IBC Reports 2020 Earnings
February 25 2021 - 1:26PM
Business Wire
International Bancshares Corporation (NASDAQ:IBOC), one of the
largest independent bank holding companies in Texas, today reported
annual net income for 2020 of $167.3 million or $2.62
diluted earnings per common share ($2.63 per share
basic) compared to $205.1 million or $3.12
diluted earnings per common share ($3.13 per share
basic), which represents a decrease of 16.0 percent in
diluted earnings per share and an 18.4 percent decrease in
net income over the corresponding period in 2019. Net income for
the three months ended December 31, 2020 was $48.2 million
or $.76 diluted earnings per common share ($.76 per
share basic), compared to $51.7 million or $.78
diluted earnings per common share ($.79 per share basic) for
the same period in 2019, representing a decrease of 6.8
percent in net income and a 2.6 percent decrease in
diluted earnings per share.
Net income for the year ended December 31, 2020 continues to be
impacted by our provision for credit losses arising from the
economic downturn as a result of COVID-19, and the impact that
downturn had on our allowance for credit loss calculation for the
period. We adopted the provisions of ASU 2016-13 on January 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 $35.8 million, net of tax
for the year ended December 31, 2020. Net income for the period
also continues to be impacted by low market rates as a result of
the Federal Reserve Board action that rapidly decreased interest
rates in March 2020, driving interest income down, as well as a
decline in non-interest income caused by lower transaction volumes
as a result of the pandemic.
We continue to work with our customers to assist them through
these difficult times on a case-by-case basis on temporary
deferrals of interest and/or principal payments on loans. We took
an active role in assisting customers in obtaining loans through
the Small Business Administration’s Paycheck Protection Programs
(“PPP programs”) and are now transitioning to helping those same
customers submit forgiveness applications pursuant to the PPP
programs.
International Bancshares
Corporation and Subsidiaries
Consolidated Financial
Summary
Years Ended December
31,
2020
2019
(Dollars in thousands, except
per share data)
Interest income
$
427,008
$
492,401
Interest expense
(39,119)
(58,629)
Net interest income
387,889
433,772
Provision for probable loan losses
(45,379)
(18,843)
Non-interest income
150,579
154,826
Non-interest expense
(281,331)
(309,801)
Income before income taxes
211,758
259,954
Income taxes
(44,439)
(54,850)
Net income
$
167,319
$
205,104
Net income per common share
Basic
$
2.63
$
3.13
Diluted
$
2.62
$
3.12
“The global health crisis resulting from COVID-19 has continued
to impact our business. The long-term impact is still unknown since
future economic conditions remain unclear. The newly developed
vaccines provide hope that the pandemic will end soon, but the
timing remains to be seen since the vaccines are not yet widely
available to most of the population,” said Dennis E. Nixon,
president and CEO. “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,
including a very focused effort to reduce expenses and increase
efficiencies, all aimed at providing superior returns to our
shareholders as we have for the past 55 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.”
Total assets at December 31, 2020 were $14.0 billion
compared to $12.1 billion at December 31, 2019. Total net
loans were $7.4 billion at December 31, 2020 compared to
$6.8 billion at December 31, 2019. Deposits were
$10.7 billion at December 31, 2020 compared to $8.8
billion at December 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/20210225006002/en/
Judith Wawroski, Treasurer and Principal Financial Officer
International Bancshares Corporation (956) 722-7611
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