Idaho First Bank Reports Mid-Year Results

MCCALL, ID--(Marketwired - July 26, 2016) - Today Idaho First Bank (OTC PINK: IDFB) reported improved financial results for the second quarter of 2016, with net income of $42,000, as a result of stronger loan growth and secondary residential real estate production. "We are encouraged that our efforts to add key personnel, realign calling efforts, and upgrade our compliance management system, as required under Dodd-Frank, have allowed us to increase loan volume and return to profitability in the second quarter," stated President and CEO, Greg Lovell. He further commented, "We continue our efforts to grow the Bank to help offset the additional costs of regulation and to increase the Bank's franchise value."

With the improved performance during the second quarter, the Bank's year-to-date net loss was reduced to $107,000 for the first half of 2016. The primary reason for the first half loss was the provision for loan losses of $225,000 which caused a loss of $149,000 for the first quarter. Mark Miller, Chairman of the Board, commented, "The Board is pleased that the Bank showed a profit in the second quarter of this year. While the first quarter results were disappointing, the Board concurs that Management made appropriate reserves to protect the Bank against future credit losses. Management believes that the loan provision is not indicative of a general deterioration in credit quality, and the Board concurs with that assessment."

The allowance for loan losses stood at $1,516,000, or 1.35% of loans at June 30, 2016. It compares to $1,448,000, or 1.45% of loans one year earlier. While the allowance increased year-over-year, the reduction in the allowance ratio is a result of loans increasing from $99.6 million to the current balance of $112.2 million, an increase of 13%. Non-performing assets were 1.8% of loans outstanding, or $2.0 million at June 30, 2016, compared to 2.8% of loans at the same date in 2015. This represents a 28% 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 June 30, 2016, was $15.6 million, an increase of $1.0 million from a year ago. Book value per share was $6.63 at the end of the quarter, up 37 cents, an increase of 6% from one year ago.

"We have begun to see increased loan volumes and interest income from our business development efforts. We are cautiously optimistic that our continuing investments in people, markets, and technology will improve our results as we continue on in 2016," stated Greg Lovell, President and CEO. "We believe that the roll out of improved mobile banking services as well as increased marketing efforts are improving the Bank's ability to 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 two branches in 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.