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.