Intervest Bancshares (NASDAQ:IBCA)
Historical Stock Chart
5 Years : From May 2008 to May 2013
Intervest Bancshares Corporation (NASDAQ-GS: IBCA) (the "Company") today
reported net earnings for the fourth quarter of 2009 ("Q4-09") of $0.3
million, or $0.04 per diluted common share, compared to $0.5 million, or
$0.05 per share, for the fourth quarter of 2008 ("Q4-08"). The decrease
in net earnings was due to a $1.4 million increase in noninterest
expenses, a $1.2 million increase in the provision for loan losses, a
$0.5 million decrease in noninterest income and $0.4 million of dividend
requirements related to outstanding preferred stock held by the U.S.
Treasury under the TARP program. The aggregate of these items was
partially offset by a $2.9 million increase in net interest and dividend
income and a $0.4 million decrease in the provision for income tax
expense.
Net interest and dividend income increased to $12.1 million in Q4-09
from $9.2 million in Q4-08, reflecting an improved net interest margin.
The margin (excluding loan prepayment income) increased to 2.04% in
Q4-09 from 1.70% in Q4-08 due to lower rates paid on deposits and
adjustable-rate borrowings, the early retirement of higher cost
borrowings, a decrease in interest income not recorded on nonaccrual
loans and a $16 million increase in net interest earning assets. These
factors were partially offset by calls of higher yielding U.S.
government agency security investments (coupled with the reinvestment of
the proceeds into similar securities with lower interest rates). The
yield on the Company's interest-earning assets decreased by 58 basis
points to 5.25% in Q4-09, while its cost of funds decreased by 102 basis
points to 3.54% in Q4-09.
The provision for loan losses increased to $3.9 million in Q4-09 from
$2.7 million in Q4-08. The increase was attributable to downgrades of
internal risk ratings on both accrual and nonaccrual loans and lower
estimates of real estate values on certain collateral properties. The
Company continues to be negatively impacted by the weak economy, high
rates of unemployment, increased office and retail vacancy rates and
lower commercial real estate values, all of which have resulted in a
higher level of nonperforming assets and related carrying expenses,
increased loan and real estate loss provisions and foregone interest
income.
Noninterest income decreased to $0.1 million in Q4-09 from $0.6 million
in Q4-08, primarily due to a $0.9 million other than temporary
impairment charge on trust preferred security investments, partially
offset by a $0.3 million increase in income from the early repayment of
loans. The impairment charge is based on an assessment that it is
unlikely that a portion of the contractual principal and interest will
be received on those securities experiencing increased payment defaults.
At December 31, 2009, trust preferred security investments totaled $5.8
million.
Noninterest expenses increased to $7.3 million in Q4-09 from $5.9
million in Q4-08. The increase was primarily due to a $0.8 million
(208%) increase in FDIC insurance premiums due to higher rates imposed
on all FDIC insured banks and a $1.1 million increase in writedowns of
foreclosed real estate due to declining commercial real estate values.
These items were partially offset by a $0.2 million decrease in expenses
associated with nonperforming assets and $0.3 million of expense from
the early retirement of higher-cost, fixed-rate debentures in Q4-08 that
did not recur in Q4-09. The Company had 72 employees at both December
31, 2009 and 2008.
The provision for income tax expense decreased to $0.3 million in Q4-09
from $0.7 million in Q4-08. The decrease was primarily due to a $0.4
million refund of state income taxes paid in years prior to 2008. The
effective tax rate was 29% in Q4-09, compared to 59% in Q4-08. The 2009
rate was positively impacted by the tax refund, while the 2008 rate was
negatively impacted by the recording of a full year's impact of a
deductibility limit on contractually obligated executive compensation of
the Chairman resulting from the Company's subsequent participation in
TARP.
Net earnings for the full year 2009 as compared to 2008 decreased by
$5.7 million due to a $8.2 million increase in noninterest expenses, a
$4.7 million decrease in noninterest income and $1.6 million of
preferred stock dividend requirements, partially offset by a $4.1
million decrease in the provision for income taxes, a $4.4 million
increase in net interest and dividend income and a $0.3 million decrease
in the provision for loan losses.
Total assets at December 31, 2009 were $2.40 billion compared to $2.27
billion at December 31, 2008, reflecting an increase in security
investments, foreclosed real estate and prepaid FDIC insurance premiums,
partially offset by a decrease in overnight investments and loans
receivable.
Securities held to maturity increased by $159 million to $635 million at
December 31, 2009 and the portfolio had a weighted-average remaining
contractual maturity and a yield of 4.5 years and 2.73%, respectively.
Total loans receivable, net of unearned fees, amounted to $1.69 billion
at December 31, 2009, a $20 million decrease from $1.71 billion at
December 31, 2008. The decrease was due to the aggregate of $185 million
of principal repayments, $27.7 million of loans transferred to
foreclosed real estate and $8.1 million of loan chargeoffs exceeding
$200 million of new loan originations, nearly all of which are secured
by commercial real estate. The new loans are nearly all fixed-rate with
a weighted-average yield and term of 6.69% and 5.2 years, respectively.
New loan originations for 2008 amounted to $387 million.
Total nonperforming assets at December 31, 2009 amounted to $155.8
million, or 6.49% of total assets, compared $164.6 million, or 6.91% of
total assets at September 30, 2009 and $117.7 million, or 5.18%, at
December 31, 2008. At December 31, 2009, nonperforming assets were
comprised of $123.9 million of nonaccrual loans, or 34 loans, and $31.9
million of real estate acquired through foreclosure, or 10 properties.
At December 31, 2009, the Company also had $97.3 million of accruing
restructured loans (with a weighted average interest rate of 5.08%) on
which the Company has granted certain concessions to provide payment
relief generally consisting of the deferral of principal payments and/or
a partial reduction in interest payments for a period of time. The
Company continues to take various steps to resolve its nonaccrual loans,
including proceeding with foreclosures on many of the collateral
properties, working with certain borrowers to provide payment relief
and, in limited cases, accepting partial payment as full satisfaction of
a nonaccrual loan.
The total allowance for loan losses increased to $32.6 million at
December 31, 2009 from $28.5 million at December 31, 2008, due to $10.9
million of loan loss provisions and a $1.3 million partial recovery of a
prior chargeoff, partially offset by $8.1 million of new chargeoffs. The
allowance represented 1.94% of total loans (net of deferred fees) at
December 31, 2009, compared to 1.67% at December 31, 2008. At each date,
a SFAS 114 specific valuation allowance (included as part of the overall
allowance for loan losses) in the aggregate amount of $13.8 million and
$8.2 million, respectively, was maintained on total nonaccrual and
restructured loans.
Total deposits at December 31, 2009 increased to $2.03 billion from
$1.86 billion at December 31, 2008, reflecting an increase of $167
million in money market accounts. Total borrowed funds and related
interest payable at December 31, 2009 decreased to $118 million, from
$149 million at December 31, 2008, reflecting the early repayment of $40
million of higher cost debentures, partially offset by an $11 million
increase in lower cost short-term borrowings from the FHLBNY.
Total stockholders' equity at December 31, 2009 increased to $214.1
million from $212.0 million at December 31, 2008, primarily due to net
earnings of $1.5 million. At December 31, 2009, Intervest National
Bank's regulatory capital ratios were as follows: total capital to
risk-weighted assets – 14.04%, Tier 1 capital to risk-weighted assets –
12.79% and Tier 1 capital to total average assets (leverage ratio) –
10.05%. INB maintains capital ratios in excess of its current regulatory
requirements as well as those necessary to be designated as a
well-capitalized institution under applicable regulations.
Intervest Bancshares Corporation is a holding company. Its principal
operating subsidiary is Intervest National Bank, a nationally chartered
commercial bank that has its headquarters and full-service banking
office at One Rockefeller Plaza, in New York City, and a total of six
full-service banking offices in Clearwater and Gulfport, Florida.
Intervest National Bank maintains capital ratios in excess of the
regulatory requirements to be designated as a well-capitalized
institution. Intervest Bancshares Corporation's Class A Common Stock is
listed on the NASDAQ Global Select Market: Trading Symbol IBCA. This
press release may contain forward-looking information. Except for
historical information, the matters discussed herein are subject to
certain risks and uncertainties that may affect the Company's actual
results of operations. The following important factors, among others,
could cause actual results to differ materially from those set forth in
forward looking statements: changes in general economic conditions and
real estate values in the Company's market areas; changes in policies by
regulatory agencies; fluctuations in interest rates; demand for loans
and deposits; and competition. Reference is made to the Company's
filings with the SEC for further discussion of risks and uncertainties
regarding the Company's business. Historical results are not necessarily
indicative of the future prospects of the Company.
Selected Consolidated Financial Information Follows.
INTERVEST BANCSHARES CORPORATIONSelected
Consolidated Financial Information
(Dollars in thousands, except per share amounts)
Quarter Ended
Year Ended
December 31,
December 31,
Selected Operating Data:
2009
2008
2009
2008
Interest and dividend income
$
31,176
$
31,425
$
123,598
$
128,497
Interest expense
19,080
22,266
81,000
90,335
Net interest and dividend income
12,096
9,159
42,598
38,162
Provision for loan losses
3,926
2,696
10,865
11,158
Net interest and dividend income after provision for loan losses
8,170
6,463
31,733
27,004
Noninterest income
72
626
297
5,026
Noninterest expenses
7,255
5,882
27,084
18,873
Earnings before income taxes
987
1,207
4,946
13,157
Provision for income taxes
281
709
1,816
5,891
Net earnings before preferred dividend requirements
706
498
3,130
7,266
Preferred dividend requirements (1)
409
41
1,632
41
Net earnings available to common stockholders
$
297
$
457
$
1,498
$
7,225
Basic earnings per common share
$
0.04
$
0.05
$
0.18
$
0.87
Diluted earnings per common share
0.04
0.05
0.18
0.87
Cash dividends paid per common share
-
-
-
0.25
Average common shares used to calculate:
Basic earnings per common share
8,270,812
8,270,812
8,270,812
8,259,091
Diluted earnings per common share (2)
8,270,812
8,270,812
8,270,812
8,267,781
Common shares outstanding at end of period
8,270,812
8,270,812
8,270,812
8,270,812
Common stock options/warrants outstanding at end of period
1,019,722
959,512
1,019,722
959,512
Yield on interest-earning assets
5.25
%
5.83
%
5.32
%
6.01
%
Cost of funds
3.54
%
4.56
%
3.87
%
4.69
%
Net interest margin (3)
2.04
%
1.70
%
1.83
%
1.79
%
Return on average assets (annualized)
0.12
%
0.09
%
0.13
%
0.34
%
Return on average common equity (annualized)
1.49
%
1.07
%
1.65
%
3.94
%
Effective income tax rate
28.47
%
58.74
%
36.72
%
44.77
%
Efficiency ratio (4)
36
%
40
%
46
%
33
%
Total average loans outstanding
$
1,698,251
$
1,705,375
$
1,721,688
$
1,693,749
Total average securities outstanding
641,616
422,053
586,344
422,356
Total average short-term investments outstanding
17,652
18,320
14,544
20,297
Total average interest-earning assets outstanding
2,357,519
2,145,748
2,322,576
2,136,402
Total average assets outstanding
2,408,538
2,186,753
2,357,422
2,162,719
Total average interest-bearing deposits outstanding
$
2,031,381
$
1,783,380
$
1,972,982
$
1,770,989
Total average borrowings outstanding
108,067
160,664
117,856
156,017
Total average interest-bearing liabilities outstanding
2,139,448
1,944,044
2,090,838
1,927,006
Total average stockholders' equity
213,595
189,066
212,877
184,944
At Dec 31,
At Sep 30,
At Jun 30,
At Mar 31,
At Dec 31,
Selected Financial Condition Information:
2009
2009
2009
2009
2008
Total assets
$
2,401,204
$
2,382,170
$
2,380,044
$
2,317,613
$
2,271,833
Total cash and short-term investments
7,977
30,660
23,441
30,203
54,903
Total securities held to maturity
634,856
598,313
566,722
544,702
475,581
Total FRB and FHLB stock
10,708
9,929
9,929
9,657
8,901
Total loans, net of unearned fees
1,686,164
1,696,064
1,746,087
1,708,752
1,705,711
Total deposits
2,029,984
2,012,995
1,995,165
1,938,123
1,864,135
Total borrowed funds and accrued interest payable
118,552
107,547
118,035
122,194
149,566
Total preferred equity
23,466
23,370
23,273
23,177
23,080
Total common equity
190,588
190,249
189,864
189,440
188,894
Book value per common share
23.04
23.00
22.96
22.90
22.84
Total allowance for loan losses
$
32,640
$
31,815
$
32,054
$
30,371
$
28,524
Total loan recoveries for the quarter
25
-
1,329
-
-
Total loan chargeoffs for the quarter
3,126
2,635
2,332
10
-
Total accruing troubled debt restructurings (5)
97,311
71,156
76,210
30,586
-
Total loans ninety days past due and still accruing.
6,800
1,947
6,367
1,958
1,964
Total nonaccrual loans
123,877
131,742
129,784
119,305
108,610
Total foreclosed real estate
31,866
32,915
18,214
9,742
9,081
Allowance for loan losses/net loans
1.94
%
1.88
%
1.84
%
1.78
%
1.67
%
(1)
Represents accrued dividends on $25 million of 5% cumulative
preferred stock held by the U.S. Treasury and amortization of
related preferred stock discount.
(2)
Diluted EPS includes shares that would be outstanding if dilutive
common stock options/warrants were assumed to be exercised during
the period. Outstanding options/warrants are dilutive when their
exercise price is above the average market price of the Class A
common stock during the reporting periods.
(3)
Net interest margin is reported exclusive of income from loan
prepayments, which is included as a component of noninterest income.
(4)
Represents noninterest expenses (excluding provisions for loan and
real estate losses & real estate expenses) as a percentage of net
interest and dividend income plus noninterest income.
(5)
Represent loans whose terms have been modified mostly through the
deferral of principal and/or a partial reduction in interest
payments.
INTERVEST BANCSHARES CORPORATIONConsolidated
Financial Highlights
At or For The Period Ended
($ in thousands, except per share amounts)
Year
Ended
Dec 31,
2009
Year
Ended
Dec 31,
2008
Year
Ended
Dec 31,
2007
Year
Ended
Dec 31,
2006
Year
Ended
Dec 31,
2005
Balance Sheet Highlights:
Total assets
$
2,401,204
$
2,271,833
$
2,021,392
$
1,971,753
$
1,706,423
Asset growth rate
6
%
12
%
3
%
16
%
30
%
Total loans, net of unearned fees
1,686,164
1,705,711
1,614,032
1,490,653
1,367,986
Loan growth rate
-1
%
6
%
8
%
9
%
35
%
Total deposits
2,029,984
1,864,135
1,659,174
1,588,534
1,375,330
Deposit growth rate
9
%
12
%
4
%
16
%
38
%
Loans/deposits (Intervest National Bank)
79
%
85
%
88
%
84
%
88
%
Total borrowed funds and accrued interest payable.
118,552
149,566
136,434
172,909
155,725
Preferred equity
23,466
23,080
-
-
-
Common equity
190,588
188,894
179,561
170,046
136,178
Common book value per share
23.04
22.84
22.23
20.31
17.41
Market price per common share
3.28
3.99
17.22
34.41
24.04
Asset Quality Highlights
Nonaccrual loans
$
123,877
$
108,610
$
90,756
$
3,274
$
750
Foreclosed real estate
31,866
9,081
-
-
-
Accruing troubled debt restructurings (1)
97,311
-
-
-
-
Loans ninety days past due and still accruing
6,800
1,964
11,853
-
2,649
Allowance for loan losses
32,640
28,524
21,593
17,833
15,181
Loan recoveries
1,354
-
-
-
-
Loan chargeoffs
8,103
4,227
-
-
-
Allowance for loan losses/net loans
1.94
%
1.67
%
1.34
%
1.20
%
1.11
%
Statement of Operations Highlights:
Interest and dividend income
$
123,598
$
128,497
$
131,916
$
128,605
$
97,881
Interest expense
81,000
90,335
89,653
78,297
57,447
Net interest and dividend income
42,598
38,162
42,263
50,308
40,434
Provision for loan losses
10,865
11,158
3,760
2,652
4,075
Noninterest income
297
5,026
8,825
6,855
6,594
Noninterest expenses
27,084
18,873
12,876
13,027
10,703
Earnings before income taxes
4,946
13,157
34,452
41,484
32,250
Provision for income taxes
1,816
5,891
15,012
17,953
14,066
Net earnings before preferred dividend requirements
3,130
7,266
19,440
23,531
18,184
Preferred dividend requirements (2)
1,632
41
-
-
-
Net earnings available to common stockholders
$
1,498
$
7,225
$
19,440
$
23,531
$
18,184
Basic earnings per common share
$
0.18
$
0.87
$
2.35
$
2.98
$
2.65
Diluted earnings per common share
$
0.18
$
0.87
$
2.31
$
2.82
$
2.47
Adjusted net earnings used to calculate
diluted earnings per common share
$
1,498
$
7,225
$
19,484
$
23,679
$
18,399
Average common shares used to calculate:
Basic earnings per common share
8,270,812
8,259,091
8,275,539
7,893,489
6,861,887
Diluted earnings per common share
8,270,812
8,267,781
8,422,017
8,401,379
7,449,658
Common shares outstanding
8,270,812
8,270,812
8,075,812
8,371,595
7,823,058
Net interest margin (3)
1.83
%
1.79
%
2.11
%
2.75
%
2.70
%
Return on average assets
0.13
%
0.34
%
0.96
%
1.28
%
1.20
%
Return on average common equity
1.65
%
3.94
%
11.05
%
15.82
%
16.91
%
Effective income tax rate
36.72
%
44.77
%
43.57
%
43.28
%
43.62
%
Efficiency ratio (4)
46
%
33
%
24
%
23
%
23
%
Full-service banking offices
7
7
7
7
6
(1)
Represent loans whose terms have been modified mostly through the
deferral of principal and/or a partial reduction in interest
payments.
(2)
Represents accrued dividends on $25 million of 5% cumulative
preferred stock held by the U.S. Treasury and amortization of
related preferred stock discount.
(3)
Net interest margin is reported exclusive of income from loan
prepayments, which is included as a component of noninterest income.
Inclusive of such income, the margin would compute to 1.89% for
2009, 1.90% for 2008, 2.46% for 2007, 3.02% for 2006 and 3.04% for
2005.
(4)
Represents noninterest expenses (excluding provision for loan losses
and real estate expenses) as a percentage of net interest and
dividend income plus noninterest income. Noninterest expenses for
2006 included a one-time charge of $1.5 million.
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