IBC Reports Strong Third Quarter 2013 Earnings
November 06 2013 - 12:28PM
Business Wire
International Bancshares Corporation (NASDAQ: IBOC), one of the
largest independent bank holding companies in Texas, today reported
net income available to common shareholders for the three months
ended September 30, 2013 was $31.8 million, or $.47
diluted earnings per common share and $.47 basic earnings
per common share, compared to $22.0 million or $.33
diluted earnings per common share and $.33 basic earnings
per common share for the same period in 2012, representing an
increase of 44.5 percent in net income available to common
shareholders and an increase of 42.4 percent in diluted
earnings per common share. Net income available to common
shareholders for the nine months ended September 30, 2013 was
$87.4 million, or $1.30 diluted earnings per common
share and $1.30 basic earnings per common share, compared to
$71.6 million or $1.06 diluted earnings per common
share and $1.06 basic earnings per common share for the same
period of 2012, representing an increase of 22.1 percent in
net income available to common shareholders and an increase of
22.6 percent diluted earnings per common 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 nine months ended September 30, 2012 of $22.0 million and $71.6
million, respectively, includes the amounts related to
participation in the TARP program, including stock dividends and
amounts related to the Warrants.
Net income for the nine months ended September 30, 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 investment
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 same period was negatively
impacted by a charge of $8.0 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 was also negatively impacted by
narrowing interest margins caused by slow loan demand, although
loan demand is slightly improving, and declining 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.
“I’m pleased with the Company’s earnings for the third quarter
of 2013. Net income for the first nine months and the third quarter
of 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 aggressive 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 September 30, 2013 were $12.1 billion
compared to $11.9 billion at December 31, 2012. Net
loans were $5.0 billion at September 30, 2013 compared to
$4.7 billion at December 31, 2012. Deposits were
$8.1 billion at September 30, 2013 and $8.3 billion
at December 31, 2012.
IBC is a multi-bank financial holding company headquartered in
Laredo, Texas, with 216 facilities and more than 315 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 future developments or events, expectations, plans,
projections or future performance of IBC and its subsidiaries, the
occurrence of which involve certain risks and uncertainties,
including those 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)
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