Contact:
Dennis E. Nixon
Chairman & CEO
International Bancshares Corporation
(956) 722-7611
Anne Seay or Brian Dwyer
KGBrickman, Inc.
(210) 826-8899
FOR IMMEDIATE RELEASE:
INTERNATIONAL BANCSHARES CORPORATION REPORTS ANNUAL 2000 EARNINGS
LAREDO, Texas--(BUSINESS WIRE)--February 21, 2001-International Bancshares
Corporation (NASDAQ:IBOC) today reported solid growth in annual earnings
achieving a new milestone in total net income for the Company of $75.2 million
for the year ended December 31, 2000, or $3.46 diluted earnings per share versus
$66.2 million for the year ended December 31, 1999, or $2.98 diluted earnings
per share taking into consideration the effect of the 25% stock dividend paid on
June 14, 2000. These very positive numbers represent a 16.1% increase in
earnings per share or a 13.5% increase in net income over 1999.
INTERNATIONAL BANCSHARES CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL SUMMARY
DECEMBER 31,
-----------
2000 1999
--------- ---------
(Dollars in thousands,
except per share data)
Interest income .............. $ 421,627 $ 340,736
Interest expense ............. (251,756) (185,205)
--------- ---------
Net interest income .......... 169,871 155,531
Provision for possible
loan losses ................ (6,824) (6,379)
Non-interest income .......... 57,501 60,966
Non-interest expense ......... (111,957) (106,983)
--------- ---------
Income before income taxes ... 108,591 103,135
Income taxes ................. (33,417) (36,887)
--------- ---------
Net income ................... $ 75,174 $ 66,248
========= =========
Net income per common share:
Basic .................. $ 3.51 $ 3.03
Diluted ................ $ 3.46 $ 2.98
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Income before goodwill charges, which excludes the amortization of core
deposit intangibles and goodwill, increased 13.1% to $79.0 million for the year
ended December 31, 2000, or $3.64 diluted income before goodwill charges per
share versus $69.8 million for the year ended December 31, 1999, or $3.14
diluted income before goodwill charges per share. The table below reconciles
reported earnings to net income excluding intangible amortization to help
facilitate peer group comparisons.
DECEMBER 31,
--------------------
2000 1999
-------- --------
(Dollars in thousands,
except per share data)
Reported net income ............................ $ 75,174 $ 66,248
Amortization of intangible assets .............. 4,219 3,898
Income tax adjustment .......................... (421) (309)
-------- --------
Income before goodwill charges ................. $ 78,972 $ 69,837
======== ========
Income before goodwill charges per common share:
Basic ................................... $ 3.69 $ 3.20
Diluted ................................. $ 3.64 $ 3.14
Total assets at December 31, 2000, were $5.8 billion compared to $5.4
billion at December 31, 1999. Deposits at December 31, 2000, were $3.7 billion
compared to $3.5 billion at December 31, 1999.
Net Income for the fourth quarter of 2000, was $16.1 million or $.75
diluted earnings per share compared to $16.4 million or $.75 diluted earnings
per share in the corresponding period in 1999. Fourth quarter 2000 earnings were
negatively affected by a bond program resumed by management in the fourth
quarter to reposition a portion of the Company's bond portfolio to take
advantage of higher bond yields. This bond program reduced after tax earnings in
the fourth quarter by $2.2 million and 2000 earnings by $2.8 million. Dennis E.
Nixon, CEO and Chairman of the Board, stated that the action taken to enhance
the yield on the bond portfolio will have a positive effect on future earnings
as management fully expects to recover the losses taken through enhanced
earnings performance.
IBC is a $5.8 billion multi-bank financial holding company headquartered
in Laredo, Texas, with over 100 facilities and 204 ATM's serving 30 communities
including Houston, San Antonio, Corpus Christi, McAllen, Brownsville, Port
Lavaca, Zapata and throughout the Rio Grande Valley and the Texas Gulf Coast.
"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 Internet at no charge from FreeEDGAR, a real-time access to
SEC filings site located at HTTP://WWW.FREEEDGAR.COM.
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