Infinity Bancorp Announces First Quarter 2023 Financial Results

SANTA ANA, CA / ACCESSWIRE / May 10, 2023 / Infinity Bancorp (OTCQB:INFT) (the "Company" or "Bancorp"), the holding company for Infinity Bank (the "Bank"), today announced financial results for the quarter ended, March 31, 2023.

Financial highlights for the first quarter of 2023:

• Annualized return on average assets of 1.88%
• Annualized return on average equity of 19.16%
• Total assets and deposits were relatively unchanged at $307 million and $270 million, respectively
• Total liquidity remains very high at approximately $150 million (nearly 50% of the Bank's assets are held in cash and short-term investment securities)
• Net interest margin increased 58 basis points from prior period ended December 31, 2022
• Net income increased 189.3% when compared to the first quarter of 2022
• Total Risk-based capital ratio increased to 20.2%

Commentary on Recent Market Turbulence

During the past several weeks, larger, regional banks have come under pressure as it relates to their stock price and deposit outflows. These challenges have arisen as a result of market perceptions that these banks contain undue risk in their balance sheets due to various measures of risk as examined by the marketplace. The impact of this market perception has been that depositors of these regional banks have withdrawn significant portions of their deposits, putting a strain on the banks' liquidity in a profound and, for a small number of regional banks, catastrophic way. However, and in contrast, Infinity Bank has not seen outflows of deposits or depositors. In fact, Infinity Bank has seen growth in the number of depositors in larger numbers than typical during the past several weeks. We believe that this stability and increase is a direct result of the conservative manner in which Infinity Bank operates (as evidenced by its significant liquidity and capital ratios - some of the highest in the nation) coupled with the deep relationships the Bank has established with its existing customers. The depth of these relationships has served as a bedrock of trust on which Infinity Bank has, and will always, stand.

Loans

Total loans were $154.8 million at March 31, 2023, compared to $156.6 million for the fourth quarter ending December 31, 2022, a decrease of $1.8 million, or -1.1%. On a year-over year basis, total loans grew $7.6 million, or 5.1% from the first quarter ending March 31, 2022. The Bank funded$21.3million in new loans/advances in the first quarter of 2023. The fundings were offset by $23.3million in payoffs, most of which were expected based on the contractual terms of the loans. The Bank's loan to deposit ratio increased to 57.2% as of March 31, 2023, from 56.7% as of December 31, 2022 and increased from 53.4% from a year ago. The fluctuation in the Bank's loan to deposit ratio continues to be caused by changes in total deposits and the timing of loan payoffs/paydowns versus draws on loan commitments.