SOURCE: Idaho First Bank

July 14, 2008 07:00 ET

Idaho First Bank Reports Results, Stock Offering and New Directors

MCCALL, ID--(Marketwire - July 14, 2008) - Today, Idaho First Bank (OTCBB: IDFB) reported mid-year financial results. The Bank experienced significant growth during the first half of 2008. Loans grew to $42.1 million, a 92% increase from June 30, 2007. Deposits grew by 72% during the same period to $45.7 million at June 30, 2008.

The net loss reported for the first half of 2008 was $1,055,000 compared to a loss of $549,000 in the first half of 2007. The increased loss was caused by the provision for loan losses being $475,000, compared to $33,000 last year in the first half. This major increase in the provision for loan losses was caused by the large growth in loans and the decision to charge off a $348,000 nonperforming loan in the first quarter of the year. There were no loan charge-offs in the second quarter of 2008, and the quarterly net loss for the second quarter of 2008 was $327,000, compared to the $728,000 net loss in the first quarter of 2008.

As of June 30, 2008, there was one nonperforming loan with a balance of $147,000. The Bank's credit quality is stable and oversight has been strengthened to maintain a quality loan portfolio. The Federal Reserve's significant drop in short-term interest rates has had a negative impact on the Bank's net interest margin. Net interest margin in the first half of 2008 was 4.04% compared to 4.51% in the first half of 2007.

Stockholders' equity was $5.3 million at June 30, 2008, and book value per share was $5.38. On June 27, 2008, the Bank began a stock offering to sell $6 million of common stock at $5.00 per share. For every two shares that are purchased at this price the purchaser will receive a warrant entitling them to buy one additional share at a price of $7.00 per share, at anytime before September 30, 2011. This stock offering is necessary to support the rapid growth of the Bank and to allow the Bank to achieve profitability. Offering Circulars were mailed to shareholders on July 9. Offering Circulars are available by contacting Greg Lovell or Don Madsen at the phone numbers listed below.

The Board of Directors has voted to add, subject to approval by the State of Idaho and the FDIC, two new Board members. These two potential directors agreed to purchase 300,000 shares ($1.5 million) in the stock offering, which is a significant vote of confidence in the Bank and the progress the Bank has made.

President and CEO Greg Lovell said, "One new director will be Mark Miller who is a Boise native who spends considerable time in McCall. His business background includes running his family's private equity firm. His wife Jennifer is a well-known orthopedic surgeon in Boise. Their family company has been a significant shareholder from the Bank's inception. The other new director is William Riddle of Dallas, Texas. Mr. Riddle has extensive experience in the health care industry and is a regular visitor to our area. He has substantial business investments in and a deep affection for McCall. He has been a long-time client of the Bank and provides financial expertise as well as a strong history of growing and improving businesses."


                             Idaho First Bank
                     Financial Highlights (unaudited)
                 (Dollars in thousands, except per share)


For the six months ended June 30:         2008      2007        Change
                                        --------  --------  --------------
  Net interest income                   $    897  $    660  $    237    36%
  Provision for loan losses                  475        33       442  1339%
  Mortgage banking income                     82        87        (5)   -6%
  Other noninterest income                    91        71        20    28%
  Noninterest expenses                     1,650     1,334       316    24%

    Net loss                              (1,055)     (549)     (506)  -92%

At June 30:                               2008      2007        Change
                                        --------  --------  --------------
  Loans                                 $ 42,123  $ 21,976  $ 20,147    92%
  Allowance for loan losses                  527       324       203    63%
  Assets                                  54,445    33,860    20,585    61%
  Deposits                                45,708    26,564    19,144    72%
  Stockholders' equity                     5,313     4,860       453     9%

  Nonperforming loans                        147         -       147   N/A

  Book value per share                      5.38      6.45     (1.07)  -17%
  Shares outstanding                     987,964   753,491   234,473    31%

  Allowance to loans                        1.25%     1.47%
  Allowance to nonperforming loans           359%      N/A
  Nonperforming loans to loans              0.35%     0.00%

Averages for six months ended June 30:    2008      2007        Change
                                        --------  --------  --------------
  Loans                                 $ 35,562  $ 22,144  $ 13,418    61%
  Earning assets                          44,664    29,532    15,132    51%
  Assets                                  47,132    31,465    15,667    50%
  Deposits                                38,533    28,103    10,430    37%
  Stockholders' equity                     5,378     2,970     2,408    81%

  Loans to deposits                           92%       79%
  Net interest margin                       4.04%     4.51%




                             Idaho First Bank
                Quarterly Financial Highlights (unaudited)
                 (Dollars in thousands, except per share)


                           Q2 2008   Q1 2008   Q4 2007   Q3 2007   Q2 2007
                          --------  --------  --------  --------  --------
  Net interest income     $    477  $    420  $    393  $    419  $    340
  Provision for loan
   losses                       65       410        68         8         -
  Mortgage banking income       49        33        37        17        50
  Other noninterest
   income                       48        43        51        32        37
  Noninterest expenses         836       814       829       942       625

    Net loss                  (327)     (728)     (416)     (482)     (198)

Period End Information     Q2 2008   Q1 2008   Q4 2007   Q3 2007   Q2 2007
                          --------  --------  --------  --------  --------
  Loans                   $ 42,123  $ 36,689  $ 27,123  $ 25,496  $ 21,976
  Allowance for loan
   losses                      527       462       400       332       324
  Nonperforming loans          147       147       495         -         -
  Quarterly net
   charge-offs                   -       348         -         -         -

  Allowance to loans          1.25%     1.26%     1.47%     1.30%     1.47%
  Allowance to
   nonperforming loans         359%      314%       81%      N/A       N/A
  Nonperforming loans to
   loans                      0.35%     0.40%     1.83%     0.00%     0.00%

Average Balance
  Information              Q2 2008   Q1 2008   Q4 2007   Q3 2007   Q2 2007
                          --------  --------  --------  --------  --------
  Loans                   $ 39,929  $ 31,195  $ 26,221  $ 24,327  $ 22,218
  Earning assets            48,764    40,563    35,643    35,269    29,455
  Assets                    51,281    42,984    38,048    37,592    31,444
  Deposits                  42,810    34,255    31,699    30,221    27,893
  Stockholders' equity       5,039     5,717     6,050     5,681     3,024

  Loans to deposits             93%       91%       83%       80%       80%
  Net interest margin         3.93%     4.16%     4.37%     4.71%     4.63%

Contact Information

  • Contacts:

    Greg Lovell
    President and CEO
    208-630-2001

    Don Madsen
    CFO
    208-947-0430