First International Bancorp, Inc. Reports 55% Increase in Net Income, New Alliances with the Korean Federation of Small Business and Yankee Energy System, and Expansion into the St. Louis Market.HARTFORD Hartford, city (1990 pop. 139,739), state capital, Hartford co., central Conn., on the west bank of the Connecticut River; settled as Newtown 1635–36 on the site of a Dutch trading post (1633; abandoned 1654), inc. 1784. , Conn.--(BUSINESS WIRE)--April 27, 1999-- First International Bancorp, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :FNCE FNCE Food & Nutrition Conference & Expo ), parent of First International Bank, today announced a 55% increase in net income to $2.2 million for the first quarter of 1999 compared with $1.4 million for the first quarter of 1998. The increase was primarily due to the sale of the Company's retail branch facility, which was partially offset by sale-related and other expenses. On a diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. basis, earnings increased 59% to $0.27 per share from $0.17 per share a year earlier. Return on average assets and return on average equity were 3.17% and 17.91%, respectively, on an annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. basis. The Company's total capital increased to $51.3 million representing 21% of risk weighted assets at March 31, 1999. Loan originations The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. for the first quarter of 1999 totaled $92.8 million, up 19% over the first quarter of 1998, with international loan originations representing 29% of total originations. Total on-balance sheet loans at March 31, 1999 were $109.3 million, down from $156.1 million a year earlier, and loans held-for-sale increased $20.0 million to $28.6 million at March 31, 1999; both trends are consistent with the Company's loan securitization Securitization The process of creating a financial instrument by combining other financial assets and then marketing them to investors. Notes: Mortgage backed securities are a perfect example of securitization. May also be spelled as "securitisation. and sales strategy. Loan sales totaled $60.4 million during the first quarter of 1999 versus $48.9 million a year earlier. First quarter 1999 loan sales consisted primarily of guaranteed loans and sales of balances under revolving lines of credit to a commercial paper conduit conduit /con·du·it/ (kon´doo-it) channel. ileal conduit the surgical anastomosis of the ureters to one end of a detached segment of ileum, the other end being used to form a stoma on the facility. Loan servicing Loan servicing is the process by which a mortgage bank or subservicing firm collects the timely payment of interest and principal from borrowers. The level of service varies depending on the type loan and the terms negotiated between the firm and the investor seeking their services. income totaled $1.2 million during the quarter, representing a 29% increase over the first quarter of 1998. Total loans managed by the Company, including loans retained on-balance sheet and sold to investors, were $823.1 million at March 31, 1999. There were no loan securitization transactions during the first quarter of 1999. Brett n. 1. Same as Britzska. N. Silvers, chairman and chief executive officer of the Company, stated that, "We are very pleased with the growth of loan originations to our niche market A niche market also known as a target market is a focused, targetable portion (subset) of a market sector. By definition, then, a business that focuses on a niche market is addressing a need for a product or service that is not being addressed by mainstream providers. of family-owned industrial companies, both domestically and abroad." Leslie Leslie (Gaelic, derived from a surname meaning 'garden of hollies,'grey fortress, or'garden by the pool')[1] can refer to any of the following: Places in Scotland:
Canadian-born American economist, writer, and diplomat who served as U.S. ambassador to India (1961-1963). His works include The Great Crash (1955). Noun 1. , First International's president and chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. , added that, "We are continuing to invest significant resources in risk management and operational systems to support the Company's geographic, product line and loan servicing expansion. Continued diversification Diversification A risk management technique that mixes a wide variety of investments within a portfolio. It is designed to minimize the impact of any one security on overall portfolio performance. Notes: Diversification is possibly the greatest way to reduce the risk. of our funding sources also remains a primary focus." Strategic Alliance with Korean Korean, language of uncertain ancestry. It is thought by some scholars to be akin to Japanese, by others to be a member of the Altaic subfamily of the Ural-Altaic family of languages (see Uralic and Altaic languages), and by still others to be unrelated to any known Federation of Small Business First International Bank also announced that, on March 26, 1999, it signed a strategic alliance agreement with the Korean Federation of Small Business (KFSB KFSB Korean Federation of Small Business ). KFSB is a non-profit organization A non-profit organization (abbreviated "NPO", also "non-profit" or "not-for-profit") is a legally constituted organization whose primary objective is to support or to actively engage in activities of public or private interest without any commercial or monetary profit purposes. based in Seoul Seoul (sā`  l, sā` l, sōl), city (1995 pop. 10,229,262), capital of South Korea, NW South Korea, on the Han River. ,
Korea Korea (kôrē`ə, kə–), Korean Hanguk or Choson, region and historic country (85,049 sq mi/220,277 sq km), E Asia. that was founded in 1962 and currently represents the interests of
over 2.7 million small businesses throughout the country. Mr. Silvers
recently met with KFSB president, Mr. Sang Hee Park, in Seoul as part of
the Bank's continuing international marketing efforts. According to according toprep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Silvers, "KFSB's membership includes thousands of industrial companies which may benefit from our financing programs. Through this alliance, we have agreed to organize joint marketing efforts and promote each other's services within the Korean manufacturing sector in order to bolster This article is about the pillow called a bolster. For other meanings of the word "bolster", see bolster (disambiguation). A bolster (etymology: Middle English, derived from Old English, and before that the Germanic word bulgstraz U.S.-Korean trade relations." Energy Key Commercial Loan Program Now Available in Southern New England New England, name applied to the region comprising six states of the NE United States—Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, and Connecticut. The region is thought to have been so named by Capt. First International Bank and Meriden Meriden (mĕr`ĭdən), city (1990 pop. 59,479), New Haven co., S central Conn.; settled 1661, inc. as a town 1806, as a city 1867, town and city consolidated 1922. Silverware and pewter were made there in the 18th cent. , Connecticut-based Yankee Yankee, term used by Americans generally in reference to a native of New England and by non-Americans, especially the British, in reference to an American of any section. Energy System recently announced a new strategic alliance which offers Yankee Energy's commercial and industrial customers throughout Southern New England access to its Energy Key Commercial Financing Program. The program provides financing for energy efficient plant and equipment upgrades by commercial and industrial businesses in order to lower their operating costs operating costs npl → gastos mpl operacionales . Benefits of the Energy Key Program include: extended repayment terms, competitive interest rates, and the ability to finance up to 100 percent of the cost of equipment, installation and leasehold improvements Leasehold Improvement Improvements on a leased asset that increase the value of the asset. Notes: A leasehold improvement is classified as an asset that must be depreciated over time. related to energy efficient investments. Yankee Energy is the first energy services company in the region to enter into an alliance with First International for this type of financing program. "We are excited about the opportunity to expand our unique energy financing product line through an alliance with such a strong regional utility as Yankee Energy," said Paul Paul, 1901–64, king of the Hellenes (1947–64), brother and successor of George II. He married (1938) Princess Frederika of Brunswick. During Paul's reign Greece followed a pro-Western policy, and the Cyprus question was temporarily resolved. J. Falvey Falvey is a surname which is derived from O'Failve, a Gaelic name which literally means "lively, pleasant, sprightly, merry, cheerful" or, according to another historian, "joker". , executive vice president of First International. "This product is designed to enable small and medium size industrial companies to improve their bottom lines and take advantage of changes in the deregulating de·reg·u·late tr.v. de·reg·u·lat·ed, de·reg·u·lat·ing, de·reg·u·lates To free from regulation, especially to remove government regulations from: deregulate the airline industry. energy market." New Representative Office Opened in St. Louis Louis, titular duke of Burgundy Louis, 1682–1712, titular duke of Burgundy; grandson of King Louis XIV of France. He became heir to the throne on the death (1711) of his father, Louis the Great Dauphin. First International also announced the opening of an office in St. Louis, Missouri Missouri, state, United States Missouri (mĭz r`ē, –ə), one of the midwestern states of the United States. , bringing the total number of domestic representative
offices to 12, including its Hartford, Connecticut “Hartford” redirects here. For other uses, see Hartford (disambiguation).Hartford is the capital of the State of Connecticut. It is located in Hartford County on the Connecticut River, north of the center of the state. headquarters. The Company's expansion into the St. Louis market will be led by Gay Eggemeyer Schwer, vice president, a St. Louis area commercial banker. The new office, which follows First International's fourth quarter 1998 openings in Detroit Detroit, city, United States Detroit (dĭtroit`), city (1990 pop. 1,027,974), seat of Wayne co., SE Mich., on the Detroit River and between lakes St. Clair and Erie; inc. as a city 1815. , MI and Cleveland Cleveland, former county, England Cleveland, former county, NE England, created under the Local Government Act of 1972 (effective 1974). It was composed of the county boroughs of Hartlepool and Teeside and parts of the former counties of Durham and , OH, has been established to strengthen First International Bank's commitment to financing family-owned manufacturing companies in the Midwest Midwest or Middle West, region of the United States centered on the western Great Lakes and the upper-middle Mississippi valley. It is a somewhat imprecise term that has been applied to the northern section of the land between the Appalachians . Richard Ri·chard , Joseph Henri Maurice Known as "Rocket." 1921-2000. Canadian hockey player. A right wing for the Montreal Canadiens (1942-1960), he led his team to eight Stanley Cup championships and was the first player to score 50 goals in a W. Bradshaw, executive vice president of First International, observed that, "Industrial companies in the Midwest are seeking an institution such as ours that provides innovative solutions enhancing their cash flow and competitiveness in today's global marketplace." Dividend Additionally, the Board of Directors of First International Bancorp, Inc. declared a dividend of $0.03 per share to be paid on May 12, 1999 to stockholders of record as of May 5, 1999. First International Bancorp, Inc. and its wholly-owned subsidiary, First International Bank, Financing Manufacturers Worldwide(R), are both headquartered in Hartford, Connecticut. The Company specializes in providing innovative credit, trade and financial solutions to small and medium size manufacturing companies located in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and international emerging markets and is the nation's largest combined user of loan guarantee programs made available by the U.S. Small Business Administration, the U.S. Department of Agriculture and the Export-Import Bank Export-import Bank (Ex-IM Bank) The U.S. federal government agency that extends trade credits to U.S. companies to facilitate the financing of U.S. exports. of the U.S. The Company operates domestic representative offices in Boston, MA, Cleveland, OH, Detroit, MI, Hartford, CT, Morristown, NJ, Philadelphia, PA, Pittsburgh, PA, Providence Providence, city (1990 pop. 160,728), state capital and seat of Providence co., NE R.I., a port at the head of Providence Bay; founded by Roger Williams 1636, inc. as a city 1832. , RI, Rochester, NY, Springfield, MA, St. Louis, MO and Washington, D.C. and has international representatives in Argentina, Brazil, Central America Central America, narrow, southernmost region (c.202,200 sq mi/523,698 sq km) of North America, linked to South America at Colombia. It separates the Caribbean from the Pacific. , India, Indonesia, Korea, Mexico, Philippines, Poland, South Africa South Africa, Afrikaans Suid-Afrika, officially Republic of South Africa, republic (2005 est. pop. 44,344,000), 471,442 sq mi (1,221,037 sq km), S Africa. , Turkey and West Africa West Africa A region of western Africa between the Sahara Desert and the Gulf of Guinea. It was largely controlled by colonial powers until the 20th century. West African adj. & n. . Additional information on the Company can be obtained through its web site at http://firstinterbank.com. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 Any statements contained in this press release which are not historical facts are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. ; and, therefore, many important factors could cause actual results to differ materially from those in the forward-looking statements. Such factors include, but are not limited to, changes (legislative and otherwise) in the commercial financing industry, those relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc demand for the Company's services, pricing, market acceptance, the effect of economic conditions, litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. , competitive products and services, the ability to complete transactions, and other risks identified in the Company's Securities and Exchange Commission filings. Financing Manufacturers Worldwide(R) is a registered trademark of First International Bank. -0-
FIRST INTERNATIONAL BANCORP, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
ASSETS
March 31, December 31,
1999 1998
---- ----
Cash and cash equivalents $62,762 $58,335
Investment securities 35,242 35,619
Loans, net 102,525 108,958
Loans held-for-sale 28,597 8,577
Premises and equipment, net 3,544 3,815
Receivable from loans sold 25,797 43,610
Prepaid expenses and other assets 19,953 14,812
-------------------------------
Total assets $278,420 $273,726
-------------------------------
LIABILITIES AND STOCKHOLDERS' EQUITY
March 31, December 31,
1999 1998
---- ----
Deposits $222,751 $219,874
Other liabilities 4,365 4,781
-------------------------------
Total liabilities 227,116 224,655
Stockholders' equity:
Common stock, 8,159,687
and 7,952,637
shares issued
and outstanding 816 795
Paid-in capital in excess of par value 32,577 31,620
Retained earnings, net 17,911 16,656
-------------------------------
Total stockholders' equity 51,304 49,071
-------------------------------
Total liabilities and
stockholders' equity $278,420 $273,726
-------------------------------
FIRST INTERNATIONAL BANCORP, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(dollars in thousands, except per share amounts)
Three Months Ended
March 31,
1999 1998
---- ----
Interest income:
Loans, including net fees $2,789 $3,996
Investment securities 576 316
Federal funds sold 686 162
-----------------------
Total interest income 4,051 4,474
Interest expense 2,582 1,682
-----------------------
Net interest income 1,469 2,792
Provision for possible loan losses 1,539 781
-----------------------
Net interest income after
provision for possible loan losses (70) 2,011
Non-interest income:
Gain on sale of:
Guaranteed loans 2,787 2,696
Other loans 34 126
Loan-backed securitizations 147 -
Loans to commercial paper conduit 82 -
-----------------------
Total gains on loan sales 3,050 2,822
Loan servicing income and fees 1,196 927
Service charges and other deposit fees 68 145
Gain on sale of branch 8,915 -
Other income 16 15
-----------------------
Total non-interest income 13,245 3,909
-----------------------
Total operating income 13,175 5,920
-----------------------
Non-interest expense:
Salaries and benefits 6,667 2,237
Occupancy 455 371
Office expenses 210 184
Marketing 486 260
Furniture and equipment 294 225
Outside services 318 100
Loan collection 71 58
Other 851 106
-----------------------
Total non-interest expense 9,352 3,541
-----------------------
Income before income taxes 3,823 2,379
Provision for income taxes 1,606 976
-----------------------
Net income $2,217 $1,403
-----------------------
Basic earnings per common share $0.28 $0.18
-----------------------
Diluted earnings per common share $0.27 $0.17
-----------------------
FIRST INTERNATIONAL BANCORP, INC. AND SUBSIDIARY
SELECTED UNAUDITED FINANCIAL DATA
(dollars in thousands)
For the For the
Three Months Ended Three Months Ended
March 31, 1999 March 31, 1998
--------------------------------------
Principal Principal
Balance Percentage Balance Percentage
Loan Originations
Domestic:
SBA loans $27,336 29% $22,938 30%
USDA loans 11,131 12% 6,625 9%
Other commercial loans 27,424 30% 28,782 37%
--------------------------------------
Total domestic banking 65,891 71% 58,345 76%
International:
Ex-Im working capital lines 10,900 12% 8,939 11%
Ex-Im term loans 9,674 10% 9,364 12%
Other international loans 6,352 7% 1,107 1%
--------------------------------------
Total international
banking 26,926 29% 19,410 24%
--------------------------------------
Total commercial loan
originations $92,817 100% $77,755 100%
--------------------------------------
For the For the
Three Months Ended Three Months Ended
March 31, 1999 March 31, 1998
--------------------------------------
Principal Principal
Balance Percentage Balance Percentage
Loan Sales
Domestic:
SBA loans $19,396 32% $16,985 35%
USDA loans 7,805 13% 6,820 14%
Loan-backed securitizations 9,069 15% - 0%
Loans to commercial paper
conduit 10,229 17% - 0%
Other loans 2,135 4% 3,276 7%
--------------------------------------
Total domestic banking 48,634 81% 27,081 56%
International:
Ex-Im working capital lines 3,848 6% 4,620 9%
Ex-Im term loans 7,866 13% 17,243 35%
--------------------------------------
Total international
banking 11,714 19% 21,863 44%
--------------------------------------
Total commercial loan sales $60,348 100% $48,944 100%
--------------------------------------
FIRST INTERNATIONAL BANCORP, INC AND SUBSIDIARY
SELECTED UNAUDITED FINANCIAL DATA
(dollars in thousands)
March 31, December 31,
1999 1998
----------- ------------
Loan Portfolio
SBA loans $5,589 $22,774
USDA loans 15,669 14,017
Ex-Im working capital loans 3,639 4,796
Ex-Im term loans 341 62
Insured term loans 19,846 14,210
Import loans 3,943 4,681
Production equipment 4,906 4,020
Other commercial loans 34,885 35,785
Owner occupied commercial
mortgages 14,084 6,917
Non-owner occupied commercial
mortgages 2,788 3,139
Residential and other consumer
loans 3,614 3,545
--------------------------------------
Total loans 109,304 113,946
Loans held for sale 28,597 8,577
Less:
Discount on retained loans 2,621 1,419
Net deferred loan origination
costs (342) (431)
Allowance for loan losses 4,500 4,000
--------------------------------------
Loans, net $131,122 $117,535
--------------------------------------
Loans Serviced for Others
Guaranteed Loans
SBA $251,685 $245,073
USDA 81,584 75,526
Ex-Im working capital 11,634 14,788
Ex-Im medium term 100,256 102,638
Inventory buyer credit 2,534 300
FHLMC 452 455
--------------------------------------
Total guaranteed loans 448,145 438,780
Unguaranteed Portions and
Unguaranteed Loans
SBA 69,664 74,033
USDA 5,878 6,173
Other commercial 159,714 135,380
Home equity lines 1,800 2,166
--------------------------------------
Total unguaranteed loans 237,056 217,752
--------------------------------------
Total loans serviced for
others $685,201 $656,532
--------------------------------------
Total loans under management $823,102 $779,055
--------------------------------------
FIRST INTERNATIONAL BANCORP, INC. AND SUBSIDIARY
SELECTED UNAUDITED FINANCIAL DATA
(dollars in thousands)
Three Months Ended
March 31,
-------------------------
1999 1998
Gain on Loan Sales:
SBA sales $1,414 $1,308
USDA sales 967 568
Ex-Im working capital sales 85 79
Ex-Im term sales 321 741
Other loan sales 34 126
Loan-backed securitizations 147 -
Loans to commercial paper conduit 82 -
-------------------------
Total gain on loan sales $3,050 $2,822
-------------------------
March 31, December 31, March 31,
1999 1998 1998
------------ ------------ ----------
Other Data:
Allowance for Loan Losses/Loans 3.32% 3.34% 2.34%
Allowance for Loan
Losses/Non-performing Loans 113% 129% 123%
Net Charge-offs/Average Loans 3.02% 1.37% 0.60%
Non-performing loans $4,041 $3,104 $3,244
Non-performing Loans/Loans 2.93% 2.53% 2.08%
Non-performing Assets/Assets 1.45% 1.17% 1.41%
Weighted average shares for the
three month periods for:
Basic EPS 7,957,342 7,947,839 7,876,209
Diluted EPS 8,164,240 8,153,050 8,214,620
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