Intervest National Bank

Intervest National Bank is owned by the financial holding company Intervest Bancshares Corporation.  Intervest Bancshares primarily engages in banking and real estate lending businesses.  Along with Intervest National Bank, Intervest Bancshares Corporation also owns Intervest Mortgage Corporation, a mortgage investment Company.  The company was founded in 1993.  The bank headquarters are located at One Rockefeller Plaza, New York, New York.  In addition, the bank operates six bank branches serving Clearwater and Pinellas County in Florida. 

The bank provides a variety of commercial and consumer banking services to small and middle-market businesses and individuals.  The bank accepts checking and other demand deposit accounts, certificates of deposit accounts, individual retirement accounts, negotiable order of withdrawal accounts, savings accounts, and money market accounts.  The bank’s loan portfolio includes first and second mortgage loans secured by commercial and multifamily real estate properties; single-family residential mortgage loans, commercial business loans, and consumer loans; and land development and other land loans.  The bank operates automated teller machine services, state and national networks, wire transfers, automated clearing house transfers, direct deposit of payroll and social security checks, automated drafts for various accounts, and safe deposit boxes. The bank also provides Internet banking through its website, www.intervestnatbank.com, which attracts deposit customers from within, as well as outside its primary market areas. The deposits, together with funds derived from other sources, are used to fund the origination of mortgage loans secured by commercial and multifamily real estate and to purchase investment securities.

On October 14, 2008 Intervest Bancshares Corp. announced that its third quarter net income fell on higher non-interest expenses, enhanced provision for loan losses and lower non-interest income.  The company posted a third quarter net income of $2.6 million compared to $4.8 million a year ago.  For the first nine months, net earnings fell to $6.8 million compared to $15.6 million a year ago.  Total revenue was $35,826,000.  Net income was $2,626,000.  Total assets were $2,180,746,000.

Intervest noted that $2.1 million increase in non-interest expenses, $1.9 million increase in the provision for loan losses and a $1.3 million decrease in non-interest income impacted the quarterly results.  These items were partially offset by a $1.5 million increase in net interest and dividend income and a $1.6 million decrease in the provision for income tax expense.

The provision for loan losses climbed to $3.4 million from $1.5 million in the previous year, due to credit downgrades on non-accrual loans and lower estimated real estate values on certain collateral properties.

Total loans, net of unearned fees, increased to $1.69 billion at September 30, 2008, from $1.61 billion at December 31, 2007.  The increase was due to $327 million of new originations secured by commercial and multi-family real estate exceeding the aggregate of: $221 million of principal repayments; $25 million of loans transferred to foreclosed real estate; and $4.3 million of loan chargoffs.  Nearly all of the new loans have fixed-rates with a weighted-average yield and term of 6.34% and 5.3 years, respectively. New loans totaled $101 million for Q3-08 and $327 million for 9mths-08, compared to $157 million for Q3-07 and $467 million for 9mths-07. Principal repayments totaled $111 million for Q3-08 and $221 million for 9mths-08, compared to $147 million for Q3-07 and $329 million for 9mths-07.

Total nonperforming assets at September 30, 2008 amounted to $107.9 million, or 4.95% of total assets, compared to $126.4 million, or 5.72%, at June 30, 2008 and $90.8 million, or 4.49%, at December 31, 2007. At September 30, 2008, nonperforming assets were comprised of $82.8 million of nonaccrual loans, or 19 loans, and $25.1 million of real estate acquired through foreclosure, or 4 properties.

Net interest and dividend income were $11.1 million in third quarter, up from $9.6 million last year.  The net interest income reflects a receipt of approx. $1.4 million of past due interest from the payoff of $22.2 million of non-accrual loans.

Non-interest income was $2.3 million; while in the prior year, the company has recorded $3.6 million.

Interest’s efficiency ratio, a measure of its ability to control expenses as a percentage of its revenues, increased to 39% in the third quarter from 24% last year.

Total assets at September 30, 2008 increased to $2.2 billion, from $2.0 billion at December 31, 2007, primarily reflecting growth in the loan portfolio and a higher level of security investments.

According to the October 14, 2008 press release by Intervest, Intervest National Bank maintains capital ratios in excess of the regulatory requirements to be designated as a well-capitalized institution.

This entry was posted on Monday, November 17th, 2008 at 9:10 am and is filed under Bank Profiles. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.