International Bancshares Profile
International Bancshares Corporation, a registered multibank financial holding company, provides commercial and retail banking services in its main banking and branch facilities located in north, south, central and southeast Texas and the state of Oklahoma.
The company operates as a bank holding company within the meaning of the Bank Holding Company Act of 1956, (BHCA). The company’s principal corporate offices are located in Laredo, Texas.
The company’s principal assets at December 31, 2022, consisted of all the outstanding capital stock of four Texas state banking associations and one Oklahoma state banking corporation as follows International Bank of Commerce, located in Laredo, Texas (IBC); Commerce Bank, located in Laredo, Texas (Commerce Bank); International Bank of Commerce, located in Brownsville, Texas (IBC Brownsville); International Bank of Commerce, located in Zapata, Texas (IBC Zapata); and International Bank of Commerce, located in Oklahoma City, Oklahoma (IBC-Oklahoma).
The company owns five direct non-banking subsidiaries, such as IBC Charitable and Community Development Corporation, a Texas nonprofit corporation formed to conduct charitable and community development activities; IBC Capital Corporation, a company incorporated in the state of Delaware for the purpose of holding certain investments; Premier Tierra Holdings, Inc., a liquidating subsidiary formed under the laws of the state of Texas; and Diamond Beach Holdings, LLC, a merchant banking entity formed under the laws of the State of Texas.
The company also owns a fifty percent interest in Gulfstar Group I and II, Ltd. and related entities, which are involved in investment banking activities, a controlling interest in four merchant banking entities, and a majority ownership in a real-estate development partnership.
The company’s Subsidiary Banks have historically focused on providing commercial banking services to small and medium sized businesses located in their trade areas and select international banking services. In recent years, however, the Subsidiary Banks have emphasized consumer and retail banking, including mortgage lending, as well as locating branches in retail locations and shopping malls.
Through the Subsidiary Banks, the company engages in the business of accepting checking and savings deposits and the making of commercial, real estate, personal, home improvement, automobile and other installment and term loans. Some Subsidiary Banks are very active in facilitating international trade along the United States border with Mexico and elsewhere. The company’s international banking business includes providing letters of credit, making commercial and industrial loans and providing foreign exchange services. Each Subsidiary Bank also offers other related services, such as credit cards, safety deposit boxes, collections, notary public, escrow services, drive up and walk up facilities and other customary banking services.
Each Subsidiary Bank makes available certain securities products through third party providers, as well as banking services during traditional and nontraditional banking hours through their ATM network and retail locations in shopping malls and other convenient places. Additionally, IBC also has introduced IBC Bank Online, an Internet banking product, in order to provide customers online access to banking information and services 24 hours a day, as well as, IBC Mobile Banking with access from mobile devices 24 hours a day. The company conducts training programs on equal employment opportunities, diversity and inclusion in the workplace, as well as training sessions that coach and develop talent in order to retain a diverse workforce.
Loans
As of December 31, 2022, the company’s loans included commercial; commercial real estate: other construction and land development; commercial real estate: farmland and commercial; commercial real estate: multifamily; residential: first lien; residential: junior lien; consumer; and foreign.
Commercial and Industrial Loans: This category includes loans extended to a diverse array of businesses for working capital or equipment purchases. These loans are mostly secured by the collateral pledged by the borrower that is directly related to the business activities of the company, such as equipment, accounts receivable and inventory.
Construction and Land Development Loans: This category includes the development of land from unimproved land to lot development for both residential and commercial use and vertical construction across residential and commercial real estate classes.
Commercial Real Estate Loans: This category includes loans secured by farmland, multifamily properties, owner occupied commercial properties, and non-owner-occupied commercial properties. Owner occupied commercial properties include warehouses often along the border for import/export operations, office space where the borrower is the primary tenant, restaurants and other single-tenant retail. Non-owner-occupied commercial properties include hotels, retail centers, office and professional buildings, and leased warehouses. These loans carry risk of repayment when market values deteriorate, the business experiences turnover in key management, the business has an inability to attract or keep occupancy levels stable, or when the market experiences an exit of a specific business type that is significant to the local economy, such as a manufacturing plant.
1-4 Family Mortgages: This category includes both first and second lien mortgages for the purpose of home purchases or refinancing of existing mortgage loans. A small portion of this loan category is related to home equity lines of credits, lots purchases, and home construction.
Consumer Loans: This category includes deposit secured, vehicle secured, and unsecured loans, including overdrafts, made to individuals.
Deposits
As of December 31, 2022, the company’s deposits included Demand—non-interest bearing (domestic and foreign); savings and interest-bearing demand (domestic and foreign); and Time certificates of deposit ((domestic and foreign).
Investment Portfolio
As of December 31, 2022, the company’s investment portfolio included U.S. Treasury securities; residential mortgage-backed securities; and obligations of states and political subdivision.
Regulation
As a registered bank holding company, the company is subject to supervision by, among others, the Board of Governors of the Federal Reserve System (FRB). As such, it is required to file with the FRB annual reports and other information regarding the company’s business operations and those of its Subsidiary Banks. The company is also subject to periodic examination by the FRB. In addition, all of the company’s wholly-owned banking subsidiaries are members of and subject to regulation by the Federal Deposit Insurance Corporation (FDIC).
The company elected and was approved by the FRB to become a financial holding company under the Gramm Leach Bliley Financial Services Modernization Act of 1999 (GLBA) in 2000 and the election was made effective by the FRB as of March 13, 2000. The company must comply with the quantitative and qualitative listing standards of the NASDAQ Stock Market.
All of the Subsidiary Banks are examined by the Federal Deposit Insurance Corporation (FDIC), which insures the deposits of each member bank up to applicable limits. Deposits of each of the Subsidiary Banks are insured by the FDIC through the Deposit Insurance Fund (DIF) to the extent provided by law.
Three of the company’s Subsidiary Banks received an ‘Outstanding’ Community Reinvestment Act of 1977 (CRA) rating, and the rest received a ‘Satisfactory’ CRA rating in their most recently completed examinations.
The company’s holding company and Subsidiary Banks are ‘affiliates’ within the meaning of Section 23A of the Federal Reserve Act, which sets forth certain restrictions on the loans and extensions of credit between a bank subsidiary and affiliates; on investments in an affiliate’s stock or other securities; and on acceptance of such stock or other securities as collateral for loans.
History
International Bancshares Corporation was founded in 1966. The company was incorporated in 1979.
