IBC Reports Stellar Earnings
November 03 2022 - 1:31PM
Business Wire
International Bancshares Corporation (NASDAQ:IBOC), one of the
largest independent bank holding companies in Texas, today reported
net income for the three months ended Sept. 30, 2022 was
$83.4 million or $1.34 diluted earnings per common
share ($1.34 per share basic) compared to $54.6
million or $.86 diluted earnings per common share
($.86 per share basic) for the same period of 2021, which
represents an increase of 55.8 percent in diluted earnings
per share and an increase of 52.7 percent in net income. Net
income for the first nine months of 2022 was $194.8 million
or $3.09 diluted earnings per common share ($3.10 per
share basic) compared to $197.4 million or $3.11
diluted earnings per common share ($3.12 per share basic)
for the same period of 2021, which represents a decrease of
.6 percent in diluted earnings per common share and a
decrease of 1.3 percent in net income.
The decrease in net income for the first nine months of 2022
compared to the same period of 2021 is attributed to a
non-recurring transaction in 2021 arising from the gain on the sale
of an equity interest in a merchant banking investment held by one
of our non-bank subsidiaries. The transaction resulted in a gain in
income totaling $42.8 million, net of tax, and was recorded in the
second quarter of 2021. Net income for the first nine months of
2021 without the non-recurring item was $154.6 million, after tax,
compared to $194.8 million for the same period of 2022,
representing a 26.0 percent increase. Net income for the three and
nine months ended Sept. 30, 2022 was positively impacted by an
increase in net interest income compared to the same periods of
2021 and can be attributed to an increase in the size of our
investment securities portfolio, the interest earned on funds held
at the Federal Reserve Bank, and an increase in loan interest
income, of which the latter two have increased in line with recent
Federal Reserve Board actions to raise interest rates. The increase
in those revenue streams coupled with the cost control initiatives
to streamline operations and increase efficiency in recent years
have been the primary drivers in achieving the positive earnings
results.
“The global health crisis resulting from COVID-19 has continued
to have a lingering effect on our business and the economy as a
whole. Economic conditions impacting the global economy remain
highly volatile and uncertain. We continue to monitor, manage and
take action in managing expenses in line with our legacy commitment
to expense control and remain focused on growing non-interest
income to support our historically strong earnings performance. In
addition, we are also closely monitoring our allowance for credit
losses to ensure that we maintain the required balance, and that
has resulted in related charges to income to provide protection
against losses in our loan portfolio given the uncertainty in the
economy and a potential economic recession. We have proven
throughout these last two-plus years that our forward-looking
vision and legacy commitment to expense control along with the
aggressive steps we took to reduce controllable expenses at the
inception of the pandemic have been realized and resulted in an
approximate 15 percent decrease or $46.5 million in expenses for
the year ended Dec. 31, 2021 compared to Dec. 31, 2019 and an
approximate decrease of 11.0 percent or $25.6 million for the first
nine months of 2022 compared to the same period of 2019. In
addition to this stellar performance, we are confident in our
exceptionally strong capital position, significant liquidity,
strong relationship deposit base, and responsive management
strategies to position us for continued success,” said Dennis E.
Nixon, president and CEO.
Total assets at Sept. 30, 2022 were $16.1 billion
compared to $16.0 billion at Dec. 31, 2021. Net loans were
$6.9 billion at Sept. 30, 2022 compared to $7.1
billion at Dec. 31, 2021. Total deposits were $12.9 billion
at Sept. 30, 2022 compared to $12.6 billion at Dec. 31,
2021.
IBC is a multi-bank financial holding company headquartered in
Laredo, Texas, with 167 facilities and 257 ATMs serving 75
communities in Texas and Oklahoma.
“Safe Harbor” statement under the Private Securities Litigation
Reform Act of 1995: The statements contained in this release which
are not historical facts contain forward looking information with
respect to plans, projections or future performance of IBC and its
subsidiaries, the occurrence of which involve certain risks and
uncertainties detailed in IBC’s filings with the Securities and
Exchange Commission.
Copies of IBC’s SEC filings and Annual Report (as an exhibit to
the 10-K) may be downloaded from the SEC filings site located at
http://www.sec.gov/edgar.shtml.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20221103006163/en/
Judith Wawroski Treasurer and Principal Financial Officer
International Bancshares Corporation (956) 722-7611
International Bancshares (NASDAQ:IBOC)
Historical Stock Chart
From Aug 2024 to Sep 2024
International Bancshares (NASDAQ:IBOC)
Historical Stock Chart
From Sep 2023 to Sep 2024