BOISE, Idaho, Oct. 17, 2005 (PRIMEZONE) -- Today Idaho Bancorp (OTCBB:IDBC) reported record quarterly net income of $320,000 for the third quarter of 2005, an increase of 16% over the $275,000 reported in the third quarter of 2004. Diluted net income per share was $.18 for the quarter, compared to $.15 in the same quarter of last year. Earnings per share for 2004 have been restated for the 2-for-1 stock split paid in December 2004.
Earnings for the first nine months of 2005 were $850,000, an increase of 54% from the first nine months of last year and $38,000 more than the Company earned during all of 2004. Diluted earnings per share, on a year-to-date basis, increased from $.31 in 2004 to $.47 in 2005. Year-to-date return on average equity increased from 6.32% last year to 8.72% this year.
The most significant factor driving the year-to-year earnings improvement was a 26% increase in net interest income, a result of a 15% growth in the average loan portfolio and an improvement in net interest margin. Year-to-date net interest margin improved from 3.77% in 2004 to 4.13% in 2005. Net interest margin also showed a quarterly improvement from 4.17% in the second quarter of 2005 to 4.23% in the third quarter of 2005.
Credit quality continues to be excellent. There were no nonperforming assets on September 30, 2005. Also, there were no loan charge-offs in the first nine months of 2005, and recoveries of previously charged-off loans totaled $156,000. This was the seventh consecutive quarter of no net loan losses in the Bank's loan portfolio. The allowance for loan losses was 1.49% of total loans on September 30, 2005, the same as one year ago.
"2005 is shaping up to be a great year for our Bank," said Mike Johnston, President and CEO. "But the foundation for this year's performance was actually laid in 2003 and 2004. Our financial results this year represent the fruition of the cumulative effort of all the Company's employees and I'm extremely proud of each and every one of them. For the past three years every employee in this Company has been focused on transforming our Bank into a premier customer oriented institution that takes care of all of its stakeholders, clients, shareholders, employees and our community. We intend to augment our capital base before year-end through the issuance of a Trust Preferred Security, in order to fuel continued growth and possible branch expansion into Canyon County. I'm very excited and optimistic about the future prospects of this Bank."
Idaho Bancorp is the holding company of Idaho Banking Company. Idaho Banking Company, a state-chartered commercial bank and member of the Federal Reserve, was organized in 1996 and operates four branch offices, and a home loan center in Ada County.
Idaho Bancorp and Subsidiary
Consolidated Financial Highlights (unaudited)
(Dollars in thousands, except per share)
For the nine months ended September 30:
2005 2004 $ Change % Change
--------- --------- -------- --------
Net interest income $ 5,057 $ 4,002 $ 1,055 26%
Provision for loan losses 20 100 (80) -80%
Mortgage banking income 777 658 119 18%
Other noninterest income 339 284 55 19%
Noninterest expense 4,908 4,032 876 22%
Net income before taxes 1,245 812 433 53%
Income taxes 395 260 135 52%
Net income 850 552 298 54%
Net income per share
Basic 0.49 0.32 0.17 53%
Diluted 0.47 0.31 0.16 52%
At September 30: 2005 2004 $ Change % Change
--------- --------- -------- --------
Loans $ 129,921 $ 115,930 $ 13,991 12%
Allowance for loan losses 1,934 1,724 210 12%
Assets 180,872 167,955 12,917 8%
Deposits 151,676 147,253 4,423 3%
Shareholders' equity 13,482 12,073 1,409 12%
Nonperforming loans 0 0 0 N/A
Other real estate owned 0 0 0 N/A
Book value per share 7.68 7.05 0.63 9%
Shares of common
stock outstanding 1,754,700 1,711,400 43,300 3%
Allowance to loan ratio 1.49% 1.49%
Allowance to
nonperforming loans N/A N/A
Nonperforming loans to
total loans 0.00% 0.00%
Averages for the nine months
ended September 30:
2005 2004 $ Change % Change
--------- --------- -------- --------
Loans $ 123,623 $ 107,073 $ 16,550 15%
Earning assets 166,514 144,808 21,706 15%
Assets 177,757 152,694 25,063 16%
Deposits 150,208 130,113 20,095 15%
Shareholders' equity 13,029 11,674 1,355 12%
For the nine months ended
September 30:
Return on average assets 0.64% 0.48%
Return on average equity 8.72% 6.32%
Average loans to deposits 82.30% 82.29%
Net interest margin --
tax equivalent 4.13% 3.77%
Net loan charge-offs
(recoveries) (156) (83)
Net charge-offs
(recoveries) to loans -0.17% -0.10%
Idaho Bancorp and Subsidiary
Quarterly Consolidated Financial Highlights (unaudited)
(Dollars in thousands, except per share)
2005 Q3 2005 Q2 2005 Q1 2004 Q4 2004 Q3
-------- -------- -------- -------- --------
Net interest
income $ 1,816 $ 1,670 $ 1,571 $ 1,579 $ 1,504
Provision for
loan losses 20 (40) 40 0 40
Mortgage banking
income 367 240 170 239 229
Securities
gains 0 0 0 0 16
Other noninterest
income 115 116 108 120 107
Noninterest
expense 1,800 1,659 1,449 1,555 1,409
Net income
before taxes 478 407 360 383 407
Income taxes 158 127 110 123 132
Net income 320 280 250 260 275
Net income per share
Basic 0.18 0.16 0.14 0.15 0.16
Diluted 0.18 0.15 0.14 0.15 0.15
Average loans 127,713 121,643 121,443 118,120 116,470
Average earning
assets 173,323 163,741 162,358 158,557 156,182
Average assets 185,730 174,337 173,064 169,582 166,503
Average deposits 158,418 145,949 146,124 145,995 143,346
Average shareholders'
equity 13,490 12,993 12,594 12,241 11,896
Return on average
assets 0.68% 0.64% 0.59% 0.61% 0.66%
Return on average
equity 9.41% 8.64% 8.05% 8.45% 9.20%
Average loans
to deposits 80.62% 83.35% 83.11% 80.91% 81.25%
Net interest margin
-- tax
equivalent 4.23% 4.17% 4.00% 4.03% 3.90%
Nonperforming
loans -- period
end $ -- $ -- $ 256 $ 53 $ --
Other real estate
owned -- period
end -- -- -- -- --
Loans -- period
end 129,921 123,331 120,141 121,009 115,930
Allowance for
loan losses --
period end 1,934 1,893 1,812 1,758 1,724
Net charge-offs
(recoveries) --
quarterly (21) (121) (14) (33) (31)
Allowance to
loans 1.49% 1.53% 1.51% 1.45% 1.49%
Allowance to
nonperforming
loans N/A N/A 708% 3317% N/A
Nonperforming
loans to total
loans 0.00% 0.00% 0.21% 0.04% 0.00%
Net charge-offs
to loans --
annualized -0.07% -0.40% -0.05% -0.11% -0.11%