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): **** May 7, 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 May 7, 2020, International Bancshares Corporation issued a news release announcing net income for the three months ended March 31, 2020. 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 May 7, 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: May 7, 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 First Quarter 2020 Earnings

LAREDO, Texas—(BUSINESS WIRE)— May 7, 2020—International 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.

Net 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 January 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.

In March 2020, the World Health Organization recognized the outbreak of the novel Coronavirus Disease 2019 (“COVID-19”) as a pandemic. The global health crisis from COVID-19 and government responses to the crisis have created never seen before 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 and 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.

“The current global health crisis resulting from COVID-19 has impacted our business, and with future economic conditions remaining uncertain, the full impact of the current crisis has yet to be seen. However, we are confident in our exceptionally strong capital position, significant liquidity, relationship deposit base and responsive management strategies to guide us through the current crisis and continue providing superior returns to our shareholders. We remain fully committed to making the best decisions possible as we navigate this crisis to protect the future of our Company for our customers, employees, and shareholders,” said Dennis E. Nixon President and CEO. “The first quarter of 2020 also saw the transition to a new methodology to calculate our allowance for credit losses. That transition to a current expected credit loss model from the long-standing incurred loss model resulted in a small capital charge at transition and an increase in our provision for credit losses. This is due to the nature of the calculation that now incorporates not only historical losses, but also factors in current conditions and reasonable and supportable forecasts of future conditions. We will continue to monitor the crisis and the impact on our business and are confident that we are making prudent choices to ensure that we continue the 54 plus years of success we have delivered.”

Total assets at March 31, 2020 were $12.5 billion compared to $12.1 billion at December 31, 2019. Total net loans were $6.9 billion at March 31, 2020 compared to $6.8 billion at December 31, 2019. Deposits were $9.0 billion at March 31, 2020 compared to $8.8 billion at December 31, 2019.

IBC is a multi-bank financial holding company headquartered in Laredo, Texas, with 187 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.