Infinity Bank Announces First Quarter 2020 Financial Results

SANTA ANA, CA / ACCESSWIRE / May 5, 2020 / Infinity Bank (OTCQB:INFT) (the "Bank") announced financial results as of March 31, 2020.

Financial Highlights for the first quarter of 2020:

Total loans increased to $76.5 million at March 31, 2020, versus $21.9 million at March 31, 2019
Total deposits increased to $82.7 million at March 31, 2020, versus $56.6 million at March 31, 2019
Total assets equaled to $110.1 million at March 31, 2020, versus $83.8 million at March 31, 2019

Loans

The Bank's total loans grew by $2.7 million, or 3.6% on a linked quarter basis to $76.5 million at March 31, 2020 and by $54.6 million, or 249.3% compared to March 31, 2019. The Bank increased its loan to deposit ratio to 92.5% as of March 31, 2020. This represents an increase from 83.0% from the fourth quarter ending December 31, 2019, and 38.7% compared to the same time last year.

Deposits

Total deposits totaled $82.7 million as of March 31, 2020, versus the previous linked quarter of $89.0 million, a decrease of $6.3 million or 7.1%. When compared to the same time last year, the Bank increased its total deposits by $26.1 million or 46.1% from March 31, 2019 to March 31, 2020. The cost of total deposits for the first quarter ended March 31, 2020 was 57 basis points, a decrease of 2 basis points compared to fourth quarter ended December 31, 2019. Noninterest-bearing demand accounts decreased by $6.6 million, or 15.1% compared to the fourth quarter ended December 31, 2019. The decrease was due to normal movement in deposits held by our accountholders. On a year-over-year basis noninterest-bearing demand accounts increased $11.6 million, or 45.8% at March 31, 2020 versus March 31, 2019. Interest-bearing deposits increased by $0.3 million, or 0.6% compared to the fourth quarter ended, December 31, 2019. Interest bearing deposits increased by $14.5 million or 46.3% from March 31, 2019 to March 31, 2020 as the Bank continued to add key clients to its deposit portfolio.

Net-Interest Income

Net-interest income totaled $1.2 million an increase of $127 thousand, or 12.0% for the first quarter ended March 31, 2020 compared to the fourth quarter of 2019. Net-interest income grew by $635 thousand, or 115.2% when compared to the same period last year. The Bank's primary source of revenue was driven by interest income from loans and investment securities. The Bank's net interest margin rose by 17 basis points at the end of first quarter ended March 31, 2020 from previous linked quarter and an increase of 109 basis points compared to same period in 2019.

Non-Interest Income

At March 31, 2020, total non-interest income totaled $54 thousand, a decrease of $104 thousand, or 65.8% from previous linked quarter. Non-interest income increased $35 thousand, or 184.2% when compared to this same period last year. The decrease in non-interest income during the quarter ended March 31, 2020, was primarily due to fewer sales of investment securities during the quarter.

Non-Interest Expense

During the first quarter of 2020, the Bank's total non-interest expense increased by $108 thousand, or 8.4% versus the fourth quarter ended December 31, 2019. Non-interest expense increased $185 thousand, or 15.4% when compared to the comparable period ended March 31, 2019. The increase in non-interest expense was primarily a result of additional staff as the Bank continues to grow.

Net Income

The Bank recorded a net loss of $182 thousand ($0.06 per share) for the quarter ended March 31, 2020 versus a net loss of $407 thousand ($0.12 per share) and a net loss of $734 thousand ($0.22 per share) compared to the fourth quarter ended, December 31, 2019 and first quarter ended, March 31, 2019, respectively. The net loss for the first quarter of 2020 reflected the smallest quarterly net loss in the Bank's history.

Capital

At March 31, 2020, the Bank remained well-capitalized under the regulatory capital ratio guidelines with a tier 1 risk-based capital ratio of 27.39%, a total risk-based capital ratio of 28.41%, and a tier 1 leverage ratio of 22.17%.

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 loans 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 Victor Guerrero

President & CEO COO & CFO

Phone: (657) 223-1000 Phone: (657) 223-1000

Bala@goinfinitybank.com 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)

 
March 31,
2020
 
 
December 31,
2019
 
 
March 31,
2019
 

ASSETS:

Cash and due from banks

 
$ 
25,475
 
 
$ 
13,476
 
 
$ 
46,311
 

Securities available for sale

 
 
6,542
 
 
 
27,788
 
 
 
14,968
 

Total Loans

 
 
76,499
 
 
 
73,840
 
 
 
21,882
 

Allowance for loan and lease losses

 
 
(956
)
 
 
(923
)
 
 
(274
)

Net Loans

 
 
75,543
 
 
 
72,917
 
 
 
21,608
 

Premises and equipment, net

 
 
1,859
 
 
 
1,960
 
 
 
507
 

Other assets

 
 
726
 
 
 
491
 
 
 
361
 

TOTAL ASSETS

 
$ 
110,145
 
 
$ 
116,632
 
 
$ 
83,755
 

LIABILITIES

Deposits:

Non-interest bearing

 
$ 
36,879
 
 
$ 
43,451
 
 
$ 
25,286
 

Interest bearing

 
 
45,848
 
 
 
45,567
 
 
 
31,333
 

Total deposits

 
 
82,727
 
 
 
89,018
 
 
 
56,619
 

Other liabilities

 
 
1,780
 
 
 
1,835
 
 
 
252
 

TOTAL LIABILITIES

 
 
84,507
 
 
 
90,853
 
 
 
56,871
 

Stockholders' Equity:

Common stock

 
 
32,732
 
 
 
32,652
 
 
 
32,429
 

Accumulated deficit

 
 
(6,866
)
 
 
(4,934
)
 
 
(4,934
)

Net income (loss)

 
 
(182
)
 
 
(1,932
)
 
 
(734
)

Accumulated other comprehensive gain

 
 
(46
)
 
 
(7
)
 
 
123
 

TOTAL STOCKHOLDERS' EQUITY

 
 
25,638
 
 
 
25,779
 
 
 
26,884
 

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

 
$ 
110,145
 
 
$ 
116,632
 
 
$ 
83,755
 

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

 
Three Months Ended
 

 
March 31,
2020
 
 
December 31,
2019
 
 
March 31,
2019
 

Interest Income:

Loans

 
$ 
1,159
 
 
$ 
943
 
 
$ 
273
 

Investment securities

 
 
94
 
 
 
168
 
 
 
107
 

Other short-term investments

 
 
60
 
 
 
67
 
 
 
234
 

Total interest income

 
 
1,313
 
 
 
1,178
 
 
 
614
 

Interest expense:

Deposits

 
 
127
 
 
 
119
 
 
 
63
 

Borrowed funds

 
 
–
 
 
 
–
 
 
 
–
 

Total interest expense

 
 
127
 
 
 
119
 
 
 
63
 

Net interest income

 
 
1,186
 
 
 
1,059
 
 
 
551
 

Provision for loan and lease losses

 
 
33
 
 
 
342
 
 
 
100
 

Net interest income after provision for loan and lease losses

 
 
1,153
 
 
 
717
 
 
 
451
 

Non-interest income:

Service charges and other fees

 
 
44
 
 
 
19
 
 
 
7
 

Other income

 
 
3
 
 
 
33
 
 
 
12
 

Gain (loss) on securities

 
 
7
 
 
 
106
 
 
 
–
 

Total non-interest income

 
 
54
 
 
 
158
 
 
 
19
 

Non-interest expense:

Salaries and employee benefits

 
 
972
 
 
 
831
 
 
 
822
 

Occupancy

 
 
92
 
 
 
82
 
 
 
83
 

Furniture, fixture & equipment

 
 
41
 
 
 
42
 
 
 
42
 

Data processing

 
 
69
 
 
 
66
 
 
 
45
 

Professional & legal

 
 
82
 
 
 
119
 
 
 
55
 

Marketing

 
 
7
 
 
 
19
 
 
 
12
 

Other expense

 
 
126
 
 
 
122
 
 
 
145
 

Total non-interest expense

 
 
1,389
 
 
 
1,281
 
 
 
1,204
 

Income (loss) before taxes

 
 
(182
)
 
 
(406
)
 
 
(734
)

Income tax expense

 
 
–
 
 
 
1
 
 
 
–
 

Net Income (Loss)

 
$ 
(182
)
 
$ 
(407
)
 
$ 
(734
)

Earnings (loss) per share ("EPS"): Basic

 
$ 
(0.06
)
 
$ 
(0.12
)
 
$ 
(0.22
)

Common shares outstanding

 
 
3,306,429
 
 
 
3,306,429
 
 
 
3,300,000
 

INFINITY BANK
UNAUDITED FINANCIAL HIGHLIGHTS

 
Three Months Ended
 

 
March 31,
2020
 
 
December 31,
2019
 
 
March 31,
2019
 

Performance Ratios (Based upon Reported Net Income):

Net interest margin

 
 
4.23
%
 
 
4.06
%
 
 
3.14
%

Cost of funds

 
 
0.57
%
 
 
0.59
%
 
 
0.56
%

Loan to deposit ratio

 
 
92.47
%
 
 
82.95
%
 
 
38.65
%

Asset Quality Summary:

Allowance for loan loss/Total loans

 
 
1.25
%
 
 
1.25
%
 
 
1.25
%

Capital Ratios:

Tier 1 risk-based capital ratio

 
 
27.39
%
 
 
28.55
%
 
 
88.23
%

Total risk-based capital ratio

 
 
28.41
%
 
 
29.57
%
 
 
88.23
%

Tier 1 leverage ratio

 
 
22.17
%
 
 
24.13
%
 
 
36.58
%

SOURCE: Infinity Bank Santa Ana California

ReleaseID: 588631