This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Intervest Bancshares Corporation Announces The Sale Of $207 Million In Non-Performing And Underperforming Assets And The Sale Of $4.25 Million Of Class A Common Stock

Intervest Bancshares Corporation (NASDAQ-GS: IBCA) (the "Company") today reported that its wholly-owned subsidiaries, Intervest National Bank (the "Bank") and Intervest Mortgage Corporation ("IMC"), completed the sale of certain non-performing and underperforming assets to affiliates of Värde Partners, Inc. ("Värde") and FirstCity Financial Corporation ("FirstCity") (Nasdaq: FCFC). In addition, the Bank also agreed to sell to the purchasers an additional property located in Ohio which is expected to close in approximately two weeks.

The total amount of assets sold or to be sold aggregated to approximately $207 million and consisted of $187 million of loans and $14.4 million of real estate owned by the Bank and $5.6 million of loans owned by IMC. The assets are comprised mainly of non-performing and underperforming loans on commercial real estate and multi-family properties and real estate owned in New York and Florida. As a result of the transaction, the Company will record a net charge after taxes of approximately $44 million in the second quarter of 2010. The Company will also record a deferred tax asset related to this transaction of approximately $33 million, which will be available to reduce income taxes payable on the Company's future earnings.

Also on May 25, 2010, the Company sold in a private placement a total of 850,000 shares of its Class A Common Stock to affiliates of Värde and FirstCity, for an aggregate purchase price of $4,250,000. Those shares represent 9.9% of the issued and outstanding shares of the Class A Common Stock of the Company. Contemporaneously with these transactions, the Company contributed working capital to the Bank. Both before and after these transactions, the Bank had capital ratios in excess of the regulatory requirements to be designated as well capitalized.

"We are very pleased that we were able to complete these transactions in the current economic environment and believe that the combination of the loan sales and the capital investment is beneficial to Intervest and its shareholders," stated Lowell Dansker, Chairman and Chief Executive Officer of Intervest. "It allows us to reduce our total non-performing and underperforming assets by 75%, a substantial decline that will enable our management team to continue to provide outstanding service to our loyal customer base for which Intervest is known. The removal of these assets also eliminates the uncertainty surrounding any additional credit costs associated with these assets. Our commitment to our shareholders during this credit cycle has been to work through problem assets expeditiously in a manner that makes sound business sense for our shareholders. This transaction meets these goals. In addition, the receipt of additional capital from Värde and FirstCity, coupled with the asset sale, will allow us to refocus our efforts towards the pursuit of earnings strategies in our market areas of expertise."

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
IBCA $10.78 1.99%
AAPL $94.99 0.00%
FB $101.22 1.70%
GOOG $678.11 0.00%
TSLA $151.85 2.40%


Chart of I:DJI
DOW 16,014.38 -12.67 -0.08%
S&P 500 1,852.21 -1.23 -0.07%
NASDAQ 4,268.7630 -14.99 -0.35%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs