Published: November 06, 2009 06:28 pm      

IBC reports strong earnings

EDMOND — International Bancshares Corporation, one of the largest independent bank holding companies in Texas, reported this week net income of $105.6 million for the nine months ended Sept. 30, an increase of 5.2 percent compared to the same period of 2008; net income for the three months ended Sept. 30 was $37.0 million, an increase of 9.1 percent compared to the same period of 2008, prior to amounts related to participation in the TARP program, including preferred stock dividends and amounts related to the Warrants.

After these amounts, net income for the third quarter of 2009 applicable to common shareholders was $33.7 million, or $.49 diluted earnings per common share and $.49 basic earnings per common share, as compared to $33.9 million or $.49 diluted earnings per common share and $.49 basic earnings per common share for the same period of 2008, absent any TARP program amounts, as the TARP funds were not received until Dec. 23, which represents a decrease of .6 percent in net income available to common shareholders.

Net income for the nine months ended Sept. 30 applicable to common shareholders was $95.9 million, or $1.40 diluted earnings per common share and $1.40 basic earnings per common share, as compared to $100.4 million or $1.46 diluted earnings per common share and $1.46 basic earnings per common share for the same period of 2008, absent any TARP program amounts, as the TARP funds were not received until Dec. 23, 2008, representing a decrease of 4.1 percent in diluted earnings per common share and a decrease of 4.5 percent in net income available to common shareholders.

Net income was negatively impacted during the first nine months by an increase in the provision for probable loan losses that the company recorded during the first three quarters of 2009. The increase in the provision can be attributed to the general weakness in the economy and the impact that weakness has on the Company’s loan portfolio and borrowers. Additionally, the company was negatively impacted in the second quarter by an industry-wide FDIC special assessment of $3.3 million, net of tax. Net income for the first nine months of 2009 was positively affected by the increase in net interest margin of the company, and gains on sales of investment securities of about $7.7 million, net of tax.