Document and Entity Information
Document and Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 20, 2024 | Jun. 30, 2023 | |
Document and Entity Information | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Transition Report | false | ||
Entity File Number | 0-09439 | ||
Entity Registrant Name | INTERNATIONAL BANCSHARES CORPORATION | ||
Entity Incorporation, State or Country Code | TX | ||
Entity Tax Identification Number | 74-2157138 | ||
Entity Address, Address Line One | 1200 San Bernardo Avenue | ||
Entity Address, City or Town | Laredo | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 78042 - 1359 | ||
City Area Code | 956 | ||
Local Phone Number | 722-7611 | ||
Title of 12(b) Security | Common Stock, $1.00 par value | ||
Trading Symbol | IBOC | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Document Financial Statement Error Correction [Flag] | true | ||
Document Financial Statement Restatement Recovery Analysis [Flag] | true | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Auditor Name | RSM US LLP | ||
Auditor Firm ID | 49 | ||
Auditor Location | Austin, Texas | ||
Entity Public Float | $ 2,742,387 | ||
Entity Common Stock, Shares Outstanding | 62,168,232 | ||
Entity Central Index Key | 0000315709 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Statements of Cond
Consolidated Statements of Condition - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Cash and cash equivalents | $ 651,058,000 | $ 2,087,724,000 |
Investment securities: | ||
Held to maturity debt securities (Market value of $3,400 on December 31, 2023 and $3,400 on December 31, 2022) | 3,400,000 | 3,400,000 |
Available for sale debt securities (Amortized cost of $5,330,814 on December 31, 2023 and $5,018,996 on December 31, 2022) | 4,822,341,000 | 4,417,796,000 |
Equity securities with readily determinable fair values | 5,417,000 | 5,358,000 |
Total investment securities | 4,831,158,000 | 4,426,554,000 |
Loans | 8,058,961,000 | 7,430,603,000 |
Less allowance for credit losses | (157,069,000) | (125,972,000) |
Net loans | 7,901,892,000 | 7,304,631,000 |
Bank premises and equipment, net | 437,094,000 | 431,612,000 |
Accrued interest receivable | 65,302,000 | 45,787,000 |
Other investments | 343,452,000 | 358,910,000 |
Cash surrender value of life insurance policies | 303,486,000 | 300,589,000 |
Goodwill | 282,532,000 | 282,532,000 |
Other assets | 250,215,000 | 263,137,000 |
Total assets | 15,066,189,000 | 15,501,476,000 |
Deposits: | ||
Demand-non-interest bearing | 5,030,845,000 | 5,846,055,000 |
Savings and interest bearing demand | 4,368,532,000 | 4,745,768,000 |
Time | 2,425,177,000 | 2,068,184,000 |
Total deposits | 11,824,554,000 | 12,660,007,000 |
Securities sold under repurchase agreements | 530,416,000 | 431,191,000 |
Other borrowed funds | 10,745,000 | 10,944,000 |
Junior subordinated deferrable interest debentures | 108,868,000 | 134,642,000 |
Other liabilities | 143,832,000 | 219,933,000 |
Total liabilities | 12,618,415,000 | 13,456,717,000 |
Shareholders' equity: | ||
Common shares of $1.00 par value. Authorized 275,000,000 shares; issued 96,466,900 shares on December 31, 2023 and 96,420,456 shares on December 31, 2022 | 96,467,000 | 96,420,000 |
Surplus | 155,511,000 | 154,061,000 |
Retained earnings | 3,029,088,000 | 2,695,567,000 |
Accumulated other comprehensive loss | (397,889,000) | (470,497,000) |
Total shareholders' equity before treasury stock | 2,883,177,000 | 2,475,551,000 |
Less cost of shares in treasury, 34,391,184 shares on December 31, 2023 and 34,278,617 on December 31, 2022 | (435,403,000) | (430,792,000) |
Total shareholders' equity | 2,447,774,000 | 2,044,759,000 |
Total liabilities and shareholders' equity | $ 15,066,189,000 | $ 15,501,476,000 |
Consolidated Statements of Co_2
Consolidated Statements of Condition (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Consolidated Statements of Condition | ||
Held to maturity, Market value (in dollars) | $ 3,400 | $ 3,400 |
Available for sale, Amortized cost (in dollars) | $ 5,330,814 | $ 5,018,996 |
Common shares, par value (in dollars per share) | $ 1 | $ 1 |
Common shares, Authorized shares | 275,000,000 | 275,000,000 |
Common shares, issued shares | 96,466,900 | 96,420,456 |
Treasury, shares | 34,391,184 | 34,278,617 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Interest income: | |||
Loans, including fees | $ 620,048,000 | $ 402,177,000 | $ 359,215,000 |
Investment securities: | |||
Taxable | 132,151,000 | 74,988,000 | 34,331,000 |
Tax-exempt | 6,259,000 | 2,541,000 | 1,483,000 |
Other interest income | 41,704,000 | 46,075,000 | 3,074,000 |
Total interest income | 800,162,000 | 525,781,000 | 398,103,000 |
Interest expense: | |||
Savings deposits | 60,337,000 | 12,686,000 | 4,110,000 |
Time deposits | 53,158,000 | 11,157,000 | 11,655,000 |
Securities sold under repurchase agreements | 14,760,000 | 2,495,000 | 621,000 |
Other borrowings | 283,000 | 6,781,000 | 7,654,000 |
Junior subordinated deferrable interest debentures | 8,123,000 | 5,037,000 | 2,791,000 |
Total interest expense | 136,661,000 | 38,156,000 | 26,831,000 |
Net interest income | 663,501,000 | 487,625,000 | 371,272,000 |
Credit loss expense | 34,576,000 | 21,651,000 | 7,955,000 |
Net interest income after provision for credit losses | 628,925,000 | 465,974,000 | 363,317,000 |
Non-interest income: | |||
Investment securities transactions, net | (3,000) | (16,000) | |
Other investments income, net | 9,601,000 | 17,538,000 | 68,807,000 |
Other income | 18,941,000 | 32,994,000 | 25,043,000 |
Total non-interest income | 169,941,000 | 187,134,000 | 222,326,000 |
Non-interest expense: | |||
Employee compensation and benefits | 134,441,000 | 127,722,000 | 123,480,000 |
Occupancy | 25,832,000 | 25,654,000 | 26,176,000 |
Depreciation of bank premises and equipment | 21,944,000 | 21,821,000 | 25,028,000 |
Professional fees | 14,000,000 | 11,292,000 | 7,890,000 |
Deposit insurance assessments | 6,285,000 | 6,987,000 | 4,389,000 |
Net operations, other real estate owned | (3,983,000) | 122,000 | 5,073,000 |
Amortization of identified intangible assets | 0 | 0 | 0 |
Advertising | 5,010,000 | 4,588,000 | 4,037,000 |
Software and software maintenance | 20,046,000 | 15,271,000 | 17,794,000 |
Other | 51,779,000 | 57,012,000 | 49,449,000 |
Total non-interest expense | 275,354,000 | 270,469,000 | 263,316,000 |
Income before income taxes | 523,512,000 | 382,639,000 | 322,327,000 |
Provision for income taxes | 111,744,000 | 82,407,000 | 68,405,000 |
Net income | $ 411,768,000 | $ 300,232,000 | $ 253,922,000 |
Basic earnings per common share: | |||
Weighted average number of shares outstanding (in shares) | 62,082,827 | 62,658,414 | 63,352,737 |
Net income per common share (in dollars per share) | $ 6.63 | $ 4.79 | $ 4.01 |
Fully diluted earnings per common share: | |||
Weighted average number of shares outstanding (in shares) | 62,221,601 | 62,810,234 | 63,486,366 |
Net income per common share (in dollars per share) | $ 6.62 | $ 4.78 | $ 4 |
Services charges on deposit accounts | |||
Non-interest income: | |||
Service charges | $ 73,933,000 | $ 72,781,000 | $ 66,205,000 |
Other service charges, commissions and fees, Banking | |||
Non-interest income: | |||
Service charges | 57,923,000 | 55,253,000 | 54,280,000 |
Other service charges, commissions and fees, Non-banking | |||
Non-interest income: | |||
Service charges | $ 9,546,000 | $ 8,568,000 | $ 8,007,000 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Consolidated Statements of Comprehensive Income | |||
Net Income (Loss) | $ 411,768 | $ 300,232 | $ 253,922 |
Other comprehensive loss, net of tax: | |||
Net change in unrealized holding losses on securities available for sale arising during period (net of tax effects of $19,300, $(116,568), and $(14,040)) | 72,606 | (438,517) | (52,818) |
Reclassification adjustment for losses on securities available for sale included in net income (net of tax effects of $1, $0, and $3) | 2 | 13 | |
Other comprehensive loss, net of tax | 72,608 | (438,517) | (52,805) |
Comprehensive income (loss) | $ 484,376 | $ (138,285) | $ 201,117 |
Consolidated Statements of Co_3
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Consolidated Statements of Comprehensive Income | |||
Net change in unrealized holding losses on securities available for sale arising during period, tax effects | $ 19,300 | $ (116,568) | $ (14,040) |
Reclassification adjustment for losses on securities available for sale included in net income, tax effects | $ 1 | $ 0 | $ 3 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Preferred Stock | Common Stock | Surplus | Retained Earnings | Other Comprehensive Income (Loss) | Treasury Stock | Total |
Balance at Dec. 31, 2020 | $ 96,241 | $ 149,334 | $ 2,289,626 | $ 20,825 | $ (378,028) | $ 2,177,998 | |
Balance (in shares) at Dec. 31, 2020 | 96,241 | ||||||
Increase (decrease) in shareholders' equity | |||||||
Net Income (Loss) | 253,922 | 253,922 | |||||
Dividends: | |||||||
Cash/Payable | (72,838) | (72,838) | |||||
Purchase of treasury stock | (716) | (716) | |||||
Exercise of stock options | 110 | 2,304 | 2,414 | ||||
Exercise of stock options (in shares) | 110 | ||||||
Stock compensation expense recognized in earnings | 506 | 506 | |||||
Other comprehensive loss, net of tax: | |||||||
Net change in unrealized gains and losses on available for sale securities, net of reclassification adjustments | (52,805) | (52,805) | |||||
Balance at Dec. 31, 2021 | 96,351 | 152,144 | 2,470,710 | (31,980) | (378,744) | 2,308,481 | |
Balance (in shares) at Dec. 31, 2021 | 96,351 | ||||||
Increase (decrease) in shareholders' equity | |||||||
Net Income (Loss) | 300,232 | 300,232 | |||||
Dividends: | |||||||
Cash/Payable | (75,375) | (75,375) | |||||
Purchase of treasury stock | (52,048) | (52,048) | |||||
Exercise of stock options | 69 | 1,468 | 1,537 | ||||
Exercise of stock options (in shares) | 69 | ||||||
Stock compensation expense recognized in earnings | 449 | 449 | |||||
Other comprehensive loss, net of tax: | |||||||
Net change in unrealized gains and losses on available for sale securities, net of reclassification adjustments | (438,517) | (438,517) | |||||
Balance at Dec. 31, 2022 | 96,420 | 154,061 | 2,695,567 | (470,497) | (430,792) | 2,044,759 | |
Balance (in shares) at Dec. 31, 2022 | 96,420 | ||||||
Increase (decrease) in shareholders' equity | |||||||
Net Income (Loss) | 411,768 | 411,768 | |||||
Dividends: | |||||||
Cash/Payable | (78,247) | (78,247) | |||||
Purchase of treasury stock | (4,611) | (4,611) | |||||
Exercise of stock options | 47 | 1,120 | 1,167 | ||||
Exercise of stock options (in shares) | 47 | ||||||
Stock compensation expense recognized in earnings | 330 | 330 | |||||
Other comprehensive loss, net of tax: | |||||||
Net change in unrealized gains and losses on available for sale securities, net of reclassification adjustments | 72,608 | 72,608 | |||||
Balance at Dec. 31, 2023 | $ 96,467 | $ 155,511 | $ 3,029,088 | $ (397,889) | $ (435,403) | $ 2,447,774 | |
Balance (in shares) at Dec. 31, 2023 | 96,467 |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Consolidated Statements of Shareholders' Equity | |||
Cash/Payable Dividends (in dollars per share) | $ 1.26 | $ 1.20 | $ 1.15 |
Purchase of treasury stock (in shares) | 112,567 | 1,299,344 | 17,984 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Operating activities: | |||
Net income | $ 411,768 | $ 300,232 | $ 253,922 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision for credit loss | 34,576 | 21,651 | 7,955 |
Specific reserve, other real estate owned | 2,538 | 1,627 | 2,655 |
Depreciation of bank premises and equipment | 21,944 | 21,821 | 25,028 |
Gain on sale of bank premises and equipment | (198) | (3,110) | 601 |
Gain on sale of other real estate owned | (7,370) | (2,096) | (170) |
Accretion of investment securities discounts | (1,913) | (1,785) | (702) |
Amortization of investment securities premiums | 6,901 | 13,907 | 36,380 |
Investment securities transactions, net | 3 | 16 | |
Unrealized (gain) loss on equity securities with readily determinable fair values | (59) | 721 | 123 |
Proceeds from settlements of claims | 2,870 | ||
Stock based compensation expense | 330 | 449 | 506 |
Earnings from affiliates and other investments | (983) | (15,894) | (68,034) |
Deferred tax expense | 22,950 | 10,619 | 3,542 |
(Increase) decrease in accrued interest receivable | (19,515) | (15,194) | 7,288 |
(Increase) decrease in other assets | (7,297) | 12,975 | 25,220 |
Increase (decrease) in other liabilities | 10,757 | 42,018 | (5,519) |
Net cash provided by operating activities | 474,432 | 387,941 | 291,681 |
Investing activities: | |||
Proceeds from maturities of securities | 51,167 | 2,200 | 1,200 |
Proceeds from sales and calls of available for sale securities | 2,045 | 800 | 5,890 |
Purchases of available for sale securities | (1,079,215) | (1,455,249) | (2,856,135) |
Principal collected on mortgage backed securities | 629,194 | 756,092 | 1,612,679 |
Net (increase) decrease in loans | (632,976) | (228,340) | 309,575 |
Purchases of other investments | (31,256) | (79,669) | (61,783) |
Distributions from other investments | 12,175 | 8,886 | 63,356 |
Purchases of bank premises and equipment | (27,497) | (19,213) | (10,390) |
Proceeds from sales of bank premises and equipment | 269 | 13,496 | 11,446 |
Proceeds from sales of other real estate owned | 8,888 | 8,969 | 8,273 |
Net cash used in investing activities | (1,067,206) | (992,028) | (915,889) |
Financing activities: | |||
Net (decrease) increase in non-interest bearing demand deposits | (815,210) | 7,529 | 1,122,712 |
Net (decrease) increase in savings and interest bearing demand deposits | (377,236) | 155,220 | 738,043 |
Net increase (decrease) in time deposits | 356,993 | (120,619) | 35,262 |
Net increase (decrease) in securities sold under repurchase agreements | 99,225 | (8,481) | 11,524 |
Net decrease in other borrowed funds | (199) | (425,194) | (189) |
Redemption of long-term debt | (25,774) | ||
Purchase of treasury stock | (4,611) | (52,048) | (716) |
Proceeds from stock transactions | 1,167 | 1,537 | 2,414 |
Payments of cash dividends | (78,247) | (75,375) | (72,838) |
Net cash (used in) provided by financing activities | (843,892) | (517,431) | 1,836,212 |
(Decrease) increase in cash and cash equivalents | (1,436,666) | (1,121,518) | 1,212,004 |
Cash and cash equivalents at beginning of period | 2,087,724 | 3,209,242 | 1,997,238 |
Cash and cash equivalents at end of period | 651,058 | 2,087,724 | 3,209,242 |
Supplemental cash flow information: | |||
Interest paid | 117,936 | 36,355 | 29,007 |
Income taxes paid | 69,799 | 22,118 | 47,394 |
Non-cash investing and financing activities: | |||
Purchases of available-for-sale securities not yet settled | 80,000 | ||
Net transfers from loans to other real estate owned | $ 600 | 835 | $ 16,388 |
Net transfers from bank premises and equipment to other assets | $ 2,476 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | (1) Summary of Significant Accounting Policies Our accounting and reporting policies conform to U.S. generally accepted accounting principles (“GAAP”) and to general practices within the banking industry. The following is a description of the more significant of those policies. Consolidation and Basis of Presentation Our consolidated financial statements include the accounts of the International Bancshares Corporation, its wholly owned Subsidiary Banks and its wholly owned non-bank subsidiaries, IBC Trading Company, Premier Tierra Holdings, Inc., IBC Charitable and Community Development Corporation, IBC Capital Corporation and Diamond Beach Holdings, LLC. All significant inter-company balances and transactions have been eliminated in consolidation. We, through our Subsidiary Banks, are primarily engaged in the business of banking, including the acceptance of checking and savings deposits and the making of commercial, real estate, personal, home improvement, automobile, and other installment and term loans. Our primary markets are north, south, central, and southeast Texas and the state of Oklahoma. Each of our Subsidiary Banks is highly active in facilitating international trade along the United States border with Mexico and elsewhere. Although our loan portfolio is diversified, the ability of our debtors to honor their contracts is primarily dependent upon the economic conditions in our trade area. In addition, the investment portfolio is directly impacted by fluctuations in market interest rates. We are subject to the regulations of certain federal agencies as well as the Texas Department of Banking and the Oklahoma Department of Banking and undergo periodic examinations by those regulatory authorities. Such agencies may require certain standards or impose certain limitations based on their judgments or changes in law and regulations. We own one insurance-related subsidiary, IBC Insurance Agency, Inc., a wholly owned subsidiary of our Subsidiary Bank, International Bank of Commerce, Laredo. The insurance-related subsidiary does not conduct underwriting activities. The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the dates of the statement of condition and income and expenses for the periods. Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to significant changes in the near-term relate to the determination of the allowance for credit losses (“ACL”). Subsequent Events We have evaluated all events or transactions that occurred through the date we issued these financial statements. During this period, we did not have any material recognizable or non-recognizable subsequent events. Investment Securities We classify debt securities into one of these categories: held-to-maturity, available-for-sale, or trading. Such classifications are reassessed for appropriate classification at each reporting date. Securities that are intended and expected to be held until maturity are classified as “held-to-maturity” and are carried at amortized cost for financial statement reporting. Securities that are not positively expected to be held until maturity but are intended to be held for an indefinite period of time are classified as “available-for-sale” or “trading” and are carried at their fair value. Unrealized holding gains and losses are included in net income for those securities classified as “trading,” while unrealized holding gains and losses related to those securities classified as “available-for-sale” are excluded from net income and reported net of tax as other comprehensive income (loss) and in shareholders’ equity as accumulated other comprehensive income (loss) until realized. Unrealized gains and losses related to equity securities with readily determinable fair values are included in net income. Available-for-sale and held-to-maturity debt securities in an unrealized loss position are evaluated for the underlying cause of the loss. In the event that the deterioration in value is attributable to credit related reasons, then the amount of credit-related impairment would be recorded as a charge to our ACL with subsequent changes in the amount of impairment, up or down, also recorded through our ACL. The exception to this process will occur if we intend to sell an impaired available- for-sale debt security or if we will more likely than not be required to sell a credit impaired available-for-sale debt security prior to the value recovering to the security’s amortized cost. In those situations, the entire credit-related impairment amount would be required to be recognized in earnings. We have evaluated the debt securities classified as available-for-sale and held-to-maturity at December 31, 2023 and have determined that no debt securities in an unrealized loss position are arising from credit related reasons and have therefore not recorded any allowances for debt securities in our ACL for the periods. We did not maintain any trading securities during the three-year period ended December 31, 2023. Mortgage-backed securities held at December 31, 2023 and 2022 represent participating interests in pools of long-term first mortgage loans originated and serviced by the issuers of the securities. Mortgage-backed securities are either issued or guaranteed by the U.S. government or its agencies including Freddie Mac, Fannie Mae, Ginnie Mae or other non-government entities. Investments in residential mortgage-backed securities issued by Ginnie Mae are fully guaranteed by the U. S. government. Investments in residential mortgage-backed securities issued by Freddie Mac and Fannie Mae are not fully guaranteed by the U.S. government; however, we believe that the quality of the bonds is similar to other AAA rated bonds with limited credit risk, particularly given the placement of Fannie Mae and Freddie Mac into conservatorship by the federal government in 2008 and because securities issued by others that are collateralized by residential mortgage-backed securities issued by Fannie Mae or Freddie Mac are rated consistently as AAA rated securities. Market interest rate fluctuations can affect the prepayment speed of principal and the yield on the security. Premiums and discounts are amortized using the level yield or “interest method” over the terms of the securities. Declines in the fair value of held-to-maturity and available-for sale-securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses. In determining whether other-than-temporary impairment exists, management considers many factors, including (i) the length of time and the extent to which the fair value has been less than cost, (ii) the financial condition and near-term prospects of the issuer, and (iii) our intent to hold and our determination of whether we will more likely than not be required to sell the security prior to a recovery in fair value. If we determine that (i) we intend to sell the security or (ii) it is more likely than not that we will be required to sell the security before it’s anticipated recovery, the other-than-temporary impairment that is recognized in earnings is equal to the difference between the fair value of the security and our amortized cost of the security. If we determine that we (i) do not intend to sell the security and (ii) we will not be more likely than not required to sell the security before it’s anticipated recovery, the other-than-temporary impairment is segregated into its two components (i) the amount of impairment related to credit loss and (ii) the amount of impairment related to other factors. The difference between the present value of the cash flows expected to be collected and the amortized cost is the credit loss recognized through earnings and an adjustment to the cost basis of the security. The amount of impairment related to other factors is included in other comprehensive income (loss). Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. Equity Securities Provision and Allowance for Credit Losses Our ACL is based on an expected credit loss model that recognizes credit losses over the life of a financial asset. Expected credit losses capture historical information, current conditions, and reasonable and supportable forecasts of future conditions. The ACL is deducted from the amortized cost of an instrument to present the net amount expected to be collected on the financial asset. Our ACL primarily consists of the aggregate ACL estimates of our Subsidiary Banks. The estimates are established through charges to operations in the form of charges to provisions for credit loss expense. Loan losses or recoveries are charged or credited directly to the ACL. The ACL of each Subsidiary Bank is maintained at a level considered appropriate by management, based on estimated current expected credit losses in the current loan portfolio, including information about past events, current conditions, and reasonable and supportable forecasts. Our management continually reviews the ACL of the Subsidiary Banks using the amounts determined from the estimates established on specific doubtful loans, the estimate established on quantitative historical loss percentages, and the estimate based on qualitative current conditions and reasonable and supportable two-year forecasted data. Our methodology reverts to the average lifetime loss-rate beyond the forecast period when we can no longer develop reasonable and supportable forecasts. Should any of the factors considered by management in evaluating the adequacy of the estimate for current expected credit losses change, our estimate of current expected credit losses could also change, which could affect the level of future credit loss expense. While the calculation of our ACL utilizes management’s best judgment and all information reasonably available, the adequacy of the ACL is dependent on a variety of factors beyond our control, including, among other things, the performance of the entire loan portfolio, the economy, government actions, changes in interest rates, and the view of regulatory authorities towards loan classifications. We believe that the allowance for probable loan losses is adequate. The Subsidiary Banks charge-off that portion of any loan which management considers to represent a loss as well as that portion of any other loan which is classified as a “loss” by bank examiners. Commercial, financial, and agricultural or real estate loans are generally considered by management to represent a loss, in whole or part, (i) when an exposure beyond any collateral coverage is apparent, (ii) when no further collection of the portion of the loan so exposed is anticipated based on actual results, (iii) when the credit enhancements, if any, are not adequate, and (iv) when the borrower’s financial condition would indicate so. Generally, unsecured consumer loans are charged-off when 90 days past due. Loans Loans are reported at the principal balance outstanding, net of unearned discounts. Interest income on loans is reported on an accrual basis. Loan fees and costs associated with originating the loans are accreted or amortized over the life of the loan using the interest method. We originate mortgage loans that may subsequently be sold to an unaffiliated third party. The loans are not securitized and if sold, are sold without recourse. Loans held for sale are carried at cost and the principal amount outstanding is not significant to the consolidated financial statements. Doubtful Loans Doubtful loans are those loans where it is probable that all amounts due according to contractual terms of the loan agreement will not be collected. Doubtful loans are measured based on (i) the present value of expected future cash flows discounted at the loan’s effective interest rate; (ii) the loan’s observable market price; or (iii) the fair value of the collateral if the loan is collateral dependent. Substantially all our doubtful loans are measured at the fair value of the collateral. In limited cases, we may use other methods to determine the level of impairment of a loan if such loan is not collateral dependent. Troubled Loan Modifications Non-Accrual Loans The non-accrual loan policy of our Subsidiary Banks is to discontinue the accrual of interest on loans when management determines that it is probable that future interest accruals will be un-collectible. As it relates to consumer loans, management charges-off those loans when the loan is contractually 90 days past due. Under special circumstances, a consumer or non-consumer loan may be more than 90 days delinquent as to interest or principal and not be placed on non-accrual status. This situation generally results when a Subsidiary Bank has a borrower who is experiencing financial difficulties, but not to the extent that requires a restructuring of indebtedness. The majority of this category is composed of loans that are considered to be adequately secured and/or for which there are expected future payments. When a loan is placed on non-accrual status, any interest accrued, not paid is reversed and charged to operations against interest income. As it relates to non-consumer loans that are not 90 days past due, management will evaluate each of these loans to determine if placing the loan on non-accrual status is warranted. Interest income on non-accrual loans is recognized only to the extent payments are received or when, in management’s opinion, the debtor’s financial condition warrants reestablishment of interest accruals. Other Real Estate Owned and Repossessed Assets Other real estate owned is comprised of real estate acquired by foreclosure and deeds in lieu of foreclosure. Other real estate is carried at the lower of the recorded investment in the property or its fair value less estimated costs to sell such property (as determined by independent appraisal). Prior to foreclosure, the value of the underlying loan is written down to the fair value of the real estate to be acquired by a charge to the ACL, if necessary. Any subsequent write-downs are charged against other non-interest expense through a valuation allowance. Other real estate owned totaled approximately $26,728,000 and $30,144,000 at December 31, 2023 and 2022, respectively. Other real estate owned is included in other assets. Repossessed assets consist primarily of non-real estate assets acquired by foreclosure. Prior to foreclosure, the value of the underlying loan is written down to the fair value of the asset to be repossessed by a charge to the ACL, if necessary. Repossessed assets are included in other assets on the consolidated financial statements and totaled approximately $236,000 and $4,637,000 at December 31, 2023 and 2022, respectively. Bank Premises and Equipment Bank premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed on straight-line and accelerated methods over the estimated useful lives of the assets. Repairs and maintenance are charged to operations as incurred and expenditures for renewals and betterments are capitalized. We primarily own all the property we occupy, with the exception of certain branches operating in grocery store or retail shopping centers and certain ATM locations, which are all under operating leases as classified under guidance prior to the issuance of ASU 2016-02, “Leases (Topic 842).” Other Investments Other investments include equity investments in non-financial companies, as well as equity securities with no readily determinable fair market value. Equity investments are accounted for using the equity method of accounting. Equity securities with no readily determinable fair value are accounted for using the cost method. Revenue Recognition Income Taxes Deferred income tax assets and liabilities are determined using the asset and liability method. Under this method, the net deferred tax asset or liability is determined based on the tax effects of the differences between the book and tax basis of the various balance sheet assets and liabilities and gives current recognition to changes in tax rates and laws. We file a consolidated federal income tax return with our subsidiaries. Recognition of deferred tax assets is based on management’s assessment that the benefit related to certain temporary differences, tax operating loss carry forwards, and tax credits are more likely than not to be realized. A valuation allowance is recorded for the amount of the deferred tax items for which it is more likely than not that the tax benefits will not be realized. We evaluate uncertain tax positions at the end of each reporting period. We may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefit recognized in the financial statements from any such a position is measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. As of December 31, 2023 and 2022, respectively, after evaluating all uncertain tax positions, we have recorded no liability for unrecognized tax benefits at the end of the reporting period. We would recognize any interest accrued on unrecognized tax benefits as other interest expense and penalties as other non-interest expense. During the years ended December 31, 2023, 2022, and 2021, we recognized no interest expense or penalties related to uncertain tax positions. We file consolidated tax returns in the U.S. federal jurisdiction and various state jurisdictions. We are no longer subject to U.S. federal or state income tax examinations by tax authorities for years before 2020. Stock Options and Stock Appreciation Rights Compensation expense for stock-based awards is based on the market price of the stock on the measurement date, which is generally the date of grant, and is recognized ratably over the service period of the award. The fair value of stock options and stock appreciation rights granted was estimated using a Black-Scholes-Merton pricing model. These models were developed for use in estimating the fair value of publicly traded options and stock appreciation rights that have no vesting restrictions and are fully transferable. Additionally, these models require the input of highly subjective assumptions. Because our employee stock options and stock appreciation rights have characteristics significantly different from those of publicly traded options and appreciation rights, and because changes in the subjective input assumptions can materially affect the fair value estimate, in management’s opinion, the Black-Scholes-Merton pricing models do not necessarily provide a reliable single measure of the fair value of our stock options and stock appreciation rights. Net Income Per Share Basic Earnings Per Share (“EPS”) is calculated by dividing net income by the weighted average number of common shares outstanding. The computation of diluted EPS assumes the issuance of common shares for all dilutive potential common shares outstanding during the reporting period. The dilutive effect of stock options is considered in earnings per share calculations, if dilutive, using the treasury stock method. Goodwill and Identified Intangible Assets Goodwill represents the excess of costs over fair value of assets of businesses acquired. Goodwill is tested for impairment at least annually or on an interim basis if an event triggering impairment may have occurred. As of October 1, 2023, after completing goodwill testing, we have determined that no goodwill impairment exists. Identified intangible assets are acquired assets that lack physical substance but can be distinguished from goodwill because of contractual or other legal rights or because the asset is capable of being sold or exchanged either on its own or in combination with a related contract, asset, or liability. Our identified intangible assets relate to core deposits and contract rights. As of December 31, 2023, we have determined that no impairment of identified intangibles exists. Identified intangible assets with definite useful lives are amortized on an accelerated basis over their estimated life. See Note 6—Goodwill and Other Intangible Assets. Impairment of Long-Lived Assets Long-lived assets, such as property, plant, and equipment, and purchased intangibles subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying value of the asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying value of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying value of the asset exceeds the fair value of the asset. Assets to be disposed of would be separately presented in the statement of condition and reported at the lower of the carrying value or fair value less costs to sell and are no longer depreciated. The assets and liabilities of a disposed group classified as held for sale would be presented separately in the appropriate asset and liability sections of the statement of condition. Consolidated Statements of Cash Flows For purposes of the consolidated statements of cash flows, we consider all short-term investments with a maturity at date of purchase of three months or less to be cash equivalents. Also, we report transactions related to deposits and loans to customers on a net basis. Accounting for Transfers and Servicing of Financial Assets We account for transfers and servicing of financial assets and extinguishments of liabilities based on the application of a financial-components approach that focuses on control. After a transfer of financial assets, we recognize the financial and servicing assets we control and liabilities we have incurred, derecognize financial assets when control has been surrendered and derecognize liabilities when extinguished. We have retained mortgage servicing rights in connection with the sale of mortgage loans. Because we may not initially identify loans as originated for resale, all loans are initially treated as held for investment. The value of the mortgage servicing rights are reviewed periodically for impairment and are amortized in proportion to, and over the period of estimated net servicing income or net servicing losses. The value of the mortgage servicing rights is not significant to the consolidated statements of condition. Segments of an Enterprise and Related Information We operate as one segment. The operating information used by our chief executive officer for purposes of assessing performance and making operating decisions is the consolidated financial statements presented in this report. We have five active operating subsidiaries, namely, the Subsidiary Banks. We apply the provisions of ASC Topic 280, “Segment Reporting,” in determining our reportable segments and related disclosures. Comprehensive Income (Loss) Comprehensive income (loss) consists of net income and other comprehensive income (loss). Other comprehensive income (loss) includes unrealized gains and losses on securities available for sale. Advertising Advertising costs are expensed as incurred. Reclassifications Certain amounts in the prior year’s presentations have been reclassified to conform to the current presentation. These reclassifications had no effect on previously reported net income or shareholders’ equity. New Accounting Standards In December 2019, the FASB issued Accounting Standards Update No. 2019-12, to ASC 740, “Income Taxes.” The update amends existing guidance with the intention of simplifying the accounting for income taxes. Specifically, the update removes some exceptions in existing guidance around intraperiod tax allocations, recognition of deferred tax liabilities for certain changes in investments in foreign subsidiaries and to the general methodology for calculating taxes on interim periods when year to date losses exceed the anticipated loss for the year. Additionally, the update clarifies and provides more guidance with respect to the classification of franchise or similar taxes, requirements to evaluate when a step up in the tax basis of goodwill should be considered, eliminates the requirement that a consolidated entity allocate a portion of current and deferred tax expense to a legal entity that is not subject to tax, requires that an entity reflect the effect of changes in tax laws and tax rates in the effective tax rate computed in the interim period that includes the enactment date and makes minor changes for taxes related to employee stock ownership plans and investments in qualified affordable housing projects accounted for using the equity method. The update is effective for fiscal years beginning after December 15, 2020. The adoption of the update did not have a significant impact on our consolidated financial statements. investments in leases. We adopted the provisions of ASU 2022-02 on January 1, 2023 and it did not have a significant impact on our consolidated financial statements. |
Investment Securities, Equity S
Investment Securities, Equity Securities with Readily Determinable Fair Values and Other Investments | 12 Months Ended |
Dec. 31, 2023 | |
Investment Securities, Equity Securities with Readily Determinable Fair Values and Other Investments | |
Investment Securities, Equity Securities with Readily Determinable Fair Values and Other Investments | (2) Investment Securities, Equity Securities with Readily Determinable Fair Values and Other Investments Available-for-sale and held-to-maturity debt securities in an unrealized loss position are evaluated for the underlying cause of the loss. In the event that the deterioration in value is attributable to credit related reasons, then the amount of credit-related impairment would be recorded as a charge to our ACL with subsequent changes in the amount of impairment, up or down, also recorded through our ACL. The exception to this process will occur if we intend to sell an impaired available-for-sale debt security or if we will more likely than not be required to sell a credit impaired available-for-sale debt security prior to the value recovering to the security’s amortized cost. In those situations, the entire credit-related impairment amount would be required to be recognized in earnings. We have evaluated the debt securities classified as available-for-sale and held-to-maturity at December 31, 2023 and December 31, 2022, and have determined that no debt securities in an unrealized loss position are arising from credit related reasons, and have therefore not recorded any allowances for debt securities in our ACL for the period. Unrealized gains and losses related to equity securities with readily determinable fair values are included in net income. The amortized cost and estimated fair value by type of investment security at December 31, 2023 are as follows: Held to Maturity Gross Gross Amortized unrealized unrealized Estimated Carrying cost gains losses fair value value (Dollars in Thousands) Other securities $ 3,400 $ — $ — $ 3,400 $ 3,400 Total investment securities $ 3,400 $ — $ — $ 3,400 $ 3,400 Available for Sale Debt Securities Gross Gross Amortized unrealized unrealized Estimated Carrying cost gains losses fair value value (1) (Dollars in Thousands) Residential mortgage-backed securities $ 5,169,813 $ 9,541 $ (519,255) $ 4,660,099 $ 4,660,099 Obligations of states and political subdivisions 161,001 1,602 (361) 162,242 162,242 Total investment securities $ 5,330,814 $ 11,143 $ (519,616) $ 4,822,341 $ 4,822,341 (1) Included in the carrying value of residential mortgage- backed securities are $959,421 of mortgage-backed securities issued by Ginnie Mae and $3,700,678 of mortgage-backed securities issued by Fannie Mae and Freddie Mac The amortized cost and estimated fair value of investment securities at December 31, 2023, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to prepay obligations with or without prepayment penalties. Held to Maturity Available for Sale Amortized Estimated Amortized Estimated Cost fair value Cost fair value (Dollars in Thousands) Due in one year or less $ 2,075 $ 2,075 $ — $ — Due after one year through five years 1,325 1,325 — — Due after five years through ten years — — 440 440 Due after ten years — — 160,561 161,802 Residential mortgage-backed securities — — 5,169,813 4,660,099 Total investment securities $ 3,400 $ 3,400 $ 5,330,814 $ 4,822,341 The amortized cost and estimated fair value by type of investment security at December 31, 2022 are as follows: Held to Maturity Gross Gross Amortized unrealized unrealized Estimated Carrying cost gains losses fair value value (Dollars in Thousands) Other securities $ 3,400 $ — $ — $ 3,400 $ 3,400 Total investment securities $ 3,400 $ — $ — $ 3,400 $ 3,400 Available for Sale Gross Gross Estimated Amortized unrealized unrealized fair Carrying cost gains losses value value (1) (Dollars in Thousands) U.S. Treasury securities $ 49,752 $ — $ (359) $ 49,393 $ 49,393 Residential mortgage-backed securities 4,805,735 3,145 (599,668) 4,209,212 4,209,212 Obligations of states and political subdivisions 163,509 927 (5,245) 159,191 159,191 Total investment securities $ 5,018,996 $ 4,072 $ (605,272) $ 4,417,796 $ 4,417,796 (1) Included in the carrying value of residential mortgage- backed securities are $681,121 of mortgage-backed securities issued by Ginnie Mae, $3,528,091 of mortgage-backed securities issued by Fannie Mae and Freddie Mac Residential mortgage-backed securities are securities issued by Freddie Mac, Fannie Mae, Ginnie Mae or non-government entities. Investments in residential mortgage-backed securities issued by Ginnie Mae are fully guaranteed by the U.S. government. Investments in mortgage-backed securities issued by Freddie Mac and Fannie Mae are not fully guaranteed by the U.S. government; however, we believe that the quality of the bonds is similar to other AAA rated bonds with limited credit risk, particularly given the placement of Fannie Mae and Freddie Mac into conservatorship by the federal government in early September 2008 and because securities issued by others that are collateralized by residential mortgage-backed securities issued by Fannie Mae and Freddie Mac are rated consistently as AAA rated securities. The amortized cost and fair value of available for sale investment securities pledged to qualify for fiduciary powers, to secure public monies as required by law, repurchase agreements and short-term fixed borrowings was $1,836,634,000 and $1,598,853,000, respectively, at December 31, 2023. Proceeds from the sale and call of securities available-for-sale were $2,045,000, $800,000, and $5,890,000 during 2023, 2022 and 2021, respectively, which amounts included $0, $0 and $0 of mortgage-backed securities. Gross gains of $0, $0 and $0, and gross losses of $3,000, $0 and $16,000 were realized on the sales and calls in 2023, 2022 and 2021, respectively. Gross unrealized losses on investment securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2023 were as follows: Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses (Dollars in Thousands) Available for sale: Residential mortgage-backed securities $ 577,448 $ (8,267) $ 3,456,349 $ (510,988) $ 4,033,797 $ (519,255) Obligations of states and political subdivisions 651 (1) 64,373 (360) 65,024 (361) $ 578,099 $ (8,268) $ 3,520,722 $ (511,348) $ 4,098,821 $ (519,616) Gross unrealized losses on investment securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous loss position, at December 31, 2022 were as follows: Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses (Dollars in Thousands) Available for sale: U.S. Treasury securities $ 49,394 $ (359) $ — $ — $ 49,394 $ (359) Residential mortgage-backed securities 1,357,905 (87,815) 2,566,975 (511,853) 3,924,880 (599,668) Obligations of states and political subdivisions 118,772 (5,245) — — 118,772 (5,245) $ 1,526,071 $ (93,419) $ 2,566,975 $ (511,853) $ 4,093,046 $ (605,272) The unrealized losses on investments in residential mortgage-backed securities are primarily caused by changes in market interest rates. We have no intent to sell and more likely than not be required to sell before a market price recovery or maturity of the securities; therefore, it is our conclusion that the investments in residential mortgage-backed securities issued by Freddie Mac, Fannie Mae, and Ginnie Mae are not considered other-than-temporarily impaired. Year Ended December 31, 2023 (Dollars in Thousands) Net gains recognized during the period on equity securities $ 59 Less: Net gains and (losses) recognized during the period on equity securities sold during the period — Unrealized gains recognized during the reporting period on equity securities still held at the reporting date $ 59 Year Ended December 31, 2022 (Dollars in Thousands) Net losses recognized during the period on equity securities $ (721) Less: Net gains and (losses) recognized during the period on equity securities sold during the period — Unrealized losses recognized during the reporting period on equity securities still held at the reporting date $ (721) Year Ended December 31, 2021 (Dollars in Thousands) Net losses recognized during the period on equity securities $ (123) Less: Net gains and (losses) recognized during the period on equity securities sold during the period — Unrealized losses recognized during the reporting period on equity securities still held at the reporting date $ (123) |
Loans
Loans | 12 Months Ended |
Dec. 31, 2023 | |
Loans | |
Loans | (3) Loans A summary of loans, by loan type at December 31, 2023 and 2022 is as follows: December 31, December 31, 2023 2022 (Dollars in Thousands) Commercial, financial and agricultural $ 4,802,622 $ 4,373,373 Real estate - mortgage 938,901 865,994 Real estate - construction 2,091,622 1,989,669 Consumer 45,121 41,592 Foreign 180,695 159,975 Total loans $ 8,058,961 $ 7,430,603 |
Allowance for Credit Losses
Allowance for Credit Losses | 12 Months Ended |
Dec. 31, 2023 | |
Allowance for Credit Losses | |
Allowance for Credit Losses | (4) Allowance for Credit Losses We adopted the provisions of ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments on January 1, 2020 on a modified retrospective basis. Results and information regarding our ACL included in this Note are calculated and presented in accordance with that accounting standards update. Results and information prior to January 1, 2020 were calculated and presented in accordance with previously applicable U.S. GAAP. ASU 2016-13 replaces the long-standing incurred-loss model with a current expected credit loss model (“CECL”) that recognizes credit losses over the life of a financial asset. Using the CECL methodology, expected credit losses capture historical information, current conditions, and reasonable and supportable forecasts of future conditions. The ACL is deducted from the amortized cost of an instrument to present the net amount expected to be collected on the financial asset. Our ACL primarily consists of the aggregate ACL estimates of our Subsidiary Banks. The estimates are established through charges to operations in the form of charges to provisions for credit loss expense. Loan losses or recoveries are charged or credited directly to the ACL. The ACL of each Subsidiary Bank is maintained at a level considered appropriate by management, based on estimated current expected credit losses in the current loan portfolio, including information about past events, current conditions, and reasonable and supportable forecasts. The estimation of the ACL is based on a loss-rate methodology that measures lifetime losses on loan pools that have similar risk characteristics. Loans that do not have similar risk characteristics are evaluated on an individual basis. The segmentation of the loan portfolio into pools requires a balancing process between capturing similar risk characteristics and containing sufficient loss history to provide meaningful results. Our segmentation starts at the general loan category with further sub-segmentation based on collateral types that may be of meaningful size and/or may contain sufficient differences in risk characteristics based on management’s judgement that would warrant further segmentation. The general loan categories along with primary risk characteristics used in our calculation are as follows: Commercial and industrial loans. Construction and land development loans. Commercial real estate loans. 1-4 family mortgages. Consumer loans. The loan pools are further broken down using a risk-based segmentation based on internal classifications for commercial loans and past due status for consumer mortgage loans. Non-mortgage consumer loans are evaluated as one segment. On a weekly basis, commercial loan past due reports are reviewed by the credit quality committee to determine if a loan has any potential problems and if a loan should be placed on our internal Watch List report. Additionally, our credit department reviews the majority of our loans for proper internal classification purposes regardless of whether they are past due and segregates any loans with potential problems for further review. The credit department will discuss the potential problem loans with the servicing loan officers to determine any relevant issues that were not discovered in the evaluation. Also, an analysis of loans that is provided through examinations by regulatory authorities is considered in the review process. After the above analysis is completed, we will determine if a loan should be placed on an internal Watch List report because of issues related to the analysis of the credit, credit documents, collateral, and/or payment history. Our internal Watch List report is segregated into the following categories: (i) Pass, (ii) Economic Monitoring, (iii) Special Review, (iv) Watch List—Pass, or (v) Watch List—Substandard, and (vi) Watch List—Doubtful. The loans placed in the Special Review category and lower rated credits reflect our opinion that the loans reflect potential weakness which require monitoring on a more frequent basis. Credits in those categories are reviewed and discussed on a regular basis, no less frequently than quarterly, with the credit department and the lending staff to determine if a change in category is warranted. The loans placed in the Watch List—Pass category and lower rated credits reflect our opinion that the credit contains weaknesses which represent a greater degree of risk, which warrant “extra attention.” Credits in this category are reviewed and discussed on a regular basis with the credit department and the lending staff to determine if a change in category is warranted. The loans placed in the Watch List—Substandard category are considered to be potentially inadequately protected by the current sound worth and debt service capacity of the borrower or of any pledged collateral. These credit obligations, even if apparently protected by collateral value, have shown defined weaknesses related to adverse financial, managerial, economic, market, or political conditions which may jeopardize repayment of principal and interest. Furthermore, there is the possibility that we may sustain some future loss if such weaknesses are not corrected. The loans placed in the Watch List—Doubtful category have shown defined weaknesses and it is likely, based on current information and events, that we will be unable to collect all principal and/or interest amounts contractually due. Watch List—Doubtful loans are placed on non-accrual when they are moved to that category. For the purposes of the ACL, in order to maintain segments with sufficient history for meaningful results, the credits in the Pass and Economic Monitoring categories are aggregated, the credits in the Special Review and Watch List—Pass credits are aggregated, and the credits in the Watch List—Substandard category remain in their own segment. For loans that are classified as Watch List—Doubtful, management evaluates these credits in accordance with ASC 310-10, “Receivables,” and, if deemed necessary, a specific reserve is allocated to the loan. The specific reserve allocated under ASC 310-10 is based on (i) the present value of expected future cash flows discounted at the loan’s effective interest rate; (ii) the loan’s observable market price; or (iii) the net realizable value of the fair value of the collateral if the loan is collateral dependent. Substantially all of our loans evaluated as Watch List—Doubtful under ASC 310-10 are measured using the fair value of collateral method. In rare cases, we may use other methods to determine the specific reserve of a loan under ASC 310-10 if such loan is not collateral dependent. Within each collectively evaluated pool, the robustness of the lifetime historical loss-rate is evaluated and, if needed, is supplemented with peer loss rates through a model risk adjustment. Certain qualitative loss factors are then evaluated to incorporate management’s two-year reasonable and supportable forecast period followed by a reversion to the pool’s average lifetime loss-rate. Those qualitative loss factors are: (i) trends in portfolio volume and composition, (ii) volume and trends in classified loans, delinquencies, non-accruals and troubled loan modifications, (iii) concentration risk, (iv) trends in underlying collateral value, (v) changes in policies, procedures, and strategies, and (vi) economic conditions. Qualitative factors also include potential losses stemming from operational risk factors arising from fraud, natural disasters, pandemics, geopolitical events and large loans. The large loan operational risk factor was added beginning in the second quarter of 2023. Because of the magnitude of large loans, they pose a higher risk of default. Recognizing this risk and establishing an operational risk factor to capture that risk, is prudent action in the current economic environment. Large loans are usually part of a larger relationship with collateral that is pledged across the relationship. Defaulting on a larger loan may therefore jeopardize an entire collateral relationship. The current economic environment has created challenges for borrowers to service their debt. Increasing cap rates, elevated office vacancies, an upward trend in apartment vacancies and significant increases in interest rates are all contributing to the elevated risk in large loans. Should any of the factors considered by management in evaluating the adequacy of the ACL change, our estimate could also change, which could affect the level of future credit loss expense. We have elected to not measure an ACL for accrued interest receivable given our timely approach in identifying and writing off uncollectible accrued interest. An ACL for off-balance sheet exposure is derived from a projected usage rate of any unfunded commitment multiplied by the historical loss rate, plus model risk adjustment, if any, of the on-balance sheet loan pools. Our management continually reviews the ACL of the Subsidiary Banks using the amounts determined from the estimates established on specific doubtful loans, the estimate established on quantitative historical loss percentages, and the estimate based on qualitative current conditions and reasonable and supportable two-year forecasted data. Our methodology reverts to the average lifetime loss-rate beyond the forecast period when we can no longer develop reasonable and supportable forecasts. Should any of the factors considered by management in evaluating the adequacy of the estimate for current expected credit losses change, our estimate of current expected credit losses could also change, which could affect the level of future credit loss expense. While the calculation of our ACL utilizes management’s best judgment and all information reasonably available, the adequacy of the ACL is dependent on a variety of factors beyond our control, including, among other things, the performance of the entire loan portfolio, the economy, government actions, changes in interest rates, and the view of regulatory authorities towards loan classifications. A summary of the changes in the allowance for probable loan losses by loan class is as follows: December 31, 2023 Domestic Foreign Commercial real estate: other Commercial construction & real estate: Commercial land farmland & real estate: Residential: Residential: Commercial development commercial multifamily first lien junior lien Consumer Foreign Total (Dollars in Thousands) Balance at December 31, 2022 $ 26,728 $ 44,684 $ 36,474 $ 3,794 $ 4,759 $ 8,284 $ 281 $ 968 $ 125,972 Losses charged to allowance (9,664) — — — (43) (298) (179) — (10,184) Recoveries credited to allowance 5,433 837 143 — 16 260 16 — 6,705 Net losses charged to allowance (4,231) 837 143 — (27) (38) (163) — (3,479) Provision (credit) charged to operations 13,053 9,770 6,086 1,294 1,080 2,778 200 315 34,576 Balance at December 31, 2023 $ 35,550 $ 55,291 $ 42,703 $ 5,088 $ 5,812 $ 11,024 $ 318 $ 1,283 $ 157,069 December 31, 2022 Domestic Foreign Commercial real estate: other Commercial construction & real estate: Commercial land farmland & real estate: Residential: Residential: Commercial development commercial multifamily first lien junior lien Consumer Foreign Total (Dollars in Thousands) Balance at December 31, 2021 $ 23,178 $ 35,390 $ 35,654 $ 3,291 $ 4,073 $ 7,754 $ 272 $ 762 $ 110,374 Losses charged to allowance (9,050) (2) (16) — (160) (28) (223) — (9,479) Recoveries credited to allowance 2,894 123 27 — 240 104 38 — 3,426 Net losses charged to allowance (6,156) 121 11 — 80 76 (185) — (6,053) Provision (credit) charged to operations 9,706 9,173 809 503 606 454 194 206 21,651 Balance at December 31, 2022 $ 26,728 $ 44,684 $ 36,474 $ 3,794 $ 4,759 $ 8,284 $ 281 $ 968 $ 125,972 December 31, 2021 Domestic Foreign Commercial real estate: other Commercial construction & real estate: Commercial land farmland & real estate: Residential: Residential: Commercial development commercial multifamily first lien junior lien Consumer Foreign Total (Dollars in Thousands) Balance at December 31, 2020 $ 21,908 $ 37,612 $ 30,000 $ 5,051 $ 3,874 $ 9,570 $ 291 $ 753 $ 109,059 Losses charged to allowance (8,083) (2) (364) — (373) (25) (176) (1) (9,024) Recoveries credited to allowance 1,943 — 171 — 60 164 46 — 2,384 Net losses charged to allowance (6,140) (2) (193) — (313) 139 (130) (1) (6,640) Provision (credit) charged to operations 7,410 (2,220) 5,847 (1,760) 512 (1,955) 111 10 7,955 Balance at December 31, 2021 $ 23,178 $ 35,390 $ 35,654 $ 3,291 $ 4,073 $ 7,754 $ 272 $ 762 $ 110,374 the high level of uncertainty in the economy and a potential economic recession on the horizon. We have increased the severity of some of the qualitative loss factors in certain pools of the portfolio to encompass the economic uncertainty, resulting in an increase in the required ACL. The pool specific qualitative loss factors management deemed appropriate for the ACL calculation at December 31, 2022 remained constant in the December 31, 2023 calculation, with the exception of the large loan factor that was added to the ACL calculation in the second quarter of 2023. The table below provides additional information on the balance of loans individually or collectively evaluated for impairment and their related allowance, by loan class: December 31, 2023 Loans Individually Loans Collectively Evaluated For Evaluated For Impairment Impairment Recorded Recorded Investment Allowance Investment Allowance (Dollars in Thousands) Domestic Commercial $ 30,872 $ 7,971 $ 1,597,358 $ 27,579 Commercial real estate: other construction & land development 15,701 4,320 2,075,921 50,971 Commercial real estate: farmland & commercial 299 — 2,793,254 42,703 Commercial real estate: multifamily 96 — 380,743 5,088 Residential: first lien 93 — 477,940 5,812 Residential: junior lien — — 460,868 11,024 Consumer — — 45,121 318 Foreign — — 180,695 1,283 Total $ 47,061 $ 12,291 $ 8,011,900 $ 144,778 December 31, 2022 Loans Individually Loans Collectively Evaluated For Evaluated For Impairment Impairment Recorded Recorded Investment Allowance Investment Allowance (Dollars in Thousands) Domestic Commercial $ 30,747 $ 2,375 $ 1,468,006 $ 24,353 Commercial real estate: other construction & land development 20,483 70 1,969,186 44,614 Commercial real estate: farmland & commercial 94 — 2,568,025 36,474 Commercial real estate: multifamily 117 — 306,384 3,794 Residential: first lien 77 — 425,647 4,759 Residential: junior lien 312 — 439,958 8,284 Consumer — — 41,592 281 Foreign — — 159,975 968 Total $ 51,830 $ 2,445 $ 7,378,773 $ 123,527 Loans accounted for on a non-accrual basis at December 31, 2023, 2022 and 2021 amounted to $47,170,000, $51,648,000, and $1,921,000, respectively. The increase in non-accrual loans at December 31, 2022 is primarily attributable to two loans that were placed on non-accrual at the end of the fourth quarter of 2022. One relationship is secured by equipment used in the oil and gas industry and one is secured by real estate. The effect of such non-accrual loans reduced interest income by approximately $6,614,000, $116,000, and $169,000 for the years ended December 31, 2023, 2022, and 2021, respectively. Amounts received on non-accruals are applied, for financial accounting purposes, first to principal and then to interest after all principal has been collected. Accruing loans contractually past due 90 days or more as to principal or interest payments at December 31, 2023, 2022, and 2021 amounted to approximately $5,597,000, $6,132,000, and $8,642,000, respectively. The table below provides additional information on loans accounted for on a non-accrual basis by loan class: December 31, 2023 December 31, 2022 (Dollars in Thousands) Domestic Commercial $ 30,872 $ 30,747 Commercial real estate: other construction & land development 15,701 20,483 Commercial real estate: farmland & commercial 299 94 Commercial real estate: multifamily 96 117 Residential: first lien 202 207 Total non-accrual loans $ 47,170 $ 51,648 Doubtful loans are those loans where it is probable that all amounts due according to contractual terms of the loan agreement will not be collected. We have identified these loans through our normal loan review procedures. Doubtful loans are measured based on (i) the present value of expected future cash flows discounted at the loan’s effective interest rate; (ii) the loan’s observable market price; or (iii) the fair value of the collateral if the loan is collateral dependent. Substantially all of our doubtful loans are measured at the fair value of the collateral. In limited cases, we may use other methods to determine the level of impairment of a loan if such loan is not collateral dependent. December 31, 2022 (Dollars in Thousands) Domestic Residential: first lien $ 1,642 Residential: junior lien 714 Consumer 802 Foreign 55 Total troubled debt restructuring $ 3,213 The Subsidiary Banks charge-off that portion of any loan which management considers to represent a loss as well as that portion of any other loan which is classified as a “loss” by bank examiners. Commercial and industrial or real estate loans are generally considered by management to represent a loss, in whole or part, when an exposure beyond any collateral coverage is apparent and when no further collection of the loss portion is anticipated based on the borrower’s financial condition and general economic conditions in the borrower’s industry. Generally, unsecured consumer loans are charged-off when 90 days past due. While management considers that it is generally able to identify borrowers with financial problems reasonably early and to monitor credit extended to such borrowers carefully, there is no precise method of predicting loan losses. The determination that a loan is likely to be uncollectible and that it should be wholly or partially charged-off as a loss is an exercise of judgment. Similarly, the determination of the adequacy of the ACL (formerly allowance for probable loan losses) can be made only on a subjective basis. It is the judgment of our management that the ACL at December 31, 2023 and December 31, 2022, was adequate to absorb expected losses from loans in the portfolio at that date. The following table presents information regarding the aging of past due loans by loan class: December 31, 2023 90 Days or Total 30 - 59 60 - 89 90 Days or greater & Past Total Days Days Greater still accruing Due Current Portfolio (Dollars in Thousands) Domestic Commercial $ 2,387 $ 1,583 $ 30,238 $ 539 $ 34,208 $ 1,594,022 $ 1,628,230 Commercial real estate: other construction & land development 3,460 — 10,245 — 13,705 2,077,917 2,091,622 Commercial real estate: farmland & commercial 1,424 371 93 4 1,888 2,791,665 2,793,553 Commercial real estate: multifamily 369 330 — — 699 380,140 380,839 Residential: first lien 1,812 1,439 2,545 2,437 5,796 472,236 478,032 Residential: junior lien 1,273 613 1,701 1,701 3,587 457,282 460,869 Consumer 263 11 27 27 301 44,820 45,121 Foreign 1,884 848 889 889 3,621 177,074 180,695 Total past due loans $ 12,872 $ 5,195 $ 45,738 $ 5,597 $ 63,805 $ 7,995,156 $ 8,058,961 December 31, 2022 90 Days or Total 30 - 59 60 - 89 90 Days or greater & Past Total Days Days Greater still accruing Due Current Portfolio (Dollars in Thousands) Domestic Commercial $ 1,732 $ 258 $ 1,014 $ 59 $ 3,004 $ 1,495,750 $ 1,498,754 Commercial real estate: other construction & land development 1,130 — — — 1,130 1,988,539 1,989,669 Commercial real estate: farmland & commercial 1,744 117 — — 1,861 2,566,257 2,568,118 Commercial real estate: multifamily — — — — — 306,501 306,501 Residential: first lien 2,023 1,068 4,189 4,061 7,280 418,444 425,724 Residential: junior lien 925 771 1,717 1,717 3,413 436,857 440,270 Consumer 281 14 7 7 302 41,290 41,592 Foreign 717 23 288 288 1,028 158,947 159,975 Total past due loans $ 8,552 $ 2,251 $ 7,215 $ 6,132 $ 18,018 $ 7,412,585 $ 7,430,603 The increase in Commercial loans past due 90 days or greater at December 31, 2023 can be primarily attributed to a loan secured by equipment and other assets used in the oil and gas industry and oil and gas production that is on non-accrual. The increase in Commercial Real Estate: Other Construction & Land Development loans past due 90 days or greater can be primarily attributed to a loan secured by commercial property that is on non-accrual. Our internal classified report is segregated into the following categories: (i) “Special Review Credits,” (ii) “Watch List—Pass Credits,” or (iii) “Watch List—Substandard Credits.” The loans placed in the “Special Review Credits” category reflect our opinion that the loans reflect potential weakness which require monitoring on a more frequent basis. The “Special Review Credits” are reviewed and discussed on a regular basis with the credit department and the lending staff to determine if a change in category is warranted. The loans placed in the “Watch List—Pass Credits” category reflect our opinion that the credit contains weaknesses which represent a greater degree of risk, which warrant “extra attention.” The “Watch List—Pass Credits” are reviewed and discussed on a regular basis with the credit department and the lending staff to determine if a change in category is warranted. The loans placed in the “Watch List—Substandard Credits” classification are considered to be potentially inadequately protected by the current sound worth and debt service capacity of the borrower or of any pledged collateral. These credit obligations, even if apparently protected by collateral value, have shown defined weaknesses related to adverse financial, managerial, economic, market, or political conditions which may jeopardize repayment of principal and interest. Furthermore, there is the possibility that we could sustain some future loss if such weaknesses are not corrected. 2023 2022 2021 2020 2019 Prior Total (Dollars in Thousands) Balance at December 31, 2023 Domestic Commercial Pass $ 791,233 $ 272,919 $ 364,271 $ 50,602 $ 21,468 $ 74,119 $ 1,574,612 Special Review 7,613 1,800 164 — — — 9,577 Watch List - Pass 11,865 — — — — — 11,865 Watch List - Substandard 1,180 92 28 — — 4 1,304 Watch List - Doubtful 27 30,810 35 — — — 30,872 Total Commercial $ 811,918 $ 305,621 $ 364,498 $ 50,602 $ 21,468 $ 74,123 $ 1,628,230 Commercial Current-period gross writeoffs $ 7,053 $ 2,187 $ 155 $ 264 $ 2 $ 3 $ 9,664 Commercial real estate: other construction & land development Pass $ 938,739 $ 674,037 $ 324,238 $ 96,400 $ 14,058 $ 3,219 $ 2,050,691 Watch List - Substandard 25,230 — — — — — 25,230 Watch List - Doubtful 2,726 12,975 — — — — 15,701 Total Commercial real estate: other construction & land development $ 966,695 $ 687,012 $ 324,238 $ 96,400 $ 14,058 $ 3,219 $ 2,091,622 Commercial real estate: other construction & land development Commercial real estate: farmland & commercial Pass $ 888,878 $ 628,653 $ 415,458 $ 267,705 $ 184,164 $ 248,626 $ 2,633,484 Special Review 5,205 — 3,357 — — — 8,562 Watch List - Pass 16,654 87 233 — — — 16,974 Watch List - Substandard 129,644 2,201 — 2,304 84 1 134,234 Watch List - Doubtful 211 88 — — — — 299 Total Commercial real estate: farmland & commercial $ 1,040,592 $ 631,029 $ 419,048 $ 270,009 $ 184,248 $ 248,627 $ 2,793,553 Commercial real estate: farmland & commercial Commercial real estate: multifamily Pass $ 123,523 $ 94,551 $ 42,081 $ 73,652 $ 10,743 $ 36,193 $ 380,743 Watch List - Doubtful — 96 — — — — 96 Total Commercial real estate: multifamily $ 123,523 $ 94,647 $ 42,081 $ 73,652 $ 10,743 $ 36,193 $ 380,839 Commercial real estate: multifamily Residential: first lien Pass $ 180,127 $ 83,568 $ 68,082 $ 39,935 $ 27,499 $ 78,306 $ 477,517 Watch List - Substandard — — 327 — — 95 422 Watch List - Doubtful — 93 — — — — 93 Total Residential: first lien $ 180,127 $ 83,661 $ 68,409 $ 39,935 $ 27,499 $ 78,401 $ 478,032 Residential: first lien Current-period gross writeoffs $ — $ — $ — $ — $ — $ 43 $ 43 Residential: junior lien Pass $ 88,628 $ 76,845 $ 96,411 $ 76,490 $ 34,870 $ 87,625 $ 460,869 Total Residential: junior lien $ 88,628 $ 76,845 $ 96,411 $ 76,490 $ 34,870 $ 87,625 $ 460,869 Residential: junior lien Current-period gross writeoffs $ — $ — $ — $ — $ — $ 298 $ 298 Consumer Pass $ 36,639 $ 5,366 $ 1,043 $ 237 $ 157 $ 1,679 $ 45,121 Total Consumer $ 36,639 $ 5,366 $ 1,043 $ 237 $ 157 $ 1,679 $ 45,121 Consumer Current-period gross writeoffs $ 54 $ 115 $ 9 $ — $ 1 $ — $ 179 Foreign Pass $ 116,104 $ 43,842 $ 12,317 $ 2,016 $ 2,797 $ 3,619 $ 180,695 Total Foreign $ 116,104 $ 43,842 $ 12,317 $ 2,016 $ 2,797 $ 3,619 $ 180,695 Total Loans $ 3,364,226 $ 1,928,023 $ 1,328,045 $ 609,341 $ 295,840 $ 533,486 $ 8,058,961 2022 2021 2020 2019 2018 Prior Total (Dollars in Thousands) Balance at December 31, 2022 Domestic Commercial Pass $ 736,462 $ 524,879 $ 96,401 $ 35,917 $ 43,792 $ 29,464 $ 1,466,915 Special Review 377 213 — — — — 590 Watch List - Substandard 161 149 143 — 49 — 502 Watch List - Doubtful 29,789 — 954 — — 4 30,747 Total Commercial $ 766,789 $ 525,241 $ 97,498 $ 35,917 $ 43,841 $ 29,468 $ 1,498,754 Commercial Commercial real estate: other construction & land development Pass $ 913,675 $ 666,347 $ 173,824 $ 174,897 $ 35,069 $ 5,165 $ 1,968,977 Special Review — — — 209 — — 209 Watch List - Doubtful 19,982 407 94 — — — 20,483 Total Commercial real estate: other construction & land development $ 933,657 $ 666,754 $ 173,918 $ 175,106 $ 35,069 $ 5,165 $ 1,989,669 Commercial real estate: farmland & commercial Pass $ 811,117 $ 584,134 $ 456,200 $ 232,537 $ 325,214 $ 81,295 $ 2,490,497 Special Review 2,855 — 842 — — — 3,697 Watch List - Pass 17,060 247 — — — — 17,307 Watch List - Substandard 2,275 — 54,152 96 — — 56,523 Watch List - Doubtful 94 — — — — — 94 Total Commercial real estate: farmland & commercial $ 833,401 $ 584,381 $ 511,194 $ 232,633 $ 325,214 $ 81,295 $ 2,568,118 Commercial real estate: multifamily Pass $ 127,680 $ 87,469 $ 59,035 $ 12,026 $ 5,490 $ 14,684 $ 306,384 Watch List - Doubtful 117 — — — — — 117 Total Commercial real estate: multifamily $ 127,797 $ 87,469 $ 59,035 $ 12,026 $ 5,490 $ 14,684 $ 306,501 Residential: first lien Pass $ 138,771 $ 82,466 $ 49,591 $ 40,985 $ 33,814 $ 79,660 $ 425,287 Watch List - Substandard — 360 — — — — 360 Watch List - Doubtful 77 — — — — — 77 Total Residential: first lien $ 138,848 $ 82,826 $ 49,591 $ 40,985 $ 33,814 $ 79,660 $ 425,724 Residential: junior lien Pass $ 92,256 $ 108,815 $ 91,130 $ 41,273 $ 21,975 $ 84,509 $ 439,958 Watch List- Doubtful — 312 — — — — 312 Total Residential: junior lien $ 92,256 $ 109,127 $ 91,130 $ 41,273 $ 21,975 $ 84,509 $ 440,270 Consumer Pass $ 31,962 $ 6,603 $ 897 $ 489 $ 28 $ 1,613 $ 41,592 Total Consumer $ 31,962 $ 6,603 $ 897 $ 489 $ 28 $ 1,613 $ 41,592 Foreign Pass $ 124,265 $ 19,082 $ 5,362 $ 4,848 $ 3,417 $ 3,001 $ 159,975 Total Foreign $ 124,265 $ 19,082 $ 5,362 $ 4,848 $ 3,417 $ 3,001 $ 159,975 Total Loans $ 3,048,975 $ 2,081,483 $ 988,625 $ 543,277 $ 468,848 $ 299,395 $ 7,430,603 The increase in Watch-List Pass Commercial loans at December 31, 2023 compared to December 31, 2022 can be primarily attributable to a relationship secured by commercial vehicles, which was downgraded from Pass. The increase in Commercial Real Estate: Construction and Development loans at December 31, 2023 compared to December 31, 2022 can be primarily attributable to the downgrade of two relationships secured by land for future develop |
Bank Premises and Equipment
Bank Premises and Equipment | 12 Months Ended |
Dec. 31, 2023 | |
Bank Premises and Equipment | |
Bank Premises and Equipment | (5) Bank Premises and Equipment A summary of bank premises and equipment, by asset classification, at December 31, 2023 and 2022 were as follows: Estimated useful lives 2023 2022 (Dollars in Thousands) Bank buildings and improvements 5 - 39 years $ 582,075 $ 571,665 Furniture, equipment and vehicles 1 - 20 years 325,855 307,990 Land 108,551 108,622 Less: accumulated depreciation (579,387) (556,665) Bank premises and equipment, net $ 437,094 $ 431,612 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Other Intangible Assets | |
Goodwill and Other Intangible Assets | (6) Goodwill and Other Intangible Assets The majority of our identified intangibles are in the form of amortizable core deposit premium. A small portion of the fully amortized identified intangibles represent identified intangibles in the acquisition of the rights to the insurance agency contracts of InsCorp, Inc., acquired in 2008. Information on our identified intangible assets follows: Carrying Accumulated Amount Amortization Net (Dollars in Thousands) December 31, 2023: Core deposit premium $ 58,675 $ 58,675 $ — Identified intangible (contract rights) 2,022 2,022 — Total identified intangibles $ 60,697 $ 60,697 $ — December 31, 2022: Core deposit premium $ 58,675 $ 58,675 $ — Identified intangible (contract rights) 2,022 2,022 — Total identified intangibles $ 60,697 $ 60,697 $ — Amortization expense of intangible assets was $0, $0 and $0 for the years ended December 31, 2023, 2022, and 2021. There were no changes in the carrying amount of goodwill for the years ended December 31, 2023 and 2022. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2023 | |
Deposits. | |
Deposits | (7) Deposits Deposits as of December 31, 2023 and 2022 and related interest expense for the years ended December 31, 2023, 2022, and 2021 were as follows: 2023 2022 (Dollars in Thousands) Deposits: Demand - non-interest bearing Domestic $ 4,126,635 $ 4,744,299 Foreign 904,210 1,101,756 Total demand non-interest bearing 5,030,845 5,846,055 Savings and interest bearing demand Domestic 3,161,411 3,448,717 Foreign 1,207,121 1,297,051 Total savings and interest bearing demand 4,368,532 4,745,768 Time, certificates of deposit $100,000 or more Domestic 763,419 652,073 Foreign 1,103,710 892,619 Less than $100,000 Domestic 289,565 276,660 Foreign 268,483 246,832 Total time, certificates of deposit 2,425,177 2,068,184 Total deposits $ 11,824,554 $ 12,660,007 2023 2022 2021 (Dollars in Thousands) Interest expense: Savings and interest bearing demand Domestic $ 42,148 $ 9,196 $ 3,268 Foreign 18,189 3,490 842 Total savings and interest bearing demand 60,337 12,686 4,110 Time, certificates of deposit $100,000 or more Domestic 18,597 5,528 6,652 Foreign 25,471 3,867 3,452 Less than $100,000 Domestic 4,592 1,027 984 Foreign 4,498 735 567 Total time, certificates of deposit 53,158 11,157 11,655 Total interest expense on deposits $ 113,495 $ 23,843 $ 15,765 Scheduled maturities of time deposits as of December 31, 2023 were as follows: Total (in thousands) 2024 $ 2,301,914 2025 85,385 2026 23,102 2027 14,200 2028 573 Thereafter 3 Total $ 2,425,177 Scheduled maturities of time deposits in amounts of $100,000 or more at December 31, 2023, were as follows: Total (in thousands) Due within 3 months or less $ 859,734 Due after 3 months and within 6 months 517,994 Due after 6 months and within 12 months 409,193 Due after 12 months 80,208 $ 1,867,129 Time deposits that meet or exceed the FDIC insurance limit of $250,000 at December 31, 2023 and December 31, 2022 were $749,169,000 and $585,456,000, respectively. |
Securities Sold Under Repurchas
Securities Sold Under Repurchase Agreements | 12 Months Ended |
Dec. 31, 2023 | |
Securities Sold Under Repurchase Agreements | |
Securities Sold Under Repurchase Agreements | (8) Securities Sold Under Repurchase Agreements Our Subsidiary Banks have entered into repurchase agreements with individual customers of the Subsidiary Banks. The purchasers have agreed to resell to the Subsidiary Banks identical securities upon the maturities of the agreements. Securities sold under repurchase agreements were mortgage-backed securities and averaged $469,152,000 and $476,877,000 during 2023 and 2022, respectively, and the maximum amount outstanding at any month end during 2023 and 2022 was $544,418,000 and $513,368,000, respectively. Further information related to repurchase agreements at December 31, 2023 and 2022 is set forth in the following table: Collateral Securities Repurchase Borrowing Book Value of Fair Value of Balance of Weighted Average Securities Sold Securities Sold Liability Interest Rate (Dollars in Thousands) December 31, 2023 term: Overnight agreements $ 667,647 $ 587,673 $ 518,650 3.76 % 1 to 29 days 24,842 20,454 10,696 4.50 30 to 90 days — — — — Over 90 days 1,623 1,574 1,070 4.00 Total $ 694,112 $ 609,701 $ 530,416 3.78 % December 31, 2022 term: Overnight agreements $ 664,491 $ 559,637 $ 419,703 1.61 % 1 to 29 days — — — — 30 to 90 days — — — — Over 90 days 20,852 16,968 11,488 1.32 Total $ 685,343 $ 576,605 $ 431,191 1.60 % The book value and fair value of securities sold includes the entire book value and fair value of securities partially or fully pledged under repurchase agreements. |
Other Borrowed Funds
Other Borrowed Funds | 12 Months Ended |
Dec. 31, 2023 | |
Other Borrowed Funds | |
Other Borrowed Funds | (9) Other Borrowed Funds Other borrowed funds include Federal Home Loan Bank borrowings, which may be short, and long-term fixed borrowings issued by the Federal Home Loan Bank of Dallas and the Federal Home Loan Bank of Topeka at the market price offered at the time of funding. These borrowings are secured by mortgage-backed investment securities and a portion of our loan portfolio. Further information regarding our other borrowed funds at December 31, 2023 and 2022 is set forth in the following table: December 31, 2023 2022 (Dollars in Thousands) Federal Home Loan Bank advances—long-term(1) Balance at year end $ 10,745 $ 10,944 Rate on balance outstanding at year end 2.61 % 2.61 % Average daily balance $ 10,837 $ 386,924 Average rate 2.61 % 1.75 % Maximum amount outstanding at any month end $ 10,928 $ 436,122 (1) Long-term advances at December 31, 2023 and December 31, 2022 consisted of amortizing and non-amortizing advances. The non-amortizing advances totaling $425,000,000 were called by the Federal Home Loan bank in the fourth quarter of 2022. Two amortizing advances are outstanding at December 31, 2023 in the amounts of $2,914,000 and $7,831,000 and mature in December 2033 and November 2033, respectively. The amortization on the amortizing long-term advances totals approximately $204,000 , $210,000 , $215,000 , $221,000 and $227,000 for the years ending December 31, 2024, 2025, 2026, 2027 and December 31, 2028, respectively . |
Junior Subordinated Interest De
Junior Subordinated Interest Deferrable Debentures | 12 Months Ended |
Dec. 31, 2023 | |
Junior Subordinated Interest Deferrable Debentures | |
Junior Subordinated Interest Deferrable Debentures | (10) Junior Subordinated Deferrable Interest Debentures We currently have four statutory business trusts under the laws of the State of Delaware for the purpose of issuing trust preferred securities. These statutory business trusts (the “Trusts”) each issued capital and common securities (“Capital and Common Securities”) and invested the proceeds thereof in an equivalent amount of junior subordinated debentures (the “Debentures”) we issued. As of December 31, 2023 and December 31, 2022, the principal amount of debentures outstanding totaled $108,868,000 and $134,642,000, respectively. The Debentures are subordinated and junior in right of payment to all our present and future senior indebtedness (as defined in the respective indentures) and are pari passu For financial reporting purposes, the Trusts are treated as investments and not consolidated in the consolidated financial statements. Although the Capital Securities issued by each of the Trusts are not included as a component of shareholders’ equity on the consolidated statement of condition, the Capital Securities are treated as capital for regulatory purposes. Specifically, under applicable regulatory guidelines, the Capital Securities issued by the Trusts qualify as Tier 1 capital up to a maximum of 25% of Tier 1 capital on an aggregate basis. Any amount that exceeds the 25% threshold would qualify as Tier 2 capital. At December 31, 2023 and December 31, 2022, the total $108,868,000 and $134,642,000, respectively, of the Capital Securities outstanding qualified as Tier 1 capital. The following table illustrates key information about each of the Debentures and their interest rates at December 31, 2023: Junior Subordinated Deferrable Interest Repricing Interest Interest Optional Debentures Frequency Rate Rate Index (1) Maturity Date Redemption Date (2) (Dollars in Thousands) Trust IX $ 41,238 Quarterly 7.28 % SOFR + 1.62 October 2036 October 2011 Trust X 21,021 Quarterly 7.29 % SOFR + 1.65 February 2037 February 2012 Trust XI 25,990 Quarterly 7.28 % SOFR + 1.62 July 2037 July 2012 Trust XII 20,619 Quarterly 7.09 % SOFR + 1.45 September 2037 September 2012 $ 108,868 (1) On July 1, 2023, the interest rate index on the Capital and Common Securities transitioned from U.S.-dollar London Interbank Offered Rate (“LIBOR”) to the Three-Month CME Term Secured Overnight Financing rate (“SOFR”) with a 26-basis point spread adjustment. (2) The Capital Securities may be redeemed in whole or in part on any interest payment date after the Optional Redemption Date. |
Earnings per Share ("EPS")
Earnings per Share ("EPS") | 12 Months Ended |
Dec. 31, 2023 | |
Earnings per Share ("EPS") | |
Earnings per Share ("EPS") | (11) Earnings per Share (“EPS”) Basic EPS is calculated by dividing net income by the weighted average number of common shares outstanding. The computation of diluted EPS assumes the issuance of common shares for all dilutive potential common shares outstanding during the reporting period. The calculation of the basic EPS and the diluted EPS for the years ended December 31, 2023, 2022, and 2021 is set forth in the following table: Net Income Shares Per Share (Numerator) (Denominator) Amount (Dollars in Thousands, Except Per Share Amounts) December 31, 2023: Basic EPS Net income available to common shareholders $ 411,768 62,082,827 $ 6.63 Potential dilutive common shares — 138,774 Diluted EPS $ 411,768 62,221,601 $ 6.62 December 31, 2022: Basic EPS Net income available to common shareholders $ 300,232 62,658,414 $ 4.79 Potential dilutive common shares — 151,820 Diluted EPS $ 300,232 62,810,234 $ 4.78 December 31, 2021: Basic EPS Net income available to common shareholders $ 253,922 63,352,737 $ 4.01 Potential dilutive common shares — 133,629 Diluted EPS $ 253,922 63,486,366 $ 4.00 |
Employees' Profit Sharing Plan
Employees' Profit Sharing Plan | 12 Months Ended |
Dec. 31, 2023 | |
Employees' Profit Sharing Plan | |
Employees' Profit Sharing Plan | (12) Employees’ Profit-Sharing Plan We have a deferred profit-sharing plan for full-time employees with a minimum of one year of continuous employment. Our annual contribution to the plan is based on a percentage, as determined by our Board of Directors, of income before income taxes, as defined, for the year. Allocation of the contribution among officers and employees’ accounts is based on length of service and amount of salary earned. Profit sharing costs of $4,011,000, $4,300,000, and $3,550,000 were charged to income for the years ended December 31, 2023, 2022, and 2021, respectively. |
International Operations
International Operations | 12 Months Ended |
Dec. 31, 2023 | |
International Operations | |
International Operations | (13) International Operations We provide international banking services for our customers through our Subsidiary Banks. Neither we nor our Subsidiary Banks have facilities located outside the United States. International operations are distinguished from domestic operations based upon the domicile of the customer. Because the resources we employ are common to both international and domestic operations, it is not practical to determine net income generated exclusively from international activities. A summary of assets attributable to international operations at December 31, 2023 and 2022 are as follows: 2023 2022 (Dollars in Thousands) Loans: Commercial $ 106,241 $ 103,748 Others 74,454 56,227 180,695 159,975 Less allowance for probable loan losses (1,283) (968) Net loans $ 179,412 $ 159,007 Accrued interest receivable $ 876 $ 515 At December 31, 2023 and December 31, 2022, we had $147,551,000 and $131,254,000, respectively, in outstanding standby and commercial letters of credit to facilitate trade activities. Revenues directly attributable to international operations were approximately $8,212,000, $4,821,000, and $4,090,000 for the years ended December 31, 2023, 2022 and 2021, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Taxes | |
Income Taxes | (14) Income Taxes We file a consolidated U.S. Federal and State income tax return. The current and deferred portions of net income tax expense included in the consolidated statements of income are presented below for the years ended December 31: 2023 2022 2021 (Dollars in Thousands) Current U.S. $ 82,657 $ 66,670 $ 59,591 State 6,137 5,118 5,272 Total current taxes 88,794 71,788 64,863 Deferred U.S. 23,001 10,555 3,794 State (51) 64 (252) Total deferred taxes 22,950 10,619 3,542 Total income taxes $ 111,744 $ 82,407 $ 68,405 Total income tax expense differs from the amount computed by applying the U.S. Federal income tax rate of 21% for 2023, 2022, and 2021 to income before income taxes. The reasons for the differences for the years ended December 31 are as follows: 2023 2022 2021 (Dollars in Thousands) Computed expected tax expense $ 110,065 $ 80,893 $ 68,011 Change in taxes resulting from: Tax-exempt interest income (3,663) (2,433) (2,970) State tax, net of federal income taxes, tax credit and refunds 4,808 4,094 3,966 Other investment income (2,761) (1,391) (1,753) Net investment in low income housing investments 1,974 1,906 203 Other 1,321 (662) 948 Actual tax expense $ 111,744 $ 82,407 $ 68,405 The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2023 and 2022 are reflected below: 2023 2022 (Dollars in Thousands) Deferred tax assets: Loans receivable, principally due to the allowance for probable loan losses $ 32,136 $ 25,982 Other real estate owned 1,649 1,194 Accrued expenses 581 186 Net unrealized losses on available for sale investment securities 110,584 130,586 Other 1,352 2,308 Total deferred tax assets 146,302 160,256 Deferred tax liabilities: Bank premises and equipment, principally due to differences on depreciation (14,879) (13,615) Impairment charges on available-for-sale securities (19) (19) Identified intangible assets and goodwill (14,151) (14,125) Partnership investment pass through (58,376) (30,319) Other (3,321) (3,555) Total deferred tax liabilities (90,746) (61,633) Net deferred tax asset $ 55,556 $ 98,623 The net deferred tax asset of $55,556,000 and $98,623,000 at December 31, 2023 and December 31, 2022, respectively, is included in other assets in the consolidated statements of condition. |
Stock Options and Stock Appreci
Stock Options and Stock Appreciation Rights | 12 Months Ended |
Dec. 31, 2023 | |
Stock Options and Stock Appreciation Rights | |
Stock Options and Stock Appreciation Rights | (15) Stock Options and Stock Appreciation Rights On April 5, 2012, the Board of Directors adopted the 2012 International Bancshares Corporation Stock Option Plan (the “2012 Plan”). There were 800,000 shares of common stock available for stock option grants under the 2012 Plan, which were qualified incentive stock options (“ISOs”) or non-qualified stock options. Options granted may be exercisable for a period of up to 10 years from the date of grant, excluding ISOs granted to 10% shareholders, which may be exercisable for a period of up to only five years. On April 4, 2022, the 2012 Plan expired and was not renewed. The fair value of each option award granted under the plan was estimated on the date of grant using a Black-Scholes-Merton option valuation model that uses the assumptions noted in the following table. Expected volatility was based on the historical volatility of the price of our stock. We used historical data to estimate the expected dividend yield and employee termination rates within the valuation model. The expected term of options was derived from historical exercise behavior. The risk-free rate for periods within the contractual life of the option was based on the U.S. Treasury yield curve in effect at the time of grant. 2022 Expected Life (Years) 7.00 Dividend yield 3.08 % Interest rate 1.94 % Volatility 37.78 % A summary of option activity under the stock option plans for the twelve months ended December 31, 2023 is as follows: Weighted Weighted average average remaining Aggregate Number of exercise contractual intrinsic options price term (years) value ($) (in Thousands) Options outstanding at December 31, 2022 461,822 $ 29.67 Plus: Options granted — — Less: Options exercised (46,444) 25.12 Options expired — — Options forfeited (31,513) 24.52 Options outstanding at December 31, 2023 383,865 30.65 3.42 $ 9,088 Options fully vested and exercisable at December 31, 2023 232,143 $ 27.80 1.96 $ 6,157 Stock-based compensation expense included in the consolidated statements of income for the years ended December 31, 2023, 2022, and 2021 was approximately $330,000, $449,000, and $506,000, respectively. As of December 31, 2023, there was approximately $507,000 of total unrecognized stock-based compensation cost related to non-vested options granted under our plans that will be recognized over a weighted average period of 1.3 years. Other information pertaining to option activity during the twelve months ended December 31, 2023, 2022, and 2021 is as follows: Twelve Months Ended December 31, 2023 2022 2021 Weighted average grant date fair value of stock options granted $ — $ 11.24 $ 10.20 Total fair value of stock options vested $ 514,000 $ 514,000 $ 1,308,000 Total intrinsic value of stock options exercised $ 1,060,000 $ 1,670,000 $ 2,536,000 On April 18, 2022, the Board of Directors adopted the 2022 International Bancshares Stock Appreciation Rights Plan (the “SAR Plan”). There are 750,000 shares of underlying common stock that may be used for stock appreciation right (“SAR”) grants under the plan, however, no actual shares will be granted. Upon exercise, the SAR will be settled in cash. SARs granted may be exercisable for a period of up to 10 years from the date of grant and may vest over an eight-year period. As of December 31, 2023, a total of 465,250 SARS had been issued under the SAR Plan. A summary of activity under the SAR Plan for the twelve months ended December 31, 2023 is as follows: Weighted Weighted average Number of average remaining Aggregate stock appreciation exercise contractual intrinsic rights price term (years) value ($) (in Thousands) Stock appreciation rights outstanding at December 31, 2022 489,250 $ 39.35 Plus: Stock appreciation rights granted Less: Stock appreciation rights exercised — — Stock appreciation rights expired — — Stock appreciation rights forfeited (24,000) 39.33 Stock appreciation rights outstanding at December 31, 2023 465,250 39.35 8.50 6,964 Stock appreciation rights fully vested and exercisable at December 31, 2023 — $ — The fair value of the liability for payments due to stock appreciation rights holders at December 31, 2023 and December 31, 2022 is approximately $1,464,000 and $546,000, respectively, as calculated using a Black-Scholes-Merton model, and is included in other liabilities on the consolidated statements of condition. The expense recorded in connection with all grants under the SAR Plan totaled $918,000 and $546,000, respectively, for the twelve months ended December 31, 2023 and December 31, 2022. As of December 31, 2023, there was approximately $5,090,000 in unrecognized liability related to non-vested SARs granted under the plan that will be recognized over a weighted average period of 8.5 years. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities and Other Matters | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingent Liabilities and Other Matters | |
Commitments and Contingent Liabilities and Other Matters | (16) Commitments, Contingent Liabilities and Other Matters On March 15, 2020, the FRB announced that it had reduced regulatory reserve requirements to zero percent effective on March 26, 2020; therefore no cash is required to be maintained to satisfy regulatory reserve requirements. We are involved in various legal proceedings that are in various stages of litigation. We have determined, based on discussions with our counsel that any material loss in such actions, individually or in the aggregate, is remote or the damages sought, even if fully recovered, would not be considered material to our consolidated statements of condition and related statements of income, comprehensive income, shareholders’ equity, and cash flows. However, many of these matters are in various stages of proceedings and further developments could cause management to revise its assessment of these matters. |
Transactions with Related Parti
Transactions with Related Parties | 12 Months Ended |
Dec. 31, 2023 | |
Transactions with Related Parties | |
Transactions with Related Parties | (17) Transactions with Related Parties In the ordinary course of business, the Subsidiary Banks make loans to our directors and executive officers, including their affiliates, families, and companies in which they are principal owners. In the opinion of management, these loans are made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with other persons and do not involve more than normal risk of collectability or present other unfavorable features. The aggregate amounts receivable from such related parties amounted to approximately $13,335,000 and $28,708,000 at December 31, 2023 and 2022, respectively. |
Financial Instruments with Off-
Financial Instruments with Off-Statement of Condition Risk and Concentrations of Credit Risk | 12 Months Ended |
Dec. 31, 2023 | |
Financial Instruments with Off-Statement of Condition Risk and Concentrations of Credit Risk | |
Financial Instruments with Off-Statement of Condition Risk and Concentrations of Credit Risk | (18) Financial Instruments with Off-Statement of Condition Risk and Concentrations of Credit Risk In the normal course of business, the Subsidiary Banks are party to financial instruments with off-statement of condition risk to meet the financing needs of their customers. These financial instruments include commitments to their customers. These financial instruments involve, to varying degrees, elements of credit risk in excess of the amounts recognized in the consolidated statement of condition. The contract amounts of these instruments reflect the extent of involvement the Subsidiary Banks have in particular classes of financial instruments. At December 31, 2023, the following financial amounts of instruments, whose contract amounts represent credit risks, were outstanding (in thousands): Commitments to extend credit $ 3,340,280 Credit card lines $ 14,181 Standby letters of credit $ 147,190 Commercial letters of credit $ 361 We enter into a standby letter of credit to guarantee performance of a customer to a third party. These guarantees are primarily issued to support public and private borrowing arrangements. The credit risk involved is represented by the contractual amounts of those instruments. Under the standby letters of credit, we are required to make payments to the beneficiary of the letters of credit upon request by the beneficiary so long as all performance criteria have been met. At December 31, 2023, the maximum potential amount of future payments is approximately $147,190,000. At December 31, 2023, the fair value of these guarantees is not significant. Unsecured letters of credit totaled approximately $23,677,000 and $40,249,000 at December 31, 2023 and 2022, respectively. We enter into commercial letters of credit on behalf of our customers which authorize a third party to draw drafts upon us up to a stipulated amount and with specific terms and conditions. A commercial letter of credit is a conditional commitment on our part to provide payment on drafts drawn in accordance with the terms of the commercial letter of credit. The Subsidiary Banks’ exposure to credit loss in the event of nonperformance by the other party to the above financial instruments is represented by the contractual amounts of the instruments. The Subsidiary Banks use the same credit policies in making commitments and conditional obligations as they do for on-statement of condition instruments. The Subsidiary Banks control the credit risk of these transactions through credit approvals, limits, and monitoring procedures. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates normally less than one year or other termination clauses and may require the payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Subsidiary Banks evaluate each customer’s credit-worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Subsidiary Banks upon extension of credit, is based on management’s credit evaluation of the customer. Collateral held varies, but may include residential and commercial real estate, bank certificates of deposit, accounts receivable, and inventory. The Subsidiary Banks make commercial, real estate and consumer loans to customers principally located in south, central and southeast Texas and the State of Oklahoma. Although the loan portfolio is diversified, a substantial portion of its debtors’ ability to honor their contracts is dependent upon the economic conditions in these areas, especially in the real estate and commercial business sectors. |
Capital Requirements
Capital Requirements | 12 Months Ended |
Dec. 31, 2023 | |
Capital Ratios | |
Capital Requirements | (19) Capital Requirements Bank regulatory agencies limit the amount of dividends, which the Subsidiary Banks can pay, without obtaining prior approval from such agencies. At December 31, 2023, the Subsidiary Banks could pay dividends of up to $1,229,500,000 without prior regulatory approval and without adversely affecting their “well-capitalized” status under regulatory capital rules in effect at December 31, 2023. In addition to legal requirements, regulatory authorities also consider the adequacy of the Subsidiary Banks’ total capital in relation to their deposits and other factors. These capital adequacy considerations also limit amounts available for payment of dividends. We historically have not allowed any Subsidiary Bank to pay dividends in such a manner as to impair its capital adequacy. We and the Subsidiary Banks are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on our consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, we must meet specific capital guidelines that involve quantitative measures of our assets, liabilities, and certain off-statement of condition items as calculated under regulatory accounting practices. Our capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Current quantitative measures established by regulation to ensure capital adequacy require us to maintain minimum amounts and ratios (set forth in the table on the following page) of Total and Tier 1 capital to risk-weighted assets and of Tier 1 capital to average assets. Management believes, as of December 31, 2023, that we met all capital adequacy requirements to which we are subject. In November 2017, the OCC, the FRB and the FDIC finalized a proposed rule that extends the current treatment under the regulatory capital rules for certain regulatory capital deductions and risk weights and certain minority interest requirements, as they apply to banking organizations that are not subject to the advanced approaches capital rules. Effective January 1, 2018, the rule also paused the full transition to the Basel III treatment of mortgage servicing assets, certain deferred tax assets, investments in the capital of unconsolidated financial institutions and minority interests. The agencies are also considering whether to make adjustments to the capital rules in response to CECL (the FASB Standard relating to current expected credit loss) and its potential impact on regulatory capital. Pursuant to rules issued by the federal bank regulatory agencies in February 2019 and March 2020, banking organizations were given options to phase in the adoption of CECL over a three-year transition period through December 31, 2022 or over a five-year transition period through December 31, 2024. Rather than electing to make one of the phase-in options, we immediately recognized the capital impact upon adopting CECL accounting standards on January 1, 2020, which resulted in an increase in our allowance for probable loan losses and a one-time cumulative-effect adjustment to retained earnings upon adoption. In December 2017, the Basel Committee on Banking Supervision unveiled its final set of standards and reforms to its Basel III regulatory capital framework, commonly called “Basel III Endgame” or “Basel IV.” The Basel IV framework makes changes to the capital framework first introduced as “Basel III” in 2010 and aim to reduce excessive variability in banks’ calculations of risk-weighted capital ratios. Implementation of Basel IV began on January 1, 2023 and will continue over a five-year transition period by regulators in individual countries, including the U.S. federal bank regulatory agencies (after notice and comment). On May 24, 2018, the Economic Growth, Regulatory Relief and Consumer Protection Act of 2018 (“EGRRCPA”) was enacted, and, among other things, it includes a simplified capital rule change which effectively exempts banks with assets of less than $10 billion that exceed the “community bank leverage ratio,” from all risk-based capital requirements, including Basel III and its predecessors. The federal banking agencies must establish the “community bank leverage ratio” (a ratio of tangible equity to average consolidated assets) between 8% and 10% before community banks can begin to take advantage of this regulatory relief provision. Some of the Subsidiary Banks, with assets of less than $10 billion, may qualify for this exemption. Additionally, under the EGRRCPA, qualified bank holding companies with assets of up to $3 billion (currently $1 billion) will be eligible for the Federal Reserve’s Small Bank Holding Company Policy Statement, which eases limitations on the issuance of debt by holding companies. On August 28, 2018, the Federal Reserve issued an interim final rule expanding the applicability of its Small Bank Holding Company Policy Statement. While holding companies that meet the conditions of the policy statement are excluded from consolidated capital requirements, their depository institutions continue to be subject to minimum capital requirements. Finally, for banks that continue to be subject to the risk-based capital rules of Basel III (e.g., 150%), certain commercial real estate loans that were formally classified as high volatility commercial real estate 31 (“HVCRE”) will not be subject to heightened risk weights if they meet certain criteria. Also, while acquisition, development, and construction loans will generally be subject to heightened risk weights, certain exceptions will apply. On September 18, 2018, the federal banking agencies issued a proposed rule modifying the agencies’ capital rules for HVCRE. For Capital Adequacy To Be Well-Capitalized Purposes Under Prompt Corrective Actual Phase In Schedule Action Provisions Amount Ratio Amount Ratio Amount Ratio (greater than (greater than (greater than (greater than or equal to) or equal to) or equal to) or equal to) (Dollars in Thousands) As of December 31, 2023: Common Equity Tier 1 (to Risk Weighted Assets): Consolidated $ 2,563,130 21.72 % $ 825,968 7.000 % N/A N/A International Bank of Commerce, Laredo 1,444,775 18.54 545,611 7.000 $ 506,639 6.50 % International Bank of Commerce, Brownsville 477,390 24.41 136,883 7.000 127,106 6.50 International Bank of Commerce, Oklahoma 232,965 20.72 78,718 7.000 73,095 6.50 Commerce Bank 97,334 36.57 18,628 7.000 17,298 6.50 International Bank of Commerce, Zapata 64,110 31.18 14,394 7.000 13,366 6.50 Total Capital (to Risk Weighted Assets): Consolidated $ 2,790,171 23.65 % $ 1,238,952 10.500 % N/A N/A International Bank of Commerce, Laredo 1,542,462 19.79 818,416 10.500 $ 779,444 10.00 % International Bank of Commerce, Brownsville 500,268 25.58 205,325 10.500 195,547 10.00 International Bank of Commerce, Oklahoma 247,031 21.97 118,076 10.500 112,454 10.00 Commerce Bank 100,660 37.82 27,943 10.500 26,612 10.00 International Bank of Commerce, Zapata 66,680 32.43 21,591 10.500 20,563 10.00 Tier 1 Capital (to Risk Weighted Assets): Consolidated $ 2,642,492 22.39 % $ 1,002,961 8.500 % N/A N/A International Bank of Commerce, Laredo 1,444,775 18.54 662,527 8.500 $ 623,555 8.00 % International Bank of Commerce, Brownsville 477,390 24.41 166,215 8.500 156,438 8.00 International Bank of Commerce, Oklahoma 232,965 20.72 95,586 8.500 89,963 8.00 Commerce Bank 97,334 36.57 22,620 8.500 21,290 8.00 International Bank of Commerce, Zapata 64,110 31.18 17,478 8.500 16,450 8.00 Tier 1 Capital (to Average Assets): Consolidated $ 2,642,492 17.46 % $ 605,262 4.00 % $ N/A N/A International Bank of Commerce, Laredo 1,444,775 16.40 352,412 4.00 440,515 5.00 % International Bank of Commerce, Brownsville 477,390 11.79 161,919 4.00 202,398 5.00 International Bank of Commerce, Oklahoma 232,965 14.72 63,294 4.00 79,117 5.00 Commerce Bank 97,334 14.50 26,858 4.00 33,572 5.00 International Bank of Commerce, Zapata 64,110 13.26 19,338 4.00 24,172 5.00 Our actual capital amounts and ratios for 2022 are also presented in the following table: To Be Well-Capitalized For Capital Adequacy Under Prompt Corrective Actual Purposes Action Provisions Amount Ratio Amount Ratio Amount Ratio (greater than (greater than (greater than (greater than or equal to) or equal to) or equal to) or equal to) (Dollars in Thousands) As of December 31, 2022: Common Equity Tier 1 (to Risk Weighted Assets): Consolidated $ 2,232,723 20.21 % $ 773,398 7.000 % N/A N/A International Bank of Commerce, Laredo 1,310,616 18.07 507,625 7.000 $ 471,366 6.50 % International Bank of Commerce, Oklahoma 363,093 20.86 121,855 7.000 113,151 6.50 International Bank of Commerce, Brownsville 232,689 21.17 76,941 7.000 71,445 6.50 International Bank of Commerce, Zapata 98,087 42.26 16,248 7.000 15,088 6.50 Commerce Bank 71,418 37.70 13,261 7.000 12,314 6.50 Total Capital (to Risk Weighted Assets): Consolidated $ 2,455,468 22.22 % $ 1,160,096 10.500 % N/A N/A % International Bank of Commerce, Laredo 1,401,298 19.32 761,438 10.500 $ 725,179 10.00 International Bank of Commerce, Oklahoma 383,804 22.05 182,782 10.500 174,078 10.00 International Bank of Commerce, Brownsville 243,739 22.18 115,412 10.500 109,916 10.00 International Bank of Commerce, Zapata 100,798 43.43 24,372 10.500 23,212 10.00 Commerce Bank 73,420 38.76 19,892 10.500 18,945 10.00 Tier 1 Capital (to Risk Weighted Assets): % Consolidated $ 2,324,903 21.04 % $ 939,126 8.500 % N/A N/A International Bank of Commerce, Laredo 1,310,616 18.07 616,402 8.500 $ 580,143 8.00 International Bank of Commerce, Oklahoma 363,093 20.86 147,966 8.500 139,262 8.00 International Bank of Commerce, Brownsville 232,689 21.17 93,429 8.500 87,933 8.00 International Bank of Commerce, Zapata 98,087 42.26 19,730 8.500 18,569 8.00 Commerce Bank 71,418 37.70 16,103 8.500 15,156 8.00 % Tier 1 Capital (to Average Assets): Consolidated $ 2,324,903 14.59 % $ 637,578 4.00 % $ N/A N/A International Bank of Commerce, Laredo 1,310,616 13.09 400,489 4.00 500,611 5.00 International Bank of Commerce, Oklahoma 363,093 8.95 162,246 4.00 202,808 5.00 International Bank of Commerce, Brownsville 232,689 13.48 69,028 4.00 86,286 5.00 International Bank of Commerce, Zapata 98,087 14.39 27,270 4.00 34,088 5.00 Commerce Bank 71,418 15.00 19,048 4.00 23,811 5.00 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Measurements | |
Fair Value Measurements | (20) Fair Value ASC Topic 820, “Fair Value Measurements and Disclosures” (“ASC 820”) defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements. ASC 820 applies to all financial instruments that are being measured and reported on a fair value basis. ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date; it also establishes a fair value hierarchy that prioritizes the inputs used in valuation methodologies into the following three levels: ● Level 1 Inputs—Unadjusted quoted prices in active markets for identical assets or liabilities. ● Level 2 Inputs—Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. ● Level 3 Inputs—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or other valuation techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy is set forth below. The following table represents financial instruments reported on the consolidated statements of condition at their fair value as of December 31, 2023 by level within the fair value measurement hierarchy. Fair Value Measurements at Reporting Date Using (in Thousands) Quoted Prices in Active Significant Assets/Liabilities Markets for Other Significant Measured at Identical Observable Unobservable Fair Value Assets Inputs Inputs December 31, 2023 (Level 1) (Level 2) (Level 3) Measured on a recurring basis: Assets: Available for sale debt securities Residential mortgage-backed securities $ 4,660,099 $ — $ 4,660,099 $ — States and political subdivisions 162,242 — 162,242 — Equity Securities 5,417 5,417 — — $ 4,827,758 $ 5,417 $ 4,822,341 $ — The following table represents financial instruments reported on the consolidated balance sheets at their fair value as of December 31, 2022 by level within the fair value measurement hierarchy. Fair Value Measurements at Reporting Date Using (in Thousands) Quoted Prices in Active Significant Assets/Liabilities Markets for Other Significant Measured at Identical Observable Unobservable Fair Value Assets Inputs Inputs December 31, 2022 (Level 1) (Level 2) (Level 3) Measured on a recurring basis: Assets: Available for sale securities U.S. Treasury securities $ 49,393 $ — $ 49,393 $ — Residential mortgage-backed securities 4,209,212 — 4,209,212 — States and political subdivisions 159,191 — 159,191 — Equity Securities 5,358 5,358 — — $ 4,423,154 $ 5,358 $ 4,417,796 $ — For the years ended December 31, 2023 and December 31, 2022, debt investment securities available-for-sale are classified within Level 2 of the valuation hierarchy. Equity securities with readily determinable fair values are classified within Level 1. For debt securities classified as Level 2 in the fair value hierarchy, we obtain fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information, and the bond’s terms and conditions, among other things. Certain financial instruments are measured at fair value on a nonrecurring basis. They are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). The following table represents financial instruments measured at fair value on a non-recurring basis as of and for the period ended December 31, 2023 by level within the fair value measurement hierarchy: Fair Value Measurements at Reporting Date Using (in thousands) Quoted Assets/Liabilities Prices in Measured at Active Significant Fair Value Markets for Other Significant Net Period ended Identical Observable Unobservable Provision December 31, Assets Inputs Inputs During 2023 (Level 1) (Level 2) (Level 3) Period Measured on a non-recurring basis: Assets: Watch-List doubtful loans $ 46,124 $ — $ — $ 46,124 $ 10,221 Other real estate owned 307 — — 307 2,538 The following table represents financial instruments measured at fair value on a non-recurring basis as of and for the year ended December 31, 2022 by level within the fair value measurement hierarchy: Fair Value Measurements at Reporting Date Using (in thousands) Quoted Assets/Liabilities Prices in Measured at Active Significant Fair Value Markets Other Significant Net Year ended for Identical Observable Unobservable Provision December 31, Assets Inputs Inputs During 2022 (Level 1) (Level 2) (Level 3) Period Measured on a non-recurring basis: Assets: Watch-List doubtful loans $ 30,743 $ — $ — $ 30,743 $ 2,346 Other real estate owned 5,653 — — 5,653 1,627 Our assets measured at fair value on a non-recurring basis are limited to loans classified as Watch List – Doubtful and other real estate owned. The fair value of Watch-List Doubtful loans is derived in accordance with FASB ASC 310, “Receivables”. They are primarily comprised of collateral-dependent commercial loans. As the primary sources of loan repayments decline, the secondary repayment source, the collateral, takes on greater significance. Correctly evaluating the fair value becomes even more important. Re-measurement of the loan to fair value is done through a specific valuation allowance included in the ACL. The fair value of the loan is based on the fair value of the collateral, as determined through either an appraisal or evaluation process. The basis for our appraisal and appraisal review process is based on regulatory guidelines and strives to comply with all regulatory appraisal laws, regulations, and the Uniform Standards of Professional Appraisal Practice. All appraisals and evaluations are “as is” (the property’s highest and best use) valuations based on the current conditions of the property/project at that point in time. The determination of the fair value of the collateral is based on the net realizable value, which is the appraised value less any closing costs, when applicable. As of December 31, 2023, we had approximately $46,491,000 of doubtful commercial collateral dependent loans, of which approximately $1,272,000 had an appraisal performed within the immediately preceding twelve months and of which approximately $35,061,000 had an evaluation performed within the immediately preceding twelve months. As of December 31, 2022, we had approximately $51,326,000 of doubtful commercial collateral dependent loans, of which approximately $0 had an appraisal performed within the immediately preceding twelve months and of which approximately $51,326,000 had an evaluation performed within the immediately preceding twelve months. The determination to either seek an appraisal or to perform an evaluation begins in weekly credit quality meetings, where the committee analyzes the existing collateral values of the doubtful loans and where obsolete appraisals are identified. In order to determine whether we would obtain a new appraisal or perform an internal evaluation to determine the fair value of the collateral, the credit committee reviews the existing appraisal to determine if the collateral value is reasonable in view of the current use of the collateral and the economic environment related to the collateral. If the analysis of the existing appraisal does not find that the collateral value is reasonable under the current circumstances, we would obtain a new appraisal on the collateral or perform an internal evaluation of the collateral. The ultimate decision to get a new appraisal rests with the independent credit administration group. A new appraisal is not required if an internal evaluation, as performed by in-house experts, is able to appropriately update the original appraisal assumptions to reflect current market conditions and provide an estimate of the collateral’s market value for impairment analysis. The internal evaluations must be in writing and contain sufficient information detailing the analysis, assumptions, and conclusions and they must support performing an evaluation in lieu of ordering a new appraisal. Other real estate owned is comprised of real estate acquired by foreclosure and deeds in lieu of foreclosure. Other real estate owned is carried at the lower of the recorded investment in the property or its fair value less estimated costs to sell such property (as determined by independent appraisal) within Level 3 of the fair value hierarchy. Prior to foreclosure, the value of the underlying loan is written down to the fair value of the real estate to be acquired by a charge to the ACL (formerly allowance for probable loan losses), if necessary. The fair value is reviewed periodically, and subsequent write downs are made accordingly through a charge to operations. Other real estate owned is included in other assets on the consolidated financial statements. For the twelve months ended December 31, 2023, 2022, and 2021, we recorded approximately $0, $2,000, and $2,000, respectively, in charges to the ACL in connection with loans transferred to other real estate owned. For the twelve months ended December 31, 2023, 2022, and 2021, we recorded approximately $2,538,000, $1,627,000, and $2,655,000, respectively, in adjustments to fair value in connection with other real estate owned. The fair value estimates, methods, and assumptions for our financial instruments at December 31, 2023 and December 31, 2022 are outlined below. Cash and Cash Equivalents For these short-term instruments, the carrying amount is a reasonable estimate of fair value. Investment securities held-to-maturity The carrying amounts of investments held-to-maturity approximate fair value. Investment Securities For debt investment securities, which may include U.S. Treasury securities, obligations of other U.S. government agencies, obligations of states and political subdivisions and mortgage pass through and related securities, fair values are from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things. See disclosures of fair value of investment securities in Note 2 – Investment Securities, Equity Securities with Readily Determinable Fair Values and Other Investments. Loans Fair values are estimated for portfolios of loans with similar financial characteristics. Loans are segregated by type such as commercial, real estate and consumer loans as outlined by regulatory reporting guidelines. Each category is segmented into fixed and variable interest rate terms and by performing and non-performing categories. For variable rate performing loans, the carrying amount approximates the fair value. For fixed rate performing loans, except residential mortgage loans, the fair value is calculated by discounting scheduled cash flows through the estimated maturity using estimated market discount rates that reflect the credit and interest rate risk inherent in the loan. For performing residential mortgage loans, fair value is estimated by discounting contractual cash flows adjusted for prepayment estimates using discount rates based on secondary market sources or the primary origination market. Fixed rate performing loans are within Level 3 of the fair value hierarchy. At December 31, 2023 and December 31, 2022, the carrying amount of fixed rate performing loans was $1,199,347,000 and $1,203,381,000, respectively, and the estimated fair value was $1,073,892,000 and $1,100,848,000, respectively. Accrued Interest The carrying amounts of accrued interest approximate fair value. Deposits The fair value of deposits with no stated maturity, such as non-interest bearing demand deposit accounts, savings accounts and interest-bearing demand deposit accounts, was equal to the amount payable on demand as of December 31, 2023 and December 31, 2022. The fair value of time deposits is based on the discounted value of contractual cash flows. The discount rate is based on currently offered rates. Time deposits are within Level 3 of the fair value hierarchy. At December 31, 2023 and December 31, 2022, the carrying amount of time deposits was $2,425,177,000 and $2,068,184,000, respectively, and the estimated fair value was $2,428,681,000 and $2,076,231,000, respectively. Securities Sold Under Repurchase Agreements Securities sold under repurchase agreements are short-term maturities. Due to the contractual terms of the instruments, the carrying amounts approximated fair value at December 31, 2023 and December 31, 2022. Junior Subordinated Deferrable Interest Debentures We currently have floating rate junior subordinated deferrable interest debentures outstanding. Due to the contractual terms of the floating rate junior subordinated deferrable interest debentures, the carrying amounts approximated fair value at December 31, 2023 and December 31, 2022. Other Borrowed Funds We currently have long-term borrowings issued from the Federal Home Loan Bank (“FHLB”). The long-term borrowings outstanding at December 31, 2023 and December 31, 2022 are fixed-rate borrowings and the fair value is based on established market spreads for similar types of borrowings. The fixed-rate long-term borrowings are included in Level 2 of the fair value hierarchy. At December 31, 2023 and December 31, 2022 the carrying amount of the fixed-rate long-term FHLB borrowings was $10,745,000 and $10,944,000, respectively, and the estimated fair value was $10,745,000 and $10,944,000, respectively. Commitments to Extend Credit and Letters of Credit Commitments to extend credit and fund letters of credit are principally at current interest rates and therefore the carrying amount approximates fair value. Limitations Fair value estimates are made at a point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time of our entire holdings of a particular financial instrument. Because no market exists for a significant portion of our financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair value estimates are based on existing on-and off-statement of condition financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. Other significant assets and liabilities that are not considered financial assets or liabilities include the bank premises and equipment and core deposit value. In addition, the tax ramifications related to the effect of fair value estimates have not been considered in the above estimates. |
International Bancshares Corpor
International Bancshares Corporation (Parent Company Only) Financial Information Statements of Condition | 12 Months Ended |
Dec. 31, 2023 | |
International Bancshares Corporation (Parent Company Only) Financial Information Statements of Condition | |
International Bancshares Corporation (Parent Company Only) Financial Information Statements of Condition | (21) International Bancshares Corporation (Parent Company Only) Financial Information Statements of Condition (Parent Company Only) December 31, 2023 and 2022 (Dollars in Thousands) 2023 2022 ASSETS Cash $ 105,184 $ 89,263 Other investments 111,382 114,901 Net loans 62,150 42,519 Investment in subsidiaries 2,281,952 1,933,269 Goodwill 3,365 3,365 Other assets 8,617 7,181 Total assets $ 2,572,650 $ 2,190,498 LIABILITIES AND SHAREHOLDERS’ EQUITY Liabilities: Junior subordinated deferrable interest debentures $ 108,868 $ 134,642 Due to IBC Trading 21 21 Other liabilities 15,987 11,076 Total liabilities 124,876 145,739 Shareholders’ equity: Common shares 96,467 96,420 Surplus 155,511 154,061 Retained earnings 3,029,088 2,695,567 Accumulated other comprehensive loss (397,889) (470,497) 2,883,177 2,475,551 Less cost of shares in treasury (435,403) (430,792) Total shareholders’ equity 2,447,774 2,044,759 Total liabilities and shareholders’ equity $ 2,572,650 $ 2,190,498 |
International Bancshares Corp_2
International Bancshares Corporation (Parent Company Only) Financial Information Statements of Income | 12 Months Ended |
Dec. 31, 2023 | |
International Bancshares Corporation (Parent Company Only) Financial Information Statements of Income | |
International Bancshares Corporation (Parent Company Only) Financial Information Statements of Income | (22) International Bancshares Corporation (Parent Company Only) Financial Information Statements of Income (Parent Company Only) Years ended December 31, 2023, 2022 and 2021 (Dollars in Thousands) 2023 2022 2021 Income: Dividends from subsidiaries $ 179,000 $ 222,175 $ 80,882 Interest income on notes receivable 5,769 2,394 1,139 (Loss) income on other investments (6,150) 8,662 9,662 Other 4 857 58 Total income 178,623 234,088 91,741 Expenses: Interest expense (Debentures) 8,122 5,037 2,792 Provision for credit loss 500 437 — Other 252 2,291 2,272 Total expenses 8,874 7,765 5,064 Income before federal income taxes and equity in undistributed net income of subsidiaries 169,749 226,323 86,677 Income tax (benefit) expense (1,365) 504 1,358 Income before equity in undistributed net income of subsidiaries 171,114 225,819 85,319 Equity in undistributed net income of subsidiaries 240,654 74,413 168,603 Net income $ 411,768 $ 300,232 $ 253,922 |
International Bancshares Corp_3
International Bancshares Corporation (Parent Company Only) Financial Information Statements of Cash Flows | 12 Months Ended |
Dec. 31, 2023 | |
International Bancshares Corporation (Parent Company Only) Financial Information Statements of Cash Flows | |
International Bancshares Corporation (Parent Company Only) Financial Information Statements of Cash Flows | (23) International Bancshares Corporation (Parent Company Only) Financial Information Statements of Cash Flows (Parent Company Only) Years ended December 31, 2023, 2022 and 2021 (Dollars in Thousands) 2023 2022 2021 Operating activities: Net income $ 411,768 $ 300,232 $ 253,922 Adjustments to reconcile net income to net cash provided by operating activities: Provision for credit loss 500 437 — Unrealized (gain) loss on equity securities with readily determinable fair values (14) 36 (51) Stock compensation expense 330 449 506 Increase (decrease) in other liabilities 4,911 1,743 (8,084) Equity in undistributed net income of subsidiaries (240,654) (74,413) (168,603) Net cash provided by operating activities 176,841 228,484 77,690 Investing activities: Net (increase) decrease in notes receivable (20,170) (32,556) 1,549 Increase in other assets and other investments (33,285) (43,343) (11,787) Net cash used in investing activities (53,455) (75,899) (10,238) Financing activities: Redemption of long-term debt (25,774) — — Proceeds from stock transactions 1,167 1,537 2,414 Payments of cash dividends - common (78,247) (75,375) (72,838) Purchase of treasury stock (4,611) (52,048) (716) Net cash used in financing activities (107,465) (125,886) (71,140) Increase (decrease) in cash 15,921 26,699 (3,688) Cash at beginning of year 89,263 62,564 66,252 Cash at end of year $ 105,184 $ 89,263 $ 62,564 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Summary of Significant Accounting Policies | |
Consolidation and Basis of Presentation | Consolidation and Basis of Presentation Our consolidated financial statements include the accounts of the International Bancshares Corporation, its wholly owned Subsidiary Banks and its wholly owned non-bank subsidiaries, IBC Trading Company, Premier Tierra Holdings, Inc., IBC Charitable and Community Development Corporation, IBC Capital Corporation and Diamond Beach Holdings, LLC. All significant inter-company balances and transactions have been eliminated in consolidation. We, through our Subsidiary Banks, are primarily engaged in the business of banking, including the acceptance of checking and savings deposits and the making of commercial, real estate, personal, home improvement, automobile, and other installment and term loans. Our primary markets are north, south, central, and southeast Texas and the state of Oklahoma. Each of our Subsidiary Banks is highly active in facilitating international trade along the United States border with Mexico and elsewhere. Although our loan portfolio is diversified, the ability of our debtors to honor their contracts is primarily dependent upon the economic conditions in our trade area. In addition, the investment portfolio is directly impacted by fluctuations in market interest rates. We are subject to the regulations of certain federal agencies as well as the Texas Department of Banking and the Oklahoma Department of Banking and undergo periodic examinations by those regulatory authorities. Such agencies may require certain standards or impose certain limitations based on their judgments or changes in law and regulations. We own one insurance-related subsidiary, IBC Insurance Agency, Inc., a wholly owned subsidiary of our Subsidiary Bank, International Bank of Commerce, Laredo. The insurance-related subsidiary does not conduct underwriting activities. The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the dates of the statement of condition and income and expenses for the periods. Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to significant changes in the near-term relate to the determination of the allowance for credit losses (“ACL”). |
Subsequent Events | Subsequent Events We have evaluated all events or transactions that occurred through the date we issued these financial statements. During this period, we did not have any material recognizable or non-recognizable subsequent events. |
Investment Securities | Investment Securities We classify debt securities into one of these categories: held-to-maturity, available-for-sale, or trading. Such classifications are reassessed for appropriate classification at each reporting date. Securities that are intended and expected to be held until maturity are classified as “held-to-maturity” and are carried at amortized cost for financial statement reporting. Securities that are not positively expected to be held until maturity but are intended to be held for an indefinite period of time are classified as “available-for-sale” or “trading” and are carried at their fair value. Unrealized holding gains and losses are included in net income for those securities classified as “trading,” while unrealized holding gains and losses related to those securities classified as “available-for-sale” are excluded from net income and reported net of tax as other comprehensive income (loss) and in shareholders’ equity as accumulated other comprehensive income (loss) until realized. Unrealized gains and losses related to equity securities with readily determinable fair values are included in net income. Available-for-sale and held-to-maturity debt securities in an unrealized loss position are evaluated for the underlying cause of the loss. In the event that the deterioration in value is attributable to credit related reasons, then the amount of credit-related impairment would be recorded as a charge to our ACL with subsequent changes in the amount of impairment, up or down, also recorded through our ACL. The exception to this process will occur if we intend to sell an impaired available- for-sale debt security or if we will more likely than not be required to sell a credit impaired available-for-sale debt security prior to the value recovering to the security’s amortized cost. In those situations, the entire credit-related impairment amount would be required to be recognized in earnings. We have evaluated the debt securities classified as available-for-sale and held-to-maturity at December 31, 2023 and have determined that no debt securities in an unrealized loss position are arising from credit related reasons and have therefore not recorded any allowances for debt securities in our ACL for the periods. We did not maintain any trading securities during the three-year period ended December 31, 2023. Mortgage-backed securities held at December 31, 2023 and 2022 represent participating interests in pools of long-term first mortgage loans originated and serviced by the issuers of the securities. Mortgage-backed securities are either issued or guaranteed by the U.S. government or its agencies including Freddie Mac, Fannie Mae, Ginnie Mae or other non-government entities. Investments in residential mortgage-backed securities issued by Ginnie Mae are fully guaranteed by the U. S. government. Investments in residential mortgage-backed securities issued by Freddie Mac and Fannie Mae are not fully guaranteed by the U.S. government; however, we believe that the quality of the bonds is similar to other AAA rated bonds with limited credit risk, particularly given the placement of Fannie Mae and Freddie Mac into conservatorship by the federal government in 2008 and because securities issued by others that are collateralized by residential mortgage-backed securities issued by Fannie Mae or Freddie Mac are rated consistently as AAA rated securities. Market interest rate fluctuations can affect the prepayment speed of principal and the yield on the security. Premiums and discounts are amortized using the level yield or “interest method” over the terms of the securities. Declines in the fair value of held-to-maturity and available-for sale-securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses. In determining whether other-than-temporary impairment exists, management considers many factors, including (i) the length of time and the extent to which the fair value has been less than cost, (ii) the financial condition and near-term prospects of the issuer, and (iii) our intent to hold and our determination of whether we will more likely than not be required to sell the security prior to a recovery in fair value. If we determine that (i) we intend to sell the security or (ii) it is more likely than not that we will be required to sell the security before it’s anticipated recovery, the other-than-temporary impairment that is recognized in earnings is equal to the difference between the fair value of the security and our amortized cost of the security. If we determine that we (i) do not intend to sell the security and (ii) we will not be more likely than not required to sell the security before it’s anticipated recovery, the other-than-temporary impairment is segregated into its two components (i) the amount of impairment related to credit loss and (ii) the amount of impairment related to other factors. The difference between the present value of the cash flows expected to be collected and the amortized cost is the credit loss recognized through earnings and an adjustment to the cost basis of the security. The amount of impairment related to other factors is included in other comprehensive income (loss). Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. |
Equity Securities | Equity Securities |
Loans, Provisions and Allowances for Credit Losses and Doubtful Loans | Provision and Allowance for Credit Losses Our ACL is based on an expected credit loss model that recognizes credit losses over the life of a financial asset. Expected credit losses capture historical information, current conditions, and reasonable and supportable forecasts of future conditions. The ACL is deducted from the amortized cost of an instrument to present the net amount expected to be collected on the financial asset. Our ACL primarily consists of the aggregate ACL estimates of our Subsidiary Banks. The estimates are established through charges to operations in the form of charges to provisions for credit loss expense. Loan losses or recoveries are charged or credited directly to the ACL. The ACL of each Subsidiary Bank is maintained at a level considered appropriate by management, based on estimated current expected credit losses in the current loan portfolio, including information about past events, current conditions, and reasonable and supportable forecasts. Our management continually reviews the ACL of the Subsidiary Banks using the amounts determined from the estimates established on specific doubtful loans, the estimate established on quantitative historical loss percentages, and the estimate based on qualitative current conditions and reasonable and supportable two-year forecasted data. Our methodology reverts to the average lifetime loss-rate beyond the forecast period when we can no longer develop reasonable and supportable forecasts. Should any of the factors considered by management in evaluating the adequacy of the estimate for current expected credit losses change, our estimate of current expected credit losses could also change, which could affect the level of future credit loss expense. While the calculation of our ACL utilizes management’s best judgment and all information reasonably available, the adequacy of the ACL is dependent on a variety of factors beyond our control, including, among other things, the performance of the entire loan portfolio, the economy, government actions, changes in interest rates, and the view of regulatory authorities towards loan classifications. We believe that the allowance for probable loan losses is adequate. The Subsidiary Banks charge-off that portion of any loan which management considers to represent a loss as well as that portion of any other loan which is classified as a “loss” by bank examiners. Commercial, financial, and agricultural or real estate loans are generally considered by management to represent a loss, in whole or part, (i) when an exposure beyond any collateral coverage is apparent, (ii) when no further collection of the portion of the loan so exposed is anticipated based on actual results, (iii) when the credit enhancements, if any, are not adequate, and (iv) when the borrower’s financial condition would indicate so. Generally, unsecured consumer loans are charged-off when 90 days past due. Loans Loans are reported at the principal balance outstanding, net of unearned discounts. Interest income on loans is reported on an accrual basis. Loan fees and costs associated with originating the loans are accreted or amortized over the life of the loan using the interest method. We originate mortgage loans that may subsequently be sold to an unaffiliated third party. The loans are not securitized and if sold, are sold without recourse. Loans held for sale are carried at cost and the principal amount outstanding is not significant to the consolidated financial statements. Doubtful Loans Doubtful loans are those loans where it is probable that all amounts due according to contractual terms of the loan agreement will not be collected. Doubtful loans are measured based on (i) the present value of expected future cash flows discounted at the loan’s effective interest rate; (ii) the loan’s observable market price; or (iii) the fair value of the collateral if the loan is collateral dependent. Substantially all our doubtful loans are measured at the fair value of the collateral. In limited cases, we may use other methods to determine the level of impairment of a loan if such loan is not collateral dependent. Troubled Loan Modifications |
Non-Accrual Loans | Non-Accrual Loans The non-accrual loan policy of our Subsidiary Banks is to discontinue the accrual of interest on loans when management determines that it is probable that future interest accruals will be un-collectible. As it relates to consumer loans, management charges-off those loans when the loan is contractually 90 days past due. Under special circumstances, a consumer or non-consumer loan may be more than 90 days delinquent as to interest or principal and not be placed on non-accrual status. This situation generally results when a Subsidiary Bank has a borrower who is experiencing financial difficulties, but not to the extent that requires a restructuring of indebtedness. The majority of this category is composed of loans that are considered to be adequately secured and/or for which there are expected future payments. When a loan is placed on non-accrual status, any interest accrued, not paid is reversed and charged to operations against interest income. As it relates to non-consumer loans that are not 90 days past due, management will evaluate each of these loans to determine if placing the loan on non-accrual status is warranted. Interest income on non-accrual loans is recognized only to the extent payments are received or when, in management’s opinion, the debtor’s financial condition warrants reestablishment of interest accruals. |
Other Real Estate Owned and Repossessed Assets | Other Real Estate Owned and Repossessed Assets Other real estate owned is comprised of real estate acquired by foreclosure and deeds in lieu of foreclosure. Other real estate is carried at the lower of the recorded investment in the property or its fair value less estimated costs to sell such property (as determined by independent appraisal). Prior to foreclosure, the value of the underlying loan is written down to the fair value of the real estate to be acquired by a charge to the ACL, if necessary. Any subsequent write-downs are charged against other non-interest expense through a valuation allowance. Other real estate owned totaled approximately $26,728,000 and $30,144,000 at December 31, 2023 and 2022, respectively. Other real estate owned is included in other assets. Repossessed assets consist primarily of non-real estate assets acquired by foreclosure. Prior to foreclosure, the value of the underlying loan is written down to the fair value of the asset to be repossessed by a charge to the ACL, if necessary. Repossessed assets are included in other assets on the consolidated financial statements and totaled approximately $236,000 and $4,637,000 at December 31, 2023 and 2022, respectively. |
Bank Premises and Equipment | Bank Premises and Equipment Bank premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed on straight-line and accelerated methods over the estimated useful lives of the assets. Repairs and maintenance are charged to operations as incurred and expenditures for renewals and betterments are capitalized. We primarily own all the property we occupy, with the exception of certain branches operating in grocery store or retail shopping centers and certain ATM locations, which are all under operating leases as classified under guidance prior to the issuance of ASU 2016-02, “Leases (Topic 842).” |
Other Investments | Other Investments Other investments include equity investments in non-financial companies, as well as equity securities with no readily determinable fair market value. Equity investments are accounted for using the equity method of accounting. Equity securities with no readily determinable fair value are accounted for using the cost method. |
Revenue recognition | Revenue Recognition |
Income Taxes | Income Taxes Deferred income tax assets and liabilities are determined using the asset and liability method. Under this method, the net deferred tax asset or liability is determined based on the tax effects of the differences between the book and tax basis of the various balance sheet assets and liabilities and gives current recognition to changes in tax rates and laws. We file a consolidated federal income tax return with our subsidiaries. Recognition of deferred tax assets is based on management’s assessment that the benefit related to certain temporary differences, tax operating loss carry forwards, and tax credits are more likely than not to be realized. A valuation allowance is recorded for the amount of the deferred tax items for which it is more likely than not that the tax benefits will not be realized. We evaluate uncertain tax positions at the end of each reporting period. We may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefit recognized in the financial statements from any such a position is measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. As of December 31, 2023 and 2022, respectively, after evaluating all uncertain tax positions, we have recorded no liability for unrecognized tax benefits at the end of the reporting period. We would recognize any interest accrued on unrecognized tax benefits as other interest expense and penalties as other non-interest expense. During the years ended December 31, 2023, 2022, and 2021, we recognized no interest expense or penalties related to uncertain tax positions. We file consolidated tax returns in the U.S. federal jurisdiction and various state jurisdictions. We are no longer subject to U.S. federal or state income tax examinations by tax authorities for years before 2020. |
Stock Options and Stock Appreciation Rights | Stock Options and Stock Appreciation Rights Compensation expense for stock-based awards is based on the market price of the stock on the measurement date, which is generally the date of grant, and is recognized ratably over the service period of the award. The fair value of stock options and stock appreciation rights granted was estimated using a Black-Scholes-Merton pricing model. These models were developed for use in estimating the fair value of publicly traded options and stock appreciation rights that have no vesting restrictions and are fully transferable. Additionally, these models require the input of highly subjective assumptions. Because our employee stock options and stock appreciation rights have characteristics significantly different from those of publicly traded options and appreciation rights, and because changes in the subjective input assumptions can materially affect the fair value estimate, in management’s opinion, the Black-Scholes-Merton pricing models do not necessarily provide a reliable single measure of the fair value of our stock options and stock appreciation rights. |
Net Income Per Share | Net Income Per Share Basic Earnings Per Share (“EPS”) is calculated by dividing net income by the weighted average number of common shares outstanding. The computation of diluted EPS assumes the issuance of common shares for all dilutive potential common shares outstanding during the reporting period. The dilutive effect of stock options is considered in earnings per share calculations, if dilutive, using the treasury stock method. |
Goodwill and Identified Intangible Assets | Goodwill and Identified Intangible Assets Goodwill represents the excess of costs over fair value of assets of businesses acquired. Goodwill is tested for impairment at least annually or on an interim basis if an event triggering impairment may have occurred. As of October 1, 2023, after completing goodwill testing, we have determined that no goodwill impairment exists. Identified intangible assets are acquired assets that lack physical substance but can be distinguished from goodwill because of contractual or other legal rights or because the asset is capable of being sold or exchanged either on its own or in combination with a related contract, asset, or liability. Our identified intangible assets relate to core deposits and contract rights. As of December 31, 2023, we have determined that no impairment of identified intangibles exists. Identified intangible assets with definite useful lives are amortized on an accelerated basis over their estimated life. See Note 6—Goodwill and Other Intangible Assets. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Long-lived assets, such as property, plant, and equipment, and purchased intangibles subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying value of the asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying value of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying value of the asset exceeds the fair value of the asset. Assets to be disposed of would be separately presented in the statement of condition and reported at the lower of the carrying value or fair value less costs to sell and are no longer depreciated. The assets and liabilities of a disposed group classified as held for sale would be presented separately in the appropriate asset and liability sections of the statement of condition. |
Consolidated Statements of Cash Flows | Consolidated Statements of Cash Flows For purposes of the consolidated statements of cash flows, we consider all short-term investments with a maturity at date of purchase of three months or less to be cash equivalents. Also, we report transactions related to deposits and loans to customers on a net basis. |
Accounting for Transfers and Servicing of Financial Assets | Accounting for Transfers and Servicing of Financial Assets We account for transfers and servicing of financial assets and extinguishments of liabilities based on the application of a financial-components approach that focuses on control. After a transfer of financial assets, we recognize the financial and servicing assets we control and liabilities we have incurred, derecognize financial assets when control has been surrendered and derecognize liabilities when extinguished. We have retained mortgage servicing rights in connection with the sale of mortgage loans. Because we may not initially identify loans as originated for resale, all loans are initially treated as held for investment. The value of the mortgage servicing rights are reviewed periodically for impairment and are amortized in proportion to, and over the period of estimated net servicing income or net servicing losses. The value of the mortgage servicing rights is not significant to the consolidated statements of condition. |
Segments of an Enterprise and Related Information | Segments of an Enterprise and Related Information We operate as one segment. The operating information used by our chief executive officer for purposes of assessing performance and making operating decisions is the consolidated financial statements presented in this report. We have five active operating subsidiaries, namely, the Subsidiary Banks. We apply the provisions of ASC Topic 280, “Segment Reporting,” in determining our reportable segments and related disclosures. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) consists of net income and other comprehensive income (loss). Other comprehensive income (loss) includes unrealized gains and losses on securities available for sale. |
Advertising | Advertising Advertising costs are expensed as incurred. |
Reclassifications | Reclassifications Certain amounts in the prior year’s presentations have been reclassified to conform to the current presentation. These reclassifications had no effect on previously reported net income or shareholders’ equity. |
New Accounting Standards | New Accounting Standards In December 2019, the FASB issued Accounting Standards Update No. 2019-12, to ASC 740, “Income Taxes.” The update amends existing guidance with the intention of simplifying the accounting for income taxes. Specifically, the update removes some exceptions in existing guidance around intraperiod tax allocations, recognition of deferred tax liabilities for certain changes in investments in foreign subsidiaries and to the general methodology for calculating taxes on interim periods when year to date losses exceed the anticipated loss for the year. Additionally, the update clarifies and provides more guidance with respect to the classification of franchise or similar taxes, requirements to evaluate when a step up in the tax basis of goodwill should be considered, eliminates the requirement that a consolidated entity allocate a portion of current and deferred tax expense to a legal entity that is not subject to tax, requires that an entity reflect the effect of changes in tax laws and tax rates in the effective tax rate computed in the interim period that includes the enactment date and makes minor changes for taxes related to employee stock ownership plans and investments in qualified affordable housing projects accounted for using the equity method. The update is effective for fiscal years beginning after December 15, 2020. The adoption of the update did not have a significant impact on our consolidated financial statements. investments in leases. We adopted the provisions of ASU 2022-02 on January 1, 2023 and it did not have a significant impact on our consolidated financial statements. |
Investment Securities, Equity_2
Investment Securities, Equity Securities with Readily Determinable Fair Values and Other Investments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Investment Securities, Equity Securities with Readily Determinable Fair Values and Other Investments | |
Amortized cost and estimated fair value by type of investment security | The amortized cost and estimated fair value by type of investment security at December 31, 2023 are as follows: Held to Maturity Gross Gross Amortized unrealized unrealized Estimated Carrying cost gains losses fair value value (Dollars in Thousands) Other securities $ 3,400 $ — $ — $ 3,400 $ 3,400 Total investment securities $ 3,400 $ — $ — $ 3,400 $ 3,400 Available for Sale Debt Securities Gross Gross Amortized unrealized unrealized Estimated Carrying cost gains losses fair value value (1) (Dollars in Thousands) Residential mortgage-backed securities $ 5,169,813 $ 9,541 $ (519,255) $ 4,660,099 $ 4,660,099 Obligations of states and political subdivisions 161,001 1,602 (361) 162,242 162,242 Total investment securities $ 5,330,814 $ 11,143 $ (519,616) $ 4,822,341 $ 4,822,341 (1) Included in the carrying value of residential mortgage- backed securities are $959,421 of mortgage-backed securities issued by Ginnie Mae and $3,700,678 of mortgage-backed securities issued by Fannie Mae and Freddie Mac The amortized cost and estimated fair value by type of investment security at December 31, 2022 are as follows: Held to Maturity Gross Gross Amortized unrealized unrealized Estimated Carrying cost gains losses fair value value (Dollars in Thousands) Other securities $ 3,400 $ — $ — $ 3,400 $ 3,400 Total investment securities $ 3,400 $ — $ — $ 3,400 $ 3,400 Available for Sale Gross Gross Estimated Amortized unrealized unrealized fair Carrying cost gains losses value value (1) (Dollars in Thousands) U.S. Treasury securities $ 49,752 $ — $ (359) $ 49,393 $ 49,393 Residential mortgage-backed securities 4,805,735 3,145 (599,668) 4,209,212 4,209,212 Obligations of states and political subdivisions 163,509 927 (5,245) 159,191 159,191 Total investment securities $ 5,018,996 $ 4,072 $ (605,272) $ 4,417,796 $ 4,417,796 (1) Included in the carrying value of residential mortgage- backed securities are $681,121 of mortgage-backed securities issued by Ginnie Mae, $3,528,091 of mortgage-backed securities issued by Fannie Mae and Freddie Mac |
Amortized cost and fair value of investment securities, by contractual maturity | Held to Maturity Available for Sale Amortized Estimated Amortized Estimated Cost fair value Cost fair value (Dollars in Thousands) Due in one year or less $ 2,075 $ 2,075 $ — $ — Due after one year through five years 1,325 1,325 — — Due after five years through ten years — — 440 440 Due after ten years — — 160,561 161,802 Residential mortgage-backed securities — — 5,169,813 4,660,099 Total investment securities $ 3,400 $ 3,400 $ 5,330,814 $ 4,822,341 |
Gross unrealized losses on investment securities and the related fair value | Gross unrealized losses on investment securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2023 were as follows: Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses (Dollars in Thousands) Available for sale: Residential mortgage-backed securities $ 577,448 $ (8,267) $ 3,456,349 $ (510,988) $ 4,033,797 $ (519,255) Obligations of states and political subdivisions 651 (1) 64,373 (360) 65,024 (361) $ 578,099 $ (8,268) $ 3,520,722 $ (511,348) $ 4,098,821 $ (519,616) Gross unrealized losses on investment securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous loss position, at December 31, 2022 were as follows: Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses (Dollars in Thousands) Available for sale: U.S. Treasury securities $ 49,394 $ (359) $ — $ — $ 49,394 $ (359) Residential mortgage-backed securities 1,357,905 (87,815) 2,566,975 (511,853) 3,924,880 (599,668) Obligations of states and political subdivisions 118,772 (5,245) — — 118,772 (5,245) $ 1,526,071 $ (93,419) $ 2,566,975 $ (511,853) $ 4,093,046 $ (605,272) |
Summary of unrealized and realized gains and losses recognized in net income on equity securities | Year Ended December 31, 2023 (Dollars in Thousands) Net gains recognized during the period on equity securities $ 59 Less: Net gains and (losses) recognized during the period on equity securities sold during the period — Unrealized gains recognized during the reporting period on equity securities still held at the reporting date $ 59 Year Ended December 31, 2022 (Dollars in Thousands) Net losses recognized during the period on equity securities $ (721) Less: Net gains and (losses) recognized during the period on equity securities sold during the period — Unrealized losses recognized during the reporting period on equity securities still held at the reporting date $ (721) Year Ended December 31, 2021 (Dollars in Thousands) Net losses recognized during the period on equity securities $ (123) Less: Net gains and (losses) recognized during the period on equity securities sold during the period — Unrealized losses recognized during the reporting period on equity securities still held at the reporting date $ (123) |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Loans | |
Summary of loans, by loan type | December 31, December 31, 2023 2022 (Dollars in Thousands) Commercial, financial and agricultural $ 4,802,622 $ 4,373,373 Real estate - mortgage 938,901 865,994 Real estate - construction 2,091,622 1,989,669 Consumer 45,121 41,592 Foreign 180,695 159,975 Total loans $ 8,058,961 $ 7,430,603 |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Allowance for Credit Losses | |
Loans individually or collectively evaluated for their impairment and related allowance, by loan class | December 31, 2023 Domestic Foreign Commercial real estate: other Commercial construction & real estate: Commercial land farmland & real estate: Residential: Residential: Commercial development commercial multifamily first lien junior lien Consumer Foreign Total (Dollars in Thousands) Balance at December 31, 2022 $ 26,728 $ 44,684 $ 36,474 $ 3,794 $ 4,759 $ 8,284 $ 281 $ 968 $ 125,972 Losses charged to allowance (9,664) — — — (43) (298) (179) — (10,184) Recoveries credited to allowance 5,433 837 143 — 16 260 16 — 6,705 Net losses charged to allowance (4,231) 837 143 — (27) (38) (163) — (3,479) Provision (credit) charged to operations 13,053 9,770 6,086 1,294 1,080 2,778 200 315 34,576 Balance at December 31, 2023 $ 35,550 $ 55,291 $ 42,703 $ 5,088 $ 5,812 $ 11,024 $ 318 $ 1,283 $ 157,069 December 31, 2022 Domestic Foreign Commercial real estate: other Commercial construction & real estate: Commercial land farmland & real estate: Residential: Residential: Commercial development commercial multifamily first lien junior lien Consumer Foreign Total (Dollars in Thousands) Balance at December 31, 2021 $ 23,178 $ 35,390 $ 35,654 $ 3,291 $ 4,073 $ 7,754 $ 272 $ 762 $ 110,374 Losses charged to allowance (9,050) (2) (16) — (160) (28) (223) — (9,479) Recoveries credited to allowance 2,894 123 27 — 240 104 38 — 3,426 Net losses charged to allowance (6,156) 121 11 — 80 76 (185) — (6,053) Provision (credit) charged to operations 9,706 9,173 809 503 606 454 194 206 21,651 Balance at December 31, 2022 $ 26,728 $ 44,684 $ 36,474 $ 3,794 $ 4,759 $ 8,284 $ 281 $ 968 $ 125,972 December 31, 2021 Domestic Foreign Commercial real estate: other Commercial construction & real estate: Commercial land farmland & real estate: Residential: Residential: Commercial development commercial multifamily first lien junior lien Consumer Foreign Total (Dollars in Thousands) Balance at December 31, 2020 $ 21,908 $ 37,612 $ 30,000 $ 5,051 $ 3,874 $ 9,570 $ 291 $ 753 $ 109,059 Losses charged to allowance (8,083) (2) (364) — (373) (25) (176) (1) (9,024) Recoveries credited to allowance 1,943 — 171 — 60 164 46 — 2,384 Net losses charged to allowance (6,140) (2) (193) — (313) 139 (130) (1) (6,640) Provision (credit) charged to operations 7,410 (2,220) 5,847 (1,760) 512 (1,955) 111 10 7,955 Balance at December 31, 2021 $ 23,178 $ 35,390 $ 35,654 $ 3,291 $ 4,073 $ 7,754 $ 272 $ 762 $ 110,374 December 31, 2023 Loans Individually Loans Collectively Evaluated For Evaluated For Impairment Impairment Recorded Recorded Investment Allowance Investment Allowance (Dollars in Thousands) Domestic Commercial $ 30,872 $ 7,971 $ 1,597,358 $ 27,579 Commercial real estate: other construction & land development 15,701 4,320 2,075,921 50,971 Commercial real estate: farmland & commercial 299 — 2,793,254 42,703 Commercial real estate: multifamily 96 — 380,743 5,088 Residential: first lien 93 — 477,940 5,812 Residential: junior lien — — 460,868 11,024 Consumer — — 45,121 318 Foreign — — 180,695 1,283 Total $ 47,061 $ 12,291 $ 8,011,900 $ 144,778 December 31, 2022 Loans Individually Loans Collectively Evaluated For Evaluated For Impairment Impairment Recorded Recorded Investment Allowance Investment Allowance (Dollars in Thousands) Domestic Commercial $ 30,747 $ 2,375 $ 1,468,006 $ 24,353 Commercial real estate: other construction & land development 20,483 70 1,969,186 44,614 Commercial real estate: farmland & commercial 94 — 2,568,025 36,474 Commercial real estate: multifamily 117 — 306,384 3,794 Residential: first lien 77 — 425,647 4,759 Residential: junior lien 312 — 439,958 8,284 Consumer — — 41,592 281 Foreign — — 159,975 968 Total $ 51,830 $ 2,445 $ 7,378,773 $ 123,527 |
Loans accounted on non-accrual basis, by loan class | December 31, 2023 December 31, 2022 (Dollars in Thousands) Domestic Commercial $ 30,872 $ 30,747 Commercial real estate: other construction & land development 15,701 20,483 Commercial real estate: farmland & commercial 299 94 Commercial real estate: multifamily 96 117 Residential: first lien 202 207 Total non-accrual loans $ 47,170 $ 51,648 |
Loans accounted for as trouble debt restructuring, by loan class | December 31, 2022 (Dollars in Thousands) Domestic Residential: first lien $ 1,642 Residential: junior lien 714 Consumer 802 Foreign 55 Total troubled debt restructuring $ 3,213 |
Information regarding the aging of past due loans, by loan class | December 31, 2023 90 Days or Total 30 - 59 60 - 89 90 Days or greater & Past Total Days Days Greater still accruing Due Current Portfolio (Dollars in Thousands) Domestic Commercial $ 2,387 $ 1,583 $ 30,238 $ 539 $ 34,208 $ 1,594,022 $ 1,628,230 Commercial real estate: other construction & land development 3,460 — 10,245 — 13,705 2,077,917 2,091,622 Commercial real estate: farmland & commercial 1,424 371 93 4 1,888 2,791,665 2,793,553 Commercial real estate: multifamily 369 330 — — 699 380,140 380,839 Residential: first lien 1,812 1,439 2,545 2,437 5,796 472,236 478,032 Residential: junior lien 1,273 613 1,701 1,701 3,587 457,282 460,869 Consumer 263 11 27 27 301 44,820 45,121 Foreign 1,884 848 889 889 3,621 177,074 180,695 Total past due loans $ 12,872 $ 5,195 $ 45,738 $ 5,597 $ 63,805 $ 7,995,156 $ 8,058,961 December 31, 2022 90 Days or Total 30 - 59 60 - 89 90 Days or greater & Past Total Days Days Greater still accruing Due Current Portfolio (Dollars in Thousands) Domestic Commercial $ 1,732 $ 258 $ 1,014 $ 59 $ 3,004 $ 1,495,750 $ 1,498,754 Commercial real estate: other construction & land development 1,130 — — — 1,130 1,988,539 1,989,669 Commercial real estate: farmland & commercial 1,744 117 — — 1,861 2,566,257 2,568,118 Commercial real estate: multifamily — — — — — 306,501 306,501 Residential: first lien 2,023 1,068 4,189 4,061 7,280 418,444 425,724 Residential: junior lien 925 771 1,717 1,717 3,413 436,857 440,270 Consumer 281 14 7 7 302 41,290 41,592 Foreign 717 23 288 288 1,028 158,947 159,975 Total past due loans $ 8,552 $ 2,251 $ 7,215 $ 6,132 $ 18,018 $ 7,412,585 $ 7,430,603 |
Summary of the loan portfolio by credit quality indicator, by loan class | 2023 2022 2021 2020 2019 Prior Total (Dollars in Thousands) Balance at December 31, 2023 Domestic Commercial Pass $ 791,233 $ 272,919 $ 364,271 $ 50,602 $ 21,468 $ 74,119 $ 1,574,612 Special Review 7,613 1,800 164 — — — 9,577 Watch List - Pass 11,865 — — — — — 11,865 Watch List - Substandard 1,180 92 28 — — 4 1,304 Watch List - Doubtful 27 30,810 35 — — — 30,872 Total Commercial $ 811,918 $ 305,621 $ 364,498 $ 50,602 $ 21,468 $ 74,123 $ 1,628,230 Commercial Current-period gross writeoffs $ 7,053 $ 2,187 $ 155 $ 264 $ 2 $ 3 $ 9,664 Commercial real estate: other construction & land development Pass $ 938,739 $ 674,037 $ 324,238 $ 96,400 $ 14,058 $ 3,219 $ 2,050,691 Watch List - Substandard 25,230 — — — — — 25,230 Watch List - Doubtful 2,726 12,975 — — — — 15,701 Total Commercial real estate: other construction & land development $ 966,695 $ 687,012 $ 324,238 $ 96,400 $ 14,058 $ 3,219 $ 2,091,622 Commercial real estate: other construction & land development Commercial real estate: farmland & commercial Pass $ 888,878 $ 628,653 $ 415,458 $ 267,705 $ 184,164 $ 248,626 $ 2,633,484 Special Review 5,205 — 3,357 — — — 8,562 Watch List - Pass 16,654 87 233 — — — 16,974 Watch List - Substandard 129,644 2,201 — 2,304 84 1 134,234 Watch List - Doubtful 211 88 — — — — 299 Total Commercial real estate: farmland & commercial $ 1,040,592 $ 631,029 $ 419,048 $ 270,009 $ 184,248 $ 248,627 $ 2,793,553 Commercial real estate: farmland & commercial Commercial real estate: multifamily Pass $ 123,523 $ 94,551 $ 42,081 $ 73,652 $ 10,743 $ 36,193 $ 380,743 Watch List - Doubtful — 96 — — — — 96 Total Commercial real estate: multifamily $ 123,523 $ 94,647 $ 42,081 $ 73,652 $ 10,743 $ 36,193 $ 380,839 Commercial real estate: multifamily Residential: first lien Pass $ 180,127 $ 83,568 $ 68,082 $ 39,935 $ 27,499 $ 78,306 $ 477,517 Watch List - Substandard — — 327 — — 95 422 Watch List - Doubtful — 93 — — — — 93 Total Residential: first lien $ 180,127 $ 83,661 $ 68,409 $ 39,935 $ 27,499 $ 78,401 $ 478,032 Residential: first lien Current-period gross writeoffs $ — $ — $ — $ — $ — $ 43 $ 43 Residential: junior lien Pass $ 88,628 $ 76,845 $ 96,411 $ 76,490 $ 34,870 $ 87,625 $ 460,869 Total Residential: junior lien $ 88,628 $ 76,845 $ 96,411 $ 76,490 $ 34,870 $ 87,625 $ 460,869 Residential: junior lien Current-period gross writeoffs $ — $ — $ — $ — $ — $ 298 $ 298 Consumer Pass $ 36,639 $ 5,366 $ 1,043 $ 237 $ 157 $ 1,679 $ 45,121 Total Consumer $ 36,639 $ 5,366 $ 1,043 $ 237 $ 157 $ 1,679 $ 45,121 Consumer Current-period gross writeoffs $ 54 $ 115 $ 9 $ — $ 1 $ — $ 179 Foreign Pass $ 116,104 $ 43,842 $ 12,317 $ 2,016 $ 2,797 $ 3,619 $ 180,695 Total Foreign $ 116,104 $ 43,842 $ 12,317 $ 2,016 $ 2,797 $ 3,619 $ 180,695 Total Loans $ 3,364,226 $ 1,928,023 $ 1,328,045 $ 609,341 $ 295,840 $ 533,486 $ 8,058,961 2022 2021 2020 2019 2018 Prior Total (Dollars in Thousands) Balance at December 31, 2022 Domestic Commercial Pass $ 736,462 $ 524,879 $ 96,401 $ 35,917 $ 43,792 $ 29,464 $ 1,466,915 Special Review 377 213 — — — — 590 Watch List - Substandard 161 149 143 — 49 — 502 Watch List - Doubtful 29,789 — 954 — — 4 30,747 Total Commercial $ 766,789 $ 525,241 $ 97,498 $ 35,917 $ 43,841 $ 29,468 $ 1,498,754 Commercial Commercial real estate: other construction & land development Pass $ 913,675 $ 666,347 $ 173,824 $ 174,897 $ 35,069 $ 5,165 $ 1,968,977 Special Review — — — 209 — — 209 Watch List - Doubtful 19,982 407 94 — — — 20,483 Total Commercial real estate: other construction & land development $ 933,657 $ 666,754 $ 173,918 $ 175,106 $ 35,069 $ 5,165 $ 1,989,669 Commercial real estate: farmland & commercial Pass $ 811,117 $ 584,134 $ 456,200 $ 232,537 $ 325,214 $ 81,295 $ 2,490,497 Special Review 2,855 — 842 — — — 3,697 Watch List - Pass 17,060 247 — — — — 17,307 Watch List - Substandard 2,275 — 54,152 96 — — 56,523 Watch List - Doubtful 94 — — — — — 94 Total Commercial real estate: farmland & commercial $ 833,401 $ 584,381 $ 511,194 $ 232,633 $ 325,214 $ 81,295 $ 2,568,118 Commercial real estate: multifamily Pass $ 127,680 $ 87,469 $ 59,035 $ 12,026 $ 5,490 $ 14,684 $ 306,384 Watch List - Doubtful 117 — — — — — 117 Total Commercial real estate: multifamily $ 127,797 $ 87,469 $ 59,035 $ 12,026 $ 5,490 $ 14,684 $ 306,501 Residential: first lien Pass $ 138,771 $ 82,466 $ 49,591 $ 40,985 $ 33,814 $ 79,660 $ 425,287 Watch List - Substandard — 360 — — — — 360 Watch List - Doubtful 77 — — — — — 77 Total Residential: first lien $ 138,848 $ 82,826 $ 49,591 $ 40,985 $ 33,814 $ 79,660 $ 425,724 Residential: junior lien Pass $ 92,256 $ 108,815 $ 91,130 $ 41,273 $ 21,975 $ 84,509 $ 439,958 Watch List- Doubtful — 312 — — — — 312 Total Residential: junior lien $ 92,256 $ 109,127 $ 91,130 $ 41,273 $ 21,975 $ 84,509 $ 440,270 Consumer Pass $ 31,962 $ 6,603 $ 897 $ 489 $ 28 $ 1,613 $ 41,592 Total Consumer $ 31,962 $ 6,603 $ 897 $ 489 $ 28 $ 1,613 $ 41,592 Foreign Pass $ 124,265 $ 19,082 $ 5,362 $ 4,848 $ 3,417 $ 3,001 $ 159,975 Total Foreign $ 124,265 $ 19,082 $ 5,362 $ 4,848 $ 3,417 $ 3,001 $ 159,975 Total Loans $ 3,048,975 $ 2,081,483 $ 988,625 $ 543,277 $ 468,848 $ 299,395 $ 7,430,603 |
Bank Premises and Equipment (Ta
Bank Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Bank Premises and Equipment | |
Summary of bank premises and equipment, by asset classification | Estimated useful lives 2023 2022 (Dollars in Thousands) Bank buildings and improvements 5 - 39 years $ 582,075 $ 571,665 Furniture, equipment and vehicles 1 - 20 years 325,855 307,990 Land 108,551 108,622 Less: accumulated depreciation (579,387) (556,665) Bank premises and equipment, net $ 437,094 $ 431,612 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Other Intangible Assets | |
Schedule of the entity's identified intangible assets | Carrying Accumulated Amount Amortization Net (Dollars in Thousands) December 31, 2023: Core deposit premium $ 58,675 $ 58,675 $ — Identified intangible (contract rights) 2,022 2,022 — Total identified intangibles $ 60,697 $ 60,697 $ — December 31, 2022: Core deposit premium $ 58,675 $ 58,675 $ — Identified intangible (contract rights) 2,022 2,022 — Total identified intangibles $ 60,697 $ 60,697 $ — |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Deposits. | |
Schedule of deposits and related interest expense | 2023 2022 (Dollars in Thousands) Deposits: Demand - non-interest bearing Domestic $ 4,126,635 $ 4,744,299 Foreign 904,210 1,101,756 Total demand non-interest bearing 5,030,845 5,846,055 Savings and interest bearing demand Domestic 3,161,411 3,448,717 Foreign 1,207,121 1,297,051 Total savings and interest bearing demand 4,368,532 4,745,768 Time, certificates of deposit $100,000 or more Domestic 763,419 652,073 Foreign 1,103,710 892,619 Less than $100,000 Domestic 289,565 276,660 Foreign 268,483 246,832 Total time, certificates of deposit 2,425,177 2,068,184 Total deposits $ 11,824,554 $ 12,660,007 2023 2022 2021 (Dollars in Thousands) Interest expense: Savings and interest bearing demand Domestic $ 42,148 $ 9,196 $ 3,268 Foreign 18,189 3,490 842 Total savings and interest bearing demand 60,337 12,686 4,110 Time, certificates of deposit $100,000 or more Domestic 18,597 5,528 6,652 Foreign 25,471 3,867 3,452 Less than $100,000 Domestic 4,592 1,027 984 Foreign 4,498 735 567 Total time, certificates of deposit 53,158 11,157 11,655 Total interest expense on deposits $ 113,495 $ 23,843 $ 15,765 |
Scheduled maturities of time deposits | Scheduled maturities of time deposits as of December 31, 2023 were as follows: Total (in thousands) 2024 $ 2,301,914 2025 85,385 2026 23,102 2027 14,200 2028 573 Thereafter 3 Total $ 2,425,177 |
Scheduled maturities of time deposits in amounts of $100,000 or more | Total (in thousands) Due within 3 months or less $ 859,734 Due after 3 months and within 6 months 517,994 Due after 6 months and within 12 months 409,193 Due after 12 months 80,208 $ 1,867,129 |
Securities Sold Under Repurch_2
Securities Sold Under Repurchase Agreements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Securities Sold Under Repurchase Agreements | |
Schedule of repurchase agreements | Collateral Securities Repurchase Borrowing Book Value of Fair Value of Balance of Weighted Average Securities Sold Securities Sold Liability Interest Rate (Dollars in Thousands) December 31, 2023 term: Overnight agreements $ 667,647 $ 587,673 $ 518,650 3.76 % 1 to 29 days 24,842 20,454 10,696 4.50 30 to 90 days — — — — Over 90 days 1,623 1,574 1,070 4.00 Total $ 694,112 $ 609,701 $ 530,416 3.78 % December 31, 2022 term: Overnight agreements $ 664,491 $ 559,637 $ 419,703 1.61 % 1 to 29 days — — — — 30 to 90 days — — — — Over 90 days 20,852 16,968 11,488 1.32 Total $ 685,343 $ 576,605 $ 431,191 1.60 % |
Other Borrowed Funds (Tables)
Other Borrowed Funds (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other Borrowed Funds | |
Schedule of other borrowed funds | December 31, 2023 2022 (Dollars in Thousands) Federal Home Loan Bank advances—long-term(1) Balance at year end $ 10,745 $ 10,944 Rate on balance outstanding at year end 2.61 % 2.61 % Average daily balance $ 10,837 $ 386,924 Average rate 2.61 % 1.75 % Maximum amount outstanding at any month end $ 10,928 $ 436,122 (1) Long-term advances at December 31, 2023 and December 31, 2022 consisted of amortizing and non-amortizing advances. The non-amortizing advances totaling $425,000,000 were called by the Federal Home Loan bank in the fourth quarter of 2022. Two amortizing advances are outstanding at December 31, 2023 in the amounts of $2,914,000 and $7,831,000 and mature in December 2033 and November 2033, respectively. The amortization on the amortizing long-term advances totals approximately $204,000 , $210,000 , $215,000 , $221,000 and $227,000 for the years ending December 31, 2024, 2025, 2026, 2027 and December 31, 2028, respectively . |
Junior Subordinated Interest _2
Junior Subordinated Interest Deferrable Debentures (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Junior Subordinated Interest Deferrable Debentures | |
Junior subordinated interest deferrable debentures, major types of business trusts | Junior Subordinated Deferrable Interest Repricing Interest Interest Optional Debentures Frequency Rate Rate Index (1) Maturity Date Redemption Date (2) (Dollars in Thousands) Trust IX $ 41,238 Quarterly 7.28 % SOFR + 1.62 October 2036 October 2011 Trust X 21,021 Quarterly 7.29 % SOFR + 1.65 February 2037 February 2012 Trust XI 25,990 Quarterly 7.28 % SOFR + 1.62 July 2037 July 2012 Trust XII 20,619 Quarterly 7.09 % SOFR + 1.45 September 2037 September 2012 $ 108,868 (1) On July 1, 2023, the interest rate index on the Capital and Common Securities transitioned from U.S.-dollar London Interbank Offered Rate (“LIBOR”) to the Three-Month CME Term Secured Overnight Financing rate (“SOFR”) with a 26-basis point spread adjustment. (2) The Capital Securities may be redeemed in whole or in part on any interest payment date after the Optional Redemption Date. |
Earnings per Share ("EPS") (Tab
Earnings per Share ("EPS") (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings per Share ("EPS") | |
Schedule of calculation of the basic EPS and the diluted EPS | Net Income Shares Per Share (Numerator) (Denominator) Amount (Dollars in Thousands, Except Per Share Amounts) December 31, 2023: Basic EPS Net income available to common shareholders $ 411,768 62,082,827 $ 6.63 Potential dilutive common shares — 138,774 Diluted EPS $ 411,768 62,221,601 $ 6.62 December 31, 2022: Basic EPS Net income available to common shareholders $ 300,232 62,658,414 $ 4.79 Potential dilutive common shares — 151,820 Diluted EPS $ 300,232 62,810,234 $ 4.78 December 31, 2021: Basic EPS Net income available to common shareholders $ 253,922 63,352,737 $ 4.01 Potential dilutive common shares — 133,629 Diluted EPS $ 253,922 63,486,366 $ 4.00 |
International Operations (Table
International Operations (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
International Operations | |
Summary of assets attributable to international operations | 2023 2022 (Dollars in Thousands) Loans: Commercial $ 106,241 $ 103,748 Others 74,454 56,227 180,695 159,975 Less allowance for probable loan losses (1,283) (968) Net loans $ 179,412 $ 159,007 Accrued interest receivable $ 876 $ 515 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Taxes | |
Schedule of current and deferred portions of net income tax expense | 2023 2022 2021 (Dollars in Thousands) Current U.S. $ 82,657 $ 66,670 $ 59,591 State 6,137 5,118 5,272 Total current taxes 88,794 71,788 64,863 Deferred U.S. 23,001 10,555 3,794 State (51) 64 (252) Total deferred taxes 22,950 10,619 3,542 Total income taxes $ 111,744 $ 82,407 $ 68,405 |
Schedule of income tax expense differences from the amount computed by applying the U.S. Federal income tax rate to income before income taxes | 2023 2022 2021 (Dollars in Thousands) Computed expected tax expense $ 110,065 $ 80,893 $ 68,011 Change in taxes resulting from: Tax-exempt interest income (3,663) (2,433) (2,970) State tax, net of federal income taxes, tax credit and refunds 4,808 4,094 3,966 Other investment income (2,761) (1,391) (1,753) Net investment in low income housing investments 1,974 1,906 203 Other 1,321 (662) 948 Actual tax expense $ 111,744 $ 82,407 $ 68,405 |
Schedule of tax effects of temporary difference that give rise to significant portions of the deferred tax assets and deferred tax liabilities | 2023 2022 (Dollars in Thousands) Deferred tax assets: Loans receivable, principally due to the allowance for probable loan losses $ 32,136 $ 25,982 Other real estate owned 1,649 1,194 Accrued expenses 581 186 Net unrealized losses on available for sale investment securities 110,584 130,586 Other 1,352 2,308 Total deferred tax assets 146,302 160,256 Deferred tax liabilities: Bank premises and equipment, principally due to differences on depreciation (14,879) (13,615) Impairment charges on available-for-sale securities (19) (19) Identified intangible assets and goodwill (14,151) (14,125) Partnership investment pass through (58,376) (30,319) Other (3,321) (3,555) Total deferred tax liabilities (90,746) (61,633) Net deferred tax asset $ 55,556 $ 98,623 |
Stock Options and Stock Appre_2
Stock Options and Stock Appreciation Rights (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Stock Options and Stock Appreciation Rights | |
Schedule of Black-Scholes-Merton option valuation model assumptions | 2022 Expected Life (Years) 7.00 Dividend yield 3.08 % Interest rate 1.94 % Volatility 37.78 % |
Summary of option activity under stock option plans | Weighted Weighted average average remaining Aggregate Number of exercise contractual intrinsic options price term (years) value ($) (in Thousands) Options outstanding at December 31, 2022 461,822 $ 29.67 Plus: Options granted — — Less: Options exercised (46,444) 25.12 Options expired — — Options forfeited (31,513) 24.52 Options outstanding at December 31, 2023 383,865 30.65 3.42 $ 9,088 Options fully vested and exercisable at December 31, 2023 232,143 $ 27.80 1.96 $ 6,157 |
Summary of activity under the SAR Plan | Weighted Weighted average Number of average remaining Aggregate stock appreciation exercise contractual intrinsic rights price term (years) value ($) (in Thousands) Stock appreciation rights outstanding at December 31, 2022 489,250 $ 39.35 Plus: Stock appreciation rights granted Less: Stock appreciation rights exercised — — Stock appreciation rights expired — — Stock appreciation rights forfeited (24,000) 39.33 Stock appreciation rights outstanding at December 31, 2023 465,250 39.35 8.50 6,964 Stock appreciation rights fully vested and exercisable at December 31, 2023 — $ — |
Schedule of other information pertaining to option activity | Twelve Months Ended December 31, 2023 2022 2021 Weighted average grant date fair value of stock options granted $ — $ 11.24 $ 10.20 Total fair value of stock options vested $ 514,000 $ 514,000 $ 1,308,000 Total intrinsic value of stock options exercised $ 1,060,000 $ 1,670,000 $ 2,536,000 |
Financial Instruments with Of_2
Financial Instruments with Off-Statement of Condition Risk and Concentrations of Credit Risk (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Financial Instruments with Off-Statement of Condition Risk and Concentrations of Credit Risk | |
Schedule of financial amounts of instruments, whose contract amounts represent credit risks | Commitments to extend credit $ 3,340,280 Credit card lines $ 14,181 Standby letters of credit $ 147,190 Commercial letters of credit $ 361 |
Capital Requirements (Tables)
Capital Requirements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Capital Ratios | |
Schedule of the Company's and the bank subsidiaries' actual capital amounts and ratios | For Capital Adequacy To Be Well-Capitalized Purposes Under Prompt Corrective Actual Phase In Schedule Action Provisions Amount Ratio Amount Ratio Amount Ratio (greater than (greater than (greater than (greater than or equal to) or equal to) or equal to) or equal to) (Dollars in Thousands) As of December 31, 2023: Common Equity Tier 1 (to Risk Weighted Assets): Consolidated $ 2,563,130 21.72 % $ 825,968 7.000 % N/A N/A International Bank of Commerce, Laredo 1,444,775 18.54 545,611 7.000 $ 506,639 6.50 % International Bank of Commerce, Brownsville 477,390 24.41 136,883 7.000 127,106 6.50 International Bank of Commerce, Oklahoma 232,965 20.72 78,718 7.000 73,095 6.50 Commerce Bank 97,334 36.57 18,628 7.000 17,298 6.50 International Bank of Commerce, Zapata 64,110 31.18 14,394 7.000 13,366 6.50 Total Capital (to Risk Weighted Assets): Consolidated $ 2,790,171 23.65 % $ 1,238,952 10.500 % N/A N/A International Bank of Commerce, Laredo 1,542,462 19.79 818,416 10.500 $ 779,444 10.00 % International Bank of Commerce, Brownsville 500,268 25.58 205,325 10.500 195,547 10.00 International Bank of Commerce, Oklahoma 247,031 21.97 118,076 10.500 112,454 10.00 Commerce Bank 100,660 37.82 27,943 10.500 26,612 10.00 International Bank of Commerce, Zapata 66,680 32.43 21,591 10.500 20,563 10.00 Tier 1 Capital (to Risk Weighted Assets): Consolidated $ 2,642,492 22.39 % $ 1,002,961 8.500 % N/A N/A International Bank of Commerce, Laredo 1,444,775 18.54 662,527 8.500 $ 623,555 8.00 % International Bank of Commerce, Brownsville 477,390 24.41 166,215 8.500 156,438 8.00 International Bank of Commerce, Oklahoma 232,965 20.72 95,586 8.500 89,963 8.00 Commerce Bank 97,334 36.57 22,620 8.500 21,290 8.00 International Bank of Commerce, Zapata 64,110 31.18 17,478 8.500 16,450 8.00 Tier 1 Capital (to Average Assets): Consolidated $ 2,642,492 17.46 % $ 605,262 4.00 % $ N/A N/A International Bank of Commerce, Laredo 1,444,775 16.40 352,412 4.00 440,515 5.00 % International Bank of Commerce, Brownsville 477,390 11.79 161,919 4.00 202,398 5.00 International Bank of Commerce, Oklahoma 232,965 14.72 63,294 4.00 79,117 5.00 Commerce Bank 97,334 14.50 26,858 4.00 33,572 5.00 International Bank of Commerce, Zapata 64,110 13.26 19,338 4.00 24,172 5.00 To Be Well-Capitalized For Capital Adequacy Under Prompt Corrective Actual Purposes Action Provisions Amount Ratio Amount Ratio Amount Ratio (greater than (greater than (greater than (greater than or equal to) or equal to) or equal to) or equal to) (Dollars in Thousands) As of December 31, 2022: Common Equity Tier 1 (to Risk Weighted Assets): Consolidated $ 2,232,723 20.21 % $ 773,398 7.000 % N/A N/A International Bank of Commerce, Laredo 1,310,616 18.07 507,625 7.000 $ 471,366 6.50 % International Bank of Commerce, Oklahoma 363,093 20.86 121,855 7.000 113,151 6.50 International Bank of Commerce, Brownsville 232,689 21.17 76,941 7.000 71,445 6.50 International Bank of Commerce, Zapata 98,087 42.26 16,248 7.000 15,088 6.50 Commerce Bank 71,418 37.70 13,261 7.000 12,314 6.50 Total Capital (to Risk Weighted Assets): Consolidated $ 2,455,468 22.22 % $ 1,160,096 10.500 % N/A N/A % International Bank of Commerce, Laredo 1,401,298 19.32 761,438 10.500 $ 725,179 10.00 International Bank of Commerce, Oklahoma 383,804 22.05 182,782 10.500 174,078 10.00 International Bank of Commerce, Brownsville 243,739 22.18 115,412 10.500 109,916 10.00 International Bank of Commerce, Zapata 100,798 43.43 24,372 10.500 23,212 10.00 Commerce Bank 73,420 38.76 19,892 10.500 18,945 10.00 Tier 1 Capital (to Risk Weighted Assets): % Consolidated $ 2,324,903 21.04 % $ 939,126 8.500 % N/A N/A International Bank of Commerce, Laredo 1,310,616 18.07 616,402 8.500 $ 580,143 8.00 International Bank of Commerce, Oklahoma 363,093 20.86 147,966 8.500 139,262 8.00 International Bank of Commerce, Brownsville 232,689 21.17 93,429 8.500 87,933 8.00 International Bank of Commerce, Zapata 98,087 42.26 19,730 8.500 18,569 8.00 Commerce Bank 71,418 37.70 16,103 8.500 15,156 8.00 % Tier 1 Capital (to Average Assets): Consolidated $ 2,324,903 14.59 % $ 637,578 4.00 % $ N/A N/A International Bank of Commerce, Laredo 1,310,616 13.09 400,489 4.00 500,611 5.00 International Bank of Commerce, Oklahoma 363,093 8.95 162,246 4.00 202,808 5.00 International Bank of Commerce, Brownsville 232,689 13.48 69,028 4.00 86,286 5.00 International Bank of Commerce, Zapata 98,087 14.39 27,270 4.00 34,088 5.00 Commerce Bank 71,418 15.00 19,048 4.00 23,811 5.00 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Measurements | |
Assets and liabilities measured at fair value on a recurring basis | The following table represents financial instruments reported on the consolidated statements of condition at their fair value as of December 31, 2023 by level within the fair value measurement hierarchy. Fair Value Measurements at Reporting Date Using (in Thousands) Quoted Prices in Active Significant Assets/Liabilities Markets for Other Significant Measured at Identical Observable Unobservable Fair Value Assets Inputs Inputs December 31, 2023 (Level 1) (Level 2) (Level 3) Measured on a recurring basis: Assets: Available for sale debt securities Residential mortgage-backed securities $ 4,660,099 $ — $ 4,660,099 $ — States and political subdivisions 162,242 — 162,242 — Equity Securities 5,417 5,417 — — $ 4,827,758 $ 5,417 $ 4,822,341 $ — The following table represents financial instruments reported on the consolidated balance sheets at their fair value as of December 31, 2022 by level within the fair value measurement hierarchy. Fair Value Measurements at Reporting Date Using (in Thousands) Quoted Prices in Active Significant Assets/Liabilities Markets for Other Significant Measured at Identical Observable Unobservable Fair Value Assets Inputs Inputs December 31, 2022 (Level 1) (Level 2) (Level 3) Measured on a recurring basis: Assets: Available for sale securities U.S. Treasury securities $ 49,393 $ — $ 49,393 $ — Residential mortgage-backed securities 4,209,212 — 4,209,212 — States and political subdivisions 159,191 — 159,191 — Equity Securities 5,358 5,358 — — $ 4,423,154 $ 5,358 $ 4,417,796 $ — |
Assets measured at fair value on a non-recurring basis | The following table represents financial instruments measured at fair value on a non-recurring basis as of and for the period ended December 31, 2023 by level within the fair value measurement hierarchy: Fair Value Measurements at Reporting Date Using (in thousands) Quoted Assets/Liabilities Prices in Measured at Active Significant Fair Value Markets for Other Significant Net Period ended Identical Observable Unobservable Provision December 31, Assets Inputs Inputs During 2023 (Level 1) (Level 2) (Level 3) Period Measured on a non-recurring basis: Assets: Watch-List doubtful loans $ 46,124 $ — $ — $ 46,124 $ 10,221 Other real estate owned 307 — — 307 2,538 The following table represents financial instruments measured at fair value on a non-recurring basis as of and for the year ended December 31, 2022 by level within the fair value measurement hierarchy: Fair Value Measurements at Reporting Date Using (in thousands) Quoted Assets/Liabilities Prices in Measured at Active Significant Fair Value Markets Other Significant Net Year ended for Identical Observable Unobservable Provision December 31, Assets Inputs Inputs During 2022 (Level 1) (Level 2) (Level 3) Period Measured on a non-recurring basis: Assets: Watch-List doubtful loans $ 30,743 $ — $ — $ 30,743 $ 2,346 Other real estate owned 5,653 — — 5,653 1,627 |
International Bancshares Corp_4
International Bancshares Corporation (Parent Company Only) Financial Information Statements of Condition (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
International Bancshares Corporation (Parent Company Only) Financial Information Statements of Condition | |
Schedule of condensed statements of condition of Parent Company | (Dollars in Thousands) 2023 2022 ASSETS Cash $ 105,184 $ 89,263 Other investments 111,382 114,901 Net loans 62,150 42,519 Investment in subsidiaries 2,281,952 1,933,269 Goodwill 3,365 3,365 Other assets 8,617 7,181 Total assets $ 2,572,650 $ 2,190,498 LIABILITIES AND SHAREHOLDERS’ EQUITY Liabilities: Junior subordinated deferrable interest debentures $ 108,868 $ 134,642 Due to IBC Trading 21 21 Other liabilities 15,987 11,076 Total liabilities 124,876 145,739 Shareholders’ equity: Common shares 96,467 96,420 Surplus 155,511 154,061 Retained earnings 3,029,088 2,695,567 Accumulated other comprehensive loss (397,889) (470,497) 2,883,177 2,475,551 Less cost of shares in treasury (435,403) (430,792) Total shareholders’ equity 2,447,774 2,044,759 Total liabilities and shareholders’ equity $ 2,572,650 $ 2,190,498 |
International Bancshares Corp_5
International Bancshares Corporation (Parent Company Only) Financial Information Statements of Income (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
International Bancshares Corporation (Parent Company Only) Financial Information Statements of Income | |
Schedule of condensed statements of income of Parent Company | (Dollars in Thousands) 2023 2022 2021 Income: Dividends from subsidiaries $ 179,000 $ 222,175 $ 80,882 Interest income on notes receivable 5,769 2,394 1,139 (Loss) income on other investments (6,150) 8,662 9,662 Other 4 857 58 Total income 178,623 234,088 91,741 Expenses: Interest expense (Debentures) 8,122 5,037 2,792 Provision for credit loss 500 437 — Other 252 2,291 2,272 Total expenses 8,874 7,765 5,064 Income before federal income taxes and equity in undistributed net income of subsidiaries 169,749 226,323 86,677 Income tax (benefit) expense (1,365) 504 1,358 Income before equity in undistributed net income of subsidiaries 171,114 225,819 85,319 Equity in undistributed net income of subsidiaries 240,654 74,413 168,603 Net income $ 411,768 $ 300,232 $ 253,922 |
International Bancshares Corp_6
International Bancshares Corporation (Parent Company Only) Financial Information Statements of Cash Flows (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
International Bancshares Corporation (Parent Company Only) Financial Information Statements of Cash Flows | |
Schedule of condensed statements of cash flows of Parent Company | (Dollars in Thousands) 2023 2022 2021 Operating activities: Net income $ 411,768 $ 300,232 $ 253,922 Adjustments to reconcile net income to net cash provided by operating activities: Provision for credit loss 500 437 — Unrealized (gain) loss on equity securities with readily determinable fair values (14) 36 (51) Stock compensation expense 330 449 506 Increase (decrease) in other liabilities 4,911 1,743 (8,084) Equity in undistributed net income of subsidiaries (240,654) (74,413) (168,603) Net cash provided by operating activities 176,841 228,484 77,690 Investing activities: Net (increase) decrease in notes receivable (20,170) (32,556) 1,549 Increase in other assets and other investments (33,285) (43,343) (11,787) Net cash used in investing activities (53,455) (75,899) (10,238) Financing activities: Redemption of long-term debt (25,774) — — Proceeds from stock transactions 1,167 1,537 2,414 Payments of cash dividends - common (78,247) (75,375) (72,838) Purchase of treasury stock (4,611) (52,048) (716) Net cash used in financing activities (107,465) (125,886) (71,140) Increase (decrease) in cash 15,921 26,699 (3,688) Cash at beginning of year 89,263 62,564 66,252 Cash at end of year $ 105,184 $ 89,263 $ 62,564 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) | 12 Months Ended | |||
Oct. 01, 2021 USD ($) | Dec. 31, 2023 USD ($) item | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Summary of Significant Accounting Policies | ||||
Number of insurance-related subsidiaries | item | 1 | |||
Investment Securities | ||||
Number of components in which other-than-temporary impairment is segregated | item | 2 | |||
Non-Accrual Loans | ||||
Period of charge off for past due unsecured consumer loans | 90 days | |||
Minimum period that past due unsecured loans outstanding may not be placed on nonaccrual status under special circumstances | 90 days | |||
Maximum period of non-consumer loans outstanding that is used to evaluate whether loans should be placed on non-accrual status | 90 days | |||
Other Real Estate Owned and Repossessed Assets | ||||
Other real estate owned | $ 26,728,000 | $ 30,144,000 | ||
Repossessed assets | $ 236,000 | 4,637,000 | ||
Income Taxes | ||||
Percentage of likelihood of realization of recognized tax benefit | 50% | |||
Liability for unrecognized tax benefits | $ 0 | 0 | ||
Interest expense related to uncertain tax positions | 0 | 0 | $ 0 | |
Penalties related to uncertain tax positions | 0 | 0 | $ 0 | |
Goodwill and Identified Intangible Assets | ||||
Goodwill impairment loss | $ 0 | |||
Impairment of identified intangible assets | $ 0 | |||
Segments of an Enterprise and Related Information | ||||
Number of operating segments | item | 1 | |||
Number of active operating bank subsidiaries | item | 5 | |||
New Accounting Standards | ||||
Retained Earnings (Accumulated Deficit) | $ 3,029,088,000 | $ 2,695,567,000 |
Investment Securities, Equity_3
Investment Securities, Equity Securities with Readily Determinable Fair Values and Other Investments (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Held-to-maturity securities | ||
Amortized Value | $ 3,400,000 | $ 3,400,000 |
Estimated fair value | 3,400,000 | 3,400,000 |
Carrying Value | 3,400,000 | 3,400,000 |
Available-for-sale securities | ||
Amortized cost | 5,330,814,000 | 5,018,996,000 |
Gross unrealized gains | 11,143,000 | 4,072,000 |
Gross unrealized losses | (519,616,000) | (605,272,000) |
Estimated fair value, Available for sale securities | 4,822,341,000 | 4,417,796,000 |
Collateral Pledged | ||
Available-for-sale securities | ||
Amortized cost | 1,836,634,000 | |
Estimated Fair Value | ||
Available-for-sale securities | ||
Estimated fair value, Available for sale securities | 4,822,341,000 | 4,417,796,000 |
Reported Value Measurement | ||
Available-for-sale securities | ||
Amortized cost | 4,822,341,000 | 4,417,796,000 |
US Treasury Securities | ||
Available-for-sale securities | ||
Amortized cost | 49,752,000 | |
Gross unrealized losses | (359,000) | |
US Treasury Securities | Estimated Fair Value | ||
Available-for-sale securities | ||
Estimated fair value, Available for sale securities | 49,393,000 | |
US Treasury Securities | Reported Value Measurement | ||
Available-for-sale securities | ||
Amortized cost | 49,393,000 | |
Residential mortgage-backed securities | ||
Available-for-sale securities | ||
Amortized cost | 5,169,813,000 | 4,805,735,000 |
Gross unrealized gains | 9,541,000 | 3,145,000 |
Gross unrealized losses | (519,255,000) | (599,668,000) |
Residential mortgage-backed securities | Estimated Fair Value | ||
Available-for-sale securities | ||
Estimated fair value, Available for sale securities | 4,660,099,000 | 4,209,212,000 |
Residential mortgage-backed securities | Reported Value Measurement | ||
Available-for-sale securities | ||
Amortized cost | 4,660,099,000 | 4,209,212,000 |
US Government Corporations and Agencies Securities [Member] | ||
Held-to-maturity securities | ||
Carrying Value | 959,421,000 | |
Available-for-sale securities | ||
Amortized cost | 681,121 | |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ||
Held-to-maturity securities | ||
Carrying Value | 3,700,678,000 | |
Available-for-sale securities | ||
Amortized cost | 3,528,091 | |
States and political subdivisions | ||
Available-for-sale securities | ||
Amortized cost | 161,001,000 | 163,509,000 |
Gross unrealized gains | 1,602,000 | 927,000 |
Gross unrealized losses | (361,000) | (5,245,000) |
States and political subdivisions | Estimated Fair Value | ||
Available-for-sale securities | ||
Estimated fair value, Available for sale securities | 162,242,000 | 159,191,000 |
States and political subdivisions | Reported Value Measurement | ||
Available-for-sale securities | ||
Amortized cost | 162,242,000 | 159,191,000 |
Other Debt Obligations | ||
Held-to-maturity securities | ||
Amortized Value | 3,400,000 | 3,400,000 |
Estimated fair value | 3,400,000 | 3,400,000 |
Carrying Value | $ 3,400,000 | $ 3,400,000 |
Investment Securities, Equity_4
Investment Securities, Equity Securities with Readily Determinable Fair Values and Other Investments (Contractual Maturities and Estimated Fair Values) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Amortized Cost | |||
Due in one year or less, held-to-maturity debt securities amortized cost | $ 2,075,000 | ||
Due after one year through five years, held-to-maturity debt securities amortized cost | 1,325,000 | ||
Amortized cost, held-to-maturity debt securities | 3,400,000 | $ 3,400,000 | |
Fair Value | |||
Due in one year or less, held-to-maturity debt securities, Estimated fair value | 2,075,000 | ||
Due after one year through five years, held-to-maturity debt securities, Estimated fair value | 1,325,000 | ||
Estimated fair value | 3,400,000 | 3,400,000 | |
Available-for-sale debt securities amortized cost disclosures | |||
Due after five years through ten years, available-for-sale debt securities amortized cost | 440,000 | ||
Due after ten years, available-for-sale debt securities amortized cost | 160,561,000 | ||
Residential mortgage-backed securities, amortized cost | 5,169,813,000 | ||
Amortized cost, Available-for-sale securities | 5,330,814,000 | 5,018,996,000 | |
Available for sale debt securities, Estimated Fair Value Disclosures | |||
Due after five years through ten years, available-for-sale debt securities, Estimated Fair Value | 440,000 | ||
Due after ten years, available-for-sale debt securities, Estimated Fair Value | 161,802,000 | ||
Residential mortgage-backed securities, Estimated Fair Value | 4,660,099,000 | ||
Estimated fair value, Available for sale securities | 4,822,341,000 | 4,417,796,000 | |
Available for sale debt securities, Estimated Fair Value Disclosures | |||
Proceeds from sales and calls of available for sale securities | 2,045,000 | 800,000 | $ 5,890,000 |
Proceeds from sales and calls of available for sale securities | 2,045,000 | 800,000 | 5,890,000 |
Proceeds from sales of mortgage-backed securities | 0 | 0 | 0 |
Gross gains realized on sales | 0 | 0 | 0 |
Gross losses realized on sales | 3,000 | $ 0 | $ 16,000 |
Collateral Pledged | |||
Available-for-sale debt securities amortized cost disclosures | |||
Amortized cost, Available-for-sale securities | 1,836,634,000 | ||
Available for sale debt securities, Estimated Fair Value Disclosures | |||
Fair value of available for sale investment securities pledged | $ 1,598,853,000 |
Investment Securities, Equity_5
Investment Securities, Equity Securities with Readily Determinable Fair Values and Other Investments (Unrealized Losses) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Available for sale: | ||
Fair value, less than 12 months | $ 578,099 | $ 1,526,071 |
Unrealized losses, less than 12 Months | (8,268) | (93,419) |
Fair value, 12 months or more | 3,520,722 | 2,566,975 |
Unrealized losses, 12 Months or More | (511,348) | (511,853) |
Fair value, Total | 4,098,821 | 4,093,046 |
Unrealized losses, Total | (519,616) | (605,272) |
US Treasury Securities | ||
Available for sale: | ||
Fair value, less than 12 months | 49,394 | |
Unrealized losses, less than 12 Months | (359) | |
Fair value, Total | 49,394 | |
Unrealized losses, Total | (359) | |
Residential mortgage-backed securities | ||
Available for sale: | ||
Fair value, less than 12 months | 577,448 | 1,357,905 |
Unrealized losses, less than 12 Months | (8,267) | (87,815) |
Fair value, 12 months or more | 3,456,349 | 2,566,975 |
Unrealized losses, 12 Months or More | (510,988) | (511,853) |
Fair value, Total | 4,033,797 | 3,924,880 |
Unrealized losses, Total | (519,255) | (599,668) |
States and political subdivisions | ||
Available for sale: | ||
Fair value, less than 12 months | 651 | 118,772 |
Unrealized losses, less than 12 Months | (1) | (5,245) |
Fair value, 12 months or more | 64,373 | |
Unrealized losses, 12 Months or More | (360) | |
Fair value, Total | 65,024 | 118,772 |
Unrealized losses, Total | $ (361) | $ (5,245) |
Investment Securities, Equity_6
Investment Securities, Equity Securities with Readily Determinable Fair Values and Other Investments (Unrealized and realized gains and losses recognized in net income on equity securities ) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Investment Securities, Equity Securities with Readily Determinable Fair Values and Other Investments | |||
Equity Securities | $ 5,417,000 | $ 5,358,000 | |
Summary of unrealized and realized gains and losses recognized in net income on equity securities | |||
Net losses recognized during the period on equity securities | 59,000 | (721,000) | $ (123,000) |
Unrealized gain on equity securities with readily determinable fair values | $ 59,000 | $ (721,000) | $ (123,000) |
Investment Securities (Other In
Investment Securities (Other Investments) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Other investments | ||
LIHTC | ||
Investments | $ 200,245 | $ 214,549 |
Other liabilities | ||
LIHTC | ||
Unfunded commitments | $ 34,126 | $ 41,191 |
Loans (Details)
Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Summary of loans, by loan type | ||
Total loans | $ 8,058,961 | $ 7,430,603 |
Commercial, financial and agricultural | ||
Summary of loans, by loan type | ||
Total loans | 4,802,622 | 4,373,373 |
Real estate - mortgage | ||
Summary of loans, by loan type | ||
Total loans | 938,901 | 865,994 |
Obligations of states and political subdivisions | ||
Summary of loans, by loan type | ||
Total loans | 2,091,622 | 1,989,669 |
Consumer | ||
Summary of loans, by loan type | ||
Total loans | 45,121 | 41,592 |
Foreign. | ||
Summary of loans, by loan type | ||
Total loans | $ 180,695 | $ 159,975 |
Allowance for Credit Losses (By
Allowance for Credit Losses (By Loan Class) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Balance at the beginning of the period | $ 125,972 | $ 110,374 | $ 109,059 |
Losses charged to allowance | (10,184) | (9,479) | (9,024) |
Recoveries credited to allowance | 6,705 | 3,426 | 2,384 |
Net losses charged to allowance | (3,479) | (6,053) | (6,640) |
Provision (credit) charged to operations | 34,576 | 21,651 | 7,955 |
Balance at the end of the period | 157,069 | 125,972 | 110,374 |
Commercial, financial and agricultural | Domestic | Commercial. | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Balance at the beginning of the period | 26,728 | 23,178 | 21,908 |
Losses charged to allowance | (9,664) | (9,050) | (8,083) |
Recoveries credited to allowance | 5,433 | 2,894 | 1,943 |
Net losses charged to allowance | (4,231) | (6,156) | (6,140) |
Provision (credit) charged to operations | 13,053 | 9,706 | 7,410 |
Balance at the end of the period | 35,550 | 26,728 | 23,178 |
Commercial, financial and agricultural | Domestic | Commercial real estate: farmland & commercial | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Balance at the beginning of the period | 36,474 | 35,654 | 30,000 |
Losses charged to allowance | (16) | (364) | |
Recoveries credited to allowance | 143 | 27 | 171 |
Net losses charged to allowance | 143 | 11 | (193) |
Provision (credit) charged to operations | 6,086 | 809 | 5,847 |
Balance at the end of the period | 42,703 | 36,474 | 35,654 |
Commercial, financial and agricultural | Domestic | Commercial real estate: multifamily | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Balance at the beginning of the period | 3,794 | 3,291 | 5,051 |
Provision (credit) charged to operations | 1,294 | 503 | (1,760) |
Balance at the end of the period | 5,088 | 3,794 | 3,291 |
Obligations of states and political subdivisions | Domestic | Commercial Real Estate: other construction and land development | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Balance at the beginning of the period | 44,684 | 35,390 | 37,612 |
Losses charged to allowance | (2) | (2) | |
Recoveries credited to allowance | 837 | 123 | |
Net losses charged to allowance | 837 | 121 | (2) |
Provision (credit) charged to operations | 9,770 | 9,173 | (2,220) |
Balance at the end of the period | 55,291 | 44,684 | 35,390 |
Real estate - mortgage | Domestic | Residential: first lien | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Balance at the beginning of the period | 4,759 | 4,073 | 3,874 |
Losses charged to allowance | (43) | (160) | (373) |
Recoveries credited to allowance | 16 | 240 | 60 |
Net losses charged to allowance | (27) | 80 | (313) |
Provision (credit) charged to operations | 1,080 | 606 | 512 |
Balance at the end of the period | 5,812 | 4,759 | 4,073 |
Real estate - mortgage | Domestic | Residential Junior Lien | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Balance at the beginning of the period | 8,284 | 7,754 | 9,570 |
Losses charged to allowance | (298) | (28) | (25) |
Recoveries credited to allowance | 260 | 104 | 164 |
Net losses charged to allowance | (38) | 76 | 139 |
Provision (credit) charged to operations | 2,778 | 454 | (1,955) |
Balance at the end of the period | 11,024 | 8,284 | 7,754 |
Consumer | Domestic | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Balance at the beginning of the period | 281 | 272 | 291 |
Losses charged to allowance | (179) | (223) | (176) |
Recoveries credited to allowance | 16 | 38 | 46 |
Net losses charged to allowance | (163) | (185) | (130) |
Provision (credit) charged to operations | 200 | 194 | 111 |
Balance at the end of the period | 318 | 281 | 272 |
Foreign. | Foreign | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Balance at the beginning of the period | 968 | 762 | 753 |
Losses charged to allowance | (1) | ||
Net losses charged to allowance | (1) | ||
Provision (credit) charged to operations | 315 | 206 | 10 |
Balance at the end of the period | $ 1,283 | $ 968 | $ 762 |
Allowance for Credit Losses (Im
Allowance for Credit Losses (Impairment By Loan Class) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Loan loss allowances, impaired financing receivable, evaluated individually or collectively | ||
Loans Individually Evaluated for Impairment, Recorded Investment | $ 47,061 | $ 51,830 |
Loans Individually Evaluated for Impairment, Allowance | 12,291 | 2,445 |
Loans Collectively Evaluated for Impairment, Recorded Investment | 8,011,900 | 7,378,773 |
Loans Collectively Evaluated for Impairment, Allowance | 144,778 | 123,527 |
Commercial, financial and agricultural | Domestic | Commercial. | ||
Loan loss allowances, impaired financing receivable, evaluated individually or collectively | ||
Loans Individually Evaluated for Impairment, Recorded Investment | 30,872 | 30,747 |
Loans Individually Evaluated for Impairment, Allowance | 7,971 | 2,375 |
Loans Collectively Evaluated for Impairment, Recorded Investment | 1,597,358 | 1,468,006 |
Loans Collectively Evaluated for Impairment, Allowance | 27,579 | 24,353 |
Commercial, financial and agricultural | Domestic | Commercial real estate: farmland & commercial | ||
Loan loss allowances, impaired financing receivable, evaluated individually or collectively | ||
Loans Individually Evaluated for Impairment, Recorded Investment | 299 | 94 |
Loans Collectively Evaluated for Impairment, Recorded Investment | 2,793,254 | 2,568,025 |
Loans Collectively Evaluated for Impairment, Allowance | 42,703 | 36,474 |
Commercial, financial and agricultural | Domestic | Commercial real estate: multifamily | ||
Loan loss allowances, impaired financing receivable, evaluated individually or collectively | ||
Loans Individually Evaluated for Impairment, Recorded Investment | 96 | 117 |
Loans Collectively Evaluated for Impairment, Recorded Investment | 380,743 | 306,384 |
Loans Collectively Evaluated for Impairment, Allowance | 5,088 | 3,794 |
Obligations of states and political subdivisions | Domestic | Commercial Real Estate: other construction and land development | ||
Loan loss allowances, impaired financing receivable, evaluated individually or collectively | ||
Loans Individually Evaluated for Impairment, Recorded Investment | 15,701 | 20,483 |
Loans Individually Evaluated for Impairment, Allowance | 4,320 | 70 |
Loans Collectively Evaluated for Impairment, Recorded Investment | 2,075,921 | 1,969,186 |
Loans Collectively Evaluated for Impairment, Allowance | 50,971 | 44,614 |
Real estate - mortgage | Domestic | Residential: first lien | ||
Loan loss allowances, impaired financing receivable, evaluated individually or collectively | ||
Loans Individually Evaluated for Impairment, Recorded Investment | 93 | 77 |
Loans Collectively Evaluated for Impairment, Recorded Investment | 477,940 | 425,647 |
Loans Collectively Evaluated for Impairment, Allowance | 5,812 | 4,759 |
Real estate - mortgage | Domestic | Residential Junior Lien | ||
Loan loss allowances, impaired financing receivable, evaluated individually or collectively | ||
Loans Individually Evaluated for Impairment, Recorded Investment | 312 | |
Loans Collectively Evaluated for Impairment, Recorded Investment | 460,868 | 439,958 |
Loans Collectively Evaluated for Impairment, Allowance | 11,024 | 8,284 |
Consumer | Domestic | ||
Loan loss allowances, impaired financing receivable, evaluated individually or collectively | ||
Loans Collectively Evaluated for Impairment, Recorded Investment | 45,121 | 41,592 |
Loans Collectively Evaluated for Impairment, Allowance | 318 | 281 |
Foreign. | Foreign | ||
Loan loss allowances, impaired financing receivable, evaluated individually or collectively | ||
Loans Collectively Evaluated for Impairment, Recorded Investment | 180,695 | 159,975 |
Loans Collectively Evaluated for Impairment, Allowance | $ 1,283 | $ 968 |
Allowance for Credit Losses (No
Allowance for Credit Losses (Non-accrual Basis By Loan Class) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Loan loss allowances, financing receivable past due | |||
Non-accrual loans, total | $ 47,170,000 | $ 51,648,000 | $ 1,921,000 |
Reduced interest income on non-accrual loans | 6,614,000 | 116,000 | $ 169,000 |
Commercial, financial and agricultural | Domestic | Commercial. | |||
Loan loss allowances, financing receivable past due | |||
Non-accrual loans, total | 30,872,000 | 30,747,000 | |
Commercial, financial and agricultural | Domestic | Commercial real estate: farmland & commercial | |||
Loan loss allowances, financing receivable past due | |||
Non-accrual loans, total | 299,000 | 94,000 | |
Commercial, financial and agricultural | Domestic | Commercial real estate: multifamily | |||
Loan loss allowances, financing receivable past due | |||
Non-accrual loans, total | 96,000 | 117,000 | |
Obligations of states and political subdivisions | Domestic | Commercial Real Estate: other construction and land development | |||
Loan loss allowances, financing receivable past due | |||
Non-accrual loans, total | 15,701,000 | 20,483,000 | |
Real estate - mortgage | Domestic | Residential: first lien | |||
Loan loss allowances, financing receivable past due | |||
Non-accrual loans, total | $ 202,000 | $ 207,000 |
Allowance for Credit Losses (_2
Allowance for Credit Losses (Impaired Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Loan loss allowances | ||
Total troubled debt restructuring | $ 3,213 | |
Period of charge off for past due unsecured commercial loans | 90 days | |
Domestic | Residential: first lien | ||
Loan loss allowances | ||
Total troubled debt restructuring | 1,642 | |
Domestic | Residential Junior Lien | ||
Loan loss allowances | ||
Total troubled debt restructuring | 714 | |
Consumer | Domestic | ||
Loan loss allowances | ||
Total troubled debt restructuring | 802 | |
Foreign. | Foreign | ||
Loan loss allowances | ||
Total troubled debt restructuring | $ 55 |
Allowance for Credit Losses (Ag
Allowance for Credit Losses (Aging By Loan Class) (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Financing receivable recorded investment | |||
Past due 90 days or Greater and Still Accruing | $ 5,597,000 | $ 6,132,000 | $ 8,642,000 |
Loans | 8,058,961,000 | 7,430,603,000 | |
Current | |||
Financing receivable recorded investment | |||
Loans | 7,995,156,000 | 7,412,585,000 | |
Total Past Due | |||
Financing receivable recorded investment | |||
Loans | 63,805,000 | 18,018,000 | |
30 to 59 Days | |||
Financing receivable recorded investment | |||
Loans | 12,872,000 | 8,552,000 | |
60 to 89 Days | |||
Financing receivable recorded investment | |||
Loans | 5,195,000 | 2,251,000 | |
90 Days or Greater | |||
Financing receivable recorded investment | |||
Loans | 45,738,000 | 7,215,000 | |
Commercial, financial and agricultural | |||
Financing receivable recorded investment | |||
Loans | 4,802,622,000 | 4,373,373,000 | |
Commercial, financial and agricultural | Domestic | Commercial. | |||
Financing receivable recorded investment | |||
Past due 90 days or Greater and Still Accruing | 539,000 | 59,000 | |
Loans | 1,628,230,000 | 1,498,754,000 | |
Commercial, financial and agricultural | Domestic | Commercial. | Current | |||
Financing receivable recorded investment | |||
Loans | 1,594,022,000 | 1,495,750,000 | |
Commercial, financial and agricultural | Domestic | Commercial. | Total Past Due | |||
Financing receivable recorded investment | |||
Loans | 34,208,000 | 3,004,000 | |
Commercial, financial and agricultural | Domestic | Commercial. | 30 to 59 Days | |||
Financing receivable recorded investment | |||
Loans | 2,387,000 | 1,732,000 | |
Commercial, financial and agricultural | Domestic | Commercial. | 60 to 89 Days | |||
Financing receivable recorded investment | |||
Loans | 1,583,000 | 258,000 | |
Commercial, financial and agricultural | Domestic | Commercial. | 90 Days or Greater | |||
Financing receivable recorded investment | |||
Loans | 30,238,000 | 1,014,000 | |
Commercial, financial and agricultural | Domestic | Commercial real estate: farmland & commercial | |||
Financing receivable recorded investment | |||
Past due 90 days or Greater and Still Accruing | 4,000 | ||
Loans | 2,793,553,000 | 2,568,118,000 | |
Commercial, financial and agricultural | Domestic | Commercial real estate: farmland & commercial | Current | |||
Financing receivable recorded investment | |||
Loans | 2,791,665,000 | 2,566,257,000 | |
Commercial, financial and agricultural | Domestic | Commercial real estate: farmland & commercial | Total Past Due | |||
Financing receivable recorded investment | |||
Loans | 1,888,000 | 1,861,000 | |
Commercial, financial and agricultural | Domestic | Commercial real estate: farmland & commercial | 30 to 59 Days | |||
Financing receivable recorded investment | |||
Loans | 1,424,000 | 1,744,000 | |
Commercial, financial and agricultural | Domestic | Commercial real estate: farmland & commercial | 60 to 89 Days | |||
Financing receivable recorded investment | |||
Loans | 371,000 | 117,000 | |
Commercial, financial and agricultural | Domestic | Commercial real estate: farmland & commercial | 90 Days or Greater | |||
Financing receivable recorded investment | |||
Loans | 93,000 | ||
Commercial, financial and agricultural | Domestic | Commercial real estate: multifamily | |||
Financing receivable recorded investment | |||
Loans | 380,839,000 | 306,501,000 | |
Commercial, financial and agricultural | Domestic | Commercial real estate: multifamily | Current | |||
Financing receivable recorded investment | |||
Loans | 380,140,000 | 306,501,000 | |
Commercial, financial and agricultural | Domestic | Commercial real estate: multifamily | Total Past Due | |||
Financing receivable recorded investment | |||
Loans | 699,000 | ||
Commercial, financial and agricultural | Domestic | Commercial real estate: multifamily | 30 to 59 Days | |||
Financing receivable recorded investment | |||
Loans | 369,000 | ||
Commercial, financial and agricultural | Domestic | Commercial real estate: multifamily | 60 to 89 Days | |||
Financing receivable recorded investment | |||
Loans | 330,000 | ||
Obligations of states and political subdivisions | |||
Financing receivable recorded investment | |||
Loans | 2,091,622,000 | 1,989,669,000 | |
Obligations of states and political subdivisions | Domestic | Commercial Real Estate: other construction and land development | |||
Financing receivable recorded investment | |||
Loans | 2,091,622,000 | 1,989,669,000 | |
Obligations of states and political subdivisions | Domestic | Commercial Real Estate: other construction and land development | Current | |||
Financing receivable recorded investment | |||
Loans | 2,077,917,000 | 1,988,539,000 | |
Obligations of states and political subdivisions | Domestic | Commercial Real Estate: other construction and land development | Total Past Due | |||
Financing receivable recorded investment | |||
Loans | 13,705,000 | 1,130,000 | |
Obligations of states and political subdivisions | Domestic | Commercial Real Estate: other construction and land development | 30 to 59 Days | |||
Financing receivable recorded investment | |||
Loans | 3,460,000 | 1,130,000 | |
Obligations of states and political subdivisions | Domestic | Commercial Real Estate: other construction and land development | 90 Days or Greater | |||
Financing receivable recorded investment | |||
Loans | 10,245,000 | ||
Real estate - mortgage | |||
Financing receivable recorded investment | |||
Loans | 938,901,000 | 865,994,000 | |
Real estate - mortgage | Domestic | Residential: first lien | |||
Financing receivable recorded investment | |||
Past due 90 days or Greater and Still Accruing | 2,437,000 | 4,061,000 | |
Loans | 478,032,000 | 425,724,000 | |
Real estate - mortgage | Domestic | Residential: first lien | Current | |||
Financing receivable recorded investment | |||
Loans | 472,236,000 | 418,444,000 | |
Real estate - mortgage | Domestic | Residential: first lien | Total Past Due | |||
Financing receivable recorded investment | |||
Loans | 5,796,000 | 7,280,000 | |
Real estate - mortgage | Domestic | Residential: first lien | 30 to 59 Days | |||
Financing receivable recorded investment | |||
Loans | 1,812,000 | 2,023,000 | |
Real estate - mortgage | Domestic | Residential: first lien | 60 to 89 Days | |||
Financing receivable recorded investment | |||
Loans | 1,439,000 | 1,068,000 | |
Real estate - mortgage | Domestic | Residential: first lien | 90 Days or Greater | |||
Financing receivable recorded investment | |||
Loans | 2,545,000 | 4,189,000 | |
Real estate - mortgage | Domestic | Residential Junior Lien | |||
Financing receivable recorded investment | |||
Past due 90 days or Greater and Still Accruing | 1,701,000 | 1,717,000 | |
Loans | 460,869,000 | 440,270,000 | |
Real estate - mortgage | Domestic | Residential Junior Lien | Current | |||
Financing receivable recorded investment | |||
Loans | 457,282,000 | 436,857,000 | |
Real estate - mortgage | Domestic | Residential Junior Lien | Total Past Due | |||
Financing receivable recorded investment | |||
Loans | 3,587,000 | 3,413,000 | |
Real estate - mortgage | Domestic | Residential Junior Lien | 30 to 59 Days | |||
Financing receivable recorded investment | |||
Loans | 1,273,000 | 925,000 | |
Real estate - mortgage | Domestic | Residential Junior Lien | 60 to 89 Days | |||
Financing receivable recorded investment | |||
Loans | 613,000 | 771,000 | |
Real estate - mortgage | Domestic | Residential Junior Lien | 90 Days or Greater | |||
Financing receivable recorded investment | |||
Loans | 1,701,000 | 1,717,000 | |
Consumer | |||
Financing receivable recorded investment | |||
Loans | 45,121,000 | 41,592,000 | |
Consumer | Domestic | |||
Financing receivable recorded investment | |||
Past due 90 days or Greater and Still Accruing | 27,000 | 7,000 | |
Loans | 45,121,000 | 41,592,000 | |
Consumer | Domestic | Current | |||
Financing receivable recorded investment | |||
Loans | 44,820,000 | 41,290,000 | |
Consumer | Domestic | Total Past Due | |||
Financing receivable recorded investment | |||
Loans | 301,000 | 302,000 | |
Consumer | Domestic | 30 to 59 Days | |||
Financing receivable recorded investment | |||
Loans | 263,000 | 281,000 | |
Consumer | Domestic | 60 to 89 Days | |||
Financing receivable recorded investment | |||
Loans | 11,000 | 14,000 | |
Consumer | Domestic | 90 Days or Greater | |||
Financing receivable recorded investment | |||
Loans | 27,000 | 7,000 | |
Foreign. | |||
Financing receivable recorded investment | |||
Loans | 180,695,000 | 159,975,000 | |
Foreign. | Foreign | |||
Financing receivable recorded investment | |||
Past due 90 days or Greater and Still Accruing | 889,000 | 288,000 | |
Loans | 180,695,000 | 159,975,000 | |
Foreign. | Foreign | Current | |||
Financing receivable recorded investment | |||
Loans | 177,074,000 | 158,947,000 | |
Foreign. | Foreign | Total Past Due | |||
Financing receivable recorded investment | |||
Loans | 3,621,000 | 1,028,000 | |
Foreign. | Foreign | 30 to 59 Days | |||
Financing receivable recorded investment | |||
Loans | 1,884,000 | 717,000 | |
Foreign. | Foreign | 60 to 89 Days | |||
Financing receivable recorded investment | |||
Loans | 848,000 | 23,000 | |
Foreign. | Foreign | 90 Days or Greater | |||
Financing receivable recorded investment | |||
Loans | $ 889,000 | $ 288,000 |
Allowance for Credit Losses (Po
Allowance for Credit Losses (Portfolio Credit Quality) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 USD ($) item | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Loan portfolio by credit quality indicator | |||
2023 | $ 3,364,226 | ||
2022 | 1,928,023 | $ 3,048,975 | |
2021 | 1,328,045 | 2,081,483 | |
2020 | 609,341 | 988,625 | |
2019 | 295,840 | 543,277 | |
2018/Prior | 533,486 | 468,848 | |
Prior | 299,395 | ||
Total loans | 8,058,961 | 7,430,603 | |
Current-period gross writeoffs | |||
Total | $ 10,184 | 9,479 | $ 9,024 |
Commercial Real Estate: other construction and land development | |||
Current-period gross writeoffs | |||
Number of loans downgraded | item | 2 | ||
Commercial real estate: farmland & commercial | |||
Current-period gross writeoffs | |||
Number of loans downgraded | item | 2 | ||
Commercial, financial and agricultural | |||
Loan portfolio by credit quality indicator | |||
Total loans | $ 4,802,622 | 4,373,373 | |
Commercial, financial and agricultural | Domestic | Commercial. | |||
Loan portfolio by credit quality indicator | |||
2023 | 811,918 | ||
2022 | 305,621 | 766,789 | |
2021 | 364,498 | 525,241 | |
2020 | 50,602 | 97,498 | |
2019 | 21,468 | 35,917 | |
2018/Prior | 74,123 | 43,841 | |
Prior | 29,468 | ||
Total loans | 1,628,230 | 1,498,754 | |
Current-period gross writeoffs | |||
Total | 9,664 | 9,050 | 8,083 |
Commercial, financial and agricultural | Domestic | Commercial. | Pass | |||
Loan portfolio by credit quality indicator | |||
2023 | 791,233 | ||
2022 | 272,919 | 736,462 | |
2021 | 364,271 | 524,879 | |
2020 | 50,602 | 96,401 | |
2019 | 21,468 | 35,917 | |
2018/Prior | 74,119 | 43,792 | |
Prior | 29,464 | ||
Total loans | 1,574,612 | 1,466,915 | |
Commercial, financial and agricultural | Domestic | Commercial. | Special Review | |||
Loan portfolio by credit quality indicator | |||
2023 | 7,613 | ||
2022 | 1,800 | 377 | |
2021 | 164 | 213 | |
Total loans | 9,577 | 590 | |
Commercial, financial and agricultural | Domestic | Commercial. | Watch List - Pass | |||
Loan portfolio by credit quality indicator | |||
2023 | 11,865 | ||
Total loans | 11,865 | ||
Commercial, financial and agricultural | Domestic | Commercial. | Watch List - Substandard | |||
Loan portfolio by credit quality indicator | |||
2023 | 1,180 | ||
2022 | 92 | 161 | |
2021 | 28 | 149 | |
2020 | 143 | ||
2018/Prior | 4 | 49 | |
Total loans | 1,304 | 502 | |
Commercial, financial and agricultural | Domestic | Commercial. | Watch List - Doubtful | |||
Loan portfolio by credit quality indicator | |||
2023 | 27 | ||
2022 | 30,810 | 29,789 | |
2021 | 35 | ||
2020 | 954 | ||
Prior | 4 | ||
Total loans | 30,872 | 30,747 | |
Commercial, financial and agricultural | Domestic | Commercial. | Current Period Gross Write-Offs | |||
Loan portfolio by credit quality indicator | |||
2023 | 7,053 | ||
2022 | 2,187 | ||
2021 | 155 | ||
2020 | 264 | ||
2019 | 2 | ||
2018/Prior | 3 | ||
Total loans | 9,664 | ||
Commercial, financial and agricultural | Domestic | Commercial Real Estate: other construction and land development | Watch List - Substandard | |||
Loan portfolio by credit quality indicator | |||
2023 | 25,230 | ||
Total loans | 25,230 | ||
Commercial, financial and agricultural | Domestic | Commercial real estate: farmland & commercial | |||
Loan portfolio by credit quality indicator | |||
2023 | 1,040,592 | ||
2022 | 631,029 | 833,401 | |
2021 | 419,048 | 584,381 | |
2020 | 270,009 | 511,194 | |
2019 | 184,248 | 232,633 | |
2018/Prior | 248,627 | 325,214 | |
Prior | 81,295 | ||
Total loans | 2,793,553 | 2,568,118 | |
Current-period gross writeoffs | |||
Total | 16 | 364 | |
Commercial, financial and agricultural | Domestic | Commercial real estate: farmland & commercial | Pass | |||
Loan portfolio by credit quality indicator | |||
2023 | 888,878 | ||
2022 | 628,653 | 811,117 | |
2021 | 415,458 | 584,134 | |
2020 | 267,705 | 456,200 | |
2019 | 184,164 | 232,537 | |
2018/Prior | 248,626 | 325,214 | |
Prior | 81,295 | ||
Total loans | 2,633,484 | 2,490,497 | |
Commercial, financial and agricultural | Domestic | Commercial real estate: farmland & commercial | Special Review | |||
Loan portfolio by credit quality indicator | |||
2023 | 5,205 | ||
2022 | 2,855 | ||
2021 | 3,357 | ||
2020 | 842 | ||
Total loans | 8,562 | 3,697 | |
Commercial, financial and agricultural | Domestic | Commercial real estate: farmland & commercial | Watch List - Pass | |||
Loan portfolio by credit quality indicator | |||
2023 | 16,654 | ||
2022 | 87 | 17,060 | |
2021 | 233 | 247 | |
Total loans | 16,974 | 17,307 | |
Commercial, financial and agricultural | Domestic | Commercial real estate: farmland & commercial | Watch List - Substandard | |||
Loan portfolio by credit quality indicator | |||
2023 | 129,644 | ||
2022 | 2,201 | 2,275 | |
2020 | 2,304 | 54,152 | |
2019 | 84 | 96 | |
2018/Prior | 1 | ||
Total loans | 134,234 | 56,523 | |
Commercial, financial and agricultural | Domestic | Commercial real estate: farmland & commercial | Watch List - Doubtful | |||
Loan portfolio by credit quality indicator | |||
2023 | 211 | ||
2022 | 88 | 94 | |
Total loans | 299 | 94 | |
Commercial, financial and agricultural | Domestic | Commercial real estate: multifamily | |||
Loan portfolio by credit quality indicator | |||
2023 | 123,523 | ||
2022 | 94,647 | 127,797 | |
2021 | 42,081 | 87,469 | |
2020 | 73,652 | 59,035 | |
2019 | 10,743 | 12,026 | |
2018/Prior | 36,193 | 5,490 | |
Prior | 14,684 | ||
Total loans | 380,839 | 306,501 | |
Commercial, financial and agricultural | Domestic | Commercial real estate: multifamily | Pass | |||
Loan portfolio by credit quality indicator | |||
2023 | 123,523 | ||
2022 | 94,551 | 127,680 | |
2021 | 42,081 | 87,469 | |
2020 | 73,652 | 59,035 | |
2019 | 10,743 | 12,026 | |
2018/Prior | 36,193 | 5,490 | |
Prior | 14,684 | ||
Total loans | 380,743 | 306,384 | |
Commercial, financial and agricultural | Domestic | Commercial real estate: multifamily | Watch List - Doubtful | |||
Loan portfolio by credit quality indicator | |||
2022 | 96 | 117 | |
2021 | |||
2020 | |||
2019 | |||
2018/Prior | |||
Prior | |||
Total loans | 96 | 117 | |
Obligations of states and political subdivisions | |||
Loan portfolio by credit quality indicator | |||
Total loans | 2,091,622 | 1,989,669 | |
Obligations of states and political subdivisions | Domestic | Commercial Real Estate: other construction and land development | |||
Loan portfolio by credit quality indicator | |||
2023 | 966,695 | ||
2022 | 687,012 | 933,657 | |
2021 | 324,238 | 666,754 | |
2020 | 96,400 | 173,918 | |
2019 | 14,058 | 175,106 | |
2018/Prior | 3,219 | 35,069 | |
Prior | 5,165 | ||
Total loans | 2,091,622 | 1,989,669 | |
Current-period gross writeoffs | |||
Total | 2 | 2 | |
Obligations of states and political subdivisions | Domestic | Commercial Real Estate: other construction and land development | Pass | |||
Loan portfolio by credit quality indicator | |||
2023 | 938,739 | ||
2022 | 674,037 | 913,675 | |
2021 | 324,238 | 666,347 | |
2020 | 96,400 | 173,824 | |
2019 | 14,058 | 174,897 | |
2018/Prior | 3,219 | 35,069 | |
Prior | 5,165 | ||
Total loans | 2,050,691 | 1,968,977 | |
Obligations of states and political subdivisions | Domestic | Commercial Real Estate: other construction and land development | Special Review | |||
Loan portfolio by credit quality indicator | |||
2022 | |||
2021 | |||
2020 | |||
2019 | 209 | ||
2018/Prior | |||
Prior | |||
Total loans | 209 | ||
Obligations of states and political subdivisions | Domestic | Commercial Real Estate: other construction and land development | Watch List - Doubtful | |||
Loan portfolio by credit quality indicator | |||
2023 | 2,726 | ||
2022 | 12,975 | 19,982 | |
2021 | 407 | ||
2020 | 94 | ||
Total loans | 15,701 | 20,483 | |
Real estate - mortgage | |||
Loan portfolio by credit quality indicator | |||
Total loans | 938,901 | 865,994 | |
Real estate - mortgage | Domestic | Residential: first lien | |||
Loan portfolio by credit quality indicator | |||
2023 | 180,127 | ||
2022 | 83,661 | 138,848 | |
2021 | 68,409 | 82,826 | |
2020 | 39,935 | 49,591 | |
2019 | 27,499 | 40,985 | |
2018/Prior | 78,401 | 33,814 | |
Prior | 79,660 | ||
Total loans | 478,032 | 425,724 | |
Current-period gross writeoffs | |||
Total | 43 | 160 | 373 |
Real estate - mortgage | Domestic | Residential: first lien | Pass | |||
Loan portfolio by credit quality indicator | |||
2023 | 180,127 | ||
2022 | 83,568 | 138,771 | |
2021 | 68,082 | 82,466 | |
2020 | 39,935 | 49,591 | |
2019 | 27,499 | 40,985 | |
2018/Prior | 78,306 | 33,814 | |
Prior | 79,660 | ||
Total loans | 477,517 | 425,287 | |
Real estate - mortgage | Domestic | Residential: first lien | Watch List - Substandard | |||
Loan portfolio by credit quality indicator | |||
2021 | 327 | 360 | |
2018/Prior | 95 | ||
Total loans | 422 | 360 | |
Real estate - mortgage | Domestic | Residential: first lien | Watch List - Doubtful | |||
Loan portfolio by credit quality indicator | |||
2022 | 93 | 77 | |
Total loans | 93 | 77 | |
Real estate - mortgage | Domestic | Residential: first lien | Current Period Gross Write-Offs | |||
Loan portfolio by credit quality indicator | |||
2018/Prior | 43 | ||
Total loans | 43 | ||
Real estate - mortgage | Domestic | Residential Junior Lien | |||
Loan portfolio by credit quality indicator | |||
2023 | 88,628 | ||
2022 | 76,845 | 92,256 | |
2021 | 96,411 | 109,127 | |
2020 | 76,490 | 91,130 | |
2019 | 34,870 | 41,273 | |
2018/Prior | 87,625 | 21,975 | |
Prior | 84,509 | ||
Total loans | 460,869 | 440,270 | |
Current-period gross writeoffs | |||
Total | 298 | 28 | 25 |
Real estate - mortgage | Domestic | Residential Junior Lien | Pass | |||
Loan portfolio by credit quality indicator | |||
2023 | 88,628 | ||
2022 | 76,845 | 92,256 | |
2021 | 96,411 | 108,815 | |
2020 | 76,490 | 91,130 | |
2019 | 34,870 | 41,273 | |
2018/Prior | 87,625 | 21,975 | |
Prior | 84,509 | ||
Total loans | 460,869 | 439,958 | |
Real estate - mortgage | Domestic | Residential Junior Lien | Watch List - Doubtful | |||
Loan portfolio by credit quality indicator | |||
2021 | 312 | ||
Total loans | 312 | ||
Real estate - mortgage | Domestic | Residential Junior Lien | Current Period Gross Write-Offs | |||
Loan portfolio by credit quality indicator | |||
2018/Prior | 298 | ||
Total loans | 298 | ||
Consumer | |||
Loan portfolio by credit quality indicator | |||
Total loans | 45,121 | 41,592 | |
Consumer | Domestic | |||
Loan portfolio by credit quality indicator | |||
2023 | 36,639 | ||
2022 | 5,366 | 31,962 | |
2021 | 1,043 | 6,603 | |
2020 | 237 | 897 | |
2019 | 157 | 489 | |
2018/Prior | 1,679 | 28 | |
Prior | 1,613 | ||
Total loans | 45,121 | 41,592 | |
Current-period gross writeoffs | |||
Total | 179 | 223 | 176 |
Consumer | Domestic | Pass | |||
Loan portfolio by credit quality indicator | |||
2023 | 36,639 | ||
2022 | 5,366 | 31,962 | |
2021 | 1,043 | 6,603 | |
2020 | 237 | 897 | |
2019 | 157 | 489 | |
2018/Prior | 1,679 | 28 | |
Prior | 1,613 | ||
Total loans | 45,121 | 41,592 | |
Consumer | Domestic | Current Period Gross Write-Offs | |||
Loan portfolio by credit quality indicator | |||
2023 | 54 | ||
2022 | 115 | ||
2021 | 9 | ||
2019 | 1 | ||
Total loans | 179 | ||
Foreign. | |||
Loan portfolio by credit quality indicator | |||
Total loans | 180,695 | 159,975 | |
Foreign. | Foreign | |||
Loan portfolio by credit quality indicator | |||
2023 | 116,104 | ||
2022 | 43,842 | 124,265 | |
2021 | 12,317 | 19,082 | |
2020 | 2,016 | 5,362 | |
2019 | 2,797 | 4,848 | |
2018/Prior | 3,619 | 3,417 | |
Prior | 3,001 | ||
Total loans | 180,695 | 159,975 | |
Current-period gross writeoffs | |||
Total | $ 1 | ||
Foreign. | Foreign | Pass | |||
Loan portfolio by credit quality indicator | |||
2023 | 116,104 | ||
2022 | 43,842 | 124,265 | |
2021 | 12,317 | 19,082 | |
2020 | 2,016 | 5,362 | |
2019 | 2,797 | 4,848 | |
2018/Prior | 3,619 | 3,417 | |
Prior | 3,001 | ||
Total loans | $ 180,695 | $ 159,975 |
Bank Premises and Equipment (De
Bank Premises and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Bank premises and equipment | ||
Less: accumulated depreciation | $ (579,387) | $ (556,665) |
Bank premises and equipment, net | 437,094 | 431,612 |
Bank buildings and improvements [Member] | ||
Bank premises and equipment | ||
Bank premises and equipment, gross | $ 582,075 | 571,665 |
Bank buildings and improvements [Member] | Minimum | ||
Bank premises and equipment | ||
Estimated useful lives | 5 years | |
Bank buildings and improvements [Member] | Maximum [Member] | ||
Bank premises and equipment | ||
Estimated useful lives | 39 years | |
Furniture equipment and Vehicles [Member] | ||
Bank premises and equipment | ||
Bank premises and equipment, gross | $ 325,855 | 307,990 |
Furniture equipment and Vehicles [Member] | Minimum | ||
Bank premises and equipment | ||
Estimated useful lives | 1 year | |
Furniture equipment and Vehicles [Member] | Maximum [Member] | ||
Bank premises and equipment | ||
Estimated useful lives | 20 years | |
Land [Member] | ||
Bank premises and equipment | ||
Bank premises and equipment, gross | $ 108,551 | $ 108,622 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Identified intangible assets | |||
Carrying Amount | $ 60,697,000 | $ 60,697,000 | |
Accumulated Amortization | 60,697,000 | 60,697,000 | |
Amortization expense | 0 | 0 | $ 0 |
Changes in carrying amount of goodwill | 0 | 0 | |
Core Deposits [Member] | |||
Identified intangible assets | |||
Carrying Amount | 58,675,000 | 58,675,000 | |
Accumulated Amortization | 58,675,000 | 58,675,000 | |
Contractual Rights [Member] | |||
Identified intangible assets | |||
Carrying Amount | 2,022,000 | 2,022,000 | |
Accumulated Amortization | $ 2,022,000 | $ 2,022,000 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Demand non-interest bearing | |||
Domestic | $ 4,126,635 | $ 4,744,299 | |
Foreign | 904,210 | 1,101,756 | |
Total demand non-interest bearing | 5,030,845 | 5,846,055 | |
Savings and interest-bearing demand | |||
Domestic | 3,161,411 | 3,448,717 | |
Foreign | 1,207,121 | 1,297,051 | |
Total savings and interest-bearing demand | 4,368,532 | 4,745,768 | |
$100,000 or more | |||
Time, certificate of deposit | 1,867,129 | ||
Less than $100,000 | |||
Domestic | 289,565 | 276,660 | |
Foreign | 268,483 | 246,832 | |
Total time, certificates of deposit | 2,425,177 | 2,068,184 | |
Total deposits | 11,824,554 | 12,660,007 | |
Savings and interest-bearing demand | |||
Domestic | 42,148 | 9,196 | $ 3,268 |
Foreign | 18,189 | 3,490 | 842 |
Total savings and interest-bearing demand | 60,337 | 12,686 | 4,110 |
$100,000 or more | |||
Domestic | 18,597 | 5,528 | 6,652 |
Foreign | 25,471 | 3,867 | 3,452 |
Less than $100,000 | |||
Domestic | 4,592 | 1,027 | 984 |
Foreign | 4,498 | 735 | 567 |
Total time, certificates of deposit | 53,158 | 11,157 | 11,655 |
Total interest expense on deposits | 113,495 | 23,843 | $ 15,765 |
Domestic | |||
$100,000 or more | |||
Time, certificate of deposit | 763,419 | 652,073 | |
Foreign | |||
$100,000 or more | |||
Time, certificate of deposit | $ 1,103,710 | $ 892,619 |
Deposits (Scheduled Maturities)
Deposits (Scheduled Maturities) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Scheduled maturities of time deposits | ||
2024 | $ 2,301,914 | |
2025 | 85,385 | |
2026 | 23,102 | |
2027 | 14,200 | |
2028 | 573 | |
Thereafter | 3 | |
Total time, certificates of deposit | 2,425,177 | $ 2,068,184 |
Time Deposits 250,000 or exceed | 749,169,000 | $ 585,456,000 |
Scheduled maturities of time deposits in amounts of $100,000 or more | ||
Due within 3 months or less | 859,734 | |
Due after 3 months and within 6 months | 517,994 | |
Due after 6 months and within 12 months | 409,193 | |
Due after 12 months | 80,208 | |
Total | $ 1,867,129 |
Securities Sold Under Repurch_3
Securities Sold Under Repurchase Agreements (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Collateral Securities and Repurchase Borrowing agreements | ||
Average outstanding amount | $ 469,152,000 | $ 476,877,000 |
Maximum amount outstanding at any month end | 544,418,000 | 513,368,000 |
Collateralized Securities, Book Value of Securities Sold | 694,112,000 | 685,343,000 |
Collateralized securities, Fair Value of Securities Sold | 609,701,000 | 576,605,000 |
Repurchase Borrowing, Balance of Liability | $ 530,416,000 | $ 431,191,000 |
Repurchase Borrowing, Weighted Average Interest Rate (as a percent) | 3.78% | 1.60% |
Maturity Overnight [Member] | ||
Collateral Securities and Repurchase Borrowing agreements | ||
Collateralized Securities, Book Value of Securities Sold | $ 667,647,000 | $ 664,491,000 |
Collateralized securities, Fair Value of Securities Sold | 587,673,000 | 559,637,000 |
Repurchase Borrowing, Balance of Liability | $ 518,650,000 | $ 419,703,000 |
Repurchase Borrowing, Weighted Average Interest Rate (as a percent) | 3.76% | 1.61% |
Maturity up to 30 days [Member] | ||
Collateral Securities and Repurchase Borrowing agreements | ||
Collateralized Securities, Book Value of Securities Sold | $ 24,842,000 | |
Collateralized securities, Fair Value of Securities Sold | 20,454,000 | |
Repurchase Borrowing, Balance of Liability | $ 10,696,000 | |
Repurchase Borrowing, Weighted Average Interest Rate (as a percent) | 4.50% | |
Maturity over 90 days [Member] | ||
Collateral Securities and Repurchase Borrowing agreements | ||
Collateralized Securities, Book Value of Securities Sold | $ 1,623,000 | $ 20,852,000 |
Collateralized securities, Fair Value of Securities Sold | 1,574,000 | 16,968,000 |
Repurchase Borrowing, Balance of Liability | $ 1,070,000 | $ 11,488,000 |
Repurchase Borrowing, Weighted Average Interest Rate (as a percent) | 4% | 1.32% |
Other Borrowed Funds (Details)
Other Borrowed Funds (Details) | 12 Months Ended | |
Dec. 31, 2023 USD ($) loan | Dec. 31, 2022 USD ($) | |
Federal Home Loan Bank advances | ||
Other borrowed funds | $ 10,745,000 | $ 10,944,000 |
Long-term Debt [Member] | ||
Federal Home Loan Bank advances | ||
Other borrowed funds | $ 10,745,000 | $ 10,944,000 |
Rate on balance outstanding at year end (as a percent) | 2.61% | 2.61% |
Average daily balance | $ 10,837,000 | $ 386,924,000 |
Average rate (as a percent) | 2.61% | 1.75% |
Maximum amount outstanding at any month end | $ 10,928,000 | $ 436,122,000 |
Long-term Debt [Member] | Federal Home Loan Bank non-amortizing advances | ||
Federal Home Loan Bank advances | ||
Other borrowed funds | $ 425,000,000 | |
Long-term Debt [Member] | Federal Home Loan Bank amortizing advances | ||
Federal Home Loan Bank advances | ||
Number of amortizing advances | loan | 2 | |
Amortizing in 2024 | $ 204,000 | |
Amortizing in 2025 | 210,000 | |
Amortizing in 2026 | 215,000 | |
Amortizing in 2027 | 221,000 | |
Amortizing in 2028 | 227,000 | |
Long-term Debt [Member] | Federal Home Loan Bank advances maturing December 2033 | ||
Federal Home Loan Bank advances | ||
Other borrowed funds | 2,914,000 | |
Long-term Debt [Member] | Federal Home Loan Bank advances maturing November 2033 | ||
Federal Home Loan Bank advances | ||
Other borrowed funds | $ 7,831,000 |
Junior Subordinated Interest _3
Junior Subordinated Interest Deferrable Debentures (Details) | 12 Months Ended | |
Dec. 31, 2023 USD ($) item | Dec. 31, 2022 USD ($) | |
Junior Subordinated Interest Deferrable Debentures | ||
Number of statutory business trusts issuing trust preferred securities | item | 4 | |
Junior subordinated deferrable interest debentures | $ | $ 108,868,000 | $ 134,642,000 |
Maximum number of consecutive quarterly period available for deferral of interest payment on Trusts IX, X, XI and XII | item | 20 | |
Percentage of capital securities issued by trust qualifying as Tier I capital, maximum | 25% | |
Percentage of capital securities issued by trust qualifying as Tier II capital, minimum | 25% | |
Capital securities issued by the trust, qualifying as Tier I capital | $ | $ 108,868,000 | $ 134,642,000 |
Junior Subordinated Interest _4
Junior Subordinated Interest Deferrable Debentures (Key Information) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Junior subordinated interest deferrable debentures, major types of business trusts | ||
Junior subordinated deferrable interest debentures | $ 108,868,000 | $ 134,642,000 |
Trust IX | ||
Junior subordinated interest deferrable debentures, major types of business trusts | ||
Junior subordinated deferrable interest debentures | $ 41,238,000 | |
Interest rate (as a percent) | 7.28% | |
Interest rate index | SOFR | |
Spread on interest rate index (as a percent) | 1.62% | |
Trust X | ||
Junior subordinated interest deferrable debentures, major types of business trusts | ||
Junior subordinated deferrable interest debentures | $ 21,021,000 | |
Interest rate (as a percent) | 7.29% | |
Interest rate index | SOFR | |
Spread on interest rate index (as a percent) | 1.65% | |
Trust XI | ||
Junior subordinated interest deferrable debentures, major types of business trusts | ||
Junior subordinated deferrable interest debentures | $ 25,990,000 | |
Interest rate (as a percent) | 7.28% | |
Interest rate index | SOFR | |
Spread on interest rate index (as a percent) | 1.62% | |
Trust XII | ||
Junior subordinated interest deferrable debentures, major types of business trusts | ||
Junior subordinated deferrable interest debentures | $ 20,619,000 | |
Interest rate (as a percent) | 7.09% | |
Interest rate index | SOFR | |
Spread on interest rate index (as a percent) | 1.45% |
Earnings per Share ("EPS") (Det
Earnings per Share ("EPS") (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Basic EPS | |||
Net income available to common shareholders | $ 411,768 | $ 300,232 | $ 253,922 |
Shares (Denominator) | 62,082,827 | 62,658,414 | 63,352,737 |
Per Share Amount | $ 6.63 | $ 4.79 | $ 4.01 |
Diluted EPS | |||
Net income available to common shareholders | $ 411,768 | $ 300,232 | $ 253,922 |
Potential dilutive common shares | 138,774 | 151,820 | 133,629 |
Shares (Denominator) | 62,221,601 | 62,810,234 | 63,486,366 |
Per Share Amount (in dollars per share) | $ 6.62 | $ 4.78 | $ 4 |
Employees' Profit Sharing Plan
Employees' Profit Sharing Plan (Details) - Deferred Profit Sharing [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Employees' profit sharing plan | |||
Minimum period of continuous employment to be fully vested | 1 year | ||
Profit sharing costs | $ 4,011 | $ 4,300 | $ 3,550 |
International Operations (Detai
International Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Loans and Leases Receivable, Other Information [Abstract] | ||||
Loans | $ 8,058,961 | $ 7,430,603 | ||
Less allowance for credit losses | (157,069) | (125,972) | $ (110,374) | $ (109,059) |
Net loans | 7,901,892 | 7,304,631 | ||
Accrued interest receivable | 65,302 | 45,787 | ||
International Banking Services [Member] | ||||
Loans and Leases Receivable, Other Information [Abstract] | ||||
Accrued interest receivable | 876 | 515 | ||
Outstanding standby and commercial letters of credit | 147,551 | 131,254 | ||
Revenues | 8,212 | 4,821 | $ 4,090 | |
International Banking Services [Member] | Foreign | ||||
Loans and Leases Receivable, Other Information [Abstract] | ||||
Loans | 180,695 | 159,975 | ||
Less allowance for credit losses | (1,283) | (968) | ||
Net loans | 179,412 | 159,007 | ||
International Banking Services [Member] | Foreign | Commercial | ||||
Loans and Leases Receivable, Other Information [Abstract] | ||||
Loans | 106,241 | 103,748 | ||
International Banking Services [Member] | Foreign | Others | ||||
Loans and Leases Receivable, Other Information [Abstract] | ||||
Loans | $ 74,454 | $ 56,227 |
Income Taxes (Current and Defer
Income Taxes (Current and Deferred Portions of Net Income Tax Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current | |||
U.S. | $ 82,657 | $ 66,670 | $ 59,591 |
State | 6,137 | 5,118 | 5,272 |
Total current taxes | 88,794 | 71,788 | 64,863 |
Deferred | |||
U.S. | 23,001 | 10,555 | 3,794 |
State | (51) | 64 | (252) |
Total deferred taxes | 22,950 | 10,619 | 3,542 |
Total income taxes | $ 111,744 | $ 82,407 | $ 68,405 |
Income Taxes (Income Tax Expens
Income Taxes (Income Tax Expense Differences from the Amount Computed by Applying the U.S. Federal Income Tax Rate) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Taxes | |||
U.S. Federal income tax rate (as a percent) | 21% | 21% | 21% |
Reasons for the difference of income tax expense | |||
Computed expected tax expense | $ 110,065 | $ 80,893 | $ 68,011 |
Change in taxes resulting from: | |||
Tax-exempt interest income | (3,663) | (2,433) | (2,970) |
State tax, net of federal income taxes and tax credit and refunds | 4,808 | 4,094 | 3,966 |
Other investment income | (2,761) | (1,391) | (1,753) |
Net investment expense, low-income housing investment | 1,974 | 1,906 | 203 |
Other | 1,321 | (662) | 948 |
Total income taxes | $ 111,744 | $ 82,407 | $ 68,405 |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets and Deferred Tax Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Loans receivable, principally due to the allowance for probable loan losses | $ 32,136 | $ 25,982 |
Other real estate owned | 1,649 | 1,194 |
Accrued expenses | 581 | 186 |
Net unrealized losses on available for sale investment securities | 110,584 | 130,586 |
Other | 1,352 | 2,308 |
Total deferred tax assets | 146,302 | 160,256 |
Deferred tax liabilities: | ||
Bank premises and equipment, principally due to differences on depreciation | (14,879) | (13,615) |
Impairment charges on available-for-securities | (19) | (19) |
Identified intangible assets and goodwill | (14,151) | (14,125) |
Partnership investment pass through | (58,376) | (30,319) |
Other | (3,321) | (3,555) |
Total deferred tax liabilities | 90,746 | 61,633 |
Net deferred tax asset | $ 55,556 | $ 98,623 |
Stock Options and Stock Appre_3
Stock Options and Stock Appreciation Rights - Options (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Apr. 05, 2012 | |
Employee Stock Option | ||||
Stock option details | ||||
Shares available for future grants | 800,000 | |||
Maximum exercisable period for granted share-based compensation | 10 years | |||
Black-Scholes-Merton option valuation model assumptions | ||||
Expected Life (Years) | 7 years | |||
Dividend yield (as a percent) | 3.08% | |||
Interest rate (as a percent) | 1.94% | |||
Volatility (as a percent) | 37.78% | |||
Stock option activity | ||||
Options outstanding at the beginning of the period (in shares) | 461,822 | |||
Less: | ||||
Options exercised (in shares) | (46,444) | |||
Options forfeited (in shares) | (31,513) | |||
Options outstanding at the end of the period (in shares) | 383,865 | 461,822 | ||
Options fully vested and exercisable at the end of the period (in shares) | 232,143 | |||
Stock Options, Weighted average exercise price | ||||
Options outstanding at the beginning, weighted average exercise price (in dollars per share) | $ 29.67 | |||
Less: | ||||
Options exercised, weighted average exercise price (in dollars per share) | 25.12 | |||
Options forfeited, weighted average exercise price (in dollars per share) | 24.52 | |||
Options outstanding at the end, weighted average exercise price (in dollars per share) | 30.65 | $ 29.67 | ||
Options fully vested and exercisable at the end, weighted average exercise price (in dollars per share) | $ 27.80 | |||
Stock Options, Weighted average remaining contractual term (years) | ||||
Options outstanding at the end, weighted average remaining contractual term (years) | 3 years 5 months 1 day | |||
Options fully vested and exercisable at the end, weighted average remaining contractual term (years) | 1 year 11 months 15 days | |||
Stock Options, Aggregate intrinsic value | ||||
Options outstanding at the end, aggregate intrinsic value | $ 9,088,000 | |||
Options fully vested and exercisable at the end, aggregate intrinsic value | 6,157,000 | |||
Stock-based compensation expense | 330,000 | $ 449,000 | $ 506,000 | |
Stock-based compensation cost, unrecognized | $ 507,000 | |||
Stock-based compensation cost, unrecognized, weighted-average period of recognition | 1 year 3 months 18 days | |||
Other information pertaining to option activity | ||||
Weighted average grant date fair value of stock options granted (in dollars per share) | $ 11.24 | $ 10.20 | ||
Total fair value of stock options vested | $ 514,000 | $ 514,000 | $ 1,308,000 | |
Total intrinsic value of stock options exercised | $ 1,060,000 | $ 1,670,000 | $ 2,536,000 | |
Incentive Stock Options to 10 Percent Shareholders | ||||
Stock option details | ||||
Maximum exercisable period for granted share-based compensation | 5 years |
Stock Options and Stock Appre_4
Stock Options and Stock Appreciation Rights - SARs (Details) - Stock Appreciation Rights (SARs) - USD ($) | 12 Months Ended | ||
Apr. 18, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Stock option details | |||
Shares available for future grants | 750,000 | ||
Maximum exercisable period for granted share-based compensation | 10 years | ||
Number of rights issued | 465,250 | ||
Vesting period | 8 years | ||
SARs | |||
Outstanding beginning balance | 489,250 | ||
Granted | 465,250 | ||
Forfeited | (24,000) | ||
Outstanding ending balance | 465,250 | 489,250 | |
Weighted average exercise price | |||
Weighted average exercise price, beginning balance (per share) | $ 39.35 | ||
Weighted average exercise price, forfeited (per share) | 39.33 | ||
Weighted average exercise price, ending balance (per share) | $ 39.35 | $ 39.35 | |
Aggregate intrinsic value | |||
Aggregate intrinsic value | $ 6,964,000 | ||
Weighted average remaining contractual term (years) | 8 years 6 months | ||
Fair Value of Liability | $ 1,464,000 | $ 546,000 | |
Stock-based compensation expense | 918,000 | $ 546,000 | |
Stock-based compensation cost, unrecognized | $ 5,090,000 | ||
Stock-based compensation cost, unrecognized, weighted-average period of recognition | 8 years 6 months |
Transactions with Related Par_2
Transactions with Related Parties (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Transactions with Related Parties | ||
Receivables from related parties | $ 13,335,000 | $ 28,708,000 |
Financial Instruments with Of_3
Financial Instruments with Off-Statement of Condition Risk and Concentrations of Credit Risk (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Maximum [Member] | ||
Financial amounts of instruments, whose contract amounts represent credit risks | ||
Credit risk commitment, maximum expiration date | 1 year | |
Commitments to Extend Credit [Member] | ||
Financial amounts of instruments, whose contract amounts represent credit risks | ||
Outstanding amount of financial instruments whose, contract amounts represent credit risks | $ 3,340,280 | |
Credit card lines [Member] | ||
Financial amounts of instruments, whose contract amounts represent credit risks | ||
Outstanding amount of financial instruments whose, contract amounts represent credit risks | 14,181 | |
Standby Letters of Credit [Member] | ||
Financial amounts of instruments, whose contract amounts represent credit risks | ||
Outstanding amount of financial instruments whose, contract amounts represent credit risks | 147,190 | |
Guarantee obligations, maximum exposure | 147,190,000 | |
Commercial Letters of Credit [Member] | ||
Financial amounts of instruments, whose contract amounts represent credit risks | ||
Outstanding amount of financial instruments whose, contract amounts represent credit risks | 361 | |
Unsecured Letters of Credit [Member] | ||
Financial amounts of instruments, whose contract amounts represent credit risks | ||
Unsecured letters of credit | $ 23,677,000 | $ 40,249,000 |
Capital Requirements (Details)
Capital Requirements (Details) | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Capital Ratios | |
Dividend payable by subsidiaries, maximum | $ 1,229,500,000 |
Capital Requirements (Capital A
Capital Requirements (Capital Amounts and Ratios) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Parent Company | ||
Capital Requirements | ||
Common Equity Tier 1 Capital (to Risk Weighted Assets), Actual Amount | $ 2,563,130 | $ 2,232,723 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), Actual Ratio (as a percent) | 0.2172% | 0.2021% |
Total Capital (to Risk Weighted Assets), Actual Amount | $ 2,790,171 | $ 2,455,468 |
Total Capital (to Risk Weighted Assets), Actual Ratio (as a percent) | 0.2365 | 0.2222 |
Tier 1 Capital (to Risk Weighted Assets), Actual Amount | $ 2,642,492 | $ 2,324,903 |
Tier 1 capital (to Risk Weighted Assets), Actual Ratio (as a percent) | 0.2239 | 0.2104 |
Tier 1 Capital (to Average Assets), Actual Amount | $ 2,642,492 | $ 2,324,903 |
Tier 1 capital (to Average Assets), Actual Ratio (as a percent) | 0.1746 | 0.1459 |
Parent Company | Minimum | ||
Capital Requirements | ||
Common Equity Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount | $ 825,968 | $ 773,398 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent) | 0.07% | 0.07% |
Total Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount | $ 1,238,952 | $ 1,160,096 |
Total Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent) | 0.10500 | 0.10500 |
Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount | $ 1,002,961 | $ 939,126 |
Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent) | 0.08500 | 0.08500 |
Tier 1 Capital (to Average Assets), For Capital Adequacy Purposes Amount | $ 605,262 | $ 637,578 |
Tier 1 Capital (to Average Assets), For Capital Adequacy Purposes Ratio (as a percent) | 0.0400 | 0.0400 |
International Bank of Commerce Laredo | ||
Capital Requirements | ||
Common Equity Tier 1 Capital (to Risk Weighted Assets), Actual Amount | $ 1,444,775 | $ 1,310,616 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), Actual Ratio (as a percent) | 0.1854% | 0.1807% |
Total Capital (to Risk Weighted Assets), Actual Amount | $ 1,542,462 | $ 1,401,298 |
Total Capital (to Risk Weighted Assets), Actual Ratio (as a percent) | 0.1979 | 0.1932 |
Tier 1 Capital (to Risk Weighted Assets), Actual Amount | $ 1,444,775 | $ 1,310,616 |
Tier 1 capital (to Risk Weighted Assets), Actual Ratio (as a percent) | 0.1854 | 0.1807 |
Tier 1 Capital (to Average Assets), Actual Amount | $ 1,444,775 | $ 1,310,616 |
Tier 1 capital (to Average Assets), Actual Ratio (as a percent) | 0.1640 | 0.1309 |
International Bank of Commerce Laredo | Minimum | ||
Capital Requirements | ||
Common Equity Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount | $ 545,611 | $ 507,625 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 506,639 | $ 471,366 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent) | 0.07% | 0.07% |
Common Equity Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 0.065% | 0.065% |
Total Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount | $ 818,416 | $ 761,438 |
Total Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 779,444 | $ 725,179 |
Total Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent) | 0.10500 | 0.10500 |
Total Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 0.1000 | 0.1000 |
Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount | $ 662,527 | $ 616,402 |
Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 623,555 | $ 580,143 |
Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent) | 0.08500 | 0.08500 |
Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 0.0800 | 0.0800 |
Tier 1 Capital (to Average Assets), For Capital Adequacy Purposes Amount | $ 352,412 | $ 400,489 |
Tier 1 Capital (to Average Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 440,515 | $ 500,611 |
Tier 1 Capital (to Average Assets), For Capital Adequacy Purposes Ratio (as a percent) | 0.0400 | 0.0400 |
Tier 1 Capital (to Average Assets), To Be well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 0.0500 | 0.0500 |
International Bank of Commerce Brownsville | ||
Capital Requirements | ||
Common Equity Tier 1 Capital (to Risk Weighted Assets), Actual Amount | $ 477,390 | $ 232,689 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), Actual Ratio (as a percent) | 0.2441% | 0.2117% |
Total Capital (to Risk Weighted Assets), Actual Amount | $ 500,268 | $ 243,739 |
Total Capital (to Risk Weighted Assets), Actual Ratio (as a percent) | 0.2558 | 0.2218 |
Tier 1 Capital (to Risk Weighted Assets), Actual Amount | $ 477,390 | $ 232,689 |
Tier 1 capital (to Risk Weighted Assets), Actual Ratio (as a percent) | 0.2441 | 0.2117 |
Tier 1 Capital (to Average Assets), Actual Amount | $ 477,390 | $ 232,689 |
Tier 1 capital (to Average Assets), Actual Ratio (as a percent) | 0.1179 | 0.1348 |
International Bank of Commerce Brownsville | Minimum | ||
Capital Requirements | ||
Common Equity Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount | $ 136,883 | $ 76,941 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 127,106 | $ 71,445 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent) | 0.07% | 0.07% |
Common Equity Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 0.065% | 0.065% |
Total Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount | $ 205,325 | $ 115,412 |
Total Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 195,547 | $ 109,916 |
Total Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent) | 0.10500 | 0.10500 |
Total Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 0.1000 | 0.1000 |
Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount | $ 166,215 | $ 93,429 |
Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 156,438 | $ 87,933 |
Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent) | 0.08500 | 0.08500 |
Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 0.0800 | 0.0800 |
Tier 1 Capital (to Average Assets), For Capital Adequacy Purposes Amount | $ 161,919 | $ 69,028 |
Tier 1 Capital (to Average Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 202,398 | $ 86,286 |
Tier 1 Capital (to Average Assets), For Capital Adequacy Purposes Ratio (as a percent) | 0.0400 | 0.0400 |
Tier 1 Capital (to Average Assets), To Be well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 0.0500 | 0.0500 |
International Bank Of Commerce Oklahoma | ||
Capital Requirements | ||
Common Equity Tier 1 Capital (to Risk Weighted Assets), Actual Amount | $ 232,965 | $ 363,093 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), Actual Ratio (as a percent) | 0.2072% | 0.2086% |
Total Capital (to Risk Weighted Assets), Actual Amount | $ 247,031 | $ 383,804 |
Total Capital (to Risk Weighted Assets), Actual Ratio (as a percent) | 0.2197 | 0.2205 |
Tier 1 Capital (to Risk Weighted Assets), Actual Amount | $ 232,965 | $ 363,093 |
Tier 1 capital (to Risk Weighted Assets), Actual Ratio (as a percent) | 0.2072 | 0.2086 |
Tier 1 Capital (to Average Assets), Actual Amount | $ 232,965 | $ 363,093 |
Tier 1 capital (to Average Assets), Actual Ratio (as a percent) | 0.1472 | 0.0895 |
International Bank Of Commerce Oklahoma | Minimum | ||
Capital Requirements | ||
Common Equity Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount | $ 78,718 | $ 121,855 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 73,095 | $ 113,151 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent) | 0.07% | 0.07% |
Common Equity Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 0.065% | 0.065% |
Total Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount | $ 118,076 | $ 182,782 |
Total Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 112,454 | $ 174,078 |
Total Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent) | 0.10500 | 0.10500 |
Total Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 0.1000 | 0.1000 |
Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount | $ 95,586 | $ 147,966 |
Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 89,963 | $ 139,262 |
Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent) | 0.08500 | 0.08500 |
Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 0.0800 | 0.0800 |
Tier 1 Capital (to Average Assets), For Capital Adequacy Purposes Amount | $ 63,294 | $ 162,246 |
Tier 1 Capital (to Average Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 79,117 | $ 202,808 |
Tier 1 Capital (to Average Assets), For Capital Adequacy Purposes Ratio (as a percent) | 0.0400 | 0.0400 |
Tier 1 Capital (to Average Assets), To Be well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 0.0500 | 0.0500 |
Commerce Bank | ||
Capital Requirements | ||
Common Equity Tier 1 Capital (to Risk Weighted Assets), Actual Amount | $ 97,334 | $ 71,418 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), Actual Ratio (as a percent) | 0.3657% | 0.377% |
Total Capital (to Risk Weighted Assets), Actual Amount | $ 100,660 | |
Total Capital (to Risk Weighted Assets), Actual Ratio (as a percent) | 0.3782 | 0.3876 |
Tier 1 Capital (to Risk Weighted Assets), Actual Amount | $ 97,334 | $ 73,420 |
Tier 1 capital (to Risk Weighted Assets), Actual Ratio (as a percent) | 0.3657 | 0.3770 |
Tier 1 Capital (to Average Assets), Actual Amount | $ 97,334 | $ 71,418 |
Tier 1 capital (to Average Assets), Actual Ratio (as a percent) | 0.1450 | 0.1500 |
Commerce Bank | Minimum | ||
Capital Requirements | ||
Common Equity Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount | $ 18,628 | $ 13,261 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 17,298 | $ 12,314 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent) | 0.07% | 0.07% |
Common Equity Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 0.065% | 0.065% |
Total Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount | $ 27,943 | $ 19,892 |
Total Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 26,612 | $ 18,945 |
Total Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent) | 0.10500 | 0.10500 |
Total Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 0.1000 | 0.1000 |
Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount | $ 22,620 | $ 16,103 |
Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 21,290 | $ 15,156 |
Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent) | 0.08500 | 0.08500 |
Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 0.0800 | 0.0800 |
Tier 1 Capital (to Average Assets), For Capital Adequacy Purposes Amount | $ 26,858 | $ 19,048 |
Tier 1 Capital (to Average Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 33,572 | $ 23,811 |
Tier 1 Capital (to Average Assets), For Capital Adequacy Purposes Ratio (as a percent) | 0.0400 | 0.0400 |
Tier 1 Capital (to Average Assets), To Be well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 0.0500 | 0.0500 |
International Bank of Commerce Zapata | ||
Capital Requirements | ||
Common Equity Tier 1 Capital (to Risk Weighted Assets), Actual Amount | $ 64,110 | $ 98,087 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), Actual Ratio (as a percent) | 0.3118% | 0.4226% |
Total Capital (to Risk Weighted Assets), Actual Amount | $ 66,680 | $ 100,798 |
Total Capital (to Risk Weighted Assets), Actual Ratio (as a percent) | 0.3243 | 0.4343 |
Tier 1 Capital (to Risk Weighted Assets), Actual Amount | $ 64,110 | $ 98,087 |
Tier 1 capital (to Risk Weighted Assets), Actual Ratio (as a percent) | 0.3118 | 0.4226 |
Tier 1 Capital (to Average Assets), Actual Amount | $ 64,110 | $ 98,087 |
Tier 1 capital (to Average Assets), Actual Ratio (as a percent) | 0.1326 | 0.1439 |
International Bank of Commerce Zapata | Minimum | ||
Capital Requirements | ||
Common Equity Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount | $ 14,394 | $ 16,248 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 13,366 | $ 15,088 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent) | 0.07% | 0.07% |
Common Equity Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 0.065% | 0.065% |
Total Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount | $ 21,591 | $ 24,372 |
Total Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 20,563 | $ 23,212 |
Total Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent) | 0.10500 | 0.10500 |
Total Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 0.1000 | 0.1000 |
Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount | $ 17,478 | $ 19,730 |
Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 16,450 | $ 18,569 |
Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent) | 0.08500 | 0.08500 |
Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 0.0800 | 0.0800 |
Tier 1 Capital (to Average Assets), For Capital Adequacy Purposes Amount | $ 19,338 | $ 27,270 |
Tier 1 Capital (to Average Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 24,172 | $ 34,088 |
Tier 1 Capital (to Average Assets), For Capital Adequacy Purposes Ratio (as a percent) | 0.0400 | 0.0400 |
Tier 1 Capital (to Average Assets), To Be well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 0.0500 | 0.0500 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value By Level) (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Assets: | ||
Available for sale debt securities | $ 4,822,341,000 | $ 4,417,796,000 |
Equity Securities | 5,417,000 | 5,358,000 |
Estimate of Fair Value Measurement | ||
Assets: | ||
Available for sale debt securities | 4,822,341,000 | 4,417,796,000 |
Estimate of Fair Value Measurement | US Treasury Securities | ||
Assets: | ||
Available for sale debt securities | 49,393,000 | |
Estimate of Fair Value Measurement | Residential mortgage-backed securities | ||
Assets: | ||
Available for sale debt securities | 4,660,099,000 | 4,209,212,000 |
Estimate of Fair Value Measurement | States and political subdivisions | ||
Assets: | ||
Available for sale debt securities | 162,242,000 | 159,191,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 | ||
Assets: | ||
Equity Securities | 5,417,000 | 5,358,000 |
Marketable Securities | 5,417,000 | 5,358,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 | ||
Assets: | ||
Marketable Securities | 4,822,341,000 | 4,417,796,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 | US Treasury Securities | ||
Assets: | ||
Available for sale debt securities | 49,393,000 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 | Residential mortgage-backed securities | ||
Assets: | ||
Available for sale debt securities | 4,660,099,000 | 4,209,212,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 | States and political subdivisions | ||
Assets: | ||
Available for sale debt securities | 162,242,000 | 159,191,000 |
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value Measurement | ||
Assets: | ||
Equity Securities | 5,417,000 | 5,358,000 |
Marketable Securities | 4,827,758,000 | 4,423,154,000 |
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value Measurement | US Treasury Securities | ||
Assets: | ||
Available for sale debt securities | 49,393,000 | |
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value Measurement | Residential mortgage-backed securities | ||
Assets: | ||
Available for sale debt securities | 4,660,099,000 | 4,209,212,000 |
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value Measurement | States and political subdivisions | ||
Assets: | ||
Available for sale debt securities | $ 162,242,000 | $ 159,191,000 |
Fair Value Measurements (Fair_2
Fair Value Measurements (Fair Value Measurement and Assumptions) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Non-financial assets: | |||
Other real estate owned | $ 26,728,000 | $ 30,144,000 | |
Assumptions used in discounted cash flow model to determine fair value of investments classified within level 3 | |||
Doubtful and Impaired commercial collateral dependent loans | 46,491,000 | 51,326,000 | |
Impaired commercial collateral dependent receivables appraisals to determine fair value within immediately preceding twelve months | 1,272,000 | 0 | |
Impaired collateral dependent commercial loans with internal evaluation completed within last twelve months | 35,061,000 | 51,326,000 | |
Charges to allowance for probable loan losses in connection with other real estate owned | 0 | 2,000 | $ 2,000 |
Adjustment to fair value in connection with other real estate owned | 2,538,000 | 1,627,000 | $ 2,655,000 |
Fair Value, Measurements, Nonrecurring | |||
Assumptions used in discounted cash flow model to determine fair value of investments classified within level 3 | |||
Change in net provision, impaired loans | 10,221,000 | 2,346,000 | |
Change in net provision, other real estate owned | 2,538,000 | 1,627,000 | |
Fair Value, Measurements, Nonrecurring | Fair Value, Inputs, Level 3 | |||
Assets: | |||
Watch-List doubtful loans | 46,124,000 | 30,743,000 | |
Non-financial assets: | |||
Other real estate owned | 307,000 | 5,653,000 | |
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | |||
Assets: | |||
Watch-List doubtful loans | 46,124,000 | 30,743,000 | |
Non-financial assets: | |||
Other real estate owned | $ 307,000 | $ 5,653,000 |
Fair Value Measurements (Other
Fair Value Measurements (Other Assumptions) (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Deposits | ||
Carrying amount of time deposits | $ 2,425,177,000 | $ 2,068,184,000 |
Fair Value, Inputs, Level 3 | ||
Loans | ||
Carrying amount of fixed rate performing loans | 1,199,347,000 | 1,203,381,000 |
Estimated fair value of fixed rate performing loans | 1,073,892,000 | 1,100,848,000 |
Deposits | ||
Carrying amount of time deposits | 2,425,177,000 | 2,068,184,000 |
Estimated fair value of time deposits | 2,428,681,000 | 2,076,231,000 |
Fair Value, Inputs, Level 2 | ||
Other borrowed funds | ||
Carrying amount of the long-term FHLB borrowings | 10,745,000 | 10,944,000 |
Estimated fair value of long-term FHLB borrowings | $ 10,745,000 | $ 10,944,000 |
International Bancshares Corp_7
International Bancshares Corporation (Parent Company Only) Financial Information Statements of Condition (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
ASSETS | ||||
Other investments | $ 343,452,000 | $ 358,910,000 | ||
Notes loans | 7,901,892,000 | 7,304,631,000 | ||
Goodwill | 282,532,000 | 282,532,000 | ||
Other assets | 250,215,000 | 263,137,000 | ||
Total assets | 15,066,189,000 | 15,501,476,000 | ||
Liabilities: | ||||
Junior subordinated deferrable interest debentures | 108,868,000 | 134,642,000 | ||
Other liabilities | 143,832,000 | 219,933,000 | ||
Total liabilities | 12,618,415,000 | 13,456,717,000 | ||
Shareholders' equity: | ||||
Common shares | 96,467,000 | 96,420,000 | ||
Surplus | 155,511,000 | 154,061,000 | ||
Retained earnings | 3,029,088,000 | 2,695,567,000 | ||
Accumulated other comprehensive income (loss) | (397,889,000) | (470,497,000) | ||
Total shareholders' equity before treasury stock | 2,883,177,000 | 2,475,551,000 | ||
Less cost of shares in treasury | (435,403,000) | (430,792,000) | ||
Total shareholders' equity | 2,447,774,000 | 2,044,759,000 | $ 2,308,481,000 | $ 2,177,998,000 |
Total liabilities and shareholders' equity | 15,066,189,000 | 15,501,476,000 | ||
Parent Company | Reportable Legal Entities | ||||
ASSETS | ||||
Cash | 105,184,000 | 89,263,000 | ||
Other investments | 111,382,000 | 114,901,000 | ||
Notes loans | 62,150,000 | 42,519,000 | ||
Investment in subsidiaries | 2,281,952,000 | 1,933,269,000 | ||
Goodwill | 3,365,000 | 3,365,000 | ||
Other assets | 8,617,000 | 7,181,000 | ||
Total assets | 2,572,650,000 | 2,190,498,000 | ||
Liabilities: | ||||
Junior subordinated deferrable interest debentures | 108,868,000 | 134,642,000 | ||
Due to IBC Trading | 21,000 | 21,000 | ||
Other liabilities | 15,987,000 | 11,076,000 | ||
Total liabilities | 124,876,000 | 145,739,000 | ||
Shareholders' equity: | ||||
Common shares | 96,467,000 | 96,420,000 | ||
Surplus | 155,511,000 | 154,061,000 | ||
Retained earnings | 3,029,088,000 | 2,695,567,000 | ||
Accumulated other comprehensive income (loss) | (397,889,000) | (470,497,000) | ||
Total shareholders' equity before treasury stock | 2,883,177,000 | 2,475,551,000 | ||
Less cost of shares in treasury | (435,403,000) | (430,792,000) | ||
Total shareholders' equity | 2,447,774,000 | 2,044,759,000 | ||
Total liabilities and shareholders' equity | $ 2,572,650,000 | $ 2,190,498,000 |
International Bancshares Corp_8
International Bancshares Corporation (Parent Company Only) Financial Information Statements of Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Expenses: | |||
Interest expense (Debentures) | $ 8,123 | $ 5,037 | $ 2,791 |
Provision for credit loss | 34,576 | 21,651 | 7,955 |
Income before federal income taxes and equity in undistributed net income of subsidiaries | 523,512 | 382,639 | 322,327 |
Income tax (benefit) expense | 111,744 | 82,407 | 68,405 |
Net income | 411,768 | 300,232 | 253,922 |
Parent Company | Reportable Legal Entities | |||
Income: | |||
Dividends from subsidiaries | 179,000 | 222,175 | 80,882 |
Interest income on notes receivable | 5,769 | 2,394 | 1,139 |
(Loss) income on other investments | (6,150) | 8,662 | 9,662 |
Other | 4 | 857 | 58 |
Total income | 178,623 | 234,088 | 91,741 |
Expenses: | |||
Interest expense (Debentures) | 8,122 | 5,037 | 2,792 |
Provision for credit loss | 500 | 437 | |
Other | 252 | 2,291 | 2,272 |
Total expenses | 8,874 | 7,765 | 5,064 |
Income before federal income taxes and equity in undistributed net income of subsidiaries | 169,749 | 226,323 | 86,677 |
Income tax (benefit) expense | (1,365) | 504 | 1,358 |
Income before equity in undistributed net income of subsidiaries | 171,114 | 225,819 | 85,319 |
Equity in undistributed net income of subsidiaries | 240,654 | 74,413 | 168,603 |
Net income | $ 411,768 | $ 300,232 | $ 253,922 |
International Bancshares Corp_9
International Bancshares Corporation (Parent Company Only) Financial Information Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Operating activities: | |||
Net Income (Loss) | $ 411,768 | $ 300,232 | $ 253,922 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision for credit loss | 34,576 | 21,651 | 7,955 |
Unrealized (gain) loss on equity securities with readily determinable fair values | (59) | 721 | 123 |
Stock compensation expense | 330 | 449 | 506 |
Increase (decrease) in other liabilities | 10,757 | 42,018 | (5,519) |
Net cash provided by operating activities | 474,432 | 387,941 | 291,681 |
Investing activities: | |||
Net cash used in investing activities | (1,067,206) | (992,028) | (915,889) |
Financing activities: | |||
Redemption of long-term debt | (25,774) | ||
Proceeds from stock transactions | 1,167 | 1,537 | 2,414 |
Payments of cash dividends - common | (78,247) | (75,375) | (72,838) |
Purchase of treasury stock | (4,611) | (52,048) | (716) |
Net cash (used in) provided by financing activities | (843,892) | (517,431) | 1,836,212 |
(Decrease) increase in cash and cash equivalents | (1,436,666) | (1,121,518) | 1,212,004 |
Cash and cash equivalents at beginning of period | 2,087,724 | 3,209,242 | 1,997,238 |
Cash and cash equivalents at end of period | 651,058 | 2,087,724 | 3,209,242 |
Parent Company | Reportable Legal Entities | |||
Operating activities: | |||
Net Income (Loss) | 411,768 | 300,232 | 253,922 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision for credit loss | 500 | 437 | |
Unrealized (gain) loss on equity securities with readily determinable fair values | (14) | 36 | (51) |
Stock compensation expense | 330 | 449 | 506 |
Increase (decrease) in other liabilities | 4,911 | 1,743 | (8,084) |
Equity in undistributed net income of subsidiaries | (240,654) | (74,413) | (168,603) |
Net cash provided by operating activities | 176,841 | 228,484 | 77,690 |
Investing activities: | |||
Net decrease (increase) in notes receivable | (20,170) | (32,556) | 1,549 |
Increase in other assets and other investments | (33,285) | (43,343) | (11,787) |
Net cash used in investing activities | (53,455) | (75,899) | (10,238) |
Financing activities: | |||
Redemption of long-term debt | (25,774) | ||
Proceeds from stock transactions | 1,167 | 1,537 | 2,414 |
Payments of cash dividends - common | (78,247) | (75,375) | (72,838) |
Purchase of treasury stock | (4,611) | (52,048) | (716) |
Net cash (used in) provided by financing activities | (107,465) | (125,886) | (71,140) |
(Decrease) increase in cash and cash equivalents | 15,921 | 26,699 | (3,688) |
Cash and cash equivalents at beginning of period | 89,263 | 62,564 | 66,252 |
Cash and cash equivalents at end of period | $ 105,184 | $ 89,263 | $ 62,564 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net Income (Loss) | $ 411,768 | $ 300,232 | $ 253,922 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |