International Bancshares (IBOC) 10-K 27 Feb 17 2016 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2016	Feb. 22, 2017	Jun. 30, 2016
Document and Entity Information
Entity Registrant Name	INTERNATIONAL BANCSHARES CORP
Entity Central Index Key	315,709
Document Type	10-K
Document Period End Date	Dec. 31, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 1,720,588,000
Entity Common Stock, Shares Outstanding		65,989,631
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	FY

Consolidated Statements of Cond

Consolidated Statements of Condition - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Assets
Cash and cash equivalents	$ 269,198,000	$ 273,053,000
Investment securities:
Held to maturity (Market value of $2,400 on December 31, 2016 and $2,400 on December 31, 2015)	2,400,000	2,400,000
Available for sale (Amortized cost of $4,218,841 on December 31, 2016 and $4,196,034 on December 31, 2015)	4,177,349,000	4,199,372,000
Total investment securities	4,179,749,000	4,201,772,000
Loans	5,964,688,000	5,950,914,000
Less allowance for probable loan losses	(64,661,000)	(66,988,000)
Net loans	5,900,027,000	5,883,926,000
Bank premises and equipment, net	527,583,000	516,716,000
Accrued interest receivable	32,172,000	31,572,000
Other investments	517,162,000	468,791,000
Identified intangible assets, net	25,000	153,000
Goodwill	282,532,000	282,532,000
Other assets	95,593,000	114,354,000
Total assets	11,804,041,000	11,772,869,000
Deposits:
Demand - non-interest bearing	3,158,051,000	3,149,618,000
Savings and interest bearing demand	3,203,728,000	3,020,222,000
Time	2,248,310,000	2,366,413,000
Total deposits	8,610,089,000	8,536,253,000
Securities sold under repurchase agreements	504,985,000	827,772,000
Other borrowed funds	733,375,000	505,750,000
Junior subordinated deferrable interest debentures	160,416,000	161,416,000
Other liabilities	70,509,000	76,175,000
Total liabilities	10,079,374,000	10,107,366,000
Shareholders' equity:
Common shares of $1.00 par value. Authorized 275,000,000 shares; issued 95,910,143 shares on December 31, 2016 and 95,866,218 shares on December 31, 2015	95,910,000	95,866,000
Surplus	169,567,000	167,980,000
Retained earnings	1,777,963,000	1,683,600,000
Accumulated other comprehensive (loss) income (including $(3,287) on December 31, 2016 and $(4,026) on December 31, 2015 of comprehensive loss related to other-than-temporary impairment for non-credit related issues)	(26,697,000)	2,167,000
Total shareholders' equity before treasury stock	2,016,743,000	1,949,613,000
Less cost of shares in treasury, 29,934,516 shares on December 31, 2016 and 29,585,646 on December 31, 2015	(292,076,000)	(284,110,000)
Total shareholders' equity	1,724,667,000	1,665,503,000
Total liabilities and shareholders' equity	$ 11,804,041,000	$ 11,772,869,000

Consolidated Statements of Con3

Consolidated Statements of Condition (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Consolidated Statements of Condition
Held to maturity, Market value (in dollars)	$ 2,400	$ 2,400
Available for sale, Amortized cost (in dollars)	$ 4,218,841	$ 4,196,034
Common shares, par value (in dollars per share)	$ 1	$ 1
Common shares, Authorized shares	275,000,000	275,000,000
Common shares, issued shares	95,910,143	95,866,218
Comprehensive loss related to other-than-temporary impairment for non-credit related issues (in dollars)	$ (3,287)	$ (4,026)
Treasury, shares	29,934,675	29,585,646

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Interest income:
Loans, including fees	$ 297,820	$ 297,283	$ 281,546
Investment securities:
Taxable	79,533	88,008	100,095
Tax-exempt	10,356	11,319	11,767
Other interest income	205	144	191
Total interest income	387,914	396,754	393,599
Interest expense:
Savings deposits	4,562	3,593	3,597
Time deposits	9,963	11,233	12,033
Securities sold under repurchase agreements	20,876	23,777	24,616
Other borrowings	3,128	1,615	2,033
Junior subordinated deferrable interest debentures	4,600	4,099	4,264
Total interest expense	43,129	44,317	46,543
Net interest income	344,785	352,437	347,056
Provision for probable loan losses	19,859	24,405	14,423
Net interest income after provision for probable loan losses	324,926	328,032	332,633
Non-interest income:
Service charges on deposit accounts	73,581	78,825	88,586
Other service charges, commissions and fees
Banking	46,267	44,971	44,435
Non-banking	7,006	7,223	7,463
Investment securities transactions, net	(2,626)	(3,682)	1,283
Other investments, net	23,827	16,969	22,023
Other income	13,647	11,428	14,558
Total non-interest income	161,702	155,734	178,348
Non-interest expense:
Employee compensation and benefits	128,661	125,135	121,511
Occupancy	26,583	28,019	32,530
Depreciation of bank premises and equipment	24,738	25,009	24,013
Professional fees	13,672	12,278	10,925
Deposit insurance assessments	5,777	5,938	6,082
Net expense, other real estate owned	5,688	5,695	2,358
Amortization of identified intangible assets	128	644	2,389
Advertising	7,814	7,585	7,742
Early termination fee - securities sold under repurchase agreements	7,042	3,510	11,000
Software and software maintenance	15,087	11,225	9,824
Impairment charges (Total other-than-temporary impairment charges, $793 net of $1,147, $371, net of $1,325, and $(366), net of $(1,183), included in other comprehensive loss)	354	954	817
Other	54,081	50,932	51,852
Total non-interest expense	289,625	276,924	281,043
Income before income taxes	197,003	206,842	229,938
Provision for income taxes	63,071	70,116	76,787
Net income	$ 133,932	$ 136,726	$ 153,151
Basic earnings per common share:
Weighted average number of shares outstanding (in shares)	65,967,989	66,411,193	66,872,500
Net income (in dollars per share)	$ 2.03	$ 2.06	$ 2.29
Fully diluted earnings per common share:
Weighted average number of shares outstanding (in shares)	66,313,490	66,636,353	67,056,456
Net income (in dollars per share)	$ 2.02	$ 2.05	$ 2.28

Consolidated Statements of Inc5

Consolidated Statements of Income (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Consolidated Statements of Income
Impairment charges, other-than-temporary impairment charges	$ 793	$ 371	$ (366)
Impairment charges, other comprehensive income	$ 1,147	$ 1,325	$ (1,183)

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Consolidated Statements of Comprehensive Income
Net income	$ 133,932	$ 136,726	$ 153,151
Other comprehensive income (loss), net of tax:
Net unrealized holding (losses) gains on securities available for sale arising during period (net of tax effects of $(16,585), $(6,593), and $29,870)	(30,801)	(12,243)	55,474
Reclassification adjustment for losses (gains) on securities available for sale included in net income (net of tax effects of $919, $1,289, and $(449))	1,707	2,393	(834)
Reclassification adjustment for impairment charges on available for sale securities included in net income (net of tax effects of $124, $334, and $286)	230	620	531
Other comprehensive (loss) income, net of tax	(28,864)	(9,230)	55,171
Comprehensive income	$ 105,068	$ 127,496	$ 208,322

Consolidated Statements of Com7

Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Consolidated Statements of Comprehensive Income
Net unrealized holding (losses) gains on securities available for sale arising during period, tax effects	$ (16,585)	$ (6,593)	$ 29,870
Reclassification adjustment for (losses) gains on securities available for sale included in net income, tax effects	919	1,289	(449)
Reclassification adjustment for impairment charges on available for sale securities included in net income, tax effects	$ 124	$ 334	$ 286

Consolidated Statements of Shar

Consolidated Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands	Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Treasury Stock [Member]	Total
Balance at Dec. 31, 2013		$ 95,744	$ 163,947	$ 1,467,000	$ (43,774)	$ (258,509)	$ 1,424,408
Balance (in shares) at Dec. 31, 2013	95,744
Increase (decrease) in shareholders' equity
Net Income				153,151			153,151
Dividends:
Cash ($.60, $.58 and $.43 per share) for the year ended December 31, 2016, 2015 and 2014, respectively)				(34,762)			(34,762)
Purchase of treasury stock (349,029, 261,079 and 787,387 shares) for the years ended December 31, 2016, 2015 and 2014, respectively)						(18,923)	(18,923)
Exercise of stock options		40	515				555
Options exercised (in shares)	40
Stock compensation expense recognized in earnings			1,058				1,058
Other comprehensive income (loss), net of tax:
Net change in unrealized gains and losses on available for sale securities, net of reclassification adjustments					55,171		55,171
Balance at Dec. 31, 2014		95,784	165,520	1,585,389	11,397	(277,432)	1,580,658
Balance (in shares) at Dec. 31, 2014	95,784
Increase (decrease) in shareholders' equity
Net Income				136,726			136,726
Dividends:
Cash ($.60, $.58 and $.43 per share) for the year ended December 31, 2016, 2015 and 2014, respectively)				(38,515)			(38,515)
Purchase of treasury stock (349,029, 261,079 and 787,387 shares) for the years ended December 31, 2016, 2015 and 2014, respectively)						(6,678)	(6,678)
Exercise of stock options		82	1,288				1,370
Options exercised (in shares)	82
Stock compensation expense recognized in earnings			1,172				1,172
Other comprehensive income (loss), net of tax:
Net change in unrealized gains and losses on available for sale securities, net of reclassification adjustments					(9,230)		(9,230)
Balance at Dec. 31, 2015		95,866	167,980	1,683,600	2,167	(284,110)	1,665,503
Balance (in shares) at Dec. 31, 2015	95,866
Increase (decrease) in shareholders' equity
Net Income				133,932			133,932
Dividends:
Cash ($.60, $.58 and $.43 per share) for the year ended December 31, 2016, 2015 and 2014, respectively)				(39,569)			(39,569)
Purchase of treasury stock (349,029, 261,079 and 787,387 shares) for the years ended December 31, 2016, 2015 and 2014, respectively)						(7,966)	(7,966)
Exercise of stock options		44	505				549
Options exercised (in shares)	44
Stock compensation expense recognized in earnings			1,082				1,082
Other comprehensive income (loss), net of tax:
Net change in unrealized gains and losses on available for sale securities, net of reclassification adjustments					(28,864)		(28,864)
Balance at Dec. 31, 2016		$ 95,910	$ 169,567	$ 1,777,963	$ (26,697)	$ (292,076)	$ 1,724,667
Balance (in shares) at Dec. 31, 2016	95,910

Consolidated Statements of Sha9

Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Consolidated Statements of Shareholders' Equity
Cash Dividends (in dollars per share)	$ 0.60	$ 0.58	$ 0.43
Purchase of treasury stock (in shares)	349,029	261,079	787,387

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Operating activities:
Net income	$ 133,932,000	$ 136,726,000	$ 153,151,000
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for probable loan losses	19,859,000	24,405,000	14,423,000
Specific reserve, other real estate owned	2,351,000	1,023,000	779,000
Depreciation of bank premises and equipment	24,738,000	25,009,000	24,013,000
(Gain) loss on sale of bank premises and equipment	(450,000)	14,000	(3,658,000)
Loss (gain) on sale of other real estate owned	86,000	(57,000)	(933,000)
Accretion of investment securities discounts	(539,000)	(1,704,000)	(2,608,000)
Amortization of investment securities premiums	26,873,000	28,000,000	26,729,000
Investment securities transactions, net	2,626,000	3,682,000	(1,283,000)
Impairment charges on available for sale securities	354,000	954,000	817,000
Amortization of identified intangible assets	128,000	644,000	2,389,000
Stock based compensation expense	1,082,000	1,172,000	1,058,000
Earnings from affiliates and other investments	(14,315,000)	(12,176,000)	(10,903,000)
Deferred tax expense (benefit)	7,306,000	(332,000)	(1,027,000)
Increase in accrued interest receivable	(600,000)	(111,000)	(807,000)
Decrease (increase) in other assets	7,494,000	2,967,000	(1,621,000)
Net increase in other liabilities	(7,705,000)	(6,567,000)	(7,482,000)
Net cash provided by operating activities	203,220,000	203,649,000	193,037,000
Investing activities:
Proceeds from maturities of securities	1,200,000	1,075,000
Proceeds from sales and calls of available for sale securities	352,743,000	164,163,000	621,588,000
Purchases of available for sale securities	(1,325,657,000)	(352,513,000)	(971,358,000)
Principal collected on mortgage-backed securities	919,594,000	854,736,000	787,361,000
Net increase in loans	(38,523,000)	(297,689,000)	(502,129,000)
Purchases of other investments	(49,013,000)	(16,355,000)	(20,602,000)
Distributions from other investments	23,276,000	18,293,000	18,152,000
Purchases of bank premises and equipment	(38,856,000)	(19,831,000)	(50,360,000)
Proceeds from sales of bank premises and equipment	3,701,000	4,515,000	8,424,000
Proceeds from sales of other real estate owned	13,772,000	16,831,000	18,525,000
Net cash (used in) provided by investing activities	(137,763,000)	373,225,000	(90,399,000)
Financing activities:
Net increase in non-interest bearing demand deposits	8,433,000	219,365,000	263,743,000
Net increase (decrease) in savings and interest bearing demand deposits	183,506,000	(5,458,000)	100,068,000
Net decrease in time deposits	(118,103,000)	(116,279,000)	(168,611,000)
Net decrease in securities sold under repurchase agreements	(322,787,000)	(30,578,000)	(99,031,000)
Net increase (decrease) in other borrowed funds	227,625,000	(568,194,000)	(150,006,000)
Redemption of long-term debt	(1,000,000)	(14,000,000)	(15,310,000)
Purchase of treasury stock	(7,966,000)	(6,678,000)	(18,923,000)
Proceeds from stock transactions	549,000	1,370,000	555,000
Payments of cash dividends - common	(39,569,000)	(38,515,000)	(34,762,000)
Net cash used in financing activities	(69,312,000)	(558,967,000)	(122,277,000)
(Decrease) increase in cash and cash equivalents	(3,855,000)	17,907,000	(19,639,000)
Cash and cash equivalents at beginning of period	273,053,000	255,146,000	274,785,000
Cash and cash equivalents at end of period	269,198,000	273,053,000	255,146,000
Supplemental cash flow information:
Interest paid	44,069,000	44,560,000	47,273,000
Income taxes paid	49,925,000	65,234,000	80,374,000
Non-cash investing and financing activities:
Net transfer from loans to other real estate owned	$ 2,563,000	$ 3,775,000	$ 2,363,000

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2016
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	(1) Summary of Significant Accounting Policies The accounting and reporting policies of International Bancshares Corporation (“Corporation”) and Subsidiaries (the Corporation and Subsidiaries collectively referred to herein as the “Company”) conform to accounting principles generally accepted in the United States of America and to general practices within the banking industry. The following is a description of the more significant of those policies. Consolidation and Basis of Presentation The consolidated financial statements include the accounts of the Corporation and its wholly-owned bank subsidiaries, International Bank of Commerce, Laredo (“IBC”), Commerce Bank, International Bank of Commerce, Zapata, International Bank of Commerce, Brownsville, and the Corporation's wholly-owned non-bank subsidiaries, IBC Subsidiary Corporation, IBC Life Insurance Company, IBC Trading Company, Premier Tierra Holdings, Inc., IBC Charitable and Community Development Corporation, and IBC Capital Corporation. All significant inter-company balances and transactions have been eliminated in consolidation. The Company, through its subsidiaries, is primarily engaged in the business of banking, including the acceptance of checking and savings deposits and the making of commercial, real estate, personal, home improvement, automobile and other installment and term loans. The primary markets of the Company are South, Central, and Southeast Texas and the state of Oklahoma. Each bank subsidiary is very active in facilitating international trade along the United States border with Mexico and elsewhere. Although the Company’s loan portfolio is diversified, the ability of the Company’s debtors to honor their contracts is primarily dependent upon the economic conditions in the Company’s trade area. In addition, the investment portfolio is directly impacted by fluctuations in market interest rates. The Company and its bank subsidiaries are subject to the regulations of certain Federal agencies as well as the Texas Department of Banking and undergo periodic examinations by those regulatory authorities. Such agencies may require certain standards or impose certain limitations based on their judgments or changes in law and regulations. The Company owns one insurance‑related subsidiary, IBC Insurance Agency, Inc., a wholly owned subsidiary of IBC, the bank subsidiary. The insurance‑related subsidiary does not conduct underwriting activities. The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the dates of the statement of condition and income and expenses for the periods. Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to significant changes in the near‑term relate to the determination of the allowance for probable loan losses. Subsequent Events The Company has evaluated all events or transactions that occurred through the date the Company issued these financial statements. During this period, the Company did not have any material recognizable or non‑recognizable subsequent events. Investment Securities The Company classifies debt and equity securities into one of these categories: held‑to‑maturity, available‑for‑sale, or trading. Such classifications are reassessed for appropriate classification at each reporting date. Securities that are intended and expected to be held until maturity are classified as “held‑to‑maturity” and are carried at amortized cost for financial statement reporting. Securities that are not positively expected to be held until maturity, but are intended to be held for an indefinite period of time are classified as “available‑for‑sale” or “trading” and are carried at their fair value. Unrealized holding gains and losses are included in net income for those securities classified as “trading”, while unrealized holding gains and losses related to those securities classified as “available‑for‑sale” are excluded from net income and reported net of tax as other comprehensive income and in shareholders’ equity as accumulated other comprehensive income until realized. The Company did not maintain any trading securities during the three year period ended December 31, 2016. Mortgage‑backed securities held at December 31, 2016 and 2015 represent participating interests in pools of long‑term first mortgage loans originated and serviced by the issuers of the securities. Mortgage‑backed securities are either issued or guaranteed by the U.S. government or its agencies including the Federal Home Loan Mortgage Corporation (“Freddie Mac”), the Federal National Mortgage Association (“Fannie Mae”), the Government National Mortgage Association (“Ginnie Mae”) or other non‑government entities. Investments in residential mortgage‑backed securities issued by Ginnie Mae are fully guaranteed by the U. S. government. Investments in residential mortgage‑backed securities issued by Freddie Mac and Fannie Mae are not fully guaranteed by the U.S. government, however, the Company believes that the quality of the bonds is similar to other AAA rated bonds with limited credit risk, particularly given the placement of Fannie Mae and Freddie Mac into conservatorship by the federal government in 2008 and because securities issued by others that are collateralized by residential mortgage‑backed securities issued by Fannie Mae or Freddie Mac are rated consistently as AAA rated securities. Market interest rate fluctuations can affect the prepayment speed of principal and the yield on the security. Premiums and discounts are amortized using the level yield or “interest method” over the terms of the securities. Declines in the fair value of held‑to‑maturity and available‑for sale‑securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses. In determining whether other‑than‑temporary impairment exists, management considers many factors, including (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near‑term prospects of the issuer, and (3) the intent of the Company to hold and the determination of whether the Company will more likely than not be required to sell the security prior to a recovery in fair value. If the Company determines that (1) it intends to sell the security or (2) it is more likely than not that it will be required to sell the security before it’s anticipated recovery, the other‑than‑temporary impairment that is recognized in earnings is equal to the difference between the fair value of the security and the Company’s amortized cost in the security. If the Company determines that it (1) does not intend to sell the security and (2) it will not be more likely than not required to sell the security before it’s anticipated recovery, the other‑than‑temporary impairment is segregated into its two components (1) the amount of impairment related to credit loss and (2) the amount of impairment related to other factors. The difference between the present value of the cash flows expected to be collected and the amortized cost is the credit loss recognized through earnings and an adjustment to the cost basis of the security. The amount of impairment related to other factors is included in other comprehensive income (loss). Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. Provision and Allowance for Probable Loan Losses The allowance for probable loan losses is maintained at a level considered adequate by management to provide for probable loan losses. The allowance is increased by provisions charged to operating expense and reduced by net charge‑offs. The provision for probable loan losses is the amount, which, in the judgment of management, is necessary to establish the allowance for probable loan losses at a level that is adequate to absorb known and inherent risks in the loan portfolio. Management believes that the allowance for probable loan losses is adequate. While management uses available information to recognize losses on loans, future additions to the allowance may be necessary based on changes in economic conditions. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Company’s bank subsidiaries’ allowances for probable loan losses. Such agencies may require the Company’s bank subsidiaries to make additions or reductions to their U.S. generally accepted accounting principles (“GAAP”) allowances based on their judgments of information available to them at the time of their examination. The bank subsidiaries charge off that portion of any loan which management considers to represent a loss as well as that portion of any other loan which is classified as a “loss” by bank examiners. Commercial, financial and agricultural or real estate loans are generally considered by management to represent a loss, in whole or part, (i) when an exposure beyond any collateral coverage is apparent, (ii) when no further collection of the portion of the loan so exposed is anticipated based on actual results, (iii) when the credit enhancements, if any, are not adequate, and (iv) when the borrower’s financial condition would indicate so. Generally, unsecured consumer loans are charged off when 90 days past due. Loans Loans are reported at the principal balance outstanding, net of unearned discounts. Interest income on loans is reported on an accrual basis. Loan fees and costs associated with originating the loans are amortized over the life of the loan using the interest method. The Company originates mortgage loans that may subsequently be sold to an unaffiliated third party. The loans are not securitized and if sold, are sold without recourse. Loans held for sale are carried at cost and the principal amount outstanding is not significant to the consolidated financial statements. Impaired Loans Impaired loans are those loans where it is probable that all amounts due according to contractual terms of the loan agreement will not be collected. Impaired loans are measured based on (1) the present value of expected future cash flows discounted at the loan’s effective interest rate; (2) the loan’s observable market price; or (3) the fair value of the collateral if the loan is collateral dependent. Substantially all of the Company’s impaired loans are measured at the fair value of the collateral. In limited cases the Company may use other methods to determine the level of impairment of a loan if such loan is not collateral dependent. Troubled Debt Restructured Loans Troubled debt restructured loans (“TDR”) are those loans where, for reasons related to a borrower’s difficulty to repay a loan, the company grants a concession to the borrower that the company would not normally consider in the normal course of business. The original terms of the loan are modified or restructured. The terms that may be modified include a reduction in the original stated interest rate, an extension of the original maturity of the loan, a renewal of the loan at an interest rate below current market rates, a reduction in the principal amount of debt outstanding, a reduction in accrued interest or deferral of interest payments. A loan classified as a TDR is classified as an impaired loan and included in the impaired loan totals. A TDR loan may be returned to accrual status when the loan is brought current, has performed in accordance with the restructured terms for a reasonable period of time, is at the current market rate, and the ultimate collectability of the outstanding principal and interest is no longer questionable, however, although those loans may be placed back on accrual status, they will continue to be classified as impaired. Consistent with regulatory guidance, a TDR loan that is subsequently modified, but has shown sustained performance and classification as a TDR, will be removed from TDR status provided that the modified terms were market-based at the time of modification. Non‑Accrual Loans The non‑accrual loan policy of the Company’s bank subsidiaries is to discontinue the accrual of interest on loans when management determines that it is probable that future interest accruals will be un‑collectible. As it relates to consumer loans, management charges off those loans when the loan is contractually 90 days past due. Under special circumstances, a consumer or non‑consumer loan may be more than 90 days delinquent as to interest or principal and not be placed on non‑accrual status. This situation generally results when a bank subsidiary has a borrower who is experiencing financial difficulties, but not to the extent that requires a restructuring of indebtedness. The majority of this category is composed of loans that are considered to be adequately secured and/or for which there are expected future payments. When a loan is placed on non‑accrual status, any interest accrued, not paid is reversed and charged to operations against interest income. As it relates to non‑consumer loans that are not 90 days past due, management will evaluate each of these loans to determine if placing the loan on non‑accrual status is warranted. Interest income on non‑accrual loans is recognized only to the extent payments are received or when, in management’s opinion, the debtor’s financial condition warrants reestablishment of interest accruals. Other Real Estate Owned Other real estate owned is comprised of real estate acquired by foreclosure and deeds in lieu of foreclosure. Other real estate is carried at the lower of the recorded investment in the property or its fair value less estimated costs to sell such property (as determined by independent appraisal). Prior to foreclosure, the value of the underlying loan is written down to the fair value of the real estate to be acquired by a charge to the allowance for probable loan losses, if necessary. Any subsequent write‑downs are charged against other non‑interest expense through a valuation allowance. Other real estate owned totaled approximately $42,204,000 and $55,850,000 at December 31, 2016 and 2015, respectively. Other real estate owned is included in other assets. Bank Premises and Equipment Bank premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed on straight‑line and accelerated methods over the estimated useful lives of the assets. Repairs and maintenance are charged to operations as incurred and expenditures for renewals and betterments are capitalized. Other Investments Other investments include equity investments in non‑financial companies, bank owned life insurance, as well as equity securities with no readily determinable fair market value. Equity investments are accounted for using the equity method of accounting. Equity securities with no readily determinable fair value are accounted for using the cost method. Income Taxes Deferred income tax assets and liabilities are determined using the asset and liability method. Under this method, the net deferred tax asset or liability is determined based on the tax effects of the differences between the book and tax basis of the various balance sheet assets and liabilities and gives current recognition to changes in tax rates and laws. The Company files a consolidated federal income tax return with its subsidiaries. Recognition of deferred tax assets is based on management’s assessment that the benefit related to certain temporary differences, tax operating loss carry forwards, and tax credits are more likely than not to be realized. A valuation allowance is recorded for the amount of the deferred tax items for which it is more likely than not that the tax benefits will not be realized. The Company evaluates uncertain tax positions at the end of each reporting period. The Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefit recognized in the financial statements from any such a position is measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. As of December 31, 2016 and 2015, respectively, after evaluating all uncertain tax positions, the Company has recorded no liability for unrecognized tax benefits at the end of the reporting period. The Company would recognize any interest accrued on unrecognized tax benefits as other interest expense and penalties as other non‑interest expense. During the years ended December 31, 2016, 2015 and 2014, the Company recognized no interest expense or penalties related to uncertain tax positions. The Company files consolidated tax returns in the U.S. Federal jurisdiction and various state jurisdictions. The Company is no longer subject to U.S. federal or state income tax examinations by tax authorities for years before 2013. Stock Options Compensation expense for stock awards is based on the market price of the stock on the measurement date, which is generally the date of grant, and is recognized ratably over the service period of the award. The fair value of stock options granted was estimated, using the Black‑Sholes‑Merton option‑pricing model. This model was developed for use in estimating the fair value of publicly traded options that have no vesting restrictions and are fully transferable. Additionally, the model requires the input of highly subjective assumptions. Because the Company’s employee stock options have characteristics significantly different from those of publicly traded options, and because changes in the subjective input assumptions can materially affect the fair value estimate, in management’s opinion, the Black‑Scholes‑Merton option‑pricing model does not necessarily provide a reliable single measure of the fair value of the Company’s stock options. Net Income Per Share Basic Earnings Per Share (“EPS”) is calculated by dividing net income by the weighted average number of common shares outstanding. The computation of diluted EPS assumes the issuance of common shares for all dilutive potential common shares outstanding during the reporting period. The dilutive effect of stock options is considered in earnings per share calculations, if dilutive, using the treasury stock method. Goodwill and Identified Intangible Assets Goodwill represents the excess of costs over fair value of assets of businesses acquired. Goodwill is tested for impairment at least annually or on an interim basis if an event triggering impairment may have occurred. As of October 1, 2016, after completing goodwill testing, the Company has determined that no goodwill impairment exists. Identified intangible assets are acquired assets that lack physical substance but can be distinguished from goodwill because of contractual or other legal rights or because the asset is capable of being sold or exchanged either on its own or in combination with a related contract, asset, or liability. The Company’s identified intangible assets relate to core deposits and contract rights. As of December 31, 2016, the Company has determined that no impairment of identified intangibles exists. Identified intangible assets with definite useful lives are amortized on an accelerated basis over their estimated life. See Note 6—Goodwill and Other Intangible Assets. Impairment of Long‑Lived Assets Long‑lived assets, such as property, plant and equipment, and purchased intangibles subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying value of the asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying value of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying value of the asset exceeds the fair value of the asset. Assets to be disposed of would be separately presented in the statement of condition and reported at the lower of the carrying value or fair value less costs to sell, and are no longer depreciated. The assets and liabilities of a disposed group classified as held for sale would be presented separately in the appropriate asset and liability sections of the statement of condition. Consolidated Statements of Cash Flows For purposes of the consolidated statements of cash flows, the Company considers all short‑term investments with a maturity at date of purchase of three months or less to be cash equivalents. Also, the Company reports transactions related to deposits and loans to customers on a net basis. Accounting for Transfers and Servicing of Financial Assets The Company accounts for transfers and servicing of financial assets and extinguishments of liabilities based on the application of a financial‑components approach that focuses on control. After a transfer of financial assets, the Company recognizes the financial and servicing assets it controls and liabilities it has incurred, derecognizes financial assets when control has been surrendered and derecognizes liabilities when extinguished. The Company has retained mortgage servicing rights in connection with the sale of mortgage loans. Because the Company may not initially identify loans as originated for resale, all loans are initially treated as held for investment. The value of the mortgage servicing rights are reviewed periodically for impairment and are amortized in proportion to, and over the period of estimated net servicing income or net servicing losses. The value of the mortgage servicing rights is not significant to the consolidated statements of condition. Segments of an Enterprise and Related Information The Company operates as one segment. The operating information used by the Company’s chief executive officer for purposes of assessing performance and making operating decisions about the Company is the consolidated financial statements presented in this report. The Company has four active operating subsidiaries, namely, the bank subsidiaries, otherwise known as International Bank of Commerce, Laredo, Commerce Bank, International Bank of Commerce, Zapata and International Bank of Commerce, Brownsville. The Company applies the provisions of ASC Topic 280, “Segment Reporting,” in determining its reportable segments and related disclosures. Comprehensive Income (Loss) Comprehensive income (loss) consists of net income and other comprehensive income (loss). Other comprehensive income (loss) includes unrealized gains and losses on securities available for sale. Advertising Advertising costs are expensed as incurred. Reclassifications Certain amounts in the prior year’s presentations have been reclassified to conform to the current presentation. These reclassifications had no effect on previously reported net income or shareholders’ equity. New Accounting Standards In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-09 to ASC 606, “Revenue from Contracts with Customers.” The update sets a common standard that defines revenue and the principles for recognizing revenue. The update outlines when an entity should recognize revenue, among other matters. At its core, the update states that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The update also outlines the steps that entities should take to determine and record the correct revenue number. The update was originally effective for annual periods beginning after December 15, 2016 and the interim perriods wihin that reporting period. In August 2015, the FASB issued accounting Standards Update No 2015-14 which deferred the effective date of Accounting Standards Update No. 2014-019 by one year to annual and interim periods beginning after December 15, 2017. The Company’s revenue is primarily comprised of net interest income on financial assets and financial liabilities and non-interest income, which is explicitly excluded from the scope of the update. The Company will continue to evaluate the impact of the update on certain other revenue items, such as the sales of other real estate, however, the adtoption of the update is not expected to have a significant impact on the Company’s consolidated financial statements. In January 2015, the FASB issued Accounting Standards Update No. 2015-01 to ASC 225-20, “Income Statement- Extraordinary and Unusual Items.” The update amends existing standards and is being issued as part of the FASB’s initiative to reduce complexity in accounting standards. The update eliminates the concept of extraordinary items. The update is effective for interim and annual periods after December 15, 2015. The adoption of the update did not have a significant impact to the Company’s consolidated financial statements. In February 2015, the FASB issued Accounting Standards Update No. 2015-02 to ASC 810, “Consolidation.” The update amends existing standards regarding the evaluation of certain legal entities and their consolidation in the financial statements. The amendments modify the evaluation process to assess whether limited partnerships and similar legal entities are variable interest entities or voting interest entities, eliminate the presumption that a general partner should consolidate a limited partnership, affect the consolidation analysis of entities that are involved in variable interest entities, particularly those that have fee arrangements and related party relationships and provides a scope exception for reporting entities with legal interests that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds. The update is effective for interim and annual periods after December 15, 2015. The adoption of the update to existing standards did not have a significant impact to the Company’s consolidated financial statements. In September 2015, the FASB issued Accounting Standards Update No. 2015-16 to ASC 805, “Business Combinations.” The update amends existing standards regarding the methodology used to recognize adjustments related to provisional amounts that are identified during the measurement period of a business combination. The update requires that adjustments to provisional amounts be recognized in the reporting period in which the adjustment amounts are determined. The update requires that the reporting entity disclose on the face of the income statement or in the notes, the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. The update is effective for interim and annual periods after December 15, 2015. The adoption of the update to existing standards did not have a significant impact to the Company’s consolidated financial statements. In January 2016, the FASB issued Accounting Standards Update No. 2016-01 to ASC 825-10, “Financial Instruments – Overall.” The update amends existing standards regarding certain aspects of recognition and measurement of financial assets and financial liabilities. The amendments in the update establish the following guidance: (i) requires equity investments, except those accounted for under the equity method of accounting or those that result in consolidation of the investee, to be measured at fair value with changes in fair value recognized in net income, (ii) simplifies the impairment assessment of equity securities without readily determinable fair values by requiring a qualitative assessment, (iii) eliminates the requirement to disclose the fair value of financial instruments measured at amortized cost for entities that are not public business entities, (iv) eliminates the requirement for public business entities to disclose the methods and significant assumptions used to estimate fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, (v) requires public business entities to use the exit price notion when measuring fair value for disclosure purposes, (vi) requires an entity to present separately, in other comprehensive income, the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option, (vii) requires separate presentation of financial assets and liabilities by measurement category and form of financial assets on the balance sheet or in the accompanying notes to the financial statements, and (viii) clarifies that an entity should evaluate the need to a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. The update is effective for interim and annual periods beginning after December 15, 2017. The adoption of the update is not expected to have a significant impact to the Company’s consolidated financial statements. In February 2016, the FASB issued Accounting Standards Update No. 2016-02 to ASC 820, “Leases.” The update amends existing standards for accounting for leases by lessees, with accounting for leases by lessors remaining mainly unchanged from current guidance. The update requires that lessees recognize a lease liability and a right of use asset for all leases (with the exception of short-term leases) at the commencement date of the lease and disclose key information about leasing arrangements. The update is effective for interim and annual periods beginning after December 15, 2015 and is to be applied on a modified retrospective basis. The Company is evaluating the potential impact to the Company’s consolidated financial statements. In March 2016, the FB issued Accounting Standards Update No. 2016-09 to ASC 718, “Compensation – Stock Compensation.” The update amends existing standards for accounting for share-based payment transactions, including the income tax effects, the classification of awards on the balance sheet and the classification on the statement of cash flows. The update is effective for annual and interim periods after December 15, 2016. The adoption of the update is not expected to have a significant impact to the Company’s consolidated financial statements. In June 2016, the FASB issued Accounting Standards Update No. 2016-13 to ASC 326, “Financial Insruments – Credit Losses.” The update amends existing standards for accounting for credit losses for financial assets. The update requires that the expected credit losses on the financial instruments held as of the end of the period being reported be measured based on historical experience, current conditions, and reasonable and supportable forecasts. The update also expands the required disclosures related to significant estimates and judgements used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s financial assets. The update also amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioriation. The update is effective for interim and annual periods beginning after December 15, 2019. The Company is evaluating the potential impact of the update on the Company’s consolidated financial statements. In January 2017, the FASB issued Accounting Standards Update No. 2017-04 to ASC 350, “Intangibles – Goodwill and Other.” The update amends existing guidance in evaluating goodwill for impairment. The update requires that an entity perform its annual or interim goodwill test by comparing the fair value of a reporting unit with its carrying amount, with any impairment charges being recognized as the difference between the fair value and carrying value. The update is intended to standardize the impairment test for all business entities and also reduce the complexity and cost of evaluating goodwill for impairment. The update is effective for any ann

Investment Securities

Investment Securities	12 Months Ended
	Dec. 31, 2016
Investment Securities
Investment Securities	(2) Investment Securities The amortized cost and estimated fair value by type of investment security at December 31, 2016 are as follows: Held to Maturity Gross Gross Amortized unrealized unrealized Estimated Carrying cost gains losses fair value value (Dollars in Thousands) Other securities $ $ — $ — $ $ Total investment securities $ $ — $ — $ $ Available for Sale Gross Gross Amortized unrealized unrealized Estimated Carrying cost gains losses fair value value (1) (Dollars in Thousands) Residential mortgage-backed securities $ $ $ $ $ Obligations of states and political subdivisions Equity securities Total investment securities $ $ $ $ $ (1) Included in the carrying value of residential mortgage‑ backed securities are $850,033 of mortgage‑backed securities issued by Ginnie Mae, $ 3,026,832 of mortgage‑backed securities issued by Fannie Mae and Freddie Mac and $17,605 issued by non‑government entities The amortized cost and estimated fair value of investment securities at December 31, 2016, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to prepay obligations with or without prepayment penalties. Held to Maturity Available for Sale Amortized Estimated Amortized Estimated Cost fair value Cost fair value (Dollars in Thousands) Due in one year or less $ $ $ — $ — Due after one year through five years — — Due after five years through ten years — — Due after ten years — — Residential mortgage-backed securities — — Equity securities — — Total investment securities $ $ $ $ The amortized cost and estimated fair value by type of investment security at December 31, 2015 are as follows: Held to Maturity Gross Gross Amortized unrealized unrealized Estimated Carrying cost gains losses fair value value (Dollars in Thousands) Other securities $ $ — $ — $ $ Total investment securities $ $ — $ — $ $ Available for Sale Gross Gross Estimated Amortized unrealized unrealized fair Carrying cost gains losses value value (1) (Dollars in Thousands) Residential mortgage-backed securities $ $ $ $ $ Obligations of states and political subdivisions Equity securities Total investment securities $ $ $ $ $ (1) Included in the carrying value of residential mortgage‑ backed securities are $1,147,143 of mortgage‑backed securities issued by Ginnie Mae, $2,724,839 of mortgage‑backed securities issued by Fannie Mae and Freddie Mac and $21,229 issued by non‑government entities Residential mortgage‑backed securities are securities issued by Freddie Mac, Fannie Mae, Ginnie Mae or non‑government entities. Investments in residential mortgage‑backed securities issued by Ginnie Mae are fully guaranteed by the U.S. government. Investments in mortgage‑backed securities issued by Freddie Mac and Fannie Mae are not fully guaranteed by the U.S. government, however, the Company believes that the quality of the bonds is similar to other AAA rated bonds with limited credit risk, particularly given the placement of Fannie Mae and Freddie Mac into conservatorship by the federal government in early September 2008 and because securities issued by others that are collateralized by residential mortgage‑backed securities issued by Fannie Mae and Freddie Mac are rated consistently as AAA rated securities. The amortized cost and fair value of available for sale investment securities pledged to qualify for fiduciary powers, to secure public monies as required by law, repurchase agreements and short‑term fixed borrowings was $1,780,513,000 and $1,754,763,000, respectively, at December 31, 2016. Proceeds from the sale and call of securities available‑for‑sale were $352,743,000 $164,163,000 and $621,588,000 during 2016, 2015 and 2014, respectively, which amounts included $338,138,000, $128,444,000 and $620,933 of mortgage‑backed securities. Gross gains of $586,000, $2,450,000 and $9,479,000 and gross losses of $3,212,000, $6,132,000 and $8,196,000 were realized on the sales in 2016, 2015 and 2014, respectively. Gross unrealized losses on investment securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2016 were as follows: Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses (Dollars in Thousands) Available for sale: Residential mortgage-backed securities $ $ $ $ $ $ Obligations of states and political subdivisions — — Equity securities $ $ $ $ $ $ Gross unrealized losses on investment securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous loss position, at December 31, 2015 were as follows: Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses (Dollars in Thousands) Available for sale: Residential mortgage-backed securities $ $ $ $ $ $ Obligations of states and political subdivisions Equity securities $ $ $ $ $ $ The unrealized losses on investments in residential mortgage‑backed securities are primarily caused by changes in market interest rates. Residential mortgage‑backed securities are primarily securities issued by Freddie Mac, Fannie Mae and Ginnie Mae. The contractual cash obligations of the securities issued by Ginnie Mae are fully guaranteed by the U.S. government. The contractual cash obligations of the securities issued by Freddie Mac and Fannie Mae are not fully guaranteed by the U.S. government; however, the Company believes that the quality of the bonds is similar to other AAA rated bonds with limited credit risk, particularly given the placement of Fannie Mae and Freddie Mac into conservatorship by the federal government in early September 2008 and because securities issued by others that are collateralized by residential mortgage‑backed securities issued by Fannie Mae and Freddie Mac are rated consistently as AAA rated securities. The decrease in fair value on residential mortgage‑backed securities issued by Freddie Mac, Fannie Mae and Ginnie Mae is due to market interest rates. The Company has no intent to sell and more likely than not be required to sell before a market price recovery or maturity of the securities; therefore, it is the conclusion of the Company that the investments in residential mortgage‑backed securities issued by Freddie Mac, Fannie Mae and Ginnie Mae are not considered other‑than‑temporarily impaired. In addition, the Company has a small investment in non‑agency residential mortgage‑backed securities that have strong credit backgrounds and include additional credit enhancements to protect the Company from losses arising from high foreclosure rates. These securities have additional market volatility beyond economically induced interest rate events. It is the conclusion of the Company that the investments in non‑agency residential mortgage‑backed securities are other‑than‑temporarily impaired due to both credit and other than credit issues. An impairment charge of $354,000 ($230,100 after tax), was recorded in 2016 on the non‑agency residential mortgage backed securities. Impairment charges of $954,000 ($620,100, after tax) and $817,000 ($531,050, after tax) were recorded in 2015 and 2014, respectively on the non‑agency residential mortgage backed securities. The impairment charges represent the credit related impairment on the securities. The unrealized losses on investments in other securities are caused by fluctuations in market interest rates. The underlying cash obligations of the securities are guaranteed by the entity underwriting the debt instrument. It is the belief of the Company that the entity issuing the debt will honor its interest payment schedule, as well as the full debt at maturity. The securities are purchased by the Company for their economic value. The decrease in fair value is primarily due to market interest rates and not other factors, and because the Company has no intent to sell and will more likely than not be required to sell before a market price recovery or maturity of the securities, it is the conclusion of the Company that the investments are not considered other‑than‑temporarily impaired. The following table presents a reconciliation of credit‑related impairment charges on available‑for‑sale investments recognized in earnings for the twelve months ended December 31, 2016 (in Thousands): Balance at December 31, 2015 $ Impairment charges recognized during period Balance at December 31, 2016 $ The following table presents a reconciliation of credit‑related impairment charges on available‑for‑sale investments recognized in earnings for the twelve months ended December 31, 2015 (in Thousands): Balance at December 31, 2014 $ Impairment charges recognized during period Balance at December 31, 2015 $ The following table presents a reconciliation of credit‑related impairment charges on available‑for‑sale investments recognized in earnings for the twelve months ended December 31, 2014 (in Thousands): Balance at December 31, 2013 $ Impairment charges recognized during period Balance at December 31, 2014 $

Loans

Loans	12 Months Ended
	Dec. 31, 2016
Loans
Loans	(3) Loans A summary of loans, by loan type at December 31, 2016 and 2015 is as follows: December 31, December 31, 2016 2015 (Dollars in Thousands) Commercial, financial and agricultural $ $ Real estate - mortgage Real estate - construction Consumer Foreign Total loans $ $

Allowance for Probable Loan Los

Allowance for Probable Loan Losses	12 Months Ended
	Dec. 31, 2016
Allowance for Probable Loan Losses
Allowance for Probable Loan Losses	(4) Allowance for Probable Loan Losses The allowance for probable loan losses primarily consists of the aggregate loan loss allowances of the bank subsidiaries. The allowances are established through charges to operations in the form of provisions for probable loan losses. Loan losses or recoveries are charged or credited directly to the allowances. The allowance for probable loan losses of each bank subsidiary is maintained at a level considered appropriate by management, based on estimated probable losses in the loan portfolio. The allowance for probable loan losses is derived from the following elements: (i) allowances established on specific impaired loans, which are based on a review of the individual characteristics of each loan, including the customer’s ability to repay the loan, the underlying collateral values, and the industry in which the customer operates, (ii) allowances based on actual historical loss experience for similar types of loans in the Company’s loan portfolio, and (iii) allowances based on general economic conditions, changes in the mix of loans, company resources, border risk and credit quality indicators, among other things. The Company’s management continually reviews the allowance for loan losses of the bank subsidiaries using the amounts determined from the allowances established on specific impaired loans, the allowance established on quantitative historical loss percentages, and the allowance based on qualitative data to establish an appropriate amount to maintain in the Company’s allowance for loan losses. Should any of the factors considered by management in evaluating the adequacy of the allowance for probable loan losses change, the Company’s estimate of probable loan losses could also change, which could affect the level of future provisions for probable loan losses. While the calculation of the allowance for probable loan losses utilizes management’s best judgment and all information available, the adequacy of the allowance is dependent on a variety of factors beyond the Company’s control, including, among other things, the performance of the entire loan portfolio, the economy, changes in interest rates and the view of regulatory authorities towards loan classifications. The loan loss provision is determined using the following methods. On a weekly basis, loan past due reports are reviewed by the credit quality committee to determine if a loan has any potential problems and if a loan should be placed on the Company’s internal classified report. Additionally, the Company’s credit department reviews the majority of the Company’s loans for proper internal classification purposes regardless of whether they are past due and segregates any loans with potential problems for further review. The credit department will discuss the potential problem loans with the servicing loan officers to determine any relevant issues that were not discovered in the evaluation. Also, an analysis of loans that is provided through examinations by regulatory authorities is considered in the review process. After the above analysis is completed, the Company will determine if a loan should be placed on an internal classified report because of issues related to the analysis of the credit, credit documents, collateral and/or payment history. The U.S. economy continues to face uncertainty, with particular attention being paid to continued depressed oil and gas prices, the unprecedented debt and trade deficit of the United States, possible interest rate movement, political changes, the continued impact of overseas markets on the U.S. and the negative impact on US exports and cross border trade between the U.S. and Mexico arising from the strength of the U.S. dollar. Although the Texas and Oklahoma economies continue to perform better than the U.S. economy as a whole, the same issues that are creating uncertainty in the U.S. economy may also negatively impact the economies of Texas and Oklahoma. Economic risk factors are minimized by the underwriting standards of the bank subsidiaries. The general underwriting standards encompass the following principles: (i) the financial strength of the borrower including strong earnings, a high net worth, significant liquidity and an acceptable debt to worth ratio, (ii) managerial and business competence, (iii) the ability to repay, (iv) for a new business, projected cash flows, (v) loan to value, (vi) in the case of a secondary guarantor, a guarantor financial statement, and (vii) financial and/or other character references. Although the underwriting standards reduce the risk of loss, unique risk factors exist in each type of loan in which the bank subsidiaries invest. Commercial and industrial loans are mostly secured by the collateral pledged by the borrower that is directly related to the business activities of the company such as accounts receivable and inventory. The ability of the borrower to collect accounts receivable, and to turn inventory into sales are risk factors in the repayment of the loan. Construction and land development loans can carry risk of repayment when projects incur cost overruns, have an increase in the price of building materials, encounter zoning and environmental issues, or encounter other factors that may affect the completion of a project on time and on budget. Additionally, repayment risk may be negatively impacted when the market experiences a deterioration in the value of real estate. Risks specifically related to 1‑4 family development loans also include the practice by the mortgage industry of more restrictive underwriting standards, which inhibits the buyer from obtaining long term financing and excessive housing and lot inventory in the market. Commercial real estate loans demonstrate a risk of repayment when market values deteriorate, the business experiences turnover in key management, the business has an inability to attract or keep occupancy levels stable, or when the market experiences an exit of a specific business industry that is significant to the local economy, such as a manufacturing plant. First and second lien residential 1-4 family mortgage and consumer loan repayments may be affected by unemployment or underemployment and deteriorating market values of real estate. A summary of the changes in the allowance for probable loan losses by loan class is as follows: December 31, 2016 Domestic Foreign Commercial real estate: other Commercial construction & real estate: Commercial land farmland & real estate: Residential: Residential: Commercial development commercial multifamily first lien junior lien Consumer Foreign Total (Dollars in Thousands) Balance at December 31, $ $ $ $ $ $ $ $ $ Losses charge to allowance Recoveries credited to allowance — Net losses charged to allowance Provision (credit) charged to operations Balance at December 31, $ $ $ $ $ $ $ $ $ December 31, 2015 Domestic Foreign Commercial real estate: other Commercial construction & real estate: Commercial land farmland & real estate: Residential: Residential: Commercial development commercial multifamily first lien junior lien Consumer Foreign Total (Dollars in Thousands) Balance at December 31, $ $ $ $ $ $ $ $ $ Losses charge to allowance — — Recoveries credited to allowance — Net losses charged to allowance — Provision (credit) charged to operations Balance at December 31, $ $ $ $ $ $ $ $ $ December 31, 2014 Domestic Foreign Commercial real estate: other Commercial construction & real estate: Commercial land farmland & real estate: Residential: Residential: Commercial development commercial multifamily first lien junior lien Consumer Foreign Total (Dollars in Thousands) Balance at December 31, $ $ $ $ $ $ $ $ $ Losses charge to allowance — Recoveries credited to allowance — Net losses charged to allowance — Provision (credit) charged to operations Balance at December 31, $ $ $ $ $ $ $ $ $ The allowance for probable loan losses is a reserve established through a provision for probable loan losses charged to expense, which represents management’s best estimate of probable loan losses when evaluating loans (i) individually or (ii) collectively. The increase in losses charged to the allowance for probable loan losses for the year ended December 31, 2016 can be attributed to further deterioration in a previously identified and charged down relationship primarily secured by multiple pieces of transportation equipment. In March 2016, litigation against the management of the borrower was filed in the State of Nevada, resulting in a going concern issue with the borrower’s operations and the future use of the transportation equipment pledged as collateral on the relationship. As a result, management, in accordance with its credit review procedures, re-evaluated the collateral values on the equipment in light of the new circumstances and reduced the collateral values accordingly, resulting in a further charge-down of the relationship of approximately $19.4 million, which is included in the losses charged to the allowance in the commercial category in the table detailing the year ended December 31, 2016 activity. The impact of the charge-down is also reflected in the various tables in this Note including impaired loans, non-accrual loans and the credit quality indicator summary. The relationship was classified as Watch-List Impaired at December 31, 2015. Two large recoveries on loans charged off in prior years are included in the recoveries credited to the allowance in the table detailing activity for the year ended December 31, 2016. The recoveries occurred in the first and third quarters of 2016 in the amounts of $4.4 million and $6 million, respectively and are included in the Commercial and Commercial Real Estate: Other Construction and Land Development categories. The increase in charge-offs for the years ended December 31, 2015 and 2014 in the Commercial category can be attributed to a charge down of the previously discussed relationship that is primarily secured by multiple pieces of transportation equipment. The relationship was charged down by $13.5 million and $8.5 million for the years ended December 31, 2015 and December 31, 2014, respectively. The table below provides additional information on the balance of loans individually or collectively evaluated for impairment and their related allowance, by loan class: December 31, 2016 Loans Individually Loans Collectively Evaluated For Evaluated For Impairment Impairment Recorded Recorded Investment Allowance Investment Allowance (Dollars in Thousands) Domestic Commercial $ $ — $ $ Commercial real estate: other construction & land development Commercial real estate: farmland & commercial Commercial real estate: multifamily — Residential: first lien Residential: junior lien — Consumer — Foreign — Total $ $ $ $ December 31, 2015 Loans Individually Loans Collectively Evaluated For Evaluated For Impairment Impairment Recorded Recorded Investment Allowance Investment Allowance (Dollars in Thousands) Domestic Commercial $ $ $ $ Commercial real estate: other construction & land development Commercial real estate: farmland & commercial Commercial real estate: multifamily Residential: first lien — Residential: junior lien — Consumer — Foreign — Total $ $ $ $ Loans accounted for on a non‑accrual basis at December 31, 2016, 2015 and 2014 amounted to $37,245,000, $47,685,000 and $63,559,000, respectively. The effect of such non‑accrual loans reduced interest income by approximately $2,461,800, $3,298,000 and $4,013,000 for the years ended December 31, 2016, 2015 and 2014, respectively. Amounts received on non‑accruals are applied, for financial accounting purposes, first to principal and then to interest after all principal has been collected. Accruing loans contractually past due 90 days or more as to principal or interest payments at December 31, 2016, 2015 and 2014 amounted to approximately $5,226,000, $11,616,000 and $9,988,000, respectively. The table below provides additional information on loans accounted for on a non‑accrual basis by loan class: December 31, 2016 December 31, 2015 (Dollars in Thousands) Domestic Commercial $ $ Commercial real estate: other construction & land development Commercial real estate: farmland & commercial Commercial real estate: multifamily Residential: first lien Residential: junior lien Consumer Foreign Total non-accrual loans $ $ Impaired loans are those loans where it is probable that all amounts due according to contractual terms of the loan agreement will not be collected. The Company has identified these loans through its normal loan review procedures. Impaired loans are measured based on (1) the present value of expected future cash flows discounted at the loan’s effective interest rate; (2) the loan’s observable market price; or (3) the fair value of the collateral if the loan is collateral dependent. Substantially all of the Company’s impaired loans are measured at the fair value of the collateral. In limited cases the Company may use other methods to determine the level of impairment of a loan if such loan is not collateral dependent. The following tables detail key information regarding the Company’s impaired loans by loan class for the year ended December 31, 2016: December 31, 2016 Unpaid Average Recorded Principal Related Recorded Interest Investment Balance Allowance Investment Recognized (Dollars in Thousands) Loans with Related Allowance Domestic Commercial real estate: other construction & land development $ $ $ $ $ — Commercial real estate: farmland & commercial — Residential: first lien — Total impaired loans with related allowance $ $ $ $ $ — December 31, 2016 Unpaid Average Recorded Principal Recorded Interest Investment Balance Investment Recognized (Dollars in Thousands) Loans with No Related Allowance Domestic Commercial $ $ $ $ Commercial real estate: other construction & land development Commercial real estate: farmland & commercial Commercial real estate: multifamily — Residential: first lien Residential: junior lien Consumer Foreign Total impaired loans with no related allowance $ $ $ $ The following tables detail key information regarding the Company’s impaired loans by loan class for the year ended December 31, 2015: December 31, 2015 Unpaid Average Recorded Principal Related Recorded Interest Investment Balance Allowance Investment Recognized (Dollars in Thousands) Loans with Related Allowance Domestic Commercial $ $ $ $ $ — Commercial real estate: other construction & land development — Commercial real estate: farmland & commercial Commercial real estate: multifamily — Total impaired loans with related allowance $ $ $ $ $ December 31, 2015 Unpaid Average Recorded Principal Recorded Interest Investment Balance Investment Recognized (Dollars in Thousands) Loans with No Related Allowance Domestic Commercial $ $ $ $ Commercial real estate: other construction & land development Commercial real estate: farmland & commercial — Commercial real estate: multifamily — Residential: first lien Residential: junior lien Consumer Foreign Total impaired loans with no related allowance $ $ $ $ A portion of the impaired loans have adequate collateral and credit enhancements not requiring a related allowance for loan loss. Management is confident the Company’s loss exposure regarding these credits will be significantly reduced due to the Company’s long‑standing practices that emphasize secured lending with strong collateral positions and guarantor support. Management is likewise confident the reserve for probable loan losses is adequate. Management of the Company recognizes the risks associated with these impaired loans. However, management's decision to place loans in this category does not necessarily mean that losses will occur. In the current environment, troubled loan management can be protracted because of the legal and process problems that delay the collection of an otherwise collectable loan. Additionally, management believes that the collateral related to these impaired loans and/or the secondary support from guarantors mitigates the potential for losses from impaired loans. The following table details loans accounted for as “troubled debt restructuring,” segregated by loan class. Loans accounted for as troubled debt restructuring are included in impaired loans. December 31, 2016 December 31, 2015 (Dollars in Thousands) Domestic Commercial $ $ Commercial real estate: other construction & land development — Commercial real estate: farmland & commercial Residential: first lien Residential: junior lien Consumer Foreign Total troubled debt restructuring $ $ The increase in loans accounted for as troubled debt restructurings for December 31, 2016 is due to the renewal of an impaired loan that was previously charged down. The loan is primarily secured by multiple pieces of transportation equipment, as previously discussed with respect to the detail in the changes in the allowance for probable loan losses in this Note. The loan remains on non-accrual status and is included in total impaired loans in the various tables in this Note. The bank subsidiaries charge off that portion of any loan which management considers to represent a loss, as well as that portion of any other loan which is classified as a “loss” by bank examiners. Commercial and industrial or real estate loans are generally considered by management to represent a loss, in whole or part, when an exposure beyond any collateral coverage is apparent and when no further collection of the loss portion is anticipated based on the borrower’s financial condition and general economic conditions in the borrower’s industry. Generally, unsecured consumer loans are charged‑off when 90 days past due. While management of the Company considers that it is generally able to identify borrowers with financial problems reasonably early and to monitor credit extended to such borrowers carefully, there is no precise method of predicting loan losses. The determination that a loan is likely to be uncollectible and that it should be wholly or partially charged‑off as a loss is an exercise of judgment. Similarly, the determination of the adequacy of the allowance for probable loan losses can be made only on a subjective basis. It is the judgment of the Company’s management that the allowance for probable loan losses at December 31, 2016 and December 31, 2015, was adequate to absorb probable losses from loans in the portfolio at that date. The following table presents information regarding the aging of past due loans by loan class: December 31, 2016 90 Days or Total 30 - 59 60 - 89 90 Days or greater & Past Total Days Days Greater still accruing Due Current Portfolio (Dollars in Thousands) Domestic Commercial $ $ $ $ $ $ $ Commercial real estate: other construction & land development Commercial real estate: farmland & commercial Commercial real estate: multifamily — — Residential: first lien Residential: junior lien Consumer Foreign Total past due loans $ $ $ $ $ $ $ December 31, 2015 90 Days or Total 30 - 59 60 - 89 90 Days or greater & Past Total Days Days Greater still accruing Due Current Portfolio (Dollars in Thousands) Domestic Commercial $ $ $ $ $ $ $ Commercial real estate: other construction & land development — Commercial real estate: farmland & commercial Commercial real estate: multifamily Residential: first lien Residential: junior lien Consumer Foreign Total past due loans $ $ $ $ $ $ $ The Company’s internal classified report is segregated into the following categories: (i) “Special Review Credits,” (ii) “Watch List—Pass Credits,” or (iii) “Watch List—Substandard Credits.” The loans placed in the “Special Review Credits” category reflect the Company’s opinion that the loans reflect potential weakness which require monitoring on a more frequent basis. The “Special Review Credits” are reviewed and discussed on a regular basis with the credit department and the lending staff to determine if a change in category is warranted. The loans placed in the “Watch List—Pass Credits” category reflect the Company’s opinion that the credit contains weaknesses which represent a greater degree of risk, which warrant “extra attention.” The “Watch List—Pass Credits” are reviewed and discussed on a regular basis with the credit department and the lending staff to determine if a change in category is warranted. The loans placed in the “Watch List—Substandard Credits” classification are considered to be potentially inadequately protected by the current sound worth and debt service capacity of the borrower or of any pledged collateral. These credit obligations, even if apparently protected by collateral value, have shown defined weaknesses related to adverse financial, managerial, economic, market or political conditions which may jeopardize repayment of principal and interest. Furthermore, there is the possibility that some future loss could be sustained by the Company if such weaknesses are not corrected. For loans that are classified as impaired, management evaluates these credits in accordance with the provision of. ASC 310‑10, “Receivables,” and, if deemed necessary, a specific reserve is allocated to the credit. The specific reserve allocated under ASC 310‑10, is based on (i) the present value of expected future cash flows discounted at the loan’s effective interest rate; (ii) the loan’s observable market price; or (iii) the fair value of the collateral if the loan is collateral dependent. Substantially all of the Company’s loans evaluated as impaired under ASC 310‑10 are measured using the fair value of collateral method. In limited cases, the Company may use other methods to determine the specific reserve of a loan under ASC 310‑10 if such loan is not collateral dependent. The allowance based on historical loss experience on the Company’s remaining loan portfolio, which includes the “Special Review Credits,” “Watch List—Pass Credits,” and “Watch List—Substandard Credits” is determined by segregating the remaining loan portfolio into certain categories such as commercial loans, installment loans, international loans, loan concentrations and overdrafts. Installment loans are then further segregated by number of days past due. A historical loss percentage, adjusted for (i) management’s evaluation of changes in lending policies and procedures, (ii) current economic conditions in the market area served by the Company, (iii) other risk factors, (iv) the effectiveness of the internal loan review function, (v) changes in loan portfolios, and (vi) the composition and concentration of credit volume is applied to each category. Each category is then added together to determine the allowance allocated under ASC 450‑20. A summary of the loan portfolio by credit quality indicator by loan class is as follows: December 31, 2016 Special Watch Watch List— Watch List— Pass Review List—Pass Substandard Impaired (Dollars in Thousands) Domestic Commercial $ $ $ $ $ Commercial real estate: other construction & land development — Commercial real estate: farmland & commercial Commercial real estate: multifamily — — — Residential: first lien — Residential: junior lien — — Consumer — — — Foreign — — — Total $ $ $ $ $ December 31, 2015 Special Watch Watch List— Watch List— Pass Review List—Pass Substandard Impaired (Dollars in Thousands) Domestic Commercial $ $ $ $ $ Commercial real estate: other construction & land development Commercial real estate: farmland & commercial Commercial real estate: multifamily — — Residential: first lien — — Residential: junior lien — — Consumer — — Foreign — — — Total $ $ $ $ $ The increase in Special Review credits for December 31, 2016 compared to December 31, 2015 can be attributed to the re-classification of a commercial loan relationship secured mainly by transportation equipment used in the shipping industry to the Pass category. The decrease in Watch-List Pass credits can be attributed to the re-classification of a commercial loan relationship secured mainly by assets, including contract rights of the borrower to the Pass category. Additionally impacting the Watch-List Pass credits in the real estate farmland and commercial category is a reclassification of a relationship secured mainly by warehouses from the Pass category. Also impacting the Watch-List Pass and Watch-List Substandard category at December 31, 2016 is the reclassification of a relationship secured by all assets, equipment, and accounts receivable from Watch-List Substandard to the Pass category. The decrease in Watch-List Impaired loans can be attributed to the charge-down of the loan relationship that is mainly secured by multiple pieces of transportation equipment previously discussed.

Bank Premises and Equipment

Bank Premises and Equipment	12 Months Ended
	Dec. 31, 2016
Bank Premises and Equipment
Bank Premises and Equipment	(5) Bank Premises and Equipment A summary of bank premises and equipment, by asset classification, at December 31, 2016 and 2015 were as follows: Estimated useful lives 2016 2015 (Dollars in Thousands) Bank buildings and improvements 5 - 40 years $ $ Furniture, equipment and vehicles 1 - 20 years Land Real estate held for future expansion: Land, building, furniture, fixture and equipment 7 - 27 years — — Less: accumulated depreciation Bank premises and equipment, net $ $

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	12 Months Ended
	Dec. 31, 2016
Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets	(6) Goodwill and Other Intangible Assets The majority of the Company’s identified intangibles are in the form of amortizable core deposit premium. A small portion of the fully amortized identified intangibles represent identified intangibles in the acquisition of the rights to the insurance agency contracts of InsCorp, Inc., acquired in 2008. Information on the Company’s identified intangible assets follows: Carrying Accumulated Amount Amortization Net (Dollars in Thousands) December 31, 2016: Core deposit premium $ $ $ Identified intangible (contract rights) — Total identified intangibles $ $ $ December 31, 2015: Core deposit premium $ $ $ Identified intangible (contract rights) — Total identified intangibles $ $ $ Amortization expense of intangible assets for the years ended December 31, 2016, 2015 and 2014, was $128,000, $644,000 and $2,389,000, respectively. Estimated amortization expense for each of the five succeeding fiscal years, and thereafter, is as follows: Fiscal year ending December 31: Total (in thousands) 2017 2018 — 2019 — 2020 — 2021 — Thereafter Total $ There were no changes in the carrying amount of goodwill for the years ended December 31, 2016 and 2015.

Deposits

Deposits	12 Months Ended
	Dec. 31, 2016
Deposits.
Deposits	(7) Deposits Deposits as of December 31, 2016 and 2015 and related interest expense for the years ended December 31, 2016, 2015 and 2014 were as follows: 2016 2015 (Dollars in Thousands) Deposits: Demand - non-interest bearing Domestic $ $ Foreign Total demand non-interest bearing Savings and interest bearing demand Domestic Foreign Total savings and interest bearing demand Time, certificates of deposit $100,000 or more Domestic Foreign Less than $100,000 Domestic Foreign Total time, certificates of deposit Total deposits $ $ 2016 2015 2014 (Dollars in Thousands) Interest expense: Savings and interest bearing demand Domestic $ $ $ Foreign Total savings and interest bearing demand Time, certificates of deposit $100,000 or more Domestic Foreign Less than $100,000 Domestic Foreign Total time, certificates of deposit Total interest expense on deposits $ $ $ Scheduled maturities of time deposits as of December 31, 2016 were as follows: Total (in thousands) 2017 $ 2018 2019 2020 2021 Thereafter Total $ Scheduled maturities of time deposits in amounts of $100,000 or more at December 31, 2016, were as follows: Total (in thousands) Due within 3 months or less $ Due after 3 months and within 6 months Due after 6 months and within 12 months Due after 12 months $ Time deposits that meet or exceed the FDIC insurance limit of $250,000 at December 31, 2016 and December 31, 2015 were $1,005,000 and $1,021,000, respectively.

Securities Sold Under Repurchas

Securities Sold Under Repurchase Agreements	12 Months Ended
	Dec. 31, 2016
Securities Sold Under Repurchase Agreements
Securities Sold Under Repurchase Agreements	(8) Securities Sold Under Repurchase Agreements The Company’s bank subsidiaries have entered into repurchase agreements with an investment banking firm and individual customers of the bank subsidiaries. The purchasers have agreed to resell to the bank subsidiaries identical securities upon the maturities of the agreements. Securities sold under repurchase agreements were mortgage‑backed book entry securities and averaged $759,458,000 and $872,611,000 during 2016 and 2015, respectively, and the maximum amount outstanding at any month end during 2016 and 2015 was $819,155,000 and $907,211,000 respectively. Further information related to repurchase agreements at December 31, 2016 and 2015 is set forth in the following table: Collateral Securities Repurchase Borrowing Book Value of Fair Value of Balance of Weighted Average Securities Sold Securities Sold Liability Interest Rate (Dollars in Thousands) December 31, 2016 term: Overnight agreements $ $ $ % 1 to 29 days 30 to 90 days Over 90 days Total $ $ $ % December 31, 2015 term: Overnight agreements $ $ $ % 1 to 29 days 30 to 90 days Over 90 days Total $ $ $ % The book value and fair value of securities sold includes the entire book value and fair value of securities partially or fully pledged under repurchase agreements.

Other Borrowed Funds

Other Borrowed Funds	12 Months Ended
	Dec. 31, 2016
Other Borrowed Funds
Other Borrowed Funds	(9) Other Borrowed Funds Other borrowed funds include Federal Home Loan Bank borrowings, which are short and long‑term fixed borrowings issued by the Federal Home Loan Bank of Dallas at the market price offered at the time of funding. These borrowings are secured by mortgage‑backed investment securities and a portion of the Company’s loan portfolio. The increase in other borrowed funds is a result of purchases of available‑for‑sale securities. Further information regarding the Company’s other borrowed funds at December 31, 2016 and 2015 is set forth in the following table: December 31, 2016 2015 (Dollars in Thousands) Federal Home Loan Bank advances—short-term Balance at year end $ $ Rate on balance outstanding at year end % % Average daily balance $ $ Average rate % % Maximum amount outstanding at any month end $ $ Federal Home Loan Bank advances—long-term (1) Balance at year end $ $ Rate on balance outstanding at year end % % Average daily balance $ $ Average rate % % Maximum amount outstanding at any month end $ $ (1) Long-term advances matured in January 2017.

Junior Subordinated Interest De

Junior Subordinated Interest Deferrable Debentures	12 Months Ended
	Dec. 31, 2016
Junior Subordinated Interest Deferrable Debentures
Junior Subordinated Interest Deferrable Debentures	(10) Junior Subordinated Deferrable Interest Debentures The Company has formed six statutory business trusts under the laws of the State of Delaware, for the purpose of issuing trust preferred securities. The statutory business trusts formed by the Company (the “Trusts”) have each issued Capital and Common Securities and invested the proceeds thereof in an equivalent amount of junior subordinated debentures (the “Debentures”) issued by the Company. As of December 31, 2016 and December 31, 2015, the principal amount of debentures outstanding totaled $160,416,000 and $161,416,000, respectively. On July 29, 2015, the Company bought back a portion of the Capital Securities of IB Capital Trusts X and XI from the holder of the securities for a price that reflected an approximate 24.5% discount from the redemption prices of the securities. The Company thereby retired $13,000,000 of the total $34,021,000 of related Junior Subordinated Deferrable Interest Debentures related to IB Capital Trust X and $1,000,000 of the total $27,990,000 of related Junior Subordinated Deferrable Interest Debentures related to IB Capital Trust XI. On November 1, 2016, the Company bought back a portion of the Capital Securities of IB Capital Trust XI from the holder of the securities for a price that reflected an approximate 24% discount from the redemption price of the securities. The Company thereby retired $1,000,000 of the total $26,990,000 of related Junior Subordinated Deferrable Interest Debentures related to IB Capital Trust XI. The discounts recorded in connection with the repurchases of the outstanding Capital Securities are included in other income on the consolidated financial statements. The Debentures are subordinated and junior in right of payment to all present and future senior indebtedness (as defined in the respective indentures) of the Company, and are pari passu with one another. The interest rate payable on, and the payment terms of the Debentures are the same as the distribution rate and payment terms of the respective issues of Capital and Common Securities issued by the Trusts. The Company has fully and unconditionally guaranteed the obligations of each of the Trusts with respect to the Capital and Common Securities. The Company has the right, unless an Event of Default (as defined in the Indentures) has occurred and is continuing, to defer payment of interest on the Debentures for up to twenty consecutive quarterly periods on Trusts VI, VIII, IX, X, XI and XII. If interest payments on any of the Debentures are deferred, distributions on both the Capital and Common Securities related to that Debenture would also be deferred. The redemption prior to maturity of any of the Debentures may require the prior approval of the Federal Reserve and/or other regulatory bodies. For financial reporting purposes, the Trusts are treated as investments of the Company and not consolidated in the consolidated financial statements. Although the Capital Securities issued by each of the Trusts are not included as a component of shareholders’ equity on the consolidated statement of condition, the Capital Securities are treated as capital for regulatory purposes. Specifically, under applicable regulatory guidelines, the Capital Securities issued by the Trusts qualify as Tier 1 capital up to a maximum of 25% of Tier 1 capital on an aggregate basis. Any amount that exceeds the 25% threshold would qualify as Tier 2 capital. At December 31, 2016 and December 31, 2015, the total $160,416,000 and $161,416,000, respectively, of the Capital Securities outstanding qualified as Tier 1 capital. The following table illustrates key information about each of the Debentures and their interest rates at December 31, 2016: Junior Subordinated Deferrable Optional Interest Repricing Interest Interest Redemption Debentures Frequency Rate Rate Index(1) Maturity Date Date(1) (Dollars in Thousands) Trust VI $ Quarterly % LIBOR + November 2032 February 2008 Trust VIII Quarterly % LIBOR + October 2033 October 2008 Trust IX Quarterly % LIBOR + October 2036 October 2011 Trust X Quarterly % LIBOR + February 2037 February 2012 Trust XI Quarterly % LIBOR + July 2037 July 2012 Trust XII Quarterly % LIBOR + September 2037 September 2012 $ (1) The Capital Securities may be redeemed in whole or in part on any interest payment date after the Optional Redemption Date.

Earnings per Share ("EPS")

Earnings per Share ("EPS")	12 Months Ended
	Dec. 31, 2016
Earnings per Share ("EPS")
Earnings per Share ("EPS")	(11) Earnings per Share (“EPS”) Basic EPS is calculated by dividing net income by the weighted average number of common shares outstanding. The computation of diluted EPS assumes the issuance of common shares for all dilutive potential common shares outstanding during the reporting period. The calculation of the basic EPS and the diluted EPS for the years ended December 31, 2016, 2015, and 2014 is set forth in the following table: Net Income Shares Per Share (Numerator) (Denominator) Amount (Dollars in Thousands, Except Per Share Amounts) December 31, 2016: Basic EPS Net income available to common shareholders $ $ Potential dilutive common shares and warrants — Diluted EPS $ $ December 31, 2015: Basic EPS Net income available to common shareholders $ $ Potential dilutive common shares and warrants — Diluted EPS $ $ December 31, 2014: Basic EPS Net income available to common shareholders $ $ Potential dilutive common shares — Diluted EPS $ $

Employees' Profit Sharing Plan

Employees' Profit Sharing Plan	12 Months Ended
	Dec. 31, 2016
Employees' Profit Sharing Plan
Employees' Profit Sharing Plan	(12) Employees’ Profit Sharing Plan The Company has a deferred profit sharing plan for full‑time employees with a minimum of one year of continuous employment. The Company’s annual contribution to the plan is based on a percentage, as determined by the Board of Directors, of income before income taxes, as defined, for the year. Allocation of the contribution among officers and employees’ accounts is based on length of service and amount of salary earned. Profit sharing costs of $3,650,000 $3,525,000 and $3,510,000 were charged to income for the years ended December 31, 2016, 2015, and 2014, respectively.

International Operations

International Operations	12 Months Ended
	Dec. 31, 2016
International Operations
International Operations	(13) International Operations The Company provides international banking services for its customers through its bank subsidiaries. Neither the Company nor its bank subsidiaries have facilities located outside the United States. International operations are distinguished from domestic operations based upon the domicile of the customer. Because the resources employed by the Company are common to both international and domestic operations, it is not practical to determine net income generated exclusively from international activities. A summary of assets attributable to international operations at December 31, 2016 and 2015 are as follows: 2016 2015 (Dollars in Thousands) Loans: Commercial $ $ Others Less allowance for probable loan losses Net loans $ $ Accrued interest receivable $ $ At December 31, 2016, the Company had $93,154,000 in outstanding standby and commercial letters of credit to facilitate trade activities. Revenues directly attributable to international operations were approximately $5,495,000, $6,113,000 and $6,034,000 for the years ended December 31, 2016, 2015 and 2014, respectively.

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2016
Income Taxes
Income Taxes	(14) Income Taxes The Company files a consolidated U.S. Federal and State income tax return. The current and deferred portions of net income tax expense included in the consolidated statements of income are presented below for the years ended December 31: 2016 2015 2014 (Dollars in Thousands) Current U.S. $ $ $ State Foreign — Total current taxes Deferred U.S. State Total deferred taxes Total income taxes $ $ $ Total income tax expense differs from the amount computed by applying the U.S. Federal income tax rate of 35% for 2016, 2015 and 2014 to income before income taxes. The reasons for the differences for the years ended December 31 are as follows: 2016 2015 2014 (Dollars in Thousands) Computed expected tax expense $ $ $ Change in taxes resulting from: Tax-exempt interest income State tax, net of federal income taxes and tax credit Other investment income Other Actual tax expense $ $ $ The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2016 and 2015 are reflected below: 2016 2015 (Dollars in Thousands) Deferred tax assets: Loans receivable, principally due to the allowance for probable loan losses $ $ Other real estate owned Impairment charges on available-for-sale securities Accrued expenses Net unrealized losses on available for sale investment securities — Other Total deferred tax assets Deferred tax liabilities: Bank premises and equipment, principally due to differences on depreciation Net unrealized gains on available for sale investment securities — Identified intangible assets and goodwill Other Total deferred tax liabilities Net deferred tax liability $ $ The net deferred tax liability of $1,625,000 at December 31, 2016 and $10,285,000 at December 31, 2015 is included in other liabilities in the consolidated statements of condition.

Stock Options

Stock Options	12 Months Ended
	Dec. 31, 2016
Stock Options
Stock Options	(15) Stock Options On April 5, 2012, the Board of Directors adopted the 2012 International Bancshares Corporation Stock Option Plan (the “2012 Plan”). There are 800,000 shares available for stock option grants under the 2012 Plan. Under the 2012 Plan, both qualified incentive stock options (“ISOs”) and non‑qualified stock options (“NQSOs”) may be granted. Options granted may be exercisable for a period of up to 10 years from the date of grant, excluding ISOs granted to 10% shareholders, which may be exercisable for a period of up to only five years. As of December 31, 2016, 198,675 shares were available for future grants under the 2012 Plan. The fair value of each option award granted under the plan is estimated on the date of grant using a Black‑Scholes‑Merton option valuation model that uses the assumptions noted in the following table. Expected volatility is based on the historical volatility of the price of the Company’s stock. The Company uses historical data to estimate the expected dividend yield and employee termination rates within the valuation model. The expected term of options is derived from historical exercise behavior. The risk‑free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. 2016 2015 Expected Life (Years) Dividend yield % % Interest rate % % Volatility % % A summary of option activity under the stock option plans for the twelve months ended December 31, 2016 is as follows: Weighted Weighted average average remaining Aggregate Number of exercise contractual intrinsic options price term (years) value ($) (in Thousands) Options outstanding at December 31, 2015 $ Plus: Options granted Less: Options exercised Options expired Options forfeited Options outstanding at December 31, 2016 $ Options fully vested and exercisable at December 31, 2016 $ $ Stock‑based compensation expense included in the consolidated statements of income for the years ended December 31, 2016, 2015 and 2014 was approximately $1,082,000, $1,172,000 and $1,058,000, respectively. As of December 31, 2016, there was approximately $2,322,000 of total unrecognized stock‑based compensation cost related to non‑vested options granted under the Company plans that will be recognized over a weighted average period of 1.7 years. Other information pertaining to option activity during the twelve month period ending December 31, 2016, 2015 and 2014 is as follows: Twelve Months Ended December 31, 2016 2015 2014 Weighted average grant date fair value of stock options granted $ $ $ Total fair value of stock options vested $ $ $ Total intrinsic value of stock options exercised $ $ $

Long Term Restricted Stock Unit

Long Term Restricted Stock Units	12 Months Ended
	Dec. 31, 2016
Long Term Restricted Stock Units
Long Term Restricted Stock Units	(16) Long Term Restricted Stock Units As a participant in the Troubled Asset Relief Program Capital Purchase Program (the “CPP”) until November 28, 2012, the Company was subject to certain compensation restrictions, which included a prohibition on the payment or accrual of any bonuses (including equity‑based incentive compensation) to certain officers and employees except for awards of CPP‑compliant long‑ term restricted stock and stock units. On December 18, 2009, the Company’s board of directors (the “Board”) adopted the 2009 International Bancshares Corporation Long‑Term Restricted Stock Unit Plan (the “Plan”) to give the Company additional flexibility in the compensation of its officers, employees, consultants and advisors in compliance with all applicable laws and restrictions. The Plan authorizes the Company to issue Restricted Stock Units (“RSUs”) to officers, employees, consultants and advisors of the Company and its subsidiaries. The Plan provides that RSUs shall be issued by a committee of the Board appointed by the Board from time to time consisting of at least two (2) members of the Board, each of whom is both a non‑employee director and an outside director. On December 18, 2009, the Board adopted resolutions creating the Long‑Term Restricted Stock Unit Plan Committee to administer the Plan. RSUs issued under the Plan are not equity and are payable only in cash. The Plan provides for both the issuance of CPP‑compliant long‑term RSUs as well as RSUs that are not CPP‑compliant. Dennis E. Nixon, the Company’s President, Chairman of the Board and a director of the Company, was awarded CPP‑compliant RSUs granted as of December 19, 2012 of $425,000 for his performance in 2012. In order to meet the requirements of a CPP‑compliant RSU, Mr. Nixon’s 2012 RSUs vested and were paid in December 2014 in the cash amount of $572,746.

Commitments and Contingent Liab

Commitments and Contingent Liabilities and Other Tax Matters	12 Months Ended
	Dec. 31, 2016
Commitments, Contingent Liabilities and Other Matters
Commitments, Contingent Liabilities and Other Matters	(17) Commitments, Contingent Liabilities and Other Matters The Company leases portions of its banking premises and equipment under operating leases. Total rental expense for the years ended December 31, 2016, 2015 and 2014 were approximately $5,870,000, $6,200,000 and $7,200,000, respectively. Future minimum lease payments due under non‑cancellable operating leases at December 31, 2016 were as follows: Fiscal year ending: Total (in thousands) 2017 $ 2018 2019 2020 2021 Thereafter Total $ It is expected that certain leases will be renewed, as these leases expire. Aggregate future minimum rentals to be received under non‑cancellable sub‑leases greater than one year at December 31, 2016 were $101,562,000. Cash of approximately $111,353,000 and $104,684,000 at December 31, 2016 and 2015, respectively, was maintained to satisfy regulatory reserve requirements. The Company is involved in various legal proceedings that are in various stages of litigation. The Company has determined, based on discussions with its counsel that any material loss in such actions, individually or in the aggregate, is remote or the damages sought, even if fully recovered, would not be considered material to the consolidated statements of condition and related statements of income, comprehensive income, shareholders’ equity and cash flows of the Company. However, many of these matters are in various stages of proceedings and further developments could cause management to revise its assessment of these matters.

Transactions with Related Parti

Transactions with Related Parties	12 Months Ended
	Dec. 31, 2016
Transactions with Related Parties
Transactions with Related Parties	(18) Transactions with Related Parties In the ordinary course of business, the subsidiaries of the Company make loans to directors and executive officers of the Corporation, including their affiliates, families and companies in which they are principal owners. In the opinion of management, these loans are made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with other persons and do not involve more than normal risk of collectability or present other unfavorable features. The aggregate amounts receivable from such related parties amounted to approximately $26,662,000 and $31,975,000 at December 31, 2016 and 2015, respectively.

Financial Instruments with Off-

Financial Instruments with Off-Statement of Condition Risk and Concentrations of Credit Risk	12 Months Ended
	Dec. 31, 2016
Financial Instruments with Off-Statement of Condition Risk and Concentrations of Credit Risk
Financial Instruments with Off-Statement of Condition Risk and Concentrations of Credit Risk	(19) Financial Instruments with Off‑Statement of Condition Risk and Concentrations of Credit Risk In the normal course of business, the bank subsidiaries are party to financial instruments with off‑statement of condition risk to meet the financing needs of their customers. These financial instruments include commitments to their customers. These financial instruments involve, to varying degrees, elements of credit risk in excess of the amounts recognized in the consolidated statement of condition. The contract amounts of these instruments reflect the extent of involvement the bank subsidiaries have in particular classes of financial instruments. At December 31, 2016, the following financial amounts of instruments, whose contract amounts represent credit risks, were outstanding: Commitments to extend credit $ Credit card lines Standby letters of credit Commercial letters of credit The Company enters into a standby letter of credit to guarantee performance of a customer to a third party. These guarantees are primarily issued to support public and private borrowing arrangements. The credit risk involved is represented by the contractual amounts of those instruments. Under the standby letters of credit, the Company is required to make payments to the beneficiary of the letters of credit upon request by the beneficiary so long as all performance criteria have been met. At December 31, 2016, the maximum potential amount of future payments is approximately $88,504,000. At December 31, 2016, the fair value of these guarantees is not significant. Unsecured letters of credit totaled approximately $40,738,000 and $37,454,000 at December 31, 2016 and 2015, respectively. The Company enters into commercial letters of credit on behalf of its customers which authorize a third party to draw drafts on the Company up to a stipulated amount and with specific terms and conditions. A commercial letter of credit is a conditional commitment on the part of the Company to provide payment on drafts drawn in accordance with the terms of the commercial letter of credit. The bank subsidiaries’ exposure to credit loss in the event of nonperformance by the other party to the above financial instruments is represented by the contractual amounts of the instruments. The bank subsidiaries use the same credit policies in making commitments and conditional obligations as they do for on‑statement of condition instruments. The bank subsidiaries control the credit risk of these transactions through credit approvals, limits and monitoring procedures. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates normally less than one year or other termination clauses and may require the payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The bank subsidiaries evaluate each customer’s credit‑worthiness on a case‑by‑case basis. The amount of collateral obtained, if deemed necessary by the subsidiary banks upon extension of credit, is based on management’s credit evaluation of the customer. Collateral held varies, but may include residential and commercial real estate, bank certificates of deposit, accounts receivable and inventory. The bank subsidiaries make commercial, real estate and consumer loans to customers principally located in South, Central and Southeast Texas and the State of Oklahoma. Although the loan portfolio is diversified, a substantial portion of its debtors’ ability to honor their contracts is dependent upon the economic conditions in these areas, especially in the real estate and commercial business sectors.

Capital Ratios

Capital Ratios	12 Months Ended
	Dec. 31, 2016
Capital Requirements
Capital Ratios	(20) Capital Requirements On December 23, 2008, as part of the Troubled Asset Relief Program Capital Purchase Program (the “TARP Capital Purchase Program”) of the United States Department of the Treasury (“Treasury”), the Company issued to the Treasury a warrant to purchase 1,326,238 shares of the Company’s common stock at a price per share of $24.43 and with a term of ten years (the “Warrant”). On June 12, 2013, the U.S. Treasury sold the Warrant to a third party. As of February 20, 2016, the Warrant is still outstanding. Adjustments to the $24.43 per share Exercise Price of the Warrant will be made if the Company pays cash dividends in excess of 33 cents per semi-annual period or makes certain other shareholder distributions before the Warrants expires on December 23, 2018. Bank regulatory agencies limit the amount of dividends, which the bank subsidiaries can pay the Corporation, through IBC Subsidiary Corporation, without obtaining prior approval from such agencies. At December 31, 2016, the subsidiary banks could pay dividends of up to $819,500,000 to the Corporation without prior regulatory approval and without adversely affecting their “well‑capitalized” status under regulatory capital rules in effect at December 31, 2016. In addition to legal requirements, regulatory authorities also consider the adequacy of the bank subsidiaries’ total capital in relation to their deposits and other factors. These capital adequacy considerations also limit amounts available for payment of dividends. The Company historically has not allowed any subsidiary bank to pay dividends in such a manner as to impair its capital adequacy. The Company and the bank subsidiaries are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company must meet specific capital guidelines that involve quantitative measures of the Company’s assets, liabilities, and certain off‑statement of condition items as calculated under regulatory accounting practices. The Company’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Current quantitative measures established by regulation to ensure capital adequacy require the Company to maintain minimum amounts and ratios (set forth in the table on the following page) of Total and Tier 1 capital to risk‑weighted assets and of Tier 1 capital to average assets. Management believes, as of December 31, 2016, that the Company and each of the bank subsidiaries met all capital adequacy requirements to which they are subject. In July 2013, the Federal Deposit Insurance Corporation (“FDIC”) and other regulatory bodies established a new, comprehensive capital framework for U.S. banking organizations, consisting of minimum requirements that increase both the quantity and quality of capital held by banking organizations. The final rules are a result of the implementation of the BASEL III capital reforms and various Dodd-Frank Act related capital provisions. Consistent with the Basel international framework, the rules include a new minimum ratio of Common Equity Tier 1 (“CET1”) to risk-weighted assets of 4.5% and a CET1 capital conservation buffer of 2.5% of risk-weighted assets. The capital conservation buffer began phasing-in on January 1, 2016 at .625% and will increase each year until January 1, 2019, when the Company will be required to have a 2.5% capital conservation buffer, effectively resulting in a minimum ratio of CET1 capital to risk-weighted assets of at least 7% upon full implementation. The rules also raised the minimum ratio of Tier 1 capital to risk-weighted assets from 4% to 6% and include a minimum leverage ratio of 4% for all banking organizations. Regarding the quality of capital, the new rules emphasize CET1 capital and implements strict eligibility criteria for regulatory capital instruments. The new rules also improve the methodology for calculating risk-weighted assets to enhance risk sensitivity. The new rules are subject to a four year phase in period for mandatory compliance and the Company was required to begin to phase in the new rules beginning on January 1, 2015. Management believes, as of December 31, 2016, that the Company and each of the bank subsidiaries will meet all capital adequacy requirements once the capital conservation is fully phased-in. The CET1 (beginning in 2015), Tier 1 and Total capital ratios are calculated by dividing the respective capital amounts by risk-weighted assets. Risk-weighted assets are calculated based on regulatory requirements and include total assets, excluding goodwill and other intangible assets, allocated by risk weight category, and certain off-balance-sheet items, among other things. The leverage ratio is calculated by dividing Tier 1 capital by adjusted quarterly average total assets, which exclude goodwill and other intangible assets, among other things. The aforementioned capital conservation buffer is designed to absorb losses during periods of economic stress. Banking institutions with a ratio of CET1 capital to risk-weighted assets above the minimum but below the conservation buffer will face constraints on dividends, equity repurchases and compensation based on the amount of the shortfall. As of December 31, 2016, capital levels at the Company exceed all capital adequacy requirements under the Basel III Capital Rules as currently applicable to the Company. Based on the ratios presented below, capital levels as of December 31, 2016 at the Company exceed the minimum levels necessary to be considered “well capitalized.” As of December 31, 2016, the most recent notification from the Federal Deposit Insurance Corporation categorized all the bank subsidiaries as well‑capitalized under the regulatory framework for prompt corrective action. To be categorized as “well‑capitalized,” the Company and the bank subsidiaries must maintain minimum Total risk‑based, Tier 1 risk based, and Tier 1 leverage ratios as set forth in the table. There are no conditions or events since that notification that management believes have changed the categorization of the Company or any of the bank subsidiaries as well‑capitalized. The Company’s and the bank subsidiaries’ actual capital amounts and ratios for 2016 under current guidelines are presented in the following table: For Capital Adequacy To Be Well-Capitalized Purposes Under Prompt Corrective Actual Phase In Schedule Action Provisions Amount Ratio Amount Ratio Amount Ratio (greater than (greater than (greater than (greater than or equal to) or equal to) or equal to) or equal to) (Dollars in Thousands) As of December 31, 2016: Common Equity Tier 1 (to Risk Weighted Assets): Consolidated $ % $ % N/A N/A International Bank of Commerce, Laredo $ % International Bank of Commerce, Brownsville International Bank of Commerce, Zapata Commerce Bank Total Capital (to Risk Weighted Assets): Consolidated $ % $ % N/A N/A International Bank of Commerce, Laredo $ % International Bank of Commerce, Brownsville International Bank of Commerce, Zapata Commerce Bank Tier 1 Capital (to Risk Weighted Assets): Consolidated $ % $ % N/A N/A International Bank of Commerce, Laredo $ % International Bank of Commerce, Brownsville International Bank of Commerce, Zapata Commerce Bank Tier 1 Capital (to Average Assets): Consolidated $ % $ % $ N/A N/A International Bank of Commerce, Laredo % International Bank of Commerce, Brownsville International Bank of Commerce, Zapata Commerce Bank The Company’s and the bank subsidiaries’ actual capital amounts and ratios for 2015 are also presented in the following table: To Be Well-Capitalized For Capital Adequacy Under Prompt Corrective Actual Purposes Action Provisions Amount Ratio Amount Ratio Amount Ratio (greater than (greater than (greater than (greater than or equal to) or equal to) or equal to) or equal to) (Dollars in Thousands) As of December 31, 2015: Common Equity Tier 1 (to Risk Weighted Assets): Consolidated $ % $ % N/A N/A International Bank of Commerce, Laredo $ % International Bank of Commerce, Brownsville International Bank of Commerce, Zapata Commerce Bank Total Capital (to Risk Weighted Assets): Consolidated $ % $ % N/A N/A International Bank of Commerce, Laredo $ % International Bank of Commerce, Brownsville International Bank of Commerce, Zapata Commerce Bank Tier 1 Capital (to Risk Weighted Assets): Consolidated $ % $ % N/A N/A International Bank of Commerce, Laredo $ % International Bank of Commerce, Brownsville International Bank of Commerce, Zapata Commerce Bank Tier 1 Capital (to Average Assets): Consolidated $ % $ % $ N/A N/A International Bank of Commerce, Laredo % International Bank of Commerce, Brownsville International Bank of Commerce, Zapata Commerce Bank

Fair Value Measurements

Fair Value Measurements	12 Months Ended
	Dec. 31, 2016
Fair Value Measurements
Fair Value Measurements	(21) Fair Value ASC Topic 820, “Fair Value Measurements and Disclosures” (“ASC 820”) defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements. ASC 820 applies to all financial instruments that are being measured and reported on a fair value basis. ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date; it also establishes a fair value hierarchy that prioritizes the inputs used in valuation methodologies into the following three levels: · Level 1 Inputs—Unadjusted quoted prices in active markets for identical assets or liabilities. · Level 2 Inputs—Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. · Level 3 Inputs—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or other valuation techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy is set forth below. The following table represents financial instruments reported on the consolidated statements of condition at their fair value as of December 31, 2016 by level within the fair value measurement hierarchy. Fair Value Measurements at Reporting Date Using (in Thousands) Quoted Prices in Active Significant Assets/Liabilities Markets for Other Significant Measured at Identical Observable Unobservable Fair Value Assets Inputs Inputs December 31, 2016 (Level 1) (Level 2) (Level 3) Measured on a recurring basis: Assets: Available for sale securities Residential mortgage-backed securities $ $ — $ $ States and political subdivisions — — Equity securities — — $ $ $ $ The following table represents financial instruments reported on the consolidated balance sheets at their fair value as of December 31, 2015 by level within the fair value measurement hierarchy. Fair Value Measurements at Reporting Date Using (in Thousands) Quoted Prices in Active Significant Assets/Liabilities Markets for Other Significant Measured at Identical Observable Unobservable Fair Value Assets Inputs Inputs December 31, 2015 (Level 1) (Level 2) (Level 3) Measured on a recurring basis: Assets: Available for sale securities Residential mortgage - backed securities $ $ — $ $ States and political subdivisions — — Equity securities — — $ $ $ $ Investment securities available‑for‑sale are classified within level 2 and level 3 of the valuation hierarchy, with the exception of certain equity investments that are classified within level 1. For investments classified as level 2 in the fair value hierarchy, the Company obtains fair value measurements for investment securities from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things. Investment securities classified as level 3 are non‑agency mortgage‑backed securities. The non‑agency mortgage‑backed securities held by the Company are traded in inactive markets and markets that have experienced significant decreases in volume and level of activity, as evidenced by few recent transactions, a significant decline or absence of new issuances, price quotations that are not based on comparable securities transactions and wide bid‑ask spreads among other factors. As a result of the inability to use quoted market prices to determine fair value for these securities, the Company determined that fair value, as determined by level 3 inputs in the fair value hierarchy, is more appropriate for financial reporting and more consistent with the expected performance of the investments. For the investments classified within level 3 of the fair value hierarchy, the Company used a discounted cash flow model to determine fair value. Inputs in the model included both historical performance and expected future performance based on information currently available. Assumptions used in the discounted cash flow model as of December 31, 2016 and December 31, 2015 were applied separately to those portions of the bond where the underlying residential mortgage loans had been performing under original contract terms for at least the prior 24 months and those where the underlying residential mortgages had not been meeting the original contractual obligation for the same period. Unobservable inputs included in the model are estimates on future principal prepayment rates, and default and loss severity rates. For that portion of the bond where the underlying residential mortgage had been meeting the original contract terms for at least 24 months, the Company used the following estimates in the model: (i) a voluntary prepayment rate of 7%, (ii) a 1% default rate, (iii) a loss severity rate of 25%, and (iv) a discount rate of 13%. The assumptions used in the model for the rest of the bond included the following estimates: (i) a voluntary prepayment rate of 2%, (ii) a default rate of 4.5%, (iii) a loss severity rate that started at 60% for the first year (2012) then declines by 5% for the following five years (2013, 2014, 2015, 2016 and 2017) and remains at 25% thereafter (2018 and beyond), and (iv) a discount rate of 13%. The estimates used in the model to determine fair value are based on observable historical data of the underlying collateral. The model anticipates that the housing market will gradually improve and that the underlying collateral will eventually all perform in accordance with the original contract terms on the bond. Should the number of loans in the underlying collateral that default and go into foreclosure or the severity of the losses in the underlying collateral significantly change, the results of the model would be impacted. The Company will continue to evaluate the actual historical performance of the underlying collateral and will modify the assumptions used in the model as necessary. The following table presents a reconciliation of activity for such mortgage‑backed securities on a net basis (Dollars in Thousands): Balance at December 31, 2015 $ Principal paydowns Total unrealized gains (losses) included in: Other comprehensive loss Impairment realized in earnings Balance at December 31, 2016 $ Certain financial instruments are measured at fair value on a nonrecurring basis. They are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). The following table represents financial instruments measured at fair value on a non‑recurring basis as of and for the period ended December 31, 2016 by level within the fair value measurement hierarchy: Fair Value Measurements at Reporting Date Using (in thousands) Quoted Assets/Liabilities Prices in Measured at Active Significant Fair Value Markets for Other Significant Net Provision Year ended Identical Observable Unobservable (Credit) December 31, Assets Inputs Inputs During 2016 (Level 1) (Level 2) (Level 3) Period Measured on a non-recurring basis: Assets: Impaired loans $ $ — $ — $ $ Other real estate owned — — The following table represents financial instruments measured at fair value on a non‑recurring basis as of and for the year ended December 31, 2015 by level within the fair value measurement hierarchy: Fair Value Measurements at Reporting Date Using (in thousands) Quoted Assets/Liabilities Prices in Measured at Active Significant Fair Value Markets Other Significant Net (Credit) Year ended for Identical Observable Unobservable Provision December 31, Assets Inputs Inputs During 2015 (Level 1) (Level 2) (Level 3) Period Measured on a non-recurring basis: Assets: Impaired loans $ $ — $ — $ $ Other real estate owned — — The Company’s assets measured at fair value on a non-recurring basis are limited to impaired loans and other real estate owned. Impaired loans are classified within level 3 of the valuation hierarchy. The fair value of impaired loans is derived in accordance with FASB ASC 310, “Receivables”. Impaired loans are primarily comprised of collateral-dependent commercial loans. Understanding that as the primary sources of loan repayments decline, the secondary repayment source comes into play and correctly evaluating the fair value of that secondary source, the collateral, becomes even more important. Re-measurement of the impaired loan to fair value is done through a specific valuation allowance included in the allowance for probable loan losses. The fair value of impaired loans is based on the fair value of the collateral, as determined through either an appraisal or evaluation process. The basis for the Company’s appraisal and appraisal review process is based on regulatory guidelines and strives to comply with all regulatory appraisal laws, regulations and the Uniform Standards of Professional Appraisal Practice. All appraisals and evaluations are “as is” (the property’s highest and best use) valuations based on the current conditions of the property/project at that point in time. The determination of the fair value of the collateral is based on the net realizable value, which is the appraised value less any closing costs, when applicable. As of December 31, 2016, the Company had approximately $38,108,000 of impaired commercial collateral dependent loans, of which approximately $26,162,000 had an appraisal performed within the immediately preceding twelve months and of which approximately $6,836,000 had an evaluation performed within the immediately preceding twelve months. As of December 31, 2015, the Company had approximately $51,021,000 of impaired commercial collateral dependent loans, of which approximately $39,520,000 had an appraisal performed within the immediately preceding twelve months and of which approximately $2,958,000 had an evaluation performed within the immediately preceding twelve months. The determination to either seek an appraisal or to perform an evaluation begins in weekly credit quality meetings, where the committee analyzes the existing collateral values of the impaired loans and where obsolete appraisals are identified. In order to determine whether the Company would obtain a new appraisal or perform an internal evaluation to determine the fair value of the collateral, the credit committee reviews the existing appraisal to determine if the collateral value is reasonable in view of the current use of the collateral and the economic environment related to the collateral. If the analysis of the existing appraisal does not find that the collateral value is reasonable under the current circumstances, the Company would obtain a new appraisal on the collateral or perform an internal evaluation of the collateral. The ultimate decision to get a new appraisal rests with the independent credit administration group. A new appraisal is not required if an internal evaluation, as performed by in-house experts, is able to appropriately update the original appraisal assumptions to reflect current market conditions and provide an estimate of the collateral’s market value for impairment analysis. The internal evaluations must be in writing and contain sufficient information detailing the analysis, assumptions and conclusions and they must support performing an evaluation in lieu of ordering a new appraisal. Other real estate owned is comprised of real estate acquired by foreclosure and deeds in lieu of foreclosure. Other real estate owned is carried at the lower of the recorded investment in the property or its fair value less estimated costs to sell such property (as determined by independent appraisal) within level 3 of the fair value hierarchy. Prior to foreclosure, the value of the underlying loan is written down to the fair value of the real estate to be acquired by a charge to the allowance for probable loan losses, if necessary. The fair value is reviewed periodically and subsequent write downs are made accordingly through a charge to operations. Other real estate owned is included in other assets on the consolidated financial statements. For the twelve months ended December 31, 2016, December 31, 2015 and December 31, 2014, respectively the Company recorded approximately $381,000, $696,000 and $367,000 in charges to the allowance for probable loan losses in connection with loans transferred to other real estate owned. For the twelve months ended December 31, 2016, December 31, 2015 and December 31, 2014, respectively, the Company recorded approximately $2,351,000, $1,023,000 and $597,000 in adjustments to fair value in connection with other real estate owned. The fair value estimates, methods, and assumptions for the Company’s financial instruments at December 31, 2016 and December 31, 2015 are outlined below. Cash and Cash Equivalents For these short‑term instruments, the carrying amount is a reasonable estimate of fair value. Investment securities held‑to‑maturity The carrying amounts of investments held‑to‑maturity approximate fair value. Investment Securities For investment securities, which include U.S. Treasury securities, obligations of other U.S. government agencies, obligations of states and political subdivisions and mortgage pass through and related securities, fair values are from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things. See disclosures of fair value of investment securities in Note 2. Loans Fair values are estimated for portfolios of loans with similar financial characteristics. Loans are segregated by type such as commercial, real estate and consumer loans as outlined by regulatory reporting guidelines. Each category is segmented into fixed and variable interest rate terms and by performing and non‑performing categories. For variable rate performing loans, the carrying amount approximates the fair value. For fixed rate performing loans, except residential mortgage loans, the fair value is calculated by discounting scheduled cash flows through the estimated maturity using estimated market discount rates that reflect the credit and interest rate risk inherent in the loan. For performing residential mortgage loans, fair value is estimated by discounting contractual cash flows adjusted for prepayment estimates using discount rates based on secondary market sources or the primary origination market. Fixed rate performing loans are within Level 3 of the fair value hierarchy. At December 31, 2016, and December 31, 2015, the carrying amount of fixed rate performing loans was $1,411,272,000 and $1,383,836,000, respectively, and the estimated fair value was $1,375,807,000 and $1,362,248,000, respectively. Accrued Interest The carrying amounts of accrued interest approximate fair value. Deposits The fair value of deposits with no stated maturity, such as non‑interest bearing demand deposit accounts, savings accounts and interest bearing demand deposit accounts, was equal to the amount payable on demand as of December 31, 2016 and December 31, 2015. The fair value of time deposits is based on the discounted value of contractual cash flows. The discount rate is based on currently offered rates. Time deposits are within Level 3 of the fair value hierarchy. At December 31, 2016 and December 31, 2015, the carrying amount of time deposits was $2,248,310,000 and $2,366,413,000, respectively, and the estimated fair value was $2,247,648,000 and $2,365,390,000, respectively. Securities Sold Under Repurchase Agreements Securities sold under repurchase agreements include both short and long‑term maturities. Due to the contractual terms of the short‑term instruments, the carrying amounts approximated fair value at December 31, 2016 and December 31, 2015. The fair value of the long‑term instruments is based on established market spread using option adjusted spreads methodology. Long‑term repurchase agreements are within level 3 of the fair value hierarchy. At December 31, 2016 and December 31, 2015, respectively, the carrying amount of long‑term repurchase agreements was $300,000,000 and $560,000,000 and the estimated fair value was $289,324,000 and $527,198,600, respectively. Junior Subordinated Deferrable Interest Debentures The company currently has floating rate junior subordinated deferrable interest debentures outstanding. Due to the contractual terms of the floating rate junior subordinated deferrable interest debentures, the carrying amounts approximated fair value at December 31, 2016 and December 31, 2015. Other Borrowed Funds The company currently has short and long‑term borrowings issued from the Federal Home Loan Bank (“FHLB”). Due to the contractual terms of the short‑term borrowings, the carrying amounts approximated fair value at December 31, 2016 and December 31, 2015. The long-term borrowings outstanding at December 31, 2016 are variable rate borrowings and re-price on a monthly basis. Commitments to Extend Credit and Letters of Credit Commitments to extend credit and fund letters of credit are principally at current interest rates and therefore the carrying amount approximates fair value. Limitations Fair value estimates are made at a point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair value estimates are based on existing on‑and off‑statement of condition financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. Other significant assets and liabilities that are not considered financial assets or liabilities include the bank premises and equipment and core deposit value. In addition, the tax ramifications related to the effect of fair value estimates have not been considered in the above estimates.

International Bancshares Corpor

International Bancshares Corporation (Parent Company Only) Financial Information Statements of Condition	12 Months Ended
	Dec. 31, 2016
International Bancshares Corporation (Parent Company Only) Financial Information Statements of Condition
International Bancshares Corporation (Parent Company Only) Financial Information Statements of Condition	(22) International Bancshares Corporation (Parent Company Only) Financial Information Statements of Condition (Parent Company Only) December 31, 2016 and 2015 (Dollars in Thousands) 2016 2015 ASSETS Cash $ $ Other investments Notes receivable — Investment in subsidiaries Other assets Total assets $ $ LIABILITIES AND SHAREHOLDERS’ EQUITY Liabilities: Junior subordinated deferrable interest debentures $ $ Due to IBC Trading Other liabilities Total liabilities Shareholders’ equity: Common shares Surplus Retained earnings Accumulated other comprehensive (loss) income Less cost of shares in treasury Total shareholders’ equity Total liabilities and shareholders’ equity $ $

International Bancshares Corp33

International Bancshares Corporation (Parent Company Only) Financial Information Statements of Income	12 Months Ended
	Dec. 31, 2016
International Bancshares Corporation (Parent Company Only) Financial Information Statements of Income
International Bancshares Corporation (Parent Company Only) Financial Information Statements of Income	(23) International Bancshares Corporation (Parent Company Only) Financial Information Statements of Income (Parent Company Only) Years ended December 31, 2016, 2015 and 2014 (Dollars in Thousands) 2016 2015 2014 Income: Dividends from subsidiaries $ $ $ Interest income on notes receivable Interest income on other investments Other Total income Expenses: Interest expense (Debentures) Other Total expenses Income before federal income taxes and equity in undistributed net income of subsidiaries Income tax expense Income before equity in undistributed net income of subsidiaries Equity in undistributed net income of subsidiaries Net income $ $ $

International Bancshares Corp34

International Bancshares Corporation (Parent Company Only) Financial Information Statements of Cash Flows	12 Months Ended
	Dec. 31, 2016
International Bancshares Corporation (Parent Company Only) Financial Information Statements of Cash Flows
International Bancshares Corporation (Parent Company Only) Financial Information Statements of Cash Flows	(24) International Bancshares Corporation (Parent Company Only) Financial Information Statements of Cash Flows (Parent Company Only) Years ended December 31, 2016, 2015 and 2014 (Dollars in Thousands) 2016 2015 2014 Operating activities: Net income $ $ $ Adjustments to reconcile net income to net cash provided by operating activities: Impairment charges on available for sale securities Stock compensation expense Increase (decrease) in other liabilities Equity in undistributed net income of subsidiaries Net cash provided by operating activities Investing activities: Principal collected on mortgage-backed securities Net decrease in notes receivable Increase in other assets and other investments Net cash used in investing activities Financing activities: Redemption of long-term debt Proceeds from stock transactions Payments of cash dividends - common Purchase of treasury stock Net cash used in financing activities Increase (decrease) in cash Cash at beginning of year Cash at end of year $ $ $

Summary of Significant Accoun35

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2016
Summary of Significant Accounting Policies
Consolidation and Basis of Presentation	Consolidation and Basis of Presentation The consolidated financial statements include the accounts of the Corporation and its wholly-owned bank subsidiaries, International Bank of Commerce, Laredo (“IBC”), Commerce Bank, International Bank of Commerce, Zapata, International Bank of Commerce, Brownsville, and the Corporation's wholly-owned non-bank subsidiaries, IBC Subsidiary Corporation, IBC Life Insurance Company, IBC Trading Company, Premier Tierra Holdings, Inc., IBC Charitable and Community Development Corporation, and IBC Capital Corporation. All significant inter-company balances and transactions have been eliminated in consolidation. The Company, through its subsidiaries, is primarily engaged in the business of banking, including the acceptance of checking and savings deposits and the making of commercial, real estate, personal, home improvement, automobile and other installment and term loans. The primary markets of the Company are South, Central, and Southeast Texas and the state of Oklahoma. Each bank subsidiary is very active in facilitating international trade along the United States border with Mexico and elsewhere. Although the Company’s loan portfolio is diversified, the ability of the Company’s debtors to honor their contracts is primarily dependent upon the economic conditions in the Company’s trade area. In addition, the investment portfolio is directly impacted by fluctuations in market interest rates. The Company and its bank subsidiaries are subject to the regulations of certain Federal agencies as well as the Texas Department of Banking and undergo periodic examinations by those regulatory authorities. Such agencies may require certain standards or impose certain limitations based on their judgments or changes in law and regulations. The Company owns one insurance‑related subsidiary, IBC Insurance Agency, Inc., a wholly owned subsidiary of IBC, the bank subsidiary. The insurance‑related subsidiary does not conduct underwriting activities. The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the dates of the statement of condition and income and expenses for the periods. Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to significant changes in the near‑term relate to the determination of the allowance for probable loan losses.
Subsequent Events	Subsequent Events The Company has evaluated all events or transactions that occurred through the date the Company issued these financial statements. During this period, the Company did not have any material recognizable or non‑recognizable subsequent events.
Investment Securities	Investment Securities The Company classifies debt and equity securities into one of these categories: held‑to‑maturity, available‑for‑sale, or trading. Such classifications are reassessed for appropriate classification at each reporting date. Securities that are intended and expected to be held until maturity are classified as “held‑to‑maturity” and are carried at amortized cost for financial statement reporting. Securities that are not positively expected to be held until maturity, but are intended to be held for an indefinite period of time are classified as “available‑for‑sale” or “trading” and are carried at their fair value. Unrealized holding gains and losses are included in net income for those securities classified as “trading”, while unrealized holding gains and losses related to those securities classified as “available‑for‑sale” are excluded from net income and reported net of tax as other comprehensive income and in shareholders’ equity as accumulated other comprehensive income until realized. The Company did not maintain any trading securities during the three year period ended December 31, 2016. Mortgage‑backed securities held at December 31, 2016 and 2015 represent participating interests in pools of long‑term first mortgage loans originated and serviced by the issuers of the securities. Mortgage‑backed securities are either issued or guaranteed by the U.S. government or its agencies including the Federal Home Loan Mortgage Corporation (“Freddie Mac”), the Federal National Mortgage Association (“Fannie Mae”), the Government National Mortgage Association (“Ginnie Mae”) or other non‑government entities. Investments in residential mortgage‑backed securities issued by Ginnie Mae are fully guaranteed by the U. S. government. Investments in residential mortgage‑backed securities issued by Freddie Mac and Fannie Mae are not fully guaranteed by the U.S. government, however, the Company believes that the quality of the bonds is similar to other AAA rated bonds with limited credit risk, particularly given the placement of Fannie Mae and Freddie Mac into conservatorship by the federal government in 2008 and because securities issued by others that are collateralized by residential mortgage‑backed securities issued by Fannie Mae or Freddie Mac are rated consistently as AAA rated securities. Market interest rate fluctuations can affect the prepayment speed of principal and the yield on the security. Premiums and discounts are amortized using the level yield or “interest method” over the terms of the securities. Declines in the fair value of held‑to‑maturity and available‑for sale‑securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses. In determining whether other‑than‑temporary impairment exists, management considers many factors, including (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near‑term prospects of the issuer, and (3) the intent of the Company to hold and the determination of whether the Company will more likely than not be required to sell the security prior to a recovery in fair value. If the Company determines that (1) it intends to sell the security or (2) it is more likely than not that it will be required to sell the security before it’s anticipated recovery, the other‑than‑temporary impairment that is recognized in earnings is equal to the difference between the fair value of the security and the Company’s amortized cost in the security. If the Company determines that it (1) does not intend to sell the security and (2) it will not be more likely than not required to sell the security before it’s anticipated recovery, the other‑than‑temporary impairment is segregated into its two components (1) the amount of impairment related to credit loss and (2) the amount of impairment related to other factors. The difference between the present value of the cash flows expected to be collected and the amortized cost is the credit loss recognized through earnings and an adjustment to the cost basis of the security. The amount of impairment related to other factors is included in other comprehensive income (loss). Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method.
Provision and Allowance for Probable Loan Losses	Provision and Allowance for Probable Loan Losses The allowance for probable loan losses is maintained at a level considered adequate by management to provide for probable loan losses. The allowance is increased by provisions charged to operating expense and reduced by net charge‑offs. The provision for probable loan losses is the amount, which, in the judgment of management, is necessary to establish the allowance for probable loan losses at a level that is adequate to absorb known and inherent risks in the loan portfolio. Management believes that the allowance for probable loan losses is adequate. While management uses available information to recognize losses on loans, future additions to the allowance may be necessary based on changes in economic conditions. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Company’s bank subsidiaries’ allowances for probable loan losses. Such agencies may require the Company’s bank subsidiaries to make additions or reductions to their U.S. generally accepted accounting principles (“GAAP”) allowances based on their judgments of information available to them at the time of their examination. The bank subsidiaries charge off that portion of any loan which management considers to represent a loss as well as that portion of any other loan which is classified as a “loss” by bank examiners. Commercial, financial and agricultural or real estate loans are generally considered by management to represent a loss, in whole or part, (i) when an exposure beyond any collateral coverage is apparent, (ii) when no further collection of the portion of the loan so exposed is anticipated based on actual results, (iii) when the credit enhancements, if any, are not adequate, and (iv) when the borrower’s financial condition would indicate so. Generally, unsecured consumer loans are charged off when 90 days past due.
Loans	Loans Loans are reported at the principal balance outstanding, net of unearned discounts. Interest income on loans is reported on an accrual basis. Loan fees and costs associated with originating the loans are amortized over the life of the loan using the interest method. The Company originates mortgage loans that may subsequently be sold to an unaffiliated third party. The loans are not securitized and if sold, are sold without recourse. Loans held for sale are carried at cost and the principal amount outstanding is not significant to the consolidated financial statements.
Impaired Loans	Impaired Loans Impaired loans are those loans where it is probable that all amounts due according to contractual terms of the loan agreement will not be collected. Impaired loans are measured based on (1) the present value of expected future cash flows discounted at the loan’s effective interest rate; (2) the loan’s observable market price; or (3) the fair value of the collateral if the loan is collateral dependent. Substantially all of the Company’s impaired loans are measured at the fair value of the collateral. In limited cases the Company may use other methods to determine the level of impairment of a loan if such loan is not collateral dependent.
Troubled Debt Restructured Loans	Troubled Debt Restructured Loans Troubled debt restructured loans (“TDR”) are those loans where, for reasons related to a borrower’s difficulty to repay a loan, the company grants a concession to the borrower that the company would not normally consider in the normal course of business. The original terms of the loan are modified or restructured. The terms that may be modified include a reduction in the original stated interest rate, an extension of the original maturity of the loan, a renewal of the loan at an interest rate below current market rates, a reduction in the principal amount of debt outstanding, a reduction in accrued interest or deferral of interest payments. A loan classified as a TDR is classified as an impaired loan and included in the impaired loan totals. A TDR loan may be returned to accrual status when the loan is brought current, has performed in accordance with the restructured terms for a reasonable period of time, is at the current market rate, and the ultimate collectability of the outstanding principal and interest is no longer questionable, however, although those loans may be placed back on accrual status, they will continue to be classified as impaired. Consistent with regulatory guidance, a TDR loan that is subsequently modified, but has shown sustained performance and classification as a TDR, will be removed from TDR status provided that the modified terms were market-based at the time of modification.
Non-Accrual Loans	Non‑Accrual Loans The non‑accrual loan policy of the Company’s bank subsidiaries is to discontinue the accrual of interest on loans when management determines that it is probable that future interest accruals will be un‑collectible. As it relates to consumer loans, management charges off those loans when the loan is contractually 90 days past due. Under special circumstances, a consumer or non‑consumer loan may be more than 90 days delinquent as to interest or principal and not be placed on non‑accrual status. This situation generally results when a bank subsidiary has a borrower who is experiencing financial difficulties, but not to the extent that requires a restructuring of indebtedness. The majority of this category is composed of loans that are considered to be adequately secured and/or for which there are expected future payments. When a loan is placed on non‑accrual status, any interest accrued, not paid is reversed and charged to operations against interest income. As it relates to non‑consumer loans that are not 90 days past due, management will evaluate each of these loans to determine if placing the loan on non‑accrual status is warranted. Interest income on non‑accrual loans is recognized only to the extent payments are received or when, in management’s opinion, the debtor’s financial condition warrants reestablishment of interest accruals.
Other Real Estate Owned	Other Real Estate Owned Other real estate owned is comprised of real estate acquired by foreclosure and deeds in lieu of foreclosure. Other real estate is carried at the lower of the recorded investment in the property or its fair value less estimated costs to sell such property (as determined by independent appraisal). Prior to foreclosure, the value of the underlying loan is written down to the fair value of the real estate to be acquired by a charge to the allowance for probable loan losses, if necessary. Any subsequent write‑downs are charged against other non‑interest expense through a valuation allowance. Other real estate owned totaled approximately $42,204,000 and $55,850,000 at December 31, 2016 and 2015, respectively. Other real estate owned is included in other assets.
Bank Premises and Equipment	Bank Premises and Equipment Bank premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed on straight‑line and accelerated methods over the estimated useful lives of the assets. Repairs and maintenance are charged to operations as incurred and expenditures for renewals and betterments are capitalized.
Other Investments	Other Investments Other investments include equity investments in non‑financial companies, bank owned life insurance, as well as equity securities with no readily determinable fair market value. Equity investments are accounted for using the equity method of accounting. Equity securities with no readily determinable fair value are accounted for using the cost method.
Income Taxes	Income Taxes Deferred income tax assets and liabilities are determined using the asset and liability method. Under this method, the net deferred tax asset or liability is determined based on the tax effects of the differences between the book and tax basis of the various balance sheet assets and liabilities and gives current recognition to changes in tax rates and laws. The Company files a consolidated federal income tax return with its subsidiaries. Recognition of deferred tax assets is based on management’s assessment that the benefit related to certain temporary differences, tax operating loss carry forwards, and tax credits are more likely than not to be realized. A valuation allowance is recorded for the amount of the deferred tax items for which it is more likely than not that the tax benefits will not be realized. The Company evaluates uncertain tax positions at the end of each reporting period. The Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefit recognized in the financial statements from any such a position is measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. As of December 31, 2016 and 2015, respectively, after evaluating all uncertain tax positions, the Company has recorded no liability for unrecognized tax benefits at the end of the reporting period. The Company would recognize any interest accrued on unrecognized tax benefits as other interest expense and penalties as other non‑interest expense. During the years ended December 31, 2016, 2015 and 2014, the Company recognized no interest expense or penalties related to uncertain tax positions. The Company files consolidated tax returns in the U.S. Federal jurisdiction and various state jurisdictions. The Company is no longer subject to U.S. federal or state income tax examinations by tax authorities for years before 2013.
Stock Options	Stock Options Compensation expense for stock awards is based on the market price of the stock on the measurement date, which is generally the date of grant, and is recognized ratably over the service period of the award. The fair value of stock options granted was estimated, using the Black‑Sholes‑Merton option‑pricing model. This model was developed for use in estimating the fair value of publicly traded options that have no vesting restrictions and are fully transferable. Additionally, the model requires the input of highly subjective assumptions. Because the Company’s employee stock options have characteristics significantly different from those of publicly traded options, and because changes in the subjective input assumptions can materially affect the fair value estimate, in management’s opinion, the Black‑Scholes‑Merton option‑pricing model does not necessarily provide a reliable single measure of the fair value of the Company’s stock options.
Net Income Per Share	Net Income Per Share Basic Earnings Per Share (“EPS”) is calculated by dividing net income by the weighted average number of common shares outstanding. The computation of diluted EPS assumes the issuance of common shares for all dilutive potential common shares outstanding during the reporting period. The dilutive effect of stock options is considered in earnings per share calculations, if dilutive, using the treasury stock method.
Goodwill and Identified Intangible Assets	Goodwill and Identified Intangible Assets Goodwill represents the excess of costs over fair value of assets of businesses acquired. Goodwill is tested for impairment at least annually or on an interim basis if an event triggering impairment may have occurred. As of October 1, 2016, after completing goodwill testing, the Company has determined that no goodwill impairment exists. Identified intangible assets are acquired assets that lack physical substance but can be distinguished from goodwill because of contractual or other legal rights or because the asset is capable of being sold or exchanged either on its own or in combination with a related contract, asset, or liability. The Company’s identified intangible assets relate to core deposits and contract rights. As of December 31, 2016, the Company has determined that no impairment of identified intangibles exists. Identified intangible assets with definite useful lives are amortized on an accelerated basis over their estimated life. See Note 6—Goodwill and Other Intangible Assets.
Impairment of Long-Lived Assets	Impairment of Long‑Lived Assets Long‑lived assets, such as property, plant and equipment, and purchased intangibles subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying value of the asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying value of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying value of the asset exceeds the fair value of the asset. Assets to be disposed of would be separately presented in the statement of condition and reported at the lower of the carrying value or fair value less costs to sell, and are no longer depreciated. The assets and liabilities of a disposed group classified as held for sale would be presented separately in the appropriate asset and liability sections of the statement of condition.
Consolidated Statements of Cash Flows	Consolidated Statements of Cash Flows For purposes of the consolidated statements of cash flows, the Company considers all short‑term investments with a maturity at date of purchase of three months or less to be cash equivalents. Also, the Company reports transactions related to deposits and loans to customers on a net basis.
Accounting for Transfers and Servicing of Financial Assets	Accounting for Transfers and Servicing of Financial Assets The Company accounts for transfers and servicing of financial assets and extinguishments of liabilities based on the application of a financial‑components approach that focuses on control. After a transfer of financial assets, the Company recognizes the financial and servicing assets it controls and liabilities it has incurred, derecognizes financial assets when control has been surrendered and derecognizes liabilities when extinguished. The Company has retained mortgage servicing rights in connection with the sale of mortgage loans. Because the Company may not initially identify loans as originated for resale, all loans are initially treated as held for investment. The value of the mortgage servicing rights are reviewed periodically for impairment and are amortized in proportion to, and over the period of estimated net servicing income or net servicing losses. The value of the mortgage servicing rights is not significant to the consolidated statements of condition.
Segments of an Enterprise and Related Information	Segments of an Enterprise and Related Information The Company operates as one segment. The operating information used by the Company’s chief executive officer for purposes of assessing performance and making operating decisions about the Company is the consolidated financial statements presented in this report. The Company has four active operating subsidiaries, namely, the bank subsidiaries, otherwise known as International Bank of Commerce, Laredo, Commerce Bank, International Bank of Commerce, Zapata and International Bank of Commerce, Brownsville. The Company applies the provisions of ASC Topic 280, “Segment Reporting,” in determining its reportable segments and related disclosures.
Comprehensive Income (Loss)	Comprehensive Income (Loss) Comprehensive income (loss) consists of net income and other comprehensive income (loss). Other comprehensive income (loss) includes unrealized gains and losses on securities available for sale.
Advertising	Advertising Advertising costs are expensed as incurred.
Reclassifications	Reclassifications Certain amounts in the prior year’s presentations have been reclassified to conform to the current presentation. These reclassifications had no effect on previously reported net income or shareholders’ equity.
New Accounting Standards	New Accounting Standards In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-09 to ASC 606, “Revenue from Contracts with Customers.” The update sets a common standard that defines revenue and the principles for recognizing revenue. The update outlines when an entity should recognize revenue, among other matters. At its core, the update states that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The update also outlines the steps that entities should take to determine and record the correct revenue number. The update was originally effective for annual periods beginning after December 15, 2016 and the interim perriods wihin that reporting period. In August 2015, the FASB issued accounting Standards Update No 2015-14 which deferred the effective date of Accounting Standards Update No. 2014-019 by one year to annual and interim periods beginning after December 15, 2017. The Company’s revenue is primarily comprised of net interest income on financial assets and financial liabilities and non-interest income, which is explicitly excluded from the scope of the update. The Company will continue to evaluate the impact of the update on certain other revenue items, such as the sales of other real estate, however, the adtoption of the update is not expected to have a significant impact on the Company’s consolidated financial statements. In January 2015, the FASB issued Accounting Standards Update No. 2015-01 to ASC 225-20, “Income Statement- Extraordinary and Unusual Items.” The update amends existing standards and is being issued as part of the FASB’s initiative to reduce complexity in accounting standards. The update eliminates the concept of extraordinary items. The update is effective for interim and annual periods after December 15, 2015. The adoption of the update did not have a significant impact to the Company’s consolidated financial statements. In February 2015, the FASB issued Accounting Standards Update No. 2015-02 to ASC 810, “Consolidation.” The update amends existing standards regarding the evaluation of certain legal entities and their consolidation in the financial statements. The amendments modify the evaluation process to assess whether limited partnerships and similar legal entities are variable interest entities or voting interest entities, eliminate the presumption that a general partner should consolidate a limited partnership, affect the consolidation analysis of entities that are involved in variable interest entities, particularly those that have fee arrangements and related party relationships and provides a scope exception for reporting entities with legal interests that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds. The update is effective for interim and annual periods after December 15, 2015. The adoption of the update to existing standards did not have a significant impact to the Company’s consolidated financial statements. In September 2015, the FASB issued Accounting Standards Update No. 2015-16 to ASC 805, “Business Combinations.” The update amends existing standards regarding the methodology used to recognize adjustments related to provisional amounts that are identified during the measurement period of a business combination. The update requires that adjustments to provisional amounts be recognized in the reporting period in which the adjustment amounts are determined. The update requires that the reporting entity disclose on the face of the income statement or in the notes, the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. The update is effective for interim and annual periods after December 15, 2015. The adoption of the update to existing standards did not have a significant impact to the Company’s consolidated financial statements. In January 2016, the FASB issued Accounting Standards Update No. 2016-01 to ASC 825-10, “Financial Instruments – Overall.” The update amends existing standards regarding certain aspects of recognition and measurement of financial assets and financial liabilities. The amendments in the update establish the following guidance: (i) requires equity investments, except those accounted for under the equity method of accounting or those that result in consolidation of the investee, to be measured at fair value with changes in fair value recognized in net income, (ii) simplifies the impairment assessment of equity securities without readily determinable fair values by requiring a qualitative assessment, (iii) eliminates the requirement to disclose the fair value of financial instruments measured at amortized cost for entities that are not public business entities, (iv) eliminates the requirement for public business entities to disclose the methods and significant assumptions used to estimate fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, (v) requires public business entities to use the exit price notion when measuring fair value for disclosure purposes, (vi) requires an entity to present separately, in other comprehensive income, the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option, (vii) requires separate presentation of financial assets and liabilities by measurement category and form of financial assets on the balance sheet or in the accompanying notes to the financial statements, and (viii) clarifies that an entity should evaluate the need to a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. The update is effective for interim and annual periods beginning after December 15, 2017. The adoption of the update is not expected to have a significant impact to the Company’s consolidated financial statements. In February 2016, the FASB issued Accounting Standards Update No. 2016-02 to ASC 820, “Leases.” The update amends existing standards for accounting for leases by lessees, with accounting for leases by lessors remaining mainly unchanged from current guidance. The update requires that lessees recognize a lease liability and a right of use asset for all leases (with the exception of short-term leases) at the commencement date of the lease and disclose key information about leasing arrangements. The update is effective for interim and annual periods beginning after December 15, 2015 and is to be applied on a modified retrospective basis. The Company is evaluating the potential impact to the Company’s consolidated financial statements. In March 2016, the FB issued Accounting Standards Update No. 2016-09 to ASC 718, “Compensation – Stock Compensation.” The update amends existing standards for accounting for share-based payment transactions, including the income tax effects, the classification of awards on the balance sheet and the classification on the statement of cash flows. The update is effective for annual and interim periods after December 15, 2016. The adoption of the update is not expected to have a significant impact to the Company’s consolidated financial statements. In June 2016, the FASB issued Accounting Standards Update No. 2016-13 to ASC 326, “Financial Insruments – Credit Losses.” The update amends existing standards for accounting for credit losses for financial assets. The update requires that the expected credit losses on the financial instruments held as of the end of the period being reported be measured based on historical experience, current conditions, and reasonable and supportable forecasts. The update also expands the required disclosures related to significant estimates and judgements used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s financial assets. The update also amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioriation. The update is effective for interim and annual periods beginning after December 15, 2019. The Company is evaluating the potential impact of the update on the Company’s consolidated financial statements. In January 2017, the FASB issued Accounting Standards Update No. 2017-04 to ASC 350, “Intangibles – Goodwill and Other.” The update amends existing guidance in evaluating goodwill for impairment. The update requires that an entity perform its annual or interim goodwill test by comparing the fair value of a reporting unit with its carrying amount, with any impairment charges being recognized as the difference between the fair value and carrying value. The update is intended to standardize the impairment test for all business entities and also reduce the complexity and cost of evaluating goodwill for impairment. The update is effective for any annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. The adoption of the update is not expected to have a significant impact to the Company’s consolidated financial statements.

Investment Securities (Tables)

Investment Securities (Tables)	12 Months Ended
	Dec. 31, 2016
Investment Securities
Amortized cost and estimated fair value by type of investment security	The amortized cost and estimated fair value by type of investment security at December 31, 2016 are as follows: Held to Maturity Gross Gross Amortized unrealized unrealized Estimated Carrying cost gains losses fair value value (Dollars in Thousands) Other securities $ $ — $ — $ $ Total investment securities $ $ — $ — $ $ Available for Sale Gross Gross Amortized unrealized unrealized Estimated Carrying cost gains losses fair value value (1) (Dollars in Thousands) Residential mortgage-backed securities $ $ $ $ $ Obligations of states and political subdivisions Equity securities Total investment securities $ $ $ $ $ (1) Included in the carrying value of residential mortgage‑ backed securities are $850,033 of mortgage‑backed securities issued by Ginnie Mae, $ 3,026,832 of mortgage‑backed securities issued by Fannie Mae and Freddie Mac and $17,605 issued by non‑government entities The amortized cost and estimated fair value by type of investment security at December 31, 2015 are as follows: Held to Maturity Gross Gross Amortized unrealized unrealized Estimated Carrying cost gains losses fair value value (Dollars in Thousands) Other securities $ $ — $ — $ $ Total investment securities $ $ — $ — $ $ Available for Sale Gross Gross Estimated Amortized unrealized unrealized fair Carrying cost gains losses value value (1) (Dollars in Thousands) Residential mortgage-backed securities $ $ $ $ $ Obligations of states and political subdivisions Equity securities Total investment securities $ $ $ $ $ (1) Included in the carrying value of residential mortgage‑ backed securities are $1,147,143 of mortgage‑backed securities issued by Ginnie Mae, $2,724,839 of mortgage‑backed securities issued by Fannie Mae and Freddie Mac and $21,229 issued by non‑government entities
Amortized cost and fair value of investment securities, by contractual maturity	Held to Maturity Available for Sale Amortized Estimated Amortized Estimated Cost fair value Cost fair value (Dollars in Thousands) Due in one year or less $ $ $ — $ — Due after one year through five years — — Due after five years through ten years — — Due after ten years — — Residential mortgage-backed securities — — Equity securities — — Total investment securities $ $ $ $
Gross unrealized losses on investment securities and the related fair value	Gross unrealized losses on investment securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2016 were as follows: Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses (Dollars in Thousands) Available for sale: Residential mortgage-backed securities $ $ $ $ $ $ Obligations of states and political subdivisions — — Equity securities $ $ $ $ $ $ Gross unrealized losses on investment securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous loss position, at December 31, 2015 were as follows: Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses (Dollars in Thousands) Available for sale: Residential mortgage-backed securities $ $ $ $ $ $ Obligations of states and political subdivisions Equity securities $ $ $ $ $ $
Reconciliation of credit-related impairment charges on available-for-sale investment	The following table presents a reconciliation of credit‑related impairment charges on available‑for‑sale investments recognized in earnings for the twelve months ended December 31, 2016 (in Thousands): Balance at December 31, 2015 $ Impairment charges recognized during period Balance at December 31, 2016 $ The following table presents a reconciliation of credit‑related impairment charges on available‑for‑sale investments recognized in earnings for the twelve months ended December 31, 2015 (in Thousands): Balance at December 31, 2014 $ Impairment charges recognized during period Balance at December 31, 2015 $ The following table presents a reconciliation of credit‑related impairment charges on available‑for‑sale investments recognized in earnings for the twelve months ended December 31, 2014 (in Thousands): Balance at December 31, 2013 $ Impairment charges recognized during period Balance at December 31, 2014 $

Loans (Tables)

Loans (Tables)	12 Months Ended
	Dec. 31, 2016
Loans
Summary of loans, by loan type	December 31, December 31, 2016 2015 (Dollars in Thousands) Commercial, financial and agricultural $ $ Real estate - mortgage Real estate - construction Consumer Foreign Total loans $ $

Allowance for Probable Loan L38

Allowance for Probable Loan Losses (Tables)	12 Months Ended
	Dec. 31, 2016
Allowance for Probable Loan Losses
Summary of the transactions in the allowance for probable loan losses by loan class	December 31, 2016 Domestic Foreign Commercial real estate: other Commercial construction & real estate: Commercial land farmland & real estate: Residential: Residential: Commercial development commercial multifamily first lien junior lien Consumer Foreign Total (Dollars in Thousands) Balance at December 31, $ $ $ $ $ $ $ $ $ Losses charge to allowance Recoveries credited to allowance — Net losses charged to allowance Provision (credit) charged to operations Balance at December 31, $ $ $ $ $ $ $ $ $ December 31, 2015 Domestic Foreign Commercial real estate: other Commercial construction & real estate: Commercial land farmland & real estate: Residential: Residential: Commercial development commercial multifamily first lien junior lien Consumer Foreign Total (Dollars in Thousands) Balance at December 31, $ $ $ $ $ $ $ $ $ Losses charge to allowance — — Recoveries credited to allowance — Net losses charged to allowance — Provision (credit) charged to operations Balance at December 31, $ $ $ $ $ $ $ $ $ December 31, 2014 Domestic Foreign Commercial real estate: other Commercial construction & real estate: Commercial land farmland & real estate: Residential: Residential: Commercial development commercial multifamily first lien junior lien Consumer Foreign Total (Dollars in Thousands) Balance at December 31, $ $ $ $ $ $ $ $ $ Losses charge to allowance — Recoveries credited to allowance — Net losses charged to allowance — Provision (credit) charged to operations Balance at December 31, $ $ $ $ $ $ $ $ $
Loans individually or collectively evaluated for their impairment and related allowance, by loan class	December 31, 2016 Loans Individually Loans Collectively Evaluated For Evaluated For Impairment Impairment Recorded Recorded Investment Allowance Investment Allowance (Dollars in Thousands) Domestic Commercial $ $ — $ $ Commercial real estate: other construction & land development Commercial real estate: farmland & commercial Commercial real estate: multifamily — Residential: first lien Residential: junior lien — Consumer — Foreign — Total $ $ $ $ December 31, 2015 Loans Individually Loans Collectively Evaluated For Evaluated For Impairment Impairment Recorded Recorded Investment Allowance Investment Allowance (Dollars in Thousands) Domestic Commercial $ $ $ $ Commercial real estate: other construction & land development Commercial real estate: farmland & commercial Commercial real estate: multifamily Residential: first lien — Residential: junior lien — Consumer — Foreign — Total $ $ $ $
Loans accounted on non-accrual basis, by loan class	December 31, 2016 December 31, 2015 (Dollars in Thousands) Domestic Commercial $ $ Commercial real estate: other construction & land development Commercial real estate: farmland & commercial Commercial real estate: multifamily Residential: first lien Residential: junior lien Consumer Foreign Total non-accrual loans $ $
Impaired loans, by loan class	December 31, 2016 Unpaid Average Recorded Principal Related Recorded Interest Investment Balance Allowance Investment Recognized (Dollars in Thousands) Loans with Related Allowance Domestic Commercial real estate: other construction & land development $ $ $ $ $ — Commercial real estate: farmland & commercial — Residential: first lien — Total impaired loans with related allowance $ $ $ $ $ — December 31, 2016 Unpaid Average Recorded Principal Recorded Interest Investment Balance Investment Recognized (Dollars in Thousands) Loans with No Related Allowance Domestic Commercial $ $ $ $ Commercial real estate: other construction & land development Commercial real estate: farmland & commercial Commercial real estate: multifamily — Residential: first lien Residential: junior lien Consumer Foreign Total impaired loans with no related allowance $ $ $ $ The following tables detail key information regarding the Company’s impaired loans by loan class for the year ended December 31, 2015: December 31, 2015 Unpaid Average Recorded Principal Related Recorded Interest Investment Balance Allowance Investment Recognized (Dollars in Thousands) Loans with Related Allowance Domestic Commercial $ $ $ $ $ — Commercial real estate: other construction & land development — Commercial real estate: farmland & commercial Commercial real estate: multifamily — Total impaired loans with related allowance $ $ $ $ $ December 31, 2015 Unpaid Average Recorded Principal Recorded Interest Investment Balance Investment Recognized (Dollars in Thousands) Loans with No Related Allowance Domestic Commercial $ $ $ $ Commercial real estate: other construction & land development Commercial real estate: farmland & commercial — Commercial real estate: multifamily — Residential: first lien Residential: junior lien Consumer Foreign Total impaired loans with no related allowance $ $ $ $
Loans accounted for as trouble debt restructuring, by loan class	December 31, 2016 December 31, 2015 (Dollars in Thousands) Domestic Commercial $ $ Commercial real estate: other construction & land development — Commercial real estate: farmland & commercial Residential: first lien Residential: junior lien Consumer Foreign Total troubled debt restructuring $ $
Information regarding the aging of past due loans, by loan class	December 31, 2016 90 Days or Total 30 - 59 60 - 89 90 Days or greater & Past Total Days Days Greater still accruing Due Current Portfolio (Dollars in Thousands) Domestic Commercial $ $ $ $ $ $ $ Commercial real estate: other construction & land development Commercial real estate: farmland & commercial Commercial real estate: multifamily — — Residential: first lien Residential: junior lien Consumer Foreign Total past due loans $ $ $ $ $ $ $ December 31, 2015 90 Days or Total 30 - 59 60 - 89 90 Days or greater & Past Total Days Days Greater still accruing Due Current Portfolio (Dollars in Thousands) Domestic Commercial $ $ $ $ $ $ $ Commercial real estate: other construction & land development — Commercial real estate: farmland & commercial Commercial real estate: multifamily Residential: first lien Residential: junior lien Consumer Foreign Total past due loans $ $ $ $ $ $ $
Summary of the loan portfolio by credit quality indicator, by loan class	December 31, 2016 Special Watch Watch List— Watch List— Pass Review List—Pass Substandard Impaired (Dollars in Thousands) Domestic Commercial $ $ $ $ $ Commercial real estate: other construction & land development — Commercial real estate: farmland & commercial Commercial real estate: multifamily — — — Residential: first lien — Residential: junior lien — — Consumer — — — Foreign — — — Total $ $ $ $ $ December 31, 2015 Special Watch Watch List— Watch List— Pass Review List—Pass Substandard Impaired (Dollars in Thousands) Domestic Commercial $ $ $ $ $ Commercial real estate: other construction & land development Commercial real estate: farmland & commercial Commercial real estate: multifamily — — Residential: first lien — — Residential: junior lien — — Consumer — — Foreign — — — Total $ $ $ $ $

Bank Premises and Equipment (Ta

Bank Premises and Equipment (Tables)	12 Months Ended
	Dec. 31, 2016
Bank Premises and Equipment
Summary of bank premises and equipment, by asset classification	Estimated useful lives 2016 2015 (Dollars in Thousands) Bank buildings and improvements 5 - 40 years $ $ Furniture, equipment and vehicles 1 - 20 years Land Real estate held for future expansion: Land, building, furniture, fixture and equipment 7 - 27 years — — Less: accumulated depreciation Bank premises and equipment, net $ $

Goodwill and Other Intangible40

Goodwill and Other Intangible Assets (Tables)	12 Months Ended
	Dec. 31, 2016
Goodwill and Other Intangible Assets
Schedule of the entity's identified intangible assets	Carrying Accumulated Amount Amortization Net (Dollars in Thousands) December 31, 2016: Core deposit premium $ $ $ Identified intangible (contract rights) — Total identified intangibles $ $ $ December 31, 2015: Core deposit premium $ $ $ Identified intangible (contract rights) — Total identified intangibles $ $ $
Schedule of estimated amortization expense for each of the five succeeding fiscal years and thereafter	Total (in thousands) 2017 2018 — 2019 — 2020 — 2021 — Thereafter Total $

Deposits (Tables)

Deposits (Tables)	12 Months Ended
	Dec. 31, 2016
Deposits.
Schedule of deposits and related interest expense	2016 2015 (Dollars in Thousands) Deposits: Demand - non-interest bearing Domestic $ $ Foreign Total demand non-interest bearing Savings and interest bearing demand Domestic Foreign Total savings and interest bearing demand Time, certificates of deposit $100,000 or more Domestic Foreign Less than $100,000 Domestic Foreign Total time, certificates of deposit Total deposits $ $ 2016 2015 2014 (Dollars in Thousands) Interest expense: Savings and interest bearing demand Domestic $ $ $ Foreign Total savings and interest bearing demand Time, certificates of deposit $100,000 or more Domestic Foreign Less than $100,000 Domestic Foreign Total time, certificates of deposit Total interest expense on deposits $ $ $
Scheduled maturities of time deposits	Total (in thousands) 2017 $ 2018 2019 2020 2021 Thereafter Total $
Scheduled maturities of time deposits in amounts of $100,000 or more	Total (in thousands) Due within 3 months or less $ Due after 3 months and within 6 months Due after 6 months and within 12 months Due after 12 months $

Securities Sold Under Repurch42

Securities Sold Under Repurchase Agreements (Tables)	12 Months Ended
	Dec. 31, 2016
Securities Sold Under Repurchase Agreements
Schedule of repurchase agreements	Collateral Securities Repurchase Borrowing Book Value of Fair Value of Balance of Weighted Average Securities Sold Securities Sold Liability Interest Rate (Dollars in Thousands) December 31, 2016 term: Overnight agreements $ $ $ % 1 to 29 days 30 to 90 days Over 90 days Total $ $ $ % December 31, 2015 term: Overnight agreements $ $ $ % 1 to 29 days 30 to 90 days Over 90 days Total $ $ $ %

Other Borrowed Funds (Tables)

Other Borrowed Funds (Tables)	12 Months Ended
	Dec. 31, 2016
Other Borrowed Funds
Schedule of other borrowed funds	December 31, 2016 2015 (Dollars in Thousands) Federal Home Loan Bank advances—short-term Balance at year end $ $ Rate on balance outstanding at year end % % Average daily balance $ $ Average rate % % Maximum amount outstanding at any month end $ $ Federal Home Loan Bank advances—long-term (1) Balance at year end $ $ Rate on balance outstanding at year end % % Average daily balance $ $ Average rate % % Maximum amount outstanding at any month end $ $ Long-term advances matured in January 2017.

Junior Subordinated Interest 44

Junior Subordinated Interest Deferrable Debentures (Tables)	12 Months Ended
	Dec. 31, 2016
Junior Subordinated Interest Deferrable Debentures
Junior subordinated deferrable interest debentures, major types of business trusts	The following table illustrates key information about each of the Debentures and their interest rates at December 31, 2016: Junior Subordinated Deferrable Optional Interest Repricing Interest Interest Redemption Debentures Frequency Rate Rate Index(1) Maturity Date Date(1) (Dollars in Thousands) Trust VI $ Quarterly % LIBOR + November 2032 February 2008 Trust VIII Quarterly % LIBOR + October 2033 October 2008 Trust IX Quarterly % LIBOR + October 2036 October 2011 Trust X Quarterly % LIBOR + February 2037 February 2012 Trust XI Quarterly % LIBOR + July 2037 July 2012 Trust XII Quarterly % LIBOR + September 2037 September 2012 $ The Capital Securities may be redeemed in whole or in part on any interest payment date after the Optional Redemption Date.

Earnings per Share ("EPS") (Tab

Earnings per Share ("EPS") (Tables)	12 Months Ended
	Dec. 31, 2016
Earnings per Share ("EPS")
Schedule of calculation of the basic EPS and the diluted EPS	Net Income Shares Per Share (Numerator) (Denominator) Amount (Dollars in Thousands, Except Per Share Amounts) December 31, 2016: Basic EPS Net income available to common shareholders $ $ Potential dilutive common shares and warrants — Diluted EPS $ $ December 31, 2015: Basic EPS Net income available to common shareholders $ $ Potential dilutive common shares and warrants — Diluted EPS $ $ December 31, 2014: Basic EPS Net income available to common shareholders $ $ Potential dilutive common shares — Diluted EPS $ $

International Operations (Table

International Operations (Tables)	12 Months Ended
	Dec. 31, 2016
International Operations
Summary of assets attributable to international operations	2016 2015 (Dollars in Thousands) Loans: Commercial $ $ Others Less allowance for probable loan losses Net loans $ $ Accrued interest receivable $ $

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2016
Income Taxes
Schedule of current and deferred portions of net income tax expense	2016 2015 2014 (Dollars in Thousands) Current U.S. $ $ $ State Foreign — Total current taxes Deferred U.S. State Total deferred taxes Total income taxes $ $ $
Schedule of income tax expense differences from the amount computed by applying the U.S. Federal income tax rate to income before income taxes	2016 2015 2014 (Dollars in Thousands) Computed expected tax expense $ $ $ Change in taxes resulting from: Tax-exempt interest income State tax, net of federal income taxes and tax credit Other investment income Other Actual tax expense $ $ $
Schedule of tax effects of temporary difference that give rise to significant portions of the deferred tax assets and deferred tax liabilities	2016 2015 (Dollars in Thousands) Deferred tax assets: Loans receivable, principally due to the allowance for probable loan losses $ $ Other real estate owned Impairment charges on available-for-sale securities Accrued expenses Net unrealized losses on available for sale investment securities — Other Total deferred tax assets Deferred tax liabilities: Bank premises and equipment, principally due to differences on depreciation Net unrealized gains on available for sale investment securities — Identified intangible assets and goodwill Other Total deferred tax liabilities Net deferred tax liability $ $

Stock Options (Tables)

Stock Options (Tables)	12 Months Ended
	Dec. 31, 2016
Stock Options
Schedule of Black-Scholes-Merton option valuation model assumptions	2016 2015 Expected Life (Years) Dividend yield % % Interest rate % % Volatility % %
Summary of option activity under stock option plans	Weighted Weighted average average remaining Aggregate Number of exercise contractual intrinsic options price term (years) value ($) (in Thousands) Options outstanding at December 31, 2015 $ Plus: Options granted Less: Options exercised Options expired Options forfeited Options outstanding at December 31, 2016 $ Options fully vested and exercisable at December 31, 2016 $ $
Schedule of other information pertaining to option activity	Twelve Months Ended December 31, 2016 2015 2014 Weighted average grant date fair value of stock options granted $ $ $ Total fair value of stock options vested $ $ $ Total intrinsic value of stock options exercised $ $ $

Commitments, Contingent Liabili

Commitments, Contingent Liabilities and Other Matters (Tables)	12 Months Ended
	Dec. 31, 2016
Commitments, Contingent Liabilities and Other Matters
Schedule of future minimum lease payments due under non-cancellable operating leases	Total (in thousands) 2017 $ 2018 2019 2020 2021 Thereafter Total $

Financial Instruments with Of50

Financial Instruments with Off-Statement of Condition Risk and Concentrations of Credit Risk (Tables)	12 Months Ended
	Dec. 31, 2016
Financial Instruments with Off-Statement of Condition Risk and Concentrations of Credit Risk
Schedule of financial amounts of instruments, whose contract amounts represent credit risks	Commitments to extend credit $ Credit card lines Standby letters of credit Commercial letters of credit

Capital Requirements (Tables)

Capital Requirements (Tables)	12 Months Ended
	Dec. 31, 2016
Capital Requirements
Schedule of the Company's and the bank subsidiaries' actual capital amounts and ratios	The Company’s and the bank subsidiaries’ actual capital amounts and ratios for 2016 under current guidelines are presented in the following table: For Capital Adequacy To Be Well-Capitalized Purposes Under Prompt Corrective Actual Phase In Schedule Action Provisions Amount Ratio Amount Ratio Amount Ratio (greater than (greater than (greater than (greater than or equal to) or equal to) or equal to) or equal to) (Dollars in Thousands) As of December 31, 2016: Common Equity Tier 1 (to Risk Weighted Assets): Consolidated $ % $ % N/A N/A International Bank of Commerce, Laredo $ % International Bank of Commerce, Brownsville International Bank of Commerce, Zapata Commerce Bank Total Capital (to Risk Weighted Assets): Consolidated $ % $ % N/A N/A International Bank of Commerce, Laredo $ % International Bank of Commerce, Brownsville International Bank of Commerce, Zapata Commerce Bank Tier 1 Capital (to Risk Weighted Assets): Consolidated $ % $ % N/A N/A International Bank of Commerce, Laredo $ % International Bank of Commerce, Brownsville International Bank of Commerce, Zapata Commerce Bank Tier 1 Capital (to Average Assets): Consolidated $ % $ % $ N/A N/A International Bank of Commerce, Laredo % International Bank of Commerce, Brownsville International Bank of Commerce, Zapata Commerce Bank The Company’s and the bank subsidiaries’ actual capital amounts and ratios for 2015 are also presented in the following table: To Be Well-Capitalized For Capital Adequacy Under Prompt Corrective Actual Purposes Action Provisions Amount Ratio Amount Ratio Amount Ratio (greater than (greater than (greater than (greater than or equal to) or equal to) or equal to) or equal to) (Dollars in Thousands) As of December 31, 2015: Common Equity Tier 1 (to Risk Weighted Assets): Consolidated $ % $ % N/A N/A International Bank of Commerce, Laredo $ % International Bank of Commerce, Brownsville International Bank of Commerce, Zapata Commerce Bank Total Capital (to Risk Weighted Assets): Consolidated $ % $ % N/A N/A International Bank of Commerce, Laredo $ % International Bank of Commerce, Brownsville International Bank of Commerce, Zapata Commerce Bank Tier 1 Capital (to Risk Weighted Assets): Consolidated $ % $ % N/A N/A International Bank of Commerce, Laredo $ % International Bank of Commerce, Brownsville International Bank of Commerce, Zapata Commerce Bank Tier 1 Capital (to Average Assets): Consolidated $ % $ % $ N/A N/A International Bank of Commerce, Laredo % International Bank of Commerce, Brownsville International Bank of Commerce, Zapata Commerce Bank

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	12 Months Ended
	Dec. 31, 2016
Fair Value Measurements
Assets and liabilities measured at fair value on a recurring basis	The following table represents financial instruments reported on the consolidated statements of condition at their fair value as of December 31, 2016 by level within the fair value measurement hierarchy. Fair Value Measurements at Reporting Date Using (in Thousands) Quoted Prices in Active Significant Assets/Liabilities Markets for Other Significant Measured at Identical Observable Unobservable Fair Value Assets Inputs Inputs December 31, 2016 (Level 1) (Level 2) (Level 3) Measured on a recurring basis: Assets: Available for sale securities Residential mortgage-backed securities $ $ — $ $ States and political subdivisions — — Equity securities — — $ $ $ $ The following table represents financial instruments reported on the consolidated balance sheets at their fair value as of December 31, 2015 by level within the fair value measurement hierarchy. Fair Value Measurements at Reporting Date Using (in Thousands) Quoted Prices in Active Significant Assets/Liabilities Markets for Other Significant Measured at Identical Observable Unobservable Fair Value Assets Inputs Inputs December 31, 2015 (Level 1) (Level 2) (Level 3) Measured on a recurring basis: Assets: Available for sale securities Residential mortgage - backed securities $ $ — $ $ States and political subdivisions — — Equity securities — — $ $ $ $
Reconciliation of activity for mortgage-backed securities on a net basis	Balance at December 31, 2015 $ Principal paydowns Total unrealized gains (losses) included in: Other comprehensive loss Impairment realized in earnings Balance at December 31, 2016 $
Assets measured at fair value on a non-recurring basis	The following table represents financial instruments measured at fair value on a non‑recurring basis as of and for the period ended December 31, 2016 by level within the fair value measurement hierarchy: Fair Value Measurements at Reporting Date Using (in thousands) Quoted Assets/Liabilities Prices in Measured at Active Significant Fair Value Markets for Other Significant Net Provision Year ended Identical Observable Unobservable (Credit) December 31, Assets Inputs Inputs During 2016 (Level 1) (Level 2) (Level 3) Period Measured on a non-recurring basis: Assets: Impaired loans $ $ — $ — $ $ Other real estate owned — — The following table represents financial instruments measured at fair value on a non‑recurring basis as of and for the year ended December 31, 2015 by level within the fair value measurement hierarchy: Fair Value Measurements at Reporting Date Using (in thousands) Quoted Assets/Liabilities Prices in Measured at Active Significant Fair Value Markets Other Significant Net (Credit) Year ended for Identical Observable Unobservable Provision December 31, Assets Inputs Inputs During 2015 (Level 1) (Level 2) (Level 3) Period Measured on a non-recurring basis: Assets: Impaired loans $ $ — $ — $ $ Other real estate owned — —

International Bancshares Corp53

International Bancshares Corporation (Parent Company Only) Financial Information Statements of Condition (Tables)	12 Months Ended
	Dec. 31, 2016
International Bancshares Corporation (Parent Company Only) Financial Information Statements of Condition
Schedule of condensed statements of condition of Parent Company	(Dollars in Thousands) 2016 2015 ASSETS Cash $ $ Other investments Notes receivable — Investment in subsidiaries Other assets Total assets $ $ LIABILITIES AND SHAREHOLDERS’ EQUITY Liabilities: Junior subordinated deferrable interest debentures $ $ Due to IBC Trading Other liabilities Total liabilities Shareholders’ equity: Common shares Surplus Retained earnings Accumulated other comprehensive (loss) income Less cost of shares in treasury Total shareholders’ equity Total liabilities and shareholders’ equity $ $

International Bancshares Corp54

International Bancshares Corporation (Parent Company Only) Financial Information Statements of Income (Tables)	12 Months Ended
	Dec. 31, 2016
International Bancshares Corporation (Parent Company Only) Financial Information Statements of Income
Schedule of condensed statements of income of Parent Company	(Dollars in Thousands) 2016 2015 2014 Income: Dividends from subsidiaries $ $ $ Interest income on notes receivable Interest income on other investments Other Total income Expenses: Interest expense (Debentures) Other Total expenses Income before federal income taxes and equity in undistributed net income of subsidiaries Income tax expense Income before equity in undistributed net income of subsidiaries Equity in undistributed net income of subsidiaries Net income $ $ $

International Bancshares Corp55

International Bancshares Corporation (Parent Company Only) Financial Information Statements of Cash Flows (Tables)	12 Months Ended
	Dec. 31, 2016
International Bancshares Corporation (Parent Company Only) Financial Information Statements of Cash Flows
Schedule of condensed statements of cash flows of Parent Company	(Dollars in Thousands) 2016 2015 2014 Operating activities: Net income $ $ $ Adjustments to reconcile net income to net cash provided by operating activities: Impairment charges on available for sale securities Stock compensation expense Increase (decrease) in other liabilities Equity in undistributed net income of subsidiaries Net cash provided by operating activities Investing activities: Principal collected on mortgage-backed securities Net decrease in notes receivable Increase in other assets and other investments Net cash used in investing activities Financing activities: Redemption of long-term debt Proceeds from stock transactions Payments of cash dividends - common Purchase of treasury stock Net cash used in financing activities Increase (decrease) in cash Cash at beginning of year Cash at end of year $ $ $

Summary of Significant Accoun56

Summary of Significant Accounting Policies (Details)	Oct. 01, 2016USD ($)	Dec. 31, 2016USD ($)item	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)
Summary of Significant Accounting Policies
Number of insurance-related subsidiaries | item		1
Investment Securities
Number of components in which other-than-temporary impairment is segregated | item		2
Non-Accrual Loans
Period of charge off for past due unsecured consumer loans		90 days
Minimum period that past due unsecured loans outstanding may not be placed on nonaccrual status under special circumstances		90 days
Maximum period of non-consumer loans outstanding that is used to evaluate whether loans should be placed on non-accrual status		90 days
Other Real Estate Owned
Other real estate owned		$ 42,204,000	$ 55,850,000
Income Taxes
Percentage of likelihood of realization of recognized tax benefit		50.00%
Liability for unrecognized tax benefits		$ 0	0
Interest expense related to uncertain tax positions		0	0	$ 0
Penalties related to uncertain tax positions		0	$ 0	$ 0
Goodwill and Identified Intangible Assets
Goodwill impairment loss	$ 0
Impairment of identified intangible assets		$ 0
Segments of an Enterprise and Related Information
Number of operating segments | item		1
Number of active operating bank subsidiaries | item		4

Investment Securities (Details)

Investment Securities (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Held-to-maturity securities
Amortized cost	$ 2,400	$ 2,400
Estimated fair value	2,400	2,400
Carrying Value	2,400	2,400
Available-for-sale securities
Amortized Cost	4,218,841	4,196,034
Gross Unrealized Gains	29,343	50,165
Gross Unrealized Losses	(70,835)	(46,827)
Total Investment Securities	4,177,349	4,199,372
Assets/liabilities measured at fair value
Available-for-sale securities
Total Investment Securities	4,177,349	4,199,372
Carrying Value
Available-for-sale securities
Total Investment Securities	4,177,349	4,199,372
Residential mortgage-backed securities
Available-for-sale securities
Amortized Cost	3,946,144	3,908,809
Gross Unrealized Gains	18,246	30,959
Gross Unrealized Losses	(69,920)	(46,557)
Residential mortgage-backed securities | Assets/liabilities measured at fair value
Available-for-sale securities
Total Investment Securities	3,894,470	3,893,211
Residential mortgage-backed securities | Carrying Value
Available-for-sale securities
Total Investment Securities	3,894,470	3,893,211
Mortgage-backed securities by Ginnie Mae
Available-for-sale securities
Total Investment Securities	850,033	1,147,143
Mortgage-backed securities by Fannie Mae and Freddie Mac
Available-for-sale securities
Total Investment Securities	3,026,832	2,724,839
Mortgage-backed securities by non-government entities
Available-for-sale securities
Total Investment Securities	17,605	21,229
Obligations of states and political subdivisions
Available-for-sale securities
Amortized Cost	244,622	259,150
Gross Unrealized Gains	10,783	18,579
Gross Unrealized Losses	(433)	(25)
Obligations of states and political subdivisions | Assets/liabilities measured at fair value
Available-for-sale securities
Total Investment Securities	254,972	277,704
Obligations of states and political subdivisions | Carrying Value
Available-for-sale securities
Total Investment Securities	254,972	277,704
Other securities
Held-to-maturity securities
Amortized cost	2,400	2,400
Estimated fair value	2,400	2,400
Carrying Value	2,400	2,400
Equity securities
Available-for-sale securities
Amortized Cost	28,075	28,075
Gross Unrealized Gains	314	627
Gross Unrealized Losses	(482)	(245)
Equity securities | Assets/liabilities measured at fair value
Available-for-sale securities
Total Investment Securities	27,907	28,457
Equity securities | Carrying Value
Available-for-sale securities
Total Investment Securities	$ 27,907	$ 28,457

Investment Securities (Contract

Investment Securities (Contractual Maturities and Estimated Fair Values) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Held-to-maturity debt securities amortized cost disclosures
Due in one year or less, held-to-maturity debt securities amortized cost	$ 125,000
Due after one year through five years, held-to-maturity debt securities amortized cost	2,275,000
Amortized cost, held-to-maturity debt securities	2,400,000	$ 2,400,000
Held-to-maturity debt securities, Estimated fair value disclosures
Due in one year or less, held-to-maturity debt securities, Estimated fair value	125,000
Due after one year through five years, held-to-maturity debt securities, Estimated fair value	2,275,000
Estimated fair value	2,400,000	2,400,000
Available-for-sale debt securities amortized cost disclosures
Due after five years through ten years, available-for-sale debt securities amortized cost	1,218,000
Due after ten years, available-for-sale debt securities amortized cost	243,404,000
Residential mortgage-backed securities, amortized cost	3,946,144,000
Equity securities, amortized cost	28,075,000
Amortized cost, Available for sale securities	4,218,841,000	4,196,034,000
Available for sale debt securities, Estimated Fair Value Disclosures
Due after five years through ten years, available-for-sale debt securities, Estimated Fair Value	1,288,000
Due after ten years, available-for-sale debt securities, Estimated Fair Value	253,684,000
Residential mortgage-backed securities, Estimated Fair Value	3,894,470,000
Equity securities, Estimated Fair Value	27,907,000
Estimated fair value, Available for sale securities	4,177,349,000	4,199,372,000
Amortized cost of available for sale investment securities pledged	1,780,513,000
Fair value of available for sale investment securities pledged	1,754,763,000
Proceeds from sales and calls of available for sale securities	352,743,000	164,163,000	$ 621,588,000
Proceeds from sales of mortgage-backed securities	338,138,000	128,444,000	620,933
Gross gains realized on sales	586,000	2,450,000	9,479,000
Gross losses realized on sales	3,212,000	6,132,000	8,196,000
Impairment charges on available-for-sale investment securities, after tax	$ 230,100	$ 620,100	$ 531,050

Investment Securities (Fair Val

Investment Securities (Fair Value and Gross Unrealized Loss) (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Available for sale:
Fair value, less than 12 months	$ 2,559,042	$ 1,094,992
Unrealized losses, less than 12 Months	(52,862)	(9,387)
Fair value, 12 months or more	402,147	1,460,634
Unrealized losses, 12 Months or More	(17,973)	(37,440)
Fair value, total	2,961,189	2,555,626
Unrealized losses, total	(70,835)	(46,827)
Residential mortgage-backed securities
Available for sale:
Fair value, less than 12 months	2,513,872	1,083,137
Unrealized losses, less than 12 Months	(52,245)	(9,333)
Fair value, 12 months or more	396,695	1,454,550
Unrealized losses, 12 Months or More	(17,675)	(37,224)
Fair value, total	2,910,567	2,537,687
Unrealized losses, total	(69,920)	(46,557)
Obligations of states and political subdivisions
Available for sale:
Fair value, less than 12 months	31,104	6,814
Unrealized losses, less than 12 Months	(433)	(19)
Fair value, 12 months or more		544
Unrealized losses, 12 Months or More		(6)
Fair value, total	31,104	7,358
Unrealized losses, total	(433)	(25)
Equity securities
Available for sale:
Fair value, less than 12 months	14,066	5,041
Unrealized losses, less than 12 Months	(184)	(35)
Fair value, 12 months or more	5,452	5,540
Unrealized losses, 12 Months or More	(298)	(210)
Fair value, total	19,518	10,581
Unrealized losses, total	$ (482)	$ (245)

Investment Securities (Reconcil

Investment Securities (Reconciliation of Credit Related Impairment Charges ) (Details) - Available-for-sale investments - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Reconciliation of credit-related impairment charges on investments recognized in earnings
Balance at the beginning	$ 13,577	$ 12,623	$ 11,806
Impairment charges recognized during period	354	954	817
Balance at the end	$ 13,931	$ 13,577	$ 12,623

Loans (Details)

Loans (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Summary of loans, by loan type
Total loans	$ 5,964,688	$ 5,950,914
Commercial, financial and agricultural
Summary of loans, by loan type
Total loans	2,993,203	3,101,748
Real estate - mortgage
Summary of loans, by loan type
Total loans	1,032,222	962,582
Commercial Real Estate: Other Construction and Land Development
Summary of loans, by loan type
Total loans	1,716,875	1,649,827
Consumer
Summary of loans, by loan type
Total loans	55,168	57,744
Foreign
Summary of loans, by loan type
Total loans	$ 167,220	$ 179,013

Allowance for Probable Loan L62

Allowance for Probable Loan Losses (By Loan Class) (Details) $ in Thousands	3 Months Ended		12 Months Ended
	Sep. 30, 2016USD ($)	Mar. 31, 2016USD ($)	Dec. 31, 2016USD ($)item	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)
Allowance for probable loan losses
Balance at the beginning of the period		$ 66,988	$ 66,988	$ 64,828	$ 70,161
Losses charged to allowance			(35,901)	(27,125)	(23,465)
Recoveries credited to allowance			13,715	4,880	3,709
Net (losses) recoveries charged to allowance			(22,186)	(22,245)	(19,756)
Provision charged to operations			19,859	24,405	14,423
Balance at the end of the period			$ 64,661	66,988	64,828
Number of large recoveries | item			2
Watch - List Impaired
Allowance for probable loan losses
Losses charged to allowance			$ (19,400)
Commercial
Allowance for probable loan losses
Balance at the beginning of the period		21,431	21,431	22,352	22,433
Losses charged to allowance			(32,959)	(24,802)	(19,110)
Recoveries credited to allowance		4,400	7,110	3,135	2,979
Net (losses) recoveries charged to allowance			(25,849)	(21,667)	(16,131)
Provision charged to operations			30,067	20,746	16,050
Balance at the end of the period			25,649	21,431	22,352
Commercial | Transportation Equipment
Allowance for probable loan losses
Losses charged to allowance				(13,500)	(8,500)
Commercial Real Estate: Other Construction and Land Development
Allowance for probable loan losses
Balance at the beginning of the period		13,920	13,920	12,955	12,541
Losses charged to allowance			(16)	(695)	(680)
Recoveries credited to allowance	$ 6,000		6,099	141	72
Net (losses) recoveries charged to allowance			6,083	(554)	(608)
Provision charged to operations			(6,114)	1,519	1,022
Balance at the end of the period			13,889	13,920	12,955
Commercial Real Estate: Farmland & Commercial
Allowance for probable loan losses
Balance at the beginning of the period		19,769	19,769	18,683	24,467
Losses charged to allowance			(1,890)	(492)	(1,893)
Recoveries credited to allowance			119	963	107
Net (losses) recoveries charged to allowance			(1,771)	471	(1,786)
Provision charged to operations			(1,267)	615	(3,998)
Balance at the end of the period			16,731	19,769	18,683
Commercial Real Estate: Multifamily
Allowance for probable loan losses
Balance at the beginning of the period		1,248	1,248	846	776
Losses charged to allowance			(180)
Net (losses) recoveries charged to allowance			(180)
Provision charged to operations			(262)	402	70
Balance at the end of the period			806	1,248	846
Residential First Lien
Allowance for probable loan losses
Balance at the beginning of the period		3,509	3,509	3,589	3,812
Losses charged to allowance			(70)	(157)	(351)
Recoveries credited to allowance			21	30	49
Net (losses) recoveries charged to allowance			(49)	(127)	(302)
Provision charged to operations			(1,005)	47	79
Balance at the end of the period			2,455	3,509	3,589
Residential Junior Lien
Allowance for probable loan losses
Balance at the beginning of the period		5,321	5,321	4,683	4,249
Losses charged to allowance			(331)	(275)	(661)
Recoveries credited to allowance			278	431	242
Net (losses) recoveries charged to allowance			(53)	156	(419)
Provision charged to operations			(1,552)	482	853
Balance at the end of the period			3,716	5,321	4,683
Consumer
Allowance for probable loan losses
Balance at the beginning of the period		638	638	660	750
Losses charged to allowance			(414)	(704)	(719)
Recoveries credited to allowance			69	170	210
Net (losses) recoveries charged to allowance			(345)	(534)	(509)
Provision charged to operations			238	512	419
Balance at the end of the period			531	638	660
Foreign
Allowance for probable loan losses
Balance at the beginning of the period		$ 1,152	1,152	1,060	1,133
Losses charged to allowance			(41)		(51)
Recoveries credited to allowance			19	10	50
Net (losses) recoveries charged to allowance			(22)	10	(1)
Provision charged to operations			(246)	82	(72)
Balance at the end of the period			$ 884	$ 1,152	$ 1,060

Allowance for Probable Loan L63

Allowance for Probable Loan Losses (Impairment By Loan Class) (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Loan loss allowances, impaired financing receivable, evaluated individually or collectively
Loans Individually Evaluated for Impairment, Recorded Investment	$ 48,405	$ 60,448
Loans Individually Evaluated for Impairment, Allowance	961	2,206
Loans Collectively Evaluated for Impairment, Recorded Investment	5,916,283	5,890,466
Loans Collectively Evaluated for Impairment, Allowance	63,700	64,782
Commercial
Loan loss allowances, impaired financing receivable, evaluated individually or collectively
Loans Individually Evaluated for Impairment, Recorded Investment	22,412	30,946
Loans Individually Evaluated for Impairment, Allowance		1,704
Loans Collectively Evaluated for Impairment, Recorded Investment	887,255	935,905
Loans Collectively Evaluated for Impairment, Allowance	25,649	19,727
Commercial Real Estate: Other Construction and Land Development
Loan loss allowances, impaired financing receivable, evaluated individually or collectively
Loans Individually Evaluated for Impairment, Recorded Investment	4,776	6,221
Loans Individually Evaluated for Impairment, Allowance	371	100
Loans Collectively Evaluated for Impairment, Recorded Investment	1,712,099	1,643,606
Loans Collectively Evaluated for Impairment, Allowance	13,518	13,820
Commercial Real Estate: Farmland & Commercial
Loan loss allowances, impaired financing receivable, evaluated individually or collectively
Loans Individually Evaluated for Impairment, Recorded Investment	10,810	13,806
Loans Individually Evaluated for Impairment, Allowance	546	202
Loans Collectively Evaluated for Impairment, Recorded Investment	1,932,260	1,981,643
Loans Collectively Evaluated for Impairment, Allowance	16,185	19,567
Commercial Real Estate: Multifamily
Loan loss allowances, impaired financing receivable, evaluated individually or collectively
Loans Individually Evaluated for Impairment, Recorded Investment	552	777
Loans Individually Evaluated for Impairment, Allowance		200
Loans Collectively Evaluated for Impairment, Recorded Investment	139,914	138,671
Loans Collectively Evaluated for Impairment, Allowance	806	1,048
Residential First Lien
Loan loss allowances, impaired financing receivable, evaluated individually or collectively
Loans Individually Evaluated for Impairment, Recorded Investment	6,836	5,699
Loans Individually Evaluated for Impairment, Allowance	44
Loans Collectively Evaluated for Impairment, Recorded Investment	415,068	404,545
Loans Collectively Evaluated for Impairment, Allowance	2,411	3,509
Residential Junior Lien
Loan loss allowances, impaired financing receivable, evaluated individually or collectively
Loans Individually Evaluated for Impairment, Recorded Investment	978	950
Loans Collectively Evaluated for Impairment, Recorded Investment	609,340	551,388
Loans Collectively Evaluated for Impairment, Allowance	3,716	5,321
Consumer
Loan loss allowances, impaired financing receivable, evaluated individually or collectively
Loans Individually Evaluated for Impairment, Recorded Investment	1,295	1,297
Loans Collectively Evaluated for Impairment, Recorded Investment	53,873	56,447
Loans Collectively Evaluated for Impairment, Allowance	531	638
Foreign
Loan loss allowances, impaired financing receivable, evaluated individually or collectively
Loans Individually Evaluated for Impairment, Recorded Investment	746	752
Loans Collectively Evaluated for Impairment, Recorded Investment	166,474	178,261
Loans Collectively Evaluated for Impairment, Allowance	$ 884	$ 1,152

Allowance for Probable Loan L64

Allowance for Probable Loan Losses (Non-accrual Basis By Loan Class) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Loan loss allowances, financing receivable past due
Non-accrual loans, total	$ 37,245,000	$ 47,685,000	$ 63,559,000
Reduced interest income on non-accrual loans	2,461,800	3,298,000	$ 4,013,000
Commercial
Loan loss allowances, financing receivable past due
Non-accrual loans, total	22,369,000	30,894,000
Commercial Real Estate: Other Construction and Land Development
Loan loss allowances, financing receivable past due
Non-accrual loans, total	4,776,000	3,668,000
Commercial Real Estate: Farmland & Commercial
Loan loss allowances, financing receivable past due
Non-accrual loans, total	8,314,000	11,543,000
Commercial Real Estate: Multifamily
Loan loss allowances, financing receivable past due
Non-accrual loans, total	552,000	777,000
Residential First Lien
Loan loss allowances, financing receivable past due
Non-accrual loans, total	655,000	383,000
Residential Junior Lien
Loan loss allowances, financing receivable past due
Non-accrual loans, total	166,000	21,000
Consumer
Loan loss allowances, financing receivable past due
Non-accrual loans, total	26,000	34,000
Foreign
Loan loss allowances, financing receivable past due
Non-accrual loans, total	$ 387,000	$ 365,000

Allowance for Probable Loan L65

Allowance for Probable Loan Losses (Impaired Loans) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Interest Recognized
Total trouble debt restructuring	$ 22,418	$ 15,719
Period of charge off for past due unsecured commercial loans	90 days
Class of Financing Receivable
Recorded investment:
Total impaired loans with related allowance	$ 4,828	8,785
Total impaired loans with no related allowance	42,577	51,663
Unpaid principal balance:
Total impaired loans with an allowance recorded	5,981	9,233
Total impaired loans with no related allowance recorded	74,677	64,788
Related Allowance	961	2,206
Average recorded investment:
Total impaired loans with an allowance recorded	5,821	5,694
Total impaired loans with no related allowance recorded	40,450	53,575
Interest Recognized
Total impaired loans with an allowance recorded		92
Total impaired loans with no related allowance recorded	547	441
Commercial
Interest Recognized
Total trouble debt restructuring	10,710	2,419
Commercial | Class of Financing Receivable
Recorded investment:
Total impaired loans with related allowance		4,016
Total impaired loans with no related allowance	21,412	26,930
Unpaid principal balance:
Total impaired loans with an allowance recorded		4,156
Total impaired loans with no related allowance recorded	50,737	38,845
Related Allowance		1,704
Average recorded investment:
Total impaired loans with an allowance recorded		3,758
Total impaired loans with no related allowance recorded	19,354	30,847
Interest Recognized
Total impaired loans with no related allowance recorded	3	4
Commercial Real Estate: Other Construction and Land Development
Interest Recognized
Total trouble debt restructuring		2,553
Commercial Real Estate: Other Construction and Land Development | Class of Financing Receivable
Recorded investment:
Total impaired loans with related allowance	1,958	167
Total impaired loans with no related allowance	2,818	6,054
Unpaid principal balance:
Total impaired loans with an allowance recorded	1,971	169
Total impaired loans with no related allowance recorded	4,419	6,204
Related Allowance	371	100
Average recorded investment:
Total impaired loans with an allowance recorded	2,512	893
Total impaired loans with no related allowance recorded	2,336	6,455
Interest Recognized
Total impaired loans with no related allowance recorded	67	85
Commercial Real Estate: Farmland & Commercial
Interest Recognized
Total trouble debt restructuring	3,086	2,853
Commercial Real Estate: Farmland & Commercial | Class of Financing Receivable
Recorded investment:
Total impaired loans with related allowance	2,808	4,003
Total impaired loans with no related allowance	8,002	9,803
Unpaid principal balance:
Total impaired loans with an allowance recorded	3,948	4,309
Total impaired loans with no related allowance recorded	9,054	10,717
Related Allowance	546	202
Average recorded investment:
Total impaired loans with an allowance recorded	3,247	444
Total impaired loans with no related allowance recorded	8,523	7,258
Interest Recognized
Total impaired loans with an allowance recorded		92
Total impaired loans with no related allowance recorded	110
Commercial Real Estate: Multifamily | Class of Financing Receivable
Recorded investment:
Total impaired loans with related allowance		599
Total impaired loans with no related allowance	552	178
Unpaid principal balance:
Total impaired loans with an allowance recorded		599
Total impaired loans with no related allowance recorded	562	178
Related Allowance		200
Average recorded investment:
Total impaired loans with an allowance recorded		599
Total impaired loans with no related allowance recorded	401	205
Residential First Lien
Interest Recognized
Total trouble debt restructuring	6,181	5,316
Residential First Lien | Class of Financing Receivable
Recorded investment:
Total impaired loans with related allowance	62
Total impaired loans with no related allowance	6,774	5,699
Unpaid principal balance:
Total impaired loans with an allowance recorded	62
Total impaired loans with no related allowance recorded	6,847	5,822
Related Allowance	44
Average recorded investment:
Total impaired loans with an allowance recorded	62
Total impaired loans with no related allowance recorded	6,860	5,853
Interest Recognized
Total impaired loans with no related allowance recorded	298	264
Residential Junior Lien
Interest Recognized
Total trouble debt restructuring	812	929
Residential Junior Lien | Class of Financing Receivable
Recorded investment:
Total impaired loans with no related allowance	978	950
Unpaid principal balance:
Total impaired loans with no related allowance recorded	1,017	972
Average recorded investment:
Total impaired loans with no related allowance recorded	1,011	1,182
Interest Recognized
Total impaired loans with no related allowance recorded	52	68
Consumer
Interest Recognized
Total trouble debt restructuring	1,269	1,263
Consumer | Class of Financing Receivable
Recorded investment:
Total impaired loans with no related allowance	1,295	1,297
Unpaid principal balance:
Total impaired loans with no related allowance recorded	1,295	1,298
Average recorded investment:
Total impaired loans with no related allowance recorded	1,214	1,227
Interest Recognized
Total impaired loans with no related allowance recorded	1	3
Foreign
Interest Recognized
Total trouble debt restructuring	360	386
Foreign | Class of Financing Receivable
Recorded investment:
Total impaired loans with no related allowance	746	752
Unpaid principal balance:
Total impaired loans with no related allowance recorded	746	752
Average recorded investment:
Total impaired loans with no related allowance recorded	751	548
Interest Recognized
Total impaired loans with no related allowance recorded	$ 16	$ 17

Allowance for Probable Loan L66

Allowance for Probable Loan Losses (Aging By Loan Class) (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Financing receivable recorded investment
Past due	$ 61,400,000	$ 68,273,000
Past due 90 days or Greater and Still Accruing	5,226,000	11,616,000	$ 9,988,000
Loans, current	5,903,288,000	5,882,641,000
Total loans	5,964,688,000	5,950,914,000
30 to 59 Days
Financing receivable recorded investment
Past due	17,299,000	15,584,000
60 to 89 Days
Financing receivable recorded investment
Past due	6,327,000	5,219,000
90 Days or Greater
Financing receivable recorded investment
Past due	37,774,000	47,470,000
Commercial
Financing receivable recorded investment
Past due	26,033,000	32,916,000
Past due 90 days or Greater and Still Accruing	392,000	2,566,000
Loans, current	883,634,000	933,936,000
Total loans	909,667,000	966,852,000
Commercial | 30 to 59 Days
Financing receivable recorded investment
Past due	4,081,000	3,361,000
Commercial | 60 to 89 Days
Financing receivable recorded investment
Past due	829,000	940,000
Commercial | 90 Days or Greater
Financing receivable recorded investment
Past due	21,123,000	28,615,000
Commercial Real Estate: Other Construction and Land Development
Financing receivable recorded investment
Past due	6,354,000	3,988,000
Past due 90 days or Greater and Still Accruing	9,000
Loans, current	1,710,521,000	1,645,839,000
Total loans	1,716,875,000	1,649,827,000
Commercial Real Estate: Other Construction and Land Development | 30 to 59 Days
Financing receivable recorded investment
Past due	1,502,000	193,000
Commercial Real Estate: Other Construction and Land Development | 60 to 89 Days
Financing receivable recorded investment
Past due	396,000	293,000
Commercial Real Estate: Other Construction and Land Development | 90 Days or Greater
Financing receivable recorded investment
Past due	4,456,000	3,502,000
Commercial Real Estate: Farmland & Commercial
Financing receivable recorded investment
Past due	12,658,000	12,304,000
Past due 90 days or Greater and Still Accruing	289,000	3,373,000
Loans, current	1,930,412,000	1,983,144,000
Total loans	1,943,070,000	1,995,448,000
Commercial Real Estate: Farmland & Commercial | 30 to 59 Days
Financing receivable recorded investment
Past due	3,454,000	2,684,000
Commercial Real Estate: Farmland & Commercial | 60 to 89 Days
Financing receivable recorded investment
Past due	3,054,000	1,328,000
Commercial Real Estate: Farmland & Commercial | 90 Days or Greater
Financing receivable recorded investment
Past due	6,150,000	8,292,000
Commercial Real Estate: Multifamily
Financing receivable recorded investment
Past due	596,000	1,317,000
Past due 90 days or Greater and Still Accruing		49,000
Loans, current	139,870,000	138,131,000
Total loans	140,466,000	139,448,000
Commercial Real Estate: Multifamily | 30 to 59 Days
Financing receivable recorded investment
Past due	44,000	49,000
Commercial Real Estate: Multifamily | 60 to 89 Days
Financing receivable recorded investment
Past due		442,000
Commercial Real Estate: Multifamily | 90 Days or Greater
Financing receivable recorded investment
Past due	552,000	826,000
Residential First Lien
Financing receivable recorded investment
Past due	11,108,000	11,139,000
Past due 90 days or Greater and Still Accruing	3,756,000	4,093,000
Loans, current	410,796,000	399,105,000
Total loans	421,904,000	410,244,000
Residential First Lien | 30 to 59 Days
Financing receivable recorded investment
Past due	5,615,000	5,299,000
Residential First Lien | 60 to 89 Days
Financing receivable recorded investment
Past due	1,350,000	1,545,000
Residential First Lien | 90 Days or Greater
Financing receivable recorded investment
Past due	4,143,000	4,295,000
Residential Junior Lien
Financing receivable recorded investment
Past due	1,480,000	1,772,000
Past due 90 days or Greater and Still Accruing	382,000	640,000
Loans, current	608,838,000	550,566,000
Total loans	610,318,000	552,338,000
Residential Junior Lien | 30 to 59 Days
Financing receivable recorded investment
Past due	762,000	713,000
Residential Junior Lien | 60 to 89 Days
Financing receivable recorded investment
Past due	178,000	413,000
Residential Junior Lien | 90 Days or Greater
Financing receivable recorded investment
Past due	540,000	646,000
Consumer
Financing receivable recorded investment
Past due	1,418,000	1,308,000
Past due 90 days or Greater and Still Accruing	387,000	453,000
Loans, current	53,750,000	56,436,000
Total loans	55,168,000	57,744,000
Consumer | 30 to 59 Days
Financing receivable recorded investment
Past due	910,000	646,000
Consumer | 60 to 89 Days
Financing receivable recorded investment
Past due	95,000	175,000
Consumer | 90 Days or Greater
Financing receivable recorded investment
Past due	413,000	487,000
Foreign
Financing receivable recorded investment
Past due	1,753,000	3,529,000
Past due 90 days or Greater and Still Accruing	11,000	442,000
Loans, current	165,467,000	175,484,000
Total loans	167,220,000	179,013,000
Foreign | 30 to 59 Days
Financing receivable recorded investment
Past due	931,000	2,639,000
Foreign | 60 to 89 Days
Financing receivable recorded investment
Past due	425,000	83,000
Foreign | 90 Days or Greater
Financing receivable recorded investment
Past due	$ 397,000	$ 807,000

Allowance for Probable Loan L67

Allowance for Probable Loan Losses (Portfolio Credit Quality By Loan Class) (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Loan portfolio by credit quality indicator
Portfolio, total	$ 5,964,688	$ 5,950,914
Pass
Loan portfolio by credit quality indicator
Portfolio, total	5,544,614	5,529,707
Special Review
Loan portfolio by credit quality indicator
Portfolio, total	101,679	45,599
Watch List - Pass
Loan portfolio by credit quality indicator
Portfolio, total	60,993	83,069
Watch List - Substandard
Loan portfolio by credit quality indicator
Portfolio, total	208,997	232,091
Watch - List Impaired
Loan portfolio by credit quality indicator
Portfolio, total	48,405	60,448
Commercial
Loan portfolio by credit quality indicator
Portfolio, total	909,667	966,852
Commercial | Pass
Loan portfolio by credit quality indicator
Portfolio, total	720,350	771,999
Commercial | Special Review
Loan portfolio by credit quality indicator
Portfolio, total	90,746	42,152
Commercial | Watch List - Pass
Loan portfolio by credit quality indicator
Portfolio, total	1,121	31,539
Commercial | Watch List - Substandard
Loan portfolio by credit quality indicator
Portfolio, total	75,038	90,215
Commercial | Watch - List Impaired
Loan portfolio by credit quality indicator
Portfolio, total	22,412	30,946
Commercial Real Estate: Other Construction and Land Development
Loan portfolio by credit quality indicator
Portfolio, total	1,716,875	1,649,827
Commercial Real Estate: Other Construction and Land Development | Pass
Loan portfolio by credit quality indicator
Portfolio, total	1,648,633	1,582,683
Commercial Real Estate: Other Construction and Land Development | Special Review
Loan portfolio by credit quality indicator
Portfolio, total	1,986	1,164
Commercial Real Estate: Other Construction and Land Development | Watch List - Pass
Loan portfolio by credit quality indicator
Portfolio, total		13,765
Commercial Real Estate: Other Construction and Land Development | Watch List - Substandard
Loan portfolio by credit quality indicator
Portfolio, total	61,480	45,994
Commercial Real Estate: Other Construction and Land Development | Watch - List Impaired
Loan portfolio by credit quality indicator
Portfolio, total	4,776	6,221
Commercial Real Estate: Farmland & Commercial
Loan portfolio by credit quality indicator
Portfolio, total	1,943,070	1,995,448
Commercial Real Estate: Farmland & Commercial | Pass
Loan portfolio by credit quality indicator
Portfolio, total	1,792,542	1,849,587
Commercial Real Estate: Farmland & Commercial | Special Review
Loan portfolio by credit quality indicator
Portfolio, total	7,983	2,283
Commercial Real Estate: Farmland & Commercial | Watch List - Pass
Loan portfolio by credit quality indicator
Portfolio, total	59,872	37,765
Commercial Real Estate: Farmland & Commercial | Watch List - Substandard
Loan portfolio by credit quality indicator
Portfolio, total	71,863	92,008
Commercial Real Estate: Farmland & Commercial | Watch - List Impaired
Loan portfolio by credit quality indicator
Portfolio, total	10,810	13,806
Commercial Real Estate: Multifamily
Loan portfolio by credit quality indicator
Portfolio, total	140,466	139,448
Commercial Real Estate: Multifamily | Pass
Loan portfolio by credit quality indicator
Portfolio, total	139,914	138,546
Commercial Real Estate: Multifamily | Watch List - Substandard
Loan portfolio by credit quality indicator
Portfolio, total		125
Commercial Real Estate: Multifamily | Watch - List Impaired
Loan portfolio by credit quality indicator
Portfolio, total	552	777
Residential First Lien
Loan portfolio by credit quality indicator
Portfolio, total	421,904	410,244
Residential First Lien | Pass
Loan portfolio by credit quality indicator
Portfolio, total	413,638	401,053
Residential First Lien | Special Review
Loan portfolio by credit quality indicator
Portfolio, total	814
Residential First Lien | Watch List - Substandard
Loan portfolio by credit quality indicator
Portfolio, total	616	3,492
Residential First Lien | Watch - List Impaired
Loan portfolio by credit quality indicator
Portfolio, total	6,836	5,699
Residential Junior Lien
Loan portfolio by credit quality indicator
Portfolio, total	610,318	552,338
Residential Junior Lien | Pass
Loan portfolio by credit quality indicator
Portfolio, total	609,190	551,138
Residential Junior Lien | Special Review
Loan portfolio by credit quality indicator
Portfolio, total	150
Residential Junior Lien | Watch List - Substandard
Loan portfolio by credit quality indicator
Portfolio, total		250
Residential Junior Lien | Watch - List Impaired
Loan portfolio by credit quality indicator
Portfolio, total	978	950
Consumer
Loan portfolio by credit quality indicator
Portfolio, total	55,168	57,744
Consumer | Pass
Loan portfolio by credit quality indicator
Portfolio, total	53,873	56,440
Consumer | Watch List - Substandard
Loan portfolio by credit quality indicator
Portfolio, total		7
Consumer | Watch - List Impaired
Loan portfolio by credit quality indicator
Portfolio, total	1,295	1,297
Foreign
Loan portfolio by credit quality indicator
Portfolio, total	167,220	179,013
Foreign | Pass
Loan portfolio by credit quality indicator
Portfolio, total	166,474	178,261
Foreign | Watch - List Impaired
Loan portfolio by credit quality indicator
Portfolio, total	$ 746	$ 752

Bank Premises and Equipment (De

Bank Premises and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Bank premises and equipment
Less: accumulated depreciation	$ (420,279)	$ (403,165)
Bank premises and equipment, net	527,583	516,716
Bank Building and Improvements
Bank premises and equipment
Bank premises and equipment, gross	$ 542,063	523,022
Bank Building and Improvements | Minimum
Bank premises and equipment
Estimated useful lives	5 years
Bank Building and Improvements | Maximum
Bank premises and equipment
Estimated useful lives	40 years
Furniture, Equipment and Vehicles
Bank premises and equipment
Bank premises and equipment, gross	$ 280,586	274,923
Furniture, Equipment and Vehicles | Minimum
Bank premises and equipment
Estimated useful lives	1 year
Furniture, Equipment and Vehicles | Maximum
Bank premises and equipment
Estimated useful lives	20 years
Land
Bank premises and equipment
Bank premises and equipment, gross	$ 125,213	$ 121,936
Land, Building, Furniture, Fixture and Equipment | Minimum
Bank premises and equipment
Estimated useful lives	7 years
Land, Building, Furniture, Fixture and Equipment | Maximum
Bank premises and equipment
Estimated useful lives	27 years

Goodwill and Other Intangible69

Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Identified intangible assets
Carrying Amount	$ 60,697	$ 60,697
Accumulated Amortization	60,672	60,544
Total identified intangibles, Net	25	153
Amortization expense	128	644	$ 2,389
Estimated amortization expense for each of the five succeeding fiscal years and thereafter
2,017	25
Total	25
Changes in carrying amount of goodwill	0	0
Core deposit premium
Identified intangible assets
Carrying Amount	58,675	58,675
Accumulated Amortization	58,650	58,522
Total identified intangibles, Net	25	153
Identified intangible (contract rights)
Identified intangible assets
Carrying Amount	2,022	2,022
Accumulated Amortization	$ 2,022	$ 2,022

Deposits (Details)

Deposits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Demand non-interest bearing
Domestic	$ 2,509,544	$ 2,536,192
Foreign	648,507	613,426
Total demand non-interest bearing	3,158,051	3,149,618
Savings and interest bearing demand
Domestic	2,589,675	2,450,102
Foreign	614,053	570,120
Total savings and interest bearing demand	3,203,728	3,020,222
$100,000 or more
Time, certificate of deposit	1,586,265
Less than $100,000
Domestic	389,682	430,102
Foreign	272,363	287,563
Total time, certificates of deposit	2,248,310	2,366,413
Total deposits	8,610,089	8,536,253
Savings and interest bearing demand
Domestic	3,922	3,026	$ 2,998
Foreign	640	567	599
Total savings and interest bearing demand	4,562	3,593	3,597
$100,000 or more
Domestic	3,881	4,693	4,615
Foreign	3,929	4,116	4,529
Less than $100,000
Domestic	1,447	1,680	2,074
Foreign	706	744	815
Total time, certificates of deposit	9,963	11,233	12,033
Total interest expense on deposits	14,525	14,826	$ 15,630
Domestic
$100,000 or more
Time, certificate of deposit	748,104	800,393
Foreign
$100,000 or more
Time, certificate of deposit	$ 838,161	$ 848,355

Deposits (Scheduled Maturities)

Deposits (Scheduled Maturities) (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Scheduled maturities of time deposits
2,017	$ 2,021,655,000
2,018	156,078,000
2,019	52,777,000
2,020	17,064,000
2,021	638,000
Thereafter	98,000
Total time, certificates of deposit	2,248,310,000	$ 2,366,413,000
Time Deposits 250,000 or exceed	1,005,000	$ 1,021,000
Scheduled maturities of time deposits in amounts of $100,000 or more
Due within 3 months or less	605,093,000
Due after 3 months and within 6 months	390,668,000
Due after 6 months and within 12 months	430,447,000
Due after 12 months	160,057,000
Total	$ 1,586,265,000

Securities Sold Under Repurch72

Securities Sold Under Repurchase Agreements (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Collateral Securities and Repurchase Borrowing agreements
Collateralized Securities, Book Value of Securities Sold	$ 690,151,000	$ 977,714,000
Collateralized securities, Fair Value of Securities Sold	679,811,000	976,400,000
Repurchase Borrowing, Balance of Liability	$ 504,985,000	$ 827,772,000
Repurchase Borrowing, Weighted Average Interest Rate (as a percent)	2.46%	2.66%
Average outstanding amount	$ 759,458,000	$ 872,611,000
Maximum amount outstanding at any month end	819,155,000	907,211,000
Overnight agreements
Collateral Securities and Repurchase Borrowing agreements
Collateralized Securities, Book Value of Securities Sold	295,282,000	316,041,000
Collateralized securities, Fair Value of Securities Sold	292,286,000	317,799,000
Repurchase Borrowing, Balance of Liability	$ 190,915,000	$ 250,702,000
Repurchase Borrowing, Weighted Average Interest Rate (as a percent)	0.15%	0.15%
1 to 29 days
Collateral Securities and Repurchase Borrowing agreements
Collateralized Securities, Book Value of Securities Sold	$ 10,250,000	$ 10,199,000
Collateralized securities, Fair Value of Securities Sold	10,148,000	10,114,000
Repurchase Borrowing, Balance of Liability	$ 9,863,000	$ 9,798,000
Repurchase Borrowing, Weighted Average Interest Rate (as a percent)	0.50%	0.50%
30 to 90 days
Collateral Securities and Repurchase Borrowing agreements
Collateralized Securities, Book Value of Securities Sold	$ 2,315,000	$ 4,388,000
Collateralized securities, Fair Value of Securities Sold	2,317,000	4,356,000
Repurchase Borrowing, Balance of Liability	$ 2,300,000	$ 4,320,000
Repurchase Borrowing, Weighted Average Interest Rate (as a percent)	0.33%	0.31%
Over 90 days
Collateral Securities and Repurchase Borrowing agreements
Collateralized Securities, Book Value of Securities Sold	$ 382,304,000	$ 647,086,000
Collateralized securities, Fair Value of Securities Sold	375,060,000	644,131,000
Repurchase Borrowing, Balance of Liability	$ 301,907,000	$ 562,952,000
Repurchase Borrowing, Weighted Average Interest Rate (as a percent)	4.01%	3.84%

Other Borrowed Funds (Details)

Other Borrowed Funds (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Federal Home Loan Bank advances
Other borrowed funds	$ 733,375	$ 505,750
Federal Home Loan Bank advances - short-term
Federal Home Loan Bank advances
Other borrowed funds	$ 583,375	$ 355,750
Rate on balance outstanding at year end (as a percent)	0.66%	0.37%
Average daily balance	$ 483,379	$ 859,220
Average rate (as a percent)	0.47%	0.19%
Maximum amount outstanding at any month end	$ 600,875	$ 1,239,200
Federal Home Loan Bank advances - long-term
Federal Home Loan Bank advances
Other borrowed funds	$ 150,000	$ 150,000
Rate on balance outstanding at year end (as a percent)	0.58%	0.31%
Average daily balance	$ 150,000	$ 5,314
Average rate (as a percent)	0.58%	0.31%
Maximum amount outstanding at any month end	$ 150,000	$ 150,000

Junior Subordinated Deferrable

Junior Subordinated Deferrable Interest Debentures (Details)	Nov. 01, 2016USD ($)	Jul. 29, 2015USD ($)	Dec. 31, 2016USD ($)item	Dec. 31, 2015USD ($)
Junior subordinated deferrable interest debentures, major types of business trusts
Number of statutory business trusts issuing trust preferred securities | item			6
Junior subordinated deferrable interest debentures			$ 160,416,000	$ 161,416,000
Maximum number of consecutive quarterly period available for deferral of interest payment on Trusts VI, VII, VIII, IX, X, XI and XII | item			20
Percentage of capital securities issued by trust qualifying as Tier I capital, maximum			25.00%
Percentage of capital securities issued by trust qualifying as Tier II capital, minimum			25.00%
Capital securities issued by the trust, qualifying as Tier I capital			$ 160,416,000	161,416,000
Trust XI
Junior subordinated deferrable interest debentures, major types of business trusts
Redemption price discount (as a percent)	24.00%
Retirement of capital securities	$ 1,000,000	$ 1,000,000
Junior subordinated deferrable interest debentures	$ 26,990,000	$ 27,990,000	25,990,000
Trust X and XI
Junior subordinated deferrable interest debentures, major types of business trusts
Redemption price discount (as a percent)		24.50%
Trust X
Junior subordinated deferrable interest debentures, major types of business trusts
Retirement of capital securities		$ 13,000,000
Junior subordinated deferrable interest debentures		$ 34,021,000	21,021,000
Parent Company
Junior subordinated deferrable interest debentures, major types of business trusts
Junior subordinated deferrable interest debentures			$ 160,416,000	$ 161,416,000

Junior Subordinated Deferrabl75

Junior Subordinated Deferrable Interest Debentures (Key Information) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Nov. 01, 2016	Dec. 31, 2015	Jul. 29, 2015
Junior subordinated deferrable interest debentures, major types of business trusts
Junior subordinated deferrable interest debentures	$ 160,416,000		$ 161,416,000
Trust VI
Junior subordinated deferrable interest debentures, major types of business trusts
Junior subordinated deferrable interest debentures	$ 25,774,000
Interest rate (as a percent)	4.36%
Interest rate index	3.45
Trust VIII
Junior subordinated deferrable interest debentures, major types of business trusts
Junior subordinated deferrable interest debentures	$ 25,774,000
Interest rate (as a percent)	3.93%
Interest rate index	3.05
Trust IX
Junior subordinated deferrable interest debentures, major types of business trusts
Junior subordinated deferrable interest debentures	$ 41,238,000
Interest rate (as a percent)	2.47%
Interest rate index	1.62
Trust X
Junior subordinated deferrable interest debentures, major types of business trusts
Junior subordinated deferrable interest debentures	$ 21,021,000			$ 34,021,000
Interest rate (as a percent)	2.54%
Interest rate index	1.65
Trust XI
Junior subordinated deferrable interest debentures, major types of business trusts
Junior subordinated deferrable interest debentures	$ 25,990,000	$ 26,990,000		$ 27,990,000
Interest rate (as a percent)	2.47%
Interest rate index	1.62
Trust XII
Junior subordinated deferrable interest debentures, major types of business trusts
Junior subordinated deferrable interest debentures	$ 20,619,000
Interest rate (as a percent)	2.38%
Interest rate index	1.45
Parent Company
Junior subordinated deferrable interest debentures, major types of business trusts
Junior subordinated deferrable interest debentures	$ 160,416,000		$ 161,416,000

Earnings per Share ("EPS") (Det

Earnings per Share ("EPS") (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Basic EPS
Net Income (Numerator)	$ 133,932	$ 136,726	$ 153,151
Shares (Denominator)	65,967,989	66,411,193	66,872,500
Per Share Amount	$ 2.03	$ 2.06	$ 2.29
Diluted EPS
Net Income (Numerator)	$ 133,932	$ 136,726	$ 153,151
Potential dilutive common shares and warrants	345,501	225,160	183,956
Shares (Denominator)	66,313,490	66,636,353	67,056,456
Per Share Amount (in dollars per share)	$ 2.02	$ 2.05	$ 2.28

Employees' Profit Sharing Plan

Employees' Profit Sharing Plan (Details) - Deferred profit sharing - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Employees' profit sharing plan
Minimum period of continuous employment to be fully vested	1 year
Profit sharing costs	$ 3,650,000	$ 3,525,000	$ 3,510,000

International Operations (Detai

International Operations (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Loans:
Total loans	$ 5,964,688,000	$ 5,950,914,000
Less allowance for probable loan losses	(64,661,000)	(66,988,000)	$ (64,828,000)	$ (70,161,000)
Net loans	5,900,027,000	5,883,926,000
Accrued interest receivable	32,172,000	31,572,000
International Banking Services
Loans:
Accrued interest receivable	603,000	697,000
Outstanding standby and commercial letters of credit	93,154,000
Revenues	5,495,000	6,113,000	$ 6,034,000
International Banking Services | Foreign
Loans:
Total loans	167,220,000	179,013,000
Less allowance for probable loan losses	(884,000)	(1,152,000)
Net loans	166,336,000	177,861,000
International Banking Services | Foreign | Commercial
Loans:
Total loans	124,079,000	138,125,000
International Banking Services | Foreign | Others
Loans:
Total loans	$ 43,141,000	$ 40,888,000

Income Taxes (Current and Defer

Income Taxes (Current and Deferred Portions of Net Income Tax Expense) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Current
U.S.	$ 52,403	$ 65,196	$ 72,561
State	3,362	5,258	5,252
Foreign		(6)	1
Total current taxes	55,765	70,448	77,814
Deferred
U.S.	7,279	(261)	(969)
State	27	(71)	(58)
Total deferred taxes	7,306	(332)	(1,027)
Total income taxes	$ 63,071	$ 70,116	$ 76,787

Income Taxes (Income Tax Expens

Income Taxes (Income Tax Expense Differences from the Amount Computed by Applying the U.S. Federal Income Tax Rate) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Taxes
Income tax expense differences from the amount computed by applying the U.S. Federal income tax rate to income before income taxes (as a percent)	35.00%	35.00%	35.00%
Reasons for the difference of income tax expense
Computed expected tax expense	$ 69,253	$ 72,389	$ 80,560
Change in taxes resulting from:
Tax-exempt interest income	(3,940)	(3,910)	(4,554)
State tax, net of federal income taxes and tax credit	3,287	3,371	3,377
Other investment income	(3,694)	(3,540)	(3,615)
Other	(1,835)	1,806	1,019
Total income taxes	$ 63,071	$ 70,116	$ 76,787

Income Taxes (Deferred Tax Asse

Income Taxes (Deferred Tax Assets and Deferred Tax Liabilities) (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Deferred tax assets:
Loans receivable, principally due to the allowance for probable loan losses	$ 24,315	$ 25,689
Other real estate owned	3,652	3,224
Impairment charges on available-for-sale securities	6,086	5,959
Accrued expenses	137	137
Net unrealized gains on available for sale investment securities	14,791
Other	6,917	7,411
Total deferred tax assets	55,898	42,420
Deferred tax liabilities:
Bank premises and equipment, principally due to differences on depreciation	(19,837)	(18,266)
Net unrealized gains on available for sale investment securities		(1,171)
Identified intangible assets and goodwill	(21,386)	(20,169)
Other	(16,300)	(13,099)
Total deferred tax liabilities	57,523	52,705
Total deferred tax liability	$ (1,625)	$ (10,285)

Stock Options (Details)

Stock Options (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Apr. 05, 2012
Stock options under 2012 Plan
Stock option details
Shares available for future grants	198,675			800,000
Maximum exercisable period for options granted	10 years
Black-Scholes-Merton option valuation model assumptions
Expected Life	7 years 7 months 10 days	7 years 7 months 10 days
Dividend yield (as a percent)	2.50%	2.36%
Interest rate (as a percent)	1.50%	1.91%
Volatility (as a percent)	41.32%	46.52%
Stock option activity
Options outstanding at the beginning of the period (in shares)	871,727
Plus: Options granted (in shares)	9,000
Less:
Options exercised (in shares)	43,925
Options expired (in shares)	2,000
Options forfeited (in shares)	34,300
Options outstanding at the end of the period (in shares)	800,502	871,727
Options fully vested and exercisable at the end of the period (in shares)	266,392
Stock Options, Weighted Average Exercise Price
Options outstanding at the beginning, weighted average exercise price (in dollars per share)	$ 19.08
Plus: Options granted, weighted average exercise price (in dollars per share)	26.14
Less:
Options exercised, weighted average exercise price (in dollars per share)	12.51
Options expired, weighted average exercise price (in dollars per share)	20.83
Options forfeited, weighted average exercise price (in dollars per share)	21.17
Options outstanding at the end, weighted average exercise price (in dollars per share)	19.43	$ 19.08
Options fully vested and exercisable at the end, weighted average exercise price (in dollars per share)	$ 15.91
Stock Options, Weighted Average Remaining Contractual Term
Options outstanding at the end, weighted average remaining contractual term	5 years 10 months 28 days
Options fully vested and exercisable at the end, weighted average remaining contractual term	3 years 8 months 16 days
Stock Options, Aggregate Intrinsic Value
Options outstanding at the end, aggregate intrinsic value	$ 17,108,000
Options fully vested and exercisable at the end, aggregate intrinsic value	6,630,000
Stock-based compensation expense	1,082,000	$ 1,172,000	$ 1,058,000
Stock-based compensation cost, unrecognized, related to non-vested options	$ 2,322,000
Stock-based compensation cost, unrecognized, related to non-vested options, weighted-average period of recognition	1 year 8 months 12 days
Other information pertaining to option activity
Weighted average grant date fair value of stock options granted (in dollars per share)	$ 8.74	$ 9.42	$ 9.07
Total fair value of stock options vested	$ 1,015,000	$ 872,000	$ 376,000
Total intrinsic value of stock options exercised	$ 792,000	$ 781,000	$ 468,000
Incentive stock options granted to 10% shareholders
Stock option details
Maximum exercisable period for options granted	5 years

Long Term Restricted Stock Un83

Long Term Restricted Stock Units (Details) - Plan	1 Months Ended	12 Months Ended
	Dec. 31, 2009item	Dec. 31, 2014USD ($)	Dec. 31, 2012USD ($)
CPP Compliant Long Term RSU Granted for Performance in 2012
Long-Term Restricted Stock Units
Compensation cost			$ 425,000
CPP Compliant Long Term RSU Granted for Performance in 2011
Long-Term Restricted Stock Units
Cash amounts paid on vesting of awards		$ 572,746
RSUs
Long-Term Restricted Stock Units
Minimum number of non-employee members of the Board needed to authorize restricted stock units | item	2

Commitments, Contingent Liabi84

Commitments, Contingent Liabilities and Other Matters (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Commitments, Contingent Liabilities and Other Matters
Total rental expense	$ 5,870,000	$ 6,200,000	$ 7,200,000
Minimum period for non-cancellable sub-leases	1 year
Aggregate future minimum rentals to be received under non-cancellable sub-leases	$ 101,562,000
Approximate cash maintained to satisfy regulatory reserve requirements	111,353,000	$ 104,684,000
Future minimum lease payments due under non-cancellable operating leases
2,017	3,078,000
2,018	2,772,000
2,019	2,726,000
2,020	2,551,000
2,021	1,633,000
Thereafter	88,000
Total	$ 12,848,000

Transactions with Related Par85

Transactions with Related Parties (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Transactions with Related Parties
Aggregate amount receivable from related parties	$ 26,662,000	$ 31,975,000

Financial Instruments with Of86

Financial Instruments with Off-Statement of Condition Risk and Concentrations of Credit Risk (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Maximum
Financial amounts of instruments, whose contract amounts represent credit risks
Credit risk commitment, maximum expiration date	1 year
Commitments to Extend Credit
Financial amounts of instruments, whose contract amounts represent credit risks
Outstanding amount of financial instruments whose, contract amounts represent credit risks	$ 2,262,717,000
Credit Card Lines
Financial amounts of instruments, whose contract amounts represent credit risks
Outstanding amount of financial instruments whose, contract amounts represent credit risks	18,531,000
Standby Letters of Credit
Financial amounts of instruments, whose contract amounts represent credit risks
Outstanding amount of financial instruments whose, contract amounts represent credit risks	88,504,000
Commercial Letters of Credit
Financial amounts of instruments, whose contract amounts represent credit risks
Outstanding amount of financial instruments whose, contract amounts represent credit risks	4,650,000
Unsecured Letters of Credit
Financial amounts of instruments, whose contract amounts represent credit risks
Guarantee obligations, maximum exposure	88,504,000
Unsecured letters of credit	$ 40,738,000	$ 37,454,000

Capital Requirements (Details)

Capital Requirements (Details) - USD ($)	Dec. 23, 2008	Dec. 31, 2016
Capital Requirements
Warrants to purchase entity's common stock (in shares)	1,326,238
Warrants, exercise price (in dollars per share)	$ 24.43	$ 24.43
Maximum cash dividend paid in semi-annual period (in dollars per share)		$ 0.33
Warrants, term	10 years
Dividend payable by subsidiaries, maximum		$ 819,500,000

Capital Requirements (Changes)

Capital Requirements (Changes) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Jan. 01, 2016	Jul. 31, 2013
Tier 1 capital (to Risk Weighted Assets), Actual Ratio (as a percent)				6.00%
Total Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent)		2.50%	0.625%
Term of mandatory compliance		4 years
Percentage of capital securities issued by trust qualifying as Tier I capital, maximum	25.00%
Percentage of capital securities issued by trust qualifying as Tier II capital, minimum	25.00%
Capital securities issued by the trust, qualifying as Tier I capital	$ 160,416,000	$ 161,416,000
Minimum
CET 1 ratio	7.00%
Tier 1 capital (to Risk Weighted Assets), Actual Ratio (as a percent)				4.00%
Total Capital (to Risk Weighted Assets), Actual Ratio (as a percent)		4.50%
Parent Company
Tier 1 capital (to Average Assets), Actual Ratio (as a percent)	13.91%	13.15%
Tier 1 capital (to Risk Weighted Assets), Actual Ratio (as a percent)	18.68%	18.69%
Total Capital (to Risk Weighted Assets), Actual Ratio (as a percent)	19.47%	19.54%
Parent Company | Minimum
Total Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent)	8.625%	8.00%

Capital Requirements (Capital A

Capital Requirements (Capital Amounts and Ratios) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Jan. 01, 2016	Jul. 31, 2013
Capital Requirements
Total Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent)		2.50%	0.625%
Tier 1 capital (to Risk Weighted Assets), Actual Ratio (as a percent)				6.00%
Term of mandatory compliance		4 years
Minimum
Capital Requirements
Total Capital (to Risk Weighted Assets), Actual Ratio (as a percent)		4.50%
Tier 1 capital (to Risk Weighted Assets), Actual Ratio (as a percent)				4.00%
Parent Company
Capital Requirements
Common Equity Tier 1 Capital (to Risk Weighted Assets), Actual Amount	$ 1,468,662	$ 1,380,801
Common Equity Tier 1 Capital (to Risk Weighted Assets), Actual Ratio (as a percent)	16.95%	16.81%
Total Capital (to Risk Weighted Assets), Actual Amount	$ 1,687,501	$ 1,605,419
Tier 1 Capital (to Risk Weighted Assets), Actual Amount	1,618,935	1,535,443
Tier 1 Capital (to Average Assets), Actual Amount	$ 1,618,935	$ 1,535,443
Total Capital (to Risk Weighted Assets), Actual Ratio (as a percent)	19.47%	19.54%
Tier 1 capital (to Risk Weighted Assets), Actual Ratio (as a percent)	18.68%	18.69%
Tier 1 capital (to Average Assets), Actual Ratio (as a percent)	13.91%	13.15%
Parent Company | Minimum
Capital Requirements
Common Equity Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount	$ 390,021	$ 369,726
Common Equity Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent)	5.125%	4.50%
Total Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount	$ 693,370	$ 657,291
Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount	520,028	492,968
Tier 1 Capital (to Average Assets), For Capital Adequacy Purposes Amount	$ 471,135	$ 466,897
Total Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent)	8.625%	8.00%
Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent)	6.625%	6.00%
Tier 1 Capital (to Average Assets), For Capital Adequacy Purposes Ratio (as a percent)	4.00%	4.00%
International Bank of Commerce, Laredo
Capital Requirements
Common Equity Tier 1 Capital (to Risk Weighted Assets), Actual Amount	$ 1,201,527	$ 1,151,812
Common Equity Tier 1 Capital (to Risk Weighted Assets), Actual Ratio (as a percent)	16.63%	16.42%
Total Capital (to Risk Weighted Assets), Actual Amount	$ 1,260,886	$ 1,213,377
Tier 1 Capital (to Risk Weighted Assets), Actual Amount	1,201,527	1,151,812
Tier 1 Capital (to Average Assets), Actual Amount	$ 1,201,527	$ 1,151,812
Total Capital (to Risk Weighted Assets), Actual Ratio (as a percent)	17.45%	17.30%
Tier 1 capital (to Risk Weighted Assets), Actual Ratio (as a percent)	16.63%	16.42%
Tier 1 capital (to Average Assets), Actual Ratio (as a percent)	12.50%	12.09%
International Bank of Commerce, Laredo | Minimum
Capital Requirements
Common Equity Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount	$ 325,178	$ 315,707
Common Equity Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	$ 469,701	$ 456,022
Common Equity Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent)	5.125%	4.50%
Common Equity Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent)	6.50%	6.50%
Total Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount	$ 578,094	$ 561,258
Total Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	722,618	701,572
Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount	433,571	420,943
Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	578,094	561,258
Tier 1 Capital (to Average Assets), For Capital Adequacy Purposes Amount	384,342	381,105
Tier 1 Capital (to Average Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	$ 480,427	$ 476,381
Total Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent)	8.625%	8.00%
Total Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent)	10.00%	10.00%
Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent)	6.625%	6.00%
Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent)	8.00%	8.00%
Tier 1 Capital (to Average Assets), For Capital Adequacy Purposes Ratio (as a percent)	4.00%	4.00%
Tier 1 Capital (to Average Assets), To Be well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent)	5.00%	5.00%
International Bank of Commerce, Brownsville
Capital Requirements
Common Equity Tier 1 Capital (to Risk Weighted Assets), Actual Amount	$ 158,533	$ 154,141
Common Equity Tier 1 Capital (to Risk Weighted Assets), Actual Ratio (as a percent)	25.61%	26.26%
Total Capital (to Risk Weighted Assets), Actual Amount	$ 163,937	$ 159,913
Tier 1 Capital (to Risk Weighted Assets), Actual Amount	158,533	154,141
Tier 1 Capital (to Average Assets), Actual Amount	$ 158,533	$ 154,141
Total Capital (to Risk Weighted Assets), Actual Ratio (as a percent)	26.49%	27.24%
Tier 1 capital (to Risk Weighted Assets), Actual Ratio (as a percent)	25.61%	26.26%
Tier 1 capital (to Average Assets), Actual Ratio (as a percent)	16.91%	15.03%
International Bank of Commerce, Brownsville | Minimum
Capital Requirements
Common Equity Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount	$ 27,852	$ 26,418
Common Equity Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	$ 40,230	$ 38,159
Common Equity Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent)	5.125%	4.50%
Common Equity Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent)	6.50%	6.50%
Total Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount	$ 49,514	$ 46,965
Total Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	61,892	58,706
Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount	37,135	35,224
Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	49,514	46,965
Tier 1 Capital (to Average Assets), For Capital Adequacy Purposes Amount	37,509	41,034
Tier 1 Capital (to Average Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	$ 46,886	$ 51,293
Total Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent)	8.625%	8.00%
Total Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent)	10.00%	10.00%
Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent)	6.625%	6.00%
Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent)	8.00%	8.00%
Tier 1 Capital (to Average Assets), For Capital Adequacy Purposes Ratio (as a percent)	4.00%	4.00%
Tier 1 Capital (to Average Assets), To Be well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent)	5.00%	5.00%
International Bank of Commerce, Zapata
Capital Requirements
Common Equity Tier 1 Capital (to Risk Weighted Assets), Actual Amount	$ 65,989	$ 66,153
Common Equity Tier 1 Capital (to Risk Weighted Assets), Actual Ratio (as a percent)	34.09%	35.71%
Total Capital (to Risk Weighted Assets), Actual Amount	$ 67,464	$ 67,470
Tier 1 Capital (to Risk Weighted Assets), Actual Amount	65,989	66,153
Tier 1 Capital (to Average Assets), Actual Amount	$ 65,989	$ 66,153
Total Capital (to Risk Weighted Assets), Actual Ratio (as a percent)	34.85%	36.42%
Tier 1 capital (to Risk Weighted Assets), Actual Ratio (as a percent)	34.09%	35.71%
Tier 1 capital (to Average Assets), Actual Ratio (as a percent)	13.87%	13.15%
International Bank of Commerce, Zapata | Minimum
Capital Requirements
Common Equity Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount	$ 8,712	$ 8,336
Common Equity Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	$ 12,584	$ 12,042
Common Equity Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent)	5.125%	4.50%
Common Equity Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent)	6.50%	6.50%
Total Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount	$ 15,488	$ 14,820
Total Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	19,360	18,525
Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount	11,616	11,115
Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	15,488	14,820
Tier 1 Capital (to Average Assets), For Capital Adequacy Purposes Amount	19,029	20,129
Tier 1 Capital (to Average Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	$ 23,786	$ 25,161
Total Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent)	8.625%	8.00%
Total Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent)	10.00%	10.00%
Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent)	6.625%	6.00%
Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent)	8.00%	8.00%
Tier 1 Capital (to Average Assets), For Capital Adequacy Purposes Ratio (as a percent)	4.00%	4.00%
Tier 1 Capital (to Average Assets), To Be well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent)	5.00%	5.00%
Commerce Bank
Capital Requirements
Common Equity Tier 1 Capital (to Risk Weighted Assets), Actual Amount	$ 73,765	$ 72,882
Common Equity Tier 1 Capital (to Risk Weighted Assets), Actual Ratio (as a percent)	31.84%	36.17%
Total Capital (to Risk Weighted Assets), Actual Amount	$ 76,093	$ 74,204
Tier 1 Capital (to Risk Weighted Assets), Actual Amount	73,765	72,882
Tier 1 Capital (to Average Assets), Actual Amount	$ 73,765	$ 72,882
Total Capital (to Risk Weighted Assets), Actual Ratio (as a percent)	32.85%	36.83%
Tier 1 capital (to Risk Weighted Assets), Actual Ratio (as a percent)	31.84%	36.17%
Tier 1 capital (to Average Assets), Actual Ratio (as a percent)	13.05%	12.94%
Commerce Bank | Minimum
Capital Requirements
Common Equity Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount	$ 10,425	$ 9,067
Common Equity Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	$ 15,058	$ 13,097
Common Equity Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent)	5.125%	4.50%
Common Equity Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent)	6.50%	6.50%
Total Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount	$ 18,532	$ 16,119
Total Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	23,166	20,149
Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount	13,899	12,089
Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	18,532	16,119
Tier 1 Capital (to Average Assets), For Capital Adequacy Purposes Amount	22,607	22,521
Tier 1 Capital (to Average Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	$ 28,259	$ 28,151
Total Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent)	8.625%	8.00%
Total Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent)	10.00%	10.00%
Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent)	6.625%	6.00%
Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent)	8.00%	8.00%
Tier 1 Capital (to Average Assets), For Capital Adequacy Purposes Ratio (as a percent)	4.00%	4.00%
Tier 1 Capital (to Average Assets), To Be well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent)	5.00%	5.00%

Fair Value (Fair Value By Level

Fair Value (Fair Value By Level) (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Assets:
Available for sale securities	$ 4,177,349	$ 4,199,372
Assets/liabilities measured at fair value
Assets:
Available for sale securities	4,177,349	4,199,372
Assets/liabilities measured at fair value | Residential mortgage-backed securities
Assets:
Available for sale securities	3,894,470	3,893,211
Assets/liabilities measured at fair value | Obligations of states and political subdivisions
Assets:
Available for sale securities	254,972	277,704
Assets/liabilities measured at fair value | Equity securities
Assets:
Available for sale securities	27,907	28,457
Measured on a recurring basis:
Assets:
Available for sale securities	4,177,349	4,199,372
Measured on a recurring basis: | Residential mortgage-backed securities
Assets:
Available for sale securities	3,894,470	3,893,210
Measured on a recurring basis: | Obligations of states and political subdivisions
Assets:
Available for sale securities	254,972	277,705
Measured on a recurring basis: | Equity securities
Assets:
Available for sale securities	27,907	28,457
Measured on a recurring basis: | Quoted Prices in Active Markets for Identical Assets (Level 1)
Assets:
Available for sale securities	27,907	28,457
Measured on a recurring basis: | Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity securities
Assets:
Available for sale securities	27,907	28,457
Measured on a recurring basis: | Significant Other Observable Inputs (Level 2)
Assets:
Available for sale securities	4,131,837	4,149,686
Measured on a recurring basis: | Significant Other Observable Inputs (Level 2) | Residential mortgage-backed securities
Assets:
Available for sale securities	3,876,865	3,871,981
Measured on a recurring basis: | Significant Other Observable Inputs (Level 2) | Obligations of states and political subdivisions
Assets:
Available for sale securities	254,972	277,705
Measured on a recurring basis: | Significant Unobservable Inputs (Level 3)
Assets:
Available for sale securities	17,605	21,229
Measured on a recurring basis: | Significant Unobservable Inputs (Level 3) | Residential mortgage-backed securities
Assets:
Available for sale securities	$ 17,605	$ 21,229

Fair Value Measurements -(Recon

Fair Value Measurements -(Reconciliation) (Details) - Residential mortgage-backed securities $ in Thousands	12 Months Ended
	Dec. 31, 2016USD ($)
Reconciliation of activity for mortgage-backed securities on a net basis
Balance at the beginning of the period	$ 21,229
Principal paydowns	(4,417)
Total unrealized losses included in:
Other comprehensive loss	1,147
Impairment realized in earnings	(354)
Balance at the end of the period	$ 17,605

Fair Value (Fair Value Measurem

Fair Value (Fair Value Measurement and Assumptions) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Assets:
Impaired Loans	$ 38,108,000	$ 51,021,000
Non-financial assets:
Other real estate owned	42,204,000	55,850,000
Assumptions used in discounted cash flow model to determine fair value of investments classified within level 3
Charges to allowance for probable loan losses in connection with other real estate owned	381,000	696,000	$ 367,000
Adjustment to fair value in connection with other real estate owned	2,351,000	1,023,000	$ 597,000
Impaired commercial collateral dependent loans	38,108,000	51,021,000
Impaired commercial collateral dependent receivables appraisals to determine fair value within immediately preceding twelve months	26,162,000	39,520,000
Impaired collateral dependent commercial loans with internal evaluation completed within last twelve months	$ 6,836,000	$ 2,958,000
Significant Unobservable Inputs (Level 3) | Bond meeting original contract terms
Assumptions used in discounted cash flow model to determine fair value of investments classified within level 3
Minimum period of residential mortgage loan performance under original contract terms	24 months	24 months
Estimated future principal prepayment rate assumption, low end of range (as a percent)	7.00%	7.00%
Default rate assumptions (as a percent)	1.00%	1.00%
Loss severity rate assumptions, first year (as a percent)	25.00%	25.00%
Estimated future principal prepayment rate assumption, discount rate (as a percent)	13.00%	13.00%
Significant Unobservable Inputs (Level 3) | Bond not meeting the original contract terms
Assumptions used in discounted cash flow model to determine fair value of investments classified within level 3
Estimated future principal prepayment rate assumption, low end of range (as a percent)	2.00%	2.00%
Default rate assumptions (as a percent)	4.50%	4.50%
Loss severity rate assumptions, first year (as a percent)	60.00%
Decrease in loss severity rates, following five years (as a percent)	5.00%
Loss severity rate, thereafter (as a percent)	25.00%
Estimated future principal prepayment rate assumption, discount rate (as a percent)	13.00%
Measured on a non-recurring basis
Assets:
Impaired Loans	$ 38,794,000	$ 18,033,000
Non-financial assets:
Other real estate owned	9,445,000	12,705,000
Assumptions used in discounted cash flow model to determine fair value of investments classified within level 3
Change in net provision, impaired loans	19,699,000	(8,589,000)
Change in net provision, other real estate owned	2,351,000	1,023,000
Impaired commercial collateral dependent loans	38,794,000	18,033,000
Measured on a non-recurring basis | Significant Unobservable Inputs (Level 3)
Assets:
Impaired Loans	38,794,000	18,033,000
Non-financial assets:
Other real estate owned	9,445,000	12,705,000
Assumptions used in discounted cash flow model to determine fair value of investments classified within level 3
Impaired commercial collateral dependent loans	$ 38,794,000	$ 18,033,000

Fair Value Measurements (Other

Fair Value Measurements (Other Assumptions) (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Deposits
Carrying amount of time deposits	$ 2,248,310,000	$ 2,366,413,000
Significant Unobservable Inputs (Level 3)
Loans
Carrying amount of fixed rate performing loans	1,411,272,000	1,383,836,000
Estimated fair value of fixed rate performing loans	1,375,807,000	1,362,248,000
Deposits
Carrying amount of time deposits	2,248,310,000	2,366,413,000
Estimated fair value of time deposits	2,247,648,000	2,365,390,000
Securities Sold Under Repurchase Agreements
Carrying amount of long-term repurchase agreements	300,000,000	560,000,000
Estimated fair value of long-term repurchase agreements	$ 289,324,000	$ 527,198,600

International Bancshares Corp94

International Bancshares Corporation (Parent Company Only) Financial Information Statements of Condition (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
ASSETS
Other investments	$ 517,162,000	$ 468,791,000
Other assets	95,593,000	114,354,000
Total assets	11,804,041,000	11,772,869,000
Liabilities:
Junior subordinated deferrable interest debentures	160,416,000	161,416,000
Other liabilities	70,509,000	76,175,000
Total liabilities	10,079,374,000	10,107,366,000
Shareholders' equity:
Common shares	95,910,000	95,866,000
Surplus	169,567,000	167,980,000
Retained earnings	1,777,963,000	1,683,600,000
Accumulated other comprehensive (loss) income	(26,697,000)	2,167,000
Total shareholders' equity before treasury stock	2,016,743,000	1,949,613,000
Less cost of shares in treasury	(292,076,000)	(284,110,000)
Total shareholders' equity	1,724,667,000	1,665,503,000	$ 1,580,658,000	$ 1,424,408,000
Total liabilities and shareholders' equity	11,804,041,000	11,772,869,000
Parent Company
ASSETS
Cash	18,555,000	2,977,000
Other investments	94,908,000	69,160,000
Notes receivable		99,000
Investment in subsidiaries	1,787,120,000	1,766,592,000
Other assets	1,098,000	45,000
Total assets	1,901,681,000	1,838,873,000
Liabilities:
Junior subordinated deferrable interest debentures	160,416,000	161,416,000
Due to IBC Trading	21,000	21,000
Other liabilities	16,577,000	11,933,000
Total liabilities	177,014,000	173,370,000
Shareholders' equity:
Common shares	95,910,000	95,866,000
Surplus	169,567,000	167,980,000
Retained earnings	1,777,963,000	1,683,600,000
Accumulated other comprehensive (loss) income	(26,697,000)	2,167,000
Total shareholders' equity before treasury stock	2,016,743,000	1,949,613,000
Less cost of shares in treasury	(292,076,000)	(284,110,000)
Total shareholders' equity	1,724,667,000	1,665,503,000
Total liabilities and shareholders' equity	$ 1,901,681,000	$ 1,838,873,000

International Bancshares Corp95

International Bancshares Corporation (Parent Company Only) Financial Information Statements of Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Expenses:
Interest expense (Debentures)	$ 4,600	$ 4,099	$ 4,264
Income before federal income taxes and equity in undistributed net income of subsidiaries	197,003	206,842	229,938
Income tax expense	63,071	70,116	76,787
Net income	133,932	136,726	153,151
Parent Company
Income:
Dividends from subsidiaries	84,432	51,575	71,389
Interest income on notes receivable	2	7	15
Interest income on other investments	8,958	5,738	6,862
Other	255	3,442	1,923
Total income	93,647	60,762	80,189
Expenses:
Interest expense (Debentures)	4,600	4,099	4,264
Other	3,637	3,037	1,099
Total expenses	8,237	7,136	5,363
Income before federal income taxes and equity in undistributed net income of subsidiaries	85,410	53,626	74,826
Income tax expense	311	386	1,370
Income before equity in undistributed net income of subsidiaries	85,099	53,240	73,456
Equity in undistributed net income of subsidiaries	48,833	83,486	79,695
Net income	$ 133,932	$ 136,726	$ 153,151

International Bancshares Corp96

International Bancshares Corporation (Parent Company Only) Financial Information Statements of Cash Flows (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Operating activities:
Net income	$ 133,932	$ 136,726	$ 153,151
Adjustments to reconcile net income to net cash provided by operating activities:
Impairment charges on available for sale securities	354	954	817
Stock compensation expense	1,082	1,172	1,058
Increase (decrease) in other liabilities	(7,705)	(6,567)	(7,482)
Net cash provided by operating activities	203,220	203,649	193,037
Investing activities:
Principal collected on mortgage-backed securities	919,594	854,736	787,361
Net cash (used in) provided by investing activities	(137,763)	373,225	(90,399)
Financing activities:
Repayments of Long-term Debt	1,000	14,000	15,310
Proceeds from stock transactions	549	1,370	555
Payments of cash dividends - common	(39,569)	(38,515)	(34,762)
Purchase of treasury stock	(7,966)	(6,678)	(18,923)
Net cash used in financing activities	(69,312)	(558,967)	(122,277)
(Decrease) increase in cash and cash equivalents	(3,855)	17,907	(19,639)
Cash and cash equivalents at beginning of period	273,053	255,146	274,785
Cash and cash equivalents at end of period	269,198	273,053	255,146
Parent Company
Operating activities:
Net income	133,932	136,726	153,151
Adjustments to reconcile net income to net cash provided by operating activities:
Impairment charges on available for sale securities	112	385	254
Stock compensation expense	1,082	1,172	1,058
Increase (decrease) in other liabilities	3,901	(1,998)	416
Equity in undistributed net income of subsidiaries	(48,833)	(83,486)	(79,695)
Net cash provided by operating activities	90,194	52,799	75,184
Investing activities:
Principal collected on mortgage-backed securities	1,105	474	1,301
Net decrease in notes receivable	99	105	109
Increase in other assets and other investments	(27,834)	(1,830)	(7,008)
Net cash (used in) provided by investing activities	(26,630)	(1,251)	(5,598)
Financing activities:
Repayments of Long-term Debt	1,000	14,000	15,310
Proceeds from stock transactions	549	1,370	555
Payments of cash dividends - common	(39,569)	(38,515)	(34,762)
Purchase of treasury stock	(7,966)	(6,678)	(18,923)
Net cash used in financing activities	(47,986)	(57,823)	(68,440)
(Decrease) increase in cash and cash equivalents	15,578	(6,275)	1,146
Cash and cash equivalents at beginning of period	2,977	9,252	8,106
Cash and cash equivalents at end of period	$ 18,555	$ 2,977	$ 9,252