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TheStreet Open House

Intervest Bancshares Corporation Reports Net Loss Of $0.7 Million For The Third Quarter Of 2010

Intervest Bancshares Corporation is a bank 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 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. 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 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 regulatory policies and enforcement actions; fluctuations in interest rates; demand for loans and deposits; changes in tax laws or the availability of net operating losses, the effects of additional capital, the availability of regulatory waivers; 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.

Selected Consolidated Financial Information Follows.

         

INTERVEST BANCSHARES CORPORATION

Selected Consolidated Financial Information

 
(Dollars in thousands, except per share amounts) Quarter Ended Nine-Months Ended
September 30, September 30,
Selected Operating Data:       2010     2009     2010       2009  
Interest and dividend income $25,265 $30,939 $82,325 $ 92,422
Interest expense 15,180     19,924     48,385       61,920  
Net interest and dividend income 10,085 11,015 33,940 30,502
Provision for loan losses 1,598 2,396 98,770 6,939
Provision for real estate losses 2,984 400 13,505 688
Noninterest income 7 95 1,037 225
Noninterest expenses 5,828     6,936     17,944       19,141  
(Loss) earnings before income taxes (318 ) 1,378 (95,242 ) 3,959
(Benefit) provision for income taxes (78 )   627     (41,075 )     1,535  
Net (loss) earnings before preferred dividend requirements (240 ) 751 (54,167 ) 2,424
Preferred dividend requirements (1) 421     409     1,245       1,223  
Net (loss) earnings available to common stockholders $ (661 )   $ 342     $(55,412 )   $ 1,201  
Basic (loss) earnings per common share $ (0.07 ) $ 0.04 $ (6.39 ) $ 0.14
Diluted (loss) earnings per common share       (0.07 )   0.04     (6.39 )     0.14  
Average common shares used to calculate:
Basic (loss) earnings per common share 9,120,812 8,270,812 8,672,460 8,270,812
Diluted (loss) earnings per common share (2) 9,120,812 8,270,812 8,672,460 8,270,812
Common shares outstanding at end of period 9,120,812 8,270,812 9,120,812 8,270,812
Common stock options/warrants outstanding at end of period       1,018,122     952,012     1,018,122       952,012  
Yield on interest-earning assets 4.96 % 5.24 % 5.14 % 5.35 %
Cost of funds 3.15 % 3.75 % 3.25 % 3.99 %
Net interest margin (3)       1.98 %   1.86 %   2.12 %     1.76 %
Return on average assets (annualized) -0.05 % 0.13 % -3.23 % 0.14 %
Return on average common equity (annualized) -0.68 % 1.58 % -42.89 % 1.71 %
Effective income tax rate 24.53 % 45.50 % 43.13 % 38.77 %
Efficiency ratio (4)       51 %   45 %   41 %     50 %
Total average loans outstanding $1,382,753 $1,734,983 $1,533,305 $ 1,729,587
Total average securities outstanding 624,197 601,338 586,284 567,717
Total average short-term investments outstanding 14,690 7,071 20,973 13,498
Total average assets outstanding       2,127,002     2,378,372     2,233,547       2,340,197  
Total average interest-bearing deposits outstanding $1,819,907 $1,997,690 $1,889,498 $ 1,953,302
Total average borrowings outstanding 92,801 111,247 100,671 121,156
Total average stockholders' equity       164,288     213,003     192,008       212,635  
 

At Sep 30,

At Jun 30,

At Mar 31,

At Dec 31,

At Sep 30,

Selected Financial Condition Information:     2010     2010     2010     2009       2009  
Total assets $ 2,104,098 $2,164,442 $2,284,257 $2,401,204 $ 2,382,170
Total cash and short-term investments 13,815 35,535 56,470 7,977 30,660
Total securities held to maturity 613,844 621,244 491,067 634,856 598,313
Total loans, net of unearned fees 1,363,312 1,395,564 1,634,140 1,686,164 1,696,064
Total deposits 1,806,834 1,852,356 1,926,772 2,029,984 2,012,995
Total borrowed funds and accrued interest payable 89,135 98,582 103,060 118,552 107,547
Total preferred equity 23,755 23,659 23,563 23,466 23,370
Total common equity 140,317 140,643 187,711 190,588 190,249
Common book value per share (5)     15.26     15.33     22.69     23.04       23.00  
Total allowance for loan losses $ 32,250 $ 30,350 $ 28,300 $ 32,640 $ 31,815
Allowance for loan losses/net loans 2.37 % 2.17 % 1.73 % 1.94 % 1.88 %
Total loan recoveries for the quarter 600 - - 25 -
Total loan chargeoffs for the quarter 298 85,483 13,979 3,126 2,635
Total real estate chargeoffs for the quarter     912     11,732     -     -       -  

Total loans ninety days past due and still accruing (6)

$ 16,865 $ 8,788 $ 3,629 $ 6,800 $ 1,947
Total accruing troubled debt restructured loans (7) 617 21,362 116,906 97,311 71,156
Total nonaccrual loans 38,560 18,927 96,248 123,877 131,742
Total real estate owned, net of valuation allowance     38,792     34,259     57,858     31,866       32,915  
 
(1) Represents dividend requirements on $25 million of 5% cumulative preferred stock held by the U.S. Treasury and amortization
of related preferred stock discount. Dividend payments that were due February, May and August 2010 are unpaid and in arrears.
(2) Outstanding options/warrants were not dilutive for the reporting periods.
(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) Represents total common stockholders' equity less preferred stock dividends in arrears of $1.1 million divided by the number
of common shares outstanding.
(6) At September 30, 2010, these were performing loans that were past their contractual maturity date. Extensions for the
majority at market terms are pending.
(7) 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)

  Nine-Months

Ended

Sep 30,

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 $ 2,104,098 $ 2,401,204 $ 2,271,833 $ 2,021,392 $ 1,971,753
Total cash and short-term investments 13,815 7,977 54,903 33,086 40,195
Total securities held to maturity 613,844 634,856 475,581 344,105 404,015
Total loans, net of unearned fees 1,363,312 1,686,164 1,705,711 1,614,032 1,490,653
Total deposits 1,806,834 2,029,984 1,864,135 1,659,174 1,588,534
Total borrowed funds and accrued interest payable. 89,135 118,552 149,566 136,434 172,909
Preferred stockholder's equity 23,755 23,466 23,080 - -
Common stockholders' equity 140,317 190,588 188,894 179,561 170,046
Common book value per share (1) 15.26 23.04 22.84 22.23 20.31
Market price per common share     2.10       3.28       3.99       17.22       34.41    
Asset Quality Highlights
Nonaccrual loans $ 38,560 $ 123,877 $ 108,610 $ 90,756 $ 3,274
Real estate owned, net of valuation allowance 38,792 31,866 9,081 - -
Accruing troubled debt restructured loans (2) 617 97,311 - - -
Loans ninety days past due and still accruing 16,865 6,800 1,964 11,853 -
Allowance for loan losses 32,250 32,640 28,524 21,593 17,833
Allowance for loan losses/net loans 2.37 % 1.94 % 1.67 % 1.34 % 1.20 %
Loan chargeoffs 99,760 8,103 4,227 - -
Real estate chargeoffs 12,644 - - - -
Loan recoveries     600       1,354       -       -       -    
Statement of Operations Highlights:
Interest and dividend income $ 82,325 $ 123,598 $ 128,497 $ 131,916 $ 128,605
Interest expense   48,385       81,000       90,335       89,653       78,297    
Net interest and dividend income 33,940 42,598 38,162 42,263 50,308
Provision for loan losses 98,770 10,865 11,158 3,760 2,652
Provision for real estate losses 13,505 2,275 518 - -
Noninterest income 1,037 297 5,026 8,825 6,855
Noninterest expenses   17,944       24,809       18,355       12,876       13,027    
(Loss) earnings before income taxes (95,242 ) 4,946 13,157 34,452 41,484
(Benefit) provision for income taxes   (41,075 )     1,816       5,891       15,012       17,953    
Net (loss) earnings before

preferred dividend requirements

(54,167

)

3,130

7,266

19,440

23,531

Preferred dividend requirements (3)   1,245       1,632       41       -       -    
Net (loss) earnings available to common stockholders $ (55,412 )   $ 1,498     $ 7,225     $ 19,440     $ 23,531    
Basic (loss) earnings per common share $ (6.39 ) $ 0.18 $ 0.87 $ 2.35 $ 2.98
Diluted (loss) earnings per common share $ (6.39 ) $ 0.18 $ 0.87 $ 2.31 $ 2.82
Adjusted net earnings used to calculate

diluted (loss) earnings per common share

$

(55,412

)

$

1,498

$

7,225

$

19,484

$

23,679

Average common shares used to calculate:
Basic (loss) earnings per common share 8,672,460 8,270,812 8,259,091 8,275,539 7,893,489
Diluted (loss) earnings per common share 8,672,460 8,270,812 8,267,781 8,422,017 8,401,379
Common shares outstanding   9,120,812       8,270,812       8,270,812       8,075,812       8,371,595    
Net interest margin (4) 2.12 % 1.83 % 1.79 % 2.11 % 2.75 %
Return on average assets -3.23 % 0.13 % 0.34 % 0.96 % 1.28 %
Return on average common equity -42.89 % 1.65 % 3.94 % 11.05 % 15.82 %
Effective income tax rate 43.13 % 36.72 % 44.77 % 43.57 % 43.28 %
Efficiency ratio (5) 41 % 46 % 33 % 24 % 23 %
Full-service banking offices     7       7       7       7       7    
 
(1) Represents total common stockholders' equity less preferred stock dividends in arrears of $1.1 million
divided by the number of 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 $25 million of 5% cumulative preferred stock and amortization of related
preferred stock discount. Dividend payments that were due February, May and August 2010 are unpaid and in
arrears.
(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 2.18% for the nine-months ended
Sep 30, 2010, 1.81% for 2009, 1.95% for 2008, 2.57% for 2007 and 3.11% for 2006.
(5) Represents noninterest expenses (excluding provision for loan losses and real estate expenses) as a
percentage of net interest and dividend income plus noninterest income.
 




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