LAREDO, Texas--(BUSINESS WIRE)--International Bancshares Corporation (NASDAQ: IBOC) ("IBC†) announces the declaration of a $0.73 per share cash dividend for shareholders. ...

Financial Position - As of September 30, 2025, the fair value of residential mortgage-backed securities was $4,845,524,000, while available-for-sale debt securities totaled $4,985,888,000[40]. - The company had $4,993,310,000 in available-for-sale securities as of December 31, 2024, with residential mortgage-backed securities valued at $4,835,176,000[43]. - The total investment securities held by the company as of September 30, 2025, amounted to $4,980,342,000, with residential mortgage-backed securities valued at $4,845,524,000[99]. - The balance in equity securities with readily determinable fair values was $5,546,000 as of September 30, 2025, reflecting an increase from $5,394,000 at December 31, 2024[107]. - The company reported a total of $9.400969 billion in the loan portfolio as of September 30, 2025, compared to $8.809826 billion as of December 31, 2024[89]. Loan Performance - As of September 30, 2025, total loans amounted to $9,400,969,000, an increase from $8,809,826,000 as of December 31, 2024, representing a growth of approximately 6.67%[67]. - The total commercial real estate loans reached $6,261,871,000 as of September 30, 2025, up from $5,722,372,000 as of December 31, 2024, reflecting an increase of approximately 9.4%[71]. - The total balance of loans classified as Watch List—Doubtful is evaluated using the fair value of collateral method, with specific reserves allocated as necessary based on borrower conditions and economic factors[76]. - The total non-accrual loans as of September 30, 2025, amounted to $153,882,000, a decrease from $169,136,000 at December 31, 2024, representing a decline of about 9%[85]. - The total past due loans as of December 31, 2024, were $138.946 million, indicating a significant increase in past due loans year-over-year[89]. Credit Losses and Allowance - The allowance for credit losses (ACL) methodology measures lifetime losses on loan pools with similar risk characteristics, ensuring a conservative approach to risk management[68]. - The allowance for credit losses (ACL) increased from $154,983,000 on June 30, 2025, to $155,506,000 on September 30, 2025, reflecting a net increase of $523,000[81]. - The credit loss expense for the three months ended September 30, 2025, was $1,827,000, compared to $8,602,000 for the same period in 2024, indicating a significant decrease in credit loss expense year-over-year[81]. - The total balance of the allowance for credit losses for domestic loans was $28,656,000 as of September 30, 2025, showing a slight increase from $28,414,000 on June 30, 2025[81]. - The company reported a net recovery of $721,000 credited to the allowance for the three months ended September 30, 2025, compared to a net loss recovery of $1,304,000 for the same period in 2024[81]. Capital Adequacy - The company continues to exceed all capital adequacy requirements under the Basel III capital rules as of September 30, 2025[123]. - CET1 to risk-weighted assets ratio was 23.20% as of September 30, 2025, compared to 22.42% on December 31, 2024[125]. - Tier 1 capital-to-average-total-asset (leverage) ratio was 19.35% as of September 30, 2025, up from 18.84% on December 31, 2024[125]. - Risk-weighted Tier 1 capital ratio stood at 23.80% as of September 30, 2025, compared to 23.06% on December 31, 2024[125]. - Total capital ratio was 24.99% as of September 30, 2025, compared to 24.31% on December 31, 2024[125]. Stock-Based Compensation - Stock-based compensation expense for the three months ended September 30, 2025, was $20,000, compared to $47,000 for the same period in 2024[94]. - As of September 30, 2025, there were 170,835 options outstanding with a weighted average exercise price of $35.46[94]. - The total unrecognized stock-based compensation cost related to non-vested options was approximately $132,000, expected to be recognized over a weighted average period of 1.25 years[94]. - A total of 434,529 Stock Appreciation Rights (SARs) had been issued under the SAR Plan as of September 30, 2025[95]. - The total expense recorded in connection with all grants under the SAR Plan for the nine months ended September 30, 2025, was $2,020,000, a decrease from $2,271,000 for the same period in 2024[97]. Economic Environment - The economic environment has posed challenges for borrowers, with increasing capitalization rates and elevated office vacancies contributing to the risk in large loans[77]. - Management's evaluation of the ACL considers various qualitative factors, including trends in portfolio volume, classified loans, and economic conditions, which could impact future credit loss estimates[79]. - The company has implemented a large loan operational risk factor in its ACL calculation starting Q2 2023, acknowledging the heightened risk of default associated with large loans in the current economic environment[77]. - The company did not provide any modifications to borrowers experiencing financial difficulties for the nine months ended September 30, 2025[85]. - The past due loans in the commercial real estate sector increased due to two loans secured by commercial properties placed on non-accrual status in Q4 2024[89].

Financial Performance - International Bancshares Corporation reported net income for the three and nine months ended September 30, 2025, with specific figures detailed in the attached news release[5]. Compliance and Reporting - The report was filed on November 6, 2025, indicating timely compliance with SEC regulations[2]. Stock Information - The company is listed on The Nasdaq Stock Market under the trading symbol IBOC[4].

Core Insights - International Bancshares Corporation (IBC) reported strong earnings for Q3 2025, with net income of $108.4 million, representing an 8.8% increase in diluted earnings per share compared to Q3 2024 [1][2] - For the first nine months of 2025, net income was $305.4 million, a 3.8% increase from the same period in 2024 [1][2] - The company continues to focus on customer service and efficient management practices, including the implementation of AI initiatives to enhance operational efficiency [3] Financial Performance - Q3 2025 net income: $108.4 million or $1.74 diluted earnings per share, compared to $99.8 million or $1.60 diluted earnings per share in Q3 2024 [1] - Nine-month net income for 2025: $305.4 million or $4.91 diluted earnings per share, compared to $294.1 million or $4.72 diluted earnings per share in the same period of 2024 [1] - Interest income from investment and loan portfolios positively impacted net income, while interest expense increased due to higher rates on deposits [2] Asset and Loan Growth - Total assets as of September 30, 2025, were approximately $16.6 billion, up from $15.7 billion at the end of 2024 [4] - Total net loans reached approximately $9.2 billion as of September 30, 2025, compared to $8.7 billion at the end of 2024 [4] - Deposits increased to approximately $12.5 billion as of September 30, 2025, from approximately $12.1 billion at the end of 2024 [4] Company Overview - IBC is a multi-bank financial holding company headquartered in Laredo, Texas, operating 166 facilities and 255 ATMs across 75 communities in Texas and Oklahoma [5]

Financial Position - As of June 30, 2025, the fair value of residential mortgage-backed securities was $4,869,078,000, while available-for-sale securities totaled $5,015,326,000[38]. - The fair value of doubtful loans classified as Watch List was $25,064,000 as of June 30, 2025, with a net provision during the period of $2,378,000[42]. - The company reported $158,263,000 of doubtful commercial collateral-dependent loans as of June 30, 2025, compared to approximately $168,621,000 as of December 31, 2024[45]. - The company’s available-for-sale securities included residential mortgage-backed securities valued at $4,835,176,000 as of December 31, 2024[38]. - Total loans increased to $9,138,620,000 as of June 30, 2025, up from $8,809,826,000 at December 31, 2024, representing a growth of 3.73%[63]. - The carrying amount of fixed-rate performing loans was $1,258,953,000 as of June 30, 2025, with an estimated fair value of $1,183,192,000[54]. - The carrying amount of time deposits was $3,015,589,000 as of June 30, 2025, with an estimated fair value of $3,014,207,000[56]. - The fair value of deposits with no stated maturity was equal to the amount payable on demand as of June 30, 2025[56]. - The fair value of fixed-rate long-term FHLB borrowings was estimated at $10,437,000 as of June 30, 2025, unchanged from December 31, 2024[59]. - The carrying amount of accrued interest approximated fair value as of June 30, 2025[55]. Risk Management - The company’s risk management practices include monitoring borrower relationships and loan performance regularly to identify potential repayment issues[67]. - The current economic environment has led to increased risks for borrowers, including rising capitalization rates and significant increases in interest rates, impacting large loans[74]. - The large loan operational risk factor was introduced in Q2 2023, acknowledging the heightened risk of default associated with larger loans[72]. - The analysis of specific reserves for doubtful loans considers various factors, including the borrower's ability to pay and economic conditions affecting their industry[71]. Allowance for Credit Losses - The allowance for credit losses (ACL) recorded charges of $2,228,000 for the twelve months ended December 31, 2024, related to loans transferred to other real estate owned[46]. - The allowance for credit losses (ACL) for the three months ended June 30, 2025, was $154,983,000, down from $158,707,000 at the end of the previous quarter[77]. - Losses charged to the allowance during this period totaled $9,978,000, while recoveries credited to the allowance were $1,856,000, resulting in a net loss recovery of $8,122,000[77]. - The credit loss expense for the three months ended June 30, 2025, was $4,398,000, reflecting the ongoing economic challenges faced by borrowers[77]. - The management's evaluation of the ACL incorporates qualitative factors such as trends in portfolio volume, classified loans, and economic conditions, which are critical in determining future credit loss expenses[76]. - The methodology for estimating the ACL includes a two-year reasonable and supportable forecast period, reverting to the average lifetime loss-rate thereafter[76]. - The balance of the ACL for domestic commercial loans as of June 30, 2025, was $28,414,000, while foreign commercial loans stood at $54,065,000[77]. - The company has opted not to measure an ACL for accrued interest receivable, relying on timely identification and write-off of uncollectible amounts[75]. - The total balance of loans evaluated for impairment was $158,832,000 for individually evaluated loans and $8,979,788,000 for collectively evaluated loans, with total allowances of $12,888,000 and $142,095,000 respectively[80]. - The credit loss expense for the six months ended June 30, 2025 was $7,727,000, compared to a credit loss expense of $21,749,000 for the same period in 2024, indicating a significant decrease[79]. - The total non-accrual loans as of June 30, 2025 amounted to $158,746,000, with $80,721,000 classified as having no credit allowance[81]. - The allowance for credit losses (ACL) at June 30, 2025 was deemed adequate to absorb probable losses from loans in the portfolio, reflecting management's judgment on loss exposure[83]. Loan Performance - The total past due loans as of June 30, 2025 amounted to $119,879,000, an increase from $138,946,000 on December 31, 2024, indicating a rise in loan delinquencies[85]. - The commercial real estate: multifamily loans past due 30-59 days increased due to a loan secured by a multifamily affordable housing community[85]. - The total portfolio for past due loans increased from $8,670,880,000 on December 31, 2024, to $9,018,741,000 on June 30, 2025[85]. - The total past due loans in the commercial sector rose from $56,226,000 in December 2024 to $55,730,000 in June 2025[85]. - The residential first lien loans past due increased to $11,792,000 as of June 30, 2025, compared to $9,731,000 on December 31, 2024[85]. - The commercial loans past due 90 days or more increased due to two loans secured by commercial properties placed on non-accrual in Q4 2024[85]. - The total past due loans in the foreign sector decreased slightly from $3,147,000 in December 2024 to $3,857,000 in June 2025[85]. - The commercial real estate: farmland & commercial loans past due 90 days or greater increased to $27,615,000 as of June 30, 2025, from $27,637,000 in December 2024[85]. - The consumer loans past due increased to $315,000 as of June 30, 2025, compared to $170,000 on December 31, 2024[85]. - The decrease in commercial real estate: multifamily loans past due 90 days or greater was attributed to two loans that were brought current during the non-accrual period[85]. Capital and Regulatory Compliance - As of June 30, 2025, the CET1 to risk-weighted assets ratio was 23.23%, compared to 22.42% on December 31, 2024[123]. - The Tier 1 capital-to-average-total-assets (leverage) ratio was 19.51% on June 30, 2025, up from 18.84% on December 31, 2024[123]. - The risk-weighted total capital ratio was 25.06% as of June 30, 2025, compared to 24.31% on December 31, 2024[123]. - The company opted out of including most components of accumulated other comprehensive income (loss) in the CET1 capital calculation[123]. - The company and its Subsidiary Banks are subject to regulatory capital requirements administered by the Federal Reserve and FDIC[125]. - As of June 30, 2025, the company believes it meets all capital adequacy requirements[125]. - The implementation of Basel IV is targeted to begin on July 1, 2025, with full compliance expected by July 1, 2028[120]. - The Economic Growth, Regulatory Relief and Consumer Protection Act of 2018 allows banks with assets under $10 billion to be exempt from risk-based capital requirements[122]. - The company recognized the capital impact of adopting CECL accounting standards on January 1, 2020, leading to an increase in the allowance for probable loan losses[119]. Stock and Dividends - Cash dividends paid per share were $0.70 on February 28, 2025, compared to $0.66 on February 28, 2024[113]. - The stock repurchase program was extended to allow for the purchase of up to $150 million of common stock during the 12-month period starting March 15, 2025[114]. - As of August 4, 2025, a total of 13,795,319 shares had been repurchased at a cost of $419,939,000[114]. Investment Securities - The total investment securities at June 30, 2025, included available-for-sale debt securities with an amortized cost of $5,397,669,000 and an estimated fair value of $5,009,843,000[95]. - Proceeds from the sales and calls of available-for-sale debt securities were $4,235,000 for the six months ended June 30, 2025, with no gross gains or losses realized[100]. - The company evaluated debt securities classified as available-for-sale and held-to-maturity and determined no unrealized losses were attributable to credit-related reasons[94]. - The amortized cost of available-for-sale debt investment securities pledged for fiduciary powers was $1,720,908,000 at June 30, 2025[99]. - As of June 30, 2025, gross unrealized losses on debt investment securities totaled $413,023,000, with $401,353,000 attributed to residential mortgage-backed securities[102]. - At December 31, 2024, gross unrealized losses on debt investment securities were $493,583,000, with $489,170,000 from residential mortgage-backed securities[102]. - Equity securities with readily determinable fair values were valued at $5,483,000 as of June 30, 2025, compared to $5,394,000 at December 31, 2024[102]. - For the six months ended June 30, 2025, net gains recognized on equity securities amounted to $89,000, while net losses for the same period in 2024 were $80,000[104]. - Investments in low-income housing tax credit (LIHTC) projects totaled $192,616,000 at June 30, 2025, with unfunded commitments of $32,504,000[105].

Financial Results - International Bancshares Corporation reported net income for the three and six months ended June 30, 2025, with specific figures detailed in the attached news release[5]. - The news release announcing the financial results was dated August 7, 2025, and is filed as Exhibit 99[8]. Regulatory Information - The financial results are intended to be included under "Item 7.01 – Regulation Fair Disclosure" and are not subject to the liabilities of Section 18 of the Securities Exchange Act of 1934[6].

Fair Value and Securities - As of March 31, 2025, the fair value of residential mortgage-backed securities was $4,874,583,000, while the total available-for-sale securities amounted to $5,025,486,000[34]. - The fair value of doubtful commercial collateral-dependent loans was $164,472,000 as of March 31, 2025, compared to $168,621,000 as of December 31, 2024[39]. - The total fair value of available-for-sale securities as of December 31, 2024, was $4,993,310,000, with residential mortgage-backed securities valued at $4,835,176,000[34]. - The company had no transfers between levels of the fair value hierarchy during the three months ended March 31, 2025[36]. - The company’s fair value measurements are classified within Level 1 or 2 of the valuation hierarchy, with equity securities having readily determinable fair values classified within Level 1[34]. - The total fair value of doubtful loans on the watch list was $167,987,000 as of March 31, 2025[36]. - The fair value of fixed-rate long-term FHLB borrowings remained stable at $10,489,000 as of March 31, 2025, unchanged from December 31, 2024[52]. - The fair value of accrued interest approximates the carrying amounts, indicating stability in interest income recognition[48]. - The fair value of variable rate performing loans approximates their carrying amount, reflecting market alignment[47]. - The fair value of securities sold under repurchase agreements approximated their carrying amounts, indicating short-term stability[50]. - As of March 31, 2025, the total investment securities amounted to $5,020,025,000, with available-for-sale debt securities showing unrealized losses of $447,029,000[87]. - Residential mortgage-backed securities held as available-for-sale totaled $5,294,142,000, with an estimated fair value of $4,874,583,000, reflecting a significant unrealized loss of $439,216,000[87]. - The fair value of available-for-sale debt investment securities pledged for fiduciary powers was $1,630,062,000 as of March 31, 2025[93]. - The company evaluated its debt securities and determined that no unrealized losses were due to credit-related reasons, maintaining a strong position in its investment portfolio[86]. Allowance for Credit Losses (ACL) - For the three months ended March 31, 2025, the company recorded $46,000 in charges to the allowance for credit losses (ACL) related to loans transferred to other real estate owned[40]. - The allowance for credit losses (ACL) methodology is based on lifetime loss estimates for loan pools with similar risk characteristics, ensuring conservative risk management practices[58]. - The allowance for credit losses (ACL) at March 31, 2025, is $158.707 million, a decrease from $156.537 million at December 31, 2024[70]. - Losses charged to the ACL for the three months ended March 31, 2024, included a charge-down of approximately $25.6 million due to a loan in the oil and gas sector[71]. - The total recorded investment for loans individually evaluated for impairment as of March 31, 2025, is $165.078 million, while the allowance for these loans is $18.632 million[72]. - The total recorded investment for loans collectively evaluated for impairment as of March 31, 2025, is $8.915 billion, with an allowance of $140.075 million[72]. - The company has added an operational risk factor for large loans to the ACL calculation starting in Q2 2023 due to increased default risk in the current economic environment[67]. - The current economic environment has led to challenges for borrowers, including rising capitalization rates and significant increases in interest rates, contributing to elevated risks in large loans[67]. - The methodology for estimating the ACL includes both quantitative historical loss percentages and qualitative current conditions, reverting to average lifetime loss rates beyond a two-year forecast period[69]. - The company has not measured an ACL for accrued interest receivable, relying on timely identification and write-off of uncollectible interest[68]. - The total credit loss expense for the three months ended March 31, 2025, is $3.329 million[70]. - The company expects to recover a portion of the $25.6 million charge-down through repayment from the guarantor via arbitration[71]. - As of March 31, 2025, total non-accrual loans amounted to $165,022,000, with a non-accrual credit allowance of $77,951,000[73]. - The total past due loans as of March 31, 2025, reached $110,103,000, with $8,970,117,000 in current loans, resulting in a total portfolio of $9,080,220,000[77]. - The commercial loans past due 90 days or more increased to $47,039,000, attributed to two loans secured by commercial properties placed on non-accrual in Q4 2024[77]. - The allowance for credit losses (ACL) as of March 31, 2025, was deemed adequate by management to absorb probable losses from the loan portfolio[75]. - No modifications were provided to borrowers experiencing financial difficulties for the three months ended March 31, 2025[73]. - The total past due loans as of December 31, 2024, were $138,946,000, with a current loan portfolio of $8,670,880,000[77]. - The commercial real estate: multifamily loans past due 90 days or greater decreased, primarily due to two loans being brought current during the non-accrual period[77]. - The total non-accrual loans as of December 31, 2024, were $169,136,000, with a non-accrual credit allowance of $76,313,000[73]. - The company considers commercial and industrial or real estate loans as a loss when exposure beyond collateral coverage is apparent[74]. - Unsecured consumer loans are charged-off when they are 90 days past due[74]. Loan Portfolio and Performance - As of March 31, 2025, the total loans amounted to $9,080,220,000, an increase of 3.1% from $8,809,826,000 on December 31, 2024[57]. - The carrying amount of fixed-rate performing loans was $1,257,044,000 as of March 31, 2025, compared to $1,216,156,000 as of December 31, 2024, reflecting a growth of 3.4%[47]. - The estimated fair value of time deposits was $2,943,387,000 on March 31, 2025, slightly up from $2,895,245,000 on December 31, 2024, indicating an increase of 1.7%[49]. - The total commercial real estate loans reached $5,963,802,000 as of March 31, 2025, up from $5,722,372,000 on December 31, 2024, representing a growth of 4.2%[61]. - As of March 31, 2025, the total loan balance is $9,080,220,000, showing an increase from $8,842,073,000 in the prior year[79]. - The commercial loan segment has a total balance of $1,874,670,000, down from $1,812,481,000 in 2024, indicating a decrease of approximately 1.2%[79]. - The commercial real estate loans, specifically in farmland and commercial, have a total balance of $3,077,306,000, a decrease from $3,077,306,000 in 2024[79]. - The residential first lien loans show a total balance of $543,053,000, slightly increasing from $542,376,000 in the previous year[79]. - The consumer loan segment has a total balance of $52,111,000, which remains unchanged from the previous year[79]. - Current-period gross write-offs for commercial loans amount to $1,788,000, while residential first lien write-offs are $46,000[79]. - The foreign loan segment has a total balance of $187,160,000, reflecting a decrease from $187,160,000 in the prior year[79]. - The watch list for commercial loans includes $11,113,000 classified as pass, indicating no change from the previous year[79]. - The total balance for residential junior lien loans is $478,543,000, which is consistent with the previous year's figure[79]. - The overall loan portfolio reflects a diverse range of credit quality indicators across various loan classes[79]. - Total commercial loans increased to $1,851,803,000 in 2024, up from $1,786,716,000 in 2023, representing a growth of approximately 3.6%[80]. - The total balance for commercial real estate: farmland & commercial reached $2,927,803,000 in 2024, compared to $2,755,715,000 in 2023, indicating an increase of about 6.2%[80]. Stock and Capital Management - The company reported a stock-based compensation expense of $45,000 for the three months ended March 31, 2025, down from $74,000 in the same period of 2024, reflecting a decrease of approximately 39.2%[82]. - As of March 31, 2025, there were 201,824 stock options outstanding with a weighted average exercise price of $35.11[82]. - The total number of stock appreciation rights (SARs) outstanding as of March 31, 2025, was 452,127, with an average exercise price of $39.61[84]. - The fair value of the liability for payments due to SAR holders was approximately $4,924,000 as of March 31, 2025, compared to $4,540,000 at December 31, 2024[85]. - The company experienced a decrease in Watch List – Substandard Commercial real estate: farmland & commercial loans due to the upgrade of two loans to Special Review[80]. - The total unrecognized stock-based compensation cost related to non-vested options was approximately $173,000 as of March 31, 2025[82]. - The expense recorded in connection with all grants under the SAR Plan totaled $388,000 for the three months ended March 31, 2025, compared to $1,080,000 for the same period in 2024[85]. - The company has the right to defer interest payments on Debentures for up to 20 consecutive quarterly periods[99]. - The interest rates on Capital and Common Securities transitioned to the Three-Month CME Term SOFR with a spread adjustment of 26 basis points as of July 1, 2023[101]. - The company believes it meets all fully phased-in capital adequacy requirements as of March 31, 2025[107]. - The company paid cash dividends of $0.70 per share on February 28, 2025, up from $0.66 per share on February 28, 2024[102]. - The Board authorized a stock repurchase program of up to $150 million for the 12-month period starting March 15, 2025[103]. - A total of 13,793,396 shares had been repurchased at a cost of $419,819,000 as of May 1, 2025[103]. - As of March 31, 2025, the total of $108,868,000 of Capital and Common Securities outstanding qualified as Tier 1 capital[100]. - The CET1 to risk-weighted assets ratio was 22.41% on March 31, 2025, compared to 22.42% on December 31, 2024[113]. - The Tier 1 capital-to-average-total-asset (leverage) ratio was 18.91% as of March 31, 2025[113]. - The risk-weighted Tier 1 capital ratio was 23.03% on March 31, 2025, slightly down from 23.06% on December 31, 2024[113]. Borrowing and Debt Management - Other borrowed funds increased to $30,489,000 as of March 31, 2025, compared to $10,541,000 at December 31, 2024, indicating a substantial rise in borrowing[97]. - The company reported no allowances for debt securities in the allowance for credit losses (ACL) for the period, as no unrealized losses were attributed to credit-related reasons[86]. - The amortized cost of investments in low-income housing tax credit (LIHTC) projects was $187,040,000 as of March 31, 2025, with unfunded commitments totaling $23,772,000[96]. - The principal amount of junior subordinated debentures outstanding remained stable at $108,868,000 as of March 31, 2025, consistent with the previous reporting period[98]. - The company recognized net gains of $67,000 on equity securities during the three months ended March 31, 2025, compared to net losses of $57,000 in the same period of the previous year[96]. - Proceeds from the sales and calls of available-for-sale debt securities were $3,505,000 for the three months ended March 31, 2025, with no gross gains or losses realized[94].

Financial Performance - International Bancshares Corporation reported net income for the three months ended March 31, 2025, details of which are included in the news release dated May 5, 2025[5] - The financial results and additional information are intended to comply with Regulation Fair Disclosure[6] Company Information - The company is listed on The Nasdaq Stock Market under the trading symbol IBOC[4] - The report was signed by Dennis E. Nixon, President and CEO, on May 5, 2025[13]

Part I [Item 1. Business](index=3&type=section&id=Item%201.%20Business) International Bancshares Corporation is a multibank financial holding company providing diverse commercial and retail banking services across Texas and Oklahoma, operating in a highly regulated and competitive environment - International Bancshares Corporation is a registered **multibank financial holding company** with five wholly-owned subsidiary banks, providing commercial and retail banking services across Texas and Oklahoma[12](index=12&type=chunk)[13](index=13&type=chunk)[14](index=14&type=chunk)[15](index=15&type=chunk)[16](index=16&type=chunk) - The company operates in north, south, central, and southeast Texas, and Oklahoma, with **166 facilities** and **255 ATMs** serving **75 communities**[12](index=12&type=chunk)[18](index=18&type=chunk) - As of December 31, 2024, the company employed approximately **2,103 full-time** and **233 part-time persons**, with **66% of its 300-person officer management team** having over **15 years of tenure**[21](index=21&type=chunk) - The workforce is diverse, with approximately **75% identifying as Latino or Hispanic** and **65% as women** as of December 31, 2024[27](index=27&type=chunk) Deposits from Persons and Entities Domiciled in Mexico (as % of total deposits) | Year | Percentage of Total Deposits (%) | | :--- | :------------------------------- | | 2024 | 31 | | 2023 | 29 | | 2022 | 28 | FDIC Deposit Insurance Expense | Year | Expense (in millions USD) | | :--- | :------------------------ | | 2024 | 6.865 | | 2023 | 6.285 | | 2022 | 6.987 | - As of December 31, 2024, the company's leverage ratio was **18.84%**, and all Subsidiary Banks were classified as "**well capitalized**"[86](index=86&type=chunk)[90](index=90&type=chunk) - As of December 31, 2024, approximately **$1.44 billion** was available for dividend payments to the holding company by its Subsidiary Banks, assuming they remain "well capitalized"[76](index=76&type=chunk) - All Subsidiary Banks received a "**Satisfactory**" CRA rating, with two classified as "**intermediate small banks**" and three as "**large banks**" as of January 1, 2025[124](index=124&type=chunk) - The company amended its Compensation Clawback Policy to meet **Nasdaq Rule 5608 standards**, effective October 2, 2023[154](index=154&type=chunk) [Item 1A. Risk Factors](index=47&type=section&id=Item%201A.%20Risk%20Factors) The company faces material risks from loan losses, real estate values, competition, interest rate fluctuations, regulation, cybersecurity, and stock volatility - The company's allowance for probable loan losses is inherently subjective and may be insufficient, potentially decreasing net income and capital[160](index=160&type=chunk) - A significant portion of the loan portfolio is secured by real estate, making it vulnerable to declines in real estate values in its target markets[162](index=162&type=chunk) - The company operates in a highly competitive industry, facing national, regional, and community banks, as well as non-bank entities, fintechs, and alternative financial providers[163](index=163&type=chunk)[166](index=166&type=chunk) - Failure to successfully invest in, adapt to, and integrate **AI technologies** could impair the company's competitive position and negatively impact revenue and profitability[170](index=170&type=chunk) - The company's earnings are subject to interest rate risk, with volatility potentially impacting net interest income and asset/liability valuations[176](index=176&type=chunk)[178](index=178&type=chunk) - The company relies heavily on dividends from its Subsidiary Banks for most of its revenue, which are subject to federal and state regulatory limits[185](index=185&type=chunk) - Negative publicity, diminished depositor confidence, and increased bank-run contagion could negatively impact the company's financial condition, operations, and stock price[201](index=201&type=chunk) - New or increased international tariffs, particularly by the United States on Mexico, could weaken the Mexican economy and negatively impact the company's deposit base and loan demand[206](index=206&type=chunk) - As of December 31, 2024, the company had approximately **$108 million** in junior subordinated debentures outstanding, which are senior to common stock and can impact dividend payments[210](index=210&type=chunk)[212](index=212&type=chunk) [Item 1B. Unresolved Staff Comments](index=64&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reported no unresolved staff comments from the SEC [Item 1C. Cybersecurity](index=64&type=section&id=Item%201C.%20Cybersecurity) The company prioritizes cybersecurity through robust, multi-layer security procedures, an ISSP informed by industry frameworks, and governance involving a CISO and various committees - The company's Information Systems Security Program (ISSP) incorporates provisions from statutory, regulatory guidance, and leading industry frameworks such as the **NIST Cybersecurity Framework**[214](index=214&type=chunk) - Key cybersecurity policies include Enterprise Information Systems Security, Corporate Account Takeover, Vendor Management, Service Center Physical Security, and Security Incident Response[215](index=215&type=chunk)[217](index=217&type=chunk) - The company conducts annual self-assessments using the **Cyber Risk Institute**, regular employee training, security-incident preparedness simulations, and disaster recovery tests[217](index=217&type=chunk) - **Multi-factor authentication (MFA)** protections are implemented for retail, commercial, and treasury customers to enhance online banking security[218](index=218&type=chunk)[220](index=220&type=chunk) - Cybersecurity governance is overseen by a **Security Council Committee (SCC)** and a **Chief Information Security Officer (CISO)** who reports to senior management and the Board[221](index=221&type=chunk)[224](index=224&type=chunk) - An **Incident Response Team (IRT)** is available 24/7 to address cybersecurity incidents, following a structured policy for reporting, analysis, mitigation, and escalation[225](index=225&type=chunk)[230](index=230&type=chunk) [Item 2. Properties](index=73&type=section&id=Item%202.%20Properties) The company's principal offices are in Laredo, Texas, with Subsidiary Banks operating mostly owned facilities across Texas and Oklahoma, all within regulatory investment limits - The company's principal offices are in Laredo, Texas, occupying approximately **147,000 square feet** in owned buildings[233](index=233&type=chunk) - Subsidiary Banks operate facilities in regions including Laredo, San Antonio, Austin, Dallas, Houston, Zapata, Eagle Pass, Rio Grande Valley, Coastal Bend of Texas, and throughout Oklahoma[233](index=233&type=chunk) - Texas state-chartered Subsidiary Banks cannot invest more than their Tier 1 capital in facilities and equipment without prior approval, while Oklahoma state-chartered banks have a similar limit based on Tier 1 and Tier 2 capital; none exceed these limits[234](index=234&type=chunk) [Item 3. Legal Proceedings](index=73&type=section&id=Item%203.%20Legal%20Proceedings) The company and its subsidiaries are involved in various legal proceedings, but management believes any material loss is remote or not material to financial position or results of operations - The company and its subsidiaries are involved in various legal proceedings, but management assesses that any material loss is remote or not material to financial position or results of operations[235](index=235&type=chunk) [Item 4. Mine Safety Disclosures](index=73&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) The company has no disclosures related to mine safety [Item 4A. Executive Officers of the Registrant](index=74&type=section&id=Item%204A.%20Executive%20Officers%20of%20the%20Registrant) The executive officers of International Bancshares Corporation, including Dennis E. Nixon, Dalia F. Martinez, and Judith I. Wawroski, serve until the 2025 Annual Meeting of Shareholders, with no family relationships and extensive tenure Executive Officers of the Registrant | Name | Age | Position of Office | Officer of the Company Since | | :--------------- | :-- | :------------------------------------------------------------------------------- | :--------------------------- | | Dennis E. Nixon | 82 | Chairman of the Board (since 1992), President (since 1979), CEO and Director of IBC | 1979 | | Dalia F. Martinez| 64 | Vice President (since 2021), Executive Vice President of IBC | 2021 | | Judith I. Wawroski | 50 | Treasurer (since 2017), Principal Financial Officer (since 2017), Executive Vice President of IBC | 2017 | Part II [Item 5. Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=74&type=section&id=Item%205.%20Market%20for%20the%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) This section incorporates by reference information regarding the market for the company's common equity, related stockholder matters, and issuer purchases of equity securities from the 2024 Annual Report to Shareholders - Information on common stock, dividends, stock repurchase programs, and equity compensation plans is incorporated by reference from pages 24 and 25 of the 2024 Annual Report to Shareholders[240](index=240&type=chunk) [Item 6. Selected Financial Data](index=74&type=section&id=Item%206.%20Selected%20Financial%20Data) This section incorporates by reference the selected financial data from the 2024 Annual Report to Shareholders - Selected financial data is incorporated by reference from page 1 of the 2024 Annual Report to Shareholders[241](index=241&type=chunk) [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=74&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section incorporates by reference the Management's Discussion and Analysis of Financial Condition and Results of Operations from the 2024 Annual Report to Shareholders - Management's Discussion and Analysis of Financial Condition and Results of Operations is incorporated by reference from pages 2 through 24 of the 2024 Annual Report to Shareholders[242](index=242&type=chunk) [Item 7A. Quantitative and Qualitative Disclosures about Market Risk](index=74&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section incorporates by reference quantitative and qualitative disclosures about market risk from the 2024 Annual Report to Shareholders - Quantitative and Qualitative Disclosures about Market Risk are incorporated by reference from pages 15 through 20 of the 2024 Annual Report to Shareholders[243](index=243&type=chunk) [Item 8. Financial Statements and Supplementary Data](index=74&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section incorporates by reference the consolidated financial statements and supplementary data, including condensed quarterly income statements, from the 2024 Annual Report to Shareholders - Consolidated financial statements (pages 27-79) and condensed quarterly income statements (pages 80-81) from the 2024 Annual Report to Shareholders are incorporated by reference[244](index=244&type=chunk)[245](index=245&type=chunk) [Item 9. Changes In and Disagreements with Accountants on Accounting and Financial Disclosure](index=75&type=section&id=Item%209.%20Changes%20In%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reported no changes in or disagreements with accountants on accounting and financial disclosure [Item 9A. Controls and Procedures](index=75&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of December 31, 2024, with an unqualified opinion from RSM US LLP - Disclosure controls and procedures were evaluated and deemed **effective** as of December 31, 2024[247](index=247&type=chunk) - Management assessed and maintained **effective internal control over financial reporting** as of December 31, 2024, based on the 2013 COSO framework[249](index=249&type=chunk) - RSM US LLP, the independent registered public accounting firm, issued an **unqualified opinion** on the effectiveness of the company's internal controls over financial reporting as of December 31, 2024[250](index=250&type=chunk)[252](index=252&type=chunk) [Item 9B. Other Information](index=78&type=section&id=Item%209B.%20Other%20Information) No directors or officers adopted, modified, or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the fourth quarter of 2024 - No Rule 10b5-1 or non-Rule 10b5-1 trading arrangements were adopted, modified, or terminated by directors or officers during Q4 2024[259](index=259&type=chunk) [Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=78&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) The company has no disclosures regarding foreign jurisdictions that prevent inspections Part III [Item 10. Directors, Executive Officers, and Corporate Governance](index=78&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%2C%20and%20Corporate%20Governance) This section incorporates information on directors, executive officers, and corporate governance from the 2025 proxy statement and Item 4A, including the company's policy on securities trades - Information on directors, executive officers, and corporate governance is incorporated by reference from the 2025 Annual Meeting of Shareholders proxy statement and Item 4A of this report[262](index=262&type=chunk) - The company has a Statement of Company Policy on Securities Trades by Directors, Officers and Employees to promote compliance with insider trading laws[262](index=262&type=chunk) [Item 11. Executive Compensation](index=78&type=section&id=Item%2011.%20Executive%20Compensation) This section incorporates by reference information on executive compensation and compensation committee interlocks and insider participation from the definitive proxy statement for the 2025 Annual Meeting of Shareholders - Information on executive compensation and compensation committee interlocks is incorporated by reference from the 2025 Annual Meeting of Shareholders proxy statement[263](index=263&type=chunk) [Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=78&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) This section incorporates by reference information on security ownership of certain beneficial owners and management, as well as equity compensation plan information, from the definitive proxy statement for the 2025 Annual Meeting of Shareholders - Information on principal shareholders, security ownership of management, and equity compensation plan information is incorporated by reference from the 2025 Annual Meeting of Shareholders proxy statement[263](index=263&type=chunk) [Item 13. Certain Relationships and Related Transactions, and Director Independence](index=78&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) This section incorporates by reference information on interests of management in certain transactions and director independence from the definitive proxy statement for the 2025 Annual Meeting of Shareholders - Information on management's interests in certain transactions and director independence is incorporated by reference from the 2025 Annual Meeting of Shareholders proxy statement[264](index=264&type=chunk) [Item 14. Principal Accountant Fees and Services](index=78&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) This section incorporates by reference information on principal accountant fees and services from the definitive proxy statement for the 2025 Annual Meeting of Shareholders - Information on principal accountant fees and services is incorporated by reference from the 2025 Annual Meeting of Shareholders proxy statement[264](index=264&type=chunk) Part IV [Item 15. Exhibits, Financial Statement Schedules](index=80&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists documents incorporated into the report, including consolidated financial statements from the 2024 Annual Report and various exhibits such as corporate documents, compensation plans, and certifications - Consolidated financial statements for the years ended December 31, 2024, 2023, and 2022, including Statements of Condition, Income, Comprehensive Income, Shareholders' Equity, and Cash Flows, are incorporated by reference from the 2024 Annual Report to Shareholders[266](index=266&type=chunk)[267](index=267&type=chunk) - The report includes various exhibits such as Articles of Incorporation, By-Laws, stock option plans, incentive compensation plans, the 2024 Annual Report, Statement of Company Policy on Securities Trades, List of Subsidiaries, Consent of Independent Registered Public Accounting Firm, Sarbanes-Oxley Act certifications (Sections 302 and 906), and the Compensation Clawback Policy[268](index=268&type=chunk)[271](index=271&type=chunk) [Item 16. Form 10-K Summary](index=82&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company did not provide a Form 10-K Summary in this report

Financial Performance - International Bancshares Corporation reported net income for the three months ended December 31, 2024, with specific figures detailed in the attached news release[5] - The financial results for the twelve months ended December 31, 2024, were also announced, highlighting overall performance trends[5] Company Classification - The company is not classified as an emerging growth company, indicating a stable operational status[4] Documentation - The news release is filed as Exhibit 99, providing comprehensive financial data and insights[10] - The report was signed by Dennis E. Nixon, President and CEO, affirming the authenticity of the financial disclosures[14]