SOURCE: Idaho First Bank

September 23, 2010 17:03 ET

Idaho First Bank Enters Into Agreements to Sell up to $6.9 Million of Common Stock in Private Placements

MCCALL, ID--(Marketwire - September 23, 2010) -  Today Idaho First Bank (OTCBB: IDFB) reported that it has entered into Securities Purchase Agreements ("Agreements") with certain directors, executive officers, and a founding director/shareholder for the purchase of $1.2 million of the Bank's common stock. Along with these written commitments the Bank is negotiating additional Agreements of $1.0 million. The Bank expects these additional Agreements will be finalized by September 27th. The private placement of stock is expected to increase capital by a minimum of $5.46 million in new capital at a price of $.42 per share. Upon completion of the sale of common stock the Bank anticipates achieving the capital level required under the Consent Order with the State of Idaho's Department of Finance ("IDF") and the Federal Deposit Insurance Corporation ("FDIC"). Management believes the amount of stock purchased, and which is committed to be purchased pursuant to the Agreements, will be sufficient to meet the terms of the Supervisory Prompt Corrective Action Directive which was issued by the FDIC on August 20, 2010.

"We are encouraged that 100 percent of our directors and executive officers have chosen to re-invest additional capital into the Bank. We also are pleased with the stock purchase by a founding director/shareholder. These individuals have a high level of commitment to McCall and our surrounding area," said Greg Lovell, President and CEO of the Bank. The additional capital will be used to support continuing operations and the lending and deposit activity of the Bank. Jerry Jutting, McCall Area President and the Bank's Chief Credit Officer, said, "We continue to seek well-qualified loan applicants thereby earning a return for our depositor's money: the funding source for our local loans. We help our community's economics by smart investing of our local deposit base." Dan Krahn, Bank Director, observed, "We are enthusiastic as we look to the future. Our deposit base has grown during the year as our depositors continue to have confidence in our Bank."

"We are pleased to see the Bank attract new capital and continue to serve its community," stated Gavin Gee, Director, Idaho Department of Finance. Director Gee further said, "As with all Idaho state chartered banks, we will continue to closely monitor the financial progress of the Bank and will work closely with its directors and management as they continue the Bank's progress."

The Agreements are subject to several closing conditions, including, among others; the completion of the private placements and receipt of aggregate proceeds of at least $5.46 million by September 30, 2010; and receipt of the necessary regulatory approvals.

Idaho First Bank is the only locally chartered and headquartered bank in McCall, Idaho. Founded in 2005 it operates a full-service community focused bank in McCall and a loan production office in Boise, Idaho.

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. These risks and uncertainties include, but are not limited to, economic conditions, the regulatory environment, loan concentrations, vendors, employees, technology, competition, and interest rates. Readers are cautioned not to place undue reliance on the forward-looking statements. Idaho First Bank has no obligation to publicly update the forward-looking statements after the date of this release. This statement is included for the express purpose of invoking PSLRA's safe harbor provisions.

Contact Information

  • Contacts:
    Greg Lovell
    President and CEO
    208-630-2001

    Don Madsen
    CFO
    208-947-0430