SOURCE: Idaho First Bank

November 24, 2009 19:20 ET

Idaho First Bank Reports Quarterly Results

MCCALL, ID--(Marketwire - November 24, 2009) - Today Idaho First Bank (OTCBB: IDFB) reported financial results for the third quarter of 2009. The Bank reported a loss of $702,000 for the third quarter and a loss of $1,480,000 for the nine months ended September 30, 2009.

The quarterly net loss of $702,000 was higher than the $349,000 loss in the same quarter last year primarily because of a $250,000 increase in the provision for loan losses. The year-to-date loss was about 5% higher than the loss reported for the first nine months of 2008. The provision for loan losses was $1,200,000 for the first nine months of 2009 compared to $650,000 in the same period in 2008 due to increased loan charge-offs and increasing the allowance from 1.52% of loans to 2.01% of loans. Helping to offset the large provision for loan losses, the Bank sold investment securities and realized gains of $336,000 in 2009. Despite the 35% increase in year-to-date earning assets, the contraction in net interest margin from 3.95% to 3.36% resulted in the year-to-date net interest income increasing by only 15%. The margin contraction was a result of the extremely low interest rate environment and rates on variable rate loans and investments falling more rapidly than deposit rates.

On a positive note, the FDIC released market share information for June 30, 2009, that showed that the Bank had a 31% share of bank deposits in McCall. The annual survey showed that the Bank was trailing the market leader by $2.8 million. As deposits grew from $50.8 million on June 30 to $60.4 million at September 30, Idaho First Bank may now be the largest bank in McCall, as measured by deposits.

The allowance for loan losses was 2.01% of total loans at the end of the quarter and was 35% of nonperforming loans at September 30, 2009. The Bank continues to be impacted by unfavorable economic conditions both nationally and locally. As of September 30, 2009, nonperforming loans increased to $3,344,000, or 5.72% of loans. In addition, the Bank had $564,000 of other real estate owned bringing total nonperforming assets to $3,908,000. "The Bank's lending staff is working diligently with our clients to resolve problem loans and reduce the level of nonperforming assets," stated Greg Lovell, president of the Bank. He further noted, "While the economic climate is still unfavorable we see some indications that Valley County real estate prices have stabilized and are no longer falling."

The Bank fell below "well-capitalized" levels at September 30, 2009, but remains "adequately capitalized" as defined by bank regulators. The Bank is pursuing several sources of additional capital, with a plan to restore the Bank's capital to a "well-capitalized" level at year-end.

Idaho First Bank is a state-chartered commercial bank that opened for business in October 2005. Its headquarters are located in McCall, Idaho, with a loan production office in downtown Boise.

This release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 ("PSLRA"). Such forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those projected. These risks and uncertainties include, but are not limited to, economic conditions, the regulatory environment, loan concentrations, vendors, employees, technology, competition, and interest rates. Readers are cautioned not to place undue reliance on the forward-looking statements. Idaho First Bank has no obligation to publicly update the forward-looking statements after the date of this release. This statement is included for the express purpose of invoking PSLRA's safe harbor provisions.



                             Idaho First Bank
                     Financial Highlights (unaudited)
                (Dollars in thousands, except per share)


For the nine months ended         2009       2008            Change
 September 30:                  ---------  ---------  --------------------
  Net interest income           $   1,653  $   1,440  $     213         15%
  Provision for loan losses         1,200        650        550         85%
  Investment securities gains         336          9        327
  Mortgage banking income             223        140         83         59%
  Other noninterest income            159        147         12          8%
  Noninterest expenses              2,651      2,490        161          6%

    Net loss                       (1,480)    (1,404)       (76)        -5%


September 30:                     2009       2008            Change
                                ---------  ---------  --------------------
  Loans                         $  58,463  $  45,833  $  12,630         28%
  Allowance for loan losses         1,177        697        480         69%
  Assets                           71,798     58,381     13,417         23%
  Deposits                         60,379     48,968     11,411         23%
  Stockholders' equity              4,823      5,951     (1,128)       -19%

  Nonaccrual loans                  2,384        428      1,956        457%
  Accruing loan more than 90
   days past due                      960                   960
  Other real estate owned             564                   564
    Total nonperforming assets      3,908        428      3,480        813%

  Book value per share               3.50       5.04      (1.54)       -31%
  Shares outstanding            1,376,584  1,179,864    196,720         17%

  Allowance to loans                 2.01%      1.52%
  Allowance to nonperforming
   loans                               35%       163%
  Nonperforming loans to total
   loans                             5.72%      0.93%


Averages for the nine months      2009       2008            Change
 ended Sept 30:                 ---------  ---------  --------------------
  Loans                         $  56,521  $  38,068  $  18,453         48%
  Earning assets                   65,736     48,724     17,012         35%
  Assets                           68,668     51,315     17,353         34%
  Deposits                         57,558     42,462     15,096         36%
  Stockholders' equity              5,618      5,457        161          3%

  Loans to deposits                    98%        90%
  Net interest margin                3.36%      3.95%





                             Idaho First Bank
                Quarterly Financial Highlights (unaudited)
                          (Dollars in thousands)


                           Q3 2009   Q2 2009   Q1 2009   Q4 2008   Q3 2008
                          --------  --------  --------  --------  --------
  Net interest income     $    501  $    596  $    556  $    537  $    543
  Provision for loan
   losses                      425       550       225       400       175
  Investment securities
   gains                                 336                             9
  Mortgage banking income       59        99        65        21        58
  Other noninterest
   income                       54        56        49        50        56
  Noninterest expenses         891       920       840       811       840

    Net loss                  (702)     (383)     (395)     (603)     (349)


                           Q3 2009   Q2 2009   Q1 2009   Q4 2008   Q3 2008
Period End Information    --------  --------  --------  --------  --------
  Loans                   $ 58,463  $ 58,328  $ 55,394  $ 51,665  $ 45,833
  Allowance for loan
   losses                    1,177       810       854       741       697
  Nonperforming loans        3,344     2,096     1,731     1,150       428
  Other real estate owned      564       519       519       459
  Quarterly net
   charge-offs                  57       595       112       356         5

  Allowance to loans          2.01%     1.39%     1.54%     1.43%     1.52%
  Allowance to
   nonperforming loans          35%       39%       49%       64%      163%
  Nonperforming loans
   to loans                   5.72%     3.59%     3.12%     2.23%     0.93%


Average Balance            Q3 2009   Q2 2009   Q1 2009   Q4 2008   Q3 2008
 Information              --------  --------  --------  --------  --------
  Loans                   $ 58,360  $ 57,340  $ 53,814  $ 47,504  $ 43,025
  Earning assets            67,743    64,022    65,418    60,269    56,757
  Assets                    70,815    66,616    68,547    62,853    59,588
  Deposits                  59,016    55,563    58,083    53,441    50,236
  Stockholders' equity       5,225     5,582     6,057     5,991     5,615

  Loans to deposits             99%      103%       93%       89%       86%
  Net interest margin         2.93%     3.73%     3.45%     3.54%     3.81%

Contact Information

  • Contacts:
    Greg Lovell
    President and CEO
    208-630-2001

    Don Madsen
    CFO
    208-947-0430