IBC Reports Strong Earnings
06 August 2021 - 2:33AM
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, 2021 was
$92.0 million or $1.45 diluted earnings per common
share ($1.45 per share basic), compared to $41.5
million or $.65 diluted earnings per common share
($.66 per share basic) for the same period in 2020,
representing an increase of 123.1 percent in diluted
earnings per share and an increase of 121.7 percent in net
income. Net income for the six months ended June 30, 2021 was
$142.8 million or $2.25 diluted earnings per common
share ($2.25 per share basic), compared to $76.3
million or $1.19 diluted earnings per common share ($1.19
per share basic) for the same period of 2020, representing an
increase of 89.1 percent in diluted earnings per share and
an increase of 87.2 percent in net income.
Net income for the three and six months ended June 30, 2021 was
significantly impacted by the sale 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
periods was also positively affected by a decrease in the provision
for credit losses compared to the same periods 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 six months of 2021 have stabilized or
slightly 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 June 30, 2021
ACL calculation, which positively impacted the calculation and
resulted in a decrease of approximately $20.1 million, net of tax,
in the credit loss expense charged to operations for the six months
ended June 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 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. The vaccines
for COVID-19 have become widely available to larger sectors of the
population. However, large sectors of the population have chosen
not to take the vaccine, resulting in a prolonging of the pandemic
and a delay in understanding the long-term impacts of the pandemic.
The slight improvement in forecasted economic conditions positively
impacted our ACL calculation in the first and second quarters,
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 June 30, 2021 were approximately $15.3
billion compared to approximately $14.0 billion at Dec. 31,
2020. Total net loans were approximately $7.3 billion at
June 30, 2021 compared to $7.4 billion at Dec. 31, 2020.
Deposits were approximately $11.9 billion at June 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 281 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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version on businesswire.com: https://www.businesswire.com/news/home/20210805005885/en/
Judith Wawroski, Treasurer and Principal Financial Officer
International Bancshares Corporation (956) 722-7611
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