Idaho Independent Bank Announces 2013 Fourth Quarter and Year-End Results

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COEUR D'ALENE, Idaho, Jan. 30, 2014 (GLOBE NEWSWIRE) -- Jack W. Gustavel, Chairman and Chief Executive Officer of Idaho Independent Bank ("IIB" or the "Bank") (OTCBB:IIBK), announced IIB's consolidated unaudited financial results for the fourth quarter and year ended December 31, 2013.

Mr. Gustavel reported that IIB's net income for the fourth quarter was $1.2 million, or $0.14 per diluted share, compared to net income of $362,000, or $0.04 per diluted share, for the same period a year ago. Net income for all of 2013 was $3.0 million, or $0.37 per diluted share, compared to a net loss of $5.5 million, or $0.67 per diluted share, for the year ended December 31, 2012. Income tax expense during 2013 was offset by a reduction in the Bank's valuation allowance against net deferred tax assets. In December 2013, the valuation allowance was further reduced by $1.0 million, resulting in an increase in net income of $1.0 million. As of December 31, 2013, IIB still had a deferred tax asset valuation allowance of $7.3 million that may be used to reduce income tax expense in the future.

"I am pleased to report positive earnings for the full year and for the fifth consecutive quarter," Mr. Gustavel said. "Better operating results were primarily due to improved asset quality, expense controls, and growth in earning assets. Looking to 2014, the Bank will continue to focus on improving profitability and building market share to enhance long-term shareholder value."

The Bank's total assets as of December 31, 2013, increased $2.2 million, or about 1.0%, when compared to December 31, 2012. Deposits and repurchase agreements decreased $15.7 million, or 3.9%, from December 31, 2012 to December 31, 2013, primarily due to planned reductions in time deposits and normal fluctuations in transaction account balances. However, when comparing the year-over-year averages for the month of December, deposits and repurchase agreements increased $5.7 million. Total loans increased $12.4 million, or 5.4%, for the year, while nonperforming assets decreased $11.9 million. IIB's allowance for loan and lease losses was $5.9 million at year-end, or 2.5% of total loans, excluding loans held-for-sale.

The Bank's capital ratios continue to exceed the thresholds required to be considered "Well-Capitalized" under regulatory guidelines. IIB's Tier One Capital Ratio and Total Risk-Based Capital Ratio were 11.14% and 15.76%, respectively, at December 31, 2013.

IIB filed its Consolidated Report of Condition and Income for the quarter ended December 31, 2013, (the "Call Report") with the Federal Deposit Insurance Corporation on January 27, 2014. 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 Year Ended
2013 2012 2013 2012
Net interest income $3,398 $3,592 $14,597 $13,689
Provision for loan losses -- 15 265 4,073
Net interest income after provision for loan losses 3,398 3,577 14,332 9,616
Noninterest income 1,548 1,593 7,296 6,179
Noninterest expense 4,751 4,808 19,625 21,284
Net income (loss) before taxes 195 362 2,003 (5,489)
Income tax expense (1,000) -- (1,000) --
Net income (loss) $1,195 $362 $3,003 $(5,489)
Earnings (loss) per share:
Basic $0.15 $0.04 $0.37 $(0.67)
Diluted $0.14 $0.04 $0.37 $(0.67)
2013 2012
Loans held for sale $4,992 $6,798
Loans receivable 236,556 222,339
Gross loans 241,548 229,137
Allowance for loan losses 5,925 7,137
Total assets 468,965 466,827
Deposits 366,514 384,593
Customer repurchase agreements 15,900 13,462
Total deposits and repurchase agreements 382,414 398,055
Stockholders' equity 54,339 51,369
Common shares outstanding 8,181,109 8,181,109
Book value per share $6.64 $6.28
Tier 1 capital (to average assets) 11.14% 11.20%
Tier 1 capital (to risk-weighted assets) 14.51% 15.29%
Total risk-based capital (to risk-weighted assets) 15.76% 16.55%
Three Months Ended Year Ended
PERFORMANCE RATIOS (annualized) December 31, December 31,
2013 2012 2013 2012
Return on average assets 1.00% 0.31% 0.65% -1.22%
Return on average equity 8.91% 2.80% 5.73% -9.95%
Efficiency ratio 96.06% 92.73% 89.64% 107.13%
Net interest margin 3.08% 3.51% 3.49% 3.43%

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

Source:Idaho Independent Bank