Idaho First Bank Reports Quarterly Results

MCCALL, ID--(Marketwired - April 20, 2016) - Today Idaho First Bank (OTC PINK: IDFB) reported financial results for the quarter ended March 31, 2016. The Bank reported a net loss of $149,000 for the first quarter of 2016, primarily caused by a provision for loan losses of $225,000. Mark Miller, Chairman of the Board, commented, "While posting a quarterly loss is disappointing, the Board believes it positions the Bank for improved performance in the future. We believe that Management has 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."

Non-performing assets were $2.0 million at March 31, 2016, which is a $1.6 million increase from the same date in 2015. Kathleen Lewis, EVP and Chief Credit Officer of the Bank, stated, "While the increase in nonperforming assets is discouraging, it appears to be a short-lived event. Since the end of the quarter there was a significant reduction in these assets through the sale of our other real estate owned property." The allowance for loan losses was 1.56% of loans at March 31, 2016, compared to 1.44% one year earlier. The increase in the provision was necessary for anticipated loss exposure on a single loan resulting from the untimely death of the borrower.

Don Madsen, Chief Financial Officer stated, "Our balance sheet shows fundamental strength from increased capital and liquidity." Shareholders' equity at March 31, 2016, was $15.6 million, an increase of $2.1 million from a year ago. Book value per share was $6.61 at the end of the quarter, up 27 cents from a one year ago.

"We have begun to see increased loan volumes and interest income from our business development efforts. We are cautiously optimistic that organizational changes and investments in technology will improve our results as we continue on in 2016," stated Greg Lovell, President and CEO. "We believe that this quarter was one of correction and not reflective of our normal performance. 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.