COEUR D'ALENE, Idaho, Feb. 11, 2009 (GLOBE NEWSWIRE) -- Jack W. Gustavel, Chairman and Chief Executive Officer of Idaho Independent Bank ("IIB") (OTCBB:IIBK), announced IIB's consolidated unaudited financial results for the year and fourth quarter ended December 31, 2008.
Mr. Gustavel reported that IIB's net income for the year ended December 31, 2008, was $1.0 million, or $0.16 per diluted share, compared to $11.1 million, or $1.65 per diluted share, for the year ended December 31, 2007. For the quarter ended December 31, 2008, IIB had a net loss of $3.7 million, or a loss of $0.59 per diluted share, compared to net income of $2.7 million, or $0.41 per diluted share, for the same period a year ago. Prior period earnings per share have been restated to reflect the 5% share dividend distributed to shareholders in December 2008.
Chairman Gustavel stated, "The decrease in earnings for the quarter and year ended December 31, 2008, was primarily due to the effects of a continuing deterioration of the real estate markets within the communities the Bank serves and the unprecedented turmoil in the financial markets and national economy during 2008. We added $9.0 million to our loan loss reserve during the fourth quarter to help address what appears to be the most severe downturn in the economy in my career of over 40 years in banking."
IIB remains "well-capitalized." Nonetheless, IIB's Board of Directors (the "Board") evaluated the terms of the U.S. Department of the Treasury's Capital Purchase Program (the "CPP") and concluded that it would not be in IIB's best interest to apply for an allocation of those funds. After careful consideration, the Board determined that the cost of this capital, together with the restrictions and uncertainties of the CPP, outweighed the potential benefits of participation.
IIB's total assets as of December 31, 2008, decreased $37.3 million, or 6.0%, to $588.4 million from $625.7 million at December 31, 2007. Total loans, including loans held-for-sale, at December 31, 2008, decreased $53.7 million, or 10.1%, to $476.3 million from $530.0 million at December 31, 2007. Total deposits and customer repurchase agreements decreased $45.6 million, or 9.1%, to $457.6 million at December 31, 2008, compared to $503.2 million at December 31, 2007.
For the year ended December 31, 2008, IIB added $12.0 million to its allowance for loan losses, while net charge offs totaled $9.5 million. As of December 31, 2008, the allowance for loan losses account totaled $12.6 million, or 2.68% of total loans, excluding loans held-for-sale. Non-performing assets totaled $14.6 million, or 2.49% of total assets, at December 31, 2008, compared to $943,000, or 0.15% of total assets at December 31, 2007. Non-performing assets at December 31, 2008, included $7.6 million in non-performing loans and $7.0 million in other real estate owned.
About IIB
IIB was established in 1993 as an Idaho state-chartered, commercial bank and currently operates branches in Boise (3), Meridian, Coeur d'Alene, Nampa, Mountain Home, Hayden, Caldwell, Star, Eagle, and Sun Valley/Ketchum, Idaho. IIB has approximately 210 employees throughout the state of Idaho. To learn more about IIB, visit us online at www.theidahobank.com.
The Idaho Independent Bank company logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=1275
Statements contained herein concerning future performance, developments or events, expectations for earnings, growth and market forecasts, and any other guidance for future periods constitute forward-looking statements within the meaning of the Private Securities Reform Act of 1995, and as such, are subject to a number of risks and uncertainties that might cause actual results to differ materially from expectations or our stated objectives. Factors that could cause actual results to differ materially include but are not limited to: changes in regional or general economic conditions; changes in interest rates, deposit flows, demand for loans, real estate values, competition, or loan delinquency rates; changes in accounting principles, practices, policies, or guidelines; changes in legislation or regulations; changes in the regulatory environment; changes in monetary policy of the Federal Reserve Bank; changes in fiscal policy of the Federal government and the state of Idaho; changes in other economic, competitive, governmental, regulatory and technological factors affecting operations, pricing, products, and services; material unforeseen changes in the liquidity, results of operations, or financial condition of the Bank's customers; and other risks detailed from time to time in the Bank's filings with the Federal Deposit Insurance Corporation. Accordingly, these factors should be considered in evaluating forward-looking statements, and undue reliance should not be placed on such statements. The Bank undertakes no responsibility to update or revise any forward-looking statements.
Idaho Independent Bank
Financial Highlights (unaudited)
(dollars in thousands, except share data)
Three Months Ended Year Ended
INCOME STATEMENT December 31, December 31,
-------------------- --------------------
2008 2007 2008 2007
--------- --------- --------- ---------
Net interest income $ 6,860 $ 8,764 $ 29,979 $ 35,358
Provision for loan losses 8,990 200 12,015 605
--------- --------- --------- ---------
Net interest margin (2,130) 8,564 17,964 34,753
Noninterest income 1,243 1,158 4,887 4,709
Noninterest expense 5,361 5,464 21,464 21,451
--------- --------- --------- ---------
Net income before taxes (6,248) 4,258 1,387 18,011
Income taxes (2,582) 1,513 378 6,939
--------- --------- --------- ---------
Net income (loss) $ (3,666) $ 2,745 $ 1,009 $ 11,072
========= ========= ========= =========
Earnings (loss) per share:
Basic (1) $ (0.59) $ 0.44 $ 0.16 $ 1.78
Diluted (1) $ (0.59) $ 0.41 $ 0.16 $ 1.65
BALANCE SHEET Dec. 31, Dec. 31,
2008 2007
--------- ---------
Loans held for sale $ 4,570 $ 4,756
Loans receivable 471,711 525,210
--------- ---------
Gross loans 476,281 529,966
Allowance for loan losses 12,630 10,075
Total assets 588,449 625,693
Deposits 420,935 471,330
Customer repurchase
agreements 36,625 31,911
--------- ---------
Total deposits and
repurchase agreements 457,560 503,241
Stockholders' equity 67,386 67,184
PER SHARE DATA
Common shares
outstanding (1) 6,194,380 6,234,505
Book value per share (1) $ 10.88 $ 10.78
CAPITAL RATIOS
Tier 1 capital (to
average assets) 11.22% 10.63%
Tier 1 capital (to
risk-weighted assets) 12.50% 11.28%
Total risk-based capital
(to risk-weighted assets) 13.76% 12.54%
Three Months Ended Year Ended
PERFORMANCE RATIOS December 31, December 31,
(annualized) -------------------- --------------------
2008 2007 2008 2007
--------- --------- --------- ---------
Return on average assets -2.44% 1.73% 0.17% 1.78%
Return on average equity -20.38% 16.45% 1.44% 17.71%
Efficiency ratio 66.16% 55.07% 61.56% 53.54%
Net interest margin 5.00% 5.90% 5.39% 6.07%
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(1) Prior period amounts have been restated to reflect the 5% share
dividend in December 2008.