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): February 24, 2014
INTERNATIONAL BANCSHARES CORPORATION
(Exact name of registrant as specified in its charter)
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Texas |
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000-9439 |
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74-2157138 |
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(State or other jurisdiction |
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(Commission File |
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(IRS Employer |
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of incorporation |
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Number) |
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Identification No.) |
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1200 San Bernardo, Laredo, Texas |
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78040-1359 |
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(Address of principal executive offices) |
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(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 February 24, 2014, International Bancshares Corporation issued a news release announcing fourth quarter and year ended December 31, 2013 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, including the accompanying exhibits, is also intended to be included under “Item 7.01 — Regulation Fair Disclosure” and shall not be deemed “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.
Item 9.01 Financial Statements and Exhibits
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(d) |
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Exhibits: |
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99 |
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News Release of International Bancshares Corporation dated February 24, 2014. |
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.
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INTERNATIONAL BANCSHARES CORPORATION | |
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By: |
/s/ Dennis E. Nixon |
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DENNIS E. NIXON, President |
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and Chief Executive Officer |
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Date: February 24, 2014 |
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EXHIBIT 99
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Contact: |
Judith Wawroski |
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International Bancshares Corporation |
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(956) 722-7611 |
FOR IMMEDIATE RELEASE:
IBC Announces Strong 2013 Earnings
LAREDO, Texas—(BUSINESS WIRE)— February 24, 2014—International Bancshares Corporation (NASDAQ:IBOC), one of the largest independent bank holding companies in Texas, today reported annual net income available to common shareholders for 2013 of $126.4 million or $1.88 diluted earnings per common share ($1.88 per share basic) compared to $93.5 million or $1.39 diluted earnings per common share ($1.39 per share basic), which represents a 35.2 percent increase in net income and a 35.3 percent increase in diluted earnings per share over the corresponding period in 2012. Net income available to common shareholders for the three months ended December 31, 2013 was $38.9 million or $.58 diluted earnings per common share ($.58 per share basic), compared to $21.9 million or $.32 diluted earnings per common share ($.32 per share basic), representing an increase of 77.6 percent in net income available to common shareholders and a 81.3 percent increase in diluted earnings per share. The Company exited the TARP Capital Purchase program in the fourth quarter of 2012. The net income available to common shareholders for the three and twelve months ended December 31, 2012 of $21.9 million and $93.5 million, respectively, includes the amounts related to participation in the TARP program, including stock dividends and amounts related to the Warrants.
Net income available to common shareholders for the year ended December 31, 2013 was positively affected by the repayment of the TARP funds in the fourth quarter of 2012, which eliminated the continued payment of dividends on the Senior Preferred Stock that had been held by the U.S. Treasury, as well as the sale of available for sale securities totaling $6.2 million, net of tax. The securities sales were a result of the Company re-positioning a portion of the investment portfolio. Net income for the year ended December 31, 2012 was also positively impacted by the sale of available-for-sale investment securities totaling $25 million, net of tax. Net income for the years ended December 31, 2013 and 2012 was negatively impacted by a charge of $8.0 million, net of tax, and $20.5 million, net of tax, as a result of the Company’s lead bank subsidiary’s early termination of a portion of its long-term repurchase agreements in order to help manage its long-term funding costs. Net income for the year ended December 31, 2013 was positively impacted by improving net interest margins as a result of lower rates paid on securities sold under repurchase agreements and time deposits. Net income for the years ended December 31, 2013 and 2012 was negatively impacted by slow loan demand, although it is improving, and yields in the bond markets. Net income also continues to be negatively affected by the burden of increasing compliance costs arising from the Dodd-Frank Act and heightened regulatory oversight.
International Bancshares Corporation and Subsidiaries
Consolidated Financial Summary
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Years Ended |
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2013 |
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2012 |
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(Dollars in thousands, except per share data) |
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Interest income |
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$ |
363,217 |
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$ |
375,639 |
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Interest expense |
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(54,632 |
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(74,499 |
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Net interest income |
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308,585 |
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301,140 |
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Provision for probable loan losses |
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(22,968 |
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(27,959 |
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Non-interest income |
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189,605 |
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200,591 |
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Non-interest expense |
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(292,632 |
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(315,372 |
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Income before income taxes |
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182,590 |
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158,400 |
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Income taxes |
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(56,239 |
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(50,565 |
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Net income |
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$ |
126,351 |
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$ |
107,835 |
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Preferred stock dividends |
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— |
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(14,362 |
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Net income available to common shareholders |
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$ |
126,351 |
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$ |
93,473 |
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Net income per common share |
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Basic |
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$ |
1.88 |
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$ |
1.39 |
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Diluted |
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$ |
1.88 |
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$ |
1.39 |
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“I’m pleased with the Company’s continued earnings success for 2013. Improved net income for the fourth quarter and twelve months ended December 31, 2013, reflects positively on IBC’s commitment to superior earnings, particularly in view of the continued regulatory challenges confronting the industry and the still unsettled economic environment. Management has taken and will continue to take steps to improve revenues and control expenses in this challenging period with the goal of improving performance. The elimination of the preferred stock dividends paid under the TARP program had a positive impact on shareholder earnings, as those dividend obligations no longer exist. The Company has maintained strong liquidity, its sound credit underwriting standards and a healthy investment strategy. We are confident in the strength of our balance sheet and our strong capital position,” said Dennis E. Nixon, President and CEO.
Total assets at December 31, 2013 were $12.1 billion compared to $11.9 billion at December 31, 2012. Total net loans were $5.1 billion at December 31, 2013 compared to $4.7 billion at December 31, 2012. Deposits were $8.2 billion at December 31, 2013 compared to $8.3 billion at December 31, 2012.
IBC is a multi-bank financial holding company headquartered in Laredo, Texas, with 211 facilities and 321 ATMs serving 88 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.