International Bancshares (IBOC) - 2023 Q2 - Quarterly Report

Dividends and Stock Repurchase - The company declared a semi-annual cash dividend of $0.63 per share, payable on August 25, 2023, for recordholders as of August 11, 2023[34] - The company paid cash dividends of $0.63 per share on February 28, 2023, compared to $0.60 per share on February 28, 2022[108] - The stock repurchase program was extended to authorize the repurchase of up to $124 million of common stock during the 12-month period commencing on March 15, 2023[109] - As of July 31, 2023, a total of 13,692,792 shares had been repurchased at a cost of $414,222,000[109] Financial Performance and Position - The company operates as one segment, with performance assessed through consolidated financial statements[33] - The company’s financial statements are prepared in accordance with U.S. GAAP and include necessary adjustments for fair presentation[32] - Total loans increased to $7,573,077,000 as of June 30, 2023, compared to $7,430,603,000 at December 31, 2022, reflecting a growth of approximately 1.9%[57] - The carrying amount of fixed-rate performing loans was $1,179,615,000 as of June 30, 2023, down from $1,203,381,000 at December 31, 2022, indicating a decrease of about 2.0%[48] - The estimated fair value of fixed-rate performing loans decreased to $1,077,069,000 as of June 30, 2023, from $1,100,848,000 at December 31, 2022, representing a decline of approximately 2.1%[48] - The total amount of commercial, financial, and agricultural loans was $4,280,036,000 as of June 30, 2023, down from $4,373,373,000 at December 31, 2022, showing a decrease of approximately 2.1%[57] Allowance for Credit Losses - The allowance for credit losses (ACL) recorded charges of $0 for the three months ended June 30, 2023, and $2,000 for the twelve months ended December 31, 2022[58] - The allowance for credit loan losses (ACL) at June 30, 2023, is $140,503,000, an increase from $133,557,000 at March 31, 2023[72] - The methodology for estimating ACL includes quantitative historical loss percentages and qualitative current conditions[70] - The adequacy of the ACL is influenced by factors such as loan portfolio performance and economic conditions[70] - The allowance for credit losses (ACL) at June 30, 2023, was deemed adequate to absorb probable losses from the loan portfolio[81] Loan Performance and Quality - The total non-accrual loans as of June 30, 2023, amounted to $42,083,000, a decrease from $51,648,000 as of December 31, 2022[76] - The total past due loans amounted to $68,474,000, representing an increase from $18,018,000 on December 31, 2022[83] - Commercial loans past due 90 days or greater increased significantly, primarily due to a loan secured by equipment in the oil and gas industry[83] - The largest category of past due loans was in Commercial Real Estate: Other Construction & Land Development, with $10,812,000 past due as of June 30, 2023[83] - The increase in past due loans is attributed to loans on non-accrual status, particularly in the oil and gas sector[83] Securities and Investments - As of June 30, 2023, the total investment securities amounted to $4,669,847,000, with a carrying value of $5,285,989,000[94] - Residential mortgage-backed securities had an amortized cost of $5,123,159,000 and an estimated fair value of $4,508,112,000, reflecting unrealized losses of $616,284,000[94] - The fair value of the liability for payments due to SAR holders was approximately $976,000 as of June 30, 2023[90] - The amortized cost of available-for-sale debt investment securities pledged for fiduciary powers was $1,642,812,000, with an estimated fair value of $1,394,906,000 at June 30, 2023[97] Capital Adequacy - As of June 30, 2023, the Common Equity Tier 1 (CET1) to risk-weighted assets ratio was 21.32%, up from 20.21% on December 31, 2022[119] - The Tier 1 capital-to-average-total-assets (leverage) ratio was 16.29% as of June 30, 2023, compared to 14.59% at the end of 2022[119] - The risk-weighted total capital ratio stood at 23.28% on June 30, 2023, an increase from 22.22% on December 31, 2022[119] - A total of $108,868,000 of Capital and Common Securities was outstanding as of June 30, 2023, qualifying as Tier 1 capital[119] Regulatory and Legal Matters - The company continues to meet all fully phased-in capital adequacy requirements as of June 30, 2023[116] - The company is involved in various legal proceedings, but any material loss is considered remote based on current assessments[110]