Cash was $731.9 million in the comparable filing and $451.2 million in the latest one, while net income slipped from $100.1 million to $95.8 million in the three months ended June 30.
That makes the latest 10-Q less about a dramatic earnings break than about the distance between the income statement and the balance sheet. Diluted EPS fell 4.3% to $1.54, with diluted shares essentially unchanged, so per-share math did not disguise the decline. Shares closed at $75.89 on Aug. 5, down 0.4% that day.
The company does not disclose the reason for the cash decline in the supplied filing receipts. It does disclose a change in the rate economics supporting net interest income, and it identifies employee compensation and benefits as a primary influence on non-interest expense.
Management says lower deposit-related interest costs helped net interest income during the latest three months:
"Net interest income was also positively affected by a decrease in interest expense, primarily driven by a redistribution in rates paid on deposits."
International Bancshares, Form 10-Q, Aug. 6, 2026
That is a disclosed earnings driver, but net income nevertheless fell for the three months. The filing gives no single disclosed explanation for the $4.3 million decline, leaving the rate benefit alongside the smaller bottom-line result rather than neatly explaining it.
The other unresolved piece is regulatory capital. Banking rules are not exactly known for staying in one place long enough to collect dust. International Bancshares describes a new round of proposals from the Federal Reserve, FDIC, and OCC:
"Most recently, on March 19, 2026, the Federal Reserve Board, the FDIC and the OCC jointly rescinded the 2023 Proposals and unveiled a set of re-proposed capital rules (the “2026 Proposals”) that are intended to streamline and modernize certain aspects of the Basel IV framework and be less onerous for banks than the 2023 Proposals, including based on agency estimates, due to anticipated reductions in certain CET1 capital requirements for banking organizations."
International Bancshares, Form 10-Q, Aug. 6, 2026
In plain English, the regulatory backdrop may become less demanding than the earlier proposal, but the capital framework is still being revised. That matters because the same filing says capital amounts and classifications remain subject to regulatory judgments about components, risk weightings, and other factors.
So the latest comparison leaves two separate tracks. Earnings were modestly lower alongside a disclosed reduction in interest expense, while cash moved sharply lower for a reason the supplied receipts do not identify. The capital language adds a regulatory variable without quantifying a current impact on International Bancshares.
The next comparable disclosure is the cash balance in International Bancshares' next quarterly report, with $451.2 million at June 30, 2026 as the number to place beside it.
Cash reported in the latest 10-Q: $451.2 million.