SOURCE: Idaho First Bank

July 26, 2012 18:57 ET

Idaho First Bank Reports 2012 Mid-Year Results

MCCALL, ID--(Marketwire - Jul 26, 2012) - Today Idaho First Bank (OTCQB: IDFB) reported financial results for the first half of 2012. The Bank reported net income of $39,000 for the first half, compared to a loss of $269,000 in the first half of 2011. Compared to the prior year, the change was attributable to a 40% increase in net interest income. This was driven by loan growth and an improving net interest margin. Net interest margin improved from 2.68% in the first half of 2011 to 3.79% in the first half of 2012. "The Board is proud of the hard work of staff and management in reaching our fourth consecutive quarter of profitability," stated Mark Miller, Chairman of the Board of Directors.

The Bank achieved a 22% increase in loan balances from the prior year. This was the result of increased calling efforts and economic growth in the Bank's market areas. Deposits showed a 7% increase during the year ended June 30, 2012. "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."

In addition to the strong loan growth, the Bank experienced good growth in its mortgage operations. This division grew revenues by 90% during the first six months of the year. Lovell said, "Our mortgage group has been a strong performer as the local market conditions have improved." 

Net income for the second quarter of 2012 was $16,000 compared to a net loss of $126,000 in the second quarter of 2011. While slightly lower than the $23,000 profit reported for first quarter 2012, the Bank believes it will see improving performance for the remainder of the year.

Nonperforming assets were $2.1 million at June 30, 2012, an increase from the prior year, but an improvement from March 31, 2012. Net charge-offs for the second quarter were at a relatively high level of $215,000. 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 June 30, 2012, or 6% of assets. Book value was 58 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.

   
   
   
Idaho First Bank  
Financial Highlights (unaudited)  
(Dollars in thousands, except per share)  
                         
For the six months ended June 30:   2012     2011     Change  
  Net interest income   $ 1,414     $ 1,007     $ 407     40 %
  Provision for loan losses     250       210       40     19 %
  Mortgage banking income     725       382       343     90 %
  Other noninterest income     124       113       11     10 %
  Noninterest expenses     1,974       1,561       413     26 %
                               
    Net income (loss)     39       (269 )     308     114 %
                               
At June 30:   2012     2011     Change  
  Loans   $ 70,836     $ 58,087     $ 12,749     22 %
  Allowance for loan losses     794       1,050       (256 )   -24 %
  Assets     80,635       76,814       3,821     5 %
  Deposits     73,477       68,889       4,588     7 %
  Stockholders' equity     4,742       4,564       178     4 %
                                 
  Nonaccrual loans     1,182       847       335     40 %
  Accruing loan more than 90 days past due     -       -       -        
  Other real estate owned     874       979       (105 )   -11 %
                               
    Total nonperforming assets     2,056       1,826       230     13 %
                               
  Book value per share     0.58       0.57       0.01     2 %
  Shares outstanding     8,129,932       7,949,932       180,000     2 %
                                 
  Allowance to loans     1.12 %     1.81 %              
  Allowance to nonperforming loans     67 %     124 %              
  Nonperforming loans to total loans     1.67 %     1.46 %              
                               
Averages for the six months ended June 30:   2012     2011     Change  
  Loans   $ 66,112     $ 53,924     $ 12,188     23 %
  Earning assets     75,083       75,877       (794 )   -1 %
  Assets     78,408       78,296       112     0 %
  Deposits     71,227       69,839       1,388     2 %
  Stockholders' equity     4,717       4,639       78     2 %
                                 
  Loans to deposits     93 %     77 %              
  Net interest margin     3.79 %     2.68 %              
                                 
                                 
                                 
Idaho First Bank  
Quarterly Financial Highlights (unaudited)  
(Dollars in thousands)  
                               
Income Statement   Q2 2012     Q1 2012     Q4 2011     Q3 2011     Q2 2011  
  Net interest income   $ 716     $ 698     $ 630     $ 627     $ 563  
  Provision for loan losses     135       115       30       10       125  
  Mortgage banking income     499       226       313       180       180  
  Other noninterest income     68       56       60       55       52  
  Noninterest expenses     1,132       842       902       797       796  
                                           
    Net income (loss)     16       23       71       55       (126 )
                                         
Period End Information   Q2 2012     Q1 2012     Q4 2011     Q3 2011     Q2 2011  
  Loans   $ 70,836     $ 66,109     $ 64,133     $ 60,895     $ 58,087  
  Allowance for loan losses     794       874       1,052       1,073       1,050  
  Nonperforming loans     1,182       1,856       1,048       833       847  
  Other real estate owned     874       887       887       656       979  
  Quarterly net charge-offs     215       293       51       (14 )     254  
                                           
                                           
  Allowance to loans     1.12 %     1.32 %     1.64 %     1.76 %     1.81 %
  Allowance to nonperforming loans     67 %     47 %     100 %     129 %     124 %
  Nonperforming loans to loans     1.67 %     2.81 %     1.63 %     1.37 %     1.46 %
                                         
Average Balance Information   Q2 2012     Q1 2012     Q4 2011     Q3 2011     Q2 2011  
  Loans   $ 67,536     $ 64,689     $ 63,221     $ 58,569     $ 54,613  
  Earning assets     76,314       73,853       72,229       75,560       73,629  
  Assets     79,672       77,144       75,007       78,188       76,158  
  Deposits     72,547       69,907       66,891       70,258       68,241  
  Stockholders' equity     4,726       4,707       4,660       4,574       4,582  
                                           
  Loans to deposits     93 %     93 %     95 %     83 %     80 %
  Net interest margin     3.77 %     3.80 %     3.46 %     3.29 %     3.07 %

Contact Information

  • Contacts:
    Greg Lovell
    208.630.2001

    Don Madsen
    208.947.0430