MCCALL, ID--(Marketwire - November 24, 2009) - Today Idaho First Bank (
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