Idaho Independent Bank Announces 2008 Third Quarter and Year-to-Date Results


COEUR D'ALENE, Idaho, Oct. 23, 2008 (GLOBE NEWSWIRE) -- Jack W. Gustavel, Chairman and Chief Executive Officer of Idaho Independent Bank ("IIB") (OTCBB:IIBK), announced IIB's unaudited financial results for the third quarter and nine months ended September 30, 2008.

Mr. Gustavel reported that IIB's net income for the quarter ended September 30, 2008, was $1.6 million, or $0.27 per diluted share, compared to $2.7 million, or $0.43 per diluted share, for the same period a year ago. IIB's net income for the nine months ended September 30, 2008, was $4.7 million, or $0.75 per diluted share, compared to $8.3 million, or $1.30 per diluted share, for the same nine-month period a year ago. The decrease in net income for the three months and nine months ended September 30, 2008, was primarily due to the effect of 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 September 30, 2008, decreased $25.8 million, or 4.1%, to $604.2 million from $630.0 million at September 30, 2007. Total loans, including loans held-for-sale, at September 30, 2008, decreased $14.4 million, or 2.8%, to $503.2 million from $517.6 million at September 30, 2007. Total deposits and customer repurchase agreements decreased $69.8 million, or 12.8%, to $477.5 million at September 30, 2008, from $547.3 million at September 30, 2007.

For the quarter ended September 30, 2008, IIB added $775,000 to its allowance for loan losses, while net charge offs totaled $675,176. As of September 30, 2008, the allowance for loan losses account totaled $10.2 million, or 2.02% of loans, excluding loans held-for-sale. Non-performing assets totaled $13.3 million, or 2.21% of total assets, at September 30, 2008, compared to $2.8 million, or 0.45% of total assets at September 30, 2007. Non-performing assets at September 30, 2008, included $6.5 million in non-performing loans and $6.8 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.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 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         Nine Months Ended   
 INCOME STATEMENT         September 30,             September 30,     
                     ----------------------    ---------------------- 
                        2008         2007         2008         2007   
                     ---------    ---------    ---------    --------- 
 Net interest                                                         
  income             $   7,603    $   8,870    $  23,119    $  26,594 
 Provision for                                                        
  loan losses              775           --        3,025          405 
                     ---------    ---------    ---------    --------- 
 Net interest                                                         
  margin                 6,828        8,870       20,094       26,189 
 Noninterest                                                          
  income                 1,142        1,181        3,644        3,551 
 Noninterest                                                          
  expense                5,310        5,593       16,103       15,987 
                     ---------    ---------    ---------    --------- 
 Net income                                                           
  before taxes           2,660        4,458        7,635       13,753 
 Income taxes            1,020        1,712        2,960        5,426 
                     ---------    ---------    ---------    --------- 
 Net income          $   1,640    $   2,746    $   4,675    $   8,327 
                     =========    =========    =========    ========= 
                                                                      
 Earnings per share:                                                  
   Basic (1)         $    0.28    $    0.46    $    0.79    $    1.40 
   Diluted (1)       $    0.27    $    0.43    $    0.75    $    1.30 
                                                                      
                                                                      
 BALANCE SHEET                         September 30,  September 30,
                                           2008           2007
                                       -------------  -------------
 Loans held for sale                   $       1,115  $       2,847
 Loans receivable                            502,112        514,798
                                       -------------  -------------
 Gross loans                                 503,227        517,645
 Allowance for loan losses                    10,156         10,283
 Total assets                                604,202        630,043

 Deposits                                    435,904        513,295
 Customer repurchase agreements               41,612         33,993
                                       -------------  -------------
 Total deposits and repurchase 
  agreements                                 477,516        547,288
 Stockholders' equity                         70,961         64,602

 PER SHARE DATA

 Common shares outstanding (1)             5,899,592      5,924,194
 Book value per share (1)              $       12.03  $       10.90
                  
                                                                      
                         Three Months Ended       Nine Months Ended   
                           September 30,            September 30,     
 PERFORMANCE RATIOS  ----------------------    ---------------------- 
  (annualized)          2008         2007         2008         2007   
                     ---------    ---------    ---------    --------- 
 Return on                                                            
  average assets          1.09%        1.76%        1.03%        1.80%
 Return on                                                            
  average equity          9.28%       17.10%        9.01%       18.17%
 Efficiency ratio        60.72%       55.65%       60.17%       53.03%
 Net interest                                                         
  margin                  5.54%        6.05%        5.52%        6.14%
                                                                      
                                                                      
 (1) Prior period amounts have been restated to reflect the 7% share  
 dividend in December 2007.                                           


            

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