Today Idaho First Bank (OTCBB: IDFB) reported financial results for
the first half of 2009. The Bank continues to report significant
growth. Loans grew to $58.3 million at June 30, a 38% increase from
one year ago.
The net loss reported for the first half of 2009 was $778,000
compared with a loss of $1,055,000 in the first half of 2008. The
provision for loan losses was $775,000 for the first six months of
2009 compared to $475,000 in the same period due to increased loan
charge-offs. Helping to offset the large provision for loan losses,
the bank sold investment securities and realized gains of $336,000
in the second quarter of 2009. While net interest income increased
by 28%, net interest margin contracted as a result of extremely low
interest rates and rates on variable rate loans falling more
rapidly than deposit rates.
The year-to-year increase in noninterest expenses was partially
due to significant increases in FDIC insurance assessments,
including an industry-wide special assessment in the second
quarter. Expenses were also high due to costs associated with a
proposed capital investment. The agreement for an investment group
to purchase $7.1 million of preferred stock in the Bank was signed
in April, but was terminated in June as the investor group proposed
changes in the agreement that were unacceptable to the Board of
Directors. "We are taking steps to further reduce costs including
reduction in executive compensation, staff positions, and
renegotiation of contracts," stated President and CEO Greg
Lovell.
The allowance for loan losses was 1.39% of total loans at the
end of the quarter and was 39% of nonperforming loans at June 30,
2009. The Bank continues to be impacted by unfavorable economic
conditions both nationally and locally. As of June 30, 2009,
nonperforming loans increased to $2,096,000, or 3.59% of loans. In
addition, the Bank had $519,000 of other real estate owned bringing
total nonperforming assets to $2,615,000. "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 Lovell. He further noted, "Despite these diligent
efforts the economic climate will continue to be a negative impact
on growth and credit quality this year."
The Bank was "well-capitalized" for regulatory purposes at June
30, 2009. The Bank is vigorously pursuing several sources and types
of additional capital, with a plan to raise at least $1.5 million
during the third quarter of 2009.
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.
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 six months ended June 30: 2009 2008 Change
--------- --------- ---------------
Net interest income $ 1,152 $ 897 $ 255 28%
Provision for loan losses 775 475 300 63%
Investment securities gains 336 336
Mortgage banking income 164 82 82 100%
Other noninterest income 105 91 14 15%
Noninterest expenses 1,760 1,650 110 7%
Net loss (778) (1,055) 277 26%
At June 30: 2009 2008 Change
--------- --------- ---------------
Loans $ 58,328 $ 42,123 $ 16,205 38%
Allowance for loan losses 810 527 283 54%
Assets 64,597 54,445 10,152 19%
Deposits 50,803 45,708 5,095 11%
Stockholders' equity 5,487 5,313 174 3%
Nonaccrual loans 1,261 147 1,114 758%
Accruing loan more than 90 days
past due 835 835
Other real estate owned 519 519
Total nonperforming assets 2,615 147 2,468 1679%
Book value per share 3.99 5.38 (1.39) -26%
Shares outstanding 1,376,584 987,964 388,620 39%
Allowance to loans 1.39% 1.25%
Allowance to nonperforming loans 39% 359%
Nonperforming loans to total
loans 3.59% 0.35%
Averages for the six months ended
June 30: 2009 2008 Change
--------- --------- ---------------
Loans $ 55,587 $ 35,562 $ 20,025 56%
Earning assets 64,716 44,664 20,052 45%
Assets 67,576 47,132 20,444 43%
Deposits 56,816 38,533 18,283 47%
Stockholders' equity 5,818 5,378 440 8%
Loans to deposits 98% 92%
Net interest margin 3.59% 4.04%
Idaho First Bank
Quarterly Financial Highlights (unaudited)
(Dollars in thousands)
Q2 2009 Q1 2009 Q4 2008 Q3 2008 Q2 2008
------- ------- ------- ------- -------
Net interest income $ 596 $ 556 $ 537 $ 543 $ 477
Provision for loan losses 550 225 400 175 65
Investment securities gains 336 9
Mortgage banking income 99 65 21 58 49
Other noninterest income 56 49 50 56 48
Noninterest expenses 920 840 811 840 836
Net loss (383) (395) (603) (349) (327)
Period End Information Q2 2009 Q1 2009 Q4 2008 Q3 2008 Q2 2008
------- ------- ------- ------- -------
Loans $58,328 $55,394 $51,665 $45,833 $42,123
Allowance for loan losses 810 854 741 697 527
Nonperforming loans 2,096 1,731 1,150 428 147
Other real estate owned 519 519 459
Quarterly net charge-offs 595 112 356 5 -
Allowance to loans 1.39% 1.54% 1.43% 1.52% 1.25%
Allowance to nonperforming
loans 39% 49% 64% 163% 359%
Nonperforming loans to loans 3.59% 3.12% 2.23% 0.93% 0.35%
Average Balance Information Q2 2009 Q1 2009 Q4 2008 Q3 2008 Q2 2008
------- ------- ------- ------- -------
Loans $57,340 $53,814 $47,504 $43,025 $39,929
Earning assets 64,022 65,418 60,269 56,757 48,764
Assets 66,616 68,547 62,853 59,588 51,281
Deposits 55,563 58,083 53,441 50,236 42,810
Stockholders' equity 5,582 6,057 5,991 5,615 5,039
Loans to deposits 103% 93% 89% 86% 93%
Net interest margin 3.73% 3.45% 3.54% 3.81% 3.93%
Contacts: Greg Lovell President and CEO 208-630-2001 or Don
Madsen CFO 208-947-0430
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