Idaho Independent Bank Announces 2009 Fourth Quarter and Year-End Results

COEUR D'ALENE, Idaho, March 11, 2010 (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 fourth quarter and year ended December 31, 2009.

Mr. Gustavel reported that IIB's net loss for the quarter ended December 31, 2009, was $1.98 million, or a loss of $0.31 per diluted share, compared to a net loss of $3.67 million, or a loss of $0.59 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 $6.65 million, or a loss of $1.06 per diluted share, for the year ended December 31, 2009, compared to net income of $1.01 million, or $0.16 per diluted share, for the year ended December 31, 2008. 

Chairman Gustavel stated, "We are being diligent and methodical about putting our problem land and land development loans behind us. With that in mind, we added $20.1 million to our allowance for loan losses account during 2009.  Despite the challenging economic and financial environment, however, IIB's capital ratios remain well above the threshold required to be considered 'Well-Capitalized,' with our Total Risk-Based Capital Ratio improving to 15.39% at December 31, 2009." 

By design, IIB has been strategically reducing its balance sheet and its loan concentrations. IIB's total assets as of December 31, 2009, decreased $95.2 million, or 16.2%, to $493.2 million from $588.4 million at December 31, 2008. Total loans, including loans held-for-sale, at December 31, 2009, decreased $93.3 million, or 19.6%, to $383.0 million from $476.3 million at December 31, 2008. Total deposits and customer repurchase agreements decreased $42.3 million, or 9.2%, to $415.3 million at December 31, 2009, compared to $457.6 million at December 31, 2008. 

As of December 31, 2009, the allowance for loan losses account totaled $17.1 million, or 4.50% of total loans, excluding loans held-for-sale, compared to $12.6 million, or 2.68% of total loans, excluding loans held-for-sale, as of December 31, 2008. Non-performing assets totaled $39.4 million, or 7.99% of total assets at December 31, 2009, compared to $14.6 million, or 2.49% of total assets at December 31, 2008. Non-performing assets at December 31, 2009, included $37.1 million in non-performing loans and $2.3 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 200 employees throughout the state of Idaho.  To learn more about IIB, visit us online at http://www.theidahobank.com/">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.