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.