MCCALL, ID--(Marketwired - Jul 30, 2013) - Today Idaho First Bank (
In the first six months of 2013 the Bank issued $1.6 million of new stock, significantly improving the Bank's capital position. In additional to the new capital already raised, the Bank is continuing its private placement offering to accredited investors with a goal of a 10% capital to asset ratio. At June 30, 2013, the capital to asset ratio was 8%. "We believe with this improved performance and the additional capital we have substantially improved the status of the Bank," stated Mark Miller, Chairman of the Board.
Comparing the first half of 2013 to the first half of 2012, the Bank achieved a 9% increase in net interest income. This was driven by average loan growth of 3% and an improving net interest margin. Mortgage banking income also contributed to the improved results. Mortgage banking income was almost up 77% from last year. "The performance of the loan portfolio is having a positive impact on our earnings. Lower problem loan levels have reduced the negative drag on earnings," stated Greg Lovell President and CEO. He further said, "We continue to emphasize the purchase market in our real estate lending. This helps to soften any loss of business from a slow down in the refinance market."
During the second quarter the Bank purchased the real estate of the Bank's main office in McCall. This purchase reduced significantly the cost of occupancy going forward. "We intend to lease out excess space and, to date, have been successful in implementing that strategy," stated President Lovell. A portion of the purchase price was paid in stock further increasing the capital of the Bank.
Nonperforming assets were $1.1 million at June 30, 2013, a decrease of 7% from the prior year. The allowance for loan losses was 1.37% of loans at June 30. Chief Credit Officer Jerry Jutting said, "We believe the worst of our legacy credits are behind us now and we have been adding quality core loans to our portfolio."
Idaho First Bank is a state-chartered commercial bank that opened for business in October 2005. Its headquarters are located in McCall, Idaho, with a loan production office in downtown Boise.
This release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 ("PSLRA"). Such forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those projected. These risks and uncertainties include, but are not limited to, economic conditions, the regulatory environment, loan concentrations, vendors, employees, technology, competition, and interest rates. Readers are cautioned not to place undue reliance on the forward-looking statements. Idaho First Bank has no obligation to publicly update the forward-looking statements after the date of this release. This statement is included for the express purpose of invoking PSLRA's safe harbor provisions.
|Idaho First Bank|
|Financial Highlights (unaudited)|
|(Dollars in thousands, except per share)|
|For the six months ended June 30:||2013||2012||Change|
|Net interest income||$||1,545||$||1,414||$||131||9||%|
|Provision for loan losses||220||250||(30||)||-12||%|
|Mortgage banking income||1,280||725||555||77||%|
|Other noninterest income||151||124||27||22||%|
|At June 30:||2013||2012||Change|
|Allowance for loan losses||996||794||202||25||%|
|Accruing loans more than 90 days past due||-||-||-|
|Other real estate owned||606||874||(268||)||-31||%|
|Total nonperforming assets||1,710||2,056||(346||)||-17||%|
|Book value per share||0.56||0.58||(0.02||)||-3||%|
|Allowance to loans||1.37||%||1.12||%|
|Allowance to nonperforming loans||90||%||67||%|
|Nonperforming loans to total loans||1.52||%||1.67||%|
|Averages for the six months ended June 30:||2013||2012||Change|
|Loans to deposits||91||%||93||%|
|Net interest margin||3.95||%||3.79||%|
|Idaho First Bank|
|Quarterly Financial Highlights (unaudited)|
|(Dollars in thousands)|
|Income Statement||Q2 2013||Q1 2013||Q4 2012||Q3 2012||Q2 2012|
|Net interest income||$||774||$||771||$||788||$||799||$||716|
|Provision for loan losses||90||130||160||275||135|
|Mortgage banking income||622||658||486||727||499|
|Other noninterest income||74||77||82||71||68|
|Period End Information||Q2 2013||Q1 2013||Q4 2012||Q3 2012||Q2 2012|
|Allowance for loan losses||996||934||1,114||1,108||794|
|Other real estate owned||606||633||827||857||874|
|Quarterly net charge-offs||28||310||154||(39||)||215|
|Allowance to loans||1.37||%||1.37||%||1.54||%||1.60||%||1.12||%|
|Allowance to nonperforming loans||90||%||133||%||110||%||81||%||67||%|
|Nonperforming loans to loans||1.52||%||1.03||%||1.40||%||1.98||%||1.67||%|
|Average Balance Information||Q2 2013||Q1 2013||Q4 2012||Q3 2012||Q2 2012|
|Loans to deposits||92||%||90||%||92||%||94||%||93||%|
|Net interest margin||3.99||%||3.91||%||3.94||%||4.00||%||3.77||%|