Published: July 28, 2010
Idaho Bancorp Reports Mid-Year Results
Today Idaho Bancorp (the "Company") (OTCBB: IDBC), reported its wholly owned subsidiary, Idaho Banking Company (the
"Bank"), continues to be "adequately capitalized" with total risk based
capital of 8.74%. Also the Board of Directors has approved extending the
rights offering for up to $5,000,000 in additional capital until August 31,
2010.
Management has strengthened the Bank's liquidity position by 15.72% with
$56,542,000 of available liquidity at June 30, 2010 compared to $48,858,000
at June 30, 2009. The Company's results of operations for the first six
months of 2010 improved from the same time period in 2009 with year-to-date
net losses applicable to common shareholders reduced by 19.4% or
$1,190,000. The year-to-date losses for June 30, 2010 were $4,938,000
compared to $6,128,000 at June 30, 2009. This year's reported losses were
($2.68) per common share compared to a net loss of ($3.33) per common share
for the first six months of 2009.
In light of continued economic weakness, the Company increased its
allowance for loan losses to 5.72% of outstanding loans at June 30, 2010
compared to 3.86% as of June 30, 2009 and 4.63% as of December 31, 2009.
The Company's nonperforming loans as of June 30, 2010 decreased 30.68% or
$6,872,000 from December 31, 2009, but increased $1,016,000 from the June
30, 2009 balance of $14,508,000. Year-to-date net charge-offs through June
30, 2010 were $3,750,000 compared to $3,870,000 for the same time period in
2009.
The net interest margin for the six-month period ended June 30, 2010 was
3.00% compared to 3.64% for the same time period in 2009. The reduction in
the net interest margin is mostly due to the increase in the Company's
nonperforming loans. But also an increase in the Company's liquid assets
has added to the decline in the Company's net interest margin.
The Company has improved its noninterest income by 30.30% through June 2010
compared to the prior year. Included in the noninterest income are gains
of $641,000 from the sale of available-for-sale securities. The Mortgage
Department has seen a sharp increase in originations during July 2010 but
actual loan origination activity trails 2009 year-to-date. The Company's
Mortgage Department continues to be very active in providing funds for
individuals and families looking to buy or refinance homes in the Idaho
market.
The Company also continues to focus on reducing its noninterest expenses.
The Company has trimmed its full time equivalent employees to 71 as of June
30, 2010 from 82 at June 30, 2009. Salaries, excluding mortgage
commissions, have declined by approximately $243,000 or 12.49% when
comparing the first six months of 2010 to the same period in 2009. The
Company has cut year-to-date costs for travel and entertainment, telephone,
postage and freight and various other costs. However, due to increased
FDIC fee assessments, the Company's 2010 year-to-date FDIC insurance costs
have increased by $247,000, or 178.99% over the same time period in 2009.
Idaho Bancorp is the parent company of Idaho Banking Company, a
state-chartered commercial bank and member of the Federal Reserve System,
which was organized in 1996 and operates four branch offices. The Company
serves clients throughout southwestern Idaho.
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 Subsidiary
Consolidated Balance Sheets
Unaudited
As of June 30,
2010 2009
------------ ------------
Assets
Cash and due from banks $ 15,850,393 $ 2,941,114
Interest bearing deposits with banks 46,467 112,100
Federal funds sold 61,929 -
Investment securities 28,540,760 29,227,147
Loans receivable 157,903,004 196,341,002
Allowance for loan losses (9,025,545) (7,583,257)
------------ ------------
Net loans receivable 148,877,459 188,757,745
Premises and equipment, net 4,158,165 4,872,650
Other real estate owned 10,440,298 1,436,934
Other assets 3,354,515 5,881,815
------------ ------------
Total assets 211,329,986 233,229,505
============ ============
Liabilities
Deposits:
Noninterest-bearing demand 23,930,166 26,645,373
Interest-bearing demand 9,255,853 8,503,559
Savings 28,560,941 57,130,505
Time deposits of less than $100,000 84,141,811 78,664,336
Time deposits of $100,000 and more 34,787,095 19,832,120
------------ ------------
Total deposits 180,675,866 190,775,893
Borrowed funds 22,851,903 25,128,564
Other liabilities 1,392,978 1,136,499
------------ ------------
Total liabilities 204,920,747 217,040,956
------------ ------------
Shareholders' Equity
Preferred stock - Series A Cumulative Perpetual;
$1 par value; $1,000 liquidation value;
6,900 shares authorized and issued 6,611,304 6,546,168
Preferred stock - Series B Cumulative Perpetual;
$1 par value; $1,000 liquidation value;
345 shares authorized and issued 392,196 388,332
Common stock $1.00 par value: 20,000,000 shares
authorized,
(At June 30, 2010 and June 30, 2009:
1,877,361 issued and 1,842,355 outstanding
and 1,877,361 issued and 1,841,128
outstanding, respectively). 1,877,361 1,877,361
Capital surplus 12,328,689 12,288,878
Treasury stock at cost (35,006 and 36,233
shares respectively) (535,673) (557,445)
Retained earnings/(Accumulated deficit) (14,521,297) (4,011,585)
Accumulated other comprehensive income/(loss) 256,659 (343,161)
------------ ------------
Total shareholders' equity 6,409,239 16,188,548
------------ ------------
Total liabilities and shareholders' equity 211,329,986 233,229,504
============ ============
Idaho Bancorp and Subsidiary
Consolidated Statements of Operations
Unaudited
For the six months ended June 30,
2010 2009
----------- -----------
Interest income:
Loans receivable $ 4,589,119 $ 5,860,550
Investment securities 674,486 786,636
Federal funds sold 12,713 409
Interest bearing deposits with banks 17 2,353
----------- -----------
Total interest income 5,276,335 6,649,948
----------- -----------
Interest expense:
Deposits 1,613,227 2,023,840
Other 499,780 563,430
----------- -----------
Total interest expense 2,113,007 2,587,270
----------- -----------
Net interest income 3,163,328 4,062,678
Provision for loan losses 4,250,000 6,900,000
----------- -----------
Net interest income/(loss) after
provision for loan losses (1,086,672) (2,837,322)
----------- -----------
Noninterest income:
Mortgage banking income 280,347 622,884
Service charges on deposit accounts 89,575 114,653
Other 794,161 155,848
----------- -----------
Total noninterest income 1,164,083 893,385
----------- -----------
Noninterest expense:
Compensation and benefits 2,164,943 2,647,861
Occupancy and equipment 471,450 514,541
Other 2,156,193 1,324,121
----------- -----------
Total noninterest expense 4,792,586 4,486,523
----------- -----------
Income/(Loss) before income taxes (4,715,175) (6,430,460)
Income tax expense/(benefit) - (461,000)
----------- -----------
Net income (4,715,175) (5,969,460)
----------- -----------
Preferred stock dividends 188,025 124,305
Preferred stock discount accretion, net 34,500 34,500
----------- -----------
Net loss applicable to common shares (4,937,700) (6,128,265)
=========== ===========
Diluted loss per common share $ (2.68) $ (3.33)
=========== ===========
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