Infinity Bank Announces Results for the First Quarter 2019

Infinity Bank Santa Ana California

Companies Mentioned:

Primary Exchange: OTCQB
Under the Symbol: INFT

Infinity Bank Announces Results for the First Quarter 2019

Friday, May 3, 2019 11:10 PM

SANTA ANA, CA / ACCESSWIRE / May 3, 2019 / Infinity Bank (OTCQB: 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.

Contact Information:

Bala Balkrishna

President & CEO

Phone: (657) 223-1000

[email protected]

Victor Guerrero

Executive Vice President, COO & CFO

Phone: (657) 223-1000

[email protected]


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):
Net interest margin
3.14 % 2.35 %
Cost of funds
0.56 % 0.29 %
Loan to deposit ratio
38.65 % 32.45 %

Asset Quality Summary:
Allowance for loan loss/Total loans
1.25 % 1.25 %

Capital Ratios:
Tier 1 common equity ratio
88.23 % 124.74 %
Tier 1 risk-based capital ratio
88.23 % 124.74 %
Total risk-based capital ratio
89.14 % 125.53 %
Tier 1 leverage ratio
36.58 % 48.34 %

SOURCE: Infinity Bank

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