |  |  |  |  |  |
Interest income | $ | 2,209,659 |  |  | $ | 8,057 |  |  | $ | — |  |  | $ | 2,217,716 |
Interest expense | 647,218 |  |  | 437 |  |  | 11,397 |  |  | 659,052 |
Net interest income (expense) | 1,562,441 |  |  | 7,620 |  |  | (11,397) |  |  | 1,558,664 |
Credit loss expense | 46,171 |  |  | — |  |  | — |  |  | 46,171 |
Net interest income after credit loss expense | 1,516,270 |  |  | 7,620 |  |  | (11,397) |  |  | 1,512,493 |
Non-interest income: |  |  |  |  |  |  |
Trust and investment management fees | — |  |  | 155,278 |  |  | (1,963) |  |  | 153,315 |
Service charges on deposit accounts | 93,478 |  |  | 26 |  |  | — |  |  | 93,504 |
Insurance commissions and fees | 58,271 |  |  | — |  |  | — |  |  | 58,271 |
Interchange and card transaction fees | 19,419 |  |  | — |  |  | — |  |  | 19,419 |
Other charges, commissions and fees | 30,217 |  |  | 18,809 |  |  | — |  |  | 49,026 |
Net gain (loss) on securities transactions | 66 |  |  | — |  |  | — |  |  | 66 |
Other | 49,868 |  |  | 4,793 |  |  | 280 |  |  | 54,941 |
Total non-interest income | 251,319 |  |  | 178,906 |  |  | (1,683) |  |  | 428,542 |
Non-interest expense: |  |  |  |  |  |  |
Salaries and wages | 480,083 |  |  | 66,070 |  |  | 1,565 |  |  | 547,718 |
Employee benefits | 103,427 |  |  | 11,776 |  |  | 103 |  |  | 115,306 |
Net occupancy | 109,953 |  |  | 14,443 |  |  | — |  |  | 124,396 |
Technology, furniture and equipment | 129,042 |  |  | 6,054 |  |  | 190 |  |  | 135,286 |
Deposit insurance | 76,535 |  |  | 54 |  |  | — |  |  | 76,589 |
Other | 178,784 |  |  | 46,081 |  |  | 4,502 |  |  | 229,367 |
Total non-interest expense | 1,077,824 |  |  | 144,478 |  |  | 6,360 |  |  | 1,228,662 |
Income (loss) before income taxes | 689,765 |  |  | 42,048 |  |  | (19,440) |  |  | 712,373 |
Income tax expense (benefit) | 111,145 |  |  | 8,830 |  |  | (5,575) |  |  | 114,400 |
Net income (loss) | 578,620 |  |  | 33,218 |  |  | (13,865) |  |  | 597,973 |
Preferred stock dividends | — |  |  | — |  |  | 6,675 |  |  | 6,675 |
Net income (loss) available to common shareholders | $ | 578,620 |  |  | $ | 33,218 |  |  | $ | (20,540) |  |  | $ | 591,298 |
Revenues from (expenses to) external customers | $ | 1,813,760 |  |  | $ | 186,526 |  |  | $ | (13,080) |  |  | $ | 1,987,206 |
Average assets (in millions) | $ | 49,536 |  |  | $ | 59 |  |  | $ | 9 |  |  | $ | 49,604 |
| Banking |  | Frost Wealth Advisors |  | Non-Banks |  | Consolidated
2022 |  |  |  |  |  |  |
Interest income | $ | 1,470,947 |  |  | $ | 4,774 |  |  | $ | — |  |  | $ | 1,475,721 |
Interest expense | 175,480 |  |  | 129 |  |  | 8,829 |  |  | 184,438 |
Net interest income (expense) | 1,295,467 |  |  | 4,645 |  |  | (8,829) |  |  | 1,291,283 |
Credit loss expense | 3,000 |  |  | — |  |  | — |  |  | 3,000 |
Net interest income after credit loss expense | 1,292,467 |  |  | 4,645 |  |  | (8,829) |  |  | 1,288,283 |
Non-interest income: |  |  |  |  |  |  |
Trust and investment management fees | — |  |  | 156,751 |  |  | (2,072) |  |  | 154,679 |
Service charges on deposit accounts | 91,851 |  |  | 40 |  |  | — |  |  | 91,891 |
Insurance commissions and fees | 53,210 |  |  | — |  |  | — |  |  | 53,210 |
Interchange and card transaction fees | 18,231 |  |  | — |  |  | — |  |  | 18,231 |
Other charges, commissions and fees | 24,520 |  |  | 17,070 |  |  | — |  |  | 41,590 |
Net gain (loss) on securities transactions | — |  |  | — |  |  | — |  |  | — |
Other | 43,064 |  |  | 2,013 |  |  | 140 |  |  | 45,217 |
Total non-interest income | 230,876 |  |  | 175,874 |  |  | (1,932) |  |  | 404,818 |
Non-interest expense: |  |  |  |  |  |  |
Salaries and wages | 430,660 |  |  | 59,988 |  |  | 1,448 |  |  | 492,096 |
Employee benefits | 78,178 |  |  | 10,273 |  |  | 157 |  |  | 88,608 |
Net occupancy | 98,916 |  |  | 13,579 |  |  | — |  |  | 112,495 |
Technology, furniture and equipment | 115,257 |  |  | 5,341 |  |  | 173 |  |  | 120,771 |
Deposit insurance | 15,569 |  |  | 34 |  |  | — |  |  | 15,603 |
Other | 147,841 |  |  | 42,794 |  |  | 4,066 |  |  | 194,701 |
Total non-interest expense | 886,421 |  |  | 132,009 |  |  | 5,844 |  |  | 1,024,274 |
Income (loss) before income taxes | 636,922 |  |  | 48,510 |  |  | (16,605) |  |  | 668,827 |
Income tax expense (benefit) | 85,127 |  |  | 10,187 |  |  | (5,637) |  |  | 89,677 |
Net income (loss) | 551,795 |  |  | 38,323 |  |  | (10,968) |  |  | 579,150 |
Preferred stock dividends | — |  |  | — |  |  | 6,675 |  |  | 6,675 |
Net income (loss) available to common shareholders | $ | 551,795 |  |  | $ | 38,323 |  |  | $ | (17,643) |  |  | $ | 572,475 |
Revenues from (expenses to) external customers | $ | 1,526,343 |  |  | $ | 180,519 |  |  | $ | (10,761) |  |  | $ | 1,696,101 |
Average assets (in millions) | $ | 51,448 |  |  | $ | 57 |  |  | $ | 8 |  |  | $ | 51,513 |

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 48 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-48 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 270 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (i) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482964/270-10-50-1 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (ee) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 Reference 5: http://fasb.org/us-gaap/role/ref/otherTransitionRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 Reference 6: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 54 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-54 Reference 7: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 47 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-47 Reference 8: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 54 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-54 Reference 9: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 47 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-47 Reference 10: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 54 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-54 Reference 11: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 47 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-47 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-22 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-31 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-34 Reference 15: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26C -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-26C Reference 16: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26B -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-26B Reference 17: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-15 Reference 18: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-42 Reference 19: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-40 Reference 20: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/280/tableOfContent Reference 21: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-26 Reference 22: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-41 Reference 23: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 24: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 25: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration