International Bancshares Corp.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 6 August 2026: press release. The quarter’s numbers.

Key takeaways

Six-month net income rose 0.5%: Net income for the six months ended June 30, 2026 was $198.0 million, or $3.18 diluted EPS, up from $197.0 million, or $3.16, a year earlier. Diluted EPS rose 0.6%. Source
Three-month net income fell 4.3%: Net income for the three months ended June 30, 2026 was $95.8 million, or $1.54 diluted EPS, against $100.1 million, or $1.61, a year earlier. Net income and diluted EPS each fell 4.3%. Source
Lower deposit rates cut interest expense: Interest expense fell, mainly from a redistribution in rates paid on deposits, which management said positively affected net interest income. Source
Credit loss provision increased: Provision for credit loss expense rose from a year earlier. Management attributed the rise to loan portfolio size, changes in non-accrual loan balances, and reevaluated specific provisions on those loans. Source
No actual losses realized, management said: Management said that although the provision increased, no actual losses on those loans have been, or may ever be, realized. Source
CEO cites consistent first-half results: CEO Dennis E. Nixon said the company was pleased with the consistency of its public company industry-leading results in the first half of 2026. Source

“We are pleased with the consistency of our public company industry-leading financial results in the first half of 2026.”
Dennis E. Nixon, President and CEO

Six-month and quarterly results

Six-month net income rose 0.5%: Net income for the six months ended June 30, 2026 was $198.0 million, or $3.18 diluted EPS, up from $197.0 million, or $3.16, a year earlier. Diluted EPS rose 0.6%. Source
Three-month net income fell 4.3%: Net income for the three months ended June 30, 2026 was $95.8 million, or $1.54 diluted EPS, against $100.1 million, or $1.61, a year earlier. Net income and diluted EPS each fell 4.3%. Source
Prior release showed first-quarter gains: The May release reported net income for the three months ended March 31, 2026 of $102.2 million, or $1.64 diluted EPS, up 5.5% in net income and 5.1% in diluted EPS.

Interest income and deposit rates

Loan and investment income drove net income: Management said net income continued to benefit from interest earned on investment and loan portfolios, driven by larger portfolios and the current rate environment. Source
Lower deposit rates cut interest expense: Interest expense fell, mainly from a redistribution in rates paid on deposits, which management said positively affected net interest income. Source
Deposit pricing kept under review: Management said it closely monitors rates paid on deposits to stay competitive in growing and retaining deposits. Source

“We know and believe that with continued focus on these established and long-standing practices, we will continue to deliver public company industry-leading financial results”
Dennis E. Nixon, President and CEO

Loans and credit loss provision

Net loans reached $9.7 billion: Total net loans were about $9.7 billion at June 30, 2026, up from about $9.3 billion at December 31, 2025. The May release gave $9.5 billion at March 31, 2026. Source
Credit loss provision increased: Provision for credit loss expense rose from a year earlier. Management attributed the rise to loan portfolio size, changes in non-accrual loan balances, and reevaluated specific provisions on those loans. Source
No actual losses realized, management said: Management said that although the provision increased, no actual losses on those loans have been, or may ever be, realized. Source

Assets and deposits

Total assets reached $17.0 billion: Total assets were about $17.0 billion at June 30, 2026, compared with about $16.6 billion at December 31, 2025. Source
Deposits reached $12.7 billion: Deposits were about $12.7 billion at June 30, 2026, against about $12.4 billion at December 31, 2025. Source
March balances in prior release: The May release gave total assets of about $16.8 billion at March 31, 2026, against about $16.6 billion at December 31, 2025.

Management view, costs and AI

CEO cites consistent first-half results: CEO Dennis E. Nixon said the company was pleased with the consistency of its public company industry-leading results in the first half of 2026. Source
Long-standing practices cited as basis: Management cited continued execution of long-standing practices in balance sheet, asset, liability and liquidity management. Source
Cost controls and AI initiatives cited: Management listed process reviews for efficiencies across the organization, using among other things AI initiatives, as ongoing practices. Source

Footprint and second-half focus

Network of 165 facilities: The company reported 165 facilities and 245 ATMs serving 75 communities in Texas and Oklahoma, headquartered in Laredo, Texas. Source
ATM count moved from 247 to 245: The ATM count was 245 in this release, against 247 in the May release.
Customer service focus named in May: The May release said the company would remain focused and vigilant on delivering superior customer service through the rest of 2026.

Coming up, as management said on 6 August 2026

Second-half focus on established practices: Management said it will keep the same established practices and service focus through the second half of 2026. Source

Figures management reported

Figure	Reported
Net interest income Source	positively affected by lower interest expense; no dollar figure given
Net loans Source	$9.7 billion at June 30, 2026
Deposits Source	$12.7 billion at June 30, 2026
Provision for credit losses Source	increased from a year earlier; no dollar figure given
Nonperforming assets Source	non-accrual loan balances changed; no dollar figure given

Risks management discussed

Financial: Management pointed to changes in non-accrual loan balances and reevaluated specific provisions as drivers of higher credit loss expense. Source
Demand: Management said rates paid on deposits must be watched to remain competitive in growing and retaining deposits. Source

Earlier plans management reported on

Not stated: The May release said the company would stay focused on customer service through 2026. This release gives no status update on it.
Not stated: Management said continued focus on established practices would support continued industry-leading results. No status is reported against this. 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

IBC Reports Strong Earnings for the First Six Months of 2026

LAREDO, Texas - (BUSINESS WIRE) - August 6, 2026 - International Bancshares Corporation (NASDAQ:IBOC), one of the largest independent bank holding companies in Texas, today reported net income for the six months ended June 30, 2026 of $198.0 million or $3.18 diluted earnings per common share ($3.18 per share basic), compared to $197.0 million or $3.16 diluted earnings per common share ($3.17 per share basic), which represents an increase of 0.5% in net income and 0.6% in diluted earnings per share over the corresponding period of 2025. Net income for the three months ended June 30, 2026 was $95.8 million or $1.54 diluted earnings per common share ($1.54 per share basic) compared to $100.1 million or $1.61 diluted earnings per common share ($1.61 per share basic), which represents a decrease of 4.3% in net income and 4.3% in diluted earnings per share over the corresponding period of 2025.

Net income for the first six months of 2026 continued to be positively affected by interest earned on our investment and loan portfolios driven primarily by both an increase in the size of those portfolios and the current rate environment. Net interest income was also positively affected by a decrease in interest expense, primarily driven by a redistribution in rates paid on deposits. We continue to closely monitor rates paid on deposits to remain competitive to grow and retain deposits. The strong net income reported for 2026 compared to the same period of 2025 was negatively impacted by an increase in our provision for credit loss expense, driven primarily by an increase in the size of our loan portfolio, a change in the level of non-accrual loan balances and the reevaluation of the specific provisions for credit losses related to those loans. Although the provision for credit losses has increased, no actual losses on those loans have been, or may ever be, realized.

“We are pleased with the consistency of our public company industry-leading financial results in the first half of 2026. We have historically been very focused and vigilant on delivering superior customer service, continued execution of our long-standing practices of balance sheet, asset, liability and liquidity management, strong cost controls, and evaluating processes for efficiencies across our organization using, among other things, AI initiatives, and we will continue to do so as we move through the second half of 2026. We know and believe that with continued focus on these established and long-standing practices, we will continue to deliver public company industry-leading financial results,” said Dennis E. Nixon, President and CEO.

Total assets at June 30, 2026, were approximately $17.0 billion compared to approximately $16.6 billion at December 31, 2025. Total net loans were approximately $9.7 billion at June 30, 2026, compared to approximately $9.3 billion at December 31, 2025. Deposits were approximately $12.7 billion at June 30, 2026, compared to approximately $12.4 billion at December 31, 2025.

IBC is a multi-bank financial holding company headquartered in Laredo, Texas, with 165 facilities and 245 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.

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