MCCALL, ID--(Marketwire - July 14, 2008) - Today, Idaho First Bank (
The net loss reported for the first half of 2008 was $1,055,000 compared to a loss of $549,000 in the first half of 2007. The increased loss was caused by the provision for loan losses being $475,000, compared to $33,000 last year in the first half. This major increase in the provision for loan losses was caused by the large growth in loans and the decision to charge off a $348,000 nonperforming loan in the first quarter of the year. There were no loan charge-offs in the second quarter of 2008, and the quarterly net loss for the second quarter of 2008 was $327,000, compared to the $728,000 net loss in the first quarter of 2008.
As of June 30, 2008, there was one nonperforming loan with a balance of $147,000. The Bank's credit quality is stable and oversight has been strengthened to maintain a quality loan portfolio. The Federal Reserve's significant drop in short-term interest rates has had a negative impact on the Bank's net interest margin. Net interest margin in the first half of 2008 was 4.04% compared to 4.51% in the first half of 2007.
Stockholders' equity was $5.3 million at June 30, 2008, and book value per share was $5.38. On June 27, 2008, the Bank began a stock offering to sell $6 million of common stock at $5.00 per share. For every two shares that are purchased at this price the purchaser will receive a warrant entitling them to buy one additional share at a price of $7.00 per share, at anytime before September 30, 2011. This stock offering is necessary to support the rapid growth of the Bank and to allow the Bank to achieve profitability. Offering Circulars were mailed to shareholders on July 9. Offering Circulars are available by contacting Greg Lovell or Don Madsen at the phone numbers listed below.
The Board of Directors has voted to add, subject to approval by the State of Idaho and the FDIC, two new Board members. These two potential directors agreed to purchase 300,000 shares ($1.5 million) in the stock offering, which is a significant vote of confidence in the Bank and the progress the Bank has made.
President and CEO Greg Lovell said, "One new director will be Mark Miller who is a Boise native who spends considerable time in McCall. His business background includes running his family's private equity firm. His wife Jennifer is a well-known orthopedic surgeon in Boise. Their family company has been a significant shareholder from the Bank's inception. The other new director is William Riddle of Dallas, Texas. Mr. Riddle has extensive experience in the health care industry and is a regular visitor to our area. He has substantial business investments in and a deep affection for McCall. He has been a long-time client of the Bank and provides financial expertise as well as a strong history of growing and improving businesses."
Idaho First Bank Financial Highlights (unaudited) (Dollars in thousands, except per share) For the six months ended June 30: 2008 2007 Change -------- -------- -------------- Net interest income $ 897 $ 660 $ 237 36% Provision for loan losses 475 33 442 1339% Mortgage banking income 82 87 (5) -6% Other noninterest income 91 71 20 28% Noninterest expenses 1,650 1,334 316 24% Net loss (1,055) (549) (506) -92% At June 30: 2008 2007 Change -------- -------- -------------- Loans $ 42,123 $ 21,976 $ 20,147 92% Allowance for loan losses 527 324 203 63% Assets 54,445 33,860 20,585 61% Deposits 45,708 26,564 19,144 72% Stockholders' equity 5,313 4,860 453 9% Nonperforming loans 147 - 147 N/A Book value per share 5.38 6.45 (1.07) -17% Shares outstanding 987,964 753,491 234,473 31% Allowance to loans 1.25% 1.47% Allowance to nonperforming loans 359% N/A Nonperforming loans to loans 0.35% 0.00% Averages for six months ended June 30: 2008 2007 Change -------- -------- -------------- Loans $ 35,562 $ 22,144 $ 13,418 61% Earning assets 44,664 29,532 15,132 51% Assets 47,132 31,465 15,667 50% Deposits 38,533 28,103 10,430 37% Stockholders' equity 5,378 2,970 2,408 81% Loans to deposits 92% 79% Net interest margin 4.04% 4.51% Idaho First Bank Quarterly Financial Highlights (unaudited) (Dollars in thousands, except per share) Q2 2008 Q1 2008 Q4 2007 Q3 2007 Q2 2007 -------- -------- -------- -------- -------- Net interest income $ 477 $ 420 $ 393 $ 419 $ 340 Provision for loan losses 65 410 68 8 - Mortgage banking income 49 33 37 17 50 Other noninterest income 48 43 51 32 37 Noninterest expenses 836 814 829 942 625 Net loss (327) (728) (416) (482) (198) Period End Information Q2 2008 Q1 2008 Q4 2007 Q3 2007 Q2 2007 -------- -------- -------- -------- -------- Loans $ 42,123 $ 36,689 $ 27,123 $ 25,496 $ 21,976 Allowance for loan losses 527 462 400 332 324 Nonperforming loans 147 147 495 - - Quarterly net charge-offs - 348 - - - Allowance to loans 1.25% 1.26% 1.47% 1.30% 1.47% Allowance to nonperforming loans 359% 314% 81% N/A N/A Nonperforming loans to loans 0.35% 0.40% 1.83% 0.00% 0.00% Average Balance Information Q2 2008 Q1 2008 Q4 2007 Q3 2007 Q2 2007 -------- -------- -------- -------- -------- Loans $ 39,929 $ 31,195 $ 26,221 $ 24,327 $ 22,218 Earning assets 48,764 40,563 35,643 35,269 29,455 Assets 51,281 42,984 38,048 37,592 31,444 Deposits 42,810 34,255 31,699 30,221 27,893 Stockholders' equity 5,039 5,717 6,050 5,681 3,024 Loans to deposits 93% 91% 83% 80% 80% Net interest margin 3.93% 4.16% 4.37% 4.71% 4.63%
Contact Information: Contacts: Greg Lovell President and CEO 208-630-2001 Don Madsen CFO 208-947-0430