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INTERFIRST BANKCORP REPORTS NET EARNINGS FOR THREE MONTHS ENDED SEPT. 30

INTERFIRST BANKCORP REPORTS NET EARNINGS FOR THREE MONTHS ENDED SEPT. 30
 ANN ARBOR, Mich., Nov. 22 /PRNewswire/ -- InterFirst Bankcorp, Inc. (NASDAQ: INFB), the parent company for InterFirst Federal Savings Bank, today reported net earnings of $390,959 or $1.29 per share for the three months ended Sept. 30, 1991, a 49-percent increase compared to earnings of $262,664 for the same period a year earlier.
 Net income for the nine months ended Sept. 30, 1991, was $1,004,299 or $3.30 per share, a 157-percent increase compared to $390,163 for the nine months ended Sept. 30, 1990. Year-to-year earnings per share comparisons are not available because InterFirst converted from mutual to stock form in November 1990.
 "We are extremely pleased with both our growth in loan production and earnings, which reflect our increased emphasis on mortgage banking and traditional residential lending, since our stock conversion last November," said Chairman Stanley Rhodes. "September's earnings are a result of a continued increase in net interest income resulting from improved interest rate spreads and from the closing of $87 million in loan servicing sales during the quarter, which was made possible by our increased loan production," Rhodes added.
 InterFirst acquired over $171 million and over $415 million of residential mortgage loans throughout the country during the three months and nine months ended Sept. 30, 1991, respectively, as compared to $85 million and $170 million for comparable periods in 1990. "This growth reflects both an increase in InterFirst's marketing efforts and an increase in refinancings," noted Rhodes.
 As a result of increased loan production, InterFirst was able to increase its portfolio of mortgage loans serviced for others to $460 million at Sept. 30, 1991, up from $396 million at June 30, 1991, and $359 million in 1990. In the third quarter, InterFirst completed the first of a two-installment sale of approximately $200 million of loan servicing. The first installment of servicing closed in September and the second installment closed in October 1991.
 Net interest income of the bank has also increased each quarter of 1991, from $984,609 for the three months ended March 31, 1991, to $1,283,448 for the three months ended Sept. 30, 1991. This growth reflects InterFirst's increased interest rate spread from 1.67 percent as of Dec. 31, 1990, to 2.05 percent as of Sept. 30, 1991, and its asset growth to $163 million of assets at Sept. 30, 1991, from $143 million at Dec. 31, 1990. Bank deposits have increased from $58 million at Dec. 31, 1990, to over $97 million as of Sept. 30, 1991, partially due to the success of the Ann Arbor full-service branch which has brought in over $30 million in deposits since it opened in November 1990.
 Bank income was reduced by provisions to loan losses of $150,000 and $745,000 during the three months and nine months ended Sept. 30, 1991, respectively. As a result of these provisions, the bank's Allowance for Possible Loan Losses was substantially increased from $176,000 at Dec. 31, 1990, to $779,000 as of Sept. 30, 1991, or 2.31 percent of net loans receivable and 0.48 percent of total assets. Non-performing assets increased to $3.6 million during the nine months ended Sept. 31, 1991, primarily due to the status of a line of credit and participation agreements with a specific borrower, which represents approximately 65 percent of non-performing assets. The bank believes it has sufficient reserves for this asset.
 InterFirst remains in compliance with all current and proposed regulatory capital standards. Its tangible and core capital levels are 4.78 percent and its risk-based capital ratio is 10.86 percent. The bank's book value per share as of Sept. 30, 1991, was $27.65 per share, which does not include the value of its mortgage loan servicing portfolio which is an off-book asset.
 InterFirst Bankcorp, Inc. is the parent company of InterFirst Federal Savings Bank which serves 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 Nine Months Ended
 Sept. 30, Sept. 30, Sept. 30, Sept. 30,
 1991 1990 1991 1990
 (Unaudited) (Unaudited)
 Total interest
 income 3,522,150 2,668,949 10,231,918 6,651,575
 Total interest
 expense 2,238,702 1,894,511 6,673,629 4,505,018
 Net interest
 income before
 provision for
 loan loss 1,283,448 774,438 3,558,289 2,146,557
 Provision for
 loan loss 149,815 17,853 745,919 70,777
 Net interest
 income after
 provision for
 loan loss 1,133,633 756,585 2,812,370 2,075,780
 Total non-interest
 income 1,263,806 672,942 3,789,028 1,254,831
 Total non-interest
 expense 1,687,480 1,045,963 4,733,099 2,705,048
 Income before
 federal income
 taxes 709,959 383,564 1,868,299 625,563
 Provision for
 federal income
 taxes 319,000 120,900 864,000 235,400
 Net income $390,959 $262,664 $1,004,299 $390,163
 Earnings per share:
 Net income $1.29 N/A $3.30 N/A
 Weighted avg. No. of
 shares outstanding
 and common stock
 equivalents 303,819 N/A 304,418 N/A
 INTERFIRST BANKCORP, INC. AND SUBSIDIARY
 SELECTED BALANCE SHEET DATA
 Sept. 30, 1991 Dec. 31, 1990
 (Unaudited)
 Total assets $162,963,939 $142,864,939
 Net mortgage-backed securities 39,046,862 54,878,729
 Net mortgage loans 102,568,024 76,094,134
 Excess servicing fees and purchased
 mortgage servicing rights 2,074,656 1,331,384
 Total deposits 97,041,209 58,764,880
 Total shareholders' equity 8,039,321 7,006,689
 Loans serviced for others $460,673,273 $359,521,570
 OTHER INFORMATION Sept. 30, 1991
 Return on average assets (annualized) 0.85 pct.
 Return on average equity (annualized) 18.28 pct.
 Tangible capital to assets 4.78 pct.
 Core capital to assets 4.78 pct.
 Risk-based capital to assets 10.86 pct.
 Non-performing assets / assets 2.23 pct.
 Net interest rate spread 2.05 pct.
 Earnings per share $3.30
 Book value per share $27.65
 -0- 11/22/91
 /CONTACT: Stanley H. Rhodes of InterFirst Bankcorp, 313-665-3700/
 (INFB) CO: InterFirst Bankcorp, Inc. ST: Michigan IN: FIN SU: ERN


KK-SB -- DE015 -- 6454 11/22/91 14:34 EST
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