International Bancshares Corporation (“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 Board’s 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 Company’s reported capital ratios at March 31, 2012 and as adjusted to reflect the partial repurchase of the preferred stock:
|As of March 31, 2012|
As Adjustedfor Series APreferredRepurchase
|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.