SOURCE: Idaho First Bank

August 03, 2009 16:49 ET

Idaho First Bank Reports Mid-Year Results

MCCALL, ID--(Marketwire - August 3, 2009) - Today Idaho First Bank (OTCBB: IDFB) reported financial results for the first half of 2009. The Bank continues to report significant growth. Loans grew to $58.3 million at June 30, a 38% increase from one year ago.

The net loss reported for the first half of 2009 was $778,000 compared with a loss of $1,055,000 in the first half of 2008. The provision for loan losses was $775,000 for the first six months of 2009 compared to $475,000 in the same period due to increased loan charge-offs. Helping to offset the large provision for loan losses, the bank sold investment securities and realized gains of $336,000 in the second quarter of 2009. While net interest income increased by 28%, net interest margin contracted as a result of extremely low interest rates and rates on variable rate loans falling more rapidly than deposit rates.

The year-to-year increase in noninterest expenses was partially due to significant increases in FDIC insurance assessments, including an industry-wide special assessment in the second quarter. Expenses were also high due to costs associated with a proposed capital investment. The agreement for an investment group to purchase $7.1 million of preferred stock in the Bank was signed in April, but was terminated in June as the investor group proposed changes in the agreement that were unacceptable to the Board of Directors. "We are taking steps to further reduce costs including reduction in executive compensation, staff positions, and renegotiation of contracts," stated President and CEO Greg Lovell.

The allowance for loan losses was 1.39% of total loans at the end of the quarter and was 39% of nonperforming loans at June 30, 2009. The Bank continues to be impacted by unfavorable economic conditions both nationally and locally. As of June 30, 2009, nonperforming loans increased to $2,096,000, or 3.59% of loans. In addition, the Bank had $519,000 of other real estate owned bringing total nonperforming assets to $2,615,000. "The Bank's lending staff is working diligently with our clients to identify potential problems early and to begin mitigation actions as soon as possible," stated Lovell. He further noted, "Despite these diligent efforts the economic climate will continue to be a negative impact on growth and credit quality this year."

The Bank was "well-capitalized" for regulatory purposes at June 30, 2009. The Bank is vigorously pursuing several sources and types of additional capital, with a plan to raise at least $1.5 million during the third quarter of 2009.

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 six months ended June 30:      2009       2008         Change
                                     ---------  ---------  ---------------
   Net interest income               $   1,152  $     897  $     255    28%
   Provision for loan losses               775        475        300    63%
   Investment securities gains             336                   336
   Mortgage banking income                 164         82         82   100%
   Other noninterest income                105         91         14    15%
   Noninterest expenses                  1,760      1,650        110     7%

     Net loss                             (778)    (1,055)       277    26%

At June 30:                             2009       2008        Change
                                     ---------  ---------  ---------------
   Loans                             $  58,328  $  42,123  $  16,205    38%
   Allowance for loan losses               810        527        283    54%
   Assets                               64,597     54,445     10,152    19%
   Deposits                             50,803     45,708      5,095    11%
   Stockholders' equity                  5,487      5,313        174     3%

   Nonaccrual loans                      1,261        147      1,114   758%
   Accruing loan more than 90 days
    past due                               835                   835
   Other real estate owned                 519                   519

     Total nonperforming assets          2,615        147      2,468  1679%

   Book value per share                   3.99       5.38      (1.39)  -26%
   Shares outstanding                1,376,584    987,964    388,620    39%

   Allowance to loans                     1.39%      1.25%
   Allowance to nonperforming loans         39%       359%
   Nonperforming loans to total
    loans                                 3.59%      0.35%

Averages for the six months ended
 June 30:                               2009       2008        Change
                                     ---------  ---------  ---------------
   Loans                             $  55,587  $  35,562  $  20,025    56%
   Earning assets                       64,716     44,664     20,052    45%
   Assets                               67,576     47,132     20,444    43%
   Deposits                             56,816     38,533     18,283    47%
   Stockholders' equity                  5,818      5,378        440     8%

   Loans to deposits                        98%        92%
   Net interest margin                    3.59%      4.04%





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


                               Q2 2009  Q1 2009  Q4 2008  Q3 2008  Q2 2008
                               -------  -------  -------  -------  -------
 Net interest income           $   596  $   556  $   537  $   543  $   477
 Provision for loan losses         550      225      400      175       65
 Investment securities gains       336                          9
 Mortgage banking income            99       65       21       58       49
 Other noninterest income           56       49       50       56       48
 Noninterest expenses              920      840      811      840      836

   Net loss                       (383)    (395)    (603)    (349)    (327)

Period End Information         Q2 2009  Q1 2009  Q4 2008  Q3 2008  Q2 2008
                               -------  -------  -------  -------  -------
 Loans                         $58,328  $55,394  $51,665  $45,833  $42,123
 Allowance for loan losses         810      854      741      697      527
 Nonperforming loans             2,096    1,731    1,150      428      147
 Other real estate owned           519      519      459
 Quarterly net charge-offs         595      112      356        5        -

 Allowance to loans               1.39%    1.54%    1.43%    1.52%    1.25%
 Allowance to nonperforming
  loans                             39%      49%      64%     163%     359%
 Nonperforming loans to loans     3.59%    3.12%    2.23%    0.93%    0.35%

Average Balance Information    Q2 2009  Q1 2009  Q4 2008  Q3 2008  Q2 2008
                               -------  -------  -------  -------  -------
 Loans                         $57,340  $53,814  $47,504  $43,025  $39,929
 Earning assets                 64,022   65,418   60,269   56,757   48,764
 Assets                         66,616   68,547   62,853   59,588   51,281
 Deposits                       55,563   58,083   53,441   50,236   42,810
 Stockholders' equity            5,582    6,057    5,991    5,615    5,039

 Loans to deposits                 103%      93%      89%      86%      93%
 Net interest margin              3.73%    3.45%    3.54%    3.81%    3.93%

Contact Information

  • Contacts:
    Greg Lovell
    President and CEO
    208-630-2001
    or
    Don Madsen
    CFO
    208-947-0430