Infinity Bancorp Announces First Quarter 2024 Financial Results
Infinity Bancorp announced their financial results for the first quarter of 2024, highlighting a dividend of $0.07 per share paid, total liquidity of $117 million, total loans increasing by $7.5 million, total deposits increasing by $12.7 million, and earnings per share increasing to $0.30 per share. The Company also declared a $0.07 cash dividend and made additional provisions to the Allowance for Credit Losses during the quarter. Yields on total loans increased to 9.39%, deposits totaled $262.3 million, non-interest income decreased, non-interest expense increased, income tax expense increased, and net income increased to $820 thousand. The Company remains well-capitalized with a tier 1 leverage ratio of 12.28%, tier 1 risk-based capital ratio of 15.67%, and a total risk-based capital ratio of 18.57%.
Strong financial performance with a dividend of $0.07 per share paid in the first quarter of 2024.
Total liquidity remains high at $117 million, equating to 36% of the Company's total assets.
Total loans increased by $7.5 million and total deposits increased by $12.7 million during the quarter.
Earnings per share increased to $0.30 per share compared to the previous quarter.
Company declared a $0.07 cash dividend to shareholders of record, payable on May 30, 2024.
Net income increased to $820 thousand for the first quarter of 2024.
The Company remains well-capitalized with strong regulatory requirement ratios
Increase in non-interest expense by $196 thousand, or 9.1% from the previous quarter.
Income tax expense increased by 192.9% from the fourth quarter of 2023.
Net interest margin decreased by 20 basis points, impacting net interest income.
Decrease in non-interest income by 34.1% from the fourth quarter of 2023.
Efficiency ratio improved to 42.2%, but costs are expected to rise due to inflation.
SANTA ANA, CA / ACCESSWIRE / May 6, 2024 / Infinity Bancorp (OTCQB:INFT) (the "Company" or "Bancorp"), the holding company for Infinity Bank (the "Bank"), today announced financial results for the quarter ended, March 31, 2024.
Financial highlights for the first quarter of 2024 and subsequent events:
- A dividend of
$0.07 per share was paid during the first quarter of 2024 - Total liquidity remains very high at
$117 million , which equates to36% of the Company's total assets - Total loans increased
$7.5 million from December 31, 2023 and increased$47.0 million year-over-year from 2023 - Total deposits increased
$12.7 million from December 31, 2023 - Earnings per share increased to
$0.30 per share compared to$0.10 as of the previous quarter - On May 2, 2024, the Company declared a
$0.07 cash dividend to shareholders of record as of May 16, 2024, payable on May 30, 2024
Loans and Allowance for Credit Losses
Total loans were
The Company's Allowance for Credit Losses (ACL) increased 12 basis points to
Yields on total loans increased to
Deposits
Total deposits equaled to
As market rates continue to remain elevated compared to more recent norms, the Company has also raised the rates paid to their customers on their interest-bearing deposit accounts. This resulted in an increase in the Company's cost of funds to
FHLB, Other Borrowings and Subsequent Event
To take advantage of interest rate shifts in the marketplace, during the fourth quarter of 2023, the Company borrowed
To facilitate a tender offer to repurchase 674,559 shares of the Company's outstanding common stock at a price of
Net-interest Income
Net-interest income for the first quarter of 2024 was
The Company's net interest margin was down 20 basis points to
Non-interest Income
For the quarter ended March 31, 2024, the Company's non-interest income totaled
Non-interest Expense
For the first quarter of 2024, non-interest expense totaled
Income Tax Expense
The Company's income tax expense increased
Net Income
For the first quarter of 2024 the Company's net income increased
The return on average assets increased 67 basis points to
The return on average equity for the first quarter of 2024 was
The decreases in net income, return on asset and return on equity when compared to the first quarter of 2023 are primarily due to the decrease in the net interest margin of 44 basis points as well as increases in non-interest expenses.
Capital Management and Subsequent Event
The Company continues to be well-capitalized and exceeds minimum regulatory requirement ratios with a tier 1 leverage ratio of
On January 25, 2024, the Company declared a
The book value of the Company's common stock was
On April 22, 2024, the Company completed a capital offering which began on December 18, 2023. The Company sold 380,000 shares of common stock at a price of
ABOUT INFINITY BANCORP AND INFINITY BANK
Infinity Bank is the sole subsidiary of Infinity Bancorp. Infinity Bancorp, formed on October 21, 2022, is the bank holding company for Infinity Bank. The Bancorp does not have any operations other than through its sole subsidiary, Infinity Bank. The 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.infinity.bank
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 Bancorp (which includes 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 Bancorp'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 Bancorp's results include, without limitation, the following: the timing and occurrence or non-occurrence of events may be subject to circumstances beyond the Bancorp'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 Bancorp; unanticipated or significant increases in loan losses; changes in accounting principles, policies or guidelines may cause the Bancorp's financial condition to be perceived differently; changes in corporate and/or individual income tax laws may adversely affect the Bancorp's financial condition or results of operations; general economic conditions, either nationally or locally in some or all areas in which the Bancorp conducts business, or conditions in the securities markets or the banking industry may be less favorable than the Bancorp currently anticipates; legislation or regulatory changes may adversely affect the Bancorp's business; technological changes may be more difficult or expensive than the Bancorp 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 Bancorp 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 Bancorp anticipates.
Santa Ana, CA 92707
| Bala Balkrishna | Victor Guerrero | Allison Duncan |
| CEO | President, COO | CFO |
| Phone: (657) 223-1000 | Phone: (562) 631-3042 | Phone: (657) 304-2378 |
| Bala@infinity.bank | Victor@infinity.bank | Allisond@infinity.bank |
INFINITY BANCORP
UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in thousands)
| March 31, 2024 | December 31, 2023 | March 31, 2023 | ||||||||||
ASSETS: | ||||||||||||
Cash and due from banks | $ | 76,677 | $ | 64,158 | $ | 98,632 | ||||||
Securities available for sale | 40,383 | 42,514 | 49,787 | |||||||||
Total Loans | 201,790 | 194,284 | 154,807 | |||||||||
Allowance for loan and lease losses | (3,473 | ) | (3,104 | ) | (2,597 | ) | ||||||
Net Loans | 198,317 | 191,180 | 152,210 | |||||||||
Premises and equipment, net | 1,499 | 1,570 | 762 | |||||||||
Other assets | 5,340 | 5,542 | 5,195 | |||||||||
TOTAL ASSETS | $ | 322,216 | $ | 304,964 | $ | 306,586 | ||||||
LIABILITIES | ||||||||||||
Deposits: | ||||||||||||
Non-interest bearing | $ | 132,781 | $ | 123,616 | $ | 129,817 | ||||||
Interest bearing | 129,502 | 126,042 | 140,642 | |||||||||
Time certificates of deposit | 50 | - | - | |||||||||
Total deposits | 262,333 | 249,658 | 270,459 | |||||||||
Other liabilities | 6,329 | 2,388 | 1,885 | |||||||||
FHLB and other borrowings | 21,071 | 21,071 | - | |||||||||
Subordinated debt | 3,951 | 3,946 | 3,932 | |||||||||
TOTAL LIABILITIES | 293,684 | 277,063 | 276,276 | |||||||||
Stockholders' Equity: | ||||||||||||
Common stock | 28,373 | 28,344 | 33,577 | |||||||||
Retained earnings (Accumulated deficit) | 2,798 | (882 | ) | (882 | ) | |||||||
Net income | 820 | 3,871 | 1,368 | |||||||||
Accumulated other comprehensive gain (loss) | (3,459 | ) | (3,432 | ) | (3,753 | ) | ||||||
TOTAL STOCKHOLDERS' EQUITY | 28,532 | 27,901 | 30,310 | |||||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 322,216 | $ | 304,964 | $ | 306,586 | ||||||
INFINITY BANCORP
UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in thousands)
| For the Three Months Ended | ||||||||||||
| March 31, 2024 | December 31, 2023 | March 31, 2023 | ||||||||||
Interest Income: | ||||||||||||
Loans | $ | 4,534 | $ | 4,171 | $ | 3,704 | ||||||
Investment securities | 155 | 158 | 174 | |||||||||
Other short-term investments | 800 | 568 | 910 | |||||||||
Total interest income | 5,489 | 4,897 | 4,788 | |||||||||
Interest expense: | ||||||||||||
Deposits | 1,250 | 1,034 | 646 | |||||||||
Borrowed funds | 371 | 144 | 47 | |||||||||
Total interest expense | 1,621 | 1,178 | 693 | |||||||||
Net interest income | 3,868 | 3,719 | 4,095 | |||||||||
Provision for loan and lease losses | 370 | 1,255 | 135 | |||||||||
Net interest income after provision for loan and lease losses | 3,498 | 2,464 | 3,960 | |||||||||
Non-interest income: | ||||||||||||
Service charges | 46 | 49 | 48 | |||||||||
Other income | 37 | 77 | 31 | |||||||||
Total non-interest income | 83 | 126 | 79 | |||||||||
Non-interest expense: | ||||||||||||
Salaries and employee benefits | 1,771 | 1,559 | 1,470 | |||||||||
Occupancy | 60 | 6 | 89 | |||||||||
Furniture, fixture & equipment | 38 | 39 | 33 | |||||||||
Data processing | 119 | 132 | 108 | |||||||||
Professional & legal | 105 | 194 | 129 | |||||||||
Marketing | 60 | 3 | 13 | |||||||||
Other expense | 198 | 222 | 254 | |||||||||
Total non-interest expense | 2,351 | 2,155 | 2,096 | |||||||||
Income before taxes | 1,230 | 435 | 1,943 | |||||||||
Income tax expense | 410 | 140 | 575 | |||||||||
Net Income | $ | 820 | $ | 295 | $ | 1,368 | ||||||
Earnings per share ("EPS"): Basic | $ | 0.30 | $ | 0.10 | $ | 0.41 | ||||||
Common shares outstanding | 2,734,586 | 2,734,586 | 3,325,716 | |||||||||
INFINITY BANCORP
UNAUDITED CONSOLIDATED FINANCIAL HIGHLIGHTS
| At and For the Three Months Ended | ||||||||||||
| March 31, 2024 | December 31, 2023 | March 31, 2023 | ||||||||||
Performance Ratios: | ||||||||||||
Net interest margin | 5.28 | % | 5.48 | % | 5.72 | % | ||||||
Cost of funds | 2.40 | % | 1.90 | % | 1.06 | % | ||||||
Loan to deposit ratio | 76.92 | % | 77.82 | % | 57.24 | % | ||||||
Yield on total loans | 9.39 | % | 8.93 | % | 9.38 | % | ||||||
Return on average assets | 1.09 | % | 0.42 | % | 1.87 | % | ||||||
Return on average equity | 11.65 | % | 4.01 | % | 19.03 | % | ||||||
Efficiency ratio | 42.19 | % | 42.90 | % | 43.07 | % | ||||||
Book value of common stock | $ | 10.43 | $ | 10.20 | $ | 9.11 | ||||||
Asset Quality Summary: | ||||||||||||
Allowance for loan loss/Total loans | 1.72 | % | 1.60 | % | 1.68 | % | ||||||
Capital Ratios: | ||||||||||||
Tier 1 risk-based capital ratio | 15.67 | % | 15.47 | % | 17.00 | % | ||||||
Total risk-based capital ratio | 18.57 | % | 18.35 | % | 20.21 | % | ||||||
Tier 1 leverage ratio | 12.28 | % | 13.26 | % | 11.27 | % | ||||||
SOURCE: Infinity Bank Santa Ana California
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FAQ
What was the dividend per share paid during the first quarter of 2024 by Infinity Bancorp?
What was the total liquidity of Infinity Bancorp at the end of March 31, 2024?
How much did total loans increase by from December 31, 2023, to March 31, 2024?
What was the net income for Infinity Bancorp in the first quarter of 2024?
What was the Company's non-interest expense for the first quarter of 2024?
