Reading Time: 2 minutes

LAREDO, Texas–(BUSINESS WIRE)–lt;a href=”https://twitter.com/hashtag/Bancshares?src=hash” target=”_blank”gt;#Bancshareslt;/agt;–International Bancshares Corporation (NASDAQ:IBOC), one of the largest
independent bank holding companies in Texas, today reported net income
for the three months ended March 31, 2019 of $51.9 million or $0.79
diluted earnings per common share ($0.79 per share basic),
compared to $53.4 million or $0.80 diluted earnings per
common share ($0.81 per share basic) for the same period in 2018,
representing a decrease of 1.3 percent in diluted earnings per
share and a 2.8 percent decrease in net income.

Net income for the three months ended March 31, 2019 was positively
affected by an increase in net interest income due to a higher volume of
loans and an increase in the overall yield of the loan portfolio, which
was offset by an increase in interest expense primarily due to an
increase in the cost of borrowings expense, and an increase in the
interest paid on savings and time deposit accounts. Net income for 2019
was negatively impacted by an increase in the provision for probable
loan losses due to a specific reserve of $7.5 million, net of tax on a
relationship secured by real property on which car dealerships are
operated.

“I am pleased with our continued earnings success for the first quarter
of 2019 especially considering the special reserve charge,” said IBC
Bank Chairman and CEO Dennis E. Nixon. “The earnings success we saw in
2018 and continue to see for the first three months of 2019 can be
attributed to our continued focus on building and improving the
performance of our core bank operations and continued cost control,
which have been complemented by the actions taken to reform the tax laws
at the end of 2017. We are confident in the strength of our balance
sheet and our strong capital position enhanced by our proven track
record for over 50 years. We continue to exceed most of our peers based
on Bank Holding Company Performance Reports compiled by the Federal
Financial Institutions Examination Council.”

Total assets at March 31, 2019 were $12.0 billion compared
to $11.9 billion at December 31, 2018. Total net loans were $6.6
billion at March 31, 2019 compared to $6.5 billion at
December 31, 2018. Deposits were $8.9 billion at March 31,
2019 compared to $8.7 billion at December 31, 2018.

IBC is a multi-bank financial holding company headquartered in Laredo,
Texas, with 189 facilities and 286 ATMs serving 89 communities in Texas
and Oklahoma.

“Safe Harbor” statement under the Private Securities Litigation Reform
Act of 1995: The statements contained in this release which are not
historical facts contain forward looking information with respect to
plans, projections or future performance of IBC and its subsidiaries,
the occurrence of which involve certain risks and uncertainties detailed
in IBC’s filings with the Securities and Exchange Commission.

Copies of IBC’s SEC filings and Annual Report (as an exhibit to the
10-K) may be downloaded from the SEC filings site located at http://www.sec.gov/edgar.shtml.

Contacts

Judith Wawroski
Treasurer and Principal Financial Officer
International
Bancshares Corporation
(956) 722-761