SOURCE: Idaho Bancorp

July 15, 2005 08:00 ET

Idaho Bancorp Reports Record Quarterly Income

BOISE, ID -- (MARKET WIRE) -- July 15, 2005 -- Today Idaho Bancorp (OTC BB: IDBC) reported record quarterly net income of $280,000 for the second quarter of 2005, an increase of 78% over the $157,000 reported in the second quarter of 2004. Diluted net income per share was $.15 for the quarter, compared to $.09 in the same quarter of last year. Earnings per share for 2004 have been restated for the 2-for-1 stock split paid in December 2004.

Earnings for the first six months of 2005 were $530,000, an increase of 91% from the first half of 2004. Diluted earnings per share, on a year-to-date basis, increased from $.16 in 2004 to $.29 in 2005. For the first half of the year, return on average equity increased from 4.82% last year to 8.35% this year.

The most significant factor driving the year-to-year earnings improvement was a 30% increase in net interest income, a result of a 19% growth in the average loan portfolio and an improvement in net interest margin. Net interest margin improved from 3.69% in the first half of 2004 to 4.08% in the first six months of this year. Net interest margin also showed a quarterly improvement from 4.00% in the first quarter of 2005 to 4.17% in the second quarter of 2005.

Credit quality continues to be excellent. There were no nonperforming assets on June 30, 2005. Also, there were no loan charge-offs in the first half of 2005, and recoveries of previously charged-off loans totaled $135,000. The allowance for loan losses was 1.53% of total loans on June 30, 2005, compared to 1.48% one year ago. In the second quarter of 2005 a negative provision for loan losses of $40,000 was recorded. This was offset by a $40,000 provision, within noninterest expense, to establish an allowance for credit losses on off-balance sheet credit exposures, which are unfunded loan commitments and letters of credit made in the normal course of business.

Total assets of the Company were $176 million at June 30, 2005, a growth of 10% from one year ago. At the end of the quarter, loans and deposits were at $123 million and $151 million respectively, resulting in a loan-to-deposit ratio of 81%.

The Company's book value per share was $7.51, up 10% from the previous year.

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 home loan center in Ada County.



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


For the six months
 ended June 30:                    2005     2004    $ Change    % Change
                               ---------  --------  --------    --------
   Net interest income         $   3,241  $ 2,498    $  743         30%
   Provision for loan losses           0       60       (60)      -100%
   Mortgage banking income           410      429       (19)        -4%
   Other noninterest income          224      161        63         39%
   Noninterest expense             3,108    2,623       485         18%
   Net income before taxes           767      405       362         89%
   Income taxes                      237      128       109         85%
   Net income                        530      277       253         91%

   Net income per share
     Basic                          0.31     0.16      0.15         94%
     Diluted                        0.29     0.16      0.13         81%

At June 30:                        2005      2004    $ Change   % Change
                               ---------  ---------   --------  --------
   Loans                       $ 123,331  $ 111,407  $  11,924      11%
   Allowance for
    loan losses                    1,893      1,653        240      15%
   Assets                        175,916    159,273     16,643      10%
   Deposits                      150,764    128,167     22,597      18%
   Shareholders' equity           13,146     11,590      1,556      13%
   Nonperforming loans                 0          0          0      N/A
   Other real estate owned             0          0          0      N/A

   Book value per share             7.51       6.80       0.71      10%
   Shares of common stock
    outstanding                1,751,500  1,704,200      47,300      3%

   Allowance to loan ratio         1.53%      1.48%
   Allowance to nonperforming
    loans                            N/A       N/A
   Nonperforming loans to total
    loans                          0.00%      0.00%

Averages for the six months
 ended June 30:                    2005      2004    $ Change   % Change
                               ---------  ---------  --------   --------
   Loans                       $ 121,543  $ 102,322  $ 19,221       19%
   Earning assets                163,054    139,059    23,995       17%
   Assets                        173,704    145,714    27,990       19%
   Deposits                      146,036    123,424    22,612       18%
   Shareholders' equity           12,794     11,561     1,233       11%

For the six months ended June 30:
   Return on average assets        0.62%      0.38%
   Return on average equity        8.35%      4.82%
   Average loans to deposits      83.23%     82.90%
   Net interest margin - tax
    equivalent                     4.08%      3.69%
   Net loan charge-offs
    (recoveries)                   (135)       (52)
   Net charge-offs (recoveries)
    to loans                      -0.22%     -0.10%


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

                          2005 Q2   2005 Q1   2004 Q4   2004 Q3    2004 Q2
                         --------   -------   -------   -------    -------
Net interest income      $  1,670   $ 1,571   $ 1,579   $ 1,504    $ 1,323
Provision for
 loan losses                  (40)       40         0        40         30
Mortgage banking income       240       170       239       229        250
Securities gains                0         0         0        16          0
Other noninterest income      116       108       120       107         83
Noninterest expense         1,659     1,449     1,555     1,409      1,410
Net income before taxes       407       360       383       407        216
Income taxes                  127       110       123       132         59
Net income                    280       250       260       275        157

Net income per share
   Basic                     0.16      0.14      0.15      0.16       0.09
   Diluted                   0.15      0.14      0.15      0.15       0.09

Average loans             121,643   121,443   118,120   116,470    108,474
Average earning assets    163,741   162,358   158,557   156,182    144,942
Average assets            174,337   173,064   169,582   166,503    152,234
Average deposits          145,949   146,124   145,995   143,346    129,932
Average shareholders'
 equity                    12,993    12,594    12,241    11,896     11,637

Return on average assets     0.64%     0.59%     0.61%     0.66%      0.41%
Return on average equity     8.64%     8.05%     8.45%     9.20%      5.43%
Average loans to deposits   83.35%    83.11%    80.91%    81.25%     83.49%
Net interest margin
 - tax equivalent            4.17%     4.00%     4.03%     3.90%      3.75%

Nonperforming loans
 - period end            $      -   $   256   $    53   $     -    $     -
Other real estate owned
 - period end                   -         -         -         -          -
Loans - period end        123,331   120,141   121,009   115,930    111,407
Allowance for loan losses
 - period end               1,893     1,812     1,758     1,724      1,653
Net charge-offs
(recoveries) - quarterly     (121)      (14)      (33)      (31)       (19)

Allowance to loans           1.53%     1.51%     1.45%     1.49%      1.48%
Allowance to
 nonperforming loans          N/A       708%     3317%      N/A        N/A
Nonperforming loans to
 total loans                 0.00%     0.21%     0.04%     0.00%      0.00%
Net charge-offs to loans
 - annualized               -0.40%    -0.05%    -0.11%    -0.11%     -0.07%

Contact Information

  • Contacts:

    Michael K. Johnston
    President and CEO
    208-472-4702

    Mary E. Brimson
    SVP Shareholder Relations
    208-472-4705

    Don D. Madsen
    EVP and CFO
    208-947-1880