Idaho First Bank Reports Mid-Year Results

Marketwired

MCCALL, ID--(Marketwired - Jul 30, 2013) -  Today Idaho First Bank (OTCQB: IDFB) reported financial results for June 30, 2013. The Bank reported net income of $206,000 for the first half of 2013, compared to net income of $39,000 in the same period last year. The quarterly net income for the second quarter was $100,000, down slightly from first quarter income of $106,000, but significantly higher than the $16,000 of income in the second quarter of 2012.

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 %
  Noninterest expenses     2,550       1,974       576     29 %
                                 
    Net income     206       39       167     428 %
                               
At June 30:   2013     2012     Change  
  Loans   $ 72,575     $ 70,836     $ 1,739     2 %
  Allowance for loan losses     996       794       202     25 %
  Assets     87,328       80,635       6,693     8 %
  Deposits     76,101       73,477       2,624     4 %
  Stockholders' equity     6,736       4,742       1,994     42 %
                                 
  Nonaccrual loans     1,104       1,182       (78 )   -7 %
  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 %
  Shares outstanding     12,003,349       8,129,932       3,873,417     48 %
                                 
  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   $ 68,350     $ 66,112     $ 2,238     3 %
  Earning assets     78,915       75,083       3,832     5 %
  Assets     83,628       78,408       5,220     7 %
  Deposits     75,011       71,227       3,784     5 %
  Stockholders' equity     5,959       4,717       1,242     26 %
                                 
  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  
  Noninterest expenses     1,280       1,270       1,078       1,217       1,132  
                                           
    Net income     100       106       118       105       16  
                                         
Period End Information   Q2 2013     Q1 2013     Q4 2012     Q3 2012     Q2 2012  
  Loans   $ 72,575     $ 68,195     $ 72,187     $ 69,085     $ 70,836  
  Allowance for loan losses     996       934       1,114       1,108       794  
  Nonperforming loans     1,104       703       1,012       1,369       1,182  
  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   $ 68,778     $ 67,918     $ 69,745     $ 70,427     $ 67,536  
  Earning assets     77,775       80,068       79,651       79,549       76,314  
  Assets     84,070       83,181       83,104       82,962       79,672  
  Deposits     74,488       75,540       75,495       75,185       72,547  
  Stockholders' equity     6,636       5,274       4,886       4,778       4,726  
                                           
  Loans to deposits     92 %     90 %     92 %     94 %     93 %
  Net interest margin     3.99 %     3.91 %     3.94 %     4.00 %     3.77 %
Contact:

Greg Lovell
208.630.2001

Don Madsen
208.947.0430

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