IBC posts 3.2 percent earnings increase ...

Local mega-financial institution IBC released its earnings report for the first six months of 2009. Here's a rundown released after the stock market closed on Tuesday:

International Bancshares Corporation reported Tuesday net income of $68.7 million for the six months ending June 30, an increase of 3.2 percent compared to the same period of 2008.
Net income for the three months ending June 30 was $31.1 million, a decrease of 5.8 percent compared to the same period of 2008, prior to amounts related to participation in the Troubled Assets Relief Program — including preferred stock dividends and amounts related to the warrants.
After these TARP program amounts, net income for the second quarter of 2009 applicable to common shareholders was $27.9 million as compared to $33 million for the same period in 2008. The 2008 period does not reflect any TARP amounts as those funds were not received until Dec. 23, 2008.
Net income was negatively impacted during the first six months by an increase in the provision for probable loan losses, which IBC recorded during the first and second quarter of 2009. Additionally, IBC was negatively impacted by an industry-wide FDIC special assessment, resulting in an after-tax charge to earnings of $3.3 million.
“I’m extremely pleased with the results for the first six months of 2009, especially in light of this difficult banking environment,” said Dennis Nixon, IBC president and chief executive officer. “Our strong performance has provided the company with the ability to offset the costs of the industry-wide FDIC special assessment and the increasing loan provisioning for probable loan losses.”
Net income was positively affected by the increasing net interest margin of IBC, and gains on sales of investment securities of approximately $7.2 million, after tax.
Total assets as of June 30 were $11.5 billion, compared to $12.4 billion on Dec. 31, 2008.