EXHIBIT 99
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Contact: | | Judith Wawroski, Treasurer and Principal Financial Officer | |
| | International Bancshares Corporation | |
| | (956) 722-7611 | |
FOR IMMEDIATE RELEASE:
IBC Reports 37% Increase in Earnings in 2023
LAREDO, Texas—(BUSINESS WIRE)— February 26, 2024—International Bancshares Corporation (NASDAQ:IBOC), one of the largest independent bank holding companies in Texas, today reported annual net income for 2023 of $411.8 million or $6.62 diluted earnings per common share ($6.63 per share basic) compared to $300.2 million or $4.78 diluted earnings per common share ($4.79 per share basic), which represents an increase of 38.5 percent in diluted earnings per share and a 37.2 percent increase in net income over the corresponding period in 2022. Net income for the three months ended December 31, 2023 was $106.4 million or $1.71 diluted earnings per common share ($1.71 per share basic), compared to $105.4 million or $1.68 diluted earnings per common share ($1.69 per share basic) for the same period in 2022, representing an increase of 1.0 percent in net income and a 1.8 percent increase in diluted earnings per share.
Net income for the year ended December 31, 2023 was positively impacted by an increase in net interest income, which is primarily attributable to an increase in the size of our investment 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 consistently with Federal Reserve Board actions to raise interest rates in 2022 and 2023. Net income for the period has also been impacted by increases in interest expense, primarily driven by an increase in interest paid on deposits. We closely monitor rates paid on deposits to remain competitive in the current economic environment and retain deposits. 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 these results.
International Bancshares Corporation and Subsidiaries
Consolidated Financial Summary
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| | Years Ended
December 31, |
| | 2023 | | 2022 | | | 2021 | | | 2020 | | | 2019 |
| | (Dollars in thousands, except per share data)
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Interest income | $ | 800,162 | $ | 525,781 | | $ | 398,103 | | $ | 427,008 | | $ | 492,401 |
Interest expense | | (136,661) | | (38,156) | | | (26,831) | | | (39,119) | | | (58,629) |
Net interest income | | 663,501 | | 487,625 | | | 371,272 | | | 387,889 | | | 433,772 |
Provision for probable loan losses | | (34,576) | | (21,651) | | | (7,955) | | | (45,379) | | | (18,843) |
Non-interest income | | 169,941 | | 187,134 | | | 222,326 | | | 150,579 | | | 154,826 |
Non-interest expense | | (275,354) | | (270,469) | | | (263,316) | | | (281,331) | | | (309,801) |
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Income before income taxes | | 523,512 | | 382,639 | | | 322,327 | | | 211,758 | | | 259,954 |
Income taxes | | (111,744) | | (82,407) | | | (68,405) | | | (44,439) | | | (54,850) |
Net income | $ | 411,768 | $ | 300,232 | | $ | 253,922 | | $ | 167,319 | | $ | 205,104 |
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Net income per common share | | | | | | | | | | | | | |
Basic | $ | 6.63 | | 4.79 | | $ | 4.01 | | $ | 2.63 | | $ | 3.13 |
Diluted | $ | 6.62 | | 4.78 | | $ | 4.00 | | $ | 2.62 | | $ | 3.12 |
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“Our net interest margin continues to be positively impacted by the current interest rate environment. Managing interest income and expense continues to be a major focus of our executive leadership team, who continue to carefully monitor the current interest rate environment so that decisions made will balance the management of our deposit base with the cost of those deposits. We are confident that our balance sheet management strategies, including our asset liability and liquidity management, which have been in place for many years, will continue to position us for success as we have just
