COEUR D'ALENE, Idaho, July 22, 2008 (PRIME NEWSWIRE) -- Jack W. Gustavel, Chairman and Chief Executive Officer of Idaho Independent Bank ("IIB") (OTCBB:IIBK), announced IIB's unaudited financial results for the second quarter and six months ended June 30, 2008.
Mr. Gustavel reported that IIB's net income for the quarter ended June 30, 2008, was $936,000, or $0.15 per diluted share, compared to $3.0 million, or $0.46 per diluted share, for the same period a year ago. IIB's net income for the six months ended June 30, 2008, was $3.0 million, or $0.48 per diluted share, compared to $5.6 million, or $0.87 per diluted share, for the same six-month period a year ago. The decrease in net income for the three months and six months ended June 30, 2008, was primarily due to a continued deterioration of the real estate markets within the communities the Bank serves. Prior period earnings per share have been restated to reflect the 7% share dividend distributed to shareholders in December 2007.
IIB's total assets as of June 30, 2008, decreased $25.8 million, or 4.2%, to $594.8 million from $620.6 million at June 30, 2007. Total loans, including loans held-for-sale, at June 30, 2008, decreased $17.7 million, or 3.4%, to $498.1 million from $515.8 million at June 30, 2007. Total deposits and customer repurchase agreements decreased $56.8 million, or 10.5%, to $484.7 million at June 30, 2008, from $541.5 million at June 30, 2007.
For the quarter ended June 30, 2008, IIB added $2.0 million to the allowance for loan losses, while net charge offs totaled $2.2 million. As of June 30, 2008, the allowance for loan losses account totaled $10.1 million, or 2.0% of loans, excluding loans held-for-sale. Non-performing assets totaled $8.2 million, or 1.4% of total assets, at June 30, 2008, compared to no non-performing assets at June 30, 2007. Non-performing assets included $960,000 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 Lake, Caldwell, Star, Eagle, and Sun Valley/Ketchum, Idaho. IIB has approximately 220 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.primenewswire.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: 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 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 Six Months Ended
INCOME STATEMENT June 30, June 30,
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2008 2007 2008 2007
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Net interest income $ 7,480 $ 9,032 $ 15,516 $ 17,724
Provision for loan losses 1,950 75 2,250 405
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Net interest margin 5,530 8,957 13,266 17,319
Noninterest income 1,261 1,310 2,502 2,370
Noninterest expense 5,257 5,314 10,793 10,394
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Net income before taxes 1,534 4,953 4,975 9,295
Income taxes 598 1,977 1,940 3,714
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Net income $ 936 $ 2,976 $ 3,035 $ 5,581
========= ========= ========= =========
Earnings per share:
Basic (1) $ 0.16 $ 0.50 $ 0.51 $ 0.94
Diluted (1) $ 0.15 $ 0.46 $ 0.48 $ 0.87
BALANCE SHEET June 30 June 30
2008 2007
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Loans held for sale $ 4,670 $ 7,107
Loans receivable 493,389 508,690
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Gross loans 498,059 515,797
Allowance for loan losses 10,057 10,286
Total assets 594,808 620,599
Deposits 447,049 503,021
Customer repurchase agreements 37,650 38,484
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Total deposits and repurchase agreements 484,699 541,505
Stockholders' equity 69,536 63,108
PER SHARE DATA
Common shares outstanding (1) 5,916,908 5,974,988
Book value per share (1) $ 11.75 $ 10.56
PERFORMANCE RATIOS Three Months Ended Six Months Ended
(annualized) June 30, June 30,
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2008 2007 2008 2007
--------- --------- --------- ---------
Return on average assets 0.62% 1.93% 1.00% 1.82%
Return on average equity 5.40% 19.34% 8.85% 18.71%
Efficiency ratio 60.14% 51.38% 59.90% 51.73%
Net interest margin 5.33% 6.28% 5.50% 6.18%
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(1) Prior period amounts have been restated to reflect the 7% share
dividend in December 2007.