1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies
10qk
10qk
Articles 

International Bancshares Corp. Reports Operating Results (10-Q)

August 05, 2010 | About:

International Bancshares Corp. (NASDAQ:IBOC) filed Quarterly Report for the period ended 2010-06-30.

International Bancshares Corp. has a market cap of $1.22 billion; its shares were traded at around $17.9 with a P/E ratio of 9.8 and P/S ratio of 1.7. The dividend yield of International Bancshares Corp. stocks is 2%. International Bancshares Corp. had an annual average earning growth of 6.7% over the past 10 years. GuruFocus rated International Bancshares Corp. the business predictability rank of 3.5-star.

Highlight of Business Operations:

· Make permanent the $250,000 limit for federal deposit insurance and increase the cash limit of Securities Investor Protection Corporation protection from $100,000 to $250,000 and provide unlimited federal deposit insurance until January 1, 2013 for non-interest bearing demand transaction accounts at all insured depository institutions.

Net income available to common shareholders for the second quarter of 2010 increased by 10.2% and net income available to common shareholders for the six months ended June 30, 2010 decreased by 4.3% as compared to the same periods in 2009. Net income for the six months ended June 30, 2010 was positively affected by investment securities sales totaling $20 million, net of tax. The sales of the securities were to facilitate a re-positioning of the Companys investment portfolio. Net income was negatively affected by a dispute related to certain tax matters that were inherited by the Company in its 2004 acquisition of LFIN. The dispute involves claims by the former controlling shareholders of LFIN related to approximately $14 million of tax refunds received by the Company based on deductions taken in 2003 by LFIN in connection with losses on loans acquired from a failed thrift and a dispute LFIN had with the FDIC regarding the tax benefits related to the failed thrift acquisition which originated in 1988. On March 5, 2010, judgment was entered on a jury verdict rendered against the Company in the U.S. District Court for the Western District of Oklahoma. Other than the tax refunds that are in dispute, the Company does not have any other disputes regarding tax refunds received by the Company in connection with the LFIN acquisition. While judgment has been entered in the case, certain additional issues related to fees and other matters are to be determined by the Court in the future prior to the judgment becoming final and appealable. Company management is currently reviewing the judgment, its implications and the Companys intention to appeal, as well as, take other paths of action to mitigate the impact of the judgment. The Company is disappointed with the judgment but believes it has a number of valid grounds for appeal which it intends to pursue. During the first quarter of 2010, the Company recorded an additional reserve of $14.2 million, after tax, related to this matter. As of June 30, 2010, the Company has determined that the reserve currently established for this matter is still appropriate. Management will continue to review the developments in this dispute and make appropriate adjustments to the amount reserved, as needed.

Read the The complete Report

About the author:

10qk
Charlie Tian, Ph.D., is the founder of GuruFocus. You can now order his book Invest Like a Guru on Amazon.

Rating: 2.0/5 (1 vote)

Comments

Please leave your comment:



Performances of the stocks mentioned by 10qk


User Generated Screeners


pjmason14Momentum
pascal.van.garsseHigh FCF-M2
kosalmmuse6
kosalmmuseBest one1
DBrizanall 2019Feb26
kosalmmuseBest one
DBrizanall 2019Feb25
kosalmmuseNice
kosalmmusehan
MsDale*52-Week Low
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)