LA JOLLA, Calif., April 24 /PRNewswire-FirstCall/ -- ITLA Capital
Corporation (NYSE:IMP) today reported net income for the quarter
ended March 31, 2007, primarily resulting from the operations of
its wholly-owned subsidiary, Imperial Capital Bank (the Bank), of
$6.7 million or $1.19 per diluted share compared to $6.3 million or
$1.10 per diluted share for the same period last year. President
and Chief Executive Officer George W. Haligowski stated: "We are
extremely pleased with our performance during the first quarter of
2007. The first quarter has historically been our slowest quarter
of the year and we were able to post solid profitability and the
highest level of internally generated loan production during any
first quarter in the Company's 32 year history." Net interest
income before provision for loan losses increased 4.7% to $24.0
million for the quarter ended March 31, 2007, compared to $22.9
million for the same period last year. This increase was primarily
due to the growth in the average balance of our loan portfolio, and
variable rate loans repricing to higher current market interest
rates, partially offset by additional interest expense incurred due
to the growth in the average balance of interest bearing
liabilities, deposits and other interest bearing liabilities
repricing to higher current market interest rates, and the addition
of new borrowings at higher current market interest rates. The
provision for loan losses was $750,000 for each of the quarters
ended March 31, 2007 and March 31, 2006. These provisions for loan
losses were recorded to provide reserves adequate to support known
and inherent losses in our loan portfolio and for specific reserves
as of March 31, 2007 and 2006, respectively. Non-performing loans
as of March 31, 2007 remained unchanged at $26.3 million, as
compared to December 31, 2006. As a percentage of our total loan
portfolio, the amount of non-performing loans was 0.87% and 0.88%
at March 31, 2007 and December 31, 2006, respectively. General and
administrative expenses were $12.4 million for the quarter ended
March 31, 2007, compared to $12.0 million for the same period last
year. The Company's efficiency ratio (defined as general and
administrative expenses as percentage of net revenue) was 50.3% for
the quarter ended March 31, 2007, as compared to 50.9% for the same
period last year. Loan originations were $339.4 million for the
quarter ended March 31, 2007, compared to $197.2 million for the
same period last year. During the current quarter, the Bank
originated $237.2 million of commercial real estate loans, $74.0
million of small balance multi-family real estate loans, and $28.2
million of entertainment finance loans. Loan originations for the
same period last year consisted of $120.6 million of commercial
real estate loans, $66.0 million of small balance multi-family real
estate loans, and $10.6 million of entertainment finance loans. In
addition, the Bank's wholesale loan operations acquired $17.7
million and $103.6 million of commercial and multi-family real
estate loans during the quarters ended March 31, 2007 and 2006,
respectively. Haligowski commented that: "Our internally generated
loan production exceeded the first quarter of last year by over 70%
with 65% of the current period real estate loan originations coming
from our production offices outside of California. In addition,
approximately 75% of our real estate loan production for this
quarter consisted of higher yielding commercial real estate loans
versus lower yielding small balance multi-family loans. The
national expansion of our lending platform is delivering the
geographic diversity and loan granularity within our loan portfolio
that we hoped for when we initiated the national expansion over
three years ago." Total assets increased $46.0 million to $3.5
billion at March 31, 2007, compared to $3.4 billion at December 31,
2006. The increase in total assets was primarily due to a $34.6
million increase in our loan portfolio and a $20.5 million increase
in investment securities available-for-sale, partially offset by a
$2.1 million decrease in cash and cash equivalents and an $8.6
million decline in investment securities held-to-maturity.
Non-performing assets remained unchanged at $33.0 million or 0.95%
and 0.97% of total assets as of March 31, 2007 and December 31,
2006, respectively. The allowance for loan loss coverage ratio
(defined as the allowance for loan losses divided by non-accrual
loans) was 179.2% at March 31, 2007 as compared to 175.4% at
December 31, 2006. The allowance for loan losses as a percentage of
our total loans was 1.5% at March 31, 2007 and December 31, 2006.
During the quarters ended March 31, 2007 and 2006, we had net
recoveries of $380,000 and $885,000, respectively. At March 31,
2007, shareholders' equity totaled $226.9 million or 6.6% of total
assets. During the current quarter, we repurchased 15,975 shares at
an average price of $55.58 per share. Since beginning share
repurchases in April 1997, a total of 3.5 million shares have been
repurchased under our stock repurchase program, returning
approximately $102.0 million of capital to our shareholders at an
average price of $28.77 per share. The Company's book value per
share of common stock was $43.22 as of March 31, 2007, an increase
of 2.7% and 11.7%, respectively, from $42.07 per share as of
December 31, 2006 and from $38.68 per share as of March 31, 2006.
The Bank had Tier 1 leverage, Tier 1 risk-based and total
risk-based capital ratios at March 31, 2007 of 8.6%, 10.0% and
11.3%, respectively, which represents $123.4 million, $117.3
million and $37.1 million, respectively, of capital in excess of
the amount required to be "well capitalized" for regulatory
purposes. In addition, the Company, the Bank's holding company, had
Tier 1 leverage, Tier 1 risk-based and total risk-based capital
ratios at March 31, 2007 of 8.8%, 10.1% and 11.7%, respectively,
which represents $127.7 million, $121.5 million and $50.5 million,
respectively, of capital in excess of the amount required to be
"well capitalized." Haligowski concluded: "The fundamentals of our
commercial and multi-family real estate lending business have not
been negatively impacted by the recent credit and liquidity crisis
facing the subprime residential lending market. Although we remain
cautiously optimistic, we continue to stand by our strong credit
and pricing disciplines and not compromise these standards to
achieve loan production goals. The results of the first quarter are
attributable to our strong management team and the very capable
associates that work in all disciplines throughout the Company."
"Safe Harbor" statement under the Private Securities Litigation
Reform Act of 1995: This release contains forward looking
statements that are subject to risks and uncertainties, including,
but not limited to, changes in economic conditions in the Company's
market areas, changes in policies by regulatory agencies, the
impact of competitive loan products, loan demand risks, the quality
or composition of the loan or investment portfolios, increased
costs from pursuing the national expansion of our lending platform
and operational challenges inherent in implementing this expansion
strategy, fluctuations in interest rates, and changes in the
relative differences between short- and long-term interest rates,
levels of non-performing assets and other loans of concern, and
operating results, the economic impact of terrorist actions and
other risks detailed from time to time in the Company's filings
with the Securities and Exchange Commission. The Company cautions
readers not to place undue reliance on any forward-looking
statements. The Company does not undertake and specifically
disclaims any obligation to revise any forward-looking statements
to reflect the occurrence of anticipated or unanticipated events or
circumstances after the date of such statements. These risks could
cause the Company's actual results for 2007 and beyond to differ
materially from those expressed in any forward looking statements
by, or on behalf of, the Company. ITLA Capital Corporation is a
publicly traded diversified bank holding company specializing in
commercial real estate lending on a national basis and is
headquartered in San Diego, California. The Company conducts its
operations through Imperial Capital Bank and Imperial Capital Real
Estate Investment Trust. Imperial Capital Bank has seven retail
branch locations and 24 loan origination offices serving the
Western United States, the Southeast, the Mid-Atlantic states, the
Ohio Valley, the Metro New York area and New England. For
additional information, contact Timothy M. Doyle, Executive
Managing Director and Chief Financial Officer, at (858) 551-0511.
ITLA CAPITAL CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE
SHEETS March 31, 2007 December 31, (unaudited) 2006 (in thousands,
except share amounts) Assets Cash and cash equivalents $28,304
$30,448 Investment securities available-for-sale, at fair value
120,000 99,527 Investment securities held-to-maturity, at amortized
cost 184,882 193,512 Stock in Federal Home Loan Bank 49,701 48,984
Loans, net (net of allowance for loan losses of $47,179 and $46,049
as of March 31, 2007 and December 31, 2006, respectively) 3,006,829
2,973,368 Interest receivable 20,982 20,753 Other real estate
owned, net 6,640 6,729 Premises and equipment, net 8,446 7,851
Deferred income taxes 11,272 11,513 Goodwill 3,118 3,118 Other
assets 21,327 19,707 Total assets $3,461,501 $3,415,510 Liabilities
and Shareholders' Equity Liabilities: Deposit accounts $2,109,060
$2,059,405 Federal Home Loan Bank advances and other borrowings
1,001,503 1,010,000 Accounts payable and other liabilities 37,488
38,168 Junior subordinated debentures 86,600 86,600 Total
liabilities 3,234,651 3,194,173 Commitments and contingencies
Shareholders' equity: Preferred stock, 5,000,000 shares authorized,
none issued -- -- Contributed capital - common stock, $.01 par
value; 20,000,000 shares authorized, 9,069,172 and 9,065,672 issued
as of March 31, 2007 and December 31, 2006, respectively 82,300
82,073 Retained earnings 249,672 243,823 Accumulated other
comprehensive income, net 401 35 332,373 325,931 Less treasury
stock, at cost - 3,820,644 and 3,803,969 shares as of March 31,
2007 and December 31 2006, respectively (105,523) (104,594) Total
shareholders' equity 226,850 221,337 Total liabilities and
shareholders' equity $3,461,501 $3,415,510 ITLA CAPITAL CORPORATION
AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) For
the Three Months Ended March 31, 2007 2006 (in thousands, except
per share amounts) Interest income: Loans receivable, including
fees $58,763 $47,137 Cash, cash equivalents and investment
securities 4,569 4,291 Total interest income 63,332 51,428 Interest
expense: Deposit accounts 26,588 17,198 Federal Home Loan Bank
advances and other borrowings 10,677 9,362 Junior subordinated
debentures 2,078 1,958 Total interest expense 39,343 28,518 Net
interest income before provision for loan losses 23,989 22,910
Provision for loan losses 750 750 Net interest income after
provision for loan losses 23,239 22,160 Non-interest income: Late
and collection fees 303 223 Other 413 494 Total non-interest income
716 717 Non-interest expense: Compensation and benefits 6,182 6,020
Occupancy and equipment 1,943 1,806 Other 4,296 4,211 Total general
and administrative 12,421 12,037 Real estate owned expense, net 163
106 Loss (gain) on sale of other real estate owned, net -- -- Total
real estate owned expense, net 163 106 Total non-interest expense
12,584 12,143 Income before provision for income taxes 11,371
10,734 Provision for income taxes 4,634 4,402 NET INCOME $6,737
$6,332 BASIC EARNINGS PER SHARE $1.22 $1.13 DILUTED EARNINGS PER
SHARE $1.19 $1.10 DATASOURCE: ITLA Capital Corporation CONTACT:
Timothy M. Doyle, Executive Managing Director and Chief Financial
Officer of ITLA Capital Corporation, +1-858-551-0511 Web site:
http://www.itlacapital.com/
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