INTERNATIONAL BANCSHARES CORP

Net Income

Net income for the year ended December 31, 2025 increased by approximately .8% compared to the same period of 2024 and net income for the year ended December 31, 2024 decreased by approximately 0.6% compared to the same period of 2023. Net income for the year ended December 31, 2025 and the year ended December 31, 2024 was positively impacted by an increase in interest income earned on our investment and loan portfolios driven primarily by both an increase in the size of the portfolios and the rate environment, which remains elevated as a result of FRB actions. Net interest income for the same periods has been negatively impacted by an increase in interest expense, primarily driven by increases on rates paid on deposits. We closely monitor rates paid on deposits to remain competitive in the current economic environment and retain deposits. Net income for the year ended December 31, 2025 was also positively

impacted by a decrease in our provision for credit loss expense. The provision for credit loss expense recorded for the year ended December 31, 2024 was primarily impacted by a charge-down of an impaired credit after the results of a bankruptcy related foreclosure.