IBC Reports 2020 Earnings
August 06 2020 - 1:12PM
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 June 30, 2020 was
$41.5 million or $.65 diluted earnings per common
share ($.66 per share basic), compared to $50.0
million or $.76 diluted earnings per common share
($.76 per share basic) for the same period in 2019,
representing a decrease of 14.5 percent in diluted earnings
per share and a decrease of 17.0 percent in net income. Net
income for the six months ended June 30, 2020 was $76.3
million or $1.19 diluted earnings per common share
($1.19 per share basic), compared to $101.9 million
or $1.55 diluted earnings per common share ($1.55 per
share basic) for the same period of 2019, representing a decrease
of 23.2 percent in diluted earnings per share and a decrease
of 25.1 percent in net income.
Net income for the six months ended June 30, 2020 was primarily
impacted by an increase in the provision for credit losses arising
from the economic downturn that occurred in the first and second
quarter as a result of COVID-19 and the impact that downturn had on
our allowance for credit loss calculation for those periods. We
adopted the provisions of ASU 2016-13 on Jan. 1, 2020, resulting in
a transition from the long-standing incurred loss model to an
expected credit loss model that recognizes credit losses over the
life of a financial asset. Under the new model, our provision for
credit losses increased to $22.0 million, net of tax for the six
months ended June 30, 2020. Net income was also impacted by the
Federal Reserve Board action to rapidly decrease interest rates in
March 2020.
In March 2020, the World Health Organization recognized the
outbreak of the novel Coronavirus Disease 2019 (“COVID-19”) as a
pandemic. The global health crisis from COVID-19 and government
responses to the crisis have created never-before-seen consequences
and disruption in all areas of the U.S. and global economies. We
have continued to work with our customers to assist them through
these difficult times and we are capitalizing on our strong capital
position and strong liquidity to ensure that we are correctly
positioned and have the financial strength to navigate the crisis
to protect our company, our employees, our customers and our
shareholders. We are working with our customers on a case-by-case
basis on temporary deferrals of interest and/or principal payments
on loans and have taken an active role in assisting customers in
obtaining loans through the Small Business Administration’s
Paycheck Protection Program.
“The global health crisis resulting from COVID-19 has impacted
our business and may continue to impact our business as long as
future economic conditions remain unclear. Despite these uncertain
times, we continue to be confident in our exceptionally strong
capital position, significant liquidity, strong relationship
deposit base and responsive management strategies to guide us
through the crisis – all aimed at providing superior returns to our
shareholders as we have for the past 54 years. We remain fully
committed to making the best decisions possible as we navigate the
effects of the crisis to protect the future of our company for our
customers, employees and shareholders,” said Dennis E. Nixon
president and CEO.
Total assets at June 30, 2020 were $13.3 billion compared
to $12.1 billion at Dec. 31, 2019. Total net loans were
$7.4 billion at June 30, 2020 compared to $6.8
billion at Dec. 31, 2019. Deposits were $10.0 billion at
June 30, 2020 compared to $8.8 billion at Dec. 31, 2019.
IBC is a multi-bank financial holding company headquartered in
Laredo, Texas, with 187 facilities and 282 ATMs serving 88
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.
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version on businesswire.com: https://www.businesswire.com/news/home/20200806005822/en/
Judith Wawroski, Treasurer and Principal Financial Officer
International Bancshares Corporation (956) 722-7611
International Bancshares (NASDAQ:IBOC)
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