SOURCE: Idaho Bancorp

January 16, 2007 07:00 ET

Idaho Bancorp Reports Record Results for 2006

BOISE, ID -- (MARKET WIRE) -- January 16, 2007 -- Today Idaho Bancorp (OTCBB: IDBC) reported record net income for 2006 of $1,370,000, a 17% increase over the $1,175,000 reported in 2005. Diluted earnings of $.75 per share compared favorably to the $.65 per share reported in the prior year.

The most significant factor driving the year-to-year earnings improvement was a 24% increase in net interest income, a result of a 26% growth in the average loan portfolio and an improvement in net interest margin. Net interest margin measurably improved from 4.23% in 2005 to 4.44% in 2006.

Net income for the fourth quarter of 2006 was $392,000. This represents a new quarterly earnings record for the company topping the previous record set in the third quarter of this year. Diluted earnings per share were $.21, compared to $.18 per share in the same quarter last year.

Credit quality continues to be excellent. There were no nonperforming assets at December 31, 2006. Also, loan recoveries exceeded loan charge-offs by $44,000 for 2006, the fourth consecutive year with net loan recoveries. Due to rapid growth of the loan portfolio, the 2006 provision for loan losses totaled $360,000 compared to only $150,000 in 2005. The allowance for loan losses was 1.41% of total loans on December 31, 2006. Book value per share at December 31, 2006 was $8.73, an increase of 11% from the December 31, 2005 level.

"2006 was just an outstanding year and another steppingstone in our Company's march to achieving top tier financial performance for our shareholders," said Mike Johnston, President and CEO. "Throughout the year we enjoyed strong growth in both the loan and deposit portfolios; which is truly a testament to the Lasting Impression our associates leave with our clients and prospects. This past year marks our first decade of serving the Ada County business community and we are very pleased with the strong customer support that we enjoy in the Treasure Valley and southwestern Idaho."

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 year ended December 31:   2006       2005     $ Change   % Change
                                ---------  ---------  ---------  ---------
  Net interest income           $   8,687  $   7,027  $   1,660         24%
  Provision for loan losses           360        150        210        140%
  Mortgage banking income             965      1,004        (39)        -4%
  Other noninterest income            492        456         36          8%
  Noninterest expense               7,779      6,682      1,097         16%
  Net income before taxes           2,005      1,655        350         21%
  Income taxes                        635        480        155         32%
  Net income                        1,370      1,175        195         17%

  Earnings per share
    Basic                            0.77       0.67       0.10         15%
    Diluted                          0.75       0.65       0.10         15%

At December 31:                    2006      2005     $ Change   % Change
                                ---------  ---------  ---------  ---------
  Loans                         $ 171,188  $ 137,285  $  33,903         25%
  Allowance for loan losses         2,419      2,015        404         20%
  Assets                          219,941    187,707     32,234         17%
  Deposits                        181,589    150,930     30,659         20%
  Shareholders' equity             15,769     13,797      1,972         14%
  Nonperforming loans                   0          0          0        N/A
  Other real estate owned               0          0          0        N/A

  Book value per share               8.73       7.84       0.89         11%
  Shares of common stock
   outstanding                  1,805,772  1,760,500     45,272          3%

  Allowance to loan ratio            1.41%      1.47%
  Allowance to nonperforming
   loans                              N/A        N/A
  Nonperforming loans to total
   loans                             0.00%      0.00%

 Averages for the year ended
  December 31:                     2006       2005    $  Change  % Change
                                ---------  ---------  ---------  ---------
  Loans                         $ 158,680  $ 125,668  $  33,012         26%
  Earning assets                  198,808    169,145     29,663         18%
  Assets                          210,535    180,418     30,117         17%
  Deposits                        169,613    151,746     17,867         12%
  Shareholders' equity             15,019     13,221      1,798         14%

For the year ended December 31:
  Return on average assets           0.65%      0.65%
  Return on average equity           9.12%      8.89%
  Average loans to deposits         93.55%     82.81%
  Net interest margin - tax
   equivalent                        4.44%      4.23%
  Net loan charge-offs
   (recoveries)                       (44)      (108)
  Net charge-offs (recoveries)
   to loans                         -0.03%     -0.09%



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

                               2006 Q4  2006 Q3  2006 Q2  2006 Q1  2005 Q4
                               -------  -------  -------  -------  -------
Net interest income            $ 2,297  $ 2,288  $ 2,185  $ 1,917  $ 1,970
Provision for loan losses            0      140      160       60      130
Mortgage banking income            233      231      226      275      227
Other noninterest income           130      138      117      107      117
Noninterest expense              2,077    1,978    1,876    1,848    1,774
Net income before taxes            583      539      492      391      410
Income taxes                       191      177      166      101       85
Net income                         392      362      326      290      325

Earnings per share
  Basic                           0.22     0.20     0.18     0.16     0.19
  Diluted                         0.21     0.20     0.18     0.16     0.18

Average loans                  168,428  165,755  158,930  141,232  131,739
Average earning assets         210,018  204,802  198,582  181,451  176,950
Average assets                 221,942  216,575  210,649  192,582  188,314
Average deposits               182,953  176,920  175,582  150,908  156,307
Average shareholders' equity    15,714   15,282   14,931   14,301   13,789

Return on average assets          0.70%    0.66%    0.62%    0.61%    0.68%
Return on average equity          9.90%    9.40%    8.76%    8.22%    9.35%
Average loans to deposits        92.06%   93.69%   90.52%   93.59%   84.28%
Net interest margin - tax
 equivalent                       4.40%    4.50%    4.48%    4.37%    4.49%

Nonperforming loans - period
 end                           $     -  $     -  $     -  $     -  $     -
Other real estate owned -
 period end                          -        -        -        -        -
Loans - period end             171,188  172,623  161,058  149,149  137,285
Allowance for loan losses -
 period end                      2,419    2,413    2,258    2,087    2,015
Net charge-offs (recoveries) -
 quarterly                          (6)     (15)     (12)     (11)      48

Allowance to loans                1.41%    1.40%    1.40%    1.40%    1.47%
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%   -0.04%   -0.03%   -0.03%    0.14%

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