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 Reports 2011 Fourth Quarter Earnings Of $2.7 Million Or $0.13 Per Share And Full Year Earnings Of $9.5 Million Or $0.45 Per Share

Intervest Bancshares Corporation (NASDAQ-GS: IBCA), parent company of Intervest National Bank, today reported its 2011 fourth quarter and full year financial results. Financial highlights for the quarter follow.
  • Net earnings for the fourth quarter of 2011 ("Q4-11") increased to $2.7 million, or $0.13 per diluted common share, from $0.4 million, or $0.02 per share, for the fourth quarter of 2010 ("Q4-10").
  • Earnings before deducting provisions for loan and real estate losses, real estate expenses, income taxes and preferred dividend requirements amounted to $7.8 million in Q4-11, compared to $6.6 million in Q4-10.
  • Provisions for loan and real estate losses decreased to $1.4 million in Q4-11, from $4.7 million in Q4-10. The allowance for loan losses amounted to $30.4 million at December 31, 2011 and represented 2.61% of total outstanding loans.
  • Net interest and dividend income was $10.6 million in Q4-11, compared to $10.4 million in Q4-10. The net interest margin improved to 2.22% in Q4-11, from 2.06% in Q4-10.
  • Noninterest expenses decreased to $3.8 million in Q4-11, from $4.9 million in Q4-10. The Company's efficiency ratio, which is a measure of its ability to control expenses as a percentage of its revenues, continues to be strong and was 32% in Q4-11, compared to 42% in Q4-10.
  • Nonaccrual loans and real estate owned (REO) totaled $86 million at December 31, 2011, compared to $87 million at September 30, 2011 and $80 million at December 31, 2010. Nonaccrual loans include certain restructured loans (TDRs) that are current and performing in accordance with their renegotiated terms, but are classified nonaccrual based on regulatory guidance. At December 31, 2011, such loans totaled $46 million and were yielding 5.08%, compared to $37 million yielding 4.71% at September 30, 2011 and $21 million yielding 2.98% at December 31, 2010.
  • Intervest National Bank's regulatory capital ratios continue to be well above its minimum requirements. At December 31, 2011, its actual ratios were as follows: Tier One Leverage - 11.21%; Tier One Risk-Based - 16.06%; and Total Risk-Based Capital - 17.33%, compared to its minimum requirements of 9%, 10% and 12%, respectively. The Bank's Tier 1 capital amounted to $218 million and was $43 million in excess of the required minimum for its leverage ratio.
  • Book value per common share increased to $8.07 at December 31, 2011, from $7.61 at December 31, 2010.

Net earnings for Q4-11 increased by $2.3 million over Q4-10 due to the following: a $3.3 million decrease in the total provision for loan and real estate losses (resulting from fewer credit rating downgrades on loans and writedowns of REO); a $1.1 million decrease in noninterest expenses (reflecting decreases of $0.9 million in FDIC premiums, $0.2 million in data processing costs and $0.2 million in professional fees, partially offset by a $0.2 million increase in salaries and benefits); and a $0.2 million increase in net interest and dividend income (as described below). The total of these items was partially offset by a $2.0 million increase in income tax expense (due to higher pre-tax income) and a $0.3 million increase in real estate expenses. The effective income tax rate was 46% in Q4-11 and Q4-10.

1 of 7

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
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%
YHOO $36.60 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs