IBC Reports Strong First Quarter 2021 Earnings
May 06 2021 - 12:48PM
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 March 31, 2021 was
approximately $50.8 million or $.80 diluted earnings
per common share ($.80 per share basic), compared to
approximately $34.8 million or $.53 diluted earnings
per common share ($.54 per share basic) for the same period
in 2020, representing an increase of approximately 46.0
percent in net income and approximately 50.9 percent in
diluted earnings per share.
Net income for the three months ended March 31, 2021 was
primarily impacted by a decrease in the provision for credit losses
compared to the same period of 2020. The credit loss expense
charged to operations increased throughout 2020 as a result of
increases in the allowance for credit losses (“ACL”) due to
deteriorating economic conditions as a result of the novel
Coronavirus Disease 2019 (“COVID-19”) and the impact of those
conditions on certain segments of our loan portfolio. Economic
conditions during the first quarter of 2021 have stabilized and in
certain segments, slightly improved. The pool-specific qualitative
loss factors that management deemed appropriate for the ACL
calculation at Dec. 31, 2020 remained constant in the March 31,
2021 ACL calculation, which positively impacted the calculation and
resulted in a decrease of approximately $12.4 million, net of tax,
in the credit loss expense charged to operations for the three
months ended March 31, 2021 compared to the same period of 2020.
Net interest income continues to be negatively impacted by the
Federal Reserve Board (“FRB”) action to decrease interest rates in
March 2020.
“The global health crisis resulting from COVID-19 has continued
to impact business. Economic conditions have continued to improve
but have not fully recovered to pre-pandemic levels. As the
vaccines for COVID-19 have become more widely available to larger
sectors of the population, there is more certainty that the
pandemic will end, and the long-term impacts can be better
assessed. The slight improvement in forecasted economic conditions
positively impacted our ACL calculation in the first quarter,
resulting in lower credit loss expense compared to the first
quarter of 2020. We continue to be confident in our exceptionally
strong capital position, significant liquidity, and strong
relationship deposit base. Management strategies that were
established at the onset of the pandemic remain in place and we
remain fully committed to making the best decisions possible to
protect the future of our company for our customers, employees and
shareholders,” said President and CEO Dennis E. Nixon. “We will
continue to monitor the crisis and the impact on our business and
are confident that we are making prudent choices to ensure that we
continue the 55-plus years of success we have delivered.”
Total assets at March 31, 2021 were approximately $14.9
billion compared to approximately $14.0 billion at Dec. 31,
2020. Total net loans were approximately $7.4 billion at
March 31, 2021 and Dec. 31, 2020. Deposits were approximately
$11.5 billion at March 31, 2021 compared to approximately
$10.7 billion at Dec. 31, 2021.
IBC is a multi-bank financial holding company headquartered in
Laredo, Texas, with 186 facilities and 280 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/20210506005981/en/
Judith Wawroski Treasurer and Principal Financial Officer
International Bancshares Corporation (956) 722-7611
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