International Bancshares Corp. in Laredo, Texas, said Monday that its net income fell 10% in 2010, to $116.9 million.
The $11.9 billion-asset company said it had earnings per share of $1.72, down from $1.90 in 2009. Net income fell 19.8% in the fourth quarter from a year earlier, to $27.1 million.
IBC said the 2010 results were affected by a $21.8 million reserve that it recorded in the first quarter and that was tied to a tax dispute it inherited when it bought Local Financial Corp. in Oklahoma in 2004. That was largely offset by $21.6 million in gains on investment securities sales.
The loan-loss provision fell 61.2% in 2010, to $22.8 million, on a decrease in required reserves for impaired loans.
IBC's deposits increased by 5.5%, to $7.6 billion, while total net loans declined by 5.3%, to $5.3 billion.
