Idaho First Bank Reports Mid-Year Results
MCCALL, ID--(Marketwired - Jul 18, 2014) - Today Idaho First Bank (OTCQB: IDFB) reported financial results for the six months ended June 30, 2014. The Bank reported net income of $640,000 for the first half of 2014, compared to net income of $206,000 in the same period in 2013. For the second quarter of 2014 net income was $443,000 compared to $197,000 in the first quarter of this year and $100,000 in the second quarter of 2013. Mark Miller, Chairman of the Board, commented, "We are seeing the economic conditions of our primary market areas improve and believe we can continue our improvement in operating results."
Year-to-date net income was favorably impacted by tax benefits, a 20% improvement in net interest income, and a reduction in provision for loan losses. Mortgage banking income year-to-date is down 30% partially a result of a drop in home refinancing. This drop is on par with results for all lenders nationwide. However, on a quarter-over-quarter basis mortgage income was steady. The 20% improvement in net interest margin was due to a 14% increase in average loans and an increase in net interest margin from 3.95% to 4.31%. "We continue to improve our core earnings for the Bank. While mortgage lending has softened, it continues to be a strong source of core earnings for us," stated Greg Lovell, President and CEO.
Nonperforming assets were only $529,000 at June 30, 2014, compared to $1.7 million at June 30 of last year. There were no nonperforming loans, a milestone in the Bank's asset quality improvement. The allowance for loan losses was 7% higher than a year ago. However, because of a 14% growth in period-end loans, the ratio of allowance to loans declined from 1.37% to 1.28%. President Lovell commented, "Our Boise branch allowed us to further increase our commercial loan and deposit business. We believe market conditions will allow us to continue to expand our base in this important market."
Shareholders' equity at June 30, 2014, was at $10.7 million, an increase of $3.9 million from a year ago. Book value per share increased to 60 cents at June 30, 2014, compared to 56 cents per share a year ago.
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 six months ended June 30: | 2014 | 2013 | Change | |||||||||||||
Net interest income | $ | 1,847 | $ | 1,545 | $ | 302 | 20 | % | ||||||||
Provision for loan losses | 86 | 220 | (134 | ) | -61 | % | ||||||||||
Mortgage banking income | 899 | 1,280 | (381 | ) | -30 | % | ||||||||||
Other noninterest income | 143 | 151 | (8 | ) | -5 | % | ||||||||||
Noninterest expenses | 2,673 | 2,550 | 123 | 5 | % | |||||||||||
Net income (loss) before taxes | 130 | 206 | (76 | ) | -37 | % | ||||||||||
Tax provision (benefit) | (510 | ) | (510 | ) | ||||||||||||
Net income | 640 | 206 | 434 | 211 | % | |||||||||||
At June 30: | 2014 | 2013 | Change | |||||||||||||
Loans | $ | 82,857 | $ | 72,575 | $ | 10,282 | 14 | % | ||||||||
Allowance for loan losses | 1,061 | 996 | 65 | 7 | % | |||||||||||
Assets | 100,918 | 87,328 | 13,590 | 16 | % | |||||||||||
Deposits | 88,821 | 76,101 | 12,720 | 17 | % | |||||||||||
Stockholders' equity | 10,682 | 6,736 | 3,946 | 59 | % | |||||||||||
Nonaccrual loans | - | 1,104 | (1,104 | ) | -100 | % | ||||||||||
Accruing loans more than 90 days past due | - | - | - | |||||||||||||
Other real estate owned | 529 | 606 | (77 | ) | -13 | % | ||||||||||
Total nonperforming assets | 529 | 1,710 | (1,181 | ) | -69 | % | ||||||||||
Book value per share | 0.60 | 0.56 | 0.04 | 7 | % | |||||||||||
Shares outstanding | 17,754,116 | 12,003,349 | 5,750,767 | 48 | % | |||||||||||
Allowance to loans | 1.28 | % | 1.37 | % | ||||||||||||
Allowance to nonperforming loans | N/A | 90 | % | |||||||||||||
Nonperforming loans to total loans | 0.00 | % | 1.52 | % | ||||||||||||
Averages for the six months ended June 30: | 2014 | 2013 | Change | |||||||||||||
Loans | $ | 77,819 | $ | 68,350 | $ | 9,469 | 14 | % | ||||||||
Earning assets | 86,480 | 78,915 | 7,565 | 10 | % | |||||||||||
Assets | 95,610 | 83,628 | 11,982 | 14 | % | |||||||||||
Deposits | 84,336 | 75,011 | 9,325 | 12 | % | |||||||||||
Stockholders' equity | 9,766 | 5,959 | 3,807 | 64 | % | |||||||||||
Loans to deposits | 92 | % | 91 | % | ||||||||||||
Net interest margin | 4.31 | % | 3.95 | % | ||||||||||||
Idaho First Bank | ||||||||||||||||||||||
Quarterly Financial Highlights (unaudited) | ||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
Income Statement | Q2 2014 | Q1 2014 | Q4 2013 | Q3 2013 | Q2 2013 | |||||||||||||||||
Net interest income | $ | 969 | $ | 878 | $ | 890 | $ | 870 | $ | 774 | ||||||||||||
Provision for loan losses | 86 | - | - | 190 | 90 | |||||||||||||||||
Mortgage banking income | 618 | 281 | 484 | 769 | 622 | |||||||||||||||||
Other noninterest income | 71 | 72 | 72 | 71 | 74 | |||||||||||||||||
Noninterest expenses | 1,374 | 1,299 | 1,345 | 1,363 | 1,280 | |||||||||||||||||
Net income before taxes | 198 | (68 | ) | 101 | 157 | 100 | ||||||||||||||||
Tax provision (benefit) | (245 | ) | (265 | ) | (752 | ) | - | - | ||||||||||||||
Net income | 443 | 197 | 853 | 157 | 100 | |||||||||||||||||
Period End Information | Q2 2014 | Q1 2014 | Q4 2013 | Q3 2013 | Q2 2013 | |||||||||||||||||
Loans | $ | 82,857 | $ | 78,426 | $ | 74,562 | $ | 72,669 | $ | 72,575 | ||||||||||||
Allowance for loan losses | 1,061 | 983 | 1,134 | 1,167 | 996 | |||||||||||||||||
Nonperforming loans | - | 869 | 869 | 1,261 | 1,104 | |||||||||||||||||
Other real estate owned | 529 | 585 | 610 | 307 | 606 | |||||||||||||||||
Quarterly net charge-offs | 9 | 150 | 33 | 19 | 28 | |||||||||||||||||
Allowance to loans | 1.28 | % | 1.25 | % | 1.52 | % | 1.61 | % | 1.37 | % | ||||||||||||
Allowance to nonperforming loans | N/A | 113 | % | 130 | % | 93 | % | 90 | % | |||||||||||||
Nonperforming loans to loans | 0.00 | % | 1.11 | % | 1.17 | % | 1.74 | % | 1.52 | % | ||||||||||||
Average Balance Information | Q2 2014 | Q1 2014 | Q4 2013 | Q3 2013 | Q2 2013 | |||||||||||||||||
Loans | $ | 80,415 | $ | 75,194 | $ | 73,987 | $ | 72,037 | $ | 68,778 | ||||||||||||
Earning assets | 89,180 | 83,751 | 82,639 | 82,186 | 77,775 | |||||||||||||||||
Assets | 98,519 | 92,670 | 89,544 | 88,666 | 84,070 | |||||||||||||||||
Deposits | 87,162 | 81,478 | 79,335 | 79,399 | 74,488 | |||||||||||||||||
Stockholders' equity | 9,960 | 9,570 | 8,095 | 6,939 | 6,636 | |||||||||||||||||
Loans to deposits | 92 | % | 92 | % | 93 | % | 91 | % | 92 | % | ||||||||||||
Net interest margin | 4.36 | % | 4.25 | % | 4.27 | % | 4.20 | % | 3.99 | % | ||||||||||||
