Here are a few analogies to describe International Bancshares (IBOC):

• It's like a regional Wells Fargo, offering comprehensive banking services across Texas and Oklahoma.
• Think of it as Bank of America, but concentrated in Texas and Oklahoma, with a significant emphasis on international banking services.

• Deposits: Accepts checking and saving deposits.
• Loans: Provides various types of loans including commercial, real estate, personal, home improvement, automobile, and other installment and term loans.
• International Banking Services: Offers services such as letters of credit and foreign exchange.
• Credit Cards: Issues credit cards.
• Safety Deposit Boxes: Provides secure storage for valuables.
• Securities Products: Offers investment products through third-party providers.
• General Banking Services: Provides customary banking services such as collection, notary public, and escrow.

International Bancshares Corporation (IBOC) is a financial holding company that provides commercial and retail banking services. As such, it does not have "major customers" in the traditional sense of a few large companies purchasing its products or services. Instead, its customer base consists of a broad range of individuals and businesses that utilize its banking and lending services.

The company primarily serves the following categories of customers:

1. Individuals/Consumers: This category includes customers who use retail banking services such as checking and savings deposits, personal loans, home improvement loans, automobile loans, credit cards, and other customary banking services.
2. Commercial Businesses: This category encompasses various businesses and companies that utilize commercial and industrial loans, commercial checking and savings accounts, letters of credit, and foreign exchange services.
3. Real Estate Developers and Investors: The company provides real estate loans, catering to customers involved in property development, acquisition, and investment.

Dennis E. Nixon, Chairman, President and Chief Executive Officer

Dennis E. Nixon has served as International Bancshares Corporation's (IBOC) Chairman and President since 1979, and as CEO of its lead bank, International Bank of Commerce (IBC), since 1975. He is widely recognized as a leading banking authority and executive, having been instrumental in IBOC's unprecedented growth and its ranking as one of the largest minority-founded bank organizations in the United States and one of the largest independent banks in Texas and Oklahoma. Nixon's knowledge in all areas of banking was pivotal in developing IBC's extensive acquisition and expansion efforts. He was also instrumental in the passage of the North American Free Trade Agreement (NAFTA) and has actively contributed to U.S.-Mexico economic development. He is a graduate of the University of Texas. Nixon previously served as President of the Laredo Chamber of Commerce and the Laredo Development Foundation.

Judith Wawroski, Executive Vice President, Treasurer and Chief Financial Officer

Judith Wawroski serves as the Executive Vice President and Chief Accounting Officer of Corporate Financial Accounting at IBC Bank and is the Treasurer and Chief Accounting Officer for International Bancshares Corporation. She joined IBC Bank in 1992 on a part-time basis while attending The University of Texas at Austin, where she obtained a bachelor's degree in accounting. After graduating, she became a full-time staff accountant in 1996 and advanced through the ranks to her current executive roles, where she helps navigate regulatory and financial reporting requirements.

Gerardo (Gerald) Schwebel, Executive Vice President of International Division

Gerardo (Gerald) Schwebel is a key resource to IBC Bank's international customers, offering special expertise in international trade and finance, industrial/economic development, and transportation. He frequently represents IBC Bank and its customers with top government and business leaders in the United States, Mexico, and Canada. Schwebel was previously a member of the board of the National Bankers Association, Logistics & Manufacturing Association, and Asociación de Empresarios Mexicanos, and served as president and Chairman of the Board of the Laredo Development Foundation.

Imelda Navarro, Executive Vice President and President of Retail Banking

Imelda Navarro is an Executive Vice President and the President of Retail Banking for IBC Bank. She has been a director of International Bancshares Corporation since 2002 and a senior executive vice president and director of IBC since 2002. She was named President of IBC in September 2015.

1. Interest Rate Risk: International Bancshares Corporation faces significant exposure to interest rate risk, primarily impacting the cost of funding its operations. The bank's balance sheet structure, with a substantial portion of deposits, has led to a sharp increase in interest expense, which directly contributed to a decline in net interest income in Q1 2025.
2. Credit Quality Deterioration, Particularly from Commercial Real Estate (CRE) Exposure: While International Bancshares has historically maintained high asset quality, the broader commercial real estate market poses a systemic risk, especially for regional banks. The company's total net loan portfolio has grown to approximately $9.2 billion by September 30, 2025, increasing its portfolio at risk. This threat is compounded by the macro-environment and the company's lower-than-peer allowance for losses.
3. Geographic Concentration and Volatile U.S.-Mexico Trade Environment: International Bancshares' operating efficiency is closely linked to its geographic concentration in regions like Texas, making it vulnerable to regional trade shifts. The company faces threats from the volatile U.S.-Mexico trade environment, which, along with geopolitical and regulatory changes, can significantly alter the cost of doing business.

The clear emerging threat to International Bancshares is the rise of digital-first banks (neobanks) and specialized financial technology (fintech) companies. These entities offer banking services, including deposits, loans, and payments, primarily or exclusively through online and mobile platforms. This challenges International Bancshares' traditional branch-heavy model by offering potentially lower fees, higher interest rates, and superior digital user experiences, which can attract customers away from established physical banks. As consumer preferences increasingly shift towards digital channels for banking needs, the extensive network of 170 branches and 263 ATMs operated by International Bancshares in Texas and Oklahoma could become a costly competitive disadvantage rather than a differentiating asset, threatening both deposit acquisition and loan origination volumes.

International Bancshares (symbol: IBOC) operates in the commercial and retail banking sectors across Texas and Oklahoma. The addressable markets for its main products and services within these regions are sized as follows:

Texas

• The total assets of Texas state-chartered banks were approximately $452.3 billion as of December 31, 2024.
• Deposits held by banks in the Dallas-Fort Worth region, a significant market within Texas, totaled $714.7 billion as of June 30, 2023.
• Texas community banks, which are comparable to International Bancshares in scope, accounted for approximately 47% of all loans, 33% of total assets, and 34% of deposits held by banks in the state as of the first quarter of 2024. These community banks saw their loans grow by 7.1%, assets by 4.6%, and deposits by 5.5% from the second quarter of 2023 through the first quarter of 2024.
• Commercial real estate (CRE) loans constituted 55% of all Texas community bank loans in the first quarter of 2024.

Oklahoma

• The commercial banking industry market size in Oklahoma is projected to be $13.4 billion in 2026.
• Total banking assets for all institutions in Oklahoma were approximately $201.489 billion as of the third quarter of 2025.
• Total deposits in all Oklahoma banks amounted to $137.784 billion as of June 30, 2024.
• The small business lending market in Oklahoma saw reporting banks issue $3.5 billion in loans of $1 million or less to businesses in 2021. Community banks specifically provided $4 billion in Small Business Administration (SBA) loans to Oklahoma small businesses between 2010 and 2025.

Expected Drivers of Future Revenue Growth for International Bancshares (IBOC)

• Growth in Loan and Investment Portfolios: International Bancshares aims to expand its loan and investment portfolios, which contributed to higher interest income in 2025. The company's loan book saw an increase from $9.1 billion in Q1 2025 to $9.4 billion in Q3 2025, indicating a continued focus on this area.
• Effective Net Interest Margin Management: The company's net interest income has been positively influenced by the interest rate environment, including increased loan interest income and interest earned on funds held at the Federal Reserve Bank. Moving forward, strategic management of both interest income and interest expense, particularly in response to competitive deposit rates, will be crucial for maintaining and growing net interest margin.
• Cost Control and Efficiency Initiatives, including AI: Management has emphasized a sustained focus on cost control measures to streamline operations and enhance efficiency. The implementation of new AI initiatives is also expected to drive efficiency, thereby contributing to overall profitability and revenue growth.
• Deposit Growth and Retention: Efforts to attract and retain deposits are a key driver. International Bancshares has actively adjusted deposit rates to remain competitive and support the growth and retention of its deposit base, which is fundamental for funding lending and investment activities.

Share Repurchases

• On March 12, 2025, International Bancshares Corporation's Board of Directors authorized a stock repurchase program for up to $150 million of its common stock.
• This repurchase program is valid from March 15, 2025, through March 15, 2026.

Share Issuance

• International Bancshares has shown no significant share issuance over the last 3-5 years, with shares outstanding exhibiting a 5-year compound annual growth rate (CAGR) of -0.4%.
• The company reported 62 million shares outstanding in the third quarter of 2025.

Capital Expenditures

• International Bancshares invested $3.9 million in capital expenditures in Q4 2025.
• These capital expenditures were primarily focused on funding long-term assets and infrastructure.
• The company's CEO, in conjunction with the full-year 2025 earnings report, highlighted a focus on new AI initiatives, which may indicate future capital allocation towards technology.