International Bancshares Corporation
) has announced a 15% hike in its semi-annual cash dividend. The
company declared a dividend of 23 cents per share to be paid on
Oct 15 to shareholders of record as of Sep 30.
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Since 2009, International Bancshares has raised its semi-annual
dividend twice. The last time was in Mar 2012, when the dividend
was increased by nearly 5% to 20 cents per share. Earlier in
2010, the company raised the dividend approximately 12% to 19
During the financial crisis, International Bancshares slashed its
semi-annual dividend by almost 50% to 17 cents per share and took
$216 million of Troubled Asset Relief Program (TARP) money in Dec
2008. Notably, in November last year, the company exited the TARP
program. However, the Treasury still holds the warrants issued by
the company (when it took the TARP money).
Apart from regular dividend payments, International Bancshares
has an effective share repurchase policy in place. Every year
since Apr 2009, the company has been announcing the extension its
share buyback authorization of up to $40 million. As of Jul 31,
2013, the company had repurchased shares worth $23.8 million.
International Bancshares' steady capital deployment program
reflects its strong balance sheet position. As of Jun 30, 2013,
its Tier 1 capital ratio was 19.58% and leverage ratio was
11.65%. Also, the company's cash and due from banks was $239
million at the end of the second quarter.
International Bancshares will likely continue with its capital
deployment plans going forward. This will enable it to enhance
shareholders' confidence in the stock.
Some well-performing stocks in the banking sector include
Prosperity Bancshares Inc.
Southside Bancshares Inc.
East West Bancorp, Inc.
). While Prosperity Bancshares and Southside Bancshares both
carry a Zacks Rank #1 (Strong Buy), East West Bancorp has a Zacks
Rank #2 (Buy).