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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Intervest Bancshares Corporation Reports Earnings Of $2.5 Million Or $0.12 Per Share For 2011 Second Quarter

Intervest Bancshares Corporation (NASDAQ-GS: IBCA), parent company of Intervest National Bank, today reported its 2011 second quarter financial results. Financial highlights follow.

  • Net earnings increased to $2.5 million, or $0.12 per diluted common share, for the second quarter of 2011 ("Q2-11") from $1.7 million, or $0.08 per share, for the first quarter of 2011 ("Q1-11"). In the second quarter of 2010 ("Q2-10"), the Company had a net loss of $51.9 million, or $6.02 per share, primarily due to a bulk sale of nonperforming and underperforming assets.
  • Net interest margin for Q2-11 improved to 2.24% from 2.14% in Q1-11 and 2.13% in Q2-10.
  • Nonaccrual loans and real estate owned totaled $71 million at June 30, 2011, compared to $72 million at March 31, 2011 and $80 million at December 31, 2010. Nonaccrual loans necessarily include certain restructured loans (TDRs) that are classified as such based on regulatory guidance. At June 30, 2011, such loans amounted to $33 million and were yielding 4.43%. These loans were current and performing in accordance with their renegotiated terms.
  • The total provision for loan and real estate losses amounted to $2.0 million for both Q2-11 and Q1-11, compared to $96.1 million in Q2-10. The allowance for loan losses was 2.54% of total outstanding loans at June 30, 2011, compared to 2.49% at March 31, 2011, 2.61% at December 31, 2010 and 2.17% at June 30, 2010.
  • Noninterest expense decreased to $4.1 million in Q2-11, from $4.3 million in Q2-10 and $4.4 million in Q1-11. The Company's efficiency ratio, which is a measure of its ability to control expenses as a percentage of its revenues, improved to 35% in Q2-11, from 41% in Q1-11 and 36% in Q2-10.
  • At June 30, 2011, Intervest National Bank's regulatory capital ratios were well above its minimum requirements and were as follows: Tier One Leverage -10.41%; Tier One Risk-Based -14.19%; and Total Risk-Based Capital - 15.45%. The Bank's minimum required capital ratios as per its agreement with its regulator are 9%, 10% and 12%, respectively.
  • Common book value per share increased to $7.81 at June 30, 2011.

Net earnings for Q2-11 increased by $54.3 million over Q2-10 due to the following: a $94.0 million decrease in the total provision for loan and real estate losses (reflecting a large provision recorded in connection with the Q2-10 bulk sale and fewer problem assets and credit rating downgrades); a $1.6 million decrease in real estate expenses (reflecting less real estate owned); a $0.5 million increase in noninterest income (reflecting primarily increased income from loan prepayments and other related fees); and a $0.2 million decrease in noninterest expenses (reflecting primarily lower data processing costs and professional fees). The total of these items was partially offset by a $0.5 million decrease in net interest and dividend income (described below) and a $41.5 million increase in tax expense (due to pre-tax income in Q2-11 versus a large pre-tax loss in Q2-10). The Company's effective tax rate was 44.6% in Q2-11 and 43.2% in Q2-10.

1 of 6

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,098.45 +18.88 0.11%
S&P 500 2,003.37 +6.63 0.33%
NASDAQ 4,580.2710 +22.5760 0.50%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs