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]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 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: 0-09439 INTERNATIONAL BANCSHARES CORPORATION (Exact Name of Registrant as Specified in its Charter) Texas (State or other Jurisdi ...

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].

Financial Performance - International Bancshares Corporation reported net income for the three and nine months ended September 30, 2024, with specific figures detailed in the attached news release[3]. - The financial results and operational conditions are expected to be further elaborated in the attached news release[3]. Regulatory Compliance - The news release is intended to comply with Regulation Fair Disclosure, ensuring transparency in financial reporting[4]. - The report was filed on November 7, 2024, indicating timely disclosure of financial performance[1]. Company Information - The company is listed on The Nasdaq Stock Market under the trading symbol IBOC[2]. - Dennis E. Nixon serves as the President and Chief Executive Officer of International Bancshares Corporation, signing the report[8]. - The report does not indicate any emerging growth company status for International Bancshares Corporation[2]. - The company has not elected to use the extended transition period for new financial accounting standards[2]. Financial Documentation - The financial statements and exhibits related to the earnings announcement are included in the report[5]. - The report includes an interactive data file embedded within the Inline XBRL document[7].

Financial Position - As of June 30, 2024, the fair value of residential mortgage-backed securities was $4,712,423,000, while available-for-sale securities totaled $4,874,364,000[27]. - The fair value of doubtful loans on the Watch List was $33,465,000 as of June 30, 2024, with a net provision during the period of $5,471,000[30]. - For the period ended December 31, 2023, the fair value of doubtful loans on the Watch List was $46,124,000, with a net provision during the period of $10,221,000[31]. - As of December 31, 2023, the fair value of residential mortgage-backed securities was $4,660,099,000, and total available-for-sale securities amounted to $4,827,758,000[28]. - The fair value of other real estate owned was recorded at $2,920,000 as of June 30, 2024, with a net provision of $16,000 during the period[30]. - The carrying amount of fixed-rate performing loans was $1,260,853,000, with an estimated fair value of $1,143,631,000, reflecting a decrease in fair value from $1,073,892,000 as of December 31, 2023[38]. - Total loans increased to $8,267,827,000 as of June 30, 2024, compared to $8,058,961,000 as of December 31, 2023, representing a growth of approximately 2.6%[43]. - The carrying amount of time deposits rose to $2,644,913,000 as of June 30, 2024, from $2,425,177,000 as of December 31, 2023, indicating an increase of about 9.0%[38]. - The carrying amount of fixed-rate long-term FHLB borrowings was $10,644,000 as of June 30, 2024, remaining stable compared to $10,745,000 as of December 31, 2023[39]. - The total portfolio of loans as of June 30, 2024, was $8,267,827,000[66]. Credit Losses and Provisions - The company recorded $2,228,000 in charges to the allowance for credit losses (ACL) related to loans transferred to other real estate owned for the three months ended June 30, 2024[34]. - The allowance for credit losses (ACL) methodology is based on a loss-rate approach that measures lifetime losses on loan pools with similar risk characteristics[44]. - As of June 30, 2024, the total allowance for credit loan losses is $148,609,000, an increase from $133,557,000 as of March 31, 2023, representing an increase of approximately 11.3%[55]. - The credit loss expense for the six months ended June 30, 2024, is $21,749,000, compared to $8,816,000 for the same period in 2023, indicating a significant increase of approximately 146.5%[58]. - Losses charged to the allowance for the six months ended June 30, 2024, total $32,084,000, compared to $2,982,000 for the same period in 2023, reflecting a substantial increase of approximately 975.5%[59]. - The net (losses) recoveries charged to the allowance for the six months ended June 30, 2024, is $(30,209,000), compared to $(1,870,000) for the same period in 2023, indicating a worsening trend[58]. - The total non-accrual loans increased to $102,139,000 as of June 30, 2024, compared to $47,170,000 on December 31, 2023[62]. - The total past due loans reached $103,469,000 as of June 30, 2024, with a total portfolio of $8,164,358,000[65]. - The allowance for credit losses (ACL) was deemed adequate to absorb probable losses from loans in the portfolio as of June 30, 2024[64]. Loan Portfolio Composition - The company’s loan portfolio includes commercial, financial, agricultural, real estate, consumer, and foreign loans, with commercial loans totaling $4,769,703,000 as of June 30, 2024[43]. - The balance of loans evaluated for impairment as of June 30, 2024, is $8,165,806,000, with a recorded investment of $102,021,000 for loans evaluated individually[60]. - The total balance at June 30, 2024, for commercial real estate: other construction & land development is $54,840,000, while the balance for commercial real estate: farmland & commercial is $44,888,000[55]. - Commercial real estate: farmland & commercial loans individually evaluated for impairment increased significantly due to one relationship secured by childcare centers[61]. - The aging of past due loans showed that 30-59 days past due loans totaled $57,623,000 as of June 30, 2024[65]. - The increase in past due loans in commercial real estate: other construction & land development was attributed to three loans secured by real estate[66]. Capital and Equity - The Common Equity Tier 1 (CET1) to risk-weighted assets ratio was 22.32% on June 30, 2024, up from 21.72% on December 31, 2023[97]. - The Tier 1 capital-to-average-total-asset (leverage) ratio was 18.08% as of June 30, 2024, compared to 17.46% at December 31, 2023[97]. - The risk-weighted total capital ratio was 24.26% on June 30, 2024, compared to 23.65% on December 31, 2023[97]. - The total of $108,868,000 of Capital and Common Securities outstanding qualified as Tier 1 capital as of June 30, 2024[97]. - As of June 30, 2024, the company and its subsidiary banks meet all capital adequacy requirements[99]. Stock-Based Compensation - Stock-based compensation expense for the six months ended June 30, 2024, was $122,000, down from $179,000 for the same period in 2023, a decrease of 31.8%[70]. - As of June 30, 2024, there were 249,526 options outstanding with a weighted average exercise price of $34.57[70]. - The aggregate intrinsic value of options outstanding at June 30, 2024, was $5,650 thousand[70]. - The total unrecognized stock-based compensation cost related to non-vested options was approximately $310,000, expected to be recognized over 1.4 years[70]. - As of June 30, 2024, a total of 461,750 stock appreciation rights (SARs) were outstanding, with a weighted average exercise price of $39.60 and an aggregate intrinsic value of $8,130,000[71]. - The fair value of the liability for payments due to SAR holders increased from approximately $1,464,000 at December 31, 2023, to approximately $2,888,000 at June 30, 2024[72]. - The expense recorded in connection with all grants under the SAR Plan totaled $344,000 for the three months ended June 30, 2024, compared to $264,000 for the same period in 2023[72]. Investment Securities - The total investment securities at June 30, 2024, amounted to $4,869,027,000, with residential mortgage-backed securities contributing $4,712,423,000[74]. - At June 30, 2024, the amortized cost and estimated fair value of available-for-sale debt investment securities pledged was $2,001,561,000 and $1,734,388,000, respectively[79]. - Proceeds from the sales and calls of available-for-sale debt securities for the six months ended June 30, 2024, were $1,720,000, with no gross gains or losses realized[79]. - The balance in equity securities with readily determinable fair values was $5,337,000 at June 30, 2024, down from $5,417,000 at December 31, 2023[80]. - Net losses recognized during the three months ended June 30, 2024, on equity securities amounted to $23,000[80]. - No debt securities in an unrealized loss position were attributed to credit-related reasons as of June 30, 2024[73]. - Investments in Low-Income Housing Tax Credit (LIHTC) projects totaled $193,135,000 as of June 30, 2024, down from $200,245,000 at December 31, 2023[81]. - Unfunded commitments to LIHTC projects were $21,251,000 at June 30, 2024, compared to $34,126,000 at December 31, 2023[81].

Fair Value and Securities - As of March 31, 2024, the fair value of residential mortgage-backed securities was $4,612,306,000, while available-for-sale securities totaled $4,774,990,000[36]. - The total available-for-sale securities as of December 31, 2023, amounted to $4,827,758,000[36]. - As of December 31, 2023, the fair value of residential mortgage-backed securities was $4,660,099,000[36]. - The amortized cost of available-for-sale debt securities was $5,306,234,000 with an estimated fair value of $4,769,630,000 as of March 31, 2024[89]. - Proceeds from the sales and calls of available-for-sale debt securities were $1,720,000 for the three months ended March 31, 2024, with no gross gains or losses realized[95]. Loans and Credit Losses - The fair value of doubtful loans classified as Watch List was $9,137,000 as of March 31, 2024, with a net provision during the period of $(6,471,000)[38]. - For the year ended December 31, 2023, the fair value of doubtful loans was $46,124,000, with a net provision of $10,221,000[38]. - The total doubtful commercial collateral dependent loans as of March 31, 2024, were $45,866,000[38]. - The company recorded $0 in charges to the allowance for credit losses (ACL) for loans transferred to other real estate owned for the three months ended March 31, 2024[41]. - As of March 31, 2024, the total allowance for credit loan losses was $142,798,000, a decrease from $157,069,000 at December 31, 2023[71]. - The credit loss expense for the three months ended March 31, 2024, was $12,978,000, compared to $8,587,000 for the same period in 2023, reflecting an increase of approximately 51.5%[73]. - The balance of loans individually evaluated for impairment decreased to $46,232,000 as of March 31, 2024, from $47,061,000 at December 31, 2023[75]. - The total non-accrual loans amounted to $46,322,000 as of March 31, 2024, slightly down from $47,170,000 at December 31, 2023[76]. - The allowance for credit loan losses for commercial loans collectively evaluated for impairment was $136,978,000 as of March 31, 2024, compared to $144,778,000 at December 31, 2023[75]. - The qualitative loss factors in certain pools of the portfolio were adjusted to reflect a slight improvement in economic uncertainty, resulting in a decrease in the required allowance for credit loan losses[73]. Loan Portfolio and Performance - Total loans increased to $8,112,481,000 as of March 31, 2024, compared to $8,058,961,000 at December 31, 2023, reflecting a growth of approximately 0.66%[58]. - The total portfolio value increased from $8,058,961,000 on December 31, 2023, to $8,112,481,000 on March 31, 2024, reflecting a growth of about 0.7%[81]. - As of March 31, 2024, total past due loans amounted to $69,545,000, representing an increase from $63,805,000 on December 31, 2023, indicating a rise of approximately 9.3%[81]. - The overall trend in past due loans suggests a mixed performance across different loan categories, with some experiencing increases while others show improvements in delinquency rates[81]. - The Watch List—Doubtful Commercial loans decreased primarily due to charge-downs, while Watch List—Doubtful Commercial Real Estate: Multifamily loans increased due to a loan downgrade[83]. Capital and Dividends - As of March 31, 2024, the total outstanding Capital and Common Securities qualified as Tier 1 capital amounted to $108,868,000[101]. - The Common Equity Tier 1 (CET1) to risk-weighted assets ratio was 22.00% on March 31, 2024, compared to 21.72% on December 31, 2023[114]. - The Tier 1 capital-to-average-total-assets (leverage) ratio was 17.85% as of March 31, 2024, up from 17.46% on December 31, 2023[114]. - Cash dividends paid were $0.66 per share on February 28, 2024, compared to $0.63 per share on February 28, 2023[103]. - The company authorized a stock repurchase program of up to $150 million for the 12-month period starting March 15, 2024[104]. Stock-Based Compensation - Stock-based compensation expense for the three months ended March 31, 2024, was $74,000, compared to $102,000 for the same period in 2023[85]. - The total unrecognized stock-based compensation cost related to non-vested options as of March 31, 2024, was approximately $357,000, to be recognized over a weighted average period of 1.5 years[85]. - The expense recorded in connection with all grants under the SAR Plan totaled $1,080,000 for the three months ended March 31, 2024, up from $166,000 for the same period in 2023[87]. Legal Proceedings - The company is involved in various legal proceedings, but any material loss is considered remote[106].