COEUR D'ALENE, Idaho, April 29, 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 quarter ended March 31, 2009.
Mr. Gustavel reported that an increase in IIB's provision for loan losses contributed to a net loss of $2.9 million, or a loss of $0.47 per diluted share, for the quarter ended March 31, 2009, compared to net income of $2.1 million, or $0.32 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 ended March 31, 2009, was primarily due to the ongoing effects of the deterioration of the real estate markets within the communities the Bank serves and the downturn in the local and national economies. While we cannot control the real estate market or the economy, our goal is to proactively address what we can control in order to ensure IIB maintains its solid foundation to support future growth and profitability. With that in mind, we added $6.9 million to our allowance for loan losses account during the first quarter of 2009. All of IIB's capital ratios increased when compared to December 31, 2008, and remain above the highest regulatory capital requirement of 'Well-Capitalized' with a Total Risk-Based Capital Ratio of 13.82% at March 31, 2009. It should also be noted that this was achieved without raising additional capital, as the Bank chose not to apply for funding under the U.S. Department of the Treasury's TARP Capital Purchase Program."
IIB's total assets as of March 31, 2009, decreased $55.4 million, or 9.1%, to $555.8 million from $611.2 million at March 31, 2008. Total loans, including loans held-for-sale, at March 31, 2009, decreased $65.0 million, or 12.4%, to $459.0 million from $524.0 million at March 31, 2008. Total deposits and customer repurchase agreements decreased $71.0 million, or 14.0%, to $436.5 million at March 31, 2009, compared to $507.5 million at March 31, 2008.
As of March 31, 2009, the allowance for loan losses account totaled $18.8 million, or 4.12% of total loans, excluding loans held-for-sale. Non-performing assets totaled $30.4 million, or 5.47% of total assets, at March 31, 2009, compared to $853,000, or 0.14% of total assets at March 31, 2008. Non-performing assets at March 31, 2009, included $23.2 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 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: 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)
Three Months Ended
INCOME STATEMENT March 31,
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2009 2008
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Net interest income $ 6,675 $ 8,036
Provision for loan losses 6,850 300
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Net interest margin (175) 7,736
Noninterest income 1,209 1,241
Noninterest expense 5,682 5,536
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Net income (loss) before taxes (4,648) 3,441
Income taxes (1,766) 1,342
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Net income (loss) $ (2,882) $ 2,099
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Earnings (loss) per share:
Basic (1) $ (0.47) $ 0.34
Diluted (1) $ (0.47) $ 0.32
BALANCE SHEET March 31, March 31,
2009 2008
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Loans held for sale $ 3,492 $ 6,288
Loans receivable 455,491 517,736
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Gross loans 458,983 524,024
Allowance for loan losses 18,779 10,269
Total assets 555,836 611,245
Deposits 410,796 473,160
Customer repurchase agreements 25,750 34,367
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Total deposits and repurchase agreements 436,546 507,527
Stockholders' equity 64,565 69,107
PER SHARE DATA
Common shares outstanding (1) 6,194,380 6,228,019
Book value per share (1) $ 10.42 $ 11.10
CAPITAL RATIOS
Tier 1 capital (to average assets) 11.25% 11.27%
Tier 1 capital (to risk-weighted assets) 12.54% 11.85%
Total risk-based capital (to risk-weighted assets) 13.82% 13.10%
Three Months Ended
PERFORMANCE RATIOS (annualized) March 31,
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2009 2008
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Return on average assets -2.04% 1.38%
Return on average equity -17.29% 12.37%
Efficiency ratio 72.07% 59.67%
Net interest margin 5.15% 5.65%
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(1) Prior period amounts have been restated to reflect the 5% share
dividend in December 2008