Idaho Independent Bank Announces 2011 Third Quarter and Year-to-Date Results

COEUR D'ALENE, Idaho, Nov. 7, 2011 (GLOBE NEWSWIRE) -- Jack W. Gustavel, Chairman and Chief Executive Officer of Idaho Independent Bank ("IIB" or the "Bank") (OTC BB: IIBK.OB), announced IIB's consolidated unaudited financial results for the third quarter and nine months ending September 30, 2011.

Mr. Gustavel reported that IIB's net loss for the quarter ended September 30, 2011, was $608,000, or $0.10 per diluted share, compared to a net loss of $1.4 million, or $0.22 per diluted share, for the same period a year ago. The Bank's net loss for the nine months ended September 30, 2011, was $2.7 million, or $0.42 per diluted share, compared to a net loss of $2.8 million, or $0.43 per diluted share, for the same nine-month period a year ago.  

"The Bank's asset quality continued to improve, allowing IIB's provisioning for loan losses to be lowered to $300,000 for the third quarter of 2011, down from $800,000 in the second quarter of 2011, and down from $3.4 million in the third quarter of 2010," Mr. Gustavel said.   "IIB maintains strong capital ratios that are above the thresholds required to be considered 'Well-Capitalized' under regulatory guidelines," Mr. Gustavel added. IIB's Total Risk-Based Capital Ratio improved to 17.14% at September 30, 2011, compared to 16.7% at September 30, 2010. 

IIB's total assets as of September 30, 2011, increased $12.2 million, or 2.7%, to $453.8 million from $441.6 million at December 31, 2010. Total loans, including loans held-for-sale, at September 30, 2011, decreased $38.3 million, or 13.1%, to $252.8 million from $291.1 million at December 31, 2010. Total deposits and customer repurchase agreements increased $14.2 million, or 3.8%, to $383.0 million at September 30, 2011, compared to $368.8 million at December 31, 2010.   

As of September 30, 2011, IIB's reserve for loan losses totaled $8.7 million, or 3.5% of total loans, excluding loans held-for-sale. Mr. Gustavel stated that "Nonperforming assets decreased $15.8 million, or 33.5%, to $31.3 million at September 30, 2011, compared to $47.1 million at September 30, 2010." Nonperforming assets at September 30, 2011, included $22.2 million in nonperforming loans and $9.1 million in other real estate owned.

On September 6, 2011, the Bank commenced its previously announced offering of its common stock.   As of November 4, 2011, the Bank had sold 1,723,324 shares at a price of $3.40 per share, raising approximately $5.9 million of additional capital before offering expenses. The additional capital will be booked during the fourth quarter of 2011. Mr. Gustavel commented, "We have had a good start to our stock offering. The support demonstrates the confidence our shareholders and investors have in IIB. The Bank already had solid capital and reserves, substantial liquidity, good markets, and great people, so this additional capital is expected to allow us to build on that strong foundation and help the Bank to more quickly implement its growth plans."   

As outlined in the Offering Circular, the Bank will continue to offer to sell the remaining shares to the general public until 5:00 p.m., EST, on November 7, 2011, unless the offering is earlier completed, terminated, or extended. McAdams Wright Ragen Incorporated is acting as financial adviser and selling agent in connection with the offering to the public. 

This press release does not constitute an offer to sell, or a solicitation of an offer to buy, any securities nor will there be sales of these securities in any jurisdiction in which such offer, solicitation, or sale would be unlawful. Any offer will only be made by an Offering Circular. These securities are neither insured nor approved by the Federal Deposit Insurance Corporation. Copies of the Offering Circular may be obtained from Jane Bodle-Hill, Executive Assistant to the Chief Executive Officer, at Idaho Independent Bank, 1260 W. Riverstone Drive, Coeur d'Alene, Idaho 83814, (208) 292-1902, from IIB's information agent, Georgeson, Inc. at (888) 660-8331, for banks and brokers at (212) 440-9800, and/or by email at investorrelations@iibk.net or iibk@georgeson.com.

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.