IMP CAP BNCRP 
By Net interest income before provision for loan losses was
Net interest income before provision for loan losses was further impacted by an increase in interest expenses incurred on our interest bearing liabilities. Interest expense on our deposits increased by
The provision for loan losses was
With the housing and secondary mortgage markets continuing to deteriorate and showing no signs of stabilizing in the near future, we continue to aggressively monitor our real estate loan portfolio, including our construction and land loan portfolio. Our construction and land loan portfolio at
Non-interest income was
General and administrative expenses were
Provision for income taxes was
Loan originations were
Total assets increased
Non-performing assets were
The allowance for loan losses as a percentage of our total loans was 2.29% and 1.81% at
At
The Bank had Tier 1 leverage, Tier 1 risk-based and total risk-based capital ratios at
Accordingly, the current investment ratings for the underlying CMOs were utilized in calculating the capital ratios disclosed above. Because of the investment rating downgrades associated with our portfolio of CMOs, the Bank is required to maintain higher levels of regulatory risk-based capital for these securities due to the greater perceived risk of default.
Doyle concluded: "While we are clearly dissatisfied with our quarterly results, we firmly believe that the successful implementation of our strategic plan will return the Company to profitability. As financial markets ultimately stabilize, this plan will improve the financial wherewithal of the Company, as well as address many of the regulatory issues identified under the Cease and Desist Order that we are currently operating under. With respect to the Order, we remain committed to working with our regulators to achieve full compliance with the matters set forth in the Order."
"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: This release contains forward-looking statements that are subject to risks and uncertainties, including, but not limited to, changes in economic conditions, either nationally or in our market areas; fluctuations in loan demand, the number of unsold homes, other properties and real estate values; the quality or composition of our loan or investment portfolios; our ability to manage loan delinquency rates, which may be impacted by deterioration in the housing and commercial real estate markets that may lead to increased losses and non-performing assets in our loan portfolios, and may result in our allowance for loan losses not being adequate to cover actual losses and may require us to materially increase our reserves; fluctuations in interest rates, and changes in the relative differences between short- and long-term interest rates; results of examinations by the California Department of Financial Institutions (the "DFI"), the FDIC or other regulatory authorities, including the possibility that any such regulatory authority may, among other things, require us to increase our reserve for loan losses, write-down assets, change our regulatory capital position or affect our ability to borrow funds or maintain or increase deposits, which could adversely affect our liquidity and earnings; the possibility that we will be unable to comply with the conditions imposed upon us by the Order to Cease and Desist issued by the DFI and the FDIC, which could result in the imposition of additional restrictions on our operations; our ability to control operating costs and expenses; the use of estimates in determining fair value of certain of our assets, which estimates may prove to be incorrect and result in significant declines in valuation; difficulties in reducing risk associated with the loans on our balance sheet; staffing fluctuations in response to product demand or the implementation of corporate strategies that affect our work force and potential associated charges; computer systems on which we depend could fail or experience a security breach; our ability to retain key members of our senior management team; costs and effects of litigation, including settlements and judgments; increased competitive pressures among financial services companies; changes in consumer spending, borrowing, and savings habits; legislative or regulatory changes that adversely affect our business, including changes in regulatory policies and principles, including the interpretation of regulatory capital or other rules; the availability of resources to address changes in laws, rules, or regulations or to respond to regulatory actions; adverse changes in the securities markets; the inability of key third-party providers to perform their obligations to us; changes in accounting policies, principles or guidance, as may be adopted by the financial institution regulatory agencies or the Financial Accounting Standards Board, or their application to our business or audit adjustments; the economic impact of any terrorist actions; other economic, competitive, governmental, regulatory, and technological factors affecting our operations, pricing, products, and services. We caution readers not to place undue reliance on any forward-looking statements. We do not undertake and specifically disclaim any obligation to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements. These risks could cause our actual results for 2009 and beyond to differ materially from those expressed in any forward-looking statements by, or on behalf of, us, and could negatively affect the Company's operating and stock price performance.
Imperial Capital Bancorp, Inc. is a publicly traded diversified bank holding company specializing in commercial real estate lending on a national basis and is headquartered in
For additional information, contact
IMPERIAL CAPITAL BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
March 31,
2009 December 31,
(unaudited) 2008
---------- ----------
(in thousands, except
share amounts)
Assets
Cash and cash equivalents $325,438 $403,119
Investment securities available-
for-sale,
at fair value 404,041 146,799
Investment securities held-to-
maturity, at
amortized cost 905,565 942,686
Stock in Federal Home Loan Bank 63,498 63,498
Loans, net (net of allowance for
loan losses of $62,938 and
$50,574 as of March 31, 2009 and
December 31, 2008, respectively) 2,680,832 2,748,956
Interest receivable 20,772 21,305
Other real estate and other assets
owned, net 49,947 38,031
Other assets 70,010 75,444
---------- ----------
Total assets $4,520,103 $4,439,838
========== ==========
Liabilities and Shareholders' Equity
Liabilities:
Deposit accounts $3,109,142 $2,931,040
Federal Home Loan Bank advances
and other borrowings 1,124,794 1,205,633
Accounts payable and other
liabilities 28,904 26,996
Junior subordinated debentures 86,600 86,600
---------- ----------
Total liabilities 4,349,440 4,250,269
---------- ----------
Commitments and contingencies
Shareholders' equity:
Preferred stock, 5,000,000 shares
authorized, none issued - -
Contributed capital - common
stock, $.01 par value; 20,000,000
shares authorized, 9,146,256 and
9,146,256 issued as of March 31,
2009 and December 31, 2008,
respectively 85,129 85,407
Retained earnings 204,749 222,483
Accumulated other comprehensive
loss, net (4,031) (2,682)
---------- ----------
285,847 305,208
Less treasury stock, at cost
- 4,074,834 and 4,126,116 shares
as of March 31, 2009 and
December 31, 2008, respectively (115,184) (115,639)
---------- ----------
Total shareholders' equity 170,663 189,569
---------- ----------
Total liabilities and
shareholders' equity $4,520,103 $4,439,838
========== ==========
IMPERIAL CAPITAL BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CONDITION
(UNAUDITED)
For the Three Months Ended
March 31,
-----------------
2009 2008
-------- ------
(in thousands, except per
share amounts)
Interest income:
Loans receivable, including fees $41,463 $54,835
Cash, cash equivalents and investment securities 20,329 4,249
-------- ------
Total interest income 61,792 59,084
-------- ------
Interest expense:
Deposit accounts 28,439 25,083
Federal Home Loan Bank advances and other
borrowings 12,787 11,918
Junior subordinated debentures 1,637 2,005
-------- ------
Total interest expense 42,863 39,006
-------- ------
Net interest income before provision for
loan losses 18,929 20,078
Provision for loan losses 19,175 4,250
-------- ------
Net interest income (expense) after
provision for loan losses (246) 15,828
-------- ------
Non-interest income:
Late and collection fees 210 219
Other 403 49
-------- ------
Total non-interest income 613 268
-------- ------
Non-interest expense:
Compensation and benefits 6,049 6,864
Occupancy and equipment 1,743 1,942
Other 6,562 4,684
-------- ------
Total general and administrative 14,354 13,490
-------- ------
Real estate and other assets owned expense, net 997 428
Provision for losses on real estate and other
assets owned 2,507 627
Loss on sale of real estate and other assets
owned, net 243 400
-------- ------
Total real estate and other assets owned
expense, net 3,747 1,455
-------- ------
Total non-interest expense 18,101 14,945
-------- ------
(Loss) income before provision for income taxes (17,734) 1,151
Provision for income taxes - 454
-------- ------
NET (LOSS) INCOME $(17,734) $697
======== ======
BASIC (LOSSES) EARNINGS PER SHARE $(3.27) $0.13
======== ======
DILUTED (LOSSES) EARNINGS PER SHARE $(3.27) $0.13
======== ======
SOURCE Imperial Capital Bancorp, Inc.
