Intervest Bancshares (NASDAQ:IBCA)
Historical Stock Chart
2 Years : From Jun 2011 to Jun 2013
Intervest Bancshares Corporation (NASDAQ-GS: IBCA), parent company of
Intervest National Bank, today reported its financial results for the
first quarter of 2012. Financial highlights follow.
-
Net earnings for the first quarter of 2012 ("Q1-12") increased to $2.8
million, or $0.13 per diluted common share, from $1.7 million, or
$0.08 per share, for the first quarter of 2011 ("Q1-11").
-
Earnings before deducting provisions for loan and real estate losses,
real estate expenses, income taxes and preferred dividend requirements
increased to $6.9 million in Q1-12, from $6.3 million in Q1-11.
-
Provisions for loan and real estate losses decreased to $0.5 million
in Q1-12, from $2.0 million in Q1-11. The allowance for loan losses
amounted to $29.2 million at March 31, 2012 and represented 2.52% of
total outstanding loans.
-
Net interest and dividend income decreased to $10.0 million in Q1-12,
from $10.4 million in Q1-11, while the net interest margin improved
slightly to 2.16% in Q1-12, from 2.14% in Q1-11. New loan originations
for Q1-12 increased to $50 million, from $7 million in Q1-11.
-
Noninterest expenses decreased to $4.2 million in Q1-12, from $4.4
million in Q1-11. The efficiency ratio (which measures the Company's
ability to control expenses as a percentage of revenues) continued to
be excellent and was 38% in Q1-12, compared to 41% in Q1-11.
-
Nonaccrual loans and real estate owned (REO) totaled $81 million at
March 31, 2012, compared to $86 million at December 31, 2011.
Nonaccrual loans include certain restructured loans (TDRs) that are
current as to payments and performing in accordance with their
renegotiated terms, but are required to be classified nonaccrual based
on regulatory guidance. At March 31, 2012, such loans totaled $44
million compared to $46 million at December 31, 2011 and they were
yielding approximately 5%.
-
Intervest National Bank's regulatory capital ratios continued to
increase and be well above its minimum requirements. At March 31,
2012, its actual capital ratios were as follows: Tier One Leverage -
11.73%; Tier One Risk-Based - 16.88%; and Total Risk-Based Capital -
18.14%, compared to its minimum requirements of 9%, 10% and 12%,
respectively. The Bank's Tier 1 capital amounted to $225 million and
was $52 million in excess of the required minimum for its Tier One
Leverage ratio.
-
Book value per common share was $8.04 at March 31, 2012, compared to
$8.07 at December 31, 2011, reflecting increased common shares
outstanding from restricted stock awards made to directors and
employees in Q1-12 under the Company's Long Term Incentive Plan.
Net earnings for Q1-12 increased by $1.1 million over Q1-11 due to the
following: a $1.5 million decrease in the total provision for loan and
real estate losses (resulting from fewer credit rating downgrades on
loans); a $0.8 million increase in noninterest income (reflecting
primarily higher income from loan prepayments) and a $0.2 million
decrease in noninterest expenses (reflecting primarily a $0.5 million
decrease in FDIC premiums, partially offset by a $0.3 million aggregate
increase in salaries, benefits and stock compensation expense). The
total of these items was partially offset by a $0.9 million increase in
income tax expense (due to higher pre-tax income); a $0.4 million
decrease in net interest and dividend income (as described below) and a
$0.1 million increase in real estate expenses. The effective income tax
rate was 45% in both quarterly periods.
The decrease in net interest and dividend income in Q1-12 compared to
Q1-11 reflected a planned reduction in the size of the Bank's balance
sheet as well as fewer suitable lending opportunities during the period.
In Q1-12, total average interest-earning assets decreased by $110
million from Q1-11, reflecting a $164 million decrease in average loans,
partially offset by a $54 million net increase in average security and
overnight investments. At the same time, average deposits and borrowed
funds decreased by $101 million and $11 million, respectively, while
average stockholders' equity increased by $12 million. The reduction in
the balance sheet positively impacted the Bank's regulatory capital
ratios. The slightly higher net interest margin was attributable to
lower rates paid on deposit accounts and the run off of higher-cost CDs
and borrowings, largely offset by payoffs of higher yielding loans and
calls of security investments due to declining interest rates, coupled
with the re-investment of a large portion of these cash inflows into new
securities and loans at lower market interest rates. Overall, the
average cost of funds decreased by 42 basis points to 2.54% in Q1-12,
from 2.96% in Q1-11, while the average yield on earning assets decreased
at a slower pace by 38 basis points to 4.50% in Q1-12, from 4.88% in
Q1-11.
Total assets at March 31, 2012 decreased to $1.91 billion from $1.97
billion at December 31, 2011, primarily reflecting a decrease in
security investments, partially offset by an increase in cash and
short-term investments.
Cash and short-term investments increased to $90 million at March 31,
2012 from $30 million at December 31, 2011. This category will fluctuate
based on various factors, including liquidity needs, loan demand,
deposit flows, calls of securities, repayments of borrowed funds and
alternative investment opportunities. The Bank expects to utilize a
large portion of the balance to fund new loans over the next several
quarters. At March 31, 2012, the Bank had $41 million of potential new
real estate loans in its origination pipeline.
Securities held to maturity decreased by $109 million to $591 million at
March 31, 2012 from $700 million at December 31, 2011, reflecting calls
of securities exceeding new purchases. A portion of the proceeds was
used to fund planned deposit outflow and a portion was being held
temporarily in cash and short-term investments as denoted above. At
March 31, 2012, the securities portfolio, which represented 31% of total
assets and was comprised almost all of U.S. government agency debt
securities, had a weighted-average yield to earliest call date of 1.36%
and a weighted-average remaining contractual maturity of 4.8 years. The
Bank invests primarily in U.S. government agency debt obligations to
emphasize safety and liquidity. In March 2012, the Bank also began
purchasing residential mortgage-backed pass through securities issued by
GNMA, FNMA and FHLMC in an effort to increase the overall yield on its
investment portfolio.
Loans totaled $1.15 billion at March 31, 2012, compared to $1.16 billion
at December 31, 2011. The decrease reflected $45 million of payoffs and
$12 million of amortization and $1.4 million of chargeoffs, partially
offset by $50 million of new loans. Loans paid off during Q1-12 had a
weighted-average yield of 6.31%. New loans, nearly all with fixed
interest rates, had a weighted-average yield, term and loan-to-value
ratio of approximately 5%, 5 years and 60%, respectively.
Nonaccrual loans and REO aggregated to $81 million, or 4.2% of total
assets, at March 31, 2012, compared to $86 million, or 4.3%, at December
31, 2011. Nonaccrual loans totaled $53 million at March 31, 2012 and $57
million at December 31, 2011 and included $44 million (12 loans) and $46
million (12 loans) of TDRs that were current at each date, respectively.
All the TDRs classified as nonaccrual have performed as agreed under
their renegotiated terms and interest income is being recorded on a cash
basis. During Q1-12, based on annual updated appraisals received on the
underlying collateral properties, a portion of three of the above TDRs
(or $1.4 million of aggregate principal) was charged off for financial
statement purposes. The borrowers remain obligated to pay all
contractual principal due on the TDRs.
The allowance for loan losses at March 31, 2012 was $29.2 million,
representing 2.52% of total net loans, compared to $30.4 million, or
2.61%, at December 31, 2011. The allowance included specific reserves
for impaired loans (comprised of all nonaccrual loans as well as
accruing TDRs) at each date totaling $7 million and $8 million,
respectively.
At March 31, 2012, the Company had a deferred tax asset totaling $36.3
million, which included remaining unused NOL and AMT credit
carryforwards totaling $32 million for Federal tax purposes and $63
million for State and Local tax purposes. These carryforwards are
available to reduce taxes payable on the Company's future taxable income.
Deposits at March 31, 2012 decreased to $1.60 billion from $1.66 billion
at December 31, 2011, primarily reflecting a $60 million decrease in CD
accounts, of which $16.5 million were brokered. Borrowed funds and
related interest payable at March 31, 2012 decreased to $72.1 million,
from $78.6 million at December 31, 2011, due to the maturity and
repayment of $7 million of FHLB borrowings, partially offset by a $0.5
million increase in accrued interest payable on trust preferred
securities (TRUPs). Since February 2010, as required by its regulator
and as permitted by the underlying documents, the Company has suspended
the payment of interest on $55 million of its debt in the form of TRUPs
as well as the declaration and payment of TARP dividends on $25 million
of preferred stock held by the U.S. Treasury. Stockholders' equity
increased to $201 million at March 31, 2012 from $198 million at
December 31, 2011, primarily due to $3.3 million of net earnings before
preferred dividend requirements.
Intervest Bancshares Corporation (IBC) is a bank holding company. Its
operating subsidiary is Intervest National Bank (INB), 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.
IBC's Common Stock is listed on the NASDAQ Global Select Market: Trading
Symbol IBCA. This release may contain forward-looking information. Words
such as "may," "will," "could," "should," "would," "believe,"
"anticipate," "estimate," "expect," "intend," "plan," "project,"
"assume," "indicate," "continue," "target," "goal," and similar words or
expressions of the future are intended to identify forward-looking
statements. Except for historical information, the matters discussed
herein are subject to certain risks and uncertainties that may adversely
affect our business, financial condition and results of operations. The
following factors, among others, could cause actual results to differ
materially from those set forth in forward looking statements: the
regulatory agreements to which IBC and INB are currently subject to and
any operating restrictions arising therefrom including availability of
regulatory approvals or waivers; changes in economic conditions and real
estate values both nationally and in our market areas; changes in our
borrowing facilities, volume of loan originations and deposit flows;
changes in the levels of our non-interest income and provisions for loan
and real estate losses; changes in the composition and credit quality of
our loan portfolio; legislative or regulatory changes, including
increased expenses arising therefrom; changes in interest rates which
may reduce our net interest margin and net interest income; increases in
competition; technological changes which we may not be able to
implement; changes in accounting or regulatory principles, policies or
guidelines; changes in tax laws and our ability to utilize our deferred
tax asset, including NOL and AMT carryforwards; and our ability to
attract and retain key members of management. Reference is made to IBC's
filings with the SEC for further discussion of risks and uncertainties
regarding our business. Historical results are not necessarily
indicative of our future prospects.
Selected Consolidated Financial Information Follows.
INTERVEST BANCSHARES CORPORATION
Selected Consolidated Financial Information
(Dollars in thousands, except per share amounts)
Quarter Ended
March 31,
Selected Operating Data:
2012
2011
Interest and dividend income
$20,698
$ 23,594
Interest expense
10,740
13,243
Net interest and dividend income
9,958
10,351
Provision for loan losses
-
2,045
Noninterest income
1,125
323
Noninterest expenses:
Provision for real estate losses
511
-
Real estate expenses
460
325
All other noninterest expenses
4,164
4,410
Earnings before income taxes
5,948
3,894
Provision for income taxes
2,694
1,741
Net earnings before preferred dividend requirements
3,254
2,153
Preferred dividend requirements (1)
444
427
Net earnings available to common stockholders
$ 2,810
$ 1,726
Basic earnings per common share
$0.13
$0.08
Diluted earnings per common share
$0.13
$0.08
Average shares used for basic and diluted earnings per share (2)
21,493,518
21,126,489
Common shares outstanding at end of period
21,590,689
21,126,489
Common stock options/warrants outstanding at end of period
1,085,022
1,045,422
Yield on interest-earning assets
4.50
%
4.88
%
Cost of funds
2.54
%
2.96
%
Net interest margin
2.16
%
2.14
%
Return on average assets (annualized)
0.67
%
0.42
%
Return on average common equity (annualized)
7.46
%
5.29
%
Effective income tax rate
45
%
45
%
Efficiency ratio (3)
38
%
41
%
Average loans outstanding
$1,165,330
$1,329,413
Average securities outstanding
678,844
615,357
Average short-term investments outstanding
7,664
17,055
Average assets outstanding
1,945,130
2,045,999
Average interest-bearing deposits outstanding
$1,631,664
$1,732,180
Average borrowings outstanding
70,356
81,589
Average stockholders' equity
198,746
186,823
At Mar 31,
At Dec 31,
At Sep 30,
At Jun 30,
At Mar 31,
Selected Financial Condition Information:
2012
2011
2011
2011
2011
Total assets
$1,909,052
$1,969,540
$1,991,245
$2,050,379
$2,014,125
Cash and short-term investments
89,839
29,863
36,798
14,461
29,079
Securities held to maturity
590,959
700,444
678,118
691,334
589,940
Loans, net of unearned fees
1,155,437
1,163,790
1,199,770
1,252,128
1,300,546
Allowance for loan losses
29,169
30,415
32,365
31,772
32,400
Allowance for loan losses/net loans
2.52
%
2.61
%
2.70
%
2.54
%
2.49
%
Deposits
1,599,653
1,662,024
1,678,003
1,735,292
1,706,630
Borrowed funds and accrued interest payable
72,064
78,606
78,156
82,634
82,072
Preferred stockholder's equity
24,335
24,238
24,141
24,045
23,948
Common stockholders' equity
176,716
173,293
170,164
167,109
164,243
Common book value per share (4)
8.04
8.07
7.94
7.81
7.69
Loan chargeoffs for the quarter
$1,430
$2,044
$1,667
$ 1,374
$ 4,513
Loan recoveries for the quarter
184
54
69
4
28
Real estate chargeoffs for the quarter
-
-
-
-
-
Security impairment writedowns for the quarter
157
-
96
-
105
Nonaccrual loans (5)
$53,208
$57,240
$59,707
$45,352
$45,192
Real estate owned, net of valuation allowance
27,767
28,278
27,005
25,786
27,064
Investment securities on a cash basis
4,222
4,379
4,379
4,475
4,475
Accruing troubled debt restructured (TDR) loans (6).
8,980
9,030
5,601
5,619
5,630
Loans 90 days past due and still accruing
2,798
1,925
8,571
4,594
3,879
Loans 60-89 days past due and still accruing
6,303
3,894
939
7,704
-
Loans 31-59 days past due and still accruing
11,840
24,876
-
-
21,785
(1)
Represents dividend requirements on 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 reporting
periods.
(3)
Represents noninterest expenses (excluding provisions for real
estate losses & real estate expenses) as a percentage of net
interest and dividend income plus noninterest income.
(4)
Represents common stockholders' equity less preferred dividends in
arrears of $3.1 million, $2.8 million, $2.4 million, $2.1 million
and $1.8 million, respectively, divided by common shares outstanding.
(5)
Include performing TDRs maintained on nonaccrual status of $44
million, $46 million, $37 million, $33 million and $18 million,
respectively. The balance at March 31, 2012 was yielding
approximately 5%
(6)
Represent loans whose terms have been modified mostly through the
deferral of principal and/or a partial reduction in interest
payments. All loans were performing and current as of March 31, 2012
and were yielding approximately 5.50%.
INTERVEST BANCSHARES CORPORATION
Consolidated Financial Highlights
At or For The Period Ended
($ in thousands, except per share amounts)
Quarter
Ended
Mar 31,
2012
Year
Ended
Dec 31,
2011
Year
Ended
Dec 31,
2010
Year
Ended
Dec 31,
2009
Year
Ended
Dec 31,
2008
Balance Sheet Highlights:
Total assets
$1,909,052
$1,969,540
$2,070,868
$2,401,204
$2,271,833
Cash and short-term investments
89,839
29,863
23,911
7,977
54,903
Securities held to maturity
590,959
700,444
614,335
634,856
475,581
Loans, net of unearned fees
1,155,437
1,163,790
1,337,326
1,686,164
1,705,711
Allowance for loan losses
29,169
30,415
34,840
32,640
28,524
Allowance for loan losses/net loans
2.52
%
2.61
%
2.61
%
1.94
%
1.67
%
Deposits
1,599,653
1,662,024
1,766,083
2,029,984
1,864,135
Borrowed funds and accrued interest payable
72,064
78,606
84,676
118,552
149,566
Preferred stockholder's equity
24,335
24,238
23,852
23,466
23,080
Common stockholders' equity
176,716
173,293
162,108
190,588
188,894
Common book value per share (1)
8.04
8.07
7.61
23.04
22.84
Market price per common share
3.82
2.65
2.93
3.28
3.99
Asset Quality Highlights
Nonaccrual loans
$53,208
$57,240
$52,923
$123,877
$108,610
Real estate owned, net of valuation allowance
27,767
28,278
27,064
31,866
9,081
Investment securities on a cash basis
4,222
4,379
2,318
1,385
-
Accruing troubled debt restructured loans (2)
8,980
9,030
3,632
97,311
-
Loans past due 90 days and still accruing
2,798
1,925
7,481
6,800
1,964
Loans past due 31-89 days and still accruing
18,143
28,770
11,364
5,925
18,943
Loan chargeoffs
1,430
9,598
100,146
8,103
4,227
Loan recoveries
184
155
883
1,354
-
Real estate chargeoffs
-
-
15,614
-
-
Impairment writedowns on security investments
157
201
1,192
2,258
-
Statement of Operations Highlights:
Interest and dividend income
$20,698
$92,837
$ 107,072
$123,598
$128,497
Interest expense
10,740
50,540
62,692
81,000
90,335
Net interest and dividend income
9,958
42,297
44,380
42,598
38,162
Provision for loan losses
-
5,018
101,463
10,865
11,158
Noninterest income
1,125
4,308
2,110
297
5,026
Noninterest expenses:
Provision for real estate losses
511
3,349
15,509
2,275
518
Real estate expenses
460
1,619
4,105
4,945
4,281
All other noninterest expenses
4,164
15,861
19,069
19,864
14,074
Earnings (loss) before income taxes
5,948
20,758
(93,656
)
4,946
13,157
Provision (benefit) for income taxes
2,694
9,512
(40,348
)
1,816
5,891
Net earnings (loss) before preferred dividend requirements
3,254
11,246
(53,308
)
3,130
7,266
Preferred dividend requirements (3)
444
1,730
1,667
1,632
41
Net earnings (loss) available to common stockholders
$ 2,810
$ 9,516
$(54,975
)
$ 1,498
$ 7,225
Basic earnings (loss) per common share
$0.13
$0.45
$(4.95
)
$0.18
$0.87
Diluted earnings (loss) per common share
$0.13
$0.45
$(4.95
)
$0.18
$0.87
Average common shares used to calculate:
Basic earnings (loss) per common share
21,493,518
21,126,187
11,101,196
8,270,812
8,259,091
Diluted earnings (loss) per common share
21,493,518
21,126,187
11,101,196
8,270,812
8,267,781
Common shares outstanding
21,590,689
21,125,289
21,126,489
8,270,812
8,270,812
Net interest margin (4)
2.16
%
2.18
%
2.11
%
1.83
%
1.79
%
Return on average assets
0.67
%
0.56
%
-2.42
%
0.13
%
0.34
%
Return on average common equity
7.46
%
6.74
%
-32.20
%
1.65
%
3.94
%
Effective income tax rate
45
%
46
%
43
%
37
%
45
%
Efficiency ratio (5)
38
%
34
%
41
%
46
%
33
%
(1)
Represents common stockholders' equity less preferred dividends in
arrears ($3.1 million at March 31, 2012, $2.8 million at December
31, 2011 and $1.4 million at December 31, 2010) divided by common
shares outstanding.
(2)
Represent loans whose terms have been modified mostly through the
deferral of principal and/or a partial reduction in interest
payments.
(3)
Represents dividend requirements on cumulative preferred stock held
by the U.S. Treasury and amortization of related preferred stock
discount.
(4)
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 2.37%, 2.14%,
2.32%, 1.68% and 1.74%, respectively.
(5)
Represents noninterest expenses (excluding provisions for real
estate losses and real estate expenses) as a percentage of net
interest and dividend income plus noninterest income.
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