SOURCE: Idaho First Bank

November 01, 2016 20:25 ET

Idaho First Bank Reports 3rd Quarter Results

MCCALL, ID--(Marketwired - November 01, 2016) - Today Idaho First Bank (OTC PINK: IDFB) reported financial results for the third quarter of 2016, with a net loss of $102,000, as a result of investment in new branches and increased provisions for loan losses. "While it is disappointing to report a loss for the quarter it results from a strategic decision to invest in our brand and market. The New Meadows branch is an extension of our home market and the Eagle branch will be a key market expansion within the Treasure Valley," stated President and CEO Greg Lovell.

The Bank's year-to-date net loss was $209,000 for the first nine months of 2016. The primary reason for the loss was the provision for loan losses of $355,000. In addition, there was about $70,000 of expenses associated with two new branches. Mark Miller, Chairman of the Board, commented, "The Board is pleased with the expansion opportunities in New Meadows and Eagle. These two new branches fit with the Bank's strategic plans and will increase our franchise value. The Board continues to closely monitor the performance of the bank and believe this year's investments in people, locations, and system improvements are a key to long term value accretion."

The allowance for loan losses stood at $1,454,000, or 1.26% of loans at September 30, 2016. Non-performing assets were 1.33% of loans outstanding, or $1.5 million at September 30, 2016, compared to 1.85% of loans at the same date in 2015. This represents a 15% reduction in non-performing loans year-over-year.

Don Madsen, Chief Financial Officer, stated, "Our balance sheet shows fundamental strength from strong capital and liquidity." Shareholders' equity at September 30, 2016, was $15.6 million. Book value per share was $6.58 at the end of the quarter, up 12 cents from one year ago.

"We have begun to see increased loan volumes and interest income from our business development efforts. We believe that the uncertainties in the markets and increased competition will continue to impact our performance. We continue to work on final resolution of the three remaining problem credits and to right size our operations to show improving performance going forward into 2017," stated Greg Lovell, President and CEO. He continued, "We improved our online banking experience and early in 2017 will release improved mobility services that will increase our ability to quickly and efficiently serve our clients and gain profitable relationships."

Idaho First Bank is a state-chartered commercial bank that opened for business in October 2005. Its headquarters are located in McCall, Idaho, with branches in Boise, Eagle and New Meadows.

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 nine months ended September 30  2016   2015   Change  
 Net interest income  $3,463   $3,379   $84   2 %
 Provision for loan losses   355    320    35   11 %
 Mortgage banking income   1,594    1,686    (92 ) -5 %
 Other noninterest income   301    260    41   16 %
 Noninterest expenses   5,346    4,476    870   19 %
  Net income (loss) before taxes   (343 )  529    (872 ) -165 %
 Tax provision (benefit)   (134 )  (909 )  775   85 %
  Net income (loss)  $(209 ) $1,438   $(1,647 ) -115 %
                     
At September 30:   2016    2015    Change  
 Loans  $115,472   $97,164   $18,308   19 %
 Allowance for loan losses   1,454    1,586    (132 ) -8 %
 Assets   140,995    125,521    15,474   12 %
 Deposits   121,873    108,946    12,927   12 %
 Stockholders' equity   15,551    15,159    392   3 %
                     
 Nonaccrual loans   1,531    1,797    (266 ) -15 %
 Accruing loans more than 90 days past due   -    -           
 Other real estate owned   -    -           
                     
  Total nonperforming assets   1,531    1,797    (266 ) -15 %
                     
 Book value per share   6.58    6.46    0.12   2 %
 Shares outstanding   2,361,733    2,347,460    14,273   1 %
                     
 Allowance to loans   1.26 %  1.63 %         
 Allowance to nonperforming loans   95 %  88 %         
 Nonperforming loans to total loans   1.33 %  1.85 %         
                     
Averages for the nine months ended September 30:   2016    2015    Change  
 Loans  $103,468   $94,489   $8,979   10 %
 Earning assets   118,050    108,592    9,458   9 %
 Assets   129,349    118,789    10,560   9 %
 Deposits   110,592    103,367    7,225   7 %
 Stockholders' equity   15,632    13,871    1,761   13 %
                      
 Loans to deposits   94 %  91 %         
 Net interest margin   3.92 %  4.16 %         
                 
                 
 
Idaho First Bank
Quarterly Financial Highlights (unaudited)
(Dollars in thousands)
                
Income Statement  Q3 2016  Q2 2016  Q1 2016  Q4 2015  Q3 2015
 Net interest income  $1,206   $1,159   $1,098   $1,190   $1,185  
 Provision for loan losses   130    -    225    -    150  
 Mortgage banking income   649    535    410    269    603  
 Other noninterest income   114    100    87    81    89  
 Noninterest expenses   2,006    1,720    1,620    1,467    1,576  
  Net income (loss) before taxes   (167 )  74    (250 )  73    151  
 Tax provision (benefit)   (65 )  32    (101 )  (412 )  (303 )
  Net income (loss)  $(102 ) $42   $(149 ) $485   $454  
                           
Period End Information  Q3 2016  Q2 2016  Q1 2016  Q4 2015  Q3 2015
 Loans  $115,472   $112,206   $93,945   $96,102   $97,164  
 Allowance for loan losses   1,454    1,516    1,468    1,234    1,586  
 Nonperforming loans   1,531    2,030    1,567    1,157    1,797  
 Other real estate owned   -    -    383    383    -  
 Quarterly net charge-offs   192    (48 )  (9 )  351    12  
                            
 Allowance to loans   1.26 %  1.35 %  1.56 %  1.28 %  1.63 %
 Allowance to nonperforming loans   95 %  75 %  94 %  107 %  88 %
 Nonperforming loans to loans   1.33 %  1.81 %  1.67 %  1.20 %  1.85 %
                           
Average Balance Information  Q3 2016  Q2 2016  Q1 2016  Q4 2015  Q3 2015
 Loans  $112,166   $103,683   $94,460   $97,346   $97,989  
 Earning assets   126,494    116,762    110,803    112,047    113,871  
 Assets   137,902    128,010    122,041    122,934    124,550  
 Deposits   118,768    108,656    104,263    105,701    108,109  
 Stockholders' equity   15,620    15,586    15,689    15,309    14,918  
                            
 Loans to deposits   94 %  95 %  91 %  92 %  91 %
 Net interest margin   3.79 %  3.99 %  3.99 %  4.21 %  4.13 %
                      
                      

Contact Information

  • Contacts:
    Greg Lovell
    208.630.2001

    Don Madsen
    208.947.0430