International Bancshares Corp.: Q3 FY2025 earnings call

What management said about Q3 FY2025, from the documents filed with the SEC on 6 November 2025: press release. The quarter’s numbers.

Key takeaways

Third-quarter net income rose year on year: Net income for the quarter was $108.4 million, or $1.74 diluted EPS, against $99.8 million, or $1.60, a year earlier. The company reported an 8.6% rise in net income and an 8.8% rise in diluted EPS. Source
Higher deposit rates raised interest expense: Net interest income was reduced by higher interest expense, mainly from increased rates paid on deposits. No dollar amount is given. Source
Federal Reserve rate cut cited: Management referred to the recent Federal Reserve decision to lower rates as context for its deposit rate decisions. Source
Total assets reached $16.6 billion: Total assets were about $16.6 billion at September 30, 2025, up from about $16.5 billion at June 30, 2025 and $15.7 billion at December 31, 2024. Source
Net loans rose to $9.2 billion: Total net loans were about $9.2 billion at September 30, 2025, up from about $9.0 billion at June 30, 2025 and $8.7 billion at December 31, 2024. Source
AI initiatives aimed at efficiency: Management said new AI initiatives are meant to create efficiencies across the system. No savings or expense figures are given. Source

“As we move to the last quarter of 2025, we are extremely pleased and proud to continue our industry-leading financial results.”
Dennis E. Nixon, President and CEO

What changed from last quarter

New: The release names new AI initiatives aimed at creating efficiencies across the system. The second-quarter release referred to new initiatives and evaluating efficiency processes but did not name AI. Source
New: The release cites a recent Federal Reserve Board decision to lower interest rates. The second-quarter release described rates as elevated from earlier Federal Reserve increases. Source
New: Judith Wawroski is listed as Chief Financial Officer. The prior release listed her as Treasurer and Principal Financial Officer. Source

Quarterly and nine-month results

Third-quarter net income rose year on year: Net income for the quarter was $108.4 million, or $1.74 diluted EPS, against $99.8 million, or $1.60, a year earlier. The company reported an 8.6% rise in net income and an 8.8% rise in diluted EPS. Source
Quarter ahead of second quarter: The prior release gave second-quarter net income as $100.1 million, or $1.61 diluted EPS. Third-quarter net income was $108.4 million, or $1.74.
Nine-month net income up modestly: Net income for the nine months was $305.4 million, or $4.91 diluted EPS, against $294.1 million, or $4.72, a year earlier. The company reported a 3.8% rise in net income and a 4.0% rise in diluted EPS. Source

Interest income and provision benefit

Interest income still lifting earnings: Management said the nine-month net income continued to benefit from higher interest income on the investment and loan portfolios. No dollar amount is given. Source
Earlier drivers of interest income: The first-half release attributed interest income growth mainly to larger investment and loan portfolios and the rate environment at that time.
Lower provision helped nine-month income: Management said net income for the nine months benefited from a decrease in the provision for credit loss expense. No provision amount is given. Source

“We believe this focus will continue to keep us at the top of the rankings when compared to other publicly held banks in America”
Dennis E. Nixon, President and CEO

Net interest income and deposit costs

Higher deposit rates raised interest expense: Net interest income was reduced by higher interest expense, mainly from increased rates paid on deposits. No dollar amount is given. Source
Deposit rates adjusted to retain funding: Management said it monitors and adjusts rates paid on deposits to stay competitive, aiming to grow and retain deposits. Source
Federal Reserve rate cut cited: Management referred to the recent Federal Reserve decision to lower rates as context for its deposit rate decisions. Source

Balance sheet growth

Total assets reached $16.6 billion: Total assets were about $16.6 billion at September 30, 2025, up from about $16.5 billion at June 30, 2025 and $15.7 billion at December 31, 2024. Source
Net loans rose to $9.2 billion: Total net loans were about $9.2 billion at September 30, 2025, up from about $9.0 billion at June 30, 2025 and $8.7 billion at December 31, 2024. Source
Deposits flat from June: Deposits were about $12.5 billion at September 30, 2025, unchanged from June 30, 2025 and up from $12.1 billion at December 31, 2024. Source

Costs, practices and AI

AI initiatives aimed at efficiency: Management said new AI initiatives are meant to create efficiencies across the system. No savings or expense figures are given. Source
Cost controls kept as a practice: Management listed cost controls among long-standing practices it plans to keep executing, alongside balance sheet, asset, liability and liquidity management. Source
Customer service kept as a focus: Management said it will remain focused and vigilant on delivering customer service. Source

Footprint and leadership

Footprint of 166 facilities: The company is a multi-bank financial holding company based in Laredo, Texas, with 166 facilities and 255 ATMs serving 75 communities in Texas and Oklahoma. Source
CFO title shown as Chief Financial Officer: The contact line lists Judith Wawroski as Chief Financial Officer, where the prior release listed her as Treasurer and Principal Financial Officer. Source
Management expects top peer rankings: The CEO said management believes its focus will keep the company at the top of rankings among publicly held US banks. Source

Coming up, as management said on 6 November 2025

AI initiatives to create efficiencies: Management said it expects new AI initiatives, supported by its established practices, to help it continue delivering results. No date or figure is given. Source

Figures management reported

Figure	Reported
Net loans Source	about $9.2 billion at September 30, 2025
Deposits Source	about $12.5 billion at September 30, 2025
Net interest income Source	reduced by higher interest expense; no dollar amount given
Provision for credit losses Source	decreased for the first nine months of 2025; no amount given

Risks management discussed

Financial: Higher rates paid on deposits raised interest expense and reduced net interest income. Management said it adjusts deposit rates to stay competitive. Source
External: Management referred to the recent Federal Reserve decision to lower interest rates as a factor in its deposit pricing context. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

Judith Wawroski,Chief Financial Officer · International Bancshares Corporation · (956) 722-7611

IBC Reports Strong Earnings for the Third Quarter of 2025

LAREDO, Texas - (BUSINESS WIRE) - November 6, 2025 - International Bancshares Corporation (NASDAQ:IBOC), one of the largest independent bank holding companies in Texas, today reported net income for the three months ended September 30, 2025 of $108.4 million or $1.74 diluted earnings per common share ($1.74 per share basic) compared to approximately $99.8 million or $1.60 diluted earnings per common share ($1.60 per share basic), which represents an increase of 8.8% in diluted earnings per share and an increase of 8.6% in net income over the corresponding period in 2024. Net income for the nine months ended September 30, 2025 was $305.4 million or $4.91 diluted earnings per common share ($4.91 per share basic) compared to $294.1 million or $4.72 diluted earnings per common share ($4.73 per share basic), which represents an increase of 3.8% in net income and 4.0% in diluted earnings per share over the corresponding period of 2024.

Net income for the first nine months of 2025 continues to be positively impacted by an increase in interest income earned on our investment and loan portfolios, as discussed in prior periods. Net interest income has also continued to be negatively impacted by an increase in interest expense, primarily driven by increases in rates paid on deposits. We continue to closely monitor and adjust rates paid on deposits to remain competitive to grow and retain deposits, especially in light of the recent action by the Federal Reserve Board to decrease interest rates. Net income for the first nine months of 2025 was also positively impacted by a decrease in our provision for credit loss expense.

“As we move to the last quarter of 2025, we are extremely pleased and proud to continue our industry-leading financial results. We will remain focused and vigilant on delivering superior customer service, and continued execution of our long-standing practices of balance sheet, asset, liability and liquidity management, and strong cost controls. We believe that with continued focus on these established practices supported by new AI initiatives to create efficiencies across our system, we will continue to deliver industry-leading financial results. We believe this focus will continue to keep us at the top of the rankings when compared to other publicly held banks in America,” said Dennis E. Nixon, President and CEO.

Total assets at September 30, 2025 were approximately $16.6 billion compared to approximately $15.7 billion at December 31, 2024. Total net loans were approximately $9.2 billion at September 30, 2025 compared to approximately $8.7 billion at December 31, 2024. Deposits were approximately $12.5 billion at September 30, 2025 compared to approximately $12.1 billion at December 31, 2024.

IBC is a multi-bank financial holding company headquartered in Laredo, Texas, with 166 facilities and 255 ATMs serving 75 communities in Texas and Oklahoma.

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

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