8-K - IBOC - Equibles

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): **** February 27, 2020

INTERNATIONAL BANCSHARES CORPORATION

(Exact name of registrant as specified in its charter)

-
Texas	000-9439	74-2157138
(State or other jurisdiction	(Commission File	(IRS Employer
of incorporation)	Number)	Identification No.)


	1200 San Bernardo , Laredo , Texas		78040-1359
	(Address of principal executive offices)		(Zip Code)

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. ☐


Title of Each Class:		Trading Symbol (s):		Name of each exchange on which registered:
Common Stock, $1.00 par value		IBOC		NASDAQ

Item 2.02 Results of Operations and Financial Condition.

On February 27, 2020, International Bancshares Corporation issued a news release announcing net income for the three and twelve months ended December 31, 2019. 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.

EXHIBIT INDEX

Exhibit Number	****	Description

99		News Release of International Bancshares Corporation dated February 27, 2020
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

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.


	INTERNATIONAL BANCSHARES CORPORATION


	By:	/s/ Dennis E. Nixon
		DENNIS E. NIXON, President
		and Chief Executive Officer

Date: February 27, 2020

		iboc\_Ex\_99

EXHIBIT 99

| Contact: | Judith Wawroski,<br>				<br>Treasurer and Principal Financial Officer |

| --- | --- | | | International Bancshares Corporation | | | (956) 722-7611 |

FOR IMMEDIATE RELEASE:

IBC Reports Strong 2019 Earnings

LAREDO, Texas—(BUSINESS WIRE)— February 27, 2020—International Bancshares Corporation (NASDAQ:IBOC), one of the largest independent bank holding companies in Texas, today reported annual net income for 2019 of $205.1 million or $3.12 diluted earnings per common share ($3.13 per share basic), compared to $215.9 million or $3.24 diluted earnings per common share ($3.27 per share basic), which represents a decrease of 3.7 percent in diluted earnings per share and a 5.0 percent decrease in net income over the corresponding period in 2018. Net income for the three months ended December 31, 2019 was $51.7 million or $.78 diluted earnings per common share ($.79 per share basic), compared to $58.5 million or $.88 diluted earnings per common share ($.89 per share basic) for the same period in 2018, representing a decrease of 11.6 percent in net income and an 11.4 percent decrease in diluted earnings per share.

Net income for the year ended December 31, 2019 continues to be positively impacted by an increase in net interest income due to a higher volume of loans and an increase in the overall yield on 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. Net income for the same period was negatively impacted by an increase in the provision for probable loan losses due to a specific reserve and subsequent charge-off of $7.5 million, net of tax, on a relationship that was secured by real property on which car dealerships are operated.

International Bancshares Corporation and Subsidiaries

Consolidated Financial Summary

|  |  |  | Years Ended<br>December 31, |  |  |

| --- | --- | --- | --- | --- | --- | | | | 2019 | | | 2018 | | | | | (Dollars in thousands, except per share data) | | | | Interest income | $ | 492,401 | | $ | 465,822 | | Interest expense | | (58,629) | | | (52,668) | | Net interest income | | 433,772 | | | 413,154 | | Provision for probable loan losses | | (18,843) | | | (6,112) | | Non-interest income | | 154,826 | | | 165,042 | | Non-interest expense | | (309,801) | | | (299,501) | | Income before income taxes | | 259,954 | | | 272,583 | | Income taxes | | (54,850) | | | (56,652) | | Net income | $ | 205,104 | | $ | 215,931 | | Net income per common share | | | | | | | Basic | $ | 3.13 | | $ | 3.27 | | Diluted | $ | 3.12 | | $ | 3.24 |

“The twelve months ended December 31, 2019 have continued to demonstrate strong earnings success for IBOC. The earnings success we have seen over recent years can be attributed to our continued focus on building and improving the performance of our core bank operations and continued cost control, which have been complemented by the actions

taken to reform the tax laws at the end of 2017, resulting in additional earnings. The reformed tax laws have benefitted us, the economy and the communities we serve. We are confident in the strength of our balance sheet and our strong capital position, which continue to be enhanced by our earnings success for over 50 years. We continue to exceed most of our peers based on Bank Holding Company Performance Reports compiled by the Federal Financial Institutions Examination Council,” said Dennis E. Nixon, President and CEO.

Total assets at December 31, 2019 were $12.1 billion compared to $11.9 billion at December 31, 2018. Total net loans were $6.8 billion at December 31, 2019 compared to $6.5 billion at December 31, 2018. Deposits were $8.8 billion at December 31, 2019 compared to $8.7 billion at December 31, 2018.

IBC is a multi-bank financial holding company headquartered in Laredo, Texas, with 188 facilities and 284 ATMs serving 88 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.