SOURCE: Idaho Bancorp

January 15, 2008 07:00 ET

Idaho Bancorp Reports Record Results for 2007

BOISE, ID--(Marketwire - January 15, 2008) - Today Idaho Bancorp (OTCBB: IDBC) reported record net income for 2007 of $1,441,000, a 5% increase over the $1,370,000 reported in the same period of 2006. Diluted earnings per share of $.78 compared favorably to the $.75 per share reported in the prior year.

The most significant factor driving the year-to-year earnings improvement was a 5% increase in net interest income, a result of a 15% growth in the average loan portfolio and an increase of 27% in other non-interest income. This earnings improvement was achieved despite the fact that the bank incurred its first annual net loan loss in four years. Net loan charge-offs for the year were $106,000 and nonperforming loans represent .48% of loans at December 31, 2007.

Net interest margin decreased from 4.44% in 2006 to 4.24% in 2007 due to increasing cost of funds and continued pressure on loan rates due to intense market competition.

Net income for the fourth quarter of 2007 was $381,000, a 3% decrease from the $392,000 reported in the fourth quarter of 2006. Net interest margin compression and significant softening of the residential real estate sector in the Treasure Valley adversely impacted the rate of earnings growth relative to the same period last year. Earnings were also impacted by tax expense incurred for early surrender of certain bank owned life insurance policies. Quarterly diluted earnings per share were $.21 compared to $.21 per share in the same quarter last year.

The allowance for loan losses was 1.38% of total loans on December 31, 2007. Book value per share at December 31, 2007 was $9.61, an increase of 10% from the December 31, 2006 level.

"Overall I am pleased with our Bank's 2007 financial results," said Mike Johnston, President and CEO. "In an intensely competitive marketplace marked by very soft residential real estate development and sales we still generated double-digit growth in our average loan and deposit totals over 2006. We did see compression in our net interest margin driven primarily by interest expense on the funding side, and we expect further compression in 2008 due to past and expected future rate cuts by the Federal Open Market Committee. Looking forward, 2008 will be another challenging year for the entire banking industry, but I believe our Company is well positioned to continue delivering solid results for our shareholders."

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 construction & mortgage home loan center. The Bank serves clients throughout southwestern Idaho.

                          Idaho Bancorp and Subsidiary
                   Consolidated Financial Highlights (unaudited)
                     (Dollars in thousands, except per share)

For the year ended December 31:   2007       2006     $ Change   % Change
                                ---------  ---------  ---------  ---------
     Net interest income        $   9,080  $   8,687  $     393          5%
     Provision for loan losses        310        360        (50)       -14%
     Mortgage banking income          715        965       (250)       -26%
     Other noninterest income         625        492        133         27%
     Noninterest expense            7,860      7,779         81          1%
     Net income before taxes        2,250      2,005        245         12%
     Income taxes                     809(1)     635        174         27%
     Net income                     1,441      1,370         71          5%

     Earnings per share
         Basic                       0.79       0.77       0.02          3%
         Diluted                     0.78       0.75       0.03          4%

At December 31:                   2007       2006     $  Change  % Change
                                ---------  ---------  ---------  ---------
     Loans                      $ 190,366  $ 171,188  $  19,178         11%
     Allowance for loan losses      2,623      2,419        204          8%
     Assets                       234,502    219,941     14,561          7%
     Deposits                     189,226    181,589      7,637          4%
     Shareholders' equity          17,438     15,769      1,669         11%
     Nonperforming loans              911          0        911        100%
     Other real estate owned            0          0          0         N/A

     Book value per share            9.61       8.73       0.88         10%
     Shares of common stock
      outstanding               1,814,222  1,805,772      8,450          0%

     Allowance to loan ratio         1.38%      1.41%
     Allowance to nonperforming
      loans                           288%        N/A
     Nonperforming loans to
      total loans                    0.48%      0.00%

Averages for year ended
 December 31:                     2007       2006     $  Change  % Change
                                ---------  ---------  ---------  ---------
     Loans                      $ 181,719  $ 158,680  $  23,039         15%
     Earning assets               217,553    198,808     18,745          9%
     Assets                       229,412    210,535     18,877          9%
     Deposits                     186,789    169,613     17,176         10%
     Shareholders' equity          16,779     15,019      1,760         12%

For the year ended December 31:
     Return on average assets        0.63%      0.65%
     Return on average equity        8.59%      9.12%
     Average loans to deposits      97.29%     93.55%
     Net interest margin - tax
      equivalent                     4.24%      4.44%
     Net loan charge-offs
      (recoveries)                    106        (44)
     Net charge-offs
      (recoveries) to loans          0.06%     -0.03%

(1) Additional tax expense incurred for early surrender of certain bank
    owned life insurance policies.



                        Idaho Bancorp and Subsidiary
            Quarterly Consolidated Financial Highlights (unaudited)
                  (Dollars in thousands, except per share)

                             2007 Q4   2007 Q3   2007 Q2  2007 Q1  2006 Q4
                             -------   -------   -------  -------  -------
Net interest income          $ 2,325   $ 2,280   $ 2,277  $ 2,198  $ 2,297
Provision for loan losses        125       145        30       10        0
Mortgage banking income          197       185       136      197      233
Other noninterest income         217       145       131      133      130
Noninterest expense            1,955     1,986     1,995    1,925    2,077
Net income before taxes          659       479       519      593      583
Income taxes                     278(1)    157       174      200      191
Net income                       381       322       345      393      392

Earnings per share
    Basic                       0.21      0.18      0.19     0.22     0.22
    Diluted                     0.21      0.17      0.19     0.21     0.21

Average loans                194,381   182,808   177,699  171,723  168,428
Average earning assets       227,257   220,128   216,409  206,152  210,018
Average assets               238,798   232,011   228,472  218,140  221,942
Average deposits             191,565   189,402   188,822  176,722  182,953
Average shareholders'
 equity                       17,439    16,989    16,632   16,197   15,714

Return on average assets        0.63%     0.55%     0.61%    0.73%    0.70%
Return on average equity        8.67%     7.52%     8.32%    9.84%    9.90%
Average loans to deposits     101.47%    96.52%    94.11%   97.17%   92.06%
Net interest margin - tax
 equivalent                     4.13%     4.18%     4.28%    4.39%    4.40%

Nonperforming loans -
 period end                  $   911   $     -   $     -  $     -  $     -
Other real estate owned -
 period end                        -         -(2)      -        -        -
Loans - period end           190,366   187,828   177,890  175,100  171,188
Allowance for loan losses -
 period end                    2,623     2,589     2,456    2,435    2,419
Net charge-offs (recoveries)
 - quarterly                      91        12         9       (6)      (6)

Allowance to loans              1.38%     1.38%     1.38%    1.39%    1.41%
Allowance to nonperforming
 loans                           288%       N/A       N/A      N/A      N/A
Nonperforming loans to total
 loans                          0.48%     0.00%     0.00%    0.00%    0.00%
Net charge-offs to loans -
 annualized                     0.19%     0.03%     0.02%   -0.01%   -0.01%

(1) Additional tax expense incurred for early surrender of certain bank
    owned life insurance policies.
(2) Represents correction to third quarter press release. Previous amount
    reported of $524,000, which represented property originally purchased
    and owned by the bank, was classified as fixed assets for call report
    purposes.

Contact Information

  • Contacts:

    Michael K. Johnston
    President and CEO
    208-472-4702

    Mary E. Brimson
    SVP Shareholder Relations
    208-472-4705

    Wendi L. Stalder
    EVP and CFO
    208-947-1873