IBC Announces Strong 2013 Earnings
February 24 2014 - 01:18PM
Business Wire
International Bancshares Corporation (NASDAQ:IBOC), one of the
largest independent bank holding companies in Texas, today reported
annual net income available to common shareholders for 2013 of
$126.4 million or $1.88 diluted earnings per common
share ($1.88 per share basic) compared to $93.5
million or $1.39 diluted earnings per common share
($1.39 per share basic), which represents a 35.2
percent increase in net income and a 35.3 percent increase
in diluted earnings per share over the corresponding period in
2012. Net income available to common shareholders for the three
months ended December 31, 2013 was $38.9 million or
$.58 diluted earnings per common share ($.58 per
share basic), compared to $21.9 million or $.32
diluted earnings per common share ($.32 per share basic),
representing an increase of 77.6 percent in net income
available to common shareholders and a 81.3 percent increase
in diluted earnings per share. The Company exited the TARP Capital
Purchase program in the fourth quarter of 2012. The net income
available to common shareholders for the three and twelve months
ended December 31, 2012 of $21.9 million and $93.5 million,
respectively, includes the amounts related to participation in the
TARP program, including stock dividends and amounts related to the
Warrants.
Net income available to common shareholders for the year ended
December 31, 2013 was positively affected by the repayment of the
TARP funds in the fourth quarter of 2012, which eliminated the
continued payment of dividends on the Senior Preferred Stock that
had been held by the U.S. Treasury, as well as the sale of
available for sale securities totaling $6.2 million, net of tax.
The securities sales were a result of the Company re-positioning a
portion of the investment portfolio. Net income for the year ended
December 31, 2012 was also positively impacted by the sale of
available-for-sale investment securities totaling $25 million, net
of tax. Net income for the years ended December 31, 2013 and 2012
was negatively impacted by a charge of $8.0 million, net of tax,
and $20.5 million, net of tax, as a result of the Company’s lead
bank subsidiary’s early termination of a portion of its long-term
repurchase agreements in order to help manage its long-term funding
costs. Net income for the year ended December 31, 2013 was
positively impacted by improving net interest margins as a result
of lower rates paid on securities sold under repurchase agreements
and time deposits. Net income for the years ended December 31, 2013
and 2012 was negatively impacted by slow loan demand, although it
is improving, and yields in the bond markets. Net income also
continues to be negatively affected by the burden of increasing
compliance costs arising from the Dodd-Frank Act and heightened
regulatory oversight.
International Bancshares Corporation
and Subsidiaries
Consolidated Financial Summary
Years EndedDecember 31,
2013 2012
(Dollars in thousands, except per share
data)Unaudited
Interest income $ 363,217 $ 375,639 Interest expense
(54,632 ) (74,499
)
Net interest income 308,585 301,140 Provision for probable
loan losses (22,968 ) (27,959 ) Non-interest income 189,605 200,591
Non-interest expense (292,632 )
(315,372
)
Income before income taxes 182,590 158,400 Income
taxes (56,239 ) (50,565
)
Net income $
126,351
$
107,835 Preferred stock
dividends
-
(14,362 ) Net income
available to common shareholders $
126,351
$
93,473
Net income per common share Basic $ 1.88 $ 1.39
Diluted $ 1.88 $ 1.39
“I’m pleased with the Company’s continued earnings success for
2013. Improved net income for the fourth quarter and twelve months
ended December 31, 2013, reflects positively on IBC’s commitment to
superior earnings, particularly in view of the continued regulatory
challenges confronting the industry and the still unsettled
economic environment. Management has taken and will continue to
take steps to improve revenues and control expenses in this
challenging period with the goal of improving performance. The
elimination of the preferred stock dividends paid under the TARP
program had a positive impact on shareholder earnings, as those
dividend obligations no longer exist. The Company has maintained
strong liquidity, its sound credit underwriting standards and a
healthy investment strategy. We are confident in the strength of
our balance sheet and our strong capital position,” said Dennis E.
Nixon, President and CEO.
Total assets at December 31, 2013 were $12.1 billion
compared to $11.9 billion at December 31, 2012. Total
net loans were $5.1 billion at December 31, 2013
compared to $4.7 billion at December 31, 2012. Deposits
were $8.2 billion at December 31, 2013 compared to
$8.3 billion at December 31, 2012.
IBC is a multi-bank financial holding company headquartered in
Laredo, Texas, with 211 facilities and 321 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.
International Bancshares CorporationJudith Wawroski,
956-722-7611First Vice President
International Bancshares (NASDAQ:IBOC)
Historical Stock Chart
From Feb 2024 to Mar 2024
International Bancshares (NASDAQ:IBOC)
Historical Stock Chart
From Mar 2023 to Mar 2024