SOURCE: Idaho First Bank

February 01, 2016 09:48 ET

Idaho First Bank Reports 2015 Results

MCCALL, ID--(Marketwired - February 01, 2016) - Today Idaho First Bank (OTC PINK: IDFB) reported financial results for the year ended December 31, 2015. The Bank reported net income of $1,923,000 for 2015, a 12% increase from net income of $1,722,000 in the same period of 2014. Mark Miller, Chairman of the Board, commented, "We are gratified with our results. We believe in adding continued value and return to our shareholders. The Board is actively engaged with management in setting and monitoring our strategic direction and progress toward achieving our goals." 

The Bank's earnings were positively impacted by loan growth, improvement in net interest income, and tax benefits. Net interest income for 2015 was up 15% from the prior year. The improvement in net interest income was primarily due to a 16% increase in average loans. Mortgage banking income was down 9% in 2015, primarily due to fewer loan originators as we restructured to streamline and improve the long-term profitability of this important operation. The tax benefit of $1,321,000 in 2015 was the conclusion of a three-year process to recognize tax benefits from net operating losses in prior years. In 2016, the Bank will have a "normal" tax provision of approximately 40% of pre-tax income.

Non-performing assets were $1.5 million at December 31, 2015, which is a $1.3 million reduction from the balance at June 30, 2015. "While the balance was higher than the $302,000 balance at the end of the 2014, the reduction from mid-year is indicative of continuing improvement in our non-performing assets," stated Kathleen Lewis, EVP and Chief Credit Officer of the Bank. She further stated, "Credit quality is our highest priority in new business generation, particularly as we see heightened competition for loan growth in our local marketplace." In light of continued economic improvement, the allowance for loan losses was 1.28% of loans at the end of 2015, compared to 1.44% at the end of 2014. The allowance remains fully funded based upon our current methodology and industry standards. 

Shareholders' equity at December 31, 2015, was $15.6 million, an increase of $3.2 million from a year ago. Our strong performance resulted in book value per share reaching $6.66 at the end of the year, up 37 cents from a one year ago. 

"We look forward to continued growth in 2016. However, we will be challenged by the increasing cost of regulatory compliance combined with the change in our tax position. We are cautiously optimistic that our changes in structure and investments in technology will continue our progress," stated Greg Lovell, President and CEO. "We look forward to our Annual Shareholder Meeting in April and having a deeper discussion of our results."

Idaho First Bank is a state-chartered commercial bank that opened for business in October 2005. Its headquarters are located in McCall, Idaho, with two branches located in 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 year ended December 31:   2015     2014     Change  
  Net interest income $ 4,569   $ 3,956   $ 613 15 %
  Provision for loan losses   320     291     29 10 %
  Mortgage banking income   1,955     2,153     (198) -9 %
  Other noninterest income   341     304     37 12 %
  Noninterest expenses   5,943     5,490     453 8 %
    Net income before taxes   602     632     (30) -5 %
  Tax provision (benefit)   (1,321)     (1,090)     (231) -21 %
    Net income $ 1,923   $ 1,722   $ 201 12 %
                     
At December 31:   2015     2014     Change  
  Loans $ 96,102   $ 88,538   $ 7,564 9 %
  Allowance for loan losses   1,234     1,274     (40) -3 %
  Assets   122,127     109,520     12,607 12 %
  Deposits   105,050     95,691     9,359 10 %
  Stockholders' equity   15,640     12,435     3,205 26 %
                     
  Nonaccrual loans   1,157     -     1,157    
  Accruing loans more than 90 days past due   -     -     -    
  Other real estate owned   383     302     81 27 %
                     
    Total nonperforming assets   1,540     302     1,238 410 %
                     
  Book value per share   6.66     6.29     0.37 6 %
  Shares outstanding   2,348,960     1,976,355     372,605 19 %
                     
  Allowance to loans   1.28 %   1.44 %        
  Allowance to nonperforming loans   107 %   N/A          
  Nonperforming loans to total loans   1.20 %   0.00 %        
                     
Averages for the year ended December 31:   2015     2014     Change  
  Loans $ 95,209   $ 81,737   $ 13,472 16 %
  Earning assets   109,463     91,305     18,158 20 %
  Assets   119,834     100,704     19,130 19 %
  Deposits   103,955     88,188     15,767 18 %
  Stockholders' equity   14,233     10,699     3,534 33 %
                     
  Loans to deposits   92 %   93 %        
  Net interest margin   4.17 %   4.33 %        

   
Idaho First Bank  
Quarterly Financial Highlights (unaudited)  
(Dollars in thousands)  
   
Income Statement   Q4 2015     Q3 2015     Q2 2015     Q1 2015     Q4 2014  
  Net interest income $ 1,190   $ 1,185   $ 1,111   $ 1,083   $ 1,072  
  Provision for loan losses   -     150     120     50     115  
  Mortgage banking income   269     603     658     425     494  
  Other noninterest income   81     89     88     83     82  
  Noninterest expenses   1,467     1,576     1,535     1,365     1,280  
    Net income before taxes   73     151     202     176     253  
  Tax provision (benefit)   (412)     (303)     (303)     (303)     (325)  
    Net income $ 485   $ 454   $ 505   $ 479   $ 578  
                               
Period End Information   Q4 2015     Q3 2015     Q2 2015     Q1 2015     Q4 2014  
  Loans $ 96,102   $ 97,164   $ 99,571   $ 91,896   $ 88,538  
  Allowance for loan losses   1,234     1,586     1,448     1,323     1,274  
  Nonperforming loans   1,157     1,797     2,828     -     -  
  Other real estate owned   383     -     -     302     302  
  Quarterly net charge-offs   351     12     (4)     1     (3)  
                               
  Allowance to loans   1.28 %   1.63 %   1.45 %   1.44 %   1.44 %
  Allowance to nonperforming loans   107 %   88 %   51 %   N/A     N/A  
  Nonperforming loans to loans   1.20 %   1.85 %   2.84 %   0.00 %   0.00 %
                               
Average Balance Information   Q4 2015     Q3 2015     Q2 2015     Q1 2015     Q4 2014  
  Loans $ 97,346   $ 97,989   $ 96,414   $ 88,965   $ 86,603  
  Earning assets   112,047     113,871     110,038     101,735     96,666  
  Assets   122,934     124,550     120,089     111,586     106,528  
  Deposits   105,701     108,109     104,687     97,185     92,690  
  Stockholders' equity   15,309     14,918     13,691     12,982     11,994  
                                 
  Loans to deposits   92 %   91 %   92 %   92 %   93 %
  Net interest margin   4.21 %   4.13 %   4.05 %   4.32 %   4.40 %

Contact Information

  • Contacts:

    Greg Lovell
    208.630.2001

    Don Madsen
    208.947.0430