International Bancshares Corporation Announces Completion of Repurchase of $40 Million of TARP Preferred Stock
LAREDO, Texas--(BUSINESS WIRE)-- International Bancshares Corporation (IBOC) (IBC), today announced that it has completed the repurchase of 40,000 shares of the preferred stock it issued to the U.S. Department of the Treasury under the Troubled Asset Relief Program Capital Purchase Program on December 23, 2008. IBC paid the U.S. Treasury a total of $40 million of the $216 million it received under the Capital Purchase Program, plus an accrued dividend of $311,111.
We are pleased to make this partial repurchase of the TARP preferred stock while still retaining our strong capital position and without issuing any common stock or incurring any Company debt. The Company intends to repurchase the remaining TARP preferred stock by no later than June 30, 2013; however, the speed with which the Company retires the remaining shares of the preferred stock will depend upon the Boards view of the present and expected economic conditions, said Dennis E. Nixon, Chairman and President of IBC.
Our pro forma capital ratios following the repurchase of $40 million of the TARP preferred stock continue to significantly exceed the regulatory standards for the Company and each of its subsidiary banks to be categorized as well-capitalized. The following table outlines the Companys reported capital ratios at March 31, 2012 and as adjusted to reflect the partial repurchase of the preferred stock:
|As of March 31, 2012|
|Total Capital to Risk Weighted Assets||24.33%||23.66%|
|Tier 1 Capital to Risk Weighted Assets||23.08%||22.41%|
|Tier 1 Capital to Average Assets||12.62%||12.25%|
The Company has paid a total of $36,971,111 in preferred stock dividends to the U.S. Treasury since December of 2008, when the Company received the funds under the Capital Purchase Program.
IBC (NASDAQ:IBOC) is an $11.9 billion multi-bank financial holding company headquartered in Laredo, Texas, with 217 facilities and over 378 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 IBCs filings with the Securities and Exchange Commission.
International Bancshares Corporation
Judy Wawroski, 956-722-7611 (Laredo)
First Vice President
Source: International Bancshares CorporationCopyright Business Wire 2012