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 a net loss for the first quarter of 2010 ("Q1-10") of $2.9
million, or $0.35 per diluted common share, compared to net income of
$0.5 million, or $0.06 per share, for the first quarter of 2009
("Q1-09").
The Company's operating results have been affected by the weak economy,
high unemployment, increased office and retail vacancy rates and an
increasing supply of distressed properties for sale in the marketplace
at discounted prices, all of which have significantly reduced commercial
and multifamily real estate values both nationally and in the Company's
lending areas.
The net loss for Q1-10 was driven by a $7.8 million increase in the
provision for loan losses and a $1.7 million increase in noninterest
expenses. The total of these items was partially offset by a $3.2
million increase in net interest and dividend income, a $0.4 million
increase in noninterest income and a $2.5 million decrease in the
provision for income tax expense.
The provision for loan losses increased to $9.7 million in Q1-10 from
$1.9 million in Q1-09. The increase was attributable to the downgrading
of internal risk ratings on various loans and lower estimates of value
on a number of collateral properties. During Q1-10, the Company charged
off a total of $14.0 million of loan principal as a result of declining
real estate values.
Noninterest expenses increased to $7.6 million in Q1-10 from $5.9
million in Q1-09. The increase was due to a $1.9 million increase in the
provision for losses on real estate owned, a $0.4 million increase in
FDIC insurance expense due to higher premium rates imposed on all FDIC
insured banks, a $0.2 million increase in regulatory and professional
fees and a $0.2 million increase in expenses associated with
nonperforming assets. The aggregate of these items was partially offset
by $1.0 million of expense in Q1-09 that did not recur in Q1-10 from the
early retirement of higher cost borrowings. The Company recorded an
income tax benefit of $1.8 million in Q1-10 compared to $0.7 million of
tax expense in Q1-09. The Company's effective tax rate was 42% in Q1-10,
compared to 43% in Q1-09.
Net interest and dividend income increased to $12.5 million in Q1-10
from $9.3 million in Q1-09, reflecting an improved net interest margin.
The margin increased to 2.23% in Q1-10 from 1.67% in Q1-09 primarily due
to lower rates paid on deposits, the early retirement of higher cost
borrowings and the recovery of $0.8 million of nonaccrual interest from
the full repayment of a nonaccrual loan. The positive effect of these
items was 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 average interest-earning assets decreased by 21 basis
points to 5.30% in Q1-10, from 5.51% in Q1-09. The Company's average
cost of funds decreased at a faster pace by 93 basis points to 3.36% in
Q1-10, from 4.29% in Q1-09.
Noninterest income increased to $0.5 million in Q1-10 from $0.1 million
in Q1-09, primarily due to $0.4 million of fees from the full repayment
of the nonaccrual loan noted above.
Total assets at March 31, 2010 were $2.28 billion compared to $2.40
billion at December 31, 2009, reflecting a decrease in security
investments and loans receivable, partially offset by an increase in
overnight investments and foreclosed real estate. As a result of current
market conditions and higher regulatory capital requirements, Intervest
National Bank has reduced its aggregate deposits and its new loan
originations.
Total securities held to maturity decreased by $143.8 million to $491.1
million at March 31, 2010, primarily due to calls exceeding new
purchases. A portion of the resulting proceeds were used to fund deposit
outflow and the repayment of FHLB borrowings. The securities portfolio
had a weighted-average remaining contractual maturity and a yield of 4.4
years and 2.58%, respectively, at March 31, 2010.
Total loans receivable, net of unearned fees, amounted to $1.63 billion
at March 31, 2010, a $52 million decrease from $1.68 billion at December
31, 2009. The decrease was due to an aggregate of $33.7 million of
principal repayments, $28.0 million of loans transferred to foreclosed
real estate and $14.0 million of loan chargeoffs exceeding $23.0 million
of new loan originations.
Total nonperforming assets at March 31, 2010 amounted to $154.1 million,
or 6.75% of total assets, compared to $155.8 million, or 6.49% of total
assets at December 31, 2009. At March 31, 2010, nonperforming assets
consisted of $96.2 million of nonaccrual loans, made up of 32 loans, and
$57.9 million of real estate acquired through foreclosure, made up of 15
properties. At March 31, 2010, we also had $116.9 million (21 loans) of
accruing restructured loans (with a weighted average interest rate of
4.87%) on which the Bank has granted certain concessions to provide
payment relief to the borrower. These concessions generally consist of
the deferral of principal and or interest payments for a period of time,
or a partial reduction in interest payments.
The total allowance for loan losses decreased to $28.3 million at March
31, 2010 from $32.6 million at December 31, 2009, due to $14.0 million
of chargeoffs, partially offset by a $9.7 million loan loss provision.
The allowance represented 1.73% of total loans (net of deferred fees) at
March 31, 2010, compared to 1.94% at December 31, 2009. At each date, a
SFAS 114 specific valuation allowance (included as part of the overall
allowance for loan losses) in the aggregate amount of $11.0 million and
$13.8 million, respectively, was maintained on total nonaccrual and
restructured loans.
Total deposits at March 31, 2010 decreased to $1.93 billion from $2.03
billion at December 31, 2009, nearly all of which was due to a $95
million decrease in certificate of deposit accounts.
Total borrowed funds and related interest payable at March 31, 2010
decreased to $103 million, from $119 million at December 31, 2009, due
to the maturity and repayment of $16 million of FHLBNY borrowings. As
disclosed in a prior report on Form 8-K, the Company has exercised its
right to defer regularly scheduled interest payments on its $55 million
of junior subordinated notes relating to its outstanding trust preferred
securities and has also deferred the payment of its regular quarterly
cash dividends on its $25 million of preferred stock held by the U.S.
Treasury. The interest and dividend requirements continue to be accrued
for financial statement purposes.
Total stockholders' equity at March 31, 2010 decreased to $211.3 million
from $214.1 million at December 31, 2009, primarily due to the net loss
of $2.9 million for Q1-10. At March 31, 2010, Intervest National Bank's
regulatory capital ratios were as follows: total capital to
risk-weighted assets – 14.33%, Tier 1 capital to risk-weighted assets –
13.08% and Tier 1 capital to total average assets (leverage ratio) –
10.38%. 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.
INTERVEST BANCSHARES CORPORATION
Selected Consolidated Financial Information
(Dollars in thousands, except per share amounts)
Quarter Ended
March 31,
Selected Operating Data:
2010
2009
Interest and dividend income
$29,631
$30,679
Interest expense
17,141
21,389
Net interest and dividend income
12,490
9,290
Provision for loan losses
9,639
1,857
Net interest and dividend income after provision for loan losses
2,851
7,433
Noninterest income
512
73
Noninterest expenses
7,666
5,939
(Loss) earnings before income taxes
(4,303
)
1,567
(Benefit) provision for income taxes
(1,825
)
672
Net (loss) earnings before preferred dividend requirements
(2,478
)
895
Preferred dividend requirements (1)
409
405
Net (loss) earnings available to common stockholders
$(2,887
)
$ 490
Basic (loss) earnings per common share
$ (0.35
)
$ 0.06
Diluted (loss) earnings per common share
(0.35
)
0.06
Average common shares used to calculate:
Basic (loss) earnings per common share
8,270,812
8,270,812
Diluted (loss) earnings per common share (2)
8,270,812
8,270,812
Common shares outstanding at end of period
8,270,812
8,270,812
Common stock options/warrants outstanding at end of period
1,018,722
959,112
Yield on interest-earning assets
5.30
%
5.51
%
Cost of funds
3.36
%
4.29
%
Net interest margin (3)
2.23
%
1.67
%
Return on average assets (annualized)
-0.42
%
0.16
%
Return on average common equity (annualized)
-5.20
%
1.89
%
Effective income tax rate
42.41
%
42.88
%
Efficiency ratio (4)
36
%
54
%
Total average loans outstanding
$1,680,810
$1,713,685
Total average securities outstanding
566,635
525,702
Total average short-term investments outstanding
19,145
17,212
Total average interest-earning assets outstanding
2,266,590
2,256,599
Total average assets outstanding
2,335,592
2,281,226
Total average interest-bearing deposits outstanding
$1,961,132
$1,888,774
Total average borrowings outstanding
109,028
131,461
Total average interest-bearing liabilities outstanding
2,070,160
2,020,235
Total average stockholders' equity
214,235
212,159
At Mar 31,
At Dec 31,
At Sep 30,
At Jun 30,
At Mar 31,
Selected Financial Condition Information:
2010
2009
2009
2009
2009
Total assets
$2,284,257
$2,401,204
$2,382,170
$2,380,044
$
2,317,613
Total cash and short-term investments
56,470
7,977
30,660
23,441
30,203
Total securities held to maturity
491,067
634,856
598,313
566,722
544,702
Total FRB and FHLB stock
9,989
10,708
9,929
9,929
9,657
Total loans, net of unearned fees
1,634,140
1,686,164
1,696,064
1,746,087
1,708,752
Total deposits
1,926,772
2,029,984
2,012,995
1,995,165
1,938,123
Total borrowed funds and accrued interest payable
103,060
118,552
107,547
118,035
122,194
Total preferred equity
23,563
23,466
23,370
23,273
23,177
Total common equity
187,711
190,588
190,249
189,864
189,440
Book value per common share
22.69
23.04
23.00
22.96
22.90
Total allowance for loan losses
$ 28,300
$ 32,640
$ 31,815
$ 32,054
$
30,371
Total loan recoveries for the quarter
-
25
-
1,329
-
Total loan chargeoffs for the quarter
13,979
3,126
2,635
2,332
10
Total accruing troubled debt restructured loans (5)
116,906
97,311
71,156
76,210
30,586
Total loans ninety days past due and still accruing.
3,629
6,800
1,947
6,367
1,958
Total nonaccrual loans
96,248
123,877
131,742
129,784
119,305
Total foreclosed real estate
57,858
31,866
32,915
18,214
9,742
Allowance for loan losses/net loans
1.73
%
1.94
%
1.88
%
1.84
%
1.78
%
(1)
Represents accrued dividends on $25 million of 5% cumulative
preferred stock held by the U.S. Treasury and amortization of
related preferred stock discount.
(2)
Outstanding options/warrants were not dilutive for the Q1-09
reporting period. Outstanding options/warrants are dilutive when
their exercise price is above the average market price of the Class
A common stock during the reporting period.
(3)
Net interest margin is reported exclusive of income from loan
prepayments, which is included as a component of noninterest income.
(4)
Represents noninterest expenses (excluding provisions for loan and
real estate losses & real estate expenses) as a percentage of net
interest and dividend income plus noninterest income.
(5)
Represent loans whose terms have been modified mostly through the
deferral of principal and/or a partial reduction in interest
payments.
INTERVEST BANCSHARES CORPORATION
Consolidated Financial Highlights
At or For The Period Ended
($ in thousands, except per share amounts)
Quarter
Ended
Mar 31,
2010
Year
Ended
Dec 31,
2009
Year
Ended
Dec 31,
2008
Year
Ended
Dec 31,
2007
Year
Ended
Dec 31,
2006
Balance Sheet Highlights:
Total assets
$
2,284,257
$
2,401,204
$
2,271,833
$
2,021,392
$
1,971,753
Percentage change
-5
%
6
%
12
%
3
%
16
%
Total loans, net of unearned fees
1,634,140
1,686,164
1,705,711
1,614,032
1,490,653
Percentage change
-3
%
-1
%
6
%
8
%
9
%
Total deposits
1,926,772
2,029,984
1,864,135
1,659,174
1,588,534
Percentage change
-5
%
9
%
12
%
4
%
16
%
Loans/deposits (Intervest National Bank)
81
%
79
%
85
%
88
%
84
%
Total borrowed funds and accrued interest payable.
103,060
118,552
149,566
136,434
172,909
Preferred equity
23,563
23,466
23,080
-
-
Common equity
187,711
190,588
188,894
179,561
170,046
Common book value per share
22.69
23.04
22.84
22.23
20.31
Market price per common share
3.90
3.28
3.99
17.22
34.41
Asset Quality Highlights
Nonaccrual loans
$
96,248
$
123,877
$
108,610
$
90,756
$
3,274
Foreclosed real estate
57,858
31,866
9,081
-
-
Accruing troubled debt restructured loans (1)
116,906
97,311
-
-
-
Loans ninety days past due and still accruing
3,629
6,800
1,964
11,853
-
Allowance for loan losses
28,300
32,640
28,524
21,593
17,833
Loan recoveries
-
1,354
-
-
-
Loan chargeoffs
13,979
8,103
4,227
-
-
Allowance for loan losses/net loans
1.73
%
1.94
%
1.67
%
1.34
%
1.20
%
Statement of Operations Highlights:
Interest and dividend income
$
29,631
$
123,598
$
128,497
$
131,916
$
128,605
Interest expense
17,141
81,000
90,335
89,653
78,297
Net interest and dividend income
12,490
42,598
38,162
42,263
50,308
Provision for loan losses
9,639
10,865
11,158
3,760
2,652
Noninterest income
512
297
5,026
8,825
6,855
Noninterest expenses
7,666
27,084
18,873
12,876
13,027
(Loss) earnings before income taxes
(4,303
)
4,946
13,157
34,452
41,484
(Benefit) provision for income taxes
(1,825
)
1,816
5,891
15,012
17,953
Net (loss) earnings before
preferred dividend requirements
(2,478
)
3,130
7,266
19,440
23,531
Preferred dividend requirements (2)
409
1,632
41
-
-
Net (loss) earnings available to common stockholders
$
(2,887
)
$
1,498
$
7,225
$
19,440
$
23,531
Basic (loss) earnings per common share
$
(0.35
)
$
0.18
$
0.87
$
2.35
$
2.98
Diluted (loss) earnings per common share
$
(0.35
)
$
0.18
$
0.87
$
2.31
$
2.82
Adjusted net earnings used to calculate
diluted (loss) earnings per common share
$
(2,887
)
$
1,498
$
7,225
$
19,484
$
23,679
Average common shares used to calculate:
Basic (loss) earnings per common share
8,270,812
8,270,812
8,259,091
8,275,539
7,893,489
Diluted (loss) earnings per common share
8,270,812
8,270,812
8,267,781
8,422,017
8,401,379
Common shares outstanding
8,270,812
8,270,812
8,270,812
8,075,812
8,371,595
Net interest margin (3)
2.23
%
1.83
%
1.79
%
2.11
%
2.75
%
Return on average assets
-0.42
%
0.13
%
0.34
%
0.96
%
1.28
%
Return on average common equity
-5.20
%
1.65
%
3.94
%
11.05
%
15.82
%
Effective income tax rate
42.41
%
36.72
%
44.77
%
43.57
%
43.28
%
Efficiency ratio (4)
36
%
46
%
33
%
24
%
23
%
Full-service banking offices
7
7
7
7
7
(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 2.32% for the
quarter ended March 31, 2010, 1.68% for 2009, 1.74% for 2008, 2.64%
for 2007 and 3.31% for 2006.
(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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