Idaho Independent Bank Announces 2014 Second Quarter and Year-to-Date Results

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| Source: Idaho Independent Bank

COEUR D'ALENE, Idaho, July 29, 2014 (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, 2014.

Mr. Gustavel reported that IIB's net income for the quarter was $307,000, or $0.04 per diluted share, which was about in line with net income for the same period a year ago. IIB's net income for the six months ended June 30, 2014, was $765,000, or $0.09 per diluted share, compared to $805,000, or $0.10 per diluted share, for the first six months of 2013. Income tax expense was offset by a reduction in the Bank's valuation allowance against net deferred tax assets ("Tax Valuation Allowance"). As of June 30, 2014, IIB was carrying a Tax Valuation Allowance of about $7.1 million that may be used to reduce future income tax expense.

"I am pleased to report positive earnings for the seventh consecutive quarter. Loan demand has increased, and IIB is getting new business with regularity," Mr. Gustavel said.

The Bank's total assets at June 30, 2014, increased $13.5 million, or 2.9%, to $486.6 million when compared to June 30, 2013. Deposits and repurchase agreements increased $9.7 million, or 2.4%, to $413.1 million, and total loans increased $13.9 million, or 5.9%, to $250.1 million over the same timeframe. Nonperforming assets decreased $5.1 million, or 35.9%, to $9.1 million at June 30, 2014, while IIB's allowance for loan and lease losses closed the quarter at $6.3 million, or 2.5% of total loans, excluding loans held-for-sale.

The Bank's capital ratios continue to exceed the thresholds required to be considered "Well-Capitalized" under regulatory guidelines. IIB's Tier One Capital Ratio and Total Risk-Based Capital Ratio were 11.3% and 16.0%, respectively, at June 30, 2014. 

IIB will file its Consolidated Report of Condition and Income for the quarter ended June 30, 2014, (the "Call Report") with the Federal Deposit Insurance Corporation by July 30, 2014. The Call Report will be available on the Federal Financial Institutions Examinations Council website at http://cdr.ffiec.gov/Public/.

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, and Sun Valley/Ketchum, Idaho.  IIB has approximately 200 employees throughout the State of Idaho.  To learn more about IIB, visit us online at www.theidahobank.com.

Statements contained herein concerning future performance, developments or events, expectations for earnings, growth and market forecasts, and similar statements that are not historical facts are intended to be "forward-looking statements" as that term is defined in 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 . 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,
  2014 2013 2014 2013
Net interest income  $ 3,568  $ 3,265  $ 7,753  $ 6,449
Provision for loan losses  1  --  1  265
Net interest income after provision for loan losses  3,567  3,265  7,752  6,184
Noninterest income  1,499  1,982  2,786  4,231
Noninterest expense  4,759  4,943  9,773  9,610
Net income before taxes  307  304  765  805
Income tax expense  --  --  --  --
Net income  $ 307  $ 304  $ 765  $ 805
         
Earnings per share:        
Basic  $ 0.04  $ 0.04  $ 0.09  $ 0.10
Diluted  $ 0.04  $ 0.04  $ 0.09  $ 0.10
         
SELECTED BALANCE SHEET ACCOUNTS June 30, June 30,    
  2014 2013    
Loans held for sale  $ 1,713  $ 5,941    
Loans receivable  248,344  230,279    
Gross loans  250,057  236,220    
Allowance for loan losses  6,265  5,826    
Total assets  486,573  473,052    
Deposits  403,055  384,457    
Customer repurchase agreements  10,055  18,987    
Total deposits and repurchase agreements  413,110  403,444    
Stockholders' equity  55,293  51,883    
         
PER SHARE DATA        
Common shares outstanding  8,186,508  8,181,109    
Book value per share  $ 6.75  $ 6.34    
         
CAPITAL RATIOS        
Tier 1 capital (to average assets) 11.28% 11.27%    
Tier 1 capital (to risk-weighted assets) 14.74% 14.98%    
Total risk-based capital (to risk-weighted assets) 15.99% 16.24%    
         
  Three Months Ended Six Months Ended
PERFORMANCE RATIOS (annualized) June 30, June 30,
  2014 2013 2014 2013
Return on average assets 0.26% 0.27% 0.33% 0.36%
Return on average equity 2.24% 2.34% 2.81% 3.13%
Efficiency ratio 93.92% 93.79% 92.73% 88.88%
Net interest margin 3.31% 3.17% 3.67% 3.18%
Jack W. Gustavel
IDAHO INDEPENDENT BANK
1260 W. Riverstone Drive
Coeur d'Alene, Idaho  83814
(208) 292-1902