International Bancshares in Laredo, Texas, has redeemed another chunk of the money it received from the Troubled Asset Relief Program.
The $11.6 billion-asset company on Thursday repaid the Treasury Department $45 million of the $176 million it owes, plus accrued dividends of $475,000. The company initially received $216 million, but repaid $40 million in July 2011. The company said in a press release Friday that it plans to redeem the remaining $131 million by June 30, 2013, though the repayment will depend on the board’s view of economic conditions at that time.
"We are pleased to make this partial repurchase of the Tarp preferred stock while still retaining our strong capital position and without issuing any common stock or incurring any company debt," Dennis E. Nixon, the company's chairman and president, said in the release.
International Bancshares is exceedingly well capitalized, but the partial redemption lower its total risk-based capital ratio to 22.92%, from 24.29% at June 30, on a pro forma basis.
