IBC-Zapata posts profitability growth of 116% for 2002

With all the economic uncertainty, falling Dow Jones and NASDAQ averages, IBC-Zapata has experienced a growth of assets from $216 million in 2001 to $305.5 million in 2002. Profitability also grew from $3.458 million in 2001 to $7.465 million in 2002, a whopping 116% in growth. Additionally, other comprehensive income grew from $1.582 million to $3.610 million, a 128% growth rate.
IBC-Zapata was opened on February 4, 1984 as a subsidiary bank of International Bancshares Corporation, a Laredo-based financial institution. Renato Ramirez has been the president of IBC-Zapata since the bank opened.
"We had superior performance for several reasons," said Ramirez. "First, we became very active in acquiring wholesale liabilities from the Federal Home Loan Bank at very low cost and investing them in Mortgage Backed Securities. Secondly, we made a deal with an Austin mortgage company to acquire home mortgages, increasing our loan portfolio to $72.2 million from $49.7 million one year ago, and finally, the free checking product has been very successful, generating substantial fee income."
Other activity that contributed to profitability was the check card, said Ramirez, which moves the bank another step towards a paperless society. He also cited the ATM network and on-line banking products as profitable products. "The IBC-Voice and IBC Link provide customer access to their accounts by phone and by computer connection. These technological innovations are a key to the growth of loans and deposit accounts," he said.
IBC-Zapata has branches in Roma, in Río Grande City, and in the Wal-Mart store in Río Grande City. The bank implemented extended hours with Saturday banking in all four branches and Sunday banking in the WalMart in-store bank.
"The year was not without its setbacks," said Ramirez of the death of IBC Zapata banker Richard San Roman last August. "He was a very valuable member of our team and our community. This is a tremendous loss not only to his family, but also to bank operations and the community. He was always available for the Boys and Girls Club, the County Fair, the Los Ebanos Golf Course, and the Casa Hogar Orphanage in Cd. Mier." Ramirez said the bank also lost a friend in the death of Gaylen Gilbreath, a director of the bank since 1984. "Mr. Gilbreath was a key player in establishing policy and direction for the bank," Ramirez said.
It will be difficult to grow the asset base and profitability as in the past, according to Ramirez. The asset base has grown from $125 million in 1997 to $305 million in 2002 and profitability has grown from $1.4 million in 1997 to $7.5 million in 2002. Customer retention and cross-selling activities, however, should allow a retention of current profitability.
Ramirez announced promotions and personnel changes at IBC-Zapata. "Mr. Ricardo X. Ramirez was hired as a loan officer for the Zapata office, and Mr. Heraclio (Laco) Flores was hired as a loan officer for the Rio Grande City branch."
Ricardo Ramirez is a member of the Zapata ISD Board of Trustees, the Zapata County Appraisal District Board, Los Ebanos Golf Course Board, and the Boys and Girls Club Board. He is a graduate of Texas A&M University and had worked with U.S. Liquids for the past eight years.
Heraclio Flores is originally from La Grulla and is a graduate of the University of Texas with a degree in accounting. He has worked in Austin for several accounting firms as an auditor and in tax return preparation.
"Ricardo and Laco will add significantly to the loan portfolio and the deposit base in coming years," said Ramirez.
"At IBC Zapata, we are proud of our record of community involvement," Ramirez said of the bank's donation of $232,000 in 2002 to such non-profits as the Boys and Girls Club, the Make-A-Wish Foundation, the National Hispanic Institute, the Antonio R. Sanchez Memorial Scholarship Fund, the National Hispanic Scholarship Fund, the Zapata County Fair, the Sacred Heart Orphanage, the Tejano Monument in Austin, United Way, and the Casa Hogar Orphanage. In addition to the donations, said Ramirez, IBC staff has contributed hundreds of hours of volunteer time to those organizations.