NEW YORK, NY — (Marketwired) — 05/22/13 — 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.
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.
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.
Contact Information:
David A. Chin
Senior Vice President and Chief Financial Officer
First American International Corp.
(718) 567-8788 ext. 26