International Bancshares Corp (IBOC) Reports a 56.8% Increase in Net Income for Q3 2023
International Bancshares Corp (NASDAQ:IBOC) reported a net income of $305.4 million for the nine months ended September 30, 2023, a 56.8% increase from the same period in 2022.
The company's diluted earnings per common share increased by 58.9% to $4.91, compared to $3.09 in the same period of 2022.
IBOC's net income for Q3 2023 was $103.3 million, a 23.9% increase from Q3 2022.
Total assets as of September 30, 2023, were $14.9 billion, compared to $15.5 billion at the end of 2022.
On November 2, 2023, International Bancshares Corp (NASDAQ:IBOC) released its earnings report for the nine months ended September 30, 2023. The company reported a net income of $305.4 million, marking a significant increase of 56.8% compared to the same period in 2022. Diluted earnings per common share also saw a substantial rise of 58.9% to $4.91, compared to $3.09 in the same period of the previous year.
Financial Highlights
For the third quarter of 2023, IBOC reported a net income of $103.3 million, or $1.66 diluted earnings per common share. This represents an increase of 23.9% in net income and an equivalent increase in diluted earnings per share over the corresponding period in 2022. The company attributed this positive performance to an increase in net interest income, primarily due to the expansion of its investment portfolio and a consistent increase in loan interest income following the Federal Reserve Board's interest rate hikes in 2022 and 2023.
Our net interest margin continues to be positively impacted by the current interest rate environment in light of the Federal Reserve Boards actions to increase interest rates. Managing interest income and expense is a major focus of management in this environment. 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 reported," said Dennis E. Nixon, president and CEO.
Balance Sheet Overview
As of September 30, 2023, IBOC's total assets stood at $14.9 billion, compared to $15.5 billion at the end of 2022. Total net loans were $7.7 billion, up from $7.3 billion at the end of 2022. However, deposits decreased slightly to $11.9 billion from $12.7 billion at the end of the previous year.
Despite the uncertain economic conditions, IBOC remains confident in its strong capital position, significant liquidity, robust relationship deposit base, and responsive management strategies for continued success in 2023 and beyond.
Explore the complete 8-K earnings release (here) from International Bancshares Corp for further details.
This article first appeared on GuruFocus.
