MCCALL, ID--(Marketwire - April 14, 2008) - Today Idaho First Bank (
The Bank's new Loan Production Office in Boise was a major contributor to the loan growth. The McCall Bank experienced loan growth despite a continued slow economic environment compounded by the reports of Tamarack Resorts bankruptcy filing and the reported possibility of the City of McCall filing for Chapter 9 bankruptcy protection. The Bank has no credit exposure to either entity and the City of McCall believes it has reached a settlement that will prevent them filing for protection. We are encouraged that steps implemented during our strategic planning session in the fall of 2007 are beginning to bring improved results.
The net loss reported for the first quarter of 2008 was $728,000 compared to a loss of $351,000 in the first quarter of 2007. The increased loss was caused by the provision for loan losses being $410,000 in the first quarter of this year, compared to $33,000 last year in the first quarter. This major increase in the provision for loan losses was caused by the large growth in loans in the first quarter and the decision to charge off a nonperforming loan.
At the end of 2007, the Bank had two nonperforming loans totaling $495,000. A subdivision development loan with a balance of $348,000 was charged off in the first quarter of 2008 due to deterioration in the underlying collateral value for the loan. Although additional collateral was secured for the loan, the weakness of the current real estate market and the extended time to resolve the problem credit resulted in a decision to charge off the full balance of the $348,000 loan. After the charge-off of this loan, the Bank has only one loan, with a balance of $147,000, on nonaccrual status. President and CEO Greg Lovell commented, "We continue our policy of being conservative in management of the loan portfolio and to aggressively recognize credit issues as they occur. We believe that the Boise real estate market will recover and the loan will be resolved in the Bank's favor. We are optimistic that the remaining nonaccrual loan of $147,000 will be resolved in three to six months without any loss to the Bank." The Bank reports there are no other loans past due nor did it participate in the sub-prime real estate loan market.
Without the impact of the loan charge-off the financial results of the Bank were close to the Financial Plan of the Bank. Mr. Lovell commented, "Expense management is a high priority for 2008. The commitment to control expenses is already evidenced by the second consecutive quarter of declines in noninterest expenses. We are working hard to find markets that will allow us to grow the Bank's loan and deposit portfolios."
The Federal Reserve's significant drop in short-term interest rates has had a negative impact on the Bank's net interest margin. Mr. Lovell commented, "We have aggressively monitored our asset and liability position. These efforts were not able to prevent a decline in our net interest margin but limited the decline." Net interest margin in the first quarter of 2008 was 4.16%.
Idaho First Bank
Financial Highlights (unaudited)
(Dollars in thousands, except per share)
For the three months
ended March 31: 2008 2007 Change
-------- -------- ------------------
Net interest income $ 420 $ 320 $ 100 31%
Provision for loan losses 410 33 377 1142%
Mortgage banking income 33 37 (4) -11%
Other noninterest income 43 34 9 26%
Noninterest expenses 814 709 105 15%
Net loss (728) (351) (377) -107%
At March 31: 2008 2007 Change
-------- -------- ------------------
Loans $ 36,689 $ 22,136 $ 14,553 66%
Allowance for loan losses 462 324 138 43%
Assets 46,193 32,238 13,955 43%
Deposits 36,998 29,198 7,800 27%
Stockholders' equity 5,361 2,787 2,574 92%
Nonperforming loans 147 219 (72) -33%
Book value per share 5.88 5.10 0.78 15%
Shares outstanding 910,964 546,741 364,223 67%
Allowance to loans 1.26% 1.46%
Allowance to nonperforming loans 314% 148%
Nonperforming loans to loans 0.40% 0.99%
Averages for three months
ended March 31: 2008 2007 Change
-------- -------- ------------------
Loans $ 31,195 $ 22,069 $ 9,126 41%
Earning assets 40,563 29,609 10,954 37%
Assets 42,984 31,487 11,497 37%
Deposits 34,255 28,317 5,938 21%
Stockholders' equity 5,717 2,915 2,802 96%
Loans to deposits 91% 78%
Net interest margin 4.16% 4.38%
Idaho First Bank
Quarterly Financial Highlights (unaudited)
(Dollars in thousands, except per share)
Q1 2008 Q4 2007 Q3 2007 Q2 2007 Q1 2007
-------- -------- -------- -------- --------
Net interest income $ 420 $ 393 $ 419 $ 340 $ 320
Provision for loan losses 410 68 8 - 33
Mortgage banking income 33 37 17 50 37
Other noninterest income 43 51 32 37 34
Noninterest expenses 814 829 942 625 709
Net loss (728) (416) (482) (198) (351)
Period End Information Q1 2008 Q4 2007 Q3 2007 Q2 2007 Q1 2007
-------- -------- -------- -------- --------
Loans $ 36,689 $ 27,123 $ 25,496 $ 21,976 $ 22,136
Allowance for loan losses 462 400 332 324 324
Nonperforming loans 147 495 - - 219
Quarterly net charge-offs 348 - - - -
Allowance to loans 1.26% 1.47% 1.30% 1.47% 1.46%
Allowance to
nonperforming loans 314% 81% N/A N/A 148%
Nonperforming loans to
loans 0.40% 1.83% 0.00% 0.00% 0.99%
Average Balance
Information Q1 2008 Q4 2007 Q3 2007 Q2 2007 Q1 2007
-------- -------- -------- -------- --------
Loans $ 31,195 $ 26,221 $ 24,327 $ 22,218 $ 22,069
Earning assets 40,563 35,643 35,269 29,455 29,609
Assets 42,984 38,048 37,592 31,444 31,487
Deposits 34,255 31,699 30,221 27,893 28,317
Stockholders' equity 5,717 6,050 5,681 3,024 2,915
Loans to deposits 91% 83% 80% 80% 78%
Net interest margin 4.16% 4.37% 4.71% 4.63% 4.38%
Contact Information: Contacts: Greg Lovell President and CEO 208-630-2001 or Don Madsen CFO 208-947-0430