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COPYRIGHT 2001 PR Newswire Association LLC
TORRANCE, Calif., March 30 /PRNewswire/ --
Imperial Credit Industries, Inc. (Nasdaq: ICII) reports results for the quarter and year ended December 31, 2000.
Fourth Quarter and Year End Results
Imperial Credit Industries, Inc., (the "Company" or "ICII") reported a net loss for the quarter ended December 31, 2000 of $104.6 million or $3.26 diluted net loss per share including an operating loss from discontinued operations of $4.1 million or $0.13 diluted net loss per share and an extraordinary gain on the early extinguishment of debt of $1.1 million or $0.04 diluted net income per share. The operating results for the quarter ended December 31, 2000 were primarily impacted by continued high levels of loan charge-offs and non-performing loans resulting in an increased provision for loan and lease losses of $66.3 million. The Company has increased its allowance for loan and lease losses to $63.6 million or 81.02% of non-accrual loans at December 31, 2000 as compared to $31.8 million or 62.18% of non-accrual loans at December 31, 1999. Additionally, continued operating losses in the fourth quarter caused management to reassess the likelihood of realizing the Company's deferred tax asset from the generation of future income. As a result of management's assessment and analysis, a $63.4 million deferred tax asset valuation allowance was established against the Company's $87.0 million gross deferred tax asset. For the same period last year, the Company reported net income of $8.1 million or $0.24 diluted net income per share including an operating loss from discontinued operations of $177,000 and an extraordinary gain on the early retirement of debt of $351,000 or $0.01 diluted net income per share.
The net loss for the year ended December 31, 2000 was $163.3 million or $5.01 diluted net loss per share including an operating loss from discontinued operations of $5.2 million or $0.16 diluted net loss per share and an extraordinary gain on the early extinguishment of debt of $3.5 million or $0.11 diluted net income per share. For the year ended December 31, 1999, the Company reported a net loss of $2.8 million or $0.08 diluted net loss per share including an operating loss from discontinued operations of $899,000 or $0.02 diluted net loss per share and an extraordinary gain on the early retirement of debt of $4.0 million or $0.11 diluted net income per share.
Net Interest Income for 2000 Unchanged as Compared to Prior Year
During the quarter ended December 31, 2000, interest income increased to $53.0 million as compared to $52.6 million for the same period last year. For the year ended December 31, 2000, interest income increased to $224.8 million as compared to $207.4 million for the same period last year. Interest income increased primarily as a result of increases in the average balance of outstanding loans, primarily at the Southern Pacific Bank's ("SPB") Coast Business Credit ("CBC") and Lewis Horwitz Organization ("LHO") lending divisions. The average yield on loans at SPB increased to 10.91% during the quarter ended December 31, 2000 as compared to 10.72% in the same period last year. Despite the increase for the quarter, yields on the Company's outstanding loans were negatively affected by a higher level of non-accrual loans during 2000 as compared to 1999. Average non-accrual loans and foregone interest income were approximately $91.2 million and $2.3 million for the quarter ended December 31, 2000 as compared to approximately $55.0 million and $1.6 million for the same period last year. The average yield on loans at SPB decreased to 11.18% during the year ended December 31, 2000 as compared to 11.33% in the same period last year. Average non-accrual loans and foregone interest income was approximately $87.8 million and $9.0 million for the year ended December 31, 2000 as compared to approximately $57.5 million and $4.4 million for the prior year. The Company's total loans and leases held for sale and investment, net of allowance for loan and lease losses remained unchanged at $1.5 billion at December 31, 2000 and December 31, 1999.
Interest expense was $35.4 million for the quarter ended December 31, 2000 as compared to $31.5 million for the same period last year. Interest expense was $140.2 million for the year ended December 31, 2000 as compared to $121.6 million for the same period last year. The increase in interest expense primarily resulted from an increase in both the cost and the average outstanding balance of the Federal Deposit Insurance Corporation insured deposits of SPB. SPB's deposits remained unchanged at $1.6 billion at December 31, 2000 and December 31, 1999. The average cost of deposits at SPB increased to 6.67% during the quarter ended December 31, 2000 as compared to 5.65% in the same period last year. The average cost of deposits at SPB increased to 6.64% during the year ended December 31, 2000 as compared to 5.71% in the prior year. The increase in the average cost of deposits at SPB primarily occurred as a result of a general increase in interest rates during 2000. Interest on other borrowings also increased as a result of the Imperial Credit Commercial Mortgage Investment Corp. ("ICCMIC") acquisition. Outstanding debt at ICCMIC totaled $43.9 million at December 31, 2000. The interest expense on ICCMIC's debt was $957,000 for the three months and $3.5 million for the year ended December 31, 2000. There were no comparable borrowings from ICCMIC in the fourth quarter or year ended December 31, 1999. The increases in interest on deposits and other borrowings were partially offset by a decrease in interest on long-term debt. Interest on long-term debt decreased 17.7% to $5.8 million for the quarter ended December 31, 2000 as compared to $7.0 million for the same period last year. Interest on long-term debt decreased 21.0% to $24.1 million for the year ended December 31, 2000 as compared to $30.5 million for the prior year. The decrease in interest on long-term debt resulted from the repurchase of long-term debt during the previous twelve months.
Net interest income before provisions for loan and lease losses for the quarter ended December 31, 2000 decreased 16.4% to $17.6 million as compared to $21.1 million for the same period last year. For the year ended December 31, 2000, net interest income before provisions for loan and lease losses remained relatively unchanged at $84.6 million as compared to $85.8 million for the prior year. Net interest income before provisions for loan and lease losses decreased for the quarter and year ended December 31, 2000 primarily as a result of increased deposit costs.
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