SOURCE: Idaho First Bank

February 07, 2011 18:19 ET

Idaho First Bank Reports Financial Results and New Capital

MCCALL, ID--(Marketwire - February 7, 2011) - Today Idaho First Bank (OTCBB: IDFB) announced that it raised $2.7 million of new common stock in December 2010 in a private placement. With the sale of common stock the Bank has achieved the capital level required under the Supervisory Prompt Corrective Action Directive ("Directive") issued by the Federal Deposit Insurance Corporation ("FDIC") on August 20, 2010. The Directive was terminated by the FDIC on January 3, 2011.

"We are encouraged that 87% of this capital was raised from the Board of Directors, executive officers and other shareholders," said Mark Miller, Chairman of the Bank's Board of Directors. "We are pleased to see the commitment of shareholders to invest new capital into the Bank," stated Gavin Gee, Director, Idaho's Department of Finance. Director Gee further said, "As with all Idaho state chartered banks, we continue to work closely with its directors and management as they continue the Bank's progress."

The capital raise improved the capital position of the Bank to 6.2% of total assets. While this level fulfilled the requirements of the Directive, the Bank will continue with capital raising efforts with a goal of increasing the capital to asset ratio to 10%. Greg Lovell, President and Chief Executive Officer of the Bank, stated, "The Board and Management are committed to continue improve the Bank's condition as our community begins to see economic improvement."

The Bank also reported financial results for 2010. The Bank reported a loss of $1,978,000 for 2010 compared to a loss of $2,269,000 for 2009. The large loss was mostly caused by the provision for loan losses of $1,550,000 and by net losses on "other real estate owned properties" of $209,000. The Bank continues to be negatively impacted by a weak economic environment marked by high unemployment and depressed real estate values.

The Bank reported improvement in the level of nonperforming assets. They declined from $4.2 million at the end of 2009 to $2.9 million at the end of 2010, a decline of 31%. "We are aggressively working with our borrowers to address their issues and find solutions acceptable to the Bank and to our borrowers," stated Jerry Jutting, Chief Credit Officer. He further said, "We continue to look for good loans where we can build a relationship and be a part of their success."

In closing, Mr. Lovell said, "We have had difficult economic times in Valley County and as the only local bank; we have felt the same economic issues as our clients. We understand and are diligently working with them to help through this time; after all it is our home too."

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.

                             Idaho First Bank
                     Financial Highlights (unaudited)
                 (Dollars in thousands, except per share)


For the year ended December 31:      2010       2009           Change
                                   ---------  ---------  -----------------
   Net interest income             $   2,114  $   2,185  $     (71)     -3%
   Provision for loan losses           1,550      1,800       (250)    -14%
   Investment securities gains           321        336        (15)     -4%
   Mortgage banking income               671        331        340     103%
   Other noninterest income              195        208        (13)     -6%
   Noninterest expenses                3,729      3,529        200       6%

     Net loss                         (1,978)    (2,269)       291      13%

At December 31:                      2010       2009           Change
                                   ---------  ---------  -----------------
   Loans                           $  53,081  $  57,399  $  (4,318)     -8%
   Allowance for loan losses           1,025      1,313       (288)    -22%
   Assets                             77,405     74,076      3,329       4%
   Deposits                           68,281     64,539      3,742       6%
   Stockholders' equity                4,810      4,053        757      19%

   Nonaccrual loans                    1,871      2,390       (519)    -22%
   Accruing loan more than 90 days
    past due                               -        960       (960)   -100%
   Other real estate owned             1,064        824        240      29%

     Total nonperforming assets        2,935      4,174     (1,239)    -30%

   Book value per share                 0.61       2.90      (2.29)    -79%
   Shares outstanding              7,926,132  1,398,284  6,527,848     467%

   Allowance to loans                   1.93%      2.29%
   Allowance to nonperforming loans       55%        39%
   Nonperforming loans to total
    loans                               3.52%      5.84%

Averages for the year ended
 December 31:                        2010       2009           Change
                                   ---------  ---------  -----------------
   Loans                           $  56,794  $  56,980  $    (186)      0%
   Earning assets                     80,119     68,052     12,067      18%
   Assets                             82,363     70,889     11,474      16%
   Deposits                           73,751     59,819     13,932      23%
   Stockholders' equity                3,087      5,308     (2,221)    -42%

   Loans to deposits                      77%        95%
   Net interest margin                  2.64%      3.21%



                             Idaho First Bank
                Quarterly Financial Highlights (unaudited)
                          (Dollars in thousands)


                          Q4 2010   Q3 2010   Q2 2010   Q1 2010   Q4 2009
                          --------  --------  --------  --------  --------
 Net interest income      $    496  $    563  $    549  $    506  $    532
 Provision for loan
  losses                       450       100       750       250       600
 Investment securities
  gains                        321
 Mortgage banking income       255       250        98        68       108
 Other noninterest income       46        51        49        49        49
 Noninterest expenses        1,059       946       842       882       878

   Net loss                   (391)     (182)     (896)     (509)     (789)

Period End Information     Q4 2010   Q3 2010   Q2 2010   Q1 2010   Q4 2009
                          --------  --------  --------  --------  --------
 Loans                    $ 53,081  $ 57,521  $ 58,391  $ 56,922  $ 57,399
 Allowance for loan
  losses                     1,025     1,073     1,115     1,520     1,313
 Nonperforming loans         1,871     1,883     2,125     3,732     3,350
 Other real estate owned     1,064     1,243       697       784       824
 Quarterly net
  charge-offs                  498       143     1,154        43       465

 Allowance to loans           1.93%     1.87%     1.91%     2.67%     2.29%
 Allowance to
  nonperforming loans           55%       57%       52%       41%       39%
 Nonperforming loans to
  loans                       3.52%     3.27%     3.64%     6.56%     5.84%

Average Balance
 Information               Q4 2010   Q3 2010   Q2 2010   Q1 2010   Q4 2009
                          --------  --------  --------  --------  --------
 Loans                    $ 56,271  $ 57,165  $ 56,486  $ 57,260  $ 58,339
 Earning assets             79,035    82,617    80,100    78,692    74,922
 Assets                     81,720    84,774    82,038    80,885    77,481
 Deposits                   73,256    76,661    73,408    71,628    66,528
 Stockholders' equity        3,014     2,568     3,016     3,765     4,388

 Loans to deposits              77%       75%       77%       80%       88%
 Net interest margin          2.49%     2.70%     2.75%     2.61%     2.82%

Contact Information

  • Contacts:

    Greg Lovell
    209.630.2001

    Don Madsen
    208.947.0430