International Bancshares Reverses June Profit Decline

The Tip Desk · November 6, 2026 · 3 min read

Third-quarter net income was $114.5 million, or $1.84 a share, after a 4.3% year-over-year drop in the June quarter.

International Bancshares Corporation (IBOC), one of the largest independent bank holding companies in Texas, reported net income of $114.5 million, or $1.84 diluted earnings a share, for the three months ended September 30, 2026, a 5.6% increase in net income and 5.7% increase in diluted earnings per share versus the year-earlier quarter.

That result reversed a 4.3% year-over-year decline in both net income and diluted earnings per share in the three months ended June 30, 2026, when profit was $95.8 million, or $1.54 a share. The first quarter had already shown a 5.5% year-over-year rise in net income.

For the nine months ended September 30, 2026, net income was $312.5 million, or $5.02 diluted earnings a share, up 2.3% in net income and 2.2% in diluted earnings per share from the corresponding 2025 period. The company said first-nine-months earnings continued to be positively affected by interest earned on its investment and loan portfolios, driven primarily by 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. Net income for the same period was positively impacted on earnings from other investments.

Total assets were approximately $17.3 billion at September 30, 2026, compared with approximately $16.6 billion at December 31, 2025. Deposits were approximately $12.9 billion at September 30, 2026, compared with approximately $12.4 billion at year-end 2025. Total net loans were approximately $9.6 billion at September 30, 2026, compared with approximately $9.3 billion at December 31, 2025.

Net loans had been approximately $9.7 billion at June 30, 2026, after rising from $9.5 billion at March 31, 2026. Deposits were approximately $12.7 billion at June 30, 2026 and $12.6 billion at March 31, 2026. Total assets were approximately $17.0 billion at June 30, 2026 and $16.8 billion at March 31, 2026.

In the first-half release, the company said strong net income for 2026 versus the same 2025 period was negatively impacted by an increase in provision for credit loss expense, driven primarily by an increase in the size of the loan portfolio, a change in the level of non-accrual loan balances and a reevaluation of specific provisions related to those loans. It said that although the provision had increased, no actual losses on those loans had been, or may ever be, realized.

President and CEO Dennis E. Nixon said the company was pleased with the consistency of its results as it moved into the last quarter of 2026, citing customer service, balance-sheet, asset-liability and liquidity management, cost controls and efficiency work including AI initiatives. He also said the company was delighted to announce its move to the Texas Stock Exchange (TXSE) on October 19, 2026, and that it was one of the initial corporate listers on TXSE.

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.