v3.25.2
Operating Segments
 6 Months Ended
Jun. 30, 2025
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 2024 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.
BankingFrost
Wealth
Advisors		Non-BanksConsolidated
Three months ended:
June 30, 2025
Interest income$599,875 $2,083 $— $601,958 
Interest expense169,150 99 3,105 172,354 
Net interest income (expense)430,725 1,984 (3,105)429,604 
Credit loss expense13,129 — — 13,129 
Net interest income after credit loss expense417,596 1,984 (3,105)416,475 
Non-interest income:
Trust and investment management fees— 43,844 (175)43,669 
Service charges on deposit accounts29,149 2 — 29,151 
Insurance commissions and fees13,879 — — 13,879 
Interchange and card transaction fees5,619 — — 5,619 
Other charges, commissions and fees8,031 5,936 — 13,967 
Net gain (loss) on securities transactions— — — — 
Other9,002 1,928 58 10,988 
Total non-interest income65,680 51,710 (117)117,273 
Non-interest expense:
Salaries and wages142,089 19,664 396 162,149 
Employee benefits29,244 3,557 25 32,826 
Net occupancy30,893 3,747 — 34,640 
Technology, furniture and equipment39,178 1,344 50 40,572 
Deposit insurance6,579 11 — 6,590 
Other54,412 13,414 2,525 70,351 
Total non-interest expense302,395 41,737 2,996 347,128 
Income (loss) before income taxes180,881 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 
BankingFrost
Wealth
Advisors		Non-BanksConsolidated
Three months ended:
June 30, 2024
Interest income$594,264 $2,021 $— $596,285 
Interest expense202,924 114 (3,465)199,573 
Net interest income (expense)398,270 1,907 (3,465)396,712 
Credit loss expense15,787 — — 15,787 
Net interest income after credit loss expense382,483 1,907 (3,465)380,925 
Non-interest income:
Trust and investment management fees— 41,950 (546)41,404 
Service charges on deposit accounts26,111 3 — 26,114 
Insurance commissions and fees13,919 — — 13,919 
Interchange and card transaction fees5,351 — — 5,351 
Other charges, commissions and fees7,364 5,656 — 13,020 
Net gain (loss) on securities transactions— — — — 
Other9,433 1,880 69 11,382 
Total non-interest income62,178 49,489 (477)111,190 
Non-interest expense:
Salaries and wages132,831 18,001 405 151,237 
Employee benefits25,663 3,112 27 28,802 
Net occupancy28,872 3,502 — 32,374 
Technology, furniture and equipment34,530 1,368 53 35,951 
Deposit insurance8,353 30 — 8,383 
Other45,947 11,862 2,408 60,217 
Total non-interest expense276,196 37,875 2,893 316,964 
Income (loss) before income taxes168,465 13,521 (6,835)175,151 
Income tax expense (benefit)28,819 2,839 (2,006)29,652 
Net income (loss)139,646 10,682 (4,829)145,499 
Preferred stock dividends— — 1,669 1,669 
Net income (loss) available to common shareholders$139,646 $10,682 $(6,498)$143,830 
Revenues from (expenses to) external customers$460,448 $51,396 $(3,942)$507,902 
Average assets (in millions)$48,897 $54 $9 $48,960 
BankingFrost
Wealth
Advisors		Non-BanksConsolidated
Six months ended:
June 30, 2025
Interest income$1,183,116 $3,959 $— $1,187,075 
Interest expense334,850 188 6,213 341,251 
Net interest income (expense)848,266 3,771 (6,213)845,824 
Credit loss expense26,199 — — 26,199 
Net interest income after credit loss expense822,067 3,771 (6,213)819,625 
Non-interest income:
Trust and investment management fees— 87,388 (788)86,600 
Service charges on deposit accounts57,767 5 — 57,772 
Insurance commissions and fees34,898 — — 34,898 
Interchange and card transaction fees11,021 — — 11,021 
Other charges, commissions and fees15,437 12,116 — 27,553 
Net gain (loss) on securities transactions(14)— — (14)
Other20,387 2,951 116 23,454 
Total non-interest income139,496 102,460 (672)241,284 
Non-interest expense:
Salaries and wages283,181 39,033 792 323,006 
Employee benefits66,582 8,351 50 74,983 
Net occupancy60,629 7,288 — 67,917 
Technology, furniture and equipment77,735 2,852 103 80,690 
Deposit insurance13,750 24 — 13,774 
Other105,240 26,054 3,530 134,824 
Total non-interest expense607,117 83,602 4,475 695,194 
Income (loss) before income taxes354,446 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 
BankingFrost
Wealth
Advisors		Non-BanksConsolidated
Six months ended:
June 30, 2024
Interest income$1,177,993 $3,792 $— $1,181,785 
Interest expense387,918 216 6,888 395,022 
Net interest income (expense)790,075 3,576 (6,888)786,763 
Credit loss expense29,437 — — 29,437 
Net interest income after credit loss expense760,638 3,576 (6,888)757,326 
Non-interest income:
Trust and investment management fees— 81,530 (1,041)80,489 
Service charges on deposit accounts50,903 6 — 50,909 
Insurance commissions and fees32,215 — — 32,215 
Interchange and card transaction fees9,825 — — 9,825 
Other charges, commissions and fees14,489 10,591 — 25,080 
Net gain (loss) on securities transactions— — — — 
Other21,126 2,788 135 24,049 
Total non-interest income128,558 94,915 (906)222,567 
Non-interest expense:
Salaries and wages262,863 35,563 811 299,237 
Employee benefits57,537 7,182 53 64,772 
Net occupancy57,008 7,144 — 64,152 
Technology, furniture and equipment68,045 2,800 101 70,946 
Deposit insurance23,066 41 — 23,107 
Other94,507 23,118 3,342 120,967 
Total non-interest expense563,026 75,848 4,307 643,181 
Income (loss) before income taxes326,170 22,643 (12,101)336,712 
Income tax expense (benefit)54,454 4,755 (3,686)55,523 
Net income (loss)271,716 17,888 (8,415)281,189 
Preferred stock dividends— — 3,338 3,338 
Net income (loss) available to common shareholders$271,716 $17,888 $(11,753)$277,851 
Revenues from (expenses to) external customers$918,633 $98,491 $(7,794)$1,009,330 
Average assets (in millions)$49,074 $59 $9 $49,142