Idaho First Bank Reports 2015 Results

MCCALL, ID--(Marketwired - February 01, 2016) - Today Idaho First Bank (OTC PINK: IDFB) reported financial results for the year ended December 31, 2015. The Bank reported net income of $1,923,000 for 2015, a 12% increase from net income of $1,722,000 in the same period of 2014. Mark Miller, Chairman of the Board, commented, "We are gratified with our results. We believe in adding continued value and return to our shareholders. The Board is actively engaged with management in setting and monitoring our strategic direction and progress toward achieving our goals." 

The Bank's earnings were positively impacted by loan growth, improvement in net interest income, and tax benefits. Net interest income for 2015 was up 15% from the prior year. The improvement in net interest income was primarily due to a 16% increase in average loans. Mortgage banking income was down 9% in 2015, primarily due to fewer loan originators as we restructured to streamline and improve the long-term profitability of this important operation. The tax benefit of $1,321,000 in 2015 was the conclusion of a three-year process to recognize tax benefits from net operating losses in prior years. In 2016, the Bank will have a "normal" tax provision of approximately 40% of pre-tax income.

Non-performing assets were $1.5 million at December 31, 2015, which is a $1.3 million reduction from the balance at June 30, 2015. "While the balance was higher than the $302,000 balance at the end of the 2014, the reduction from mid-year is indicative of continuing improvement in our non-performing assets," stated Kathleen Lewis, EVP and Chief Credit Officer of the Bank. She further stated, "Credit quality is our highest priority in new business generation, particularly as we see heightened competition for loan growth in our local marketplace." In light of continued economic improvement, the allowance for loan losses was 1.28% of loans at the end of 2015, compared to 1.44% at the end of 2014. The allowance remains fully funded based upon our current methodology and industry standards. 

Shareholders' equity at December 31, 2015, was $15.6 million, an increase of $3.2 million from a year ago. Our strong performance resulted in book value per share reaching $6.66 at the end of the year, up 37 cents from a one year ago. 

"We look forward to continued growth in 2016. However, we will be challenged by the increasing cost of regulatory compliance combined with the change in our tax position. We are cautiously optimistic that our changes in structure and investments in technology will continue our progress," stated Greg Lovell, President and CEO. "We look forward to our Annual Shareholder Meeting in April and having a deeper discussion of our results."

Idaho First Bank is a state-chartered commercial bank that opened for business in October 2005. Its headquarters are located in McCall, Idaho, with two branches located in 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.