International Bancshares (US:IBOC)2023-05-04 18:18Fair Value and Securities - As of March 31, 2023, the fair value of available-for-sale debt securities was $4,865,210,000, with residential mortgage-backed securities contributing $4,647,229,000[34]. - The fair value of Watch-List doubtful loans as of March 31, 2023, was $29,894,000, with a net provision during the period of $1,000,000[37]. - The total fair value of other real estate owned as of March 31, 2023, was $752,000, with a net provision during the period of $250,000[37]. - As of December 31, 2022, the fair value of available-for-sale securities was $4,423,154,000, with residential mortgage-backed securities at $4,209,212,000[36]. - The fair value hierarchy includes Level 1 inputs, which are unadjusted quoted prices in active markets, and Level 2 inputs, which are observable inputs other than Level 1[35]. - The estimated fair value of fixed-rate performing loans was $1,094,152,000 as of March 31, 2023, compared to $1,100,848,000 as of December 31, 2022, reflecting a decline of approximately 0.6%[47]. - The estimated fair value of time deposits was $2,154,962,000 as of March 31, 2023, compared to $2,076,231,000 as of December 31, 2022, indicating an increase of approximately 3.8%[50]. - The total investment securities amounted to $5,397,131,000 with an estimated fair value of $4,859,818,000, reflecting unrealized losses of $544,087,000[92]. - The gross unrealized losses on investment securities at March 31, 2023, totaled $544,087,000, primarily due to changes in market interest rates[99]. - The residential mortgage-backed securities held a carrying value of $4,647,229,000, which includes $810,907,000 from Ginnie Mae and $3,836,322,000 from Fannie Mae and Freddie Mac[92]. Loans and Credit Quality - As of March 31, 2023, total loans amounted to $7,531,773,000, an increase from $7,430,603,000 as of December 31, 2022, representing a growth of approximately 1.4%[58]. - The carrying amount of fixed-rate performing loans was $1,196,549,000 as of March 31, 2023, down from $1,203,381,000 as of December 31, 2022, indicating a decrease of about 0.6%[47]. - The company had approximately $51,306,000 of doubtful commercial collateral-dependent loans as of March 31, 2023, with no appraisals performed in the preceding twelve months[38]. - The allowance for credit loan losses increased from $125,972 thousand on December 31, 2022, to $133,557 thousand on March 31, 2023, reflecting a rise of approximately 6.4%[71]. - Credit loss expense for the three months ended March 31, 2023, was $8,587 thousand, compared to $1,481 thousand for the same period in 2022, indicating a significant increase in provisions due to economic uncertainty[72]. - The total recorded investment for loans evaluated for impairment as of March 31, 2023, was $7,479,964 thousand, with a corresponding allowance of $130,112 thousand[73]. - Non-accrual loans totaled $51,632 thousand as of March 31, 2023, slightly decreasing from $51,648 thousand on December 31, 2022[74]. - The total past due loans amounted to $83,029,000, representing an increase from $18,018,000 as of December 31, 2022[81]. - The total past due loans increased by approximately 46% from December 31, 2022, to March 31, 2023, highlighting potential credit quality concerns[81]. - The total balance of commercial loans classified as "Pass" was $1,435,291,000 as of March 31, 2023, down from $1,498,102,000[83]. Capital and Stockholder Equity - The CET1 to risk-weighted assets ratio was 20.43% on March 31, 2023, compared to 20.21% on December 31, 2022[117]. - The Tier 1 capital-to-average-total-asset (leverage) ratio was 15.61% as of March 31, 2023, up from 14.59% at the end of 2022[117]. - The risk-weighted Tier 1 capital ratio was 21.37% on March 31, 2023, compared to 21.04% on December 31, 2022[117]. - Cash dividends of $0.63 per share were paid on February 28, 2023, compared to $0.60 per share on February 28, 2022[107]. - The company authorized a stock repurchase program of up to $124 million for the 12-month period starting March 15, 2023[108]. - A total of 13,615,730 shares had been repurchased at a cost of $411,099,000 as of May 1, 2023[108]. - The total outstanding Capital and Common Securities qualified as Tier 1 capital amounted to $134,642,000[106]. - The company continues to meet all fully phased-in capital adequacy requirements as of March 31, 2023[114]. Accounting and Reporting - The consolidated financial statements are unaudited but include all necessary adjustments for fair presentation[30]. - The company did not have any material recognizable or non-recognizable subsequent events through the date of issuing the financial statements[32]. - The company applies the provisions of FASB ASC 280 for segment reporting, operating as one segment with five active subsidiary banks[31]. - The company adopted ASU 2022-02 on January 1, 2023, which enhances disclosure requirements for troubled debt restructurings but did not significantly impact consolidated financial statements[74]. - The allowance for credit losses (ACL) at March 31, 2023, was deemed adequate by management to absorb probable losses from the loan portfolio[79]. - The company has not recorded any allowances for debt securities in the Allowance for Credit Losses (ACL) for the period[91].