International Bancshares Corporation (Parent Company Only) Financial Information Statements of Cash Flows

12 Months Ended

Dec. 31, 2011

(24) International Bancshares Corporation (Parent Company Only) Financial Information

Statements of Cash Flows
(Parent Company Only)

Years ended December 31, 2011, 2010 and 2009
(Dollars in Thousands)

	2011			2010			2009

Operating activities:
Net income	$	127,149		$	130,023		$	142,742
Adjustments to reconcile net income to net cash provided by operating activities:
Accretion of junior subordinated interest deferrable debentures		9			35			35
Investment securities transactions, net		2			1,135			(6,586	)
Accretion of investment securities discounts		—			(232	)		(325	)
Stock compensation expense		387			534			655
(Decrease) increase in other liabilities		(3,234	)		4,976			(309	)
Equity in undistributed net income of subsidiaries		(78,806	)		(81,923	)		(96,414	)

Net cash provided by operating activities		45,507			54,548			39,798

Investing activities:
Contributions to subsidiaries		—			—			(138,103	)
Principal collected on mortgage-backed securities		1,355			3,324			2,791
Net (increase) decrease in notes receivable		(245	)		(150	)		250
Increase in other assets		(4,193	)		(8,311	)		(9,215	)

Net cash used in investing activities		(3,083	)		(5,137	)		(144,277	)

Financing activities:
Repayment of trust preferred securities		(10,400	)		—			—
Proceeds from stock transactions		113			484			2,705
Payments of cash dividends—common		(25,648	)		(24,444	)		(23,262	)
Payments of cash dividends—preferred		(10,800	)		(10,800	)		(9,660	)
Purchase of treasury stock		(6,435	)		(6,949	)		(9,346	)

Net cash used in financing activities		(53,170	)		(41,709	)		(39,563	)

(Decrease) increase in cash		(10,746	)		7,702			(144,042	)
Cash at beginning of year		24,414			16,712			160,754

Cash at end of year	$	13,668		$	24,414		$	16,712