NEWPORT BEACH, Calif.--(BUSINESS WIRE)--Independence Bank (OTCBB: IDPK) announced today unaudited net income of $777,000 or $0.16 per basic share for the quarter ended March 31, 2014, an increase of 58% as compared to $492,000 or $0.11 per basic share for the same period a year ago.
On January 31, 2014, the Bank successfully completed the merger with Premier Service Bank adding two Inland Empire branches, $58.1 million of loans, and $117.8 million of deposits. Related to the merger, Independence Bank incurred $1.8 million in acquisition expenses and booked a $1.4 million bargain purchased gain during the quarter.
“The Premier Service Bank integration, although in early stages, has gone well in all respects and we’re looking forward to a smooth conversion for customers this quarter,” said Chuck Thomas, Independence Bank President and Chief Executive Officer. “We intend to continue to deliver ongoing and sustainable growth, including in our new markets in Riverside County, with a carefully managed level of risk.”
Total loans were $310.2 million as of March 31, 2014, compared to $194.0 million at March 31, 2013, an increase of $116.2 million or 60%. In addition to the growth directly attributable to the merger, the bank also achieved solid internal loan growth this reporting period.
Total deposits were $337.0 million as of March 31, 2014, with non-interest bearing and NOW accounts totaling $91.0 million, compared to $200.7 million of total deposits and $34.0 million of non-interest bearing and NOW accounts at March 31, 2013.
The bank has strong capital ratios, including a 10.41% Tier 1 Leverage Ratio and 13.64% Total Risk Based Capital Ratio as of March 31, 2014. Independence Bank ended the quarter with a net interest margin of 4.42%, a return on average assets of 0.79% and a return on average equity of 7.43%. The bank’s book value per share was $9.51 at March 31, 2014, compared to $9.21 per share at March 31, 2013.
Independence Bank is a full service community bank, founded by highly experienced bankers and business leaders from Orange County. Founded in 2004, Independence Bank has sustained a successful business model of customer and community focus as well as significant growth during that time. Independence Bank now has six regional offices serving Orange and Riverside Counties in Southern California.
Statements concerning future performance, developments or events concerning expectations for growth and market forecasts, and any other guidance on future periods, constitute forward looking statements that are subject to a number of risks and uncertainties. Actual results may differ materially from stated expectations. Specific factors include, but are not limited to, effects of interest rate changes, ability to control costs and expenses, impact of consolidation in the banking industry, financial policies of the US government, and general economic conditions.
|2014 1st Quarter Report|
|March 31,||December 31,||March 31,|
|Cash and cash equivalents||$||17,387,976||$||4,901,823||$||4,016,073|
|Property and equipment, net||1,946,720||1,638,182||1,683,965|
|Liabilities and Shareholders' Equity|
|DDA and NOW||91,034,843||40,518,389||34,037,311|
|Savings and money market||177,994,275||117,267,875||103,311,462|
|Certificates of Deposit||67,973,544||72,114,194||63,324,544|
|Total Liabilities and Shareholders' Equity||$||418,986,052||$||311,481,577||$||280,313,471|
|Basic book value per share||$||9.51||$||9.25||$||9.21|
|Tier 1 leverage capital ratio||10.41||%||13.16||%||13.71||%|
|Tier 1 risk-based capital ratio||12.46||%||16.39||%||17.87||%|
|Total risk-based capital ratio||13.64||%||17.65||%||19.13||%|
|Asset Quality Ratios|
|Nonperforming loans as a % of total loans||1.31||%||0.06||%||3.59||%|
|Nonperforming assets as a % of total Assets||1.16||%||0.27||%||3.21||%|
|Classified assets as a % of total Assets||3.37||%||2.02||%||4.86||%|
|ALLL as % of gross loans net of charge-offs||1.32||%||1.82||%||2.07||%|
|Net charge-off/(recovery) for the quarter||$||(33,000||)||$||(29,745||)||$||(22,805||)|
|Net charge-off/(recovery) for the quarter as a % of total loans||-0.01||%||-0.01||%||-0.01||%|
|STATEMENT OF EARNINGS|
|March 31,||March 31,|
|Net interest income||3,839,297||2,915,932|
|Provision for loan losses||-||50,000|
OREO Operations, Net
|Earnings before income taxes||331,278||569,738|
|Common shares issued and outstanding||4,798,795||4,371,220|
|Basic earnings per share||$||0.16||$||0.11|
|Return on average assets (annualized)||0.79||%||0.68||%|
|Return on average equity (annualized)||7.43||%||4.89||%|
|Net interest margin||4.42||%||4.27||%|