SOURCE: Idaho Bancorp

April 16, 2007 07:00 ET

Idaho Bancorp Reports First Quarter Results

BOISE, ID -- (MARKET WIRE) -- April 16, 2007 -- Today Idaho Bancorp (OTCBB: IDBC) reported record net income for the first quarter of 2007 of $393,000, a 36% increase over the $290,000 reported in the first quarter of 2006. Quarterly diluted earnings of $.21 per share compared favorably to the $.16 per share reported in the first quarter of last year.

The most significant factor driving the year-to-year earnings improvement was a 15% increase in net interest income, a result of a 22% growth in the average loan portfolio and an improvement in net interest margin. Net interest margin improved from 4.37% in the first quarter of 2006 to 4.39% in the first quarter of 2007. However, net interest margin decreased five basis points from the fourth quarter of 2006. Management anticipates further compression in the net interest margin in 2007, particularly in the event of an interest rate reduction by the Federal Open Market Committee.

Credit quality continues to be excellent. There were no nonperforming assets at March 31, 2007. Also, loan recoveries exceeded loan charge-offs by $6,000 for the first quarter of 2007. The allowance for loan losses was 1.39% of total loans on March 31, 2007. Book value per share at March 31, 2007 was $8.96, an increase of 12% from the March 31, 2006 level.

"Our first quarter net income is the third consecutive quarterly record in a row for our Bank and validates our customer-centric approach to banking," said Mike Johnston, President and CEO. "The financial services marketplace in the Treasure Valley is highly competitive but our strategic formula of having highly talented bankers deliver excellent customer service has generated lasting impressions with our clients. And in turn, our customers have rewarded us with their loyalty. I'm very optimistic that 2007 will be another great year for Idaho Bancorp."

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 quarter ended March 31:    2007        2006     $ Change  % Change
                                ----------  ----------  --------  --------
  Net interest income           $    2,198  $    1,917  $    281        15%
  Provision for loan losses             10          60       (50)      -83%
  Mortgage banking income              197         275       (78)      -28%
  Other noninterest income             133         107        26        24%
  Noninterest expense                1,925       1,848        77         4%
  Net income before taxes              593         391       202        52%
  Income taxes                         200         101        99        98%
  Net income                           393         290       103        36%

  Earnings per share
     Basic                            0.22        0.16      0.06        38%
     Diluted                          0.21        0.16      0.06        38%

At March 31:                       2007        2006     $ Change  % Change
                                ----------  ----------  --------  --------
  Loans                         $  175,100  $  149,149  $ 25,951        17%
  Allowance for loan losses          2,435       2,087       348        17%
  Assets                           227,957     198,343    29,614        15%
  Deposits                         188,487     156,523    31,964        20%
  Shareholders' equity              16,280      14,257     2,023        14%
  Nonperforming loans                    0           0         0       N/A
  Other real estate owned                0           0         0       N/A

  Book value per share                8.96        8.02      0.94        12%
  Shares of common stock
   outstanding                   1,816,922   1,776,700    40,222         2%

  Allowance to loan ratio            1.39%        1.40%
  Allowance to nonperforming
   loans                              N/A          N/A
  Nonperforming loans to total
   loans                             0.00%        0.00%

Averages for the quarter ended
 March 31:                         2007        2006     $ Change  % Change
                                ----------  ----------  --------  --------
  Loans                         $  171,723  $  141,232  $ 30,491        22%
  Earning assets                   206,152     181,451    24,701        14%
  Assets                           218,140     192,582    25,558        13%
  Deposits                         176,722     150,908    25,814        17%
  Shareholders' equity              16,197      14,301     1,896        13%

For the quarter ended March 31:
  Return on average assets            0.73%       0.61%
  Return on average equity            9.84%       8.22%
  Average loans to deposits          97.17%      93.59%
  Net interest margin - tax
   equivalent                         4.39%       4.37%
  Net loan charge-offs
   (recoveries)                         (6)        (11)
  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 Q1   2006 Q4   2006 Q3   2006 Q2   2006 Q1
                          --------  --------  --------  --------  --------
Net interest income       $  2,198  $  2,297  $  2,288  $  2,185  $  1,917
Provision for loan losses       10         0       140       160        60
Mortgage banking income        197       233       231       226       275
Other noninterest income       133       130       138       117       107
Noninterest expense          1,925     2,077     1,978     1,876     1,848
Net income before taxes        593       583       539       492       391
Income taxes                   200       191       177       166       101
Net income                     393       392       362       326       290

Earnings per share
   Basic                      0.22      0.20      0.20      0.18      0.16
   Diluted                    0.21      0.21      0.20      0.18      0.16

Average loans              171,723   168,428   165,755   158,930   141,232
Average earning assets     206,152   210,018   204,802   198,582   181,451
Average assets             218,140   221,942   216,575   210,649   192,582
Average deposits           176,722   182,953   176,920   175,582   150,908
Average shareholders'
 equity                     16,197    15,714    15,282    14,931    14,301

Return on average assets      0.73%     0.70%     0.66%     0.62%     0.61%
Return on average equity      9.84%     9.90%     9.40%     8.76%     8.22%
Average loans to deposits    97.17%    92.06%    93.69%    90.52%    93.59%
Net interest margin - tax
 equivalent                   4.39%     4.40%     4.50%     4.48%     4.37%

Nonperforming loans -
 period end               $      -  $      -  $      -  $      -  $      -
Other real estate owned -
 period end                      -         -         -         -         -
Loans - period end         175,100   171,188   172,623   161,058   149,149
Allowance for loan
 losses - period end         2,435     2,419     2,413     2,258     2,087
Net charge-offs
 (recoveries) - quarterly       (6)       (6)      (15)      (12)      (11)

Allowance to loans            1.39%     1.41%     1.40%     1.40%     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                  -0.01%    -0.01%    -0.04%    -0.03%    -0.03%

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