Fri, 22 Nov 2019

Infinity Bank Releases Financial Results

ACCESSWIRE
05 Nov 2019, 17:31 GMT+10

SANTA ANA, CA / ACCESSWIRE / November 5, 2019 / Infinity Bank (OTCQB:INFT) (the 'Bank') announced financial results for the quarter ended, September 30, 2019.

Financial Highlights for the Third Quarter:

  • Total loans increased by $13.9 million
  • Total deposits increased by $4.4 million
  • Net Interest Margin increased to 3.41%
  • Total assets increased to $110 million

Loans

At September 30, 2019, the Bank's loan portfolio totaled $46.5 million, an increase of $13.9 million, or 42.8% from the end of the second quarter of 2019 and by $32.5 million, or 233.8% compared to December 31, 2018. The Bank increased its loan to deposit ratio from 41.97% at June 30, 2019 to 56.73% at September 30, 2019 reflecting continued growth in loans outstanding.

Deposits

The Bank grew its core deposit relationships while decreasing its cost of funds by 12 basis points to 54 basis points as of September 30, 2019 from the second quarter ended June 30, 2019. Noninterest-bearing demand accounts decreased by $4.5 million, or 11.5% compared to the second quarter ended June 30, 2019. Interest-bearing deposits increased by $8.9 million, or 23.6% compared to the previous quarter of 2019. This shift in noninterest bearing and interest-bearing demand deposits was a result of normal movement by various clients amongst their deposit accounts with the Bank. As of September 30, 2019, total deposits increased by $4.4 million, or 5.6% compared to June 30, 2019 and by $39.0 million or 91.0% compared to December 31, 2018.

Net-Interest Income

Net-interest income for the third quarter ended September 30, 2019 was $899 thousand, an increase of $152 thousand or 20.3% compared to the second quarter of 2019. Net-interest income for the nine months ended September 30, 2019 was $2.2 million compared to $531 thousand, an increase of $1.7 million or 313.6%, for the comparable period ending September 30, 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 123 basis points for the nine months ended September 30, 2019 to 3.41% compared to the comparable period ended September 30, 2018.

Non-Interest Income

Total non-interest income for the third quarter of 2019 totaled $132 thousand, an increase of $105 thousand or 388.9% compared to the second quarter of 2019. The increase in non-interest income was primarily driven by gains on sale of investment securities in the amount of $97 thousand. Non-interest income for the nine months ended September 30, 2019 totaled $178 thousand, an increase of $163 thousand or 1,086.7%, as compared to the comparable period ended September 30, 2018.

Non-Interest Expense

Total non-interest expense increased by $20 thousand, or 1.8% for the third quarter ended September 30, 2019 compared to the second quarter ended June 30, 2019. Non-interest expense for the nine months ended September 30, 2019 totaled $3.5 million versus $2.7 million, an increase of 27.6%, compared to the comparable period ended September 30, 2018. The increase in non-interest expense for the nine months ended was primarily a result of the additional staff that was added as the Bank continues to grow.

Net Income

The Bank's net loss decreased for the third quarter of 2019 to $298 thousand ($0.09 per share) versus a net loss of $494 thousand ($0.15 per share) for the second quarter of 2019, an improvement of 39.7%. The Bank's net loss for the nine months ended September 30, 2019 was $1.5 million ($0.46 per share) versus $2.3 million ($0.68 per share) for the comparable period ended September 30, 2018, an improvement of 32.3%.

Capital

As of September 30, 2019, the Bank remained well-capitalized with a tier 1 risk-based capital ratio of 40.30%, a total risk-based capital ratio of 41.20%, and a tier 1 leverage ratio of 26.26%.

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.

Contact Information:

Bala Balkrishna
President & CEO
Phone: (657) 223-1000
Bala@goinfinitybank.com

Victor Guerrero
COO & CFO
Phone: (657) 223-1000
Victor@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)

September 30,
2019

June 30,
2019

December 31,
2018

ASSETS:

Cash and due from banks

$ 26,847

$ 52,406

$ 40,285

Securities available for sale

34,833

18,990

15,715

Total Loans

46,460

32,536

13,919

Allowance for loan and lease losses

(581)

(407)

(174)

Net Loans

45,879

32,129

13,745

Premises and equipment, net

2,061

2,162

527

Other assets

495

429

270

TOTAL ASSETS

$ 110,115

$ 106,116

$ 70,542

LIABILITIES

Deposits:

Non-interest bearing

$ 35,075

$ 39,629

$ 17,605

Interest bearing

46,825

37,898

25,283

Total deposits

81,900

77,527

42,888

Other liabilities

1,906

1,936

280

TOTAL LIABILITIES

83,806

79,463

43,168

Stockholders' Equity:

Common stock

32,578

32,503

32,362

Accumulated deficit

(4,934)

(4,934)

(3,105)

Net income (loss)

(1,526)

(1,228)

(1,829)

Accumulated other comprehensive gain

191

312

(54)

TOTAL STOCKHOLDERS' EQUITY

26,309

26,653

27,374

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$ 110,115

$ 106,116

$ 70,542

INFINITY BANK
UNAUDITED STATEMENTS OF OPERATIONS
(Dollars in thousands except share and per share amounts)

Three Months Ended

Nine Months Ended

September 30,
2019

June 30,
2019

September 30,
2018

September 30,
2019

September 30,
2018

Interest Income:

Loans

$ 651

$ 453

$ 64

$ 1,377

$ 79

Investment securities

159

127

100

393

179

Other short-term investments

188

275

112

696

287

Total interest income

998

855

276

2,466

545

Interest expense:

Deposits

99

108

7

270

14

Borrowed funds

-

-

-

-

-

Total interest expense

99

108

7

270

14

Net interest income

899

747

269

2,196

531

Provision for loan and lease losses

174

133

7

407

60

Net interest income after provision for loan and lease losses

725

614

262

1,789

471

Non-interest income:

Service charges and other fees

16

13

6

36

6

Other income

19

14

3

45

9

Gain (loss) on securities

97

-

-

97

-

Total non-interest income

132

27

9

178

15

Non-interest expense:

Salaries and employee benefits

769

766

831

2,356

1,902

Occupancy

82

78

97

242

232

Furniture, fixture & equipment

42

43

46

126

119

Data processing

60

60

46

166

56

Professional & legal

65

72

74

192

168

Marketing

12

11

16

35

47

Other expense

125

105

83

376

213

Total non-interest expense

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