COEUR D'ALENE, Idaho, Aug. 6, 2009 (GLOBE NEWSWIRE) -- Jack W. Gustavel, Chairman and Chief Executive Officer of Idaho Independent Bank ("IIB" or the "Bank") (OTCBB:IIBK), announced IIB's consolidated unaudited financial results for the second quarter and six months ended June 30, 2009.
Mr. Gustavel reported that IIB's net income for the quarter ended June 30, 2009, was $202,000, or $0.03 per diluted share, compared to net income of $936,000, or $0.14 per diluted share, for the same period a year ago. An increase in IIB's provision for loan losses contributed to a net loss of $2.7 million, or a loss of $0.43 per diluted share, for the six months ended June 30, 2009, compared to net income of $3.0 million, or $0.46 per diluted share, for the same six-month 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 six months ended June 30, 2009, was primarily due to the ongoing effects of the deterioration of the real estate markets within the communities the Bank serves as well as the downturn in the local and national economies. Operating results for the quarter ended June 30, 2009, were profitable even with increased provisioning for loan losses and show a positive trend from the first quarter. While we remain well positioned to benefit when the economy recovers, it is reasonable to expect higher than normal levels of loan loss provisions if the economic environment remains distressed or worsens. IIB is committed to building on its strong financial position over the short-term to help position the Bank for better profitability and growth in the future. Despite the challenging economic environment, IIB's Total Risk-Based Capital Ratio at June 30, 2009, increased to 14.45%."
IIB's total assets as of June 30, 2009, decreased $57.0 million, or 9.6%, to $537.8 million from $594.8 million at June 30, 2008. Total loans, including loans held-for-sale, at June 30, 2009, decreased $57.5 million, or 11.5%, to $440.6 million from $498.1 million at June 30, 2008. Total deposits and customer repurchase agreements decreased $38.2 million, or 7.9%, to $446.5 million at June 30, 2009, compared to $484.7 million at June 30, 2008.
As of June 30, 2009, the allowance for loan losses account totaled $18.0 million, or 4.12% of total loans, excluding loans held-for-sale. Non-performing assets totaled $31.2 million, or 5.80% of total assets, at June 30, 2009, compared to $8.2 million, or 1.38% of total assets at June 30, 2008. Non-performing assets at June 30, 2009, included $24.0 million in non-performing loans and $7.2 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 205 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 Litigation 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: continued declines or worsening in regional and 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)
INCOME STATEMENT Three Months Ended Six Months Ended
June 30, June 30,
------------------------ ------------------------
2009 2008 2009 2008
---------- ---------- ---------- ----------
Net interest income $ 6,681 $ 7,480 $ 13,356 $ 15,516
Provision for loan
losses 2,325 1,950 9,175 2,250
---------- ---------- ---------- ----------
Net interest margin 4,356 5,530 4,181 13,266
Noninterest income 1,519 1,261 2,728 2,502
Noninterest expense 5,550 5,257 11,232 10,793
---------- ---------- ---------- ----------
Net income (loss)
before taxes 325 1,534 (4,323) 4,975
Income taxes 123 598 (1,643) 1,940
---------- ---------- ---------- ----------
Net income (loss) $ 202 $ 936 $ (2,680) $ 3,035
========== ========== ========== ==========
Earnings (loss) per
share:
Basic(1) $ 0.03 $ 0.15 $ (0.43) $ 0.49
Diluted(1) $ 0.03 $ 0.14 $ (0.43) $ 0.46
BALANCE SHEET June 30, June 30,
2009 2008
---------- ----------
Loans held for sale $ 3,354 $ 4,670
Loans receivable 437,246 493,389
---------- ----------
Gross loans 440,600 498,059
Allowance for loan
losses 18,010 10,057
Total assets 537,776 594,808
Deposits 418,463 447,049
Customer repurchase
agreements 28,085 37,650
---------- ----------
Total deposits and
repurchase
agreements 446,548 484,699
Stockholders' equity 65,660 69,536
PER SHARE DATA
Common shares
outstanding(1) 6,307,746 6,212,753
Book value per
share(1) $ 10.41 $ 11.19
CAPITAL RATIOS
Tier 1 capital (to
average assets) 12.02% 11.48%
Tier 1 capital
(to risk-weighted
assets) 13.17% 12.28%
Total risk-based
capital(to risk-
weighted assets) 14.45% 13.54%
PERFORMANCE RATIOS Three Months Ended Six Months Ended
(annualized) June 30, June 30,
------------------------ ------------------------
2009 2008 2009 2008
---------- ---------- ---------- ----------
Return on average
assets 0.15% 0.62% -0.96% 1.00%
Return on average
equity 1.25% 5.40% -8.16% 8.85%
Efficiency ratio 67.68% 60.14% 69.83% 59.90%
Net interest margin 5.34% 5.33% 5.25% 5.50%
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(1) Prior period amounts have been restated to reflect the 5% share
dividend in December 2008.