SOURCE: Idaho Bancorp

November 21, 2005 18:00 ET

Idaho Bancorp Issues Trust Preferred Securities and Announces Stock Buy-Back Plan

BOISE, ID -- (MARKET WIRE) -- November 21, 2005 -- Today Idaho Bancorp (OTC BB: IDBC) announced that Idaho Bancorp Statutory Trust I, a Delaware statutory trust subsidiary of Idaho Bancorp, has completed a private placement offering of $4 million of 30-year Trust Preferred Securities.

These securities have a fixed rate of 6.32% for the first five years and a floating rate of three month LIBOR plus a margin of 1.42% for the remaining 25 years. Idaho Bancorp Statutory Trust I may call the securities, at par, after December 15, 2010. D.A. Davidson & Co. acted as an advisor in the issuance of these securities.

Idaho Bancorp will use $3.5 million of these proceeds for a capital contribution to Idaho Banking Company, to accommodate future growth and expansion, including possible expansion to Canyon County.

The Board of Directors of Idaho Bancorp also approved the repurchase of up to $500,000 of its common stock through a buy-back plan to expire on December 31, 2006. Under the plan, Idaho Bancorp many purchase shares on the open market or in privately negotiated transactions. The repurchased shares may be reissued under existing stock incentive plans.

Idaho Bancorp is the holding company of Idaho Banking Company. Idaho Banking Company, a state-chartered commercial bank and member of the Federal Reserve, was organized in 1996 and operates four branch offices, and a home loan center in Ada County.

Contact Information

  • Contacts:
    Michael K. Johnston
    President and CEO

    Mary E. Brimson
    SVP Shareholder Relations

    Don D. Madsen
    EVP and CFO