LAREDO, Texas – (COMMERCIAL THREAD) – International Bancshares Corporation (NASDAQ: IBOC), one of Texas’ largest independent banking holding companies, today reported net income for the quarter ended September 30, 2021 of $ 54.6 million or $ 0.86 of diluted earnings per common share ($ 0.86 per basic share), compared to $ 42.7 million or $ 0.67 of diluted earnings per common share ($ 0.68 per basic share) for the same period in 2020, representing a 28.4% increase in diluted earnings per share and a 27.9% increase in net income. Net income for the nine months ended September 30, 2021 was $ 197.4 million or $ 3.11 diluted earnings per common share ($ 3.12 per basic share), compared to $ 119.1 million or $ 1.86 diluted earnings per common share ($ 1.86 per basic share) for the same period of 2020, which represents a 67.2% increase in diluted earnings per share and an increase of 65.7 % of net profit.
The net income for the nine months ended September 30, 2021 was strongly impacted by the sale in the second quarter of a stake in an investment banking investment held by one of our non-banking subsidiaries, for a total amount of $ 42.8 million, net of tax. Net income for the period was also positively impacted by a decrease in the allowance for credit losses compared to the same period of 2020. The charge for credit losses charged to operations increased throughout 2020 due to the ” increase in the allowance for credit losses (“ACL”) due to the deterioration of economic conditions due to the novel coronavirus disease 2019 (“COVID-19”) and the impact of these conditions on certain segments of the our loan portfolio. Economic conditions in the first nine months of 2021 have stabilized or improved in some segments. The management of pool-specific qualitative loss factors deemed appropriate for the calculation of the ACL at December 31, 2020 has remained constant in the ACL calculation as of September 30, 2021, which positively impacted the calculation and resulted in a decrease of approximately $ 24.9 million, net of tax, in char losses of credit charged to operations for the nine-month period ended September 30, 2021 compared to the same period of 2020. Net interest income continues to be negatively affected by actions taken by the Federal Reserve Board ( “FRB”) to keep interest rates low since March 2020.
“The global health crisis resulting from COVID-19 has continued to impact businesses. Economic conditions have continued to improve, but have not fully returned to pre-pandemic levels and the timing of a full recovery remains uncertain. COVID-19 vaccines have become widely available to the general population; however, large sectors of the population continued to choose not to take the vaccine, which prolonged the pandemic. The continued improvement in expected economic conditions positively impacted our calculation of the ACL in 2021, resulting in lower credit losses compared to the same periods in 2020. ”
“We remain confident in our exceptionally strong capital position, significant liquidity and strong relational deposit base. The management strategies that were established at the onset of the pandemic remain in place and we remain fully committed to making the best possible decisions to protect the future of our business for our customers, employees and shareholders, ”said Dennis E. Nixon , President and CEO. “We will continue to monitor the crisis and its impact on our business and are confident that we are making prudent choices to ensure we continue the 55+ years of success that we have delivered. ”
Total assets as of September 30, 2021 were approximately $ 15.7 billion against around $ 14.0 billion as of December 31, 2020. Total net lending was approximately $ 7.3 billion dollars as of September 30, 2021 compared to $ 7.4 billion as of December 31, 2020. Deposits were approximately $ 12.2 billion as of September 30, 2021 compared to approximately $ 10.7 billion as of December 31, 2020.
IBC is a multi-bank financial holding company headquartered in Laredo, Texas with 186 facilities and 280 ATMs serving 87 communities in Texas and Oklahoma.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release that are not historical facts contain forward-looking information regarding future plans, projections or performance of IBC and its subsidiaries, the occurrence of which involves certain risks and uncertainties detailed in documents filed by IBC with the Securities and Exchange Commission.
Copies of the documents filed with the SEC and the IBC Annual Report (as an attachment to 10-K) can be downloaded from the SEC filing site located at http://www.sec.gov/edgar.shtml.