COEUR D'ALENE, Idaho, Aug. 4, 2011 (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, 2011.
Mr. Gustavel reported that IIB's net loss for the quarter ended June 30, 2011, was $1.1 million, or $0.18 per diluted share, compared to a net loss of $1.5 million, or $0.23 per diluted share, for the same period a year ago. IIB's net loss for the six months ended June 30, 2011, was $2.1 million, or $0.33 per diluted share, compared to a net loss of $1.4 million, or $0.21 per diluted share, for the same six-month period a year ago.
"We have made good progress in improving the Bank's overall asset quality," Mr. Gustavel said. "IIB continues to maintain strong capital ratios that are well above the thresholds required to be considered "Well-Capitalized" under regulatory guidelines. Our strong balance sheet provides a solid foundation for growth and positions the Bank well for future profitability," Mr. Gustavel added. IIB's Total Risk-Based Capital Ratio improved to 17.50% at June 30, 2011, compared to 16.7% at June 30, 2010.
During the quarter, total assets decreased $3.4 million, or just under 1.0%, to $438.2 million from $441.6 million at December 31, 2010. Compared to the prior year, total assets as of June 30, 2011, decreased $58.7 million, or 11.8%, from $496.9 million at June 30, 2010. Total loans, including loans held-for-sale, at June 30, 2011, decreased $38.8 million, or 13.3%, to $252.3 million from $291.1 million at December 31, 2010, and decreased $80.7 million, or 24.2%, compared to June 30, 2010. Land, land development, and construction loans decreased $16.7 million, or 16.9%, to $81.6 million from $98.3 million at December 31, 2010, and decreased $42.8 million, or 34.4%, from $124.4 million at June 30, 2010. Total deposits and customer repurchase agreements decreased $2.1 million, or less than 1.0%, to $366.7 million at June 30, 2011, compared to $368.8 million at December 31, 2010. Total deposits and customer repurchase agreements decreased $53.3 million, or 12.7%, compared to $420.0 million at June 30, 2010.
As of June 30, 2011, IIB's reserve for loan losses totaled $9.0 million, or 3.6% of total loans, excluding loans held-for-sale. Non-performing assets declined 23.6% to $31.8 million, or 7.3% of total assets at June 30, 2011, compared to $41.6 million, or 9.4% of total assets as of December 31, 2010. Non-performing assets decreased $19.7 million, or 38.3%, compared to $51.5 million at June 30, 2010. Non-performing assets at June 30, 2011, included $19.5 million in non-performing loans and $12.3 million in other real estate owned.
About IIB
IIB was established in 1993 as an Idaho state-chartered, commercial bank and currently operates three branches in Boise, as well as branches in 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 statements that are not historical facts are forward-looking statements that are intended to be covered by the safe harbor for "forward-looking statements" provided by the Private Securities Litigation 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, 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. These risks and other factors are described in greater detail in the Bank's filings with the Federal Deposit Insurance Corporation, including, without limitation, the Item 1A Risk Factors section of the Bank's Annual Report on Form 10-K for the year ended December 31, 2010. 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 | |||
| CONDENSED STATEMENT OF OPERATIONS | June 30, | June 30, | ||
| 2011 | 2010 | 2011 | 2010 | |
| Net interest income | $ 3,792 | $ 4,298 | $ 7,636 | $ 9,183 |
| Provision for loan losses | 800 | 3,150 | 1,600 | 4,465 |
| Net interest income after provision for loan losses | 2,992 | 1,148 | 6,036 | 4,718 |
| Noninterest income | 941 | 1,052 | 2,114 | 2,139 |
| Noninterest expense | 5,068 | 4,563 | 10,241 | 9,057 |
| Net loss before taxes | (1,135) | (2,363) | (2,091) | (2,200) |
| Income tax benefit | -- | (901) | -- | (839) |
| Net loss | $ (1,135) | $ (1,462) | $ (2,091) | $ (1,361) |
| Loss per share: | ||||
| Basic | $ (0.18) | $ (0.23) | $ (0.33) | $ (0.21) |
| Diluted | $ (0.18) | $ (0.23) | $ (0.33) | $ (0.21) |
| SELECTED BALANCE SHEET ACCOUNTS | June 30, | June 30, | ||
| 2011 | 2010 | |||
| Loans held for sale | $ 728 | $ 4,455 | ||
| Loans receivable | 251,554 | 328,561 | ||
| Gross loans | 252,282 | 333,016 | ||
| Allowance for loan losses | 9,034 | 12,868 | ||
| Total assets | 438,223 | 496,928 | ||
| Deposits | 351,162 | 398,856 | ||
| Customer repurchase agreements | 15,505 | 21,133 | ||
| Total deposits and repurchase agreements | 366,667 | 419,989 | ||
| Stockholders' equity | 54,809 | 60,955 | ||
| PER SHARE DATA | ||||
| Common shares outstanding | 6,357,112 | 6,357,112 | ||
| Book value per share | $ 8.62 | $ 9.59 | ||
| CAPITAL RATIOS | ||||
| Tier 1 capital (to average assets) | 12.00% | 12.36% | ||
| Tier 1 capital (to risk-weighted assets) | 16.23% | 15.43% | ||
| Total risk-based capital (to risk-weighted assets) | 17.50% | 16.71% | ||
| Three Months Ended | Six Months Ended | |||
| PERFORMANCE RATIOS (annualized) | June 30, | June 30, | ||
| 2011 | 2010 | 2011 | 2010 | |
| Return on average assets | -1.02% | -1.19% | -0.94% | -0.56% |
| Return on average equity | -8.18% | -9.42% | -7.50% | -4.35% |
| Efficiency ratio | 107.08% | 85.29% | 105.04% | 79.99% |
| Net interest margin | 3.89% | 3.87% | 3.94% | 4.15% |