International Bancshares (IBOC) Q3 2025 earnings summary

Executive summary

• Net income for Q3 2025 increased 8.6% year-over-year to $108.4 million, with diluted EPS of $1.74, up 8.8% year-over-year; nine-month net income rose to $305.4 million, a 3.9% increase, and EPS reached $4.91, up 4.0% year-over-year.

• Earnings growth was driven by higher interest income from investment and loan portfolios, partially offset by increased non-interest expenses and deposit costs.

Financial highlights

• Total assets grew to $16.6 billion as of September 30, 2025, up 5.2% from year-end 2024; net loans increased to $9.25 billion, and deposits rose to $12.5 billion.

• Net interest income for Q3 2025 was $172.2 million, up 2.6% year-over-year; nine-month net interest income reached $500.9 million, a 1.0% increase.

• Provision for credit losses dropped 78.8% in Q3 and 68.5% for the nine months, reflecting the absence of large charge-offs seen in 2024.

• Non-interest income rose 4.6% in Q3 but declined 4.7% for the nine months due to merchant banking investment losses.

• Non-interest expense increased 4.7% in Q3 and 5.2% for the nine months, mainly from higher employee compensation and inflationary pressures.

Outlook and guidance

• Management remains focused on deposit pricing, expense control, and balance sheet management to support profitability amid economic uncertainty.

• New AI initiatives are being implemented to drive efficiencies and maintain industry-leading results.

• Capital levels are expected to remain well above regulatory minimums, with ongoing focus on asset quality and risk management.