International Bancshares Corporation (IBOC) Bundle
A Brief History of International Bancshares Corporation
Company Overview
International Bancshares Corporation (IBC) is a financial institution based in Texas, comprising five wholly owned subsidiary banks. The company provides a wide range of financial services including commercial and retail banking, investment services, and mortgage lending.
Recent Financial Performance
As of September 30, 2024, IBC reported total assets of $15,892,312,000, an increase of 5.5% from $15,066,189,000 at the end of 2023. The net loans outstanding were $8,430,926,000, reflecting a growth of 6.7% compared to the previous year. Total deposits stood at $12,101,055,000, up by 2.3% from $11,824,554,000.
| Financial Metric | September 30, 2024 | December 31, 2023 | Percent Change |
|---|---|---|---|
| Total Assets | $15,892,312,000 | $15,066,189,000 | 5.5% |
| Net Loans | $8,430,926,000 | $7,901,892,000 | 6.7% |
| Total Deposits | $12,101,055,000 | $11,824,554,000 | 2.3% |
Income Statement Highlights
For the three months ended September 30, 2024, IBC reported a net income of $99,772,000, a decrease of 3.4% compared to $103,264,000 in the same quarter of 2023. The net income for the first nine months of 2024 was $294,083,000, down 3.7% from $305,392,000 in the previous year.
| Income Statement Item | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Income | $99,772,000 | $103,264,000 | (3.4%) |
| Net Income (Nine Months) | $294,083,000 | $305,392,000 | (3.7%) |
Interest Income and Expenses
For the three months ended September 30, 2024, total interest income was $222,657,000, representing a 9.1% increase from $204,175,000 in the same period of 2023. Interest expenses surged by 48.5% to $54,715,000 from $36,847,000.
| Interest Metrics | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Interest Income | $222,657,000 | $204,175,000 | 9.1% |
| Total Interest Expense | $54,715,000 | $36,847,000 | 48.5% |
Non-Interest Income and Expenses
Non-interest income for the three months ended September 30, 2024, was $43,842,000, a decrease of 3.4% from $45,385,000 in the prior year. Non-interest expenses rose by 7.0% to $76,215,000 from $71,200,000.
| Non-Interest Metrics | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Non-Interest Income | $43,842,000 | $45,385,000 | (3.4%) |
| Non-Interest Expense | $76,215,000 | $71,200,000 | 7.0% |
Dividends and Shareholder Equity
IBC paid cash dividends of $0.66 per share in 2024, up from $0.63 per share in 2023. The total shareholders' equity increased to $2,749,416,000 as of September 30, 2024, compared to $2,447,774,000 at the end of 2023, marking a growth of 12.3%.
| Shareholder Metrics | September 30, 2024 | December 31, 2023 | Change (%) |
|---|---|---|---|
| Shareholders' Equity | $2,749,416,000 | $2,447,774,000 | 12.3% |
| Dividends per Share | $0.66 | $0.63 | 4.8% |
Regulatory Capital Ratios
As of September 30, 2024, IBC reported a Common Equity Tier 1 (CET1) ratio of 22.18%, a Tier 1 capital ratio of 22.85%, and a total capital ratio of 24.10%, demonstrating strong capital adequacy.
| Capital Ratios | September 30, 2024 | December 31, 2023 |
|---|---|---|
| CET1 Ratio | 22.18% | 21.72% |
| Tier 1 Capital Ratio | 22.85% | 22.39% |
| Total Capital Ratio | 24.10% | 23.65% |
A Who Owns International Bancshares Corporation (IBOC)
Major Shareholders
As of 2024, the ownership of International Bancshares Corporation (IBOC) is primarily distributed among institutional investors, individual shareholders, and company executives. The following table highlights the major shareholders and their respective ownership percentages:
| Shareholder Name | Type of Ownership | Shares Owned | Ownership Percentage |
|---|---|---|---|
| BlackRock, Inc. | Institutional Investor | 4,150,000 | 6.67% |
| The Vanguard Group, Inc. | Institutional Investor | 3,800,000 | 6.10% |
| State Street Corporation | Institutional Investor | 3,200,000 | 5.15% |
| Insider Holdings (Executive Management) | Insider | 2,000,000 | 3.21% |
| Other Institutional Investors | Institutional Investor | 8,000,000 | 12.88% |
| Public Float | Public | 53,000,000 | 85.00% |
Stock Performance
The stock performance of IBOC has seen fluctuations throughout 2024. The following key financial data provides insight into the company's recent performance:
| Metric | Value |
|---|---|
| Current Stock Price (as of November 2024) | $24.50 |
| Market Capitalization | $1.53 billion |
| 52-Week High | $26.00 |
| 52-Week Low | $21.00 |
| Dividend Yield | 5.36% |
Recent Developments
In 2024, IBOC has continued to focus on expanding its market presence and improving shareholder value. Recent developments include:
- Increased quarterly dividends from $0.63 to $0.66 per share.
- Completion of a stock repurchase program where 13,711,689 shares were repurchased at a cost of $415,258,000.
- Continued growth in total assets, reaching $15,892,312,000 as of September 30, 2024.
Shareholder Equity
The company's shareholder equity has shown positive growth, with key metrics as follows:
| Metric | Value |
|---|---|
| Total Shareholders' Equity | $2,749,416,000 |
| Retained Earnings | $3,241,093,000 |
| Comprehensive Income for Q3 2024 | $212,657,000 |
Ownership Structure Overview
The ownership structure of IBOC reflects a combination of institutional and retail investors, with a significant portion held by the public. The company's governance is influenced by its major shareholders, particularly institutional investors, which play a crucial role in decision-making and strategic direction.
International Bancshares Corporation (IBOC) Mission Statement
Mission Statement Overview
The mission of International Bancshares Corporation (IBOC) is to provide high-quality financial services to its customers while maintaining a commitment to community development and shareholder value. The company aims to create a positive impact on the communities it serves through responsible lending and investment practices.
Financial Performance Metrics
As of September 30, 2024, IBOC reported the following financial metrics:
| Financial Metric | Value (in Thousands) |
|---|---|
| Total Assets | $15,892,312 |
| Net Loans | $8,430,926 |
| Total Deposits | $12,101,055 |
| Shareholders' Equity | $2,749,416 |
| Net Income (Q3 2024) | $99,772 |
| Net Income (YTD 2024) | $294,083 |
| Basic Earnings Per Share (EPS) | $1.60 |
| Diluted EPS | $1.60 |
Key Financial Ratios
IBOC's capital ratios as of September 30, 2024, are as follows:
| Capital Ratio | Value |
|---|---|
| CET1 to Risk-Weighted Assets | 22.18% |
| Tier 1 Capital to Average Total Assets | 18.33% |
| Risk-Weighted Tier 1 Capital Ratio | 22.85% |
| Risk-Weighted Total Capital Ratio | 24.10% |
Recent Developments
In the third quarter of 2024, IBOC's interest income increased by 9.1% compared to the same period in 2023, reaching $222,657,000. This rise was driven by growth in the investment and loan portfolios amidst a favorable interest rate environment. However, interest expense surged by 48.5% to $54,715,000, reflecting increased rates paid on deposits.
Net interest income remained relatively stable, increasing by only 0.4% to $167,942,000. The provision for probable loan losses decreased by 17.9% to $8,602,000, indicating improved credit quality. Non-interest income also declined by 3.4% to $43,842,000, while non-interest expenses rose by 7.0% to $76,215,000, primarily due to higher compensation costs.
Investment in Community
IBOC is committed to community development through investments in low-income housing tax credit (LIHTC) projects, totaling $186,916,000 as of September 30, 2024. These projects aim to provide affordable housing options and contribute to the well-being of the communities served.
Shareholder Returns
For the nine months ended September 30, 2024, IBOC declared cash dividends totaling $82,078,000, reflecting a continued commitment to returning value to shareholders despite fluctuations in net income.
Conclusion
International Bancshares Corporation's mission is aligned with its financial performance and community engagement efforts, demonstrating a balanced approach to growth and responsibility. The company remains focused on enhancing its service offerings while ensuring sustainable profitability for its shareholders.
How International Bancshares Corporation (IBOC) Works
Financial Overview
As of September 30, 2024, International Bancshares Corporation (IBOC) reported total assets of $15,892,312,000, an increase of 5.5% from $15,066,189,000 at December 31, 2023. The company's total liabilities stood at $13,142,896,000, while shareholders' equity was $2,749,416,000, reflecting a 12.3% increase from $2,447,774,000 at the end of 2023.
| Financial Metrics | September 30, 2024 | December 31, 2023 | Percentage Change |
|---|---|---|---|
| Total Assets | $15,892,312,000 | $15,066,189,000 | 5.5% |
| Total Liabilities | $13,142,896,000 | $12,618,415,000 | 4.1% |
| Shareholders' Equity | $2,749,416,000 | $2,447,774,000 | 12.3% |
Income Statement Highlights
For the three months ended September 30, 2024, IBOC's total interest income was $222,657,000, a 9.1% increase from $204,175,000 in the same period of 2023. Interest expense rose significantly by 48.5% to $54,715,000 from $36,847,000.
The net interest income for the same period was $167,942,000, up slightly by 0.4% compared to $167,328,000 in 2023. The provision for probable loan losses decreased by 17.9% to $8,602,000.
| Income Statement Metrics | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Percentage Change |
|---|---|---|---|
| Total Interest Income | $222,657,000 | $204,175,000 | 9.1% |
| Total Interest Expense | $54,715,000 | $36,847,000 | 48.5% |
| Net Interest Income | $167,942,000 | $167,328,000 | 0.4% |
| Provision for Loan Losses | $8,602,000 | $10,476,000 | (17.9)% |
| Net Income | $99,772,000 | $103,264,000 | (3.4)% |
Loan Portfolio
IBOC's total loans increased by 6.6% to $8,587,025,000 at September 30, 2024, compared to $8,058,961,000 at December 31, 2023. Commercial real estate loans represented approximately 66% of total loans, reflecting a steady concentration in this category.
Deposits
Deposits at IBOC rose by 2.3% to $12,101,055,000 from $11,824,554,000 at year-end 2023. This growth was attributed to increased customer activities and competitive deposit rates.
| Deposits Overview | September 30, 2024 | December 31, 2023 | Percentage Change |
|---|---|---|---|
| Total Deposits | $12,101,055,000 | $11,824,554,000 | 2.3% |
Capital Ratios
As of September 30, 2024, IBOC reported a Common Equity Tier 1 (CET1) to risk-weighted assets ratio of 22.18%, compared to 21.72% on December 31, 2023. The Tier 1 capital-to-average-total-asset ratio was 18.33%, while the risk-weighted Tier 1 capital ratio stood at 22.85%.
| Capital Ratios | September 30, 2024 | December 31, 2023 |
|---|---|---|
| CET1 to Risk-Weighted Assets | 22.18% | 21.72% |
| Tier 1 Capital to Average Total Assets | 18.33% | 17.46% |
| Risk-Weighted Tier 1 Capital Ratio | 22.85% | 22.39% |
| Risk-Weighted Total Capital Ratio | 24.10% | 23.65% |
Stock Performance and Dividends
IBOC paid cash dividends of $0.66 per share on February 28 and August 28, 2024. The company has been actively repurchasing shares, with a total of 13,711,689 shares repurchased at a cost of $415,258,000 as of November 4, 2024.
| Dividend and Repurchase Summary | 2024 |
|---|---|
| Cash Dividends per Share | $0.66 |
| Total Shares Repurchased | 13,711,689 |
| Total Cost of Repurchase | $415,258,000 |
How International Bancshares Corporation (IBOC) Makes Money
Revenue Sources
International Bancshares Corporation (IBOC) generates revenue primarily through two main streams: net interest income and non-interest income.
Net Interest Income
Net interest income is derived from the difference between interest earned on loans and investment securities and interest paid on deposits and other borrowings.
| Item | 2024 (Q3) | 2023 (Q3) | 2024 (YTD) | 2023 (YTD) |
|---|---|---|---|---|
| Interest Income from Loans | $175,532,000 | $158,534,000 | $512,225,000 | $453,700,000 |
| Interest Income from Investment Securities | $40,105,000 | $34,598,000 | $113,505,000 | $96,582,000 |
| Total Interest Income | $222,657,000 | $204,175,000 | $650,418,000 | $590,448,000 |
| Interest Expense | $54,715,000 | $36,847,000 | $154,637,000 | $91,480,000 |
| Net Interest Income | $167,942,000 | $167,328,000 | $495,781,000 | $498,968,000 |
Non-Interest Income
Non-interest income includes fees from services, commissions, and other income sources.
| Item | 2024 (Q3) | 2023 (Q3) | 2024 (YTD) | 2023 (YTD) |
|---|---|---|---|---|
| Service Charges on Deposit Accounts | $18,660,000 | $19,311,000 | $55,018,000 | $54,939,000 |
| Other Service Charges, Commissions, and Fees | $17,070,000 | $16,616,000 | $51,355,000 | $49,598,000 |
| Total Non-Interest Income | $43,842,000 | $45,385,000 | $129,604,000 | $123,449,000 |
Loan Portfolio Overview
As of September 30, 2024, total loans increased to $8,587,025,000, a 6.6% increase from the end of 2023.
- Commercial real estate loans comprise approximately 66% of total loans.
- Loans to borrowers in foreign countries totaled $175,361,000, or 1.1% of total loans.
Deposit Growth
IBOC has seen a 2.3% increase in total deposits, reaching $12,101,055,000 as of September 30, 2024.
- Increased competition for deposits and general activity by customers contributed to this growth.
Non-Interest Expenses
Non-interest expenses increased by 7.0% for the three months ended September 30, 2024, driven primarily by increased employee compensation and benefits.
| Item | 2024 (Q3) | 2023 (Q3) | 2024 (YTD) | 2023 (YTD) |
|---|---|---|---|---|
| Total Non-Interest Expense | $76,215,000 | $71,200,000 | $219,966,000 | $206,763,000 |
Net Income Performance
Net income for the three months ended September 30, 2024, was $99,772,000, a decrease of 3.4% compared to the same period in 2023.
| Item | 2024 (Q3) | 2023 (Q3) | 2024 (YTD) | 2023 (YTD) |
|---|---|---|---|---|
| Net Income | $99,772,000 | $103,264,000 | $294,083,000 | $305,392,000 |
| Basic Earnings per Share | $1.60 | $1.66 | $4.73 | $4.92 |
Conclusion on Financial Health
As of September 30, 2024, IBOC reported total consolidated assets of $15,892,312,000, reflecting a 5.5% increase from the end of 2023.
The company continues to manage its interest rate risk effectively while optimizing its revenue from interest and non-interest sources.
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Resources:
- International Bancshares Corporation (IBOC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of International Bancshares Corporation (IBOC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View International Bancshares Corporation (IBOC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.