SANTA ANA, CA / ACCESSWIRE / May 3, 2019 / Infinity Bank (INFT) (the "Bank") today reported unaudited financial results for the quarter ended March 31, 2019.
Highlights
Total deposits increased by $13.7 million, or 32.0%
Total loans increased by $8.0 million, or 57.2%
Total assets increased $13.2 million, or 18.7% to $83.7 million, compared to $70.5 million at the end of 2018
Bank received approval from U.S. Small Business Administration to offer SBA 7(a) and 504 loans
Bank partnered with the Small Business Development Corporation of Orange County to offer State Loan Guarantee Program loans
Loans
As of March 31, 2019, loans outstanding totaled $21.9 million, an increase of $8.0 million or 57.2% from $13.9 million at the end of the fourth quarter of 2018. Total loan commitments equaled $38.2 million, at the end of the first quarter of 2019.
Deposits
As of March 31, 2019, total deposits increased by $13.7 million, or 32.0% to $56.6 million compared to December 31, 2018. The Bank's cost of funds continued to remain low at 56 basis points even as it added deposit relationships to the balance sheet.
Net-Interest Income
Net-interest income in the first quarter of 2019 was $551 thousand, an increase of $185 thousand or 50.5% from the fourth quarter of 2018. The Bank's primary source of revenue was driven by interest income from loans, investment securities and deposits held at the Federal Reserve Bank. The Bank's net interest margin increased by 79 basis points for the first quarter of 2019 to 3.14% compared to the fourth quarter ending December 31, 2018.
Non-Interest Income
Total non-interest income was $19 thousand for the first quarter of 2019, a decrease of 36.6% or $11 thousand compared to the fourth quarter of 2018.
Non-Interest Expense
Total non-interest expense was $1.2 million for the quarter ended March 31, 2019, an increase of
$71 thousand or 6.3% from the fourth quarter of 2018. The increase in non-interest expense was a result of an increase in processing fees, audit expense, and an increase in salaries and employee benefits following the addition of new personnel.
Net Income
Net loss for the first quarter of 2019 totaled $734 thousand ($0.22 per share) versus a net loss of $852 thousand ($0.26 per share) for the fourth quarter of 2018, an improvement of 13.8%.
Capital
As of March 31, 2019, the Bank remained well-capitalized with a tier 1 risk-based capital ratio of 88.2%, a total risk-based capital ratio of 89.14%, and a tier 1 leverage ratio of 36.58%.
ABOUT INFINITY BANK
Infinity Bank is a community bank that commenced operations in February, 2018. The Bank is focused on serving the banking needs of commercial businesses, professional service entities, their owners, employees and families. The Bank offers a broad selection of depository products and services as well as business loan and commercial real estate financing products uniquely designed for each client. For more information about Infinity Bank and its services, please visit the website at www.goinfinitybank.com.
This news release contains a number of forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). These statements may be identified by use of words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "likely," "may," "outlook," "plan," "potential," "predict," "project," "should," "will," "would" and similar terms and phrases, including references to assumptions. Forward-looking statements are based upon various assumptions and analyses made by the Bank considering management's experience and its perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate under the circumstances. These statements are not guaranteeing of future performance and are subject to risks, uncertainties and other factors (many of which are beyond the Bank's control) that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Accordingly, you should not place undue reliance on such statements. Factors that could affect the Bank's results include, without limitation, the following: the timing and occurrence or non-occurrence of events may be subject to circumstances beyond the Bank's control; there may be increases in competitive pressure among financial institutions or from non-financial institutions; changes in the interest rate environment may reduce interest margins; changes in deposit flows, loan demand or real estate values may adversely affect the business of the Bank; unanticipated or significant increases in loan losses; changes in accounting principles, policies or guidelines may cause the Bank's financial condition to be perceived differently; changes in corporate and/or individual income tax laws may adversely affect the Bank's financial condition or results of operations; general economic conditions, either nationally or locally in some or all areas in which the Bank conducts business, or conditions in the securities markets or the banking industry may be less favorable than the Bank currently anticipates; legislation or regulatory changes may adversely affect the Bank's business; technological changes may be more difficult or expensive than the Bank anticipates; there may be failures or breaches of information technology security systems; success or consummation of new business initiatives may be more difficult or expensive than the Bank anticipates; or litigation or other matters before regulatory agencies, whether currently existing or commencing in the future, may delay the occurrence or non-occurrence of events longer than the Bank anticipates.
INFINITY BANK UNAUDITED STATEMENTS OF FINANCIAL CONDITION (Dollars in thousands)
March 31,
2019
December 31,
2018
ASSETS:
Cash and due from banks
$
46,311
$
40,285
Securities available for sale
14,968
15,715
Total loans
21,882
13,919
Allowance for loan and lease losses
(274
)
(174
)
Net Loans
21,608
13,745
Premises and equipment, net
507
527
Other assets
361
270
TOTAL ASSETS
$
83,755
$
70,542
LIABILITIES
Deposits:
Non-interest bearing
$
25,286
$
17,605
Interest bearing
31,333
25,283
Total deposits
56,619
42,888
Other liabilities
252
280
TOTAL LIABILITIES
56,871
43,168
Stockholders' Equity:
Common stock
32,429
32,362
Accumulated deficit
(4,934
)
(1,829
)
Net income (loss)
(734
)
(3,105
)
Accumulated other comprehensive gain (loss)
123
(54
)
TOTAL STOCKHOLDERS' EQUITY
26,884
27,374
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
$
83,755
$
70,542
INFINITY BANK UNAUDITED STATEMENTS OF EARNINGS (Dollars in thousands except share and per share amounts)
Quarter Ended
Quarter Ended
March 31,
2019
December 31,
2018
Interest Income:
Loans
$
273
$
97
Investment securities
107
104
Other short-term investments
234
189
Total interest income
614
390
Interest expense:
Deposits
63
24
Borrowed funds
-
-
Total interest expense
63
24
Net interest income
551
366
Provision for loan and lease losses
100
114
Net interest income after provision for loan and lease losses
451
252
Non-interest income:
Service charges and other fees
7
29
Other income
12
1
Total non-interest income
19
30
Non-interest expense:
Salaries and employee benefits
822
785
Occupancy
83
87
Furniture, fixture & equipment
42
40
Data processing
45
37
Professional & legal
55
62
Marketing
12
21
Other expense
145
101
Total non-interest expense
1,204
1,133
Income (loss) before taxes
(734
)
(851
)
Income tax expense
-
1
Net Income (Loss)
$
(734
)
$
(852
)
Earnings (loss) per share ("EPS"):
Basic
$
(0.22
)
$
(0.26
)
Common shares outstanding
3,300,000
3,300,000
INFINITY BANK UNAUDITED FINANCIAL HIGHLIGHTS
Quarter Ended
Quarter Ended
March 31,
2019
December 31,
2018
Performance Ratios (Based upon Reported Net Income):
