Financial Performance - International Bancshares Corporation reported net income for the three months ended March 31, 2024, with specific figures detailed in the attached news release[5]. - The financial results are intended to be included under "Item 7.01 – Regulation Fair Disclosure" for transparency purposes[6]. - The news release is incorporated by reference as Exhibit 99, providing detailed financial performance metrics[10]. Compliance and Reporting - The report was filed on May 2, 2024, indicating timely compliance with SEC regulations[2]. - The company is listed on The Nasdaq Stock Market under the trading symbol IBOC[4]. - The report includes a cover page interactive data file, enhancing the accessibility of financial data[10]. Company Status and Leadership - The company has not indicated any changes in its status as an emerging growth company[4]. - Dennis E. Nixon serves as the President and Chief Executive Officer, signing off on the report[14]. Business Developments - The report does not specify any new product developments or market expansion strategies[5]. - No mergers or acquisitions were mentioned in the current report[5].

Workforce and Diversity - As of December 31, 2023, the company employed approximately 2,062 full-time and 230 part-time employees, with 68% of the management team having over 15 years of tenure[21]. - Approximately 74% of the workforce self-identified as Latino or Hispanic, and over 66% self-identified as women, reflecting the company's commitment to diversity and inclusion[27]. Banking Operations and Services - The company operates 166 facilities and 256 ATMs across 75 communities in Texas and Oklahoma, focusing on both commercial and retail banking services[18]. - The company has a diverse range of banking services, including international trade facilitation, mortgage lending, and online banking products[19]. - The company has increased its market share in its primary market area through strategic acquisitions, competing with other banks and non-bank entities[30]. Financial Performance and Capital Management - Deposits from customers domiciled in Mexico accounted for approximately 29% of total deposits for the year ended December 31, 2023, indicating a stable deposit base[32]. - As of December 31, 2023, approximately $1,229,500,000 is available for dividend payments to the holding company from Subsidiary Banks, assuming they remain classified as "well capitalized"[69]. - The holding company's leverage ratio was reported at 17.46% as of December 31, 2023, significantly exceeding the minimum requirement of 3% for well-capitalized institutions[80]. - All Subsidiary Banks maintained a leverage ratio in excess of 5% as of December 31, 2023, complying with FDIC capital requirements[81]. - The company is classified as "well capitalized" under applicable regulations, with total risk-based capital ratios exceeding the required benchmarks[82]. Regulatory Environment - The company is subject to extensive regulation by federal and state laws, which could materially affect its business and financial condition[36]. - The company is required to undergo financial stress tests if it has consolidated assets exceeding $10 billion, which currently does not apply to its Subsidiary Banks[41]. - The company must obtain FRB approval prior to merging or consolidating with other bank holding companies or acquiring significant ownership in banks[43]. - The Dodd-Frank Act has introduced significant regulatory changes that may impact the company's capital requirements and operational costs in the future[40]. - The company is required to report beneficial ownership information under the Corporate Transparency Act, effective January 1, 2024[46]. Cybersecurity and Risk Management - The company has implemented robust, multi-layer security procedures to mitigate cyber risks and protect sensitive customer data[193]. - The Information Systems Security Program (ISSP) includes layers of administrative and technical safeguards to protect sensitive information[194]. - The company conducts annual self-assessments using the Cyber Risk Institute to evaluate its cybersecurity strategy and compliance[200]. - Multi-factor authentication (MFA) is required for all retail and commercial customers to enhance online banking security[200]. - The risk of a data breach or cyber-attack is pervasive and severe, despite robust defensive measures[211]. Economic and Market Conditions - The company may face adverse impacts from declining crude oil prices, which could affect the economies of primary markets like Texas and Oklahoma[181]. - Economic conditions in primary market areas, including Texas and Oklahoma, significantly influence the company's performance, with potential increases in loan delinquencies if conditions worsen[182]. - The company faces substantial competition from various financial institutions, including fintechs, which may affect its revenue streams and deposit base[162]. Compliance and Legal Risks - The CFPB's authority to enforce consumer protection laws may increase compliance costs for the company and its Subsidiary Banks[121]. - The Dodd-Frank Act mandates that financial institutions with assets of $1 billion or more disclose their incentive-based compensation structures to regulators[149]. - The Dodd-Frank Act expands limitations on affiliate transactions, affecting the company's financial operations[135]. - Negative publicity and diminished depositor confidence due to recent bank failures could adversely affect the company's liquidity and results of operations[188]. Future Outlook and Strategic Considerations - Future acquisitions and branch expansions are subject to regulatory approvals, which depend on examination results and CRA ratings[166]. - The loss of the CEO, who has been pivotal in the company's growth since 1979, could materially affect the company's business and prospects[167]. - Recent volatility in the banking industry may lead to new regulations that could impose additional costs and operational changes for the company[189].

Financial Performance - International Bancshares Corporation reported a 37.2% increase in net income for 2023, totaling $411.8 million compared to $300.2 million in 2022[2] - Diluted earnings per share increased by 38.5% to $6.62 in 2023 from $4.78 in 2022[2] - Non-interest income for 2023 was $169.9 million, a decrease from $187.1 million in 2022[4] Income and Assets - Net interest income rose to $663.5 million in 2023, up from $487.6 million in 2022, driven by an increase in the investment portfolio and loan interest income[4] - Total assets decreased to $15.1 billion at December 31, 2023, down from $15.5 billion at the end of 2022[7] - Total net loans increased to $7.9 billion at December 31, 2023, compared to $7.3 billion at the end of 2022[7] - Deposits decreased to $11.8 billion at December 31, 2023, down from $12.7 billion at the end of 2022[7] Strategic Focus - The company emphasized its focus on managing interest income and expense in the current economic environment[3] - The return on assets (ROA) positions International Bancshares Corporation among the top publicly traded bank holding companies in the nation[5] - The company expressed confidence in its strong capital position and management strategies for continued success in 2024 and beyond[6]

Fair Value and Securities - As of September 30, 2023, the fair value of residential mortgage-backed securities is $4,545,600,000, while states and political subdivisions amount to $146,338,000[38]. - The total fair value of available-for-sale debt securities as of September 30, 2023, is $4,697,096,000, with equity securities valued at $5,158,000[38]. - The fair value of available-for-sale securities as of December 31, 2022, totaled $4,423,154,000, with residential mortgage-backed securities at $4,209,212,000[38]. - The fair value hierarchy includes Level 1 inputs for unadjusted quoted prices in active markets and Level 2 inputs for observable inputs other than Level 1[36]. - The company applies fair value measurements in accordance with ASC Topic 820, which establishes a framework for measuring fair value[35]. - As of September 30, 2023, the total investment securities amounted to $4,691,938,000, with a gross unrealized loss of $696,319,000[94]. - Residential mortgage-backed securities had an amortized cost of $5,227,139,000 and an estimated fair value of $4,545,600,000, reflecting a gross unrealized loss of $681,539,000[94]. - The company reported equity securities with readily determinable fair values of $5,158,000 as of September 30, 2023, down from $5,358,000 at December 31, 2022[102]. - No debt securities in an unrealized loss position were attributed to credit-related reasons, resulting in no allowances recorded for the period[93]. - The total investment in loans individually evaluated for impairment as of September 30, 2023, was $42,177,000, with an allowance of $7,651,000[76]. Loans and Credit Quality - The company reported $29,763,000 in watch-list doubtful loans as of September 30, 2023, with a net provision during the period of $5,581,000[39]. - Other real estate owned as of September 30, 2023, is valued at $546,000, with a net provision during the period of $2,510,000[39]. - The company had approximately $51,326,000 of doubtful commercial collateral-dependent loans as of December 31, 2022[39]. - As of September 30, 2023, total loans increased to $7,896,899,000 from $7,430,603,000 as of December 31, 2022, representing a growth of approximately 6.3%[58]. - The carrying amount of fixed-rate performing loans was $1,166,647,000 as of September 30, 2023, down from $1,203,381,000 as of December 31, 2022, indicating a decrease of about 3.0%[48]. - The estimated fair value of fixed-rate performing loans decreased to $1,014,777,000 as of September 30, 2023, from $1,100,848,000 as of December 31, 2022, reflecting a decline of approximately 7.8%[48]. - The total balance of credit loan losses increased to $149,006 thousand as of September 30, 2023, up from $140,503 thousand at June 30, 2023, reflecting a growth of approximately 6%[72]. - Credit loss expense for the three months ended September 30, 2023, was $10,476 thousand, compared to $8,525 thousand for the same period in 2022, representing an increase of about 23%[74]. - The balance of credit loan losses at September 30, 2023, included $33,853 thousand in domestic commercial loans, which is an increase from $27,645 thousand at June 30, 2023[72]. - The total balance of credit loan losses for foreign loans was $1,216 thousand as of September 30, 2023, which is an increase from $1,180 thousand at June 30, 2023[72]. - As of September 30, 2023, the total allowance for credit losses (ACL) increased to $141,355,000 from $123,527,000 as of December 31, 2022, reflecting a rise in credit loss expense due to economic uncertainty[76][77]. - The company has categorized loans into various segments, including commercial, real estate, and consumer loans, to better assess risk and manage credit quality[58]. - The company’s internal Watch List report categorizes loans into six categories, including Pass, Economic Monitoring, and Watch List—Doubtful, to monitor potential credit weaknesses[66]. - The total loan portfolio as of September 30, 2023, was $7,896,899,000, up from $7,430,603,000 at the end of 2022, indicating growth in the overall lending activity[86]. - Total loans evaluated for impairment as of September 30, 2023, amounted to $7,854,722,000, with a total allowance of $141,355,000[76]. - Non-accrual loans decreased to $41,997,000 as of September 30, 2023, down from $51,648,000 at December 31, 2022[77]. - The total amount of commercial real estate loans past due 90 days or greater was $19,493,000 as of September 30, 2023, compared to $1,130,000 on December 31, 2022[84]. - The total amount of residential first lien loans past due was $6,298,000 as of September 30, 2023, compared to $7,280,000 at the end of 2022[86]. - The total amount of foreign loans past due was $1,287,000 as of September 30, 2023, an increase from $1,028,000 on December 31, 2022[86]. - The total amount of consumer loans past due was $493,000 as of September 30, 2023, reflecting a slight increase from $302,000 at the end of 2022[86]. - The total amount of loans on the watch list classified as "Substandard" was $1,430,000 for 2023, compared to $1,861,000 in 2022[86]. Capital and Dividends - As of September 30, 2023, the company had a CET1 to risk-weighted assets ratio of 20.97%, up from 20.21% on December 31, 2022[120]. - The company reported a Tier 1 capital-to-average-total-assets (leverage) ratio of 16.75% as of September 30, 2023, compared to 14.59% on December 31, 2022[120]. - The total of $108,868,000 of Capital and Common Securities outstanding qualified as Tier 1 capital as of September 30, 2023[120]. - The company paid cash dividends of $0.63 per share on February 28 and August 25, 2023, compared to $0.60 per share in the same periods of 2022[109]. - A total of 13,694,792 shares had been repurchased under all programs at a cost of $414,306,000 as of October 30, 2023[110]. - The company has extended its stock repurchase program to purchase up to $124 million of common stock during the 12-month period commencing on March 15, 2023[110]. - The company continues to meet all fully phased-in capital adequacy requirements as of September 30, 2023[114]. Stock-Based Compensation - Stock-based compensation expense for the three months ended September 30, 2023, was $76,000, compared to $118,000 for the same period in 2022[89]. - As of September 30, 2023, there were 432,223 stock options outstanding with a weighted average exercise price of $29.71[89]. - The total unrecognized stock-based compensation cost related to non-vested options was approximately $507,000, expected to be recognized over a weighted average period of 1.5 years[89]. - The fair value of the liability for payments due to stock appreciation rights holders was approximately $976,000 as of September 30, 2023[91]. - Stock appreciation rights outstanding at September 30, 2023, totaled 473,250 with a weighted average exercise price of $39.35[91]. - The expense recorded in connection with all grants under the SAR Plan was $219,000 for the three months ended September 30, 2023[91]. Legal and Regulatory Matters - The company is involved in various legal proceedings, but any material loss is considered remote[111]. - The interest rate index on the Capital and Common Securities transitioned to the Three-Month CME Term Secured Overnight Financing Rate ("SOFR") with a 26 basis point spread adjustment as of July 1, 2023[108]. - The company actively monitors regulatory capital ratios to ensure that its Subsidiary Banks are well-capitalized under the regulatory framework[120].

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, 2023 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 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 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 74-2 ...

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, 2022 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 ...

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, 2022 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 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 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 74-2 ...

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, 2021 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 (956) 722-7611 (Registrant's telephone number, including area code) | Title of each ...