International Bancshares (US:IBOC)2024-05-02 19:53Fair Value and Securities - As of March 31, 2024, the fair value of residential mortgage-backed securities was $4,612,306,000, while available-for-sale securities totaled $4,774,990,000[36]. - The total available-for-sale securities as of December 31, 2023, amounted to $4,827,758,000[36]. - As of December 31, 2023, the fair value of residential mortgage-backed securities was $4,660,099,000[36]. - The amortized cost of available-for-sale debt securities was $5,306,234,000 with an estimated fair value of $4,769,630,000 as of March 31, 2024[89]. - Proceeds from the sales and calls of available-for-sale debt securities were $1,720,000 for the three months ended March 31, 2024, with no gross gains or losses realized[95]. Loans and Credit Losses - The fair value of doubtful loans classified as Watch List was $9,137,000 as of March 31, 2024, with a net provision during the period of $(6,471,000)[38]. - For the year ended December 31, 2023, the fair value of doubtful loans was $46,124,000, with a net provision of $10,221,000[38]. - The total doubtful commercial collateral dependent loans as of March 31, 2024, were $45,866,000[38]. - The company recorded $0 in charges to the allowance for credit losses (ACL) for loans transferred to other real estate owned for the three months ended March 31, 2024[41]. - As of March 31, 2024, the total allowance for credit loan losses was $142,798,000, a decrease from $157,069,000 at December 31, 2023[71]. - The credit loss expense for the three months ended March 31, 2024, was $12,978,000, compared to $8,587,000 for the same period in 2023, reflecting an increase of approximately 51.5%[73]. - The balance of loans individually evaluated for impairment decreased to $46,232,000 as of March 31, 2024, from $47,061,000 at December 31, 2023[75]. - The total non-accrual loans amounted to $46,322,000 as of March 31, 2024, slightly down from $47,170,000 at December 31, 2023[76]. - The allowance for credit loan losses for commercial loans collectively evaluated for impairment was $136,978,000 as of March 31, 2024, compared to $144,778,000 at December 31, 2023[75]. - The qualitative loss factors in certain pools of the portfolio were adjusted to reflect a slight improvement in economic uncertainty, resulting in a decrease in the required allowance for credit loan losses[73]. Loan Portfolio and Performance - Total loans increased to $8,112,481,000 as of March 31, 2024, compared to $8,058,961,000 at December 31, 2023, reflecting a growth of approximately 0.66%[58]. - The total portfolio value increased from $8,058,961,000 on December 31, 2023, to $8,112,481,000 on March 31, 2024, reflecting a growth of about 0.7%[81]. - As of March 31, 2024, total past due loans amounted to $69,545,000, representing an increase from $63,805,000 on December 31, 2023, indicating a rise of approximately 9.3%[81]. - The overall trend in past due loans suggests a mixed performance across different loan categories, with some experiencing increases while others show improvements in delinquency rates[81]. - The Watch List—Doubtful Commercial loans decreased primarily due to charge-downs, while Watch List—Doubtful Commercial Real Estate: Multifamily loans increased due to a loan downgrade[83]. Capital and Dividends - As of March 31, 2024, the total outstanding Capital and Common Securities qualified as Tier 1 capital amounted to $108,868,000[101]. - The Common Equity Tier 1 (CET1) to risk-weighted assets ratio was 22.00% on March 31, 2024, compared to 21.72% on December 31, 2023[114]. - The Tier 1 capital-to-average-total-assets (leverage) ratio was 17.85% as of March 31, 2024, up from 17.46% on December 31, 2023[114]. - Cash dividends paid were $0.66 per share on February 28, 2024, compared to $0.63 per share on February 28, 2023[103]. - The company authorized a stock repurchase program of up to $150 million for the 12-month period starting March 15, 2024[104]. Stock-Based Compensation - Stock-based compensation expense for the three months ended March 31, 2024, was $74,000, compared to $102,000 for the same period in 2023[85]. - The total unrecognized stock-based compensation cost related to non-vested options as of March 31, 2024, was approximately $357,000, to be recognized over a weighted average period of 1.5 years[85]. - The expense recorded in connection with all grants under the SAR Plan totaled $1,080,000 for the three months ended March 31, 2024, up from $166,000 for the same period in 2023[87]. Legal Proceedings - The company is involved in various legal proceedings, but any material loss is considered remote[106].