SOURCE: First American International Corp.

May 22, 2013 21:52 ET

First American International Corp. Announces First Quarter 2013 Results

NEW YORK, NY--(Marketwired - May 22, 2013) - First American International Corp., the holding company for First American International Bank, with nine branches in Manhattan, Queens and Brooklyn in New York City, provided the following selected financial data highlights regarding its financial condition and results of operations for the quarter ended March 31, 2013.

Balance Sheet Highlights

Total assets of the company were $541.3 million at March 31, 2013, down $4.4 million, or 0.8%, from March 31, 2012. Loans receivable, net were $350.6 million at March 31, 2013 or 64.8% of total assets, a decline of $31.9 million from $382.5 million at March 31, 2012. Loans receivable have decreased during 2012 and 2013 as the company chose to temporarily cease originating commercial mortgage loans. Origination of 1-4 family residential mortgage loans continues. Construction and development loans, which comprise about 7.1% of total loans, have declined from $61.2 million at March 31, 2012 to $25.8 million at March 31, 2013 as existing loans have gradually matured and/or paid down. Other interest earning assets increased by $41.7 million, or 37.8%, from quarter ended March 31, 2012 as the proceeds from borrower payments and loan sales on commercial mortgage loans and Construction and Development loans provided funds that were invested in non-loan earning assets.

At March 31, 2013, there were approximately $25.3 million of nonperforming assets, compared to $34.1 million at March 31, 2012. Delinquent loans from 30-89 days past due were approximately $4.3 million at March 31, 2013, compared to approximately $6.8 million at the March 31, 2012. The allowance for possible loan losses ended the quarter at $10.3 million or approximately 2.87% of total loans.

Deposits were $438.9 million, off $11.1 million, or 2.5%, from March 31, 2012. Certificates of Deposit, which were $202.2 million at March 31, 2013, decreased $27.7 million, or 12.0%, from March 31, 2012. Savings and money market account balances increased $5.0 million or 3.5%. Demand deposits account balances increased $12.8 million, or 19.2%, from March 31, 2012.

Stockholders equity for the three months ended March 31, 2013 stood at $63.9 million or 11.8% of total assets. This compares to $54.2 million at March 31, 2012.

First Quarter 2013 Results

FAIC had net income of $1,122,000 for the quarter-ended March 31, 2013 and $940,000 net of preferred dividends and discount accretion, compared to net income of $1,265,000 for the quarter-ended March 31, 2012 and $1,088,000 after deduction of preferred dividends and discount accretion. Net interest income before provision was $5,894,000, or 1.2% of average earning assets. Net interest income decreased $751,000, or 11.3%, from the first quarter of 2012 to the first quarter of 2013. The first quarter 2013 interest rate spread of 4.58% was down 49 basis points from 5.07% in the first quarter of 2012; the net interest margin of 4.79% was down 51 basis points from 5.30% in the prior year. The ratio of average interest earning assets to average interest bearing liabilities was 131% for the first quarter of 2013 compared to 125% for the first quarter of 2012. The lower loan volume in 2013 contributed to the decline in net interest spread and margin.

 The allowance for loan losses at March 31, 2013 was $10,349,000, or 2.87% of total loans, versus 3.96% at March 31, 2012. The lack of a provision for loan losses during the 2013 quarter and the lower level of the allowance reflected a reduction in loan losses and the improvement in the level of nonaccrual and delinquent loans during 2012 and 2013. Bank fees and other non-interest revenue contributed $1,679,000 for the quarter-ended March 2013 compared to $1,603,000 for the quarter-ended March 2012. Operating expenses were $5,530,000 for 2013 compared to $5,943,000 for 2012. Operating expenses were 73.02% of total revenues in the 2013 quarter, compared to 72.06% in the same period in 2012.

See accompanying unaudited financial data tables for additional information.

The information contained herein is intended to provide the reader with historical information about the financial results of First American International Corp. It is not intended to provide guidance as to forward looking statements or projections of future results. A variety of factors could cause our actual results and experiences to differ materially from historical results and anticipated results based on historical results.

   
First American International Corp.  
Financial Highlights (unaudited)  
Dollars in thousands  
                                Balance Sheet Variances  
Balance Sheet Items                               3/31/13     3/31/13  
    3/31/2013   12/31/2012   9/30/2012     6/30/2012   3/31/2012         Vs. 3/31/12     vs. 3/31/12  
Total assets   $ 541,251   $ 526,952   $ 527,023     $ 529,916   $ 536,825           $ 4,426       0.8 %
Loans receivable, net     350,615     360,274     361,601       378,161     382,468             (31,853 )     -8.3 %
Allowance for loan losses     10,349     10,618     15,081       15,343     15,769             (5,420 )     -34.4 %
Other interest earning assets     152,076     121,874     124,145       104,560     110,330             41,746       37.8 %
                                                         
Deposits     438,865     441,661     443,796       444,509     449,999             (11,134 )     -2.5 %
Borrowings     32,217     17,217     17,217       22,567     22,567             9,650       42.8 %
Stockholders' equity     63,921     62,583     58,900       56,449     54,233             9,688       17.9 %
                                                         
Summary Income Statement     For the quarter ended     For the quarter ended     For the quarter ended       For the quarter ended  
      3/31/13     3/31/12     12/31/12       12/31/11     9/30/12     9/30/11       6/30/12       6/30/11  
Interest income   $ 6,747   $ 7,919   $ 7,121     $ 7,627   $ 7,736   $ 8,057     $ 7,327     $ 8,407  
Interest expense     853     1,274     929       1,417     1,057     1,677       1,112       1,783  
  Net interest income     5,894     6,645     6,192       6,210     6,679     6,380       6,215       6,624  
Provision for loan losses     -     -     (4,509 )     -     -     -       -       1,000  
  Net interest income after provision for loan losses     5,894     6,645     10,701       6,210     6,679     6,380       6,215       5,624  
Non-interest income     1,609     1,603     1,946       256     2,726     (137 )     2,613       187  
Non-interest expenses     5,530     5,943     6,336       5,438     5,369     5,281       5,261       5,579  
BEA grant     70     -     415       448     -     -       -       -  
  Income before income taxes     2,043     2,305     6,726       1,476     4,036     962       3,567       231  
Income taxes     921     1,040     3,038       467     1,820     437       1,610       92  
  Net income   $ 1,122   $ 1,265   $ 3,688     $ 1,009   $ 2,216   $ 525     $ 1,957     $ 139  
                                                         
Net income after preferred stock dividends and discount accretion   $ 940   $ 1,088   $ 3,507     $ 833   $ 2,036   $ 350     $ 1,779     $ (35 )
                                                         
Earnings per share - basic     0.44     0.56     1.65       0.21     0.96     0.03       0.84       0.03  
Earnings per share - diluted     0.43     0.56     1.69       0.21                              
                                                         
Shares outstanding (excludes treasury shares)     2,140,711     2,121,211     2,121,211       2,121,211     2,121,211     2,121,211       2,121,211       2,121,211  
Average shares outstanding (excludes treasury shares)     2,140,711     2,121,211     2,121,211       2,121,211     2,121,211     2,121,211       2,121,211       2,121,211  
Diluted shares outstanding (excludes treasury shares)     2,170,434     2,121,211                                            
                                                         
                                                         
       
Performance Ratios (Unaudited)   At or for the quarter ended  
    3/31/2013     3/31/2012     12/31/2012     12/31/2011     9/30/2012     9/30/2011     6/30/2012     6/30/2011  
Return on average assets (net income available to common stockholders to average assets)     0.72 %     0.82 %     2.64 %     0.61 %     1.52 %     0.25 %     1.35 %     -0.02 %
Return on average common stockholders' equity     8.22 %     12.01 %     32.19 %     9.19 %     19.88 %     3.99 %     18.67 %     -0.40 %
Average interest earning assets/average interest bearing liabilities     131 %     125 %     129 %     121 %     127 %     122 %     125 %     119 %
Net interest rate spread     4.58 %     5.07 %     4.70 %     4.50 %     5.05 %     4.32 %     4.77 %     4.42 %
Net interest margin     4.79 %     5.30 %     4.91 %     4.73 %     5.27 %     4.59 %     4.99 %     4.66 %
Net interest income after provision/total expenses     106.58 %     111.80 %     169.23 %     112.32 %     124.40 %     121.04 %     118.16 %     102.43 %
Non-interest income to total revenue     22.18 %     19.44 %     27.49 %     10.39 %     28.98 %     -2.19 %     29.60 %     2.73 %
Non-interest expense to total revenue     73.02 %     72.06 %     74.05 %     79.79 %     57.09 %     84.43 %     59.59 %     80.63 %
Non-interest expense to average assets     4.26 %     4.48 %     4.75 %     3.94 %     4.02 %     3.71 %     3.99 %     3.73 %
                                                                 
Net Worth and Asset Quality Ratios (Unaudited)                                                                
Average net worth to average total assets     12.04 %     10.01 %     11.42 %     9.74 %     10.87 %     9.19 %     10.42 %     8.74 %
Net worth to assets end of period     11.81 %     10.10 %     11.91 %     9.90 %     11.18 %     9.47 %     10.65 %     8.91 %
Non-performing assets to total assets     4.67 %     6.36 %     5.25 %     5.16 %     5.26 %     5.39 %     6.36 %     5.63 %
Non-performing loans to total loans     6.98 %     8.53 %     7.51 %     6.57 %     7.34 %     6.71 %     7.95 %     7.09 %
Allowance for loan loss to total loans     2.88 %     4.01 %     2.90 %     3.89 %     4.02 %     4.28 %     3.94 %     4.10 %
Allowance for loan losses to non-performing loans     41.20 %     47.07 %     38.64 %     59.25 %     54.75 %     63.81 %     49.59 %     57.85 %
Total risk based capital ratio (bank)     19.80 %     14.59 %     18.79 %     13.84 %     17.59 %     13.28 %     15.85 %     10.95 %
Tier 1 risk based capital ratio (bank)     18.53 %     13.31 %     17.52 %     12.56 %     16.34 %     12.00 %     14.57 %     9.79 %
Leverage ratio (bank)     13.17 %     10.83 %     12.89 %     10.27 %     12.11 %     9.54 %     11.48 %     8.74 %
Book value per share   $ 21.92     $ 17.55     $ 21.49     $ 16.88     $ 19.75     $ 16.58     $ 18.60     $ 16.66  
                                                                 

First Quarter Income Statement Variances:

       
    First Quarter Variances  
    2013 vs 2012     2013 vs 2012  
Interest income   $ (1,172 )   -14.8 %
Interest expense     (421 )   -33.1 %
  Net interest income     (751 )   -11.3 %
Provision for loan losses     -     -  
               
  Net interest income after provision for loan losses     (751 )   -11.3 %
Non-interest income     6     0.4 %
Non-interest expenses     (413 )   -6.9 %
BEA grant     70     -  
  Income before income taxes     (262 )   -11.4 %
Income taxes     (119 )   -11.5 %
  Net income   $ (143 )   -11.3 %
               
Net income after preferred stock dividends and discount accretion   $ (147 )   -13.6 %
               
Earnings per share - basic     (0.12 )      
Earnings per share - diluted     (0.12 )      
               

Contact Information

  • Contact Information:

    David A. Chin
    Senior Vice President and Chief Financial Officer
    First American International Corp.

    (718) 567-8788 ext. 26