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International Bancshares Corporation (NASDAQ: IBOC) reported a net income of $111.5 million for the first half of 2022, reflecting a 21.9% decrease compared to $142.8 million in the same period of 2021. Diluted EPS for the same timeframe fell 21.8% to $1.76. A significant factor was a non-recurring gain from an equity sale in 2021. Total assets rose to $16.3 billion, while net loans decreased to $6.9 billion. The company continues to manage expenses proactively amidst economic challenges.
Positive
Total assets increased by $0.3 billion from $16.0 billion to $16.3 billion.
Deposits rose by $0.3 billion from $12.6 billion to $12.9 billion.
Confident management strategy aimed at expense control resulted in a 12.9% decrease in expenses for the first half of 2022 compared to the same period in 2019.
Negative
Net income decreased by 21.9% to $111.5 million from $142.8 million year-over-year.
Diluted EPS dropped 21.8% to $1.76 from $2.25 year-over-year.
Total net loans decreased by $0.2 billion from $7.1 billion to $6.9 billion.
LAREDO, Texas--(BUSINESS WIRE)--
International Bancshares Corporation (NASDAQ:IBOC), one of the largest independent bank holding companies in Texas, today reported net income for the first six months of 2022 of $111.5 million or $1.76 diluted earnings per common share ($1.77 per share basic) compared to $142.8 million or $2.25 diluted earnings per common share ($2.25 per share basic) for the same period of 2021, which represents a decrease of 21.8 percent in diluted earnings per common share and a decrease of 21.9 percent in net income. Net income for the three months ended June 30, 2022 was $58.0million or $.92diluted earnings per common share ($.92 per share basic) compared to $92.0million or $1.45diluted earnings per common share ($1.45per share basic) for the same period of 2021, which represents a decrease of 36.6 percent in diluted earnings per share and a 37.0 percent decrease in net income.
The decrease in net income for the first six months of 2022 compared to the same period of 2021 is attributed to a non-recurring transaction in 2021 arising from the sale of an equity interest in a merchant banking investment held by one of our non-bank subsidiaries. The transaction resulted in income totaling $42.8 million, net of tax, and was recorded in the second quarter of 2021. Net income for the first six months of 2021 without the non-recurring item was $100.0 million, after tax, compared to $111.5 million for the same period of 2022, representing an 11.5 percent increase.
“The global health crisis resulting from COVID-19 has continued to have a lingering effect on our business and the economy as a whole. Global supply chain issues affecting most sectors of the economy have resulted in historically high levels of inflation. The Federal Reserve Board actions to control inflation may have begun too late and an economic recession may be in our future. We continue to monitor, manage and take action on reducing controllable 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. We have proven throughout these last two-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 worked and resulted in an approximate 15 percent decrease, or $46.5 million, in expenses for the year ended Dec. 31, 2021 compared to Dec. 31, 2019, and an approximate 12.9 percent decrease, or $19.7 million, for the first six months of 2022 compared to the same period of 2019. 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 June 30, 2022 were $16.3 billion compared to $16.0 billion at Dec. 31, 2021. Total net loans were $6.9 billion at June 30, 2022 compared to $7.1 billion at Dec. 31, 2021. Deposits were $12.9 billion at June 30, 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 259 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.
Judith Wawroski,
Treasurer and Principal Financial Officer
International Bancshares Corporation (956) 722-7611
Source: International Bancshares Corporation
FAQ
What is International Bancshares Corporation's net income for the first half of 2022?
International Bancshares Corporation reported a net income of $111.5 million for the first half of 2022.
How did the diluted earnings per share change for IBOC in 2022?
The diluted earnings per share for IBOC decreased by 21.8% to $1.76 in 2022 compared to $2.25 in 2021.
What are the total assets for IBOC as of June 30, 2022?
As of June 30, 2022, International Bancshares Corporation's total assets were $16.3 billion.
How did net loans at IBOC change in 2022?
Net loans at International Bancshares Corporation decreased to $6.9 billion as of June 30, 2022, down from $7.1 billion at the end of 2021.
What trends affected IBOC's financial performance in 2022?
IBOC's financial performance in 2022 was affected by a decrease in net income and diluted EPS largely due to a non-recurring transaction from the previous year.
