International Bancshares (IBOC) investor relations material

Executive summary

• Q3 2026 net income rose 5.6% YoY to $114,473K; diluted EPS was $1.84, up 5.7%.

• 9M net income increased 2.3% to $312,471K; diluted EPS was $5.02, up 2.2%.

• Lower interest expense and merchant banking investment earnings supported results; higher 9M credit loss expense reflected non-accrual loans and specific reserve reevaluation.

Financial highlights

• Q3 net interest income was $174,486K, up 1.3% YoY; 9M net interest income was $511,219K, up 2.1%.

• Q3 non-interest income increased 18.7% to $54,413K; 9M rose 14.1% to $140,959K, supported by merchant banking earnings.

• Q3 non-interest expense rose 3.6% to $82,647K; 9M increased 4.3% to $241,300K, including higher employee compensation and other costs.

• Assets were $17,287,505K at Sept. 30, 2026, up 4.3% from year-end; loans were $9,784,037K and deposits were $12,883,646K.

Outlook and guidance

• Management described the rate position as asset-sensitive in short- and long-term scenarios; plans include monitoring funding costs and repricing maturities and adjusting the asset-liability mix as needed.

• For Q4 2026, management plans to focus on customer service, balance-sheet and liquidity management, cost controls, process efficiencies, and AI initiatives; economic conditions remain uncertain.