Idaho First Bank Reports Quarterly Income

MCCALL, ID--(Marketwire - Oct 17, 2011) - Today Idaho First Bank (OTCQB: IDFB) reported financial results for the first nine months of 2011. Continuing the improving trend of the last three quarters, the Bank reported net income of $55,000 for the third quarter. The net income for the third quarter of 2011 compares favorably to a net loss of $126,000 in the second quarter of 2011 and a net loss of $182,000 in the third quarter of 2010. The quarterly income was primarily attributable to increased net interest income from loan growth, reduced provision for credit losses caused by net loan recoveries in the third quarter, and declining levels of nonperforming loans. "The Board is proud of the hard work of management and staff in reaching this result. It is the first milestone in our continuing effort to achieve long-term profitability," stated Mark Miller, Chairman of the Board of Directors.

In addition to achieving profitable operations during the current quarter, the Bank reported a substantially lower loss for the first nine months of 2011 compared to the same period for all prior years. The year-to-date loss of $214,000 is significantly lower than the loss of $1,587,000 for the same period in 2010. Continuing improvement in credit portfolio performance trends resulted in a decline in the provision for loan losses. The provision for the first nine months of 2011 was $220,000 compared to $1,100,000 in the first nine months of 2010. Other major contributors to the improving operating results were a 35% increase in mortgage banking income and a 12% reduction in non-interest expenses.

"We are pleased to see that our focus on credit management, improving our mortgage income, and close management of our non-interest expenses are beginning to show in the results of operations. By focusing on these areas and continuing to work closely with our clients, we believe the Bank will be able to sustain profitability," stated Greg Lovell, President of the Bank.

Nonperforming assets declined from $3.1 million at September 30, 2010, to $1.5 million at September 30, 2011. Mr. Lovell, commented, "We are gratified by the significant drop in nonperforming assets. We feel that the Bank has survived the worst of the economic crisis and that nonperforming assets can continue to improve." He cautioned however, "The on-going economic condition of our primary market continues under stress and could adversely affect future performance."

Stockholders' equity was $4.6 million at September 30, 2011, or 6% of assets. Book value per share was 58 cents per share. The Bank is currently in the midst of a private stock offering to accredited investors. The goal of this offering is to increase the capital to asset ratio above 10%.

Idaho First Bank is a state-chartered commercial bank that opened for business in October 2005. Its headquarters are located in McCall, Idaho, with a loan production office in downtown Boise.

This release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 ("PSLRA"). Such forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those projected. These risks and uncertainties include, but are not limited to, economic conditions, the regulatory environment, loan concentrations, vendors, employees, technology, competition, and interest rates. Readers are cautioned not to place undue reliance on the forward-looking statements. Idaho First Bank has no obligation to publicly update the forward-looking statements after the date of this release. This statement is included for the express purpose of invoking PSLRA's safe harbor provisions.