UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8‑K
CURRENT REPORT
Pursuant to Section 13 or 15 (d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 7, 2018
INTERNATIONAL BANCSHARES CORPORATION
(Exact name of registrant as specified in its charter)
Texas |
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000-9439 |
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74‑2157138 |
(State or other jurisdiction |
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(Commission File |
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(IRS Employer |
of incorporation |
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Number) |
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Identification No.) |
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1200 San Bernardo, Laredo, Texas |
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78040‑1359 |
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(Address of principal executive offices) |
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(Zip Code) |
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Registrant's telephone number, including area code (956) 722‑7611
None
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2.below):
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4 (c ) under the Exchange Act (17 CFR 240.13e-4 (c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ◻
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ◻
Item 2.02Results of Operations and Financial Condition.
On November 7, 2018, International Bancshares Corporation issued a news release announcing net income for the three and nine months ended September 30, 2018. The news release, attached hereto and filed herewith as Exhibit 99, is incorporated by reference.
All of the information furnished in Item 2.02 of this report, including the accompanying exhibits, is also intended to be included under “Item 7.01 – Regulation Fair Disclosure” and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, is not subject to the liabilities of that section and shall not be incorporated by reference in any filing under the Securities Act of 1933, as amended.
Item 9.01.Financial Statements and Exhibits
(d) Exhibits
99 - The following exhibit is being furnished with this Current Report on Form 8-K.
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EXHIBIT INDEX
Exhibit NumberDescription
99News Release of International Bancshares Corporation dated May 8, 2018
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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INTERNATIONAL BANCSHARES CORPORATION |
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By: |
/s/ Dennis E. Nixon |
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DENNIS E. NIXON, President |
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and Chief Executive Officer |
Date: November 7, 2018
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EXHIBIT 99
Contact: |
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Judith Wawroski, Treasurer |
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International Bancshares Corporation |
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(956) 722-7611 |
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FOR IMMEDIATE RELEASE:
IBC Reports 40% Increase in Year to Date 2018 Earnings
LAREDO, Texas—(BUSINESS WIRE)— November 7, 2018—International Bancshares Corporation (NASDAQ:IBOC), one of the largest independent bank holding companies in Texas (“IBC”), today reported net income for the nine months ended September 30, 2018 of $157.4 million or $2.36 diluted earnings per common share ($2.38 per share basic) compared to $112.2 million or $1.68 diluted earnings per common share ($1.70 per share basic), which results in an increase of 40% in net income and 40% in diluted earnings per share over the corresponding period of 2017. Net income for the three months ended September 30, 2018 was $51.1 million or $.77 diluted earnings per common share ($.77 per share basic) compared to $39.6 million or $.59 diluted per common share ($.60 per share basic), which represents a 29% increase in net income and a 31% increase in diluted earnings per share over the corresponding period of 2017.
Net income for the three and nine months ended September 30, 2018 was positively impacted by an increase in net interest income due to a higher volume of loans and an increase in the overall yield of the loan portfolio. Interest expense increased for the same period and can be attributed to an increase in the cost of borrowings expense and the rates paid on deposit liabilities, which have increased as a result of recent Federal Reserve Board actions to raise interest rates. Net income for the same periods was positively impacted by a decrease in the provision for probable loan losses compared to the same periods in 2017 as a result of a decrease in the historical loss experience in the commercial category of the allowance for probable loan losses calculation. Net income for the nine months ended September 30, 2018 was also positively impacted by a decrease in the effective tax rate on IBC’s taxable income, arising from the Tax Cut and Jobs Act signed into law on December 22, 2017. As a result of the decrease in corporate tax rates to 21% from 35%, income tax expense decreased by approximately $27.9 million.
“I continue to be extremely pleased with our exceptional earnings success for the third quarter and year to date as we move through the latter half of 2018. Our focus on continued cost control and improving performance in our core bank operations, has been complemented by the actions taken to reform the tax laws at the end of 2017, which have benefitted IBC and the economy as a whole, including the communities we serve. We have a proven track record of success and continue to achieve earnings that exceed the majority of our peers based on Bank Holding Company Performance Reports compiled by the Federal Financial Institutions Examination Council. We are confident in the strength of our balance sheet and our strong capital position,” said Dennis E. Nixon, President and CEO.
Total assets at September 30, 2018 were $11.8 billion compared to $12.2 billion at December 31, 2017. Total net loans were $6.4 billion at September 30, 2018 compared to $6.3 billion at December 31, 2017. Deposits were $8.6 billion at September 30, 2018 compared to $8.5 billion at December 31, 2017.
IBC is a multi-bank financial holding company headquartered in Laredo, Texas, with 191 facilities and 288 ATMs serving 90 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.
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