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

COEUR D'ALENE, Idaho, Oct. 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 third quarter and nine months ended September 30, 2014.

Mr. Gustavel reported that IIB's net income for the quarter was $405,000, or $0.05 per diluted share, compared to net income of $307,000, or $0.04 per diluted share, for the linked second quarter. IIB's net income for the nine months ended September 30, 2014, was $1.2 million, or $0.14 per diluted share, compared to $1.8 million, or $0.22 per diluted share, for the first nine months of 2013. Non-recurring income related to sales of nonperforming assets helped create the higher year-to-date income in 2013. "Core profitability improved, while nonperforming assets decreased $5.8 million, or 61.8%, over the past year to less than 1.0% of total assets," Mr. Gustavel said.

The Bank's total assets at September 30, 2014, decreased $4.9 million, or just under 1.0%, to $500.1 million when compared to September 30, 2013. Deposits and repurchase agreements decreased $7.5 million, or 1.37%, to $426.5 million. Mr. Gustavel noted that asset and deposit totals for 2013 were temporarily inflated by a one-time, short-term $28.3 million transaction at quarter end. Minus that, total assets increased 4.8%, while deposits and repurchase agreements grew 5.1%. Total loans, including loans held-for-sale, increased $22.4 million, or 9.7%, to $254.4 million over the same timeframe the year earlier. At September 30, 2014, the allowance for loan and lease losses totaled $6.5 million, or 2.6% 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 10.9% and 16.1%, respectively, at September 30, 2014.

IIB filed its Consolidated Report of Condition and Income for the quarter ended September 30, 2014, (the "Call Report") with the Federal Deposit Insurance Corporation on October 29, 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 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 Nine Months Ended
2014 2013 2014 2013
Net interest income $ 3,641 $ 4,750 $ 11,394 $ 11,199
Provision for loan losses 3 -- 4 265
Net interest income after provision for loan losses 3,638 4,750 11,390 10,934
Noninterest income 1,494 1,517 4,280 5,748
Noninterest expense 4,727 5,264 14,500 14,874
Net income before taxes 405 1,003 1,170 1,808
Income tax expense -- -- -- --
Net income $ 405 $ 1,003 $ 1,170 $ 1,808
Earnings per share:
Basic $ 0.05 $ 0.12 $ 0.14 $ 0.22
Diluted $ 0.05 $ 0.12 $ 0.14 $ 0.22
2014 2013
Loans held for sale $ 4,853 $ 4,227
Loans receivable 249,562 227,782
Gross loans 254,415 232,009
Allowance for loan losses 6,501 5,818
Total assets 500,785 505,660
Deposits 409,874 418,838
Customer repurchase agreements 16,641 15,218
Total deposits and repurchase agreements 426,515 434,056
Stockholders' equity 55,684 52,962
Common shares outstanding 8,187,308 8,181,109
Book value per share $ 6.80 $ 6.47
Tier 1 capital (to average assets) 10.90% 11.23%
Tier 1 capital (to risk-weighted assets) 14.87% 14.90%
Total risk-based capital (to risk-weighted assets) 16.13% 16.15%
Three Months Ended Nine Months Ended
PERFORMANCE RATIOS (annualized) September 30, September 30,
2014 2013 2014 2013
Return on average assets 0.33% 0.85% 0.33% 0.52%
Return on average equity 2.89% 7.54% 2.84% 4.63%
Efficiency ratio 92.05% 84.00% 92.51% 87.77%
Net interest margin 3.19% 4.47% 3.50% 3.60%

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

Source:Idaho Independent Bank