Idaho Bancorp Reports Third-Quarter Results

Today Idaho Bancorp (OTCBB: IDBC) reported net income for the first nine months of 2008 of $159,000 or $0.09/diluted share, compared to $1,060,000 or $0.57/diluted share for the same time period in 2007. The largest contributing factors responsible for these results included a decline in the net interest margin between 2008 and 2007, expenses related to management changes at Idaho Banking Company and an increased provision for loan losses due to a weakening economy.

The tax equivalent net interest margin for the first nine months of 2008 and 2007 was 3.88% and 4.28%, respectively. The reduced net interest margin caused net income to decline from the 2007 level by approximately $418,000. Expenses related to management changes earlier in the year caused net income to decrease during 2008 by approximately $340,000.

Due to the weakening economy, the Company has increased its allowance for loan losses to 1.51% of outstanding loans from 1.38% at December 31, 2007. This increase, combined with net charge-offs of $204,000, reduced net income during 2008 by approximately $273,000. The annualized year-to-date net charge-offs to loans ratio is only 0.14%. Nonperforming loans consist of six accounts totaling $2,158,000, or 1.08% of loans outstanding as of September 30, 2008 compared to no nonperforming loans at the end of the third quarter 2007. The Company believes it has an adequate reserve for these loans.

Net income for the third quarter 2008 was $169,000 compared to a loss of $139,000 during the second quarter 2008. The largest contributing factor to this improvement was a $399,000 decrease in noninterest expense due to Idaho Banking Company management change expenses recognized in the second quarter. The Company's tax equivalent net interest margin improved by 20 basis points to 3.99% for the third quarter 2008 compared to 3.79% for the second quarter 2008. The Company is focused on continued improvement in its tax equivalent net interest margin with the introduction of its Perfectly Free Business Checking product during the most recent quarter.

Idaho Banking Company President and CEO James C. Latta commented, "The Bank is very fortunate to have employees dedicated to providing lasting impressions of trust and service, while building strong loan and deposit 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 Safe Harbor

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, including but not limited to the following: the concentration of loans of the company's banking subsidiary, particularly with respect to commercial and residential real estate lending; a continued decline in the housing and real estate market, changes in the regulatory environment and increases in associated costs, particularly ongoing compliance expenses and resource allocation needs in response to regulatory rules and guidelines; vendor quality and efficiency; employee recruitment and retention; the company's ability to control risks associated with rapidly changing technology both from an internal perspective as well as for external providers; increased competition among financial institutions; fluctuating interest rate environments; a tightening of available credit, and similar matters. Readers are cautioned not to place undue reliance on the forward-looking statements. Idaho Bancorp undertakes no obligation to publicly revise or update the forward-looking statements to reflect events or circumstances that arise after the date of this release. This statement is included for the express purpose of invoking PSLRA's safe harbor provisions.

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


For the nine months ended
 September 30:                    2008       2007     $ Change   % Change
                                ---------  ---------  ---------  ---------
  Net interest income           $   6,486  $   6,755  $    (269)        -4%
  Provision for loan losses           605        185        420        227%
  Mortgage banking income             543        518         25          5%
  Other noninterest income            391        409        (18)        -4%
  Noninterest expense               6,621      5,906        715         12%
  Net income before taxes             194      1,591     (1,397)       -88%
  Income taxes                         35        531       (496)       -93%
  Net income                          159      1,060       (901)       -85%

  Earnings per share
    Basic                            0.09       0.58      (0.49)       -84%
    Diluted                          0.09       0.57      (0.48)       -84%

At September 30:                  2008       2007     $  Change   % Change
                                ---------  ---------  ---------  ---------
  Loans                         $ 199,788  $ 187,828  $  11,960          6%
  Allowance for loan losses         3,024      2,589        435         17%
  Assets                          239,051    232,867      6,184          3%
  Deposits                        181,288    190,488     (9,200)        -5%
  Shareholders' equity             17,724     17,051        673          4%
  Nonperforming loans               2,158          0      2,158        N/A
  Other real estate owned *           336          0        336        N/A

  Book value per share               9.63       9.37       0.26          3%
  Shares of common stock
   outstanding                  1,839,860  1,820,172     19,688          1%

  Allowance to loan ratio            1.51%      1.38%
  Allowance to nonperforming
   loans                              140%       N/A
  Nonperforming loans to total
   loans                             1.08%      0.00%

Averages for the nine months
 ended September 30:              2008       2007     $  Change   % Change
                                ---------  ---------  ---------  ---------
  Loans                         $ 193,672  $ 177,451  $  16,221          9%
  Earning assets                  226,537    214,281     12,256          6%
  Assets                          236,730    226,259     10,471          5%
  Deposits                        182,445    185,028     (2,583)        -1%
  Shareholders' equity             17,763     16,609      1,154          7%

For the nine months ended
 September 30:
  Return on average assets           0.09%      0.63%
  Return on average equity           1.20%      8.53%
  Average loans to deposits        106.15%     95.90%
  Net interest margin - tax
   equivalent                        3.88%      4.28%
  Net loan charge-offs
   (recoveries)                       204         15
  Net charge-offs (recoveries)
   to loans (annualized)             0.14%      0.01%

* Includes only retaken property.




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


                               2008 Q3  2008 Q2  2008 Q1  2007 Q4  2007 Q3
                               -------  -------  -------  -------  -------
  Net interest income          $ 2,250  $ 2,122  $ 2,114  $ 2,325  $ 2,280
  Provision for loan losses        260      200      145      125      145
  Mortgage banking income          168      161      214      197      185
  Other noninterest income         135      123      133      217      145
  Noninterest expense            2,044    2,443    2,134    1,955    1,986
  Net income before taxes          249     (237)     182      659      479
  Income taxes                      80      (98)      53      278      157
  Net income                       169     (139)     129      381      322

  Earnings per share
    Basic                         0.09    (0.08)    0.07     0.21     0.18
    Diluted                       0.09    (0.08)    0.07     0.21     0.17

  Average loans                197,948  193,323  189,698  194,381  182,808
  Average earning assets       227,730  228,614  223,253  227,257  220,128
  Average assets               238,021  238,248  233,908  238,798  232,011
  Average deposits             176,924  185,846  184,627  191,565  189,402
  Average shareholders'
   equity                       17,763   17,985   17,541   17,439   16,989

  Return on average assets        0.28%   -0.23%    0.22%    0.63%    0.55%
  Return on average equity        3.78%   -3.11%    2.96%    8.67%    7.52%
  Average loans to deposits     111.88%  104.02%  102.75%  101.47%   96.52%
  Net interest margin - tax
   equivalent                     3.99%    3.79%    3.87%    4.13%    4.18%

  Nonperforming loans -
   period end                  $ 2,158  $    60  $   316  $   911  $     -
  Other real estate owned -
   period end *                    336      206        -        -        -
  Loans - period end           199,788  196,894  189,284  190,366  187,828
  Allowance for loan losses -
   period end                    3,024    2,868    2,662    2,623    2,589
  Net charge-offs (recoveries)
   - quarterly                     104       (6)     106       91       12

  Allowance to loans              1.51%    1.46%    1.41%    1.38%    1.38%
  Allowance to nonperforming
   loans                           140%   4,780%     842%     288%     N/A
  Nonperforming loans to total
   loans                          1.08%    0.03%    0.17%    0.48%    0.00%
  Net charge-offs to loans -
   annualized                     0.21%   -0.01%    0.22%    0.19%    0.03%

* Includes only retaken property.

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