Financial holding company International Bancshares Corp. said that its audit committee has dismissed KPMG as its auditor and replaced the Big Four firm with McGladrey & Pullen.
The company emphasized the dismissal was not related to any disagreement with KPMG over accounting principles or practices, financial statement disclosures, or auditing scope or procedures. IBC CEO Dennis E. Nixon said in a statement that his board's audit committee believed it would be "better served by using McGladrey to audit the company's financial statements."
In the wake of the turmoil in the mortgage industry, he added that IBC is not involved in sub-prime mortgage lending and has no exposure in its investment portfolio to sub-prime mortgages. The company does hold mortgage-backed securities, but Nixon said those were all either fully guaranteed or issued by the U.S. government and were rated AAA.
IBC's total assets have dipped, however, from $10.9 billion on December 31, 2006 to $10.4 billion as of June 30.
