SOURCE: Idaho First Bank

April 18, 2014 16:47 ET

# Idaho First Bank Reports Quarterly Results

MCCALL, ID--(Marketwired - Apr 18, 2014) - Today Idaho First Bank (OTCQB: IDFB) reported financial results for the quarter ended March 31, 2014. The Bank reported net income of $197,000 for the first quarter, compared to net income of$106,000 in the same quarter in 2013. "We achieved our eleventh straight quarter of profitability," stated Mark Miller, Chairman of the Board. He further commented, "We are seeing the economic conditions of our primary market areas improve and believe we can continue our improvement in operating results."

Net income was favorably impacted by tax benefits, a reduction in provision for loan losses and a 14% improvement in net interest income. Mortgage banking income was down 57% partially a result of a drop in home refinancing. The operating results were negatively impacted by one-time expenses relating to the opening of the Boise branch and other strategic initiatives. "We believe our mortgage operations will rebound as home purchases continue to show strength," commented President Greg Lovell. He further stated, "We are achieving improvements in the fundamentals of banking i.e., loan growth, reduced loan losses, and core deposit acquisition."

The 14% improvement in net interest margin was due to an 11% increase in average loans and an increase in net interest margin from 3.91% to 4.25%.

Nonperforming assets were $1.5 million at March 31, 2014, down slightly from December 31, 2013. The allowance for loan losses was 5% higher than a year ago. However, because of a 15% growth in period-end loans, the ratio of allowance to loans declined from 1.37% to 1.25%. Shareholders' equity at March 31 was at$9.7 million, an increase of $3.3 million from a year ago. Book value per share increased to 60 cents at March 31, 2014. Idaho First Bank is a state-chartered commercial bank that opened for business in October 2005. Its headquarters are located in McCall, Idaho, with a branch and a mortgage banking office located in Boise. This release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 ("PSLRA"). Such forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those projected. These risks and uncertainties include, but are not limited to, economic conditions, the regulatory environment, loan concentrations, vendors, employees, technology, competition, and interest rates. Readers are cautioned not to place undue reliance on the forward-looking statements. Idaho First Bank has no obligation to publicly update the forward-looking statements after the date of this release. This statement is included for the express purpose of invoking PSLRA's safe harbor provisions.  Idaho First Bank Financial Highlights (unaudited) (Dollars in thousands, except per share) For the quarter ended March 31: 2014 2013 Change Net interest income$ 878 $771$ 107 14 % Provision for loan losses - 130 (130 ) -100 % Mortgage banking income 281 658 (377 ) -57 % Other noninterest income 72 77 (5 ) -6 % Noninterest expenses 1,299 1,270 29 2 % Net income (loss) before taxes (68 ) 106 (174 ) -164 % Tax provision (benefit) (265 ) (265 ) Net income 197 106 91 86 % At March 31: 2014 2013 Change Loans $78,426$ 68,195 $10,231 15 % Allowance for loan losses 983 934 49 5 % Assets 95,710 82,460 13,250 16 % Deposits 84,654 73,694 10,960 15 % Stockholders' equity 9,693 6,382 3,311 52 % Nonaccrual loans 869 698 171 24 % Accruing loans more than 90 days past due - 5 (5 ) -100 % Other real estate owned 585 633 (48 ) -8 % Total nonperforming assets 1,454 1,336 118 9 % Book value per share 0.60 0.57 0.03 5 % Shares outstanding 16,190,546 11,277,155 4,913,391 44 % Allowance to loans 1.25 % 1.37 % Allowance to nonperforming loans 113 % 133 % Nonperforming loans to total loans 1.11 % 1.03 % Averages for the quarter ended March 31: 2014 2013 Change Loans$ 75,194 $67,918$ 7,276 11 % Earning assets 83,751 80,068 3,683 5 % Assets 92,670 83,181 9,489 11 % Deposits 81,478 75,540 5,938 8 % Stockholders' equity 9,570 5,274 4,296 81 % Loans to deposits 92 % 90 % Net interest margin 4.25 % 3.91 %
 Idaho First Bank Quarterly Financial Highlights (unaudited) (Dollars in thousands) Income Statement Q1 2014 Q4 2013 Q3 2013 Q2 2013 Q1 2013 Net interest income $878$ 890 $870$ 774 $771 Provision for loan losses - - 190 90 130 Mortgage banking income 281 484 769 622 658 Other noninterest income 72 72 71 74 77 Noninterest expenses 1,299 1,345 1,363 1,280 1,270 Net income (loss) before taxes (68 ) 101 157 100 106 Tax provision (benefit) (265 ) (752 ) - - - Net income 197 853 157 100 106 Period End Information Q1 2014 Q4 2013 Q3 2013 Q2 2013 Q1 2013 Loans$ 78,426 $74,562$ 72,669 $72,575$ 68,195 Allowance for loan losses 983 1,134 1,167 996 934 Nonperforming loans 869 869 1,261 1,104 703 Other real estate owned 585 610 307 606 633 Quarterly net charge-offs 151 33 19 28 310 Allowance to loans 1.25 % 1.52 % 1.61 % 1.37 % 1.37 % Allowance to nonperforming loans 113 % 130 % 93 % 90 % 133 % Nonperforming loans to loans 1.11 % 1.17 % 1.74 % 1.52 % 1.03 % Average Balance Information Q1 2014 Q4 2013 Q3 2013 Q2 2013 Q1 2013 Loans $75,194$ 73,987 $72,037$ 68,778 \$ 67,918 Earning assets 83,751 82,639 82,186 77,775 80,068 Assets 92,670 89,544 88,666 84,070 83,181 Deposits 81,478 79,335 79,399 74,488 75,540 Stockholders' equity 9,570 8,095 6,939 6,636 5,274 Loans to deposits 92 % 93 % 91 % 92 % 90 % Net interest margin 4.25 % 4.27 % 4.20 % 3.99 % 3.91 %

• Contacts:
Greg Lovell
208.630.2001