International Bancshares (IBOC) investor relations material

Executive summary

• Net income for Q1 2026 increased 5.5% year-over-year to $102.2 million, driven by higher interest income from larger investment and loan portfolios and lower interest expense due to deposit rate management.

• Diluted EPS rose to $1.64, a 5.1% increase compared to Q1 2025.

• Non-interest income rose 15.7% year-over-year, while non-interest expense increased 3.1%, mainly from higher employee compensation.

• Continued focus on customer service, cost controls, and efficiency initiatives, including AI.

• Deposits and loans both grew 1.5% and 2.0% respectively from December 2025, reflecting ongoing business expansion.

Financial highlights

• Total assets reached $16.83 billion at March 31, 2026, up 1.5% from December 31, 2025.

• Net loans increased to $9.5 billion, and deposits rose to $12.62 billion, both up from year-end 2025.

• Net interest income was $165.6 million, up 2.7% year-over-year; provision for credit losses decreased 9.2% to $3.0 million.

• Net interest income benefited from lower interest expense due to deposit rate management.

• Shareholders’ equity increased to $3.29 billion, up 1.1% from year-end 2025.

Outlook and guidance

• Management continues to monitor deposit pricing, interest rate risk, and remains focused on balance sheet, asset, liability, and liquidity management.

• The company expects ongoing economic uncertainty to impact customer activity and revenue streams.

• Efficiency and cost control remain a focus, with ongoing evaluation of operational efficiencies and AI initiatives.