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

Stocks in this article: IBCA

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 Six-Months Ended
June 30,       June 30,
Selected Operating Data:       2011       2010       2011       2010
Interest and dividend income $ 23,917       $ 27,429 $ 47,511       $ 57,060
Interest expense   13,044           16,064           26,287           33,205
Net interest and dividend income 10,873 11,365 21,224 23,855
Provision for loan losses 742 87,533 2,787 97,172
Noninterest income 1,007 518 1,330 1,030
Noninterest expenses:
Provision for real estate losses 1,278 8,520 1,278 10,521
Real estate expenses 554 2,121 879 3,097
All other noninterest expenses   4,099           4,330           8,509           9,019
Earnings (loss) before income taxes 5,207

(90,621)

 

9,101

(94,924)

Provision (benefit) for income taxes   2,321          

(39,172)

 

        4,062          

(40,997)

Net earnings (loss) before preferred dividend requirements 2,886

(51,449)

 

5,039

(53,927)

Preferred dividend requirements (1)   428           415           855           824
Net earnings (loss) available to common stockholders $ 2,458         $

(51,864)

 

      $ 4,184         $

(54,751)

Basic earnings (loss) per common share $ 0.12 $

(6.02)

 

$ 0.20 $

(6.48)

Diluted earnings (loss) per common share       $ 0.12         $

(6.02)

 

      $ 0.20         $

(6.48)

Average shares used for basic and diluted earnings (loss) per share (2) 21,126,489 8,616,416 21,126,489 8,444,569
Common shares outstanding at end of period 21,126,489 9,120,812 21,126,489 9,120,812
Common stock options/warrants outstanding at end of period         1,045,422           1,018,122           1,045,422           1,018,122
Yield on interest-earning assets

4.94%

 

5.15%

 

4.91%

 

5.23%

Cost of funds

2.92%

 

3.24%

 

2.94%

 

3.30%

Net interest margin        

2.24%

 

       

2.13%

 

       

2.19%

 

       

2.19%

Return on average assets (annualized)

0.57%

 

-9.19%

 

0.49%

 

-4.71%

Return on average common equity (annualized)

7.00%

 

-117.99%

 

6.15%

 

-59.09%

Effective income tax rate

44.57%

 

43.23%

 

44.63%

 

43.19%

Efficiency ratio (3)        

35%

 

       

36%

 

       

38%

 

       

36%

Average loans outstanding $ 1,287,029 $ 1,539,625 $ 1,308,104 $ 1,609,827
Average securities outstanding 640,194 567,388 627,844 567,014
Average short-term investments outstanding 16,497 29,133 16,774 24,167
Average assets outstanding         2,029,339           2,240,340           2,037,623           2,287,703
Average interest-bearing deposits outstanding $ 1,712,380 $ 1,889,007 $ 1,722,225 $ 1,924,871
Average borrowings outstanding 79,334 100,362 80,455 104,671
Average stockholders' equity         188,993           198,049           187,914           206,097
                                         
        At Jun 30,       At Mar 31,       At Dec 31,       At Sep 30,       At Jun 30,
Selected Financial Condition Information:       2011       2011       2010       2010       2010
Total assets       $

2,050,379

      $ 2,014,125       $ 2,070,868       $ 2,104,098       $ 2,164,442
Cash and short-term investments 14,461 29,079 23,911 13,815 35,535
Securities held to maturity 691,334 589,940 614,335 613,844 621,244
Loans, net of unearned fees 1,252,128 1,300,546 1,337,326 1,363,312 1,395,564
Allowance for loan losses 31,772 32,400 34,840 32,250 30,350
Allowance for loan losses/net loans

2.54%

 

2.49%

 

2.61%

 

2.37%

 

2.17%

Deposits 1,735,292 1,706,630 1,766,083 1,806,834 1,852,356
Borrowed funds and accrued interest payable 82,634 82,072 84,676 89,135 98,582
Preferred stockholder's equity 24,045 23,948 23,852 23,755 23,659
Common stockholders' equity 167,109 164,243 162,108 140,317 140,643

Common book value per share (4)

        7.81           7.69           7.61           15.26           15.33
Loan chargeoffs for the quarter $ 1,374 $ 4,513 $ 386 $ 298 $ 85,483
Loan recoveries for the quarter 4 28 283 600 -
Real estate chargeoffs for the quarter - - 2,970 912 11,732
Security impairment writedowns for the quarter         -           105           351           293           18
Nonaccrual loans $ 45,352 $ 45,192 $ 52,923 $ 38,560 $ 18,927
Real estate owned, net of valuation allowance 25,786 27,064 27,064 38,792 34,259
Investment securities on a cash basis 4,475 4,475 2,318 2,670 2,963
Accruing troubled debt restructured (TDR) loans (5). 5,619 5,630 3,632 617 21,362
Loans 90 days past due and still accruing 4,594 3,879 7,481 16,865 8,788
Loans 31-89 days past due and still accruing         7,704           21,785           11,364           5,264           13,066
(1)   Represents dividend requirements on 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 reporting periods.
(3) Represents noninterest expenses (excluding provisions for real estate losses & real estate expenses) as a percentage of net interest and dividend income plus noninterest income.
(4) Represents common stockholders' equity less preferred dividends in arrears ($2.1 million and $1.4 million at June 30, 2011 and December 31, 2010 only) divided by common shares outstanding.
(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)

      Six-Months

Ended

June 30,

2011

      Year

Ended

Dec 31,

2010

      Year

Ended

Dec 31,

2009

      Year

Ended

Dec 31,

2008

      Year

Ended

Dec 31,

2007

Balance Sheet Highlights:                        
Total assets $ 2,050,379 $ 2,070,868 $ 2,401,204 $ 2,271,833 $ 2,021,392
Cash and short-term investments 14,461 23,911 7,977 54,903 33,086
Securities held to maturity 691,334 614,335 634,856 475,581 344,105
Loans, net of unearned fees 1,252,128 1,337,326 1,686,164 1,705,711 1,614,032
Allowance for loan losses 31,772 34,840 32,640 28,524 21,593
Allowance for loan losses/net loans

2.54%

 

2.61%

 

1.94%

 

1.67%

 

1.34%

Deposits 1,735,292 1,766,083 2,029,984 1,864,135 1,659,174
Borrowed funds and accrued interest payable 82,634 84,676 118,552 149,566 136,434
Preferred stockholder's equity 24,045 23,852 23,466 23,080 -
Common stockholders' equity 167,109 162,108 190,588 188,894 179,561
Common book value per share (1) 7.81 7.61 23.04 22.84 22.23
Market price per common share         3.06           2.93           3.28           3.99           17.22
Asset Quality Highlights
Nonaccrual loans $ 45,352 $ 52,923 $ 123,877 $ 108,610 $ 90,756
Real estate owned, net of valuation allowance 25,786 27,064 31,866 9,081 -
Investment securities on a cash basis 4,475 2,318 1,385 - -
Accruing troubled debt restructured loans (2) 5,619 3,632 97,311 - -
Loans past due 90 days and still accruing 4,594 7,481 6,800 1,964 11,853
Loans past due 31-89 days and still accruing 7,704 11,364 5,925 18,943 25,122
Loan chargeoffs 5,887 100,146 8,103 4,227 -
Loan recoveries 32 883 1,354 - -
Real estate chargeoffs - 15,614 - - -
Impairment writedowns on security investments         105           1,192           2,258           -           -
Statement of Operations Highlights:
Interest and dividend income $ 47,511 $ 107,072 $ 123,598 $ 128,497 $ 131,916
Interest expense   26,287           62,692           81,000           90,335           89,653
Net interest and dividend income 21,224 44,380 42,598 38,162 42,263
Provision for loan losses 2,787 101,463 10,865 11,158 3,760
Noninterest income 1,330 2,110 297 5,026 8,825
Noninterest expenses:
Provision for real estate losses 1,278 15,509 2,275 518 -
Real estate expenses 879 4,105 4,945 4,281 489
All other noninterest expenses   8,509           19,069           19,864           14,074           12,387
Earnings (loss) before income taxes 9,101 (93,656 ) 4,946 13,157 34,452
Provision (benefit) for income taxes   4,062           (40,348 )         1,816           5,891           15,012
Net earnings (loss) before preferred dividend requirements 5,039 (53,308 ) 3,130 7,266 19,440
Preferred dividend requirements (3)   855           1,667           1,632           41           -
Net earnings (loss) available to common stockholders $ 4,184         $ (54,975 )       $ 1,498         $ 7,225         $ 19,440
Basic earnings (loss) per common share $ 0.20 $ (4.95 ) $ 0.18 $ 0.87 $ 2.35
Diluted earnings (loss) per common share $ 0.20 $ (4.95 ) $ 0.18 $ 0.87 $ 2.31

Adjusted net earnings (loss) used to calculate

diluted earnings (loss) per common share $ 4,184 $ (54,975 ) $ 1,498 $ 7,225 $ 19,484
Average common shares used to calculate:
Basic earnings (loss) per common share 21,126,489 11,101,196 8,270,812 8,259,091 8,275,539
Diluted earnings (loss) per common share 21,126,489 11,101,196 8,270,812 8,267,781 8,422,017
Common shares outstanding   21,126,489           21,126,489           8,270,812           8,270,812           8,075,812
Net interest margin (4)

2.19%

 

2.11%

 

1.83%

 

1.79%

 

2.11%

Return on average assets

0.49%

 

-2.42%

 

0.13%

 

0.34%

 

0.96%

Return on average common equity

6.15%

 

-32.20%

 

1.65%

 

3.94%

 

11.05%

Effective income tax rate

44.63%

 

43.08%

 

36.72%

 

44.77%

 

43.57%

Efficiency ratio (5)        

38%

 

       

41%

 

       

46%

 

       

33%

 

       

24%

(1)   Represents common stockholders' equity less preferred dividends in arrears ($2.1 million and $1.4 million at June 30, 2011 and December 31, 2010 only) divided by 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 cumulative preferred stock held by the U.S. Treasury and amortization of related preferred stock discount.
(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 2.24% for the six-months ended June 30, 2011, 2.26% for 2010, 1.72% for 2009, 1.77% for 2008 and 2.60% for 2007.
(5) Represents noninterest expenses (excluding provisions for real estate losses and real estate expenses) as a percentage of net interest and dividend income plus noninterest income.




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