MCCALL, ID--(Marketwire - October 30, 2008) - Today Idaho First Bank (
The net loss reported for the nine months ended September 30, 2008, was $1,404,000 compared to a loss of $1,031,000 in the first nine months of 2007. The increased loss was caused by the year-to-date provision for loan losses being $650,000, compared to $41,000 in the same period last year. This major increase in the provision for loan losses was caused by the large growth in loans, charge-offs of $353,000 and the decision to increase the allowance from 1.30% of loans to 1.52%. The increased allowance is prudent considering the economic challenges both locally and nationally. As of September 30, 2008, nonperforming loans increased to $428,000, or .93% of loans.
The third quarter loss of $349,000 was slightly higher than the loss of $327,000 in the second quarter of 2008, but compares favorable with the loss of $482,000 in the third quarter of 2007. The Federal Reserve's significant lowering of short-term interest rates has had a negative impact on the Bank's net interest margin. Net interest margin has fallen from 4.71% in the third quarter of 2007 to 3.81% in the third quarter of 2008.
Stockholders' equity was $6.0 million at September 30, 2008, and book value per share was $5.04. The stock offering that began on June 27, 2008, has resulted in new capital of approximately $1.3 million. The stock offering was extended by the Board of Directors to December 4, 2008.
The Bank intends to apply for approximately $1.5 million of capital from the US Treasury under the recently announced TARP Capital Purchase Program. In order to issue preferred stock to the US Treasury, the Bank's shareholders will be required to approve a change to the Articles of Incorporation. Currently the Bank is only authorized to issue common stock.
The Board of Directors has voted to add, subject to approval by the State of Idaho and the FDIC, a new director, Daniel Neef. Mr. Neef is a Boise native and is actively involved in the community. Mr. Neef has a Juris Doctor degree and is currently an officer of Neef Creative Ventures, which has ownership in many construction related companies.
Idaho First Bank
Financial Highlights (unaudited)
(Dollars in thousands, except per share)
For the nine months ended
September 30: 2008 2007 Change
--------- --------- --------------------
Net interest income $ 1,440 $ 1,079 $ 361 33%
Provision for loan losses 650 41 609 1485%
Mortgage banking income 140 104 36 35%
Other noninterest income 156 103 53 51%
Noninterest expenses 2,490 2,276 214 9%
Net loss (1,404) (1,031) (373) -36%
At September 30: 2008 2007 Change
--------- --------- --------------------
Loans $ 45,833 $ 25,496 $ 20,337 80%
Allowance for loan losses 697 332 365 110%
Assets 58,381 37,457 20,924 56%
Deposits 48,968 31,027 17,941 58%
Stockholders' equity 5,951 6,113 (162) -3%
Nonperforming loans 428 - 428
Book value per share 5.04 6.80 (1.76) -26%
Shares outstanding 1,179,864 898,887 280,977 31%
Allowance to loans 1.52% 1.30%
Allowance to nonperforming
loans 163% N/A
Nonperforming loans to loans 0.93% 0.00%
Averages for nine months ended
September 30: 2008 2007 Change
--------- --------- --------------------
Loans $ 38,068 $ 22,880 $ 15,188 66%
Earning assets 48,724 31,465 17,259 55%
Assets 51,315 33,530 17,785 53%
Deposits 42,462 28,817 13,645 47%
Stockholders' equity 5,457 3,883 1,574 41%
Loans to deposits 90% 79%
Net interest margin 3.95% 4.58%
Idaho First Bank
Quarterly Financial Highlights (unaudited)
(Dollars in thousands)
Q3 2008 Q2 2008 Q1 2008 Q4 2007 Q3 2007
-------- -------- -------- -------- --------
Net interest income $ 543 $ 477 $ 420 $ 393 $ 419
Provision for loan
losses 175 65 410 68 8
Mortgage banking income 58 49 33 37 17
Other noninterest income 65 48 43 51 32
Noninterest expenses 840 836 814 829 942
Net loss (349) (327) (728) (416) (482)
Period End Information Q3 2008 Q2 2008 Q1 2008 Q4 2007 Q3 2007
-------- -------- -------- -------- --------
Loans $ 45,833 $ 42,123 $ 36,689 $ 27,123 $ 25,496
Allowance for loan
losses 697 527 462 400 332
Nonperforming loans 428 147 147 495 -
Quarterly net
charge-offs 5 - 348 - -
Allowance to loans 1.52% 1.25% 1.26% 1.47% 1.30%
Allowance to
nonperforming loans 163% 359% 314% 81% N/A
Nonperforming loans to
loans 0.93% 0.35% 0.40% 1.83% 0.00%
Average Balance
Information Q3 2008 Q2 2008 Q1 2008 Q4 2007 Q3 2007
-------- -------- -------- -------- --------
Loans $ 43,025 $ 39,929 $ 31,195 $ 26,221 $ 24,327
Earning assets 56,757 48,764 40,563 35,643 35,269
Assets 59,588 51,281 42,984 38,048 37,592
Deposits 50,236 42,810 34,255 31,699 30,221
Stockholders' equity 5,615 5,039 5,717 6,050 5,681
Loans to deposits 86% 93% 91% 83% 80%
Net interest margin 3.81% 3.93% 4.16% 4.37% 4.71%
Contact Information: Contacts: Greg Lovell President and CEO 208-630-2001 Don Madsen CFO 208-947-0430