This Day On The Street
Continue to site
ADVERTISEMENT
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 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

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
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,922.29 -148.11 -0.82%
S&P 500 2,093.95 -20.54 -0.97%
NASDAQ 4,945.1170 -71.8120 -1.43%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs