SOURCE: Idaho Bancorp

Idaho Bancorp

March 10, 2010 11:00 ET

Idaho Banking Company Enters Into Agreement With State and Federal Reserve

BOISE, ID--(Marketwire - March 10, 2010) - Idaho Bancorp (the "Company") (OTCBB: IDBC), the parent company of Idaho Banking Company (the "Bank") announced today that it and the Bank have entered into a Written Agreement (the "Agreement") with the Federal Reserve Bank of San Francisco and the Idaho Department of Finance. The Agreement establishes joint procedures and actions that are designed to enhance the Bank's financial strength. 

"The harsh economic times have affected many local businesses and local residents. Consequently the Bank's performance has been directly affected and we welcome the help and assistance of the State of Idaho and the Federal Reserve," said Jim Latta, President and CEO of the Bank.

Gavin Gee, Director of the Idaho Department of Finance, described a Written Agreement as actions entered into jointly by a bank and its regulators to determine the best way to address challenges it is facing. "We are pleased that the Bank has already proactively responded to many of the issues raised in the Agreement and we will be working closely with the Board of Directors and management going forward," he said.

Mr. Latta concurred that many of the actions and practices outlined in the Agreement have already been implemented. Given the Bank's financial performance over the last several quarters, management and the Board of Directors are pleased that the strong ongoing working relationships with the Bank's regulatory agencies are reflected in the Agreement. 

"The Bank was considered to be well capitalized on December 31, 2009, and we continue to work diligently to carefully manage our expenses, improve non-performing loans and make certain our customers continue to receive top quality service," said Mr. Latta. 

Pursuant to the Agreement, the Bank will submit plans addressing credit risk management and capital needs for the Bank, together with its actions to reduce classified loans and non-performing assets and improve management oversight of the Bank.

Latta also emphasized no customer deposit accounts are affected by the Agreement and all deposits of $250,000 or less are FDIC insured. The Bank also currently participates in the government program which fully guarantees all deposits in any transaction accounts earning an APY of .50% or less. Additionally, despite the pressures on financial institutions, Gee has stressed there is no safer place for Idahoans to put their money than in an insured account at a financial institution.

Latta said that that the Bank's Board of Directors is directly and completely involved with all aspects of the Company's strategy and is working hard to emerge from these tough economic circumstances stronger than ever.

This release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 ("PSLRA"). Such forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those projected, including but not limited to the following: the concentration of loans of the company's banking subsidiary, particularly with respect to commercial and residential real estate lending; a continued decline in the housing and real estate market, changes in the regulatory environment and increases in associated costs, particularly ongoing compliance expenses and resource allocation needs in response to regulatory rules and guidelines; vendor quality and efficiency; employee recruitment and retention; the company's ability to control risks associated with rapidly changing technology both from an internal perspective as well as for external providers; increased competition among financial institutions; fluctuating interest rate environments; a tightening of available credit, and similar matters. Readers are cautioned not to place undue reliance on the forward-looking statements. Idaho Bancorp undertakes no obligation to publicly revise or update the forward-looking statements to reflect events or circumstances that arise after the date of this release. This statement is included for the express purpose of invoking PSLRA's safe harbor provisions.

Contact Information

  • Contacts:
    James C. Latta
    President and CEO

    Bruce W. Barfuss
    Executive Vice President and CFO

    Mary E. Brimson
    Senior Vice President
    Shareholder Relations