0001104659-07-058785.txt : 20070803 0001104659-07-058785.hdr.sgml : 20070803 20070803164450 ACCESSION NUMBER: 0001104659-07-058785 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20070803 ITEM INFORMATION: Results of Operations and Financial Condition FILED AS OF DATE: 20070803 DATE AS OF CHANGE: 20070803 FILER: COMPANY DATA: COMPANY CONFORMED NAME: INTERNATIONAL BANCSHARES CORP CENTRAL INDEX KEY: 0000315709 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 742157138 STATE OF INCORPORATION: TX FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-09439 FILM NUMBER: 071024546 BUSINESS ADDRESS: STREET 1: 12OO SAN BERNARDO AVE STREET 2: PO BOX 1359 CITY: LAREDO STATE: TX ZIP: 78040-1359 BUSINESS PHONE: 9567227611 MAIL ADDRESS: STREET 1: P O BOX 1359 STREET 2: 1200 SAN BERNARDO CITY: LAREDO STATE: TX ZIP: 78040 8-K 1 a07-21020_18k.htm 8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15 (d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 3, 2007

INTERNATIONAL BANCSHARES CORPORATION

(Exact Name of registrant as specified in its charter)

Texas	0-9439	74-2157138
(State or other jurisdiction	(Commission	(IRS Employer
of incorporation	File Number)	Identification No.)

1200 San Bernardo, Laredo, Texas		78040-1359
(Address of principal executive offices)		(ZIP Code)

Registrant’s telephone number, including area code (956) 722-7611

None

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2.below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4 (c ) under the Exchange Act (17 CFR 240.13e-4 ( c))

Item 2.02 - Results of Operations and Financial Condition

On August 3, 2007, International Bancshares Corporation issued a news release announcing second quarter 2007 earnings. The news release, attached hereto and filed herewith as Exhibit 99, is incorporated herein by reference.

All of the information furnished in Item 2.02 of this report and the accompanying exhibits are also intended to be included under “Item 7.01 — Regulation Fair Disclosure” and shall not be deemed to be “filed” for the purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, is not subject to the liabilities of that section and shall not be incorporated by reference in any filing under the Securities Act of 1933, as amended.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

		INTERNATIONAL BANCSHARES CORPORATION
		(Registrant)

		By:	/s/ Dennis E. Nixon
			DENNIS E. NIXON, President,
			and Chief Executive Officer

Date: August 3, 2007

EXHIBIT INDEX


99		News Release of International Bancshares Corporation dated August 3, 2007.

EX-99 2 a07-21020_1ex99.htm EX-99

EXHIBIT 99

Contact:	Rosanne Palacios	Judith Wawroski
	International Bancshares Corporation	International Bancshares Corporation
	(956) 722-7611	(956) 722-7611

IBC Announces Second Quarter Earnings

LAREDO, Texas—(BUSINESS WIRE)—August 3, 2007—International Bancshares Corporation (“IBC”) (Nasdaq:IBOC - News) today reported net income for the second quarter of 2007 of $34.6 million or $.50 per share - basic ($.50 per share - diluted) compared to $34.7 million or $.50 per share - basic ($.49 per share - diluted) for the second quarter 2006, which represents an increase of 2.0% in diluted earnings per share and a decrease of 0.2% in net income. Net income for the first six months of 2007 was $53.2 million, or $.77 per share — basic ($.76 per share diluted) compared to $58.6 million, or $.84 per share — basic ($.83 per share diluted) for the first six months of 2006, which represents a decrease of 9.2% in net income and 8.4% in diluted earnings per share.

Net income for the first six months of 2007 was negatively impacted by an impairment charge of $13.1 million, after tax, on certain investments. A significant portion of the impairment charge is a result of the Company’s strategic identification of certain investment securities that were sold in the second quarter of 2007 with the proceeds from the sales used to reduce Federal Home Loan Bank (“FHLB”) borrowings. Net income for the same period was positively affected by the sale of the securities, which generated gains of $1.5 million, after tax. The investments sold were certain hybrid mortgage backed securities with a coupon re-set date that exceeded 30 months and a weighted average yield to coupon re-set that was approximately 100 basis points less than the FHLB certificate of indebtedness short-term rate. The sale of the securities facilitated a re-positioning of the balance sheet to a more neutral position in terms of interest rate risk and also improved operating ratios.

Net income for the first six months of 2006 was negatively impacted by a $8.9 million, net of tax, charge to operations as a result of the loss of a IRS tax lawsuit that was litigated during the third quarter of 2005 in the Federal District Court in San Antonio, Texas and relates to certain leasing transactions previously discussed in Note 17 of the Notes to Consolidated Financial Statements set forth in the Company’s 2006 Annual Report. Because of the trial court judgment, uncertainty of the outcome at the appellate level and the similarity between the litigated lawsuit and one that is pending, the Company took the $8.9 million charge, net of tax.

"I'm pleased with the Company’s second quarter earnings, as well as the results of the first six months, despite the impairment charge related to the investment securities. The Company believes the re-positioning of the balance sheet to a more neutral position in terms of interest rate risk will positively impact the Company’s operations in the long-term and the second quarter earnings are reflective of the commitment to superior performance. Additionally, the Company has continued to grow its operations and enhance long term shareholder value through aggressive de novo branch expansions,” said Dennis E. Nixon, President and CEO.

Total assets at June 30, 2007 were $10.4 billion compared to $10.9 billion at December 31, 2006. Total net loans were $5.1 billion at June 30, 2007 and $5.0 billion at December 31, 2006. Total deposits were $7.1 billion at June 30, 2007 and $7.0 billion at December 31, 2006.

IBC is a $10.4 billion multi-bank financial holding company headquartered in Laredo, Texas, with over 230 facilities and over 380 ATMs serving more than 90 communities in Texas and Oklahoma.

“Safe Harbor” statement under the Private Securities Litigation Reform Act of 1995: The statements contained in this release which are not historical facts contain forward-looking information with respect to plans, projections or future performance of IBC and its subsidiaries, the occurrence of which involve certain risks and uncertainties detailed in IBC’s filings with the Securities and Exchange Commission.

Copies of IBC’s SEC filings and Annual Report (as an exhibit to the 10-K) may be downloaded from the SEC filings site located at http://www.sec.gov/edgar.shtml.