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Capital Requirements
 12 Months Ended
Dec. 31, 2013
Capital Requirements  
Capital Requirements

(20) Capital Requirements

        On December 23, 3008, as part of the Troubled Asset Relief Program Capital Purchase Program (the "TARP Capital Purchase Program") of the United States Department of the Treasury ("Treasury"), the Company issued to the Treasury, in exchange for aggregate consideration of $216 million, (i) 216,000 shares of the Company's fixed-rate cumulative perpetual preferred stock, Series A, par value $.01 per share (the "Senior Preferred Stock"), having a liquidation preference of $1,000 per share and (ii) a warrant to purchase 1,326,238 shares of the Company's common stock at a price per share of $24.43 and with a term of ten years (the "Warrant"). The Senior Preferred Stock paid a coupon rate of 5% of the first five years and 9% per year thereafter.

        On November 28, 2012, the Company completed the repurchase of all of the 216,000 shares of the Senior Preferred Stock held by Treasury. The Company commenced the $216 million repayment during the third quarter of 2012 and completed the final payment in the fourth quarter of 2012. The Company paid a total of $41,520,139 in preferred stock dividends to the U.S. Treasury from December of 2008 to November 28, 2012. On June 12, 2013, the U.S. Treasury sold the Warrant to a third party. As of February 19, 2014, the Warrant is still outstanding.

        Bank regulatory agencies limit the amount of dividends, which the bank subsidiaries can pay the Corporation, through IBC Subsidiary Corporation, without obtaining prior approval from such agencies. At December 31, 2013, the subsidiary banks could pay dividends of up to $584,000,000 to the Corporation without prior regulatory approval and without adversely affecting their "well-capitalized" status. In addition to legal requirements, regulatory authorities also consider the adequacy of the bank subsidiaries' total capital in relation to their deposits and other factors. These capital adequacy considerations also limit amounts available for payment of dividends. The Company historically has not allowed any subsidiary bank to pay dividends in such a manner as to impair its capital adequacy.

        The Company and the bank subsidiaries 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 the Company's consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company must meet specific capital guidelines that involve quantitative measures of the Company's assets, liabilities, and certain off-statement of condition items as calculated under regulatory accounting practices. The Company's capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.

        Quantitative measures established by regulation to ensure capital adequacy require the Company 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, 2013, that the Company and each of the bank subsidiaries met all capital adequacy requirements to which they are subject.

        As of December 31, 2013, the most recent notification from the Federal Deposit Insurance Corporation categorized all the bank subsidiaries as well-capitalized under the regulatory framework for prompt corrective action. To be categorized as "well-capitalized," the Company and the bank subsidiaries must maintain minimum Total risk-based, Tier 1 risk based, and Tier 1 leverage ratios as set forth in the table. There are no conditions or events since that notification that management believes have changed the categorization of the Company or any of the bank subsidiaries as well-capitalized.

        The Company's and the bank subsidiaries' actual capital amounts and ratios for 2013 are presented in the following table:

 
   Actual   For Capital Adequacy
Purposes		   To Be Well-Capitalized
Under Prompt Corrective
Action Provisions		  
 
   Amount   Ratio   Amount   Ratio   Amount   Ratio  
 
    
    
   (greater than
or equal to)
   (greater than
or equal to)
   (greater than
or equal to)
   (greater than
or equal to)
  
 
   (Dollars in Thousands)
  

As of December 31, 2013:

                                      

Total Capital (to Risk Weighted Assets):

    
 		    
 		    
 		    
 		    
 		    
 		  

Consolidated

  
$
1,442,837		    
20.36
%
$
566,870		    
8.00
%		  
N/A		    
N/A		  

International Bank of Commerce, Laredo

     1,035,189     16.96     488,303     8.00   $ 610,378     10.00 %

International Bank of Commerce, Brownsville

     143,879     27.63     41,652     8.00     52,065     10.00  

International Bank of Commerce, Zapata

     57,675     32.65     14,130     8.00     17,663     10.00  

Commerce Bank

     64,585     36.45     14,175     8.00     17,719     10.00  

Tier 1 Capital (to Risk Weighted Assets):

    
 		    
 		    
 		    
 		    
 		    
 		  

Consolidated

  
$
1,369,657		    
19.33
%
$
283,435		    
4.00
%		  
N/A		    
N/A		  

International Bank of Commerce, Laredo

     969,731     15.89     244,151     4.00   $ 366,227     6.00 %

International Bank of Commerce, Brownsville

     138,467     26.60     20,826     4.00     31,239     6.00  

International Bank of Commerce, Zapata

     56,459     31.96     7,065     4.00     10,598     6.00  

Commerce Bank

     63,491     35.83     7,087     4.00     10,631     6.00  

Tier 1 Capital (to Average Assets):

    
 		    
 		    
 		    
 		    
 		    
 		  

Consolidated

  
$
1,369,657		    
11.61
%
$
472,044		    
4.00
%
$
N/A		    
N/A		  

International Bank of Commerce, Laredo

     969,731     10.09     384,497     4.00     480,622     5.00 %

International Bank of Commerce, Brownsville

     138,467     13.33     41,553     4.00     51,942     5.00  

International Bank of Commerce, Zapata

     56,459     10.64     21,219     4.00     26,523     5.00  

Commerce Bank

     63,491     11.88     21,372     4.00     26,715     5.00  

        The Company's and the bank subsidiaries' actual capital amounts and ratios for 2012 are also presented in the following table:

 
   Actual   For Capital Adequacy
Purposes		   To Be Well-Capitalized
Under Prompt Corrective
Action Provisions		  
 
   Amount   Ratio   Amount   Ratio   Amount   Ratio  
 
    
    
   (greater than
or equal to)
   (greater than
or equal to)
   (greater than
or equal to)
   (greater than
or equal to)
  
 
   (Dollars in Thousands)
  

As of December 31, 2012:

                                      

Total Capital (to Risk Weighted Assets):

    
 		    
 		    
 		    
 		    
 		    
 		  

Consolidated

   $ 1,328,089     20.60 % $ 515,695     8.00 %   N/A     N/A  

International Bank of Commerce, Laredo

     945,384     17.19     440,038     8.00   $ 550,048     10.00 %

International Bank of Commerce, Brownsville

     128,788     27.36     37,659     8.00     47,074     10.00  

International Bank of Commerce, Zapata

     54,542     33.14     13,166     8.00     16,458     10.00  

Commerce Bank

     60,982     34.52     14,131     8.00     17,664     10.00  

Tier 1 Capital (to Risk Weighted Assets):

    
 		    
 		    
 		    
 		    
 		    
 		  

Consolidated

   $ 1,266,799     19.65 % $ 257,848     4.00 %   N/A     N/A  

International Bank of Commerce, Laredo

     892,888     16.23     220,019     4.00   $ 330,029     6.00 %

International Bank of Commerce, Brownsville

     123,361     26.21     18,830     4.00     28,245     6.00  

International Bank of Commerce, Zapata

     52,967     32.18     6,583     4.00     9,875     6.00  

Commerce Bank

     59,200     33.52     7,065     4.00     10,598     6.00  

Tier 1 Capital (to Average Assets):

    
 		    
 		    
 		    
 		    
 		    
 		  

Consolidated

   $ 1,266,799     10.86 % $ 466,624     4.00 % $ N/A     N/A  

International Bank of Commerce, Laredo

     892,888     9.26     385,621     4.00     482,026     5.00 %

International Bank of Commerce, Brownsville

     123,361     13.79     35,787     4.00     44,734     5.00  

International Bank of Commerce, Zapata

     52,967     10.64     19,918     4.00     24,897     5.00  

Commerce Bank

     59,200     11.27     21,004     4.00     26,255     5.00