SOURCE: Idaho Bancorp

October 15, 2007 07:00 ET

Idaho Bancorp Reports Third-Quarter Results

BOISE, ID--(Marketwire - October 15, 2007) - Today Idaho Bancorp (OTCBB: IDBC) reported net income for the first nine months of 2007 of $1,060,000, an 8% increase over the $978,000 reported in the same period of 2006. Diluted earnings per share of $.57 compared favorably to the $.53 per share reported in the first nine months of last year.

The most significant factor driving the year-to-year earnings improvement was a 6% increase in net interest income, a result of a 14% growth in the average loan portfolio, and an increase of 13% in other non-interest income. Net interest margin decreased slightly from 4.45% in the first nine months of 2006 to 4.28% in the first nine months of 2007 as a result of increasing cost of funds and continued pressure on loan rates due to intense market competition.

Net income for the third quarter of 2007 was $322,000, an 11% decrease from the $362,000 reported in the third quarter of 2006. Slower than expected loan growth, net interest margin compression and significant softening of residential real estate sales in the Treasure Valley adversely impacted the rate of earnings growth relative to the same period last year. Diluted earnings per share were $.17 per share, compared to $.20 per share in the same quarter last year.

Credit quality continues to be excellent. There were no nonperforming assets at September 30, 2007. The allowance for loan losses was 1.38% of total loans on September 30, 2007. Book value per share at September 30, 2007 was $9.37, an increase of 11% from the September 30, 2006 level.

"The intensely competitive banking market in the Treasure Valley has made it very difficult for our bank to achieve desired growth in the loan and deposit portfolios while maintaining reasonable pricing and spreads," said Mike Johnston, President and CEO. "We anticipate the 4th quarter to be equally challenging."

In May 2007 the Board of Directors approved a stock repurchase of up to 30,000 shares and the Company expects to begin repurchasing some or all of these shares over the next few months.

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 nine months ended
 September 30:                    2007       2006     $ Change   % Change
                                ---------  ---------  ---------  ---------
       Net interest income      $   6,755  $   6,390  $     365          6%
       Provision for loan
        losses                        185        360       (175)       -49%
       Mortgage banking income        518        732       (214)       -29%
       Other noninterest income       409        362         47         13%
       Noninterest expense          5,906      5,702        204          4%
       Net income before taxes      1,591      1,422        169         12%
       Income taxes                   531        444         87         20%
       Net income                   1,060        978         82          8%

       Earnings per share
            Basic                    0.58       0.55       0.03          5%
            Diluted                  0.57       0.53       0.03          6%

At September 30:                  2007       2006     $ Change   % Change
                                ---------  ---------  ---------  ---------
       Loans                    $ 187,828  $ 172,623  $  15,205          9%
       Allowance for loan
        losses                      2,589      2,413        176          7%
       Assets                     232,867    223,638      9,229          4%
       Deposits                   190,488    185,719      4,769          3%
       Shareholders' equity        17,051     15,246      1,805         12%
       Nonperforming loans              0          0          0        N/A
       Other real estate owned        524          0        524        N/A

       Book value per share          9.37       8.47       0.90         11%
       Shares of common stock
        outstanding             1,820,172  1,800,572     19,600          1%

       Allowance to loan ratio       1.38%      1.40%
       Allowance to
        nonperforming loans           N/A        N/A
       Nonperforming loans to
        total loans                  0.00%      0.00%

Averages for the nine months
 ended September 30:              2007       2006     $ Change   % Change
                                ---------  ---------  ---------  ---------
       Loans                    $ 177,451  $ 155,396  $  22,055         14%
       Earning assets             214,281    195,030     19,251         10%
       Assets                     226,259    206,690     19,569          9%
       Deposits                   185,028    165,118     19,910         12%
       Shareholders' equity        16,609     14,784     1, 825         12%

For the nine months ended
 September 30:
       Return on average assets      0.63%      0.63%
       Return on average equity      8.53%      8.84%
       Average loans to
        deposits                    95.90%     94.11%
       Net interest margin -
        tax equivalent               4.28%      4.45%
       Net loan charge-offs
        (recoveries)                   15        (38)
       Net charge-offs
        (recoveries) to loans        0.01%     -0.03%



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



                               2007 Q3  2007 Q2  2007 Q1  2006 Q4  2006 Q3
                               -------  -------  -------  -------  -------
Net interest income            $ 2,280  $ 2,277  $ 2,198  $ 2,297  $ 2,288
Provision for loan losses          145       30       10        0      140
Mortgage banking income            185      136      197      233      231
Other noninterest income           145      131      133      130      138
Noninterest expense              1,986    1,995    1,925    2,077    1,978
Net income before taxes            479      519      593      583      539
Income taxes                       157      174      200      191      177
Net income                         322      345      393      392      362

Earnings per share
    Basic                         0.18     0.19     0.22     0.22     0.20
    Diluted                       0.17     0.19     0.21     0.21     0.20

Average loans                  182,808  177,699  171,723  168,428  165,755
Average earning assets         220,128  216,409  206,152  210,018  204,802
Average assets                 232,011  228,472  218,140  221,942  216,575
Average deposits               189,402  188,822  176,722  182,953  176,920
Average shareholders' equity    16,989   16,632   16,197   15,714   15,282

Return on average assets          0.55%    0.61%    0.73%    0.70%    0.66%
Return on average equity          7.52%    8.32%    9.84%    9.90%    9.40%
Average loans to deposits        96.52%   94.11%   97.17%   92.06%   93.69%
Net interest margin - tax
 equivalent                       4.18%    4.28%    4.39%    4.40%    4.50%

Nonperforming loans - period
 end                           $     -  $     -  $     -  $     -  $     -
Other real estate owned -
 period end                        524        -        -        -        -
Loans - period end             187,828  177,890  175,100  171,188  172,623
Allowance for loan losses -
 period end                      2,589    2,456    2,435    2,419    2,413
Net charge-offs (recoveries) -
 quarterly                          12        9       (6)      (6)     (15)

Allowance to loans                1.38%    1.38%    1.39%    1.41%    1.40%
Allowance to nonperforming
 loans                             N/A      N/A      N/A      N/A      N/A
Nonperforming loans to total
 loans                            0.00%    0.00%    0.00%    0.00%    0.00%
Net charge-offs to loans -
 annualized                       0.03%    0.02%   -0.01%   -0.01%   -0.04%

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