COEUR D'ALENE, Idaho, Feb. 23, 2012 (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, 2011.
Mr. Gustavel reported that after posting $1.5 million of non-cash income tax expense to adjust the Bank's deferred tax asset account, IIB's net loss after tax for the quarter ended December 31, 2011, was $3.7 million, or $(0.46) per diluted share. This compares to a net loss after tax of $2.9 million, or $(0.46) per diluted share, for the same period a year ago. IIB's net loss after tax for the year ended December 31, 2011, including the non-cash tax expense, was $6.4 million, or $(0.94) per diluted share, compared to a net loss after tax of $5.7 million, or $(0.89) per diluted share, for the year ended December 31, 2010. Under accounting rules, the non-cash adjustments to IIB's deferred tax asset can be recaptured if it becomes more certain the Bank will be able to realize the tax benefit through future earnings.
"While IIB made a great deal of progress in 2011, we will continue to work on improving asset quality, maintaining cost controls, and managing growth during 2012," Mr. Gustavel said. "Starting back on September 30, 2011, in just two months, IIB raised a total of $6.0 million in new equity capital, net of offering expenses. IIB has strong capital ratios that are above the thresholds required to be considered 'Well-Capitalized' under regulatory guidelines," Mr. Gustavel added. IIB's Total Risk-Based Capital Ratio improved to 17.93% at December 31, 2011, compared to 16.85% at December 31, 2010.
IIB's total assets as of December 31, 2011, decreased $0.8 million, or less than 1.0%, to $440.8 million from $441.6 million at December 31, 2010. Total loans, including loans held-for-sale, at December 31, 2011, decreased $43.7 million, or 15.0%, to $247.4 million from $291.1 million at December 31, 2010. Total deposits and customer repurchase agreements decreased $1.1 million, or less than 1.0%, to $367.7 million at December 31, 2011, compared to $368.8 million at December 31, 2010.
As of December 31, 2011, IIB's reserve for loan losses totaled $9.5 million, or 3.9% of total loans, excluding loans held-for-sale. Mr. Gustavel stated that "Nonperforming assets decreased $5.8 million, or 13.9%, to $35.8 million at December 31, 2011, compared to $41.6 million at December 31, 2010." Nonperforming assets at December 31, 2011, included $26.8 million in nonperforming loans and $9.0 million in other real estate owned.
About IIB
IIB was established in 1993 as an Idaho state-chartered, commercial bank and currently operates three branches in Boise, as well as branches in Meridian, Coeur d'Alene, Nampa, Mountain Home, Hayden, Caldwell, Star, Eagle, and Sun Valley/Ketchum, Idaho. IIB has approximately 195 employees throughout the State of Idaho. To learn more about IIB, visit us online at http://www.theidahobank.com/">www.theidahobank.com.
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Statements contained herein concerning future performance, developments or events, expectations for earnings, growth and market forecasts, and any other statements that are not historical facts are forward-looking statements that are intended to be covered by the safe harbor for "forward-looking statements" provided by 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. These risks and other factors are described in greater detail in the Bank's filings with the Federal Deposit Insurance Corporation, including, without limitation, the Item 1A Risk Factors section of the Bank's Annual Report on Form 10-K for the year ended December 31, 2010. 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 | |||
| CONDENSED STATEMENT OF OPERATIONS | December 31, | December 31, | ||
| 2011 | 2010 | 2011 | 2010 | |
| Net interest income | $ 3,483 | $ 4,329 | $ 14,599 | $ 17,879 |
| Provision for loan losses | 1,621 | 828 | 3,521 | 8,673 |
| Net interest income after provision for loan losses | 1,862 | 3,501 | 11,078 | 9,206 |
| Noninterest income | 1,173 | 1,506 | 3,870 | 4,738 |
| Noninterest expense | 5,211 | 4,900 | 19,823 | 18,429 |
| Net loss before taxes | (2,176) | 107 | (4,875) | (4,485) |
| Income tax expense | 1,500 | 3,031 | 1,500 | 1,194 |
| Net loss | $ (3,676) | $ (2,924) | $ (6,375) | $ (5,679) |
| Loss per share: | ||||
| Basic | $ (0.46) | $ (0.46) | $ (0.94) | $ (0.89) |
| Diluted | $ (0.46) | $ (0.46) | $ (0.94) | $ (0.89) |
| SELECTED BALANCE SHEET ACCOUNTS | December 31, | December 31, | ||
| 2011 | 2010 | |||
| Loans held for sale | $ 4,184 | $ 3,905 | ||
| Loans receivable | 243,199 | 287,237 | ||
| Gross loans | 247,383 | 291,142 | ||
| Allowance for loan losses | 9,474 | 9,853 | ||
| Total assets | 440,758 | 441,557 | ||
| Deposits | 357,424 | 350,812 | ||
| Customer repurchase agreements | 10,305 | 17,947 | ||
| Total deposits and repurchase agreements | 367,729 | 368,759 | ||
| Stockholders' equity | 56,495 | 56,693 | ||
| PER SHARE DATA | ||||
| Common shares outstanding | 8,181,109 | 6,357,112 | ||
| Book value per share | $ 6.91 | $ 8.92 | ||
| CAPITAL RATIOS | ||||
| Tier 1 capital (to average assets) | 12.42% | 11.76% | ||
| Tier 1 capital (to risk-weighted assets) | 16.66% | 15.58% | ||
| Total risk-based capital (to risk-weighted assets) | 17.93% | 16.85% | ||
| Three Months Ended | Year Ended | |||
| PERFORMANCE RATIOS (annualized) | December 31, | December 31, | ||
| 2011 | 2010 | 2011 | 2010 | |
| Return on average assets | -3.20% | -2.44% | -1.42% | -1.17% |
| Return on average equity | -24.58% | -19.39% | -11.26% | -9.21% |
| Efficiency ratio | 111.92% | 83.98% | 107.33% | 81.48% |
| Net interest margin | 3.42% | 4.05% | 3.70% | 4.08% |