COEUR D'ALENE, Idaho, Nov. 2, 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 third quarter and nine months ended September 30, 2009.
Mr. Gustavel reported that an increase in IIB's provision for loan losses contributed to a net loss of $1.99 million, or a loss of $0.31 per diluted share, for the quarter ended September 30, 2009, compared to net income of $1.64 million, or $0.25 per diluted share, for the same period a year ago. IIB's net loss for the nine months ended September 30, 2009, was $4.67 million, or a loss of $0.75 per diluted share, compared to net income of $4.67 million, or $0.71 per diluted share, for the same nine-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 nine months ended September 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. While we cannot control the real estate market or the economy, we try to stay ahead of deteriorating credits and asset values by applying conservative estimates in determining our allowance for loan losses. With that in mind, we added $5.5 million to our allowance for loan losses account during the third quarter of 2009. Despite the challenging economic environment, IIB's capital ratios remain well above the threshold required to be considered "Well-Capitalized," with a Total Risk-Based Capital Ratio of 15.02% at September 30, 2009, an increase from 14.45% at June 30, 2009, and 13.63% at September 30, 2008."
IIB's total assets as of September 30, 2009, decreased $94.8 million, or 15.7%, to $509.4 million from $604.2 million at September 30, 2008. Total loans, including loans held-for-sale, at September 30, 2009, decreased $88.6 million, or 17.6%, to $414.6 million from $503.2 million at September 30, 2008. Total deposits and customer repurchase agreements decreased $49.1 million, or 10.3%, to $428.4 million at September 30, 2009, compared to $477.5 million at September 30, 2008.
As of September 30, 2009, the allowance for loan losses account totaled $18.2 million, or 4.41% of total loans, excluding loans held-for-sale. Non-performing assets totaled $22.8 million, or 4.48% of total assets, at September 30, 2009, compared to $13.3 million, or 2.21% of total assets at September 30, 2008, and $31.2 million, or 5.80% of total assets at June 30, 2009. Non-performing assets at September 30, 2009, included $19.3 million in non-performing loans and $3.5 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)
Three Months Nine Months
CONDENSED STATEMENT Ended Ended
OF OPERATIONS September 30, September 30,
---------------- ----------------
2009 2008 2009 2008
------- ------- ------- -------
Net interest income $ 6,323 $ 7,603 $19,679 $23,119
Provision for loan losses 5,510 775 14,685 3,025
------- ------- ------- -------
Net interest margin 813 6,828 4,994 20,094
Noninterest income 1,521 1,142 4,249 3,644
Noninterest expense 5,541 5,310 16,773 16,103
------- ------- ------- -------
Net income (loss) before taxes (3,207) 2,660 (7,530) 7,635
Income tax expense (benefit) (1,218) 1,020 (2,861) 2,960
------- ------- ------- -------
Net income (loss) $(1,989) $ 1,640 $(4,669) $ 4,675
======= ======= ======= =======
Earnings (loss) per share:
Basic (1) $ (0.31) $ 0.26 $ (0.75) $ 0.75
Diluted (1) $ (0.31) $ 0.25 $ (0.75) $ 0.71
SELECTED BALANCE SHEET ACCOUNTS Sept. 30, Sept. 30,
2009 2008
---------- ----------
Loans held for sale $ 2,742 $ 1,115
Loans receivable 411,894 502,112
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Gross loans 414,636 503,227
Allowance for loan losses 18,173 10,156
Total assets 509,393 604,202
Deposits 403,047 435,904
Customer repurchase agreements 25,326 41,612
---------- ----------
Total deposits and repurchase agreements 428,373 477,516
Stockholders' equity 64,084 70,961
PER SHARE DATA
Common shares outstanding (1) 6,357,112 6,194,572
Book value per share (1) $ 10.08 $ 11.46
CAPITAL RATIOS
Tier 1 capital (to average assets) 12.20% 11.85%
Tier 1 capital (to risk-weighted assets) 13.73% 12.38%
Total risk-based capital (to
risk-weighted assets) 15.02% 13.63%
Three Months Nine Months
Ended Ended
PERFORMANCE RATIOS (annualized) September 30, September 30,
---------------- ----------------
2009 2008 2009 2008
------- ------- ------- -------
Return on average assets -1.50% 1.09% -1.14% 1.03%
Return on average equity -11.96% 9.28% -9.43% 9.01%
Efficiency ratio 70.64% 60.72% 70.10% 60.17%
Net interest margin 5.20% 5.54% 5.22% 5.52%
(1) Prior period amounts have been restated to reflect the 5% share
dividend in December 2008.