International Bancshares 2023 Net Income Soars 37.2%

International Bancshares Corporation (IBC), a major independent bank holding company in Texas, has reported a significant increase in its financial performance for the year 2023. The company's annual net income for 2023 amounted to $411.8 million, demonstrating a substantial rise of 37.2 percent compared to the previous year's figure of $300.2 million. The diluted earnings per common share also witnessed a noteworthy surge, reaching $6.62 in 2023, compared to $4.78 in 2022, marking a 38.5 percent increase.

Looking at the quarterly performance, the net income for the three months ended December 31, 2023, stood at $106.4 million, slightly up from the $105.4 million reported for the same period in 2022, representing a 1.0 percent increase. The diluted earnings per common share for the same period also saw a rise, reaching $1.71 in 2023 compared to $1.68 in 2022, indicating a 1.8 percent increase.

The notable increase in net income for the year 2023 was attributed to various factors. The company experienced a boost in net interest income, primarily driven by an expansion in its investment portfolio, interest earned on funds held at the Federal Reserve Bank, and an increase in loan interest income. This growth aligns with the actions of the Federal Reserve Board to raise interest rates in 2022 and 2023. However, the company also observed an increase in interest expense, mainly due to higher interest paid on deposits.

In terms of the financial summary, interest income for 2023 amounted to $800.2 million, a substantial rise from the previous year's figure of $525.8 million. Similarly, non-interest income for 2023 reached $169.9 million, compared to $187.1 million in 2022. On the expense side, non-interest expense slightly increased to $275.4 million in 2023 from $270.5 million in 2022.

The company's total assets at the end of 2023 were $15.1 billion, down from $15.5 billion at the end of 2022. However, total net loans increased to $7.9 billion in 2023 from $7.3 billion in 2022. Deposits also experienced a decrease, amounting to $11.8 billion at the end of 2023, compared to $12.7 billion at the end of 2022.

Dennis E. Nixon, president and CEO of IBC, expressed confidence in the company's balance sheet management strategies and commitment to cost control and non-interest income growth. He highlighted the company's exceptional return on assets (ROA), positioning IBC among the top publicly traded bank holding companies in the nation. The management remains positive about IBC's strong capital position, significant liquidity, and responsive management strategies, aiming for continued success in 2024 and beyond.

As a result of these announcements, the company's shares have moved -1.2% on the market, and are now trading at a price of $51.2. If you want to know more, read the company's complete 8-K report here.

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