International Bancshares (IBOC) in Laredo, Texas, reported lower income as its net interest margin contracted.

The $12.1 billion-asset company's third-quarter earnings fell more than 19% from a year earlier, to $22 million, or 33 cents a share.

For the first nine months of the year, the company earnings fell more than 17% from a year earlier, to $71.6 million. Narrowing net interest margins, caused by slow loan demand and declining bond yields, hurt the results. International also reported lower revenue from interchange fee income and overdraft programs, along with higher compliance costs from the Dodd-Frank Act, the company said in a press release.

Net loans fell 4% from Dec. 31, to $4.8 billion, while deposits rose 1%, to $8 billion. The company's loan-loss provision fell about 53% from a year earlier, to $7.8 million.

Management has taken steps to improve revenues and control expenses, Dennis E. Nixon, the company's president and chief executive, said in the release. Conditions in the company's markets continue to improve, creating "a favorable environment to grow earnings," he said.

International continues to make partial repayments to the Troubled Asset Relief Program. Last week, the company said it had repaid $45 million of the $176 million it owed

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