Idaho Independent Bank Announces 2014 Second Quarter and Year-to-Date Results

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COEUR D'ALENE, Idaho, July 29, 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 second quarter and six months ended June 30, 2014.

Mr. Gustavel reported that IIB's net income for the quarter was $307,000, or $0.04 per diluted share, which was about in line with net income for the same period a year ago. IIB's net income for the six months ended June 30, 2014, was $765,000, or $0.09 per diluted share, compared to $805,000, or $0.10 per diluted share, for the first six months of 2013. Income tax expense was offset by a reduction in the Bank's valuation allowance against net deferred tax assets ("Tax Valuation Allowance"). As of June 30, 2014, IIB was carrying a Tax Valuation Allowance of about $7.1 million that may be used to reduce future income tax expense.

"I am pleased to report positive earnings for the seventh consecutive quarter. Loan demand has increased, and IIB is getting new business with regularity," Mr. Gustavel said.

The Bank's total assets at June 30, 2014, increased $13.5 million, or 2.9%, to $486.6 million when compared to June 30, 2013. Deposits and repurchase agreements increased $9.7 million, or 2.4%, to $413.1 million, and total loans increased $13.9 million, or 5.9%, to $250.1 million over the same timeframe. Nonperforming assets decreased $5.1 million, or 35.9%, to $9.1 million at June 30, 2014, while IIB's allowance for loan and lease losses closed the quarter at $6.3 million, 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 11.3% and 16.0%, respectively, at June 30, 2014.

IIB will file its Consolidated Report of Condition and Income for the quarter ended June 30, 2014, (the "Call Report") with the Federal Deposit Insurance Corporation by July 30, 2014. The Call Report will be 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 200 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 Six Months Ended
2014 2013 2014 2013
Net interest income $ 3,568 $ 3,265 $ 7,753 $ 6,449
Provision for loan losses 1 -- 1 265
Net interest income after provision for loan losses 3,567 3,265 7,752 6,184
Noninterest income 1,499 1,982 2,786 4,231
Noninterest expense 4,759 4,943 9,773 9,610
Net income before taxes 307 304 765 805
Income tax expense -- -- -- --
Net income $ 307 $ 304 $ 765 $ 805
Earnings per share:
Basic $ 0.04 $ 0.04 $ 0.09 $ 0.10
Diluted $ 0.04 $ 0.04 $ 0.09 $ 0.10
2014 2013
Loans held for sale $ 1,713 $ 5,941
Loans receivable 248,344 230,279
Gross loans 250,057 236,220
Allowance for loan losses 6,265 5,826
Total assets 486,573 473,052
Deposits 403,055 384,457
Customer repurchase agreements 10,055 18,987
Total deposits and repurchase agreements 413,110 403,444
Stockholders' equity 55,293 51,883
Common shares outstanding 8,186,508 8,181,109
Book value per share $ 6.75 $ 6.34
Tier 1 capital (to average assets) 11.28% 11.27%
Tier 1 capital (to risk-weighted assets) 14.74% 14.98%
Total risk-based capital (to risk-weighted assets) 15.99% 16.24%
Three Months Ended Six Months Ended
PERFORMANCE RATIOS (annualized) June 30, June 30,
2014 2013 2014 2013
Return on average assets 0.26% 0.27% 0.33% 0.36%
Return on average equity 2.24% 2.34% 2.81% 3.13%
Efficiency ratio 93.92% 93.79% 92.73% 88.88%
Net interest margin 3.31% 3.17% 3.67% 3.18%

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

Source:Idaho Independent Bank