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IB

INTERNATIONAL BANCSHARES CORP (IBOC)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 EPS was $1.56, flat year over year, on net income of $96.9M (-0.5% YoY), as higher asset yields were offset by rising deposit costs; lower provision for credit losses aided results .
  • Balance sheet growth remained solid: assets $16.3B (+$0.6B q/q), net loans $8.9B (+$0.2B q/q), deposits $12.5B (+$0.4B q/q) as of March 31, 2025 .
  • Management’s tone stayed confident, emphasizing “industry‑leading financial results,” disciplined ALM and cost control amid an elevated rate environment and competitive deposit pricing .
  • No formal quantitative guidance or call transcript was available; dividend policy underscored shareholder returns earlier in the quarter with a 6% increase to a $0.70 per‑share cash dividend (declared Jan 31, 2025) .

What Went Well and What Went Wrong

  • What Went Well

    • Maintained strong profitability: $96.9M net income and $1.56 EPS in Q1 2025, flat vs. prior year despite deposit cost headwinds .
    • Balance sheet momentum: assets +$0.6B q/q to $16.3B; net loans +$0.2B q/q to $8.9B; deposits +~$0.4B q/q to $12.5B .
    • Positive credit dynamic: “positively impacted by a decrease in our provision for credit loss expense” in Q1 2025 .
    • Quote: “We will remain focused and vigilant on… balance sheet, asset, liability, and liquidity management, and strong cost controls…” — Dennis E. Nixon, President & CEO .

  • What Went Wrong

    • Deposit cost pressure persisted: “Net interest income has been negatively impacted by an increase in interest expense, primarily driven by increases in rates paid on deposits” .
    • Elevated rate environment continued to pressure funding costs despite higher asset yields .
    • In prior quarters, non‑interest expense inflation was highlighted (Q3 2024 nine‑month period), indicating cost pressures that management is watching closely .

Financial Results

MetricQ3 2024Q4 2024Q1 2025YoY (Q1 2024)
Revenue ($USD)$203.18M*$206.81M*$194.89M*$192.87M*
Net Income ($USD)$99.8M $115.1M $96.9M $97.3M
Diluted EPS ($)$1.60 $1.85 $1.56 $1.56
Net Income Margin (%)49.10%*55.65%*49.72%*—
  • Revenue figures and margins marked with an asterisk are from S&P Global and/or derived by S&P Global; consensus estimates for these periods were not available in SPGI for EPS and Revenue. Values retrieved from S&P Global.
    Sources: Revenue actuals Q3’24, Q4’24, Q1’25, Q1’24 (S&P Global)*; Net income and EPS from company press releases .

KPIs (Balance Sheet)

KPI12/31/20243/31/2025
Total Assets$15.7B $16.3B
Total Net Loans$8.7B $8.9B
Deposits$12.1B $12.5B

Segment Breakdown: Not disclosed in Q1 2025 press materials .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Financial Guidance (Revenue, EPS, Margins, OpEx, Tax, etc.)Q2–Q4 2025None disclosedNone disclosedMaintained (no formal guidance provided)
Dividend per Share (Cash)Payable Feb 28, 2025Not disclosed in release (prior dividend)$0.70Raised 6% vs prior dividend

Earnings Call Themes & Trends

Note: No Q1 2025 earnings call transcript was available in the document set.

TopicPrevious Mentions (Q3 2024)Previous Mentions (Q4 2024)Current Period (Q1 2025)Trend
Interest Rate EnvironmentElevated rates supported asset yields; management closely monitoring rate changes Elevated rates continued to support investment/loan income Elevated rates continue to support asset yields Stable
Deposit Pricing/CompetitionDeposit rate increases pressured interest expense Continued monitoring deposit rates to stay competitive Higher deposit rates pressured NII; active pricing to retain/grow deposits Persistent headwind
Credit Costs/Provision——Lower provision helped net income Improving
Expense Discipline/InflationHigher non‑interest expense highlighted (inflation, salaries) over 9M 2024 Emphasis on strong cost controls Continued focus on cost controls and efficiencies Improving control
Balance Sheet GrowthAssets/loans/deposits grew vs. YE23 Assets/loans/deposits grew vs. YE23 Assets/loans/deposits all grew q/q Positive momentum
Liquidity/ALMVigilant ALM/liquidity management emphasized Same emphasis as a core practice Reiterated focus on ALM/liquidity management Consistent

Management Commentary

  • “As we start 2025, we are extremely pleased and proud to continue our industry‑leading financial results… We will remain focused and vigilant on… balance sheet, asset, liability, and liquidity management, and strong cost controls, while evaluating processes for efficiencies across our organization.” — Dennis E. Nixon, President & CEO .
  • “Net income… positively impacted by an increase in interest income… [and] a decrease in our provision for credit loss expense,” though “net interest income has been negatively impacted by an increase in interest expense… rates paid on deposits.” .

Q&A Highlights

  • No Q1 2025 earnings call transcript was available; no Q&A themes or clarifications were published in the company’s press materials .

Estimates Context

  • EPS: No S&P Global consensus EPS was available for Q1 2025 (or prior quarters in this set). Values retrieved from S&P Global.
  • Revenue: S&P Global shows revenue “actuals” of $194.89M (Q1 2025), $206.81M (Q4 2024), $203.18M (Q3 2024), and $192.87M (Q1 2024), but no consensus mean; thus, beat/miss vs. consensus cannot be assessed. Values retrieved from S&P Global.
MetricQ3 2024Q4 2024Q1 2025
Primary EPS Consensus MeanN/A*N/A*N/A*
Revenue Consensus MeanN/A*N/A*N/A*
Revenue Actual ($USD)$203.18M*$206.81M*$194.89M*
  • Items marked with an asterisk are from S&P Global. Values retrieved from S&P Global.

Key Takeaways for Investors

  • Profitability resilient: Flat EPS YoY with net income only -0.5% despite heightened deposit costs; lower provision was a tailwind .
  • Balance sheet growth is intact: assets, loans, and deposits all rose quarter‑over‑quarter, supporting earnings capacity in subsequent periods .
  • Funding cost headwind persists: management is actively pricing deposits to remain competitive; this remains the key margin swing factor .
  • Expense vigilance continues: after highlighting inflationary pressures in 2024, management continues to push efficiencies and cost controls into 2025 .
  • Limited Street coverage: lack of consensus EPS/revenue estimates reduces the “beat/miss” headline risk but places greater weight on fundamentals and capital return. Values retrieved from S&P Global.
  • Shareholder returns: 6% dividend increase (to $0.70) earlier in the quarter reinforces capital strength and confidence in cash generation .
  • Trading setup: With no formal guidance and no call transcript, narrative hinges on deposit beta trajectory and credit provision normalization; any inflection in deposit costs or sustained loan/deposit growth likely serves as the next stock catalyst .

Sources: Q1 2025 press release and 8‑K/exhibit ; Q4 2024 press release/8‑K ; Q3 2024 press release ; Dividend press release (Feb 3, 2025) . Revenue and consensus data where shown as “actuals”/“N/A” were retrieved from S&P Global (no published consensus available).