INTERFIRST BANKCORP, INC. REPORTS EARNINGS
INTERFIRST BANKCORP, INC. REPORTS EARNINGS ANN ARBOR, Mich., July 24, /PRNewswire/ -- InterFirst Bankcorp, Inc.
(NASDAQ: INFB), the parent company for InterFirst Federal Savings Bank, today reported record six-month net earnings of $2,680,000 or $2.85 per share for the six months ended June 30, 1992, a 337-percent increase in earnings compared to $613,000 or $0.67 per share for the comparable six months ended June 30, 1991.
"Earnings for the first six months of 1992 are a result of continued increases in core income, resulting from improved interest rate spreads and increased loan servicing fee income, and from the sale of approximately $300 million in loan servicing, which was made possible by a dramatic increase in loan production during the period," Chairman Stanley Rhodes noted. "We are extremely pleased with our continued growth in loan production and earnings, which reflects InterFirst's focused emphasis on mortgage banking and traditional residential lending." During the first six months of 1992, InterFirst originated or acquired $543 million of residential mortgage loans throughout the country as compared to $261 million during the same period in 1991. This growth reflects both expansion of InterFirst's marketing efforts and substantial refinancing activity in the first quarter of 1992," noted Rhodes. "While new lows in mortgage rates have appeared to have stimulated a new wave of refinancings in the past 30 days, the bank intends to resume its aggressive national marketing efforts aimed at producing new mortgage loans." As a result of increased loan production, InterFirst was able to increase its portfolio of mortgage loans serviced for others 34 percent from $511 million at Dec. 31, 1991, to $687 million as of June 30, 1992, net of the sale of over $300 million of servicing during this period. "Our portfolio of loan servicing for others has increased 73 percent since June 1991. This is significant because servicing fee income represents core non-interest income and helps to stabilize net income of the bank," Rhodes commented. Net interest income increased to $3,143,000 for the six months ended June 30, 1992, as compared to $2,275,000 for the same period in 1991. This growth reflects the bank's increased interest rate spread from 1.83 percent at June 30, 1991, to 2.58 percent at June 30, 1992. Deposits of the bank were $109 million at June 30, 1992, a 12-percent increase from the $97 million at Dec. 31, 1991. InterFirst remains in compliance with all regulatory capital standards. Its tangible and core capital levels are 5.70 percent and its risk-based capital ratio is 12.81 percent. InterFirst Bankcorp, Inc. is the parent company of InterFirst Federal Savings Bank which services the public through five full-service branches in Ann Arbor, Ypsilanti, Ypsilanti Township, Milan and Saline, Mich. InterFirst shares are traded in the over-the-counter market under the NASDAQ symbol, INFB. INTERFIRST BANKCORP, INC. AND SUBSIDIARY SELECTED OPERATING DATA Three Months Ended Six Months Ended 6/30/92 6/30/91 6/30/92 6/30/91 (unaudited) (unaudited) Total interest income $3,288,901 $3,591,269 $7,222,472 $6,709,768 Total interest expense 1,786,099 2,301,037 4,079,820 4,434,927 Net interest income before provision for loan loss 1,502,802 1,290,232 3,142,652 2,274,841 Provision for loan loss 103,721 525,927 192,445 596,104 Net interest income after provision for loan loss 1,399,081 764,305 2,950,207 1,678,737 Total noninterest income 3,801,751 1,639,586 6,354,525 2,525,222 Total noninterest expense 2,747,108 1,598,464 5,243,525 3,045,619 Income before federal income taxes 2,453,724 805,427 4,061,207 1,158,340 Provision for federal income taxes 827,000 407,600 1,381,000 545,000 Net income $1,626,724 $397,827 $2,680,207 $613,340 Earnings per share:(a) Net income $1.73 $0.43 $2.85 $0.67 Weighted average no. of shares outstanding and common stock equivalents 941,788 914,901 939,945 914,901 INTERFIRST BANKCORP, INC. AND SUBSIDIARY SELECTED BALANCE SHEET DATA June 30, 1992 Dec. 31, 1991 Total assets $188,802,737 $199,496,287 Net mortgage backed securities 25,386,821 48,125,313 Net mortgage loans 124,055,391 137,223,888 Excess servicing fees and purchased mortgage servicing rights 3,760,541 2,840,430 Total deposits 109,341,833 96,931,386 Total shareholders' equity 11,134,764 8,495,601 Loans serviced for others $687,977,812 $511,358,384 Other information June 30, 1992 Dec. 31, 1991 Return on average assets(b) 2.79 pct 0.91 pct Return on average equity(b) 55.57 pct 19.53 pct Tangible capital to assets 5.70 pct 4.28 pct Core capital to assets 5.70 pct 4.28 pct Risk based capital to assets 12.81 pct 9.79 pct Non-performing assets/assets 2.93 pct 2.37 pct Reserves/net loans 1.24 pct 0.97 pct Net interest rate spread 2.58 pct 2.12 pct Earnings per share $2.85 $1.67 Book value per share $11.67 $9.35 Notes: (a) June 1991 per-share amounts give effect to the 3-for-1 stock split which the board of directors authorized on Jan. 27, 1992. (b) June 1992 return on average asset ratio and return on average equity ratio have been annualized. -0- 7/24/92 /CONTACT: Ronald M. Ciolek, president, InterFirst Bankcorp, 313-665-3700/ (INFB) CO: InterFirst Bankcorp, Inc. ST: Michigan IN: FIN SU: ERN
SB-ML -- DE004 -- 2935 07/24/92 09:39 EDT
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|Date:||Jul 24, 1992|
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