International Bancshares Corporation Reports Slight Decrease in Net Income for Q1 2025

International Bancshares Corporation (IBC) reported its financial results for the first quarter of 2025, revealing a slight decrease in net income to $96.9 million, down 0.5% from $97.3 million in the same period last year. The company's earnings per share remained stable at $1.56, reflecting a marginal decline from $1.57 in the prior year. Total interest income increased by 1.2% to $214.6 million, driven primarily by higher interest earned on loans and investment securities, while interest expense rose by 10.2% to $53.4 million, largely due to increased rates on deposits.

Total assets for IBC grew by 3.4% to $16.27 billion as of March 31, 2025, compared to $15.74 billion at the end of 2024. The increase in assets was supported by a 3.1% rise in net loans, which reached $8.92 billion, and a 2.8% increase in total deposits, amounting to $12.45 billion. The company’s allowance for credit losses increased slightly to $158.7 million, representing 1.74% of total loans, down from 1.78% at the end of the previous year. The provision for credit losses significantly decreased by 74.3% compared to the prior year, indicating improved credit quality.

In terms of operational developments, IBC has maintained a strong focus on managing its interest rate risk and liquidity. The company reported a significant increase in other borrowed funds, which rose to $30.5 million from $10.5 million, reflecting a strategic move to bolster liquidity. Additionally, IBC's capital ratios remain robust, with a Common Equity Tier 1 (CET1) ratio of 22.41%, well above regulatory requirements, indicating a solid capital position to support future growth.

Strategically, IBC continues to enhance its market presence, particularly in the Texas region, where it operates 166 facilities and 256 ATMs. The company is actively involved in facilitating trade along the U.S.-Mexico border, which remains a critical component of its business model. IBC has also extended its stock repurchase program, authorizing the repurchase of up to $150 million of common stock, reflecting confidence in its financial health and commitment to returning value to shareholders.

Looking ahead, IBC's management remains cautious about the economic environment, particularly regarding interest rate fluctuations and their potential impact on loan demand and credit quality. The company plans to continue monitoring its operational efficiency and cost control measures to navigate any economic uncertainties while pursuing growth opportunities in its core markets.