IBC Reports Strong Earnings
November 04 2021 - 1:43PM
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, 2021 was $54.6
million or $.86 diluted earnings per common share ($.86 per share
basic), compared to $42.7 million or $.67 diluted earnings per
common share ($.68 per share basic) for the same period in 2020,
representing an increase of 28.4 percent in diluted earnings per
share and an increase of 27.9 percent in net income. Net income for
the nine months ended Sept. 30, 2021 was $197.4 million or $3.11
diluted earnings per common share ($3.12 per share basic), compared
to $119.1 million or $1.86 diluted earnings per common share ($1.86
per share basic) for the same period of 2020, representing an
increase of 67.2 percent in diluted earnings per share and an
increase of 65.7 percent in net income.
Net income for the nine months ended Sept. 30, 2021 was
significantly impacted by the sale in the second quarter of an
equity interest in a merchant banking investment held by one of our
non-bank subsidiaries, totaling $42.8 million, net of tax. Net
income for the period was also positively affected 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 nine months of 2021
have stabilized or improved in certain segments. The pool-specific
qualitative loss factors management deemed appropriate for the ACL
calculation at Dec. 31, 2020 remained constant in the Sept. 30,
2021 ACL calculation, which positively impacted the calculation and
resulted in a decrease of approximately $24.9 million, net of tax,
in the credit loss expense charged to operations for the nine
months ended Sept. 30, 2021 compared to the same period of 2020.
Net interest income continues to be negatively impacted by the
Federal Reserve Board (“FRB”) action to keep interest rates low
since 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 and the
timeline for full recovery remains uncertain. The vaccines for
COVID-19 have become widely available to the entire population;
however, large sectors of the population have continued to choose
not to take the vaccine resulting in a prolonging of the pandemic.
The continued improvement in forecasted economic conditions
positively impacted our ACL calculation in 2021, resulting in lower
credit loss expense compared to the same periods 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 Dennis
E. Nixon President and CEO. “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 Sept. 30, 2021 were approximately $15.7
billion compared to approximately $14.0 billion at Dec. 31,
2020. Total net loans were approximately $7.3 billion at
Sept. 30, 2021 compared to $7.4 billion at Dec. 31, 2020. Deposits
were approximately $12.2 billion at Sept. 30, 2021 compared
to approximately $10.7 billion at Dec. 31, 2020.
IBC is a multi-bank financial holding company headquartered in
Laredo, Texas, with 186 facilities and 280 ATMs serving 87
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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Judith Wawroski Treasurer and Principal Financial Officer
International Bancshares Corporation (956) 722-7611
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