SOURCE: Idaho Bancorp

April 15, 2008 17:04 ET

Idaho Bancorp Reports First Quarter Results

BOISE, ID--(Marketwire - April 15, 2008) - Today Idaho Bancorp (OTCBB: IDBC) reported net income for the first quarter of 2008 of $129,000 compared to $393,000 for the same quarter a year ago. The decrease in net income was attributed to margin compression, additions to loan loss provision and one-time non-interest expense charges. Quarterly diluted earnings were $.07 per share compared to $.21 per share reported in the first quarter of last year. Book value per share increased to $9.84.

The Bank reported $2,114,000 in net interest income for the first quarter of 2008 versus $2,198,000 for the first quarter of 2007. The decrease was driven by considerable net interest margin compression experienced in the first quarter of 2008. An elevated level of non-interest expense further hampered earnings with a combination of one-time charges for staffing and outside professional fees. Average loans for the quarter were $189,698,000 which represented an increase of 10% over the first quarter of last year. Average deposits for the quarter were $184,627,000 versus $176,722,000 for the same quarter a year ago. The Bank remains well capitalized with a Tier One Leverage ratio well above 10% and total assets of $233,908,000.

Due in part to softening local and national economic conditions, the Bank increased its allowance for loan losses to 1.41% of loans outstanding compared to 1.38% fourth quarter 2007. Net charge-offs for the quarter totaled $106,000 or 0.06%, primarily related to one real estate loan that was considered nonperforming at December 31, 2007. Nonperforming loans as of March 31, 2008 represented 0.17% of loans outstanding. Credit standards remain high and the allowance, as a percent of outstanding loans, is projected to stabilize and potentially decrease as economic conditions improve.

Idaho Banking Company's Interim President and CEO Gary Quast commented, "I am pleased to report that in light of the current economic challenges facing our industry our Bank managed to finish with a good first quarter in 2008. The unprecedented 200 basis point cut in the Fed Funds Rate since January of 2008 has been hurting our net interest margin as it has for other community banks." He continued, "I remain cautiously optimistic in regards to the continued strong performance of our loan portfolio. However, I see new pressure placed on the Bank which will likely continue to weigh on the Bank's performance over the next several quarters. As we resume the road to growth, I am hopeful that this situation will be short lived. We are now more determined than ever to fine-tune our approaches, perfect our strategies, and better focus our efforts and investments for the purpose of enhancing profitability 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 quarter ended March 31:   2008       2007     $ Change   % Change
                                ---------  ---------  ---------  ---------
  Net interest income           $   2,114  $   2,198  $     (84)        -4%
  Provision for loan losses           145         10        135       1350%
  Mortgage banking income             214        197         17          9%
  Other noninterest income            133        133          0          0%
  Noninterest expense               2,134      1,925        209         11%
  Net income before taxes             182        593       (411)       -69%
  Income taxes                         53        200       (147)       -74%
  Net income                          129        393       (264)       -67%

  Earnings per share
    Basic                            0.07       0.22      (0.15)       -68%
    Diluted                          0.07       0.21      (0.14)       -67%

At March 31:                       2008       2007    $  Change   % Change
                                ---------  ---------  ---------  ---------
  Loans                         $ 189,284  $ 175,100  $  14,184          8%
  Allowance for loan losses         2,662      2,435        227          9%
  Assets                          240,701    227,957     12,744          6%
  Deposits                        190,240    188,487      1,753          1%
  Shareholders' equity             17,849     16,280      1,569         10%
  Nonperforming loans                 316          0        316        N/A
  Other real estate owned               0          0          0        N/A

  Book value per share               9.84       8.96       0.88         10%
  Shares of common stock
   outstanding                  1,814,022  1,816,922     (2,900)         0%

  Allowance to loan ratio            1.41%      1.39%
  Allowance to nonperforming
   loans                              842%       N/A
  Nonperforming loans to total
   loans                             0.17%      0.00%

Averages for the year ended
 March 31:                         2008       2007    $  Change   % Change
                                ---------  ---------  ---------  ---------
  Loans                           189,698  $ 171,723  $  17,975         10%
  Earning assets                  223,253    206,152     17,101          8%
  Assets                          233,908    218,140     15,768          7%
  Deposits                        184,627    176,722      7,905          4%
  Shareholders' equity             17,541     16,197      1,344          8%

For the quarter ended March 31:
  Return on average assets           0.22%      0.73%
  Return on average equity           2.96%      9.84%
  Average loans to deposits        102.75%     97.17%
  Net interest margin - tax
   equivalent                        3.87%      4.39%
  Net loan charge-offs
   (recoveries)                       106         (6)
  Net charge-offs (recoveries)
   to loans (annualized)             0.22%     -0.01%





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


                               2008 Q1  2007 Q4  2007 Q3  2007 Q2  2007 Q1
                               -------  -------  -------  -------  -------
  Net interest income          $ 2,114  $ 2,325  $ 2,280  $ 2,277  $ 2,198
  Provision for loan losses        145      125      145       30       10
  Mortgage banking income          214      197      185      136      197
  Other noninterest income         133      217      145      131      133
  Noninterest expense            2,134    1,955    1,986    1,995    1,925
  Net income before taxes          182      659      479      519      593
  Income taxes                      53      278      157      174      200
  Net income                       129      381      322      345      393

  Earnings per share
    Basic                         0.07     0.21     0.18     0.19     0.22
    Diluted                       0.07     0.21     0.17     0.19     0.21

  Average loans                189,698  194,381  182,808  177,699  171,723
  Average earning assets       223,253  227,257  220,128  216,409  206,152
  Average assets               233,908  238,798  232,011  228,472  218,140
  Average deposits             184,627  191,565  189,402  188,822  176,722
  Average shareholders' equity  17,541   17,439   16,989   16,632   16,197

  Return on average assets        0.22%    0.63%    0.55%    0.61%    0.73%
  Return on average equity        2.96%    8.67%    7.52%    8.32%    9.84%
  Average loans to deposits     102.75%  101.47%   96.52%   94.11%   97.17%
  Net interest margin - tax
   equivalent                     3.87%    4.13%    4.18%    4.28%    4.39%

  Nonperforming loans - period
   end                         $   316  $   911  $     -  $     -  $     -
  Other real estate owned -
   period end                        -        -        -        -        -
  Loans - period end           189,284  190,366  187,828  177,890  175,100
  Allowance for loan losses -
   period end                    2,662    2,623    2,589    2,456    2,435
  Net charge-offs (recoveries)
   - quarterly                     106       91       12        9       (6)

  Allowance to loans              1.41%    1.38%    1.38%    1.38%    1.39%
  Allowance to nonperforming
   loans                           842%     288%     N/A      N/A      N/A
  Nonperforming loans to total
   loans                          0.17%    0.48%    0.00%    0.00%    0.00%
  Net charge-offs to loans -
   annualized                     0.22%    0.19%    0.03%    0.02%   -0.01%

Contact Information

  • Contacts:
    Gary D. Quast
    Interim President and CEO
    208-472-4704

    Bruce W. Barfuss
    Senior Vice President and CFO
    208-947-1873

    Mary E. Brimson
    Senior Vice President, Shareholder Relations
    208-472-4705