NEWPORT BEACH, Calif.--(BUSINESS WIRE)--Independence Bank (OTCBB: IDPK) announced today unaudited net income of $982,000 or $0.20 per basic share for the three months ended June 30, 2014, an increase of 204% as compared to $322,000 or $0.07 per basic share for the same period a year ago. For the three months ended June 30, 2014, Independence Bank's return on average assets was 0.95% and return on average equity was 8.43%, up from a return on average assets of 0.46% and a return on average equity of 3.19% for the same period a year ago.
For the six months ended June 30, 2014, net income improved to $1,759,000, or $0.37 per basic share, from $814,000, or $0.19 per basic share, in the first six months of 2013. For the six months ended June 30, 2014, the Bank's return on average assets was 0.83% and return on average equity was 7.95%, up from a return on average assets of 0.57% and a return on average equity of 4.04% for the same period a year ago.
Total loans net of reserves were $315.2 million as of June 30, 2014, compared to $184.3 million at June 30, 2013, an increase of $130.8 million or 71%. Loan origination volume for the three months and six months ended June 30, 2014 was $39.4 million and $87.8 million, respectively, compared to $7.0 million and $17.3 million respectively for the three months and six months ended June 30, 2013.
Total deposits were $340.2 million as of June 30, 2014, with non-interest bearing and NOW accounts totaling $91.9 million, compared to total deposits of $188.9 million and $33.3 million of non-interest bearing and NOW accounts at June 30, 2013.
“Our bank continues to build momentum on both sides of the balance sheet, with loan growth strengthening and the deposit mix continuing to improve organically and with the Premier Service acquisition,” said Chuck Thomas, Independence Bank President and Chief Executive Officer. “With the Premier Service conversion behind us as of May, the bank is again 100% focused on its core model of strong organic growth with appropriate risk management.”
The Bank ended the quarter with a net interest margin of 5.07%, compared to 4.24% for the same period a year ago. The wide margin is partially attributable to interest income recognized through the accretion of discount on purchased loans. The Bank’s efficiency ratio for the three months ended June 30, 2014 decreased to 70.7% from 83.3% for the same period a year ago. The bank’s book value per share as of June 30, 2014 was $9.83, compared to $9.06 per share at June 30, 2013.
The bank has strong capital ratios, including a 11.12% Tier 1 Leverage Ratio and a 13.68% Total Risk Based Capital Ratio as of June 30, 2014.
Independence Bank is a full service community bank, founded by highly experienced bankers and business leaders from Orange County. Founded in 2004, Independence Bank has sustained a successful business model of customer and community focus as well as significant growth during that time. Independence Bank now has six regional offices serving Orange and Riverside Counties in Southern California.
Statements concerning future performance, developments or events concerning expectations for growth and market forecasts, and any other guidance on future periods, constitute forward looking statements that are subject to a number of risks and uncertainties. Actual results may differ materially from stated expectations. Specific factors include, but are not limited to, effects of interest rate changes, ability to control costs and expenses, impact of consolidation in the banking industry, financial policies of the US government, and general economic conditions.