Business
IBC Reports First Quarter 2020 Earnings
LAREDO, Texas--(BUSINESS WIRE)-- International Bancshares Corporation (NASDAQ:IBOC), one of the largest independent bank holding companies in Texas, today
About this update from International Bancshares Corporation
[{"type":"text","content":" LAREDO, Texas--(BUSINESS WIRE)--\nInternational Bancshares Corporation (NASDAQ:IBOC), one of the largest independent bank holding companies in Texas, today reported net income for the three months ended March 31, 2020 was $34.8 million or $.53 diluted earnings per common share ($.54 per share basic), compared to $51.9 million or $.79 diluted earnings per common share ($.79 per share basic) for the same period in 2019, representing a decrease of 32.9 percent in net income and diluted earnings per share.\n\n\nNet income for the three months ended March 31, 2020 was primarily impacted by an increase in the provision for credit losses arising from economic changes that occurred in the first quarter as a result of COVID-19 and the impact of those changes on our first quarter allowance for credit loss calculation. We adopted the provisions of ASU 2016-13 on Jan. 1, 2020, resulting in a transition from the long-standing incurred loss model to an expected credit loss model that recognizes credit losses over the life of a financial asset. Expected credit losses capture historical information, current conditions and reasonable and supportable forecasts of future conditions. Under the new model, our provision for credit losses increased to $13.3 million, net of tax. Net income was also impacted by the Federal Reserve Board action to decrease interest rates in March 2020.\n\n\nIn March 2020, the World Health Organization recognized the outbreak of the novel coronavirus (“COVID-19”) as a pandemic. The global health crisis from COVID-19 and government responses to the crisis have created never-before-seen consequences and disruption in all areas of the U.S. and global economies. We have continued to work with our customers to assist them through these difficult times. We are capitalizing on our strong capital position and strong liquidity to ensure that we are correctly positioned and have the financial strength to navigate the crisis to protect our company, our employees, our customers and our shareholders. We are working with our customers on a case-by-case basis on temporary deferrals of interest and/or principal payments on loans, and have taken an active role in assisting customers in obtaining loans through the Small Business Administration’s Paycheck Protection Program.\n\n\n“The current global health crisis resulting from COVID-19 ha...