Idaho Banking Company Reports Quarterly Results

Apr 20, 2001, 01:00 ET from Idaho Banking Company

    BOISE, Idaho, April 20 /PRNewswire Interactive News Release/ -- Idaho
 Banking Company (OTC Bulletin Board:   IBCB) today reported net income of
 $32,000 for the first quarter of 2001, or $.04 per share.  Net income in the
 first quarter of 2000 was $22,000.  Although the current year's earnings
 represent an improvement over the same period last year, they are negatively
 impacted by a $175,000 provision for loan losses in the first quarter,
 compared to $90,000 last year.  The net interest margin was 4.49% for the
 first quarter, compared to 4.64% a year ago, due to pressure from recent
 declines in interest rates.  However, the decreasing interest rates benefited
 the Bank's mortgage operation, as mortgage banking income increased from
 $77,000 last year to $181,000 in the first quarter of this year.
     Loans declined slightly in the first quarter this year from 2000 year-end
 levels, as the management of loan quality, refinements in loan policies, and
 underwriting standards received increased attention.  Net loan charge-offs
 totaled $134,000 in the first quarter, compared to $254,000 of net charge-offs
 in the last quarter of 2000.  Although the decrease in loan charge-offs is a
 welcomed improvement, management is still not content with this level of
 activity and is spending considerable efforts to reduce future loan losses.
 The allowance for loan losses was increased slightly during the quarter from
 1.30% at the end of the year to 1.37% of total loans at March 31.
     Shareholders' equity remained strong, with a capital to asset ratio of
 10.42% at the end of the quarter.  Book value per share has increased from
 $12.46 a year ago to $12.84 at March 31, 2001.  Positive branch growth
 continued during the first quarter of the year.  The ParkCenter branch
 reported its first quarter of income at March 31, and the Eagle branch posted
 its second quarter of profit.  As consolidations and mergers continue to occur
 among larger banks management is confident the expansions that took place
 during the past few years will begin to be favorably reflected by increased
 growth and profitability in the future.
 
     Idaho Banking Company, a state-chartered commercial bank, was organized in
 1996.  Its primary emphasis is providing personalized service and local
 decision-making for clients seeking a change from the automated and impersonal
 "big bank" atmosphere.  The bank operates from three branch offices and one
 mortgage office in Ada County.
 
     For further information, please contact Cortland D. Rounds, President/CEO
 at 208-472-4700, Mary E. Brimson, VP Shareholder Relations at 208-472-4705, or
 Don D. Madsen, CFO at 208-947-1880.
 
 
                             Idaho Banking Company
                        Financial Highlights (unaudited)
 
 
         For the quarter                                        Change
          ended March 31:      2001          2000           $            %
        Net interest income    $969          $761         $208           27%
        Provision for loan
         losses                 175            90           85           94%
        Mortgage banking income 181            77          104          135%
        Gains on loan sales      29            11           18          164%
        Other noninterest
         income                 103           102            1            1%
        Noninterest expense   1,067           839          228           27%
        Net income before taxes  40            22           18           82%
        Income taxes              8             0            8
        Net income               32            22           10           45%
 
        Net income per share
            Basic              0.04          0.03         0.01           33%
            Diluted            0.04          0.03         0.01           33%
 
                                                                 Change
      At March 31:            2001          2000           $              %
        Loans               $67,105       $47,644      $19,461           41%
        Allowance for loan
         losses                 916           619          297           48%
        Assets               96,601        74,500       22,101           30%
        Deposits             80,433        63,301       17,132           27%
        Shareholders' equity 10,067         9,751          316            3%
 
        Book value per share  12.84         12.46         0.38            3%
 
        Allowance to loan
         ratio                1.37%         1.30%
 
      Averages for the
       quarter ended                                             Change
       March 31:               2001          2000            $             %
        Loans               $67,089       $45,100      $21,989           49%
        Earning assets       89,266        67,493       21,773           32%
        Assets               95,361        72,864       22,497           31%
        Deposits             78,949        58,578       20,371           35%
        Shareholders' equity 10,006         9,711          295            3%
 
        Return on average
         assets               0.14%         0.12%
        Return on average
         equity               1.30%         0.91%
        Average loans
         to deposits         84.98%        76.99%
        Net interest margin
         - tax equivalent     4.49%         4.64%
 
 
      Quarterly Trends
       (Unaudited)             2001 Q1    2000 Q4    2000 Q3   2000 Q2
 2000 Q1
        Net interest income      $969     $1,009      $917      $858     $761
        Provision for loan losses 175        355       120       120       90
        Mortgage banking income   181        109       150       112       77
        Gains on loan sales        29          0        28        58       11
        Other noninterest income  103        118       112       130      102
        Noninterest expense     1,067      1,017       997       970      839
        Net income before taxes    40       (136)       90        68       22
        Income taxes                8        (65)       24         4        0
        Net income                 32        (71)       66        64       22
 
        Net income per share
          Basic                  0.04      (0.09)     0.08      0.08     0.03
          Diluted                0.04      (0.09)     0.08      0.08     0.03
 
        Average loans          67,089     63,603    56,112    50,897   45,100
        Average earning
         assets                89,266     85,203    76,796    70,370   67,493
        Average assets         95,361     91,559    83,081    75,972   72,864
        Average deposits       78,949     76,419    68,435    62,370   58,578
        Average shareholders'
         equity                10,006      9,978     9,870     9,763    9,711
 
        Return on average
         assets                 0.14%     -0.31%     0.32%     0.34%    0.12%
        Return on average
         equity                 1.30%     -2.83%     2.66%     2.64%    0.91%
        Average loans to
         deposits              84.98%     83.23%    81.99%    81.60%   76.99%
        Net interest margin
         - tax equivalent       4.49%      4.79%     4.86%     5.00%    4.64%
 
        Nonperforming loans
         - period end            $121        $93      $213       $67     $344
        Other real estate owned
         - period end              65         65       290       290        0
        Loans - period end     67,105     67,159    58,921    53,456   47,644
 
        Allowance for loan
         losses - period end      916        875       775       741      619
        Net charge-offs
         (recoveries)
         - quarterly              134        254        86       (2)        2
 
        Allowance to loans      1.37%      1.30%     1.32%     1.39%    1.30%
        Allowance to
         nonperforming loans     7.6X       9.4X      3.6X     11.1X     1.8X
        Quarterly net
         charge-offs
         - annualized           0.81%      1.59%     0.61%    -0.02%    0.02%
 
 
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SOURCE Idaho Banking Company
    BOISE, Idaho, April 20 /PRNewswire Interactive News Release/ -- Idaho
 Banking Company (OTC Bulletin Board:   IBCB) today reported net income of
 $32,000 for the first quarter of 2001, or $.04 per share.  Net income in the
 first quarter of 2000 was $22,000.  Although the current year's earnings
 represent an improvement over the same period last year, they are negatively
 impacted by a $175,000 provision for loan losses in the first quarter,
 compared to $90,000 last year.  The net interest margin was 4.49% for the
 first quarter, compared to 4.64% a year ago, due to pressure from recent
 declines in interest rates.  However, the decreasing interest rates benefited
 the Bank's mortgage operation, as mortgage banking income increased from
 $77,000 last year to $181,000 in the first quarter of this year.
     Loans declined slightly in the first quarter this year from 2000 year-end
 levels, as the management of loan quality, refinements in loan policies, and
 underwriting standards received increased attention.  Net loan charge-offs
 totaled $134,000 in the first quarter, compared to $254,000 of net charge-offs
 in the last quarter of 2000.  Although the decrease in loan charge-offs is a
 welcomed improvement, management is still not content with this level of
 activity and is spending considerable efforts to reduce future loan losses.
 The allowance for loan losses was increased slightly during the quarter from
 1.30% at the end of the year to 1.37% of total loans at March 31.
     Shareholders' equity remained strong, with a capital to asset ratio of
 10.42% at the end of the quarter.  Book value per share has increased from
 $12.46 a year ago to $12.84 at March 31, 2001.  Positive branch growth
 continued during the first quarter of the year.  The ParkCenter branch
 reported its first quarter of income at March 31, and the Eagle branch posted
 its second quarter of profit.  As consolidations and mergers continue to occur
 among larger banks management is confident the expansions that took place
 during the past few years will begin to be favorably reflected by increased
 growth and profitability in the future.
 
     Idaho Banking Company, a state-chartered commercial bank, was organized in
 1996.  Its primary emphasis is providing personalized service and local
 decision-making for clients seeking a change from the automated and impersonal
 "big bank" atmosphere.  The bank operates from three branch offices and one
 mortgage office in Ada County.
 
     For further information, please contact Cortland D. Rounds, President/CEO
 at 208-472-4700, Mary E. Brimson, VP Shareholder Relations at 208-472-4705, or
 Don D. Madsen, CFO at 208-947-1880.
 
 
                             Idaho Banking Company
                        Financial Highlights (unaudited)
 
 
         For the quarter                                        Change
          ended March 31:      2001          2000           $            %
        Net interest income    $969          $761         $208           27%
        Provision for loan
         losses                 175            90           85           94%
        Mortgage banking income 181            77          104          135%
        Gains on loan sales      29            11           18          164%
        Other noninterest
         income                 103           102            1            1%
        Noninterest expense   1,067           839          228           27%
        Net income before taxes  40            22           18           82%
        Income taxes              8             0            8
        Net income               32            22           10           45%
 
        Net income per share
            Basic              0.04          0.03         0.01           33%
            Diluted            0.04          0.03         0.01           33%
 
                                                                 Change
      At March 31:            2001          2000           $              %
        Loans               $67,105       $47,644      $19,461           41%
        Allowance for loan
         losses                 916           619          297           48%
        Assets               96,601        74,500       22,101           30%
        Deposits             80,433        63,301       17,132           27%
        Shareholders' equity 10,067         9,751          316            3%
 
        Book value per share  12.84         12.46         0.38            3%
 
        Allowance to loan
         ratio                1.37%         1.30%
 
      Averages for the
       quarter ended                                             Change
       March 31:               2001          2000            $             %
        Loans               $67,089       $45,100      $21,989           49%
        Earning assets       89,266        67,493       21,773           32%
        Assets               95,361        72,864       22,497           31%
        Deposits             78,949        58,578       20,371           35%
        Shareholders' equity 10,006         9,711          295            3%
 
        Return on average
         assets               0.14%         0.12%
        Return on average
         equity               1.30%         0.91%
        Average loans
         to deposits         84.98%        76.99%
        Net interest margin
         - tax equivalent     4.49%         4.64%
 
 
      Quarterly Trends
       (Unaudited)             2001 Q1    2000 Q4    2000 Q3   2000 Q2
 2000 Q1
        Net interest income      $969     $1,009      $917      $858     $761
        Provision for loan losses 175        355       120       120       90
        Mortgage banking income   181        109       150       112       77
        Gains on loan sales        29          0        28        58       11
        Other noninterest income  103        118       112       130      102
        Noninterest expense     1,067      1,017       997       970      839
        Net income before taxes    40       (136)       90        68       22
        Income taxes                8        (65)       24         4        0
        Net income                 32        (71)       66        64       22
 
        Net income per share
          Basic                  0.04      (0.09)     0.08      0.08     0.03
          Diluted                0.04      (0.09)     0.08      0.08     0.03
 
        Average loans          67,089     63,603    56,112    50,897   45,100
        Average earning
         assets                89,266     85,203    76,796    70,370   67,493
        Average assets         95,361     91,559    83,081    75,972   72,864
        Average deposits       78,949     76,419    68,435    62,370   58,578
        Average shareholders'
         equity                10,006      9,978     9,870     9,763    9,711
 
        Return on average
         assets                 0.14%     -0.31%     0.32%     0.34%    0.12%
        Return on average
         equity                 1.30%     -2.83%     2.66%     2.64%    0.91%
        Average loans to
         deposits              84.98%     83.23%    81.99%    81.60%   76.99%
        Net interest margin
         - tax equivalent       4.49%      4.79%     4.86%     5.00%    4.64%
 
        Nonperforming loans
         - period end            $121        $93      $213       $67     $344
        Other real estate owned
         - period end              65         65       290       290        0
        Loans - period end     67,105     67,159    58,921    53,456   47,644
 
        Allowance for loan
         losses - period end      916        875       775       741      619
        Net charge-offs
         (recoveries)
         - quarterly              134        254        86       (2)        2
 
        Allowance to loans      1.37%      1.30%     1.32%     1.39%    1.30%
        Allowance to
         nonperforming loans     7.6X       9.4X      3.6X     11.1X     1.8X
        Quarterly net
         charge-offs
         - annualized           0.81%      1.59%     0.61%    -0.02%    0.02%
 
 
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 SOURCE  Idaho Banking Company