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]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 000-09439 INTERNATIONAL BANCSHARES CORPORATION (Exact name of registrant as specified in its charter) incorporation or organization) Texas 74-21 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15 (d) of The Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): August 7, 2025 INTERNATIONAL BANCSHARES CORPORATION (Exact name of registrant as specified in its charter) (State or other jurisdiction (Commission File (IRS Employer of incorporation) Number) Identification No.) Texas 000-9439 74-2157138 1200 San Bernardo, Laredo, Texas 78040-1359 (Address of ...

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]

Fair Value Measurements - As of September 30, 2024, the fair value of residential mortgage-backed securities was $4,855,607,000, while states and political subdivisions amounted to $156,976,000[28]. - The total assets measured at fair value on a recurring basis as of December 31, 2023, were $4,827,758,000, with residential mortgage-backed securities at $4,660,099,000[29]. - The fair value of available-for-sale securities as of December 31, 2023, was $4,827,758,000, with equity securities valued at $5,417,000[29]. - The company’s fair value measurements for investment securities are based on independent pricing services, considering various observable data[38]. - The carrying amounts of cash and cash equivalents approximate fair value, reflecting the short-term nature of these instruments[37]. - The estimated fair value of fixed-rate long-term FHLB borrowings remained stable at $10,593,000 as of September 30, 2024, unchanged from December 31, 2023[44]. - The fair value of time deposits was estimated at $2,797,797,000 as of September 30, 2024, compared to $2,428,681,000 on December 31, 2023, indicating a fair value increase of approximately 15.2%[42]. - The fair value of fixed-rate performing loans was estimated at $1,112,046,000 as of September 30, 2024, compared to $1,073,892,000 on December 31, 2023, showing an increase of approximately 3.6%[40]. - The estimated fair value of equity securities with readily determinable fair values was $5,538,000 at September 30, 2024, compared to $5,417,000 at December 31, 2023[97]. Loan and Credit Losses - The company reported $55,479,000 in doubtful loans as of September 30, 2024, with a net provision during the period of $10,985,000[31]. - Other real estate owned was valued at $2,627,000 as of September 30, 2024, with a net provision of $371,000 during the same period[31]. - The company had approximately $99,835,000 in doubtful commercial collateral-dependent loans as of September 30, 2024[35]. - The allowance for credit losses (ACL) methodology incorporates qualitative factors such as trends in portfolio volume and economic conditions, which could affect future credit loss expenses[60]. - As of September 30, 2024, the total allowance for credit loan losses is $156,099, an increase from $148,609 at June 30, 2024, reflecting a rise in commercial loan losses[62]. - The credit loss expense for the nine months ended September 30, 2024, is $30,351, which is an increase of approximately $4.3 million compared to the same period in 2023[65]. - The charge-down on a loan secured by equipment in the oil and gas industry resulted in a loss of approximately $25.6 million, impacting the provision for credit loss expense[65]. - The total recorded investment for loans evaluated for impairment as of September 30, 2024, is $100,575, with an impairment of $11,385[67]. - The allowance for credit loan losses in the commercial category increased due to a charge-down on a specific loan classified as Watch List—Doubtful[65]. - The total allowance for credit loan losses at December 31, 2023, was $157,069, indicating a consistent upward trend in reserves[64]. - Recoveries credited to the allowance for the nine months ended September 30, 2024, amount to $3,134, showing efforts to mitigate losses[65]. - The total allowance for credit loan losses at June 30, 2023, was $140,503, highlighting a significant increase over the past year[63]. - Total non-accrual loans increased to $100,519 thousand as of September 30, 2024, compared to $47,170 thousand on December 31, 2023[70]. - The total past due loans reached $139,435 thousand as of September 30, 2024, with a significant increase in commercial real estate: farmland & commercial loans past due 90 days or greater attributed to specific relationships[75]. - The allowance for credit losses (ACL) at September 30, 2024, was deemed adequate by management to absorb probable losses from the loan portfolio[73]. - The company did not provide any modifications to borrowers experiencing financial difficulties for the nine months ended September 30, 2024[71]. - The increase in commercial real estate: farmland & commercial loans individually evaluated for impairment was due to one relationship secured by commercial buildings housing childcare centers[68]. - The total loans evaluated for impairment amounted to $8,011,900 thousand as of September 30, 2024[68]. Capital Adequacy - The company continues to meet all fully phased-in capital adequacy requirements as of September 30, 2024[110]. - Capital levels exceed all capital adequacy requirements under the Basel III capital rules as currently applicable[114]. - CET1 to risk-weighted assets ratio was 22.18% on September 30, 2024, compared to 21.72% on December 31, 2023[116]. - Tier 1 capital-to-average-total-asset (leverage) ratio was 18.33% on September 30, 2024, up from 17.46% on December 31, 2023[116]. - Risk-weighted Tier 1 capital ratio was 22.85% on September 30, 2024, compared to 22.39% on December 31, 2023[116]. - Risk-weighted total capital ratio increased to 24.10% on September 30, 2024, from 23.65% on December 31, 2023[116]. - Total of $108,868,000 of Capital and Common Securities outstanding qualified as Tier 1 capital as of September 30, 2024[116]. - Regulatory capital requirements are administered by the Federal Reserve and FDIC for the company and its Subsidiary Banks[119]. - Management believes that as of September 30, 2024, the company and its Subsidiary Banks meet all capital adequacy requirements[119]. Stock-Based Compensation - The stock-based compensation expense for the three months ended September 30, 2024, was $47,000, down from $76,000 in the same period of 2023, a decrease of approximately 38.2%[82]. - As of September 30, 2024, there were 227,029 options outstanding with a weighted average exercise price of $35.15[82]. - The total unrecognized stock-based compensation cost related to non-vested options was approximately $263,000, expected to be recognized over a weighted average period of 1.4 years[82]. - The total number of SARs issued under the 2022 SAR Plan as of September 30, 2024, was 459,639[83]. - The total number of stock appreciation rights (SARs) outstanding is 459,639, with a weighted average exercise price of $39.60[84]. - The fair value of the liability for payments due to SAR holders increased from approximately $1,464,000 at December 31, 2023, to $3,680,000 at September 30, 2024[85]. - The expense recorded in connection with all grants under the SAR Plan totaled $847,000 for the three months ended September 30, 2024, compared to $219,000 for the same period in 2023[85]. - The unrecognized liability related to non-vested SARs granted under the SAR Plan is approximately $8,813,000, to be recognized over a weighted average period of 7.8 years[85]. Investment Securities - The total investment securities at September 30, 2024, amount to $5,012,584, with residential mortgage-backed securities valued at $4,855,608[87]. - Proceeds from the sales and calls of available-for-sale debt securities for the three months ended September 30, 2024, were $2,030,000, with gross losses of $1[93]. - The gross unrealized losses on available-for-sale residential mortgage-backed securities at September 30, 2024, were $418,446[95]. - The amortized cost of available-for-sale debt investment securities pledged for fiduciary powers was $1,832,243,000, with an estimated fair value of $1,626,862,000 at September 30, 2024[92]. - Investments in low-income housing tax credit (LIHTC) projects totaled $186,916,000 at September 30, 2024, down from $200,245,000 at December 31, 2023[100]. - Unfunded commitments to LIHTC projects were $22,741,000 at September 30, 2024, compared to $34,126,000 at December 31, 2023[100]. Loan Growth and Performance - As of September 30, 2024, total loans increased to $8,587,025,000 from $8,058,961,000 on December 31, 2023, representing a growth of approximately 6.5%[48]. - The carrying amount of fixed-rate performing loans was $1,211,321,000 as of September 30, 2024, compared to $1,199,347,000 on December 31, 2023, indicating a slight increase of 1.0%[40]. - Time deposits rose to $2,801,761,000 as of September 30, 2024, up from $2,425,177,000 on December 31, 2023, reflecting an increase of approximately 15.5%[42]. - The carrying amount of commercial, financial, and agricultural loans increased to $4,922,980,000 as of September 30, 2024, from $4,802,622,000 on December 31, 2023, a growth of about 2.5%[48]. - The commercial loan portfolio's pass category reached $713,573,000, up from $453,452,000 in 2023, indicating a significant increase of 57.3%[77]. - The total commercial real estate loans stood at $762,741,000, a decrease from $1,008,961,000 in 2023, representing a decline of 24.4%[77]. - The total balance of commercial real estate loans in the farmland and commercial category was $688,375,000, down from $785,392,000 in 2023, a decrease of 12.4%[77]. - The total balance of residential first lien loans was $152,345,000, an increase from $109,558,000 in 2023, representing a growth of 39.0%[77]. - The total consumer loans remained at $32,306,000, up from $12,701,000 in 2023, reflecting a growth of 154.5%[77]. - The current-period gross write-offs for commercial loans were $3,874,000, compared to $2,476,000 in 2023, marking an increase of 56.5%[77]. - The current-period gross write-offs for consumer loans were $19,000, a decrease from $92,000 in 2023, indicating a decline of 79.3%[77]. - Total loans as of December 31, 2023, amounted to $3,364,226, an increase from $1,928,023 in 2022, representing a growth of approximately 74.5%[79]. - The total commercial loans reached $811,918 as of December 31, 2023, compared to $305,621 in 2022, indicating a significant increase of about 165.5%[79]. - The current-period gross write-offs for commercial real estate were $7,053, up from $2,187 in 2022, reflecting an increase of approximately 222.5%[79]. - The total commercial real estate loans for farmland and commercial reached $1,040,592, compared to $631,029 in 2022, marking an increase of about 65%[79]. Stock Repurchase and Dividends - Cash dividends paid were $0.66 per share on February 28 and August 28, 2024, compared to $0.63 per share on the same dates in 2023[106]. - The company has authorized a stock repurchase program of up to $150 million for the 12-month period commencing on March 15, 2024[107]. - As of November 4, 2024, a total of 13,711,689 shares had been repurchased at a cost of $415,258,000[107]. Market Risk - No material changes in market risk exposures were reported during the nine months ended September 30, 2024[175].