SOURCE: Idaho Bancorp

October 10, 2006 07:00 ET

Idaho Bancorp Reports Record Results

BOISE, ID -- (MARKET WIRE) -- October 10, 2006 -- Today Idaho Bancorp (OTCBB: IDBC) reported record net income for the first nine months of 2006 of $978,000; a 15% increase over the $850,000 reported in the same period of 2005. Diluted earnings of $.53 per share compared favorably to the $.47 per share reported in the first nine months of last year.

The most significant factor driving the year-to-year earnings improvement was a 26% increase in net interest income, a result of a 26% growth in the average loan portfolio and an improvement in net interest margin. Year-to-date net interest margin measurably improved from 4.13% in 2005 to 4.45% in 2006.

Net income for the third quarter of 2006 was $362,000. This represents a new quarterly earnings record for the company; topping the previous record set in the second quarter of this year. Diluted earnings per share were $.20, compared to $.18 per share in the same quarter last year.

Credit quality continues to be excellent. There were no nonperforming assets at September 30, 2006. Also, loan recoveries exceeded loan charge-offs by $38,000 in the first nine months of 2006. Due to rapid growth of the loan portfolio, the year-to-date provision for loan losses totaled $360,000 compared to only $20,000 in the same period last year. The allowance for loan losses was 1.40% of total loans on September 30, 2006. Book value per share at September 30, 2006 was $8.47, an increase of 10% from the September 30, 2005 level.

"October 7, 2006 marked the ten year anniversary of Idaho Banking Company and our quarterly financial results truly validate the core values and commitment of each and every associate within our Company," said Mike Johnston, President and CEO. "All of our performance metrics continue to improve and I believe our dedication to delivering exceptional customer service has played a major role in the 10% increase in our number of core accounts through the end of September. On a focal point basis, both our loan and deposit growth over the same period in 2005 have simply been outstanding. Our customers continue to reward us with their faith and trust, and actively recommend this Bank to their friends. Every day our bankers strive to create a lasting impression with every client and prospective client they touch."

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 nine months ended
 September 30:                    2006       2005     $ Change   % Change
                                ---------  ---------  ---------  ---------
     Net interest income        $   6,390  $   5,057  $   1,333         26%
     Provision for loan losses        360         20        340       1700%
     Mortgage banking income          732        777        (45)        -6%
     Other noninterest income         362        339         23          7%
     Noninterest expense            5,702      4,908        794         16%
     Net income before taxes        1,422      1,245        177         14%
     Income taxes                     444        395         49         12%
     Net income                       978        850        128         15%

     Earnings per share
          Basic                      0.55       0.49       0.06         12%
          Diluted                    0.53       0.47       0.06         13%

At September 30:                  2006       2005     $  Change  % Change
                                ---------  ---------  ---------  ---------
     Loans                      $ 172,623  $ 129,921  $  42,702         33%
     Allowance for loan losses      2,413      1,934        479         25%
     Assets                       223,638    180,872     42,766         24%
     Deposits                     185,719    151,676     34,043         22%
     Shareholders' equity          15,246     13,482      1,764         13%
     Nonperforming loans                0          0          0        N/A
     Other real estate owned            0          0          0        N/A

     Book value per share            8.47       7.68       0.79         10%
     Shares of common stock
      outstanding               1,800,572  1,754,700     45,872          3%

     Allowance to loan ratio         1.40%      1.49%
     Allowance to nonperforming
      loans                           N/A        N/A
     Nonperforming loans to
      total loans                    0.00%      0.00%

Averages for the nine months
 ended September 30:              2006       2005     $  Change  % Change
                                ---------  ---------  ---------  ---------
     Loans                      $ 155,396  $ 123,623  $  31,773         26%
     Earning assets               195,030    166,514     28,516         17%
     Assets                       206,690    177,757     28,933         16%
     Deposits                     165,118    150,208     14,910         10%
     Shareholders' equity          14,784     13,029      1,755         13%

For the nine months ended
 September 30:
     Return on average assets        0.63%      0.64%
     Return on average equity        8.84%      8.72%
     Average loans to deposits      94.11%     82.30%
     Net interest margin - tax
      equivalent                     4.45%      4.13%
     Net loan charge-offs
      (recoveries)                    (38)      (156)
     Net charge-offs
      (recoveries) to loans         -0.03%     -0.17%



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


                               2006 Q3  2006 Q2  2006 Q1  2005 Q4  2005 Q3
                               -------  -------  -------  -------  -------
Net interest income            $ 2,288  $ 2,185  $ 1,917  $ 1,970  $ 1,816
Provision for loan losses          140      160       60      130       20
Mortgage banking income            231      226      275      227      367
Other noninterest income           138      117      107      117      115
Noninterest expense              1,978    1,876    1,848    1,774    1,800
Net income before taxes            539      492      391      410      478
Income taxes                       177      166      101       85      158
Net income                         362      326      290      325      320

Earnings per share
  Basic                           0.20     0.18     0.16     0.19     0.18
  Diluted                         0.20     0.18     0.16     0.18     0.18

Average loans                  165,755  158,930  141,232  131,739  127,713
Average earning assets         204,802  198,582  181,451  176,950  173,323
Average assets                 216,575  210,649  192,582  188,314  185,730
Average deposits               176,920  175,582  150,908  156,307  158,418
Average shareholders' equity    15,282   14,931   14,301   13,789   13,490

Return on average assets          0.66%    0.62%    0.61%    0.68%    0.68%
Return on average equity          9.40%    8.76%    8.22%    9.35%    9.41%
Average loans to deposits        93.69%   90.52%   93.59%   84.28%   80.62%
Net interest margin - tax
 equivalent                       4.50%    4.48%    4.37%    4.49%    4.23%

Nonperforming loans - period
 end                           $     -  $     -  $     -  $     -  $     -
Other real estate owned -
 period end                          -        -        -        -        -
Loans - period end             172,623  161,058  149,149  137,285  129,921
Allowance for loan losses -
 period end                      2,413    2,258    2,087    2,015    1,934
Net charge-offs (recoveries) -
 quarterly                         (15)     (12)     (11)      48      (21)

Allowance to loans                1.40%    1.40%    1.40%    1.47%    1.49%
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                      -0.04%   -0.03%   -0.03%    0.14%   -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