Idaho Independent Bank 2006 Third Quarter and Year-to-Date Results Announced


COEUR D'ALENE, Idaho, Oct. 18, 2006 (PRIMEZONE) -- Jack W. Gustavel, Chairman and Chief Executive Officer of Idaho Independent Bank (OTCBB:IIBK) (IIB), announced IIB's financial results (unaudited) for the quarter and nine months ended September 30, 2006.

Mr. Gustavel reported that IIB's Net Income for the quarter ended September 30, 2006, was $2.94 million, an increase of $0.86 million, or 41.2%, from the third quarter of 2005. After adjusting 2005 results for the 7% stock dividend paid in December 2005, IIB's fully diluted earnings per share for the third quarter of 2006 were $0.98, compared to $0.69 for the quarter ended September 30, 2005, an increase of 42.0%. IIB's Net Income year-to-date was $8.20 million, an increase of $2.97 million, or 56.8%, over the $5.23 million earned during the first nine months of 2005. Fully diluted earnings per share for the first nine months of 2006 were $2.75 compared to $1.75 (adjusted) for the nine months ended September 30, 2005, a 57.1% increase.

IIB's Total Assets as of September 30, 2006, were $570.5 million, an increase of $60.5 million, or 11.9%, compared to September 30, 2005. Total Deposits and Repurchase Agreements were $499.1 million as of September 30, 2006, up $50.6 million, or 11.3%, from the same period one year earlier. Total Loans, including Loans Held-for-Sale, at the end of the third quarter of 2006 were $491.9 million, an increase of $123.7 million, or 33.6%, over September 30, 2005.

About IIB

IIB, The Idaho Bank(r), was established in 1993 as an Idaho state-chartered, commercial bank and currently operates branches in Boise (2), Meridian, Coeur d'Alene, Nampa, Mountain Home, Hayden Lake, Caldwell, Star, and Ketchum/Sun Valley. IIB has approximately 200 employees throughout the state of Idaho. IIB's Common Stock is traded on the OTC Bulletin Board under the symbol IIBK. To learn more about IIB, visit us online at www.theidahobank.com.

The Idaho Independent Bank company logo is available at http://www.primezone.com/newsroom/prs/?pkgid=1275



 Idaho Independent Bank                                         
 Financial Highlights (unaudited)       
 (dollars in thousands, except per share)  
                                    
                             Quarter Ended         Nine Months Ended
 INCOME STATEMENT            September 30,           September 30,
                            2006        2005        2006        2005
                                              
 Net interest income    $    9,077  $    6,823  $   26,002  $   18,349
 Provision for loan 
  losses                       450         320       1,354         930
                        ----------  ----------  ----------  ----------
 Net interest margin         8,627       6,503      24,648      17,419
 Noninterest income          1,069       1,319       3,231       3,395
 Noninterest expense         4,765       4,438      14,265      12,386
                        ----------  ----------  ----------  ----------
 Net income before taxes     4,931       3,384      13,614       8,428
 Income taxes                1,995       1,304       5,419       3,199
                        ----------  ----------  ----------  ----------
 Net income             $    2,936  $    2,080  $    8,195  $    5,229
                        ==========  ==========  ==========  ==========

 Earnings Per Share:
   Basic                $     1.07  $     0.77  $     2.99  $     1.92
   Diluted              $     0.98  $     0.69  $     2.75  $     1.75
                          
 BALANCE SHEET

 Loans held for sale    $    2,722  $    4,020
 Loans receivable          489,189     364,131
                        ----------  ----------
 Gross Loans               491,911     368,151
 Allowance for loan 
  losses                     9,095       6,628
 Assets                    570,504     509,964
 Deposits                  482,063     432,151
 Customer Repurchase 
  Agreements                17,008      16,364
 Shareholders' equity       54,346      43,912

 PER SHARE DATA                                                      
                                                                    
 Common shares 
  outstanding            2,737,632   2,730,161
 Book value per share   $    19.85  $    16.08

                          
 PERFORMANCE RATIOS          Quarter Ended         Nine Months Ended
  (annualized)               September 30,            September 30,
                            2006        2005        2006        2005
 Return on Average Assets   2.09%       1.73%        2.04%      1.59%
 Return on Average Equity  22.02%      19.28%       21.84%     16.87%
 Efficiency Ratio          46.96%      54.51%       48.80%     56.96%

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: changes in regional or 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; 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.



            

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