Market Overview

IBC Reports 46% Increase in Year to Date 2018 Earnings

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International Bancshares Corporation (NASDAQ:IBOC), one of the largest
independent bank holding companies in Texas, today reported net income
for the six months ended June 30, 2018 of $106.3 million or $1.59
diluted earnings per common share ($1.61 per share basic)
compared to $72.6 million or $1.09 diluted earnings per
common share ($1.10 per share basic), which results in an
increase of 46% in net income and 46% in diluted earnings
per share over the corresponding period of 2017. Net income for the
three months ended June 30, 2018 was $52.9 million or $.79
diluted earnings per common share ($.80 per share basic) compared
to $40.6 million or $.61 diluted per common share ($.61
per share basic), which represents a 30% increase in net income
and a 30% increase in diluted earnings per share over the
corresponding period of 2017.

Net income for the three and six months ended June 30, 2018 was
positively impacted by a decrease in the provision for probable loan
losses compared to the same periods of 2017 as a result of a decrease in
the historical loss experience in the commercial category of the
allowance for probable loan losses calculation. Net income for the same
periods was also impacted positively by an increase in net interest
income due to a higher volume of loans and an increase in the overall
yield of the loan portfolio. Interest expense increased slightly for the
same period and can be attributed to an increase in the cost of
borrowings expense and the rates paid on deposit liabilities, which have
increased as a result of recent Federal Reserve Board actions to raise
interest rates. Net income for the first six months of 2018 was also
positively impacted by a decrease in the effective tax rate on the
Company's taxable income, arising from the Tax Cut and Jobs Act signed
into law on December 22, 2017. As a result of the decrease in corporate
tax rates to 21% from 35%, income tax expense decreased by approximately
$19 million.

"I continue to be very pleased with the Company's exceptional earnings
success for the second quarter and the first six months of 2018. The
success was achieved by improved performance in the Company's core bank
operations, but also by the actions taken to reform the tax laws at the
end of 2017, which have benefitted the Company and the economy as a
whole, including the communities we serve. We have a proven track record
of success and 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 June 30, 2018 were $12.0 billion compared to $12.2
billion at December 31, 2017. Total net loans were $6.4 billion
at June 30, 2018 compared to $6.3 billion at December 31, 2017.
Deposits were $8.7 billion at June 30, 2018 compared to $8.5
billion at December 31, 2017.

IBC is a multi-bank financial holding company headquartered in Laredo,
Texas, with 191 facilities and 289 ATMs serving 90 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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