Idaho Bancorp Reports Mid-Year Results

Today Idaho Bancorp (OTCBB: IDBC) announced that one time charges associated with severance and other employment issues relating to a change in management was the largest contributing factor in the Bank's net loss of $10,000 for the first six months of 2008 compared to income of $738,000 for the same time period in 2007. The loss resulted in diluted earnings per share of -$.01 compared to the $.40 per share reported in the first half of last year. Compression of the Bank's net interest margin and increasing the allowance for loan losses due to a softened local economy also contributed to the Bank's results for the first half of 2008.

Due to recent changes in executive management, the Bank decided to recognize the full potential expense relating to employment agreements, rather than recognizing future monthly expenses as payments are made to satisfy the terms of the employment agreements. These charges, along with other recruiting expenses, totaled approximately $522,000.

The Bank has seen an improvement in its monthly net interest margin over recent months, with a low of 3.63% in March to 3.94% in June 2008. The Bank's year-to-date net interest margin through June 2008 was 3.83%, compared to 4.34% for the same time period last year. This reduction of 51 basis points reduced 2008 pretax income by approximately $555,000. However, a 7% increase in earning assets for 2008 over 2007 helped offset the unfavorable net interest margin variance with a favorable earning assets volume variance of $316,000. Continued improvement in the net interest margin during the current rate environment will be dependent on the Bank's ability to attract low-cost deposits, particularly business checking and savings.

Credit quality remains sound with an annualized year-to-date charge-off ratio of 0.11%. The Bank had net recoveries of $6,000 during the second quarter of 2008, reducing the net charge-offs of $106,000 recognized during the first quarter 2008. Due to uncertainty in the economy, the Bank has prudently increased its allowance for loan losses as a percent of outstanding loans at June 30, 2008 to 1.46% from 1.38% at June 30, 2007 and December 31, 2007. The result of this activity has led to a $305,000 increase in the Bank's provision for loan losses when comparing the first six months of 2008 to the same period in 2007.

Idaho Banking Company President and CEO James C. Latta commented, "The second half of 2008 will continue to be challenging given the state of the economy. The Bank is very fortunate to have employees dedicated to providing lasting impressions of trust and service, while building partner-relationships with businesses and individuals within our market area. Our employees' genuine concern for the success of the Bank's customers will reap rewards for the Bank's shareholders."

Idaho Bancorp is the holding company of Idaho Banking Company. Idaho Banking Company, a state-chartered commercial bank and member of the Federal Reserve, was organized in 1996 and operates four branch offices, and a construction & mortgage home loan center. The Bank serves clients throughout southwestern Idaho.

                        Idaho Bancorp and Subidiary
              Consolidated Financial Highlights (unaudited)
                 (Dollars in thousands, except per share)

For the six months ended
 June 30:                         2008       2007     $ Change   % Change
                                ---------  ---------  ---------  ---------
  Net interest income           $   4,236  $   4,475  $    (239)        -5%
  Provision for loan losses           345         40        305        763%
  Mortgage banking income             375        333         42         13%
  Other noninterest income            256        264         (8)        -3%
  Noninterest expense               4,577      3,920        657         17%
  Net income before taxes             (55)     1,112     (1,167)      -105%
  Income taxes                        (45)       374       (419)      -112%
  Net income                          (10)       738       (748)      -101%

  Earnings per share
    Basic                           (0.01)      0.41      (0.42)      -102%
    Diluted                         (0.01)      0.40      (0.41)      -103%

At June 30:                       2008       2007     $ Change   % Change
                                ---------  ---------  ---------  ---------
  Loans                         $ 196,894  $ 177,890  $  19,004         11%
  Allowance for loan losses         2,868      2,456        412         17%
  Assets                          238,664    231,650      7,014          3%
  Deposits                        177,416    188,581    (11,165)        -6%
  Shareholders' equity             17,586     16,683        903          5%
  Nonperforming loans                  60          0         60        N/A
  Other real estate owned             206          0        206        N/A

  Book value per share               9.56       9.15       0.41          4%
  Shares of common stock
   outstanding                  1,839,610  1,823,722     15,888          1%

  Allowance to loan ratio            1.46%      1.38%
  Allowance to nonperforming
   loans                             4780%       N/A
  Nonperforming loans to total
   loans                             0.03%      0.00%

Averages for the six months
 ended June 30:                   2008       2007     $ Change   % Change
                                ---------  ---------  ---------  ---------
  Loans                         $ 191,511  $ 174,727  $  16,784         10%
  Earning assets                  225,933    211,309     14,624          7%
  Assets                          236,078    223,334     12,744          6%
  Deposits                        185,237    182,806      2,431          1%
  Shareholders' equity             17,763     16,415      1,348          8%

For the six months ended
 June 30:
  Return on average assets          -0.01%      0.67%
  Return on average equity          -0.11%      9.07%
  Average loans to deposits        103.39%     95.58%
  Net interest margin - tax
   equivalent                        3.83%      4.34%
  Net loan charge-offs
   (recoveries)                       100          3
  Net charge-offs (recoveries)
   to loans (annualized)             0.11%      0.00%




                       Idaho Bancorp and Subsidiary
          Quarterly Consolidated Financial Highlights (unaudited)
                 (Dollars in thousands, except per share)


                               2008 Q2  2008 Q1  2007 Q4  2007 Q3  2007 Q2
                               -------  -------  -------  -------  -------
Net interest income            $ 2,122  $ 2,114  $ 2,325  $ 2,280  $ 2,277
Provision for loan losses          200      145      125      145       30
Mortgage banking income            161      214      197      185      136
Other noninterest income           123      133      217      145      131
Noninterest expense              2,443    2,134    1,955    1,986    1,995
Net income before taxes           (237)     182      659      479      519
Income taxes                       (98)      53      278      157      174
Net income                        (139)     129      381      322      345

Earnings per share
  Basic                          (0.08)    0.07     0.21     0.18     0.19
  Diluted                        (0.08)    0.07     0.21     0.17     0.19

Average loans                  193,323  189,698  194,381  182,808  177,699
Average earning assets         228,614  223,253  227,257  220,128  216,409
Average assets                 238,248  233,908  238,798  232,011  228,472
Average deposits               185,846  184,627  191,565  189,402  188,822
Average shareholders' equity    17,985   17,541   17,439   16,989   16,632

Return on average assets         -0.23%    0.22%    0.63%    0.55%    0.61%
Return on average equity         -3.11%    2.96%    8.67%    7.52%    8.32%
Average loans to deposits       104.02%  102.75%  101.47%   96.52%   94.11%
Net interest margin - tax
 equivalent                       3.79%    3.87%    4.13%    4.18%    4.28%

Nonperforming loans - period
 end                           $    60  $   316  $   911  $     -  $     -
Other real estate owned -
 period end                        206        -        -        -        -
Loans - period end             196,894  189,284  190,366  187,828  177,890
Allowance for loan losses -
 period end                      2,868    2,662    2,623    2,589    2,456
Net charge-offs (recoveries) -
 quarterly                          (6)     106       91       12        9

Allowance to loans                1.46%    1.41%    1.38%    1.38%    1.38%
Allowance to nonperforming
 loans                            4780%     842%     288%     N/A      N/A
Nonperforming loans to total
 loans                            0.03%    0.17%    0.48%    0.00%    0.00%
Net charge-offs to loans -
 annualized                      -0.01%    0.22%    0.19%    0.03%    0.02%

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