IDFB Peak Bancorp Inc (PK)

Today Idaho First Bank (OTCBB: IDFB) reported financial results for the first quarter of 2009. The Bank continues to report significant growth. Loans grew to $55.4 million at March 31, a 51% increase from one year ago. Deposits grew by 53% during the same period.

The net loss reported for the first quarter of 2009 was $395,000 compared with a loss of $728,000 in the first quarter of 2008 and $603,000 in the fourth quarter of 2008. The first quarter 2009 loss is less than those earlier quarters because of a reduced provision for credit losses. Net interest margin continued to contract as a result of extremely low interest rates but now appears to be stabilizing.

The allowance for loan losses was 1.54% of total loans at the end of the quarter and was 49% of nonperforming loans at March 31, 2009. The Bank continues to be impacted by worsening economic conditions both nationally and locally. As of March 31, 2009, nonperforming loans increased to $1,731,000, or 3.12% of loans. In addition, the Bank had $519,000 of other real estate owned bringing total nonperforming assets to $2,250,000. "The Bank's lending staff is working diligently with our clients to identify potential problems early and to begin mitigation actions as soon as possible," stated President and CEO Greg Lovell. He further noted that "despite these diligent efforts the economic climate will continue to be a negative impact on growth and credit this year."

On April 28, 2009, the Bank signed a Preferred Stock Purchase Agreement with Alcar, LLC wherein Alcar agrees to purchase $7.1 million of newly issued preferred stock of the Bank. The preferred stock will be convertible to common stock at a price of $5.00 per share, at their option, but not later than December 31, 2012. The preferred stock will have voting rights and will not pay dividends. The finalization of this investment is subject to approval by the bank regulatory agencies. The regulatory approvals are expected to be gained during the third quarter of 2009. When the investment is complete Mr. Robert Hirt and Mr. Gary Lieberman will represent this major investment by joining the Board of Directors.

Mr. Lieberman is the founder and Managing Director of Westside Advisors, LLC, an investment management firm located in New York City. Mr. Hirt is the founder and CEO of RPM Mortgage, Inc. of Walnut Creek, California. His company will originate approximately $3 billion in new residential mortgages this year in the twelve states in which they operate.

This investment will be subject to shareholder approval which should be completed before the end of the second quarter. Idaho First Bank is one of the few banks in the nation to have raised private capital this year. "We believe this investment significantly strengthens the balance sheet of the bank and provides a very solid base to reach profitability," said Mr. Lovell. "We are pleased to affiliate with a Bank that has established an impressive market share in a short time," stated Mr. Lieberman. Mr. Hirt added, "We believe that the combination of banking, investment, and mortgage lending will allow us to build a powerful and stable financial services company."

This capital infusion is extremely good news for all shareholders as it will allow the Bank to attain profitability shortly following the close of the transaction. Shareholders will receive additional information in the near future regarding this transaction.

Idaho First Bank is a state-chartered commercial bank that opened for business in October 2005. Its headquarters are located in McCall, Idaho, with a loan production office in downtown Boise. The stock is traded over-the-counter under symbol IDFB.OB.

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.

                             Idaho First Bank
                     Financial Highlights (unaudited)
                 (Dollars in thousands, except per share)


For the three months ended March 31:    2009       2008         Change
                                     ---------  ---------  ---------------
  Net interest income                $     556  $     420  $     136    32%
  Provision for loan losses                225        410       (185)  -45%
  Mortgage banking income                   65         33         32    97%
  Other noninterest income                  49         43          6    14%
  Noninterest expenses                     840        814         26     3%

     Net loss                             (395)      (728)       333    46%

At March 31:                            2009       2008         Change
                                     ---------  ---------  ---------------
  Loans                              $  55,394  $  36,689  $  18,705    51%
  Allowance for loan losses                854        462        392    85%
  Assets                                67,558     46,193     21,365    46%
  Deposits                              56,786     36,998     19,788    53%
  Stockholders' equity                   6,124      5,361        763    14%

  Nonaccrual loans                       1,133        147        986
  Accruing loan more than 90 days
   past due                                598                   598
  Other real estate owned                  519                   519
     Total nonperforming assets          2,250        147      2,103
  Book value per share                    4.45       5.88      (1.43)  -24%
  Shares outstanding                 1,376,584    910,964    465,620    51%
  Allowance to loans                      1.54%      1.26%
  Allowance to nonperforming loans          49%       314%
  Nonperforming loans to total loans      3.12%      0.40%

Averages for the three months ended
 March 31:                              2009       2008         Change
                                     ---------  ---------  ---------------
  Loans                              $  53,814  $  31,195  $  22,619    73%
  Earning assets                        65,418     40,563     24,855    61%
  Assets                                68,547     42,984     25,563    59%
  Deposits                              58,083     34,255     23,828    70%
  Stockholders' equity                   6,057      5,717        340     6%
  Loans to deposits                         93%        91%
  Net interest margin                     3.45%      4.16%





                             Idaho First Bank
                Quarterly Financial Highlights (unaudited)
                          (Dollars in thousands)


                          Q1 2009   Q4 2008   Q3 2008   Q2 2008   Q1 2008
                          --------  --------  --------  --------  --------
  Net interest income     $    556  $    537  $    543  $    477  $    420
  Provision for loan
   losses                      225       400       175        65       410
  Mortgage banking income       65        21        58        49        33
  Other noninterest
   income                       49        50        65        48        43
  Noninterest expenses         840       811       840       836       814

    Net loss                  (395)     (603)     (349)     (327)     (728)

Period End Information     Q1 2009   Q4 2008   Q3 2008   Q2 2008   Q1 2008
                          --------  --------  --------  --------  --------
  Loans                   $ 55,394  $ 51,665  $ 45,833  $ 42,123  $ 36,689
  Allowance for loan
   losses                      854       741       697       527       462
  Nonperforming loans        1,731     1,150       428       147       147
  Other real estate owned      519       459
  Quarterly net
   charge-offs                 112       356         5         -       348

  Allowance to loans          1.54%     1.43%     1.52%     1.25%     1.26%
  Allowance to
   nonperforming loans          49%       64%      163%      359%      314%
  Nonperforming loans to
   loans                      3.12%     2.23%     0.93%     0.35%     0.40%

Average Balance
 Information               Q1 2009   Q4 2008   Q3 2008   Q2 2008   Q1 2008
                          --------  --------  --------  --------  --------
  Loans                   $ 53,814  $ 47,504  $ 43,025  $ 39,929  $ 31,195
  Earning assets            65,418    60,269    56,757    48,764    40,563
  Assets                    68,547    62,853    59,588    51,281    42,984
  Deposits                  58,083    53,441    50,236    42,810    34,255
  Stockholders' equity       6,057     5,991     5,615     5,039     5,717

  Loans to deposits             93%       89%       86%       93%       91%
  Net interest margin         3.45%     3.54%     3.81%     3.93%     4.16%

Contacts: Greg Lovell President and CEO 208-630-2001 Don Madsen CFO 208-947-0430