IBC Reports Record 2022 Earnings

Rhea-AI Summary

International Bancshares Corporation (NASDAQ: IBOC) reported a strong annual net income of $300.2 million for 2022, a 19.5% increase in diluted earnings per share to $4.78. This reflects an 18.2% rise in net income from the previous year. Q4 2022 net income surged 86.5% to $105.4 million or $1.69 EPS. The results were driven by a growth in net interest income due to an expanded investment portfolio and higher loan interest, despite rising expenses. Total assets decreased to $15.5 billion, while deposits grew to $12.7 billion by year-end.

Positive

• Annual net income rose to $300.2 million, up 18.2% from 2021.
• Diluted EPS increased by 19.5% to $4.78.
• Net income for Q4 2022 increased by 86.5% to $105.4 million.
• Growth in net interest income driven by larger investment portfolio and higher loan interest.

Negative

• Total assets decreased from $16.0 billion in 2021 to $15.5 billion in 2022.
• Expenses rose despite cost control initiatives.

LAREDO, Texas--(BUSINESS WIRE)-- International Bancshares Corporation (NASDAQ:IBOC), one of the largest independent bank holding companies in Texas, today reported annual net income for 2022 of $300.2 million or $4.78 diluted earnings per common share ($4.79 per share basic) compared to $253.9 million or $4.00 diluted earnings per common share ($4.01 per share basic), which represents an increase of 19.5 percent in diluted earnings per share and an 18.2 percent increase in net income over the corresponding period in 2021. Net income for the three months ended Dec. 31, 2022 was $105.4 million or $1.69 diluted earnings per common share ($1.69 per share basic), compared to $56.5 million or $.89 diluted earnings per common share ($.90 per share basic) for the same period in 2021, representing an increase of 86.5 percent in net income and an 89.9 percent increase in diluted earnings per share.

Net income for the year ended Dec. 31, 2022 was positively impacted by an increase in net interest income, which is primarily attributable to an increase in the size of our investment portfolio, interest earned on funds held at the Federal Reserve Bank and an increase in loan interest income, of which the latter two have increased in line with Federal Reserve Board actions to raise interest rates throughout 2022. Cost control initiatives to streamline operations and greater operational efficiencies in recent years have been complemented by the increase in interest income to achieve these results. We have continued to monitor economic conditions, including a possible recession, impacting our loan portfolio and have factored those forecasts into our allowance for credit loss calculation to endeavor capturing the risk of potential losses in our portfolio arising from those uncertain economic conditions.

International Bancshares Corporation and Subsidiaries
Consolidated Financial Summary
	Years Ended Dec. 31,
		2022			2021			2020			2019
	(Dollars in thousands, except per share data)
Interest income	$	525,781		$	398,103		$	427,008		$	492,401
Interest expense		(38,156)			(26,831)			(39,119)			(58,629)
Net interest income		487,625			371,272			387,889			433,772
Provision for probable loan losses		(21,651)			(7,955)			(45,379)			(18,843)
Non-interest income		187,134			222,326			150,579			154,826
Non-interest expense		(270,46)			(263,316)			(281,331)			(309,801)
Income before income taxes		382,639			322,327			211,758			259,954
Income taxes		(82,407)			(68,405)			(44,439)			(54,850)
Net income	$	300,232		$	253,922		$	167,319		$	205,104
Net income per common share
Basic	$	4.79		$	4.01		$	2.63		$	3.13
Diluted	$	4.78		$	4.00		$	2.62		$	3.12

“Economic conditions impacting the global economy remain highly volatile and uncertain. We continue to monitor and manage expenses in line with our legacy commitment to expense control and remain focused on growing non-interest income to support our historically strong earnings performance. Non-interest income was positively impacted in 2021 by a one-time merchant banking event adding $55.9 million to total non-interest income in 2021. Our net interest margin has been positively impacted by the increases in interest rates on earning assets while confronting rising interest expense from increasing deposit rates, which we have raised in a very measured way. We have proven throughout these last three-plus years that our forward-looking vision and legacy commitment to expense control, along with the aggressive steps we took to reduce controllable expenses at the inception of the pandemic have been realized and resulted in a decrease of approximately 12.7 percent or $39.3 million in expenses for the year ended Dec. 31, 2022 compared to Dec. 31, 2019. In addition to this stellar performance, we are confident in our exceptionally strong capital position, significant liquidity, strong relationship deposit base and responsive management strategies to position us for continued success,” said Dennis E. Nixon, president and CEO.

Total assets at Dec. 31, 2022 were $15.5 billion compared to $16.0 billion at Dec. 31, 2021. Total net loans were $7.3 billion at Dec. 31, 2022 compared to $7.1 billion at Dec. 31, 2021. Deposits were $12.7 billion at Dec. 31, 2022 compared to $12.6 billion at Dec. 31, 2021.

IBC is a multi-bank financial holding company headquartered in Laredo, Texas, with 167 facilities and 257 ATMs serving 75 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230223005880/en/

Judith Wawroski

Treasurer and Principal Financial Officer

International Bancshares Corporation

(956) 722-7611

Source: International Bancshares Corporation

FAQ

What were the earnings results for International Bancshares Corporation in 2022?

International Bancshares Corporation reported a net income of $300.2 million in 2022, with diluted earnings per share of $4.78.

How did International Bancshares Corporation perform in Q4 2022?

In Q4 2022, International Bancshares Corporation reported a net income of $105.4 million, representing an 86.5% increase compared to the same period in 2021.

What is the future outlook for IBOC following their recent earnings report?

The company is focusing on managing expenses and growing non-interest income while monitoring economic conditions that may impact their loan portfolio.

What were the key changes in total assets and deposits for IBOC in 2022?

Total assets decreased to $15.5 billion, while deposits increased to $12.7 billion by the end of 2022.