Idaho Independent Bank Announces 2013 Third Quarter and Year-to-Date Results

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COEUR D'ALENE, Idaho, Oct. 23, 2013 (GLOBE NEWSWIRE) -- Jack W. Gustavel, Chairman and Chief Executive Officer of Idaho Independent Bank ("IIB" or the "Bank") (OTC BB:IIBK), announced IIB's consolidated unaudited financial results for the third quarter and nine months ended September 30, 2013.

Mr. Gustavel reported that IIB's net income for the quarter ended September 30, 2013, was $1.0 million, or $0.12 per diluted share, compared to a net loss of $5.0 million, or $(0.61) per diluted share, for the same period a year ago. IIB's net income for the nine months ended September 30, 2013, was $1.8 million, or $0.22 per diluted share, compared to a net loss of $5.9 million, or $(0.72) per diluted share, for the same nine-month period of 2012. Chairman Gustavel stated, "We are pleased to report significant improvement in asset quality and positive earnings for the fourth consecutive quarter."

The Bank's total assets as of September 30, 2013, increased $52.7 million, or 11.6%, to $505.7 million from $453.0 million at September 30, 2012. Deposits and repurchase agreements increased $49.7 million, or 12.9%, to $434.1 million from $384.4 million at September 30, 2012. Total loans decreased $8.8 million since September 2012 but that decrease included a $12.7 million reduction in nonperforming loans. Also, during that same time frame, other real estate owned decreased $5.4 million. IIB's reserve for loan losses was $5.8 million as of the end of the quarter, or 2.6% of total loans, excluding loans held-for-sale, while net charge-offs for the quarter ended September 30, 2013, were only $9,000.

The Bank's income tax expense for the quarter was offset by a reduction in its valuation allowance against net deferred tax assets. As of September 30, 2013, the Bank still carried a valuation allowance of $8.4 million that may be used to reduce future income tax expenses.

The Bank's capital ratios continue to exceed the thresholds required to be considered "Well-Capitalized" under regulatory guidelines. The Bank's Tier One Capital Ratio and Total Risk-Based Capital Ratio were 11.2% and 16.2%, respectively, at September 30, 2013.

IIB filed its Consolidated Report of Condition and Income for the quarter ended September 30, 2013, (the "Call Report") with the Federal Deposit Insurance Corporation on October 21, 2013. The Call Report is available on the Federal Financial Institutions Examinations Council website at

About IIB

IIB was established in 1993 as an Idaho state-chartered, commercial bank and currently operates three branches in Boise, as well as branches in Meridian, Coeur d'Alene, Nampa, Mountain Home, Hayden, Caldwell, Star, and Sun Valley/Ketchum, Idaho. IIB has approximately 190 employees throughout the State of Idaho. To learn more about IIB, visit us online at

Statements contained herein concerning future performance, developments or events, expectations for earnings, growth and market forecasts, and similar statements that are not historical facts are intended to be "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995, and as such, are subject to a number of risks and uncertainties that might cause actual results to differ materially from expectations or our stated objectives. Factors that could cause actual results to differ materially, include, but are not limited to, continued declines or worsening in regional and general economic conditions; changes in interest rates, deposit flows, demand for loans, real estate values, competition, or loan delinquency rates; changes in accounting principles, practices, policies, or guidelines; changes in legislation or regulations; changes in the regulatory environment; changes in monetary policy of the Federal Reserve Bank; changes in fiscal policy of the Federal government and the State of Idaho; changes in other economic, competitive, governmental, regulatory and technological factors affecting operations, pricing, products, and services; material unforeseen changes in the liquidity, results of operations, or financial condition of the Bank's customers. Accordingly, these factors should be considered in evaluating forward-looking statements, and undue reliance should not be placed on such statements. The Bank undertakes no responsibility to update or revise any forward-looking statements.

Idaho Independent Bank
Financial Highlights (unaudited)
(dollars in thousands, except share data)
Three Months Ended Nine Months Ended
2013 2012 2013 2012
Net interest income $ 4,750 $ 3,431 $ 11,199 $ 10,097
Provision for loan losses -- 3,200 265 4,058
Net interest income after provision for loan losses 4,750 231 10,934 6,039
Noninterest income 1,517 2,026 5,748 4,586
Noninterest expense 5,264 7,233 14,874 16,476
Net income (loss) before taxes 1,003 (4,976) 1,808 (5,851)
Income tax expense -- -- -- --
Net income (loss) $ 1,003 $ (4,976) $ 1,808 $ (5,851)
Earnings (loss) per share:
Basic $ 0.12 $ (0.61) $ 0.22 $ (0.72)
Diluted $ 0.12 $ (0.61) $ 0.22 $ (0.72)
2013 2012
Loans held for sale $ 4,227 $ 5,692
Loans receivable 227,782 235,112
Gross loans 232,009 240,804
Allowance for loan losses 5,818 6,893
Total assets 505,660 452,976
Deposits 418,838 370,592
Customer repurchase agreements 15,218 13,841
Total deposits and repurchase agreements 434,056 384,433
Stockholders' equity 52,962 51,002
Common shares outstanding 8,181,109 8,181,109
Book value per share $ 6.47 $ 6.23
Tier 1 capital (to average assets) 11.23% 11.21%
Tier 1 capital (to risk-weighted assets) 14.90% 14.67%
Total risk-based capital (to risk-weighted assets) 16.15% 15.94%
Three Months Ended Nine Months Ended
PERFORMANCE RATIOS (annualized) September 30, September 30,
2013 2012 2013 2012
Return on average assets 0.85% -4.36% 0.52% -1.74%
Return on average equity 7.54% -35.45% 4.63% -13.85%
Efficiency ratio 84.00% 132.55% 87.77% 112.21%
Net interest margin 4.47% 3.40% 3.60% 3.40%

CONTACT: Jack W. Gustavel IDAHO INDEPENDENT BANK 1260 W. Riverstone Drive Coeur d'Alene, Idaho 83814 (208) 292-1902

Source:Idaho Independent Bank