Idaho Independent Bank Announces 2010 Second Quarter and Year-to-Date Results

COEUR D'ALENE, Idaho, Aug. 3, 2010 (GLOBE NEWSWIRE) -- Jack W. Gustavel, Chairman and Chief Executive Officer of Idaho Independent Bank ("IIB" or the "Bank") (OTCBB:IIBK), announced IIB's consolidated unaudited financial results for the second quarter and six months ended June 30, 2010.

Mr. Gustavel reported that IIB's net loss for the quarter ended June 30, 2010, was $1.5 million, or a loss of $0.23 per diluted share, compared to a net loss of $195,000, or a loss of $0.03 per diluted share, for the same period a year ago. IIB's net loss for the six months ended June 30, 2010, was $1.4 million, or a loss of $0.21 per diluted share, compared to a net loss of $3.2 million, or a loss of $0.51 per diluted share, for the same six-month period a year ago. The prior period loss and loss per share amounts have been restated to reflect earlier revisions to amounts reported in 2009. 

Chairman Gustavel stated, "The Bank is making solid progress in reducing concentrations in land and land development loans and is proactively working through its problem credits. At the same time, IIB has managed to improve its capital position over the past two years. IIB's capital ratios continue to be well above the 10% threshold required to be considered "Well-Capitalized" under regulatory guidelines, with our Total Risk-Based Capital Ratio improving to 16.71% at June 30, 2010, compared to 15.39% at December 31, 2009, and 14.45% at June 30, 2009." 

IIB's total assets as of June 30, 2010, decreased $40.4 million, or 7.5%, to $496.9 million from $537.3 million at June 30, 2009. Total loans, including loans held-for-sale, at June 30, 2010, decreased $106.8 million, or 24.3%, to $333.0 million from $439.8 million at June 30, 2009. Total deposits and customer repurchase agreements decreased $26.5 million, or 5.9%, to $420.0 million at June 30, 2010, compared to $446.5 million at June 30, 2009. 

As of June 30, 2010, IIB's allowance for loan losses account totaled $12.9 million, or 3.92% of total loans, excluding loans held-for-sale, compared to $18.0 million, or 4.13% of total loans, excluding loans held-for-sale, as of June 30, 2009. Non-performing assets totaled $51.5 million, or 10.36% of total assets at June 30, 2010, compared to $31.2 million, or 5.80% of total assets at June 30, 2009. Non-performing assets at June 30, 2010, included $48.3 million in non-performing loans and $3.2 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, Caldwell, Star, Eagle, and Sun Valley/Ketchum, Idaho.  IIB has approximately 200 employees throughout the State of Idaho.  To learn more about IIB, visit us online at http://www.theidahobank.com/">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, continued declines or worsening in regional and general economic conditions; changes in interest rates, deposit flows, demand for loans, real estate values, competition, and/or loan delinquencies; 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.