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 2012 First Quarter Earnings Of $2.8 Million Or $0.13 Per Share

Intervest Bancshares Corporation (NASDAQ-GS: IBCA), parent company of Intervest National Bank, today reported its financial results for the first quarter of 2012. Financial highlights follow.
  • Net earnings for the first quarter of 2012 ("Q1-12") increased to $2.8 million, or $0.13 per diluted common share, from $1.7 million, or $0.08 per share, for the first quarter of 2011 ("Q1-11").
  • Earnings before deducting provisions for loan and real estate losses, real estate expenses, income taxes and preferred dividend requirements increased to $6.9 million in Q1-12, from $6.3 million in Q1-11.
  • Provisions for loan and real estate losses decreased to $0.5 million in Q1-12, from $2.0 million in Q1-11. The allowance for loan losses amounted to $29.2 million at March 31, 2012 and represented 2.52% of total outstanding loans.
  • Net interest and dividend income decreased to $10.0 million in Q1-12, from $10.4 million in Q1-11, while the net interest margin improved slightly to 2.16% in Q1-12, from 2.14% in Q1-11. New loan originations for Q1-12 increased to $50 million, from $7 million in Q1-11.
  • Noninterest expenses decreased to $4.2 million in Q1-12, from $4.4 million in Q1-11. The efficiency ratio (which measures the Company's ability to control expenses as a percentage of revenues) continued to be excellent and was 38% in Q1-12, compared to 41% in Q1-11.
  • Nonaccrual loans and real estate owned (REO) totaled $81 million at March 31, 2012, compared to $86 million at December 31, 2011. Nonaccrual loans include certain restructured loans (TDRs) that are current as to payments and performing in accordance with their renegotiated terms, but are required to be classified nonaccrual based on regulatory guidance. At March 31, 2012, such loans totaled $44 million compared to $46 million at December 31, 2011 and they were yielding approximately 5%.
  • Intervest National Bank's regulatory capital ratios continued to increase and be well above its minimum requirements. At March 31, 2012, its actual capital ratios were as follows: Tier One Leverage - 11.73%; Tier One Risk-Based - 16.88%; and Total Risk-Based Capital - 18.14%, compared to its minimum requirements of 9%, 10% and 12%, respectively. The Bank's Tier 1 capital amounted to $225 million and was $52 million in excess of the required minimum for its Tier One Leverage ratio.
  • Book value per common share was $8.04 at March 31, 2012, compared to $8.07 at December 31, 2011, reflecting increased common shares outstanding from restricted stock awards made to directors and employees in Q1-12 under the Company's Long Term Incentive Plan.

Net earnings for Q1-12 increased by $1.1 million over Q1-11 due to the following: a $1.5 million decrease in the total provision for loan and real estate losses (resulting from fewer credit rating downgrades on loans); a $0.8 million increase in noninterest income (reflecting primarily higher income from loan prepayments) and a $0.2 million decrease in noninterest expenses (reflecting primarily a $0.5 million decrease in FDIC premiums, partially offset by a $0.3 million aggregate increase in salaries, benefits and stock compensation expense). The total of these items was partially offset by a $0.9 million increase in income tax expense (due to higher pre-tax income); a $0.4 million decrease in net interest and dividend income (as described below) and a $0.1 million increase in real estate expenses. The effective income tax rate was 45% in both quarterly periods.

1 of 5

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 $95.18 1.64%
FB $117.43 -0.96%
GOOG $692.36 -0.84%
TSLA $232.32 -3.92%
YHOO $36.01 -1.42%


Chart of I:DJI
DOW 17,750.91 -140.25 -0.78%
S&P 500 2,063.37 -18.06 -0.87%
NASDAQ 4,763.2240 -54.37 -1.13%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs