International Bancshares Inc. in Laredo, Texas, said Tuesday that its third-quarter profit fell 10% from the same period in 2010, to $27.3 million, as a drop in loan volume led to a decline in interest income. The company's earnings per share fell 11%, to 40 cents, in line with an analyst's estimate.
Through the first nine months of the year, the $11.6 billion-asset IBC earned $86.8 million, or $1.28 per share, compared to $89.8 million, or $1.32 per share, in the first three quarters of last year.
International Bancshares is a multi-bank holding company with 275 branches in more than 100 communities throughout Texas and Oklahoma.
In a news release, President and Chief Executive Officer Dennis E. Nixon said that his company is "actively lending and financing" and continues to produce solid earnings despite the challenging economic conditions.
Still, total loans have declined by 5% since the end of 2010, to $5.1 billion, which contributed to a 5% drop in its net interest income after accounting its loan loss provision. The company did report a 9.2% increase in noninterest income, to $51.2 million, year over year, despite a 5% drop in income from service charges.
Deposit fees could decline further this quarter as a result of new caps on interchange fees that took effect Oct. 1. In September, IBC said it plans to close more than 50 in-store branches to reduce overhead so that
In early trading Tuesday, IBC's shares were down 1.2% from Monday's close, to $18.4.
