MCCALL, ID--(Marketwire - Mar 22, 2013) - Today Idaho First Bank (OTCQB: IDFB) reported that the Board of Directors has authorized the conversion of stock subscription agreements to capital stock of the Bank. This action resulted in the issuance of $1.3 million of new stock. This transaction increases the equity of the Bank to $6.3 million.
Mr. Mark Miller, Chairman of the Board, stated, "We are extremely proud of the progress the Bank has made toward our goals, resulting in a stronger bank." The new capital represents a major additional investment by the current Board of Directors, Management, and current Shareholders. Chairman Miller noted, "The Board and Senior Management had significant participation in this offering and their investment represents 65% of the amount converted."
The Bank plans to raise additional capital from "Accredited Investors" per the terms of its Confidential Offering Document through the remainder of 2013 or until the terms of the Offering have been filled. "The goal is to increase capital to support growth and to meet all terms of our regulatory agreements," stated Mr. Greg Lovell, President and Chief Executive Officer. He further stated, "We are working with other investors and believe we will be successful in attracting additional capital."
The Bank recently announced its first annual profit for the year ending December 31, 2012. "The Board is proud of the hard work of staff and management in reaching our first year of profitability and a record quarterly income," stated Chairman Miller. "Our region is experiencing improving economic conditions. Our Boise lending office is having increased loan demand while market stabilization appears to have been achieved within Valley County," stated Jerry Jutting, Senior Vice President and Chief Credit Officer.
Nonperforming assets have decreased 5% at December 31, 2012, from the prior year and are now $1.8 million. The allowance for loan losses was 1.54% of loans at December 31 and 110% of nonperforming loans. 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."
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.