Infinity Bank Announces Results for the First Quarter 2019

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.


  • 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


    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.


    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%.


    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%.


    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

    Contact Information:

    Bala Balkrishna

    President & CEO

    Phone: (657) 223-1000

    Victor Guerrero

    Executive Vice President, COO & CFO

    Phone: (657) 223-1000

    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.

    (Dollars in thousands)

    March 31,
    December 31,
    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
    $ 83,755 $ 70,542
    Non-interest bearing
    $ 25,286 $ 17,605
    Interest bearing
    31,333 25,283
    Total deposits
    56,619 42,888
    Other liabilities
    252 280
    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 )
    26,884 27,374
    $ 83,755 $ 70,542

    (Dollars in thousands except share and per share amounts)

    Quarter Ended
    Quarter Ended
    March 31,
    December 31,
    Interest Income:
    $ 273 $ 97
    Investment securities
    107 104
    Other short-term investments
    234 189
    Total interest income
    614 390
    Interest expense:
    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
    83 87
    Furniture, fixture & equipment
    42 40
    Data processing
    45 37
    Professional & legal
    55 62
    12 21
    Other expense
    145 101
    Total non-interest expense
    1,204 1,133
    Income (loss) before taxes
    (734 ) (851 )
    Income tax expense
    Net Income (Loss)
    $ (734 ) $ (852 )
    Earnings (loss) per share (“EPS”):
    $ (0.22 ) $ (0.26 )
    Common shares outstanding
    3,300,000 3,300,000


    Quarter Ended
    Quarter Ended
    March 31,
    December 31,
    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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