Idaho First Bank Reports 2012 First Quarter Results

MCCALL, ID--(Marketwire - Apr 11, 2012) - Today Idaho First Bank (OTCQB: IDFB) (OTCBB: IDFB) reported financial results for the first quarter of 2012. The Bank reported net income of $23,000 for the first quarter, compared to a loss of $143,000 in the first quarter of 2011. Compared to the prior year, the quarterly income was attributable to a substantial improvement in net interest income from loan growth and an improving net interest margin. Net interest margin improved from 2.30% in the first quarter of 2011 to 3.80% in the first quarter of 2012. "The Board is proud of the hard work of staff and management in reaching our third consecutive quarter of profitability," stated Mark Miller, Chairman of the Board of Directors.

The Bank achieved a 22% increase in loan balances over first quarter 2011. This was the result of increased calling efforts and economic growth in the Bank's market areas. Deposits showed a slight decrease as core deposits grew and wholesale funding declined. "Our balance sheet is shifting to higher earning assets and lower cost funding sources," stated CEO Greg Lovell. He added, "As economic conditions slowly continue to improve, we see additional loan growth and lower funding costs."

Net interest income for the first quarter increased 57% from $444,000 in the first quarter of 2011 to $698,000 for the first quarter of 2012. Quarterly net interest income increased 10.8% over the fourth quarter of 2011. Non-interest expenses increased due to changes in compensation programs as mandated by Dodd-Frank and other operating costs.

Nonperforming assets declined 14% from $3.2 million at March 31, 2011, to $2.7 million at March 31, 2012. Nonperforming assets included one loan ($1.0 million) that was over ninety days past due because of processing issues with a participating bank. This issue was resolved in early April and resulted in a substantial decrease in nonperforming assets. Adjusting for this resolution, nonperforming assets would have decreased 47% to $1.7 million and nonperforming loans to total loans would have decreased to 1.25% of loans. Net charge-offs for the first quarter increased to $293,000. However, it is typical to have significant fluctuations from quarter to quarter and this level of charge-offs is not expected to continue. Mr. Lovell commented, "We are cautiously optimistic about the improving trends in our portfolio. We continue to closely monitor the performance of our loan portfolio and aggressively take action as problems arise."

Stockholders' equity was $4.7 million at March 31, 2012, or 6% of assets. Book value per share was 59 cents per share. Idaho First Bank is a state-chartered commercial bank that opened for business in October 2005. Its headquarters are located in McCall, Idaho, with a loan production office in downtown Boise.

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.