Idaho First Bank Reports Mid-Year Results

| Source: Idaho First Bank Idaho First Bank

MCCALL, ID--(Marketwired - Jul 18, 2014) - Today Idaho First Bank (OTCQB: IDFB) reported financial results for the six months ended June 30, 2014. The Bank reported net income of $640,000 for the first half of 2014, compared to net income of $206,000 in the same period in 2013. For the second quarter of 2014 net income was $443,000 compared to $197,000 in the first quarter of this year and $100,000 in the second quarter of 2013. Mark Miller, Chairman of the Board, commented, "We are seeing the economic conditions of our primary market areas improve and believe we can continue our improvement in operating results."

Year-to-date net income was favorably impacted by tax benefits, a 20% improvement in net interest income, and a reduction in provision for loan losses. Mortgage banking income year-to-date is down 30% partially a result of a drop in home refinancing. This drop is on par with results for all lenders nationwide. However, on a quarter-over-quarter basis mortgage income was steady. The 20% improvement in net interest margin was due to a 14% increase in average loans and an increase in net interest margin from 3.95% to 4.31%. "We continue to improve our core earnings for the Bank. While mortgage lending has softened, it continues to be a strong source of core earnings for us," stated Greg Lovell, President and CEO.

Nonperforming assets were only $529,000 at June 30, 2014, compared to $1.7 million at June 30 of last year. There were no nonperforming loans, a milestone in the Bank's asset quality improvement. The allowance for loan losses was 7% higher than a year ago. However, because of a 14% growth in period-end loans, the ratio of allowance to loans declined from 1.37% to 1.28%. President Lovell commented, "Our Boise branch allowed us to further increase our commercial loan and deposit business. We believe market conditions will allow us to continue to expand our base in this important market."

Shareholders' equity at June 30, 2014, was at $10.7 million, an increase of $3.9 million from a year ago. Book value per share increased to 60 cents at June 30, 2014, compared to 56 cents per share a year ago.

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 branch and a mortgage banking office located 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.

   
Idaho First Bank  
Financial Highlights (unaudited)  
(Dollars in thousands, except per share)  
                       
For the six months ended June 30: 2014     2013     Change  
  Net interest income $ 1,847     $ 1,545     $ 302     20 %
  Provision for loan losses   86       220       (134 )   -61 %
  Mortgage banking income   899       1,280       (381 )   -30 %
  Other noninterest income   143       151       (8 )   -5 %
  Noninterest expenses   2,673       2,550       123     5 %
    Net income (loss) before taxes   130       206       (76 )   -37 %
  Tax provision (benefit)   (510 )             (510 )      
    Net income   640       206       434     211 %
                             
At June 30: 2014     2013     Change  
  Loans $ 82,857     $ 72,575     $ 10,282     14 %
  Allowance for loan losses   1,061       996       65     7 %
  Assets   100,918       87,328       13,590     16 %
  Deposits   88,821       76,101       12,720     17 %
  Stockholders' equity   10,682       6,736       3,946     59 %
                               
  Nonaccrual loans   -       1,104       (1,104 )   -100 %
  Accruing loans more than 90 days past due   -       -       -        
  Other real estate owned   529       606       (77 )   -13 %
                               
    Total nonperforming assets   529       1,710       (1,181 )   -69 %
                               
  Book value per share   0.60       0.56       0.04     7 %
  Shares outstanding   17,754,116       12,003,349       5,750,767     48 %
                               
  Allowance to loans   1.28 %     1.37 %              
  Allowance to nonperforming loans   N/A       90 %              
  Nonperforming loans to total loans   0.00 %     1.52 %              
                             
Averages for the six months ended June 30: 2014     2013     Change  
  Loans $ 77,819     $ 68,350     $ 9,469     14 %
  Earning assets   86,480       78,915       7,565     10 %
  Assets   95,610       83,628       11,982     14 %
  Deposits   84,336       75,011       9,325     12 %
  Stockholders' equity   9,766       5,959       3,807     64 %
                               
  Loans to deposits   92 %     91 %              
  Net interest margin   4.31 %     3.95 %              
                               
                               
                               
Idaho First Bank  
Quarterly Financial Highlights (unaudited)  
(Dollars in thousands)  
                               
Income Statement   Q2 2014     Q1 2014     Q4 2013     Q3 2013     Q2 2013  
  Net interest income   $ 969     $ 878     $ 890     $ 870     $ 774  
  Provision for loan losses     86       -       -       190       90  
  Mortgage banking income     618       281       484       769       622  
  Other noninterest income     71       72       72       71       74  
  Noninterest expenses     1,374       1,299       1,345       1,363       1,280  
    Net income before taxes     198       (68 )     101       157       100  
  Tax provision (benefit)     (245 )     (265 )     (752 )     -       -  
    Net income     443       197       853       157       100  
                                         
Period End Information   Q2 2014     Q1 2014     Q4 2013     Q3 2013     Q2 2013  
  Loans   $ 82,857     $ 78,426     $ 74,562     $ 72,669     $ 72,575  
  Allowance for loan losses     1,061       983       1,134       1,167       996  
  Nonperforming loans     -       869       869       1,261       1,104  
  Other real estate owned     529       585       610       307       606  
  Quarterly net charge-offs     9       150       33       19       28  
                                           
  Allowance to loans     1.28 %     1.25 %     1.52 %     1.61 %     1.37 %
  Allowance to nonperforming loans     N/A       113 %     130 %     93 %     90 %
  Nonperforming loans to loans     0.00 %     1.11 %     1.17 %     1.74 %     1.52 %
                                         
Average Balance Information   Q2 2014     Q1 2014     Q4 2013     Q3 2013     Q2 2013  
  Loans   $ 80,415     $ 75,194     $ 73,987     $ 72,037     $ 68,778  
  Earning assets     89,180       83,751       82,639       82,186       77,775  
  Assets     98,519       92,670       89,544       88,666       84,070  
  Deposits     87,162       81,478       79,335       79,399       74,488  
  Stockholders' equity     9,960       9,570       8,095       6,939       6,636  
                                           
  Loans to deposits     92 %     92 %     93 %     91 %     92 %
  Net interest margin     4.36 %     4.25 %     4.27 %     4.20 %     3.99 %
                                           
                                           
                                           

Contact Information:

Contacts:
Greg Lovell
208.630.2001

Don Madsen
208.947.0430