International Bancshares Corp.’s earnings took a $14.2 million hit related to a judgment rendered against the company.
International Bancshares Corp. (IBC) is the holding company of IBC Bank-San Antonio.
On March 5, the U.S. District Court for the Western District of Oklahoma entered a judgment against IBC. The dispute involved claims by the former controlling shareholders of Local Financial Corp. in 2003. IBC inherited the liability once it bought Local Financial in 2004. The case involved $14 million in tax refunds received by IBC based on deductions taken in 2003 by Local Financial. The Oklahoma City lender took the deductions in connection with losses on loans from a failed thrift. IBC executives said in a press statement that they are disappointed with the judgment but intend to appeal the court decision.
IBC reported net income of $28.8 million, or 42 cents per diluted share, for the quarter ended March 31, 2010. This compares to net income of $34.3 million, or 50 cents per diluted share, for the same period a year ago.
Total assets were $10.8 billion as of March 31, 2010, compared to $11.8 billion as of Dec. 31, 2009. The decrease in total assets was primarily due to the sale of mortgage-backed securities to facilitate a re-positioning of the company’s investment portfolio. Net loans were $5.5 billion as of March 31, 2010, compared to $5.6 billion as of Dec. 31, 2009. Deposits were $7.5 billion as of March 31, 2010, compared to $7.2 billion as of Dec. 31, 2009.
IBC is a multi-bank financial holding company headquartered in Laredo, Texas. The company has 279 facilities and more than 430 ATMs serving 105 communities in Texas and Oklahoma.