IBC Reports Strong 2016 Earnings
February 27 2017 - 1:32PM
Business Wire
International Bancshares Corporation (NASDAQ:IBOC), one of the
largest independent bank holding companies in Texas, today reported
annual net income for 2016 of $133.9 million or $2.02
diluted earnings per common share ($2.03 per share basic)
compared to $136.7 million or $2.05 diluted earnings
per common share ($2.06 per share basic), which represents a
2.0 percent decrease in net income and a 1.5 percent
decrease in diluted earnings per share over the corresponding
period in 2015. Net income for the three months ended December 31,
2016 was $35.5 million or $.53 diluted earnings per
common share ($.54 per share basic) for the same period in
2015, compared to $35.0 million or $.52 diluted
earnings per common share ($.53 per share basic),
representing an increase of 1.4 percent in net income and a
1.9 percent increase in diluted earnings per share.
Net income for the year ended December 31, 2016 was negatively
impacted by a small decrease in the net interest margin as a result
of a decrease in interest income on available-for-sale securities
and an increase in non-interest expense. The decrease in interest
income on available-for-sale securities is due to a decrease in the
average outstanding balance of such investments. The decrease in
the balance is being driven primarily by the lack of available
investments in the market that fit the Company’s investment profile
and investment goals. Net income was positively impacted by the
sale of an investment by the merchant banking entities in which the
Company holds an equity interest, the Company’s share of revenue on
a non-financial equity investment it holds accounted for under the
equity method of accounting, and insurance proceeds from a policy
the lead bank subsidiary had purchased to cover the cost of
employee compensation and benefit programs, resulting in income of
approximately $5.0 million, after tax. Net income was negatively
impacted by a charge of $7.0 million, $4.6 million after tax, to
unwind a portion of a subsidiary bank’s long-term repurchase
agreements in order to improve the net interest margin in the long
term. Also contributing to an increase in non-interest expense is
an increase of $3.9 million, $2.5 million after tax, arising from
additional software and software maintenance costs in additional
investments made by the Company in its network infrastructure.
International Bancshares Corporation and
Subsidiaries Consolidated Financial Summary
Years EndedDecember 31, 2016
2015 (Dollars in thousands, except per share data)
Interest income $ 387,914 $ 396,754 Interest expense (43,129
) (44,317 ) Net interest income 344,785 352,437 Provision for
probable loan losses (19,859 ) (24,405 ) Non-interest income
161,702 155,734 Non-interest expense (289,625 )
(276,924 ) Income before income taxes 197,003 206,842 Income
taxes (63,071 ) (70,116 ) Net income $
133,932
$
136,726 Net income per common share
Basic $ 2.03 $ 2.06 Diluted $ 2.02 $ 2.05
“I’m pleased with the Company’s earnings success for the quarter
and year ended December 31, 2016. Management remains committed to
achieving superior earnings despite the continued challenges facing
the banking industry and the U.S. economy as a whole, including
continuously increasing regulatory burdens, the continued impact of
overseas markets on the U.S. and the negative impact on U.S.
exports and cross border trade between the U.S. and Mexico arising
from the strength of the dollar. The Company continues to maintain
strong liquidity, focused expense control, sound credit
underwriting standards and a healthy investment strategy. We
continue to achieve earnings that exceed the majority of our peers
based on Bank Holding Company Performance Reports compiled by the
Federal Financial Institutions Examination Council, and 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, 2016 and December 31, 2015
were $11.8 billion. Total net loans were $5.9 billion
at December 31, 2016 and December 31, 2015. Deposits were
$8.6 billion at December 31, 2016 compared to
$8.5 billion at December 31, 2015.
IBC is a multi-bank financial holding company headquartered in
Laredo, Texas, with 194 facilities and 307 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: http://www.businesswire.com/news/home/20170227006295/en/
International Bancshares CorporationJudith Wawroski,
956-722-7611Senior Vice President
International Bancshares (NASDAQ:IBOC)
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