Idaho First Bank Reports Record Year-End Results

MCCALL, ID--(Marketwire - Jan 15, 2013) - Today Idaho First Bank (OTCQB: IDFB) reported financial results for the year ended December 31, 2012. The Bank reported record net income of $262,000 for 2012, compared to a loss of $143,000 in 2011. This represents six consecutive quarters of profitability for the Bank and the first full calendar year of profitability.

"The Bank showed improvement in many critical areas including: loan growth, increased net interest margin and strong growth in non-interest income," said Greg Lovell, President and Chief Executive Officer. He further stated, "We are pleased to have reached this milestone but we will continue to focus on improving credit quality, growth of earning assets and expense control."

Compared to the prior year, the Bank achieved a 33% increase in net interest income. This was driven by average loan growth of 19% and an improving net interest margin. Net interest margin improved from 3.02% in 2011 to 3.88% in 2012. Year-to-date mortgage banking income also grew substantially from $875,000 in 2011 to $1,938,000 in 2012. Net income for the fourth quarter of 2012 was $118,000, a record for the highest quarterly income in the Bank's history. Net income of $118,000 for the quarter compares with quarterly income of $71,000 in the same quarter of 2011 and $105,000 of quarterly income in the third quarter of 2012.

"The Board is proud of the hard work of staff and management in reaching our first year of profitability and a record quarterly income," stated Mark Miller, Chairman of the Board of Directors.

Nonperforming assets were $1.8 million at December 31, 2012, a decrease of 5% from the prior year. The allowance for loan losses was 1.54% of loans at December 31 and 110% of nonperforming loans. Mr. Lovell commented, "We are cautiously optimistic about the improving trends in our portfolio. We continue to closely monitor the performance of our loan portfolio and aggressively take action as problems arise."

Stockholders' equity was $5.0 million at December 31, 2012, or 6% of assets. Book value was 61 cents per share, two cents more than at the end of 2011.

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.

Idaho First Bank
Financial Highlights (unaudited)
(Dollars in thousands, except per share)
For the year ended December 31:			2012				2011				Change
	Net interest income		$	3,001			$	2,264			$	737			33	%
	Provision for loan losses			685				250				435			174	%
	Mortgage banking income			1,938				875				1,063			121	%
	Other noninterest income			277				228				49			21	%
	Noninterest expenses			4,269				3,260				1,009			31	%
		Net income (loss)		262				(143	)			405			283	%
At December 31:			2012				2011				Change
	Loans		$	72,187			$	64,133			$	8,054			13	%
	Allowance for loan losses			1,114				1,052				62			6	%
	Assets			85,741				77,156				8,585			11	%
	Deposits			78,338				69,115				9,223			13	%
	Stockholders' equity			5,001				4,700				301			6	%
	Nonaccrual loans			1,012				1,048				(36	)		-3	%
	Accruing loans more than 90 days past due			-				-				-
	Other real estate owned			827				887				(60	)		-7	%
		Total nonperforming assets		1,839				1,935				(96	)		-5	%
	Book value per share			0.61				0.59				0.02			3	%
	Shares outstanding			8,206,932				7,999,932				207,000			3	%
	Allowance to loans			1.54	%			1.64	%
	Allowance to nonperforming loans			110	%			100	%
	Nonperforming loans to total loans			1.40	%			1.63	%
Averages for the year ended December 31:			2012				2011				Change
	Loans		$	68,110			$	57,438			$	10,672			19	%
	Earning assets			77,354				74,878				2,476			3	%
	Assets			80,733				77,440				3,293			4	%
	Deposits			73,295				69,202				4,093			6	%
	Stockholders' equity			4,775				4,628				147			3	%
	Loans to deposits			93	%			83	%
	Net interest margin			3.88	%			3.02	%

Idaho First Bank
Quarterly Financial Highlights (unaudited)
(Dollars in thousands)
Income Statement				Q4 2012				Q3 2012				Q2 2012				Q1 2012				Q4 2011
	Net interest income			$	788			$	799			$	716			$	698			$	630
	Provision for loan losses				160				275				135				115				30
	Mortgage banking income				486				727				499				226				313
	Other noninterest income				82				71				68				56				60
	Noninterest expenses				1,078				1,217				1,132				842				902
		Net income			118				105				16				23				71
Period End Information				Q4 2012				Q3 2012				Q2 2012				Q1 2012				Q4 2011
	Loans			$	72,187			$	69,085			$	70,836			$	66,109			$	64,133
	Allowance for loan losses				1,114				1,108				794				874				1,052
	Nonperforming loans				1,012				1,369				1,182				1,856				1,048
	Other real estate owned				827				857				874				887				887
	Quarterly net charge-offs				154				(39	)			215				293				51
	Allowance to loans				1.54	%			1.60	%			1.12	%			1.32	%			1.64	%
	Allowance to nonperforming loans				110	%			81	%			67	%			47	%			100	%
	Nonperforming loans to loans				1.40	%			1.98	%			1.67	%			2.81	%			1.63	%
Average Balance Information				Q4 2012				Q3 2012				Q2 2012				Q1 2012				Q4 2011
	Loans			$	69,745			$	70,427			$	67,536			$	64,689			$	63,221
	Earning assets				79,651				79,549				76,314				73,853				72,229
	Assets				83,104				82,962				79,672				77,144				75,007
	Deposits				75,495				75,185				72,547				69,907				66,891
	Stockholders' equity				4,886				4,778				4,726				4,707				4,660
	Loans to deposits				92	%			94	%			93	%			93	%			95	%
	Net interest margin				3.94	%			4.00	%			3.77	%			3.80	%			3.46	%