IBC Reports Stellar Earnings

International Bancshares Corporation (NASDAQ:IBOC), one of the largest independent bank holding companies in Texas, today reported net income for the three months ended Sept. 30, 2022 was $83.4 million or $1.34 diluted earnings per common share ($1.34 per share basic) compared to $54.6 million or $.86 diluted earnings per common share ($.86 per share basic) for the same period of 2021, which represents an increase of 55.8 percent in diluted earnings per share and an increase of 52.7 percent in net income. Net income for the first nine months of 2022 was $194.8 million or $3.09 diluted earnings per common share ($3.10 per share basic) compared to $197.4 million or $3.11 diluted earnings per common share ($3.12 per share basic) for the same period of 2021, which represents a decrease of .6 percent in diluted earnings per common share and a decrease of 1.3 percent in net income.

The decrease in net income for the first nine months of 2022 compared to the same period of 2021 is attributed to a non-recurring transaction in 2021 arising from the gain on the sale of an equity interest in a merchant banking investment held by one of our non-bank subsidiaries. The transaction resulted in a gain in income totaling $42.8 million, net of tax, and was recorded in the second quarter of 2021. Net income for the first nine months of 2021 without the non-recurring item was $154.6 million, after tax, compared to $194.8 million for the same period of 2022, representing a 26.0 percent increase. Net income for the three and nine months ended Sept. 30, 2022 was positively impacted by an increase in net interest income compared to the same periods of 2021 and can be attributed to an increase in the size of our investment securities portfolio, the 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 recent Federal Reserve Board actions to raise interest rates. The increase in those revenue streams coupled with the cost control initiatives to streamline operations and increase efficiency in recent years have been the primary drivers in achieving the positive earnings results.