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Idaho First Bank Reports Year-End Results and Continued Quarterly Income


January 26, 2012 - Mccall, ID

Today Idaho First Bank (OTCQB: IDFB) (OTCBB: IDFB) reported financial results for 2011. Continuing the improving quarterly trends, the Bank reported net income of $71,000 for the fourth quarter. The net income for the fourth quarter of 2011 compares favorably to the net loss of $391,000 in the fourth quarter of 2010. The quarterly income was attributable to increased net interest income from loan growth, reduced provision for credit losses and a record quarter for the Bank's mortgage operation. "The Board is proud of the hard work of staff and management in reaching our second consecutive quarter of profitability," stated Mark Miller, Chairman of the Board of Directors.

For the full year of 2011, the Bank reported a loss of $143,000, significantly lower than the loss of $1,978,000 for 2010. Continuing improvement in credit portfolio performance trends resulted in a decline in the provision for loan losses. The provision for loan losses for 2011 was $250,000 compared to $1,550,000 in 2010. Other major contributors to the improving operating results were a 21% growth in loans outstanding, 30% increase in mortgage banking income and a 13% reduction in non-interest expenses.

"We are pleased to see that our focus on credit management, improving mortgage income, and close management of our non-interest expenses are resulting in profitable operations. By focusing on these areas and continuing to work closely with our clients, we believe the Bank will be able to sustain profitability," stated Greg Lovell, President of the Bank.

Nonperforming assets declined 34% from $2.9 million at December 31, 2010, to $1.9 million at December 31, 2011. Nonperforming loans decreased from 3.52% to 1.63% of total loans while coverage of our non-performing loans by the allowance climbed from 55% to 100%. Mr. Lovell commented, "We are gratified by the significant drop in nonperforming assets. We feel that the Bank has survived the worst of the economic crisis and that nonperforming assets can continue to improve." He cautioned however, "The on-going economic condition of our primary market continues under stress and could adversely affect future performance."

Stockholders' equity was $4.7 million at December 31, 2011, or 6% of assets. Book value per share was 59 cents per share.

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 year ended December 31: 2011 2010 Change
---------- ---------- ------------------
Net interest income $ 2,264 $ 2,114 $ 150 7%
Provision for loan losses 250 1,550 (1,300) -84%
Investment securities gains 321 (321) -100%
Mortgage banking income 875 671 204 30%
Other noninterest income 228 195 33 17%
Noninterest expenses 3,260 3,729 (469) -13%

Net loss (143) (1,978) 1,835 93%

At December 31: 2011 2010 Change
---------- ---------- ------------------
Loans $ 64,133 $ 53,081 $ 11,052 21%
Allowance for loan losses 1,052 1,025 27 3%
Assets 77,156 77,405 (249) 0%
Deposits 69,115 68,281 834 1%
Stockholders' equity 4,700 4,810 (110) -2%

Nonaccrual loans 1,048 1,871 (823) -44%
Accruing loan more than 90
days past due - - -
Other real estate owned 887 1,064 (177) -17%

Total nonperforming assets 1,935 2,935 (1,000) -34%

Book value per share 0.59 0.61 (0.02) -3%
Shares outstanding 7,999,932 7,926,132 73,800 1%

Allowance to loans 1.64% 1.93%
Allowance to nonperforming
loans 100% 55%
Nonperforming loans to total
loans 1.63% 3.52%

Averages for the year ended
December 31: 2011 2010 Change
---------- ---------- ------------------
Loans $ 57,438 $ 56,794 $ 644 1%
Earning assets 74,878 80,119 (5,241) -7%
Assets 77,440 82,363 (4,923) -6%
Deposits 69,202 73,751 (4,549) -6%
Stockholders' equity 4,628 3,087 1,541 50%

Loans to deposits 83% 77%
Net interest margin 3.02% 2.64%



 Idaho First Bank Quarterly Financial Highlights (unaudited) (Dollars in thousands) Income Statement Q4 2011 Q3 2011 Q2 2011 Q1 2011 Q4 2010 -------- -------- -------- -------- -------- Net interest income $ 630 $ 627 $ 563 $ 444 $ 496 Provision for loan losses 30 10 125 85 450 Investment securities gains 321 Mortgage banking income 313 180 180 202 255 Other noninterest income 60 55 52 61 46 Noninterest expenses 902 797 796 765 1,059 Net income (loss) 71 55 (126) (143) (391) Period End Information Q4 2011 Q3 2011 Q2 2011 Q1 2011 Q4 2010 -------- -------- -------- -------- -------- Loans $ 64,133 $ 60,895 $ 58,087 $ 53,976 $ 53,081 Allowance for loan losses 1,052 1,073 1,050 1,179 1,025 Nonperforming loans 1,048 833 847 2,340 1,871 Other real estate owned 887 656 979 866 1,064 Quarterly net charge- offs 51 (14) 254 (69) 498 Allowance to loans 1.64% 1.76% 1.81% 2.18% 1.93% Allowance to nonperforming loans 100% 129% 124% 50% 55% Nonperforming loans to loans 1.63% 1.37% 1.46% 4.34% 3.52% Average Balance Information Q4 2011 Q3 2011 Q2 2011 Q1 2011 Q4 2010 -------- -------- -------- -------- -------- Loans $ 63,221 $ 58,569 $ 54,613 $ 53,226 $ 56,271 Earning assets 72,229 75,560 73,629 78,150 79,035 Assets 75,007 78,188 76,158 80,457 81,720 Deposits 66,891 70,258 68,241 71,456 73,256 Stockholders' equity 4,660 4,574 4,582 4,696 3,014 Loans to deposits 95% 83% 80% 74% 77% Net interest margin 3.46% 3.29% 3.07% 2.30% 2.49%

Contacts:
Greg Lovell
208.630.2001
Don Madsen
208.947.0430

MarketWire

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