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Intervest Bancshares Corporation Reports Net Loss Of $2.9 Million For The First Quarter Of 2010

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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