Idaho Independent Bank Announces 2014 Fourth Quarter and Year-End Results

COEUR D'ALENE, Idaho, Jan. 29, 2015 (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, 2014.

"I am pleased to report significant growth, positive earnings, and improved asset quality during 2014," Mr. Gustavel said. IIB's net income for the fourth quarter was $3.8 million, or $0.46 per diluted share, compared to net income of $1.2 million, or $0.14 per diluted share, for the same period a year ago. IIB's net income for the year ended December 31, 2014, was $5.0 million, or $0.61 per diluted share, compared to $3.0 million, or $0.37 per diluted share for 2013. Income tax expense for 2014 was offset by a reduction in the Bank's valuation allowance against net deferred tax assets. During December 2014, the valuation allowance was further reduced and income increased by $2.2 million.

At December 31, 2014, the Bank's total assets were $530.4 million, an increase of $61.4 million, or 13.1%, compared to December 31, 2013. Deposits and repurchase agreements increased $69.8 million, or 18.3%, to $452.2 million; while total loans, including loans held-for-sale, increased $24.5 million, or 10.1%, to $266.0 million over the same timeframe. The Bank had net loan loss recoveries of $0.5 million during 2014, and at December 31, 2014, the allowance for loan and lease losses totaled $6.4 million, or 2.5% of total loans, excluding loans held-for-sale. Nonperforming assets were down to only 0.4% of total assets at year end.

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 10.8% and 16.2%, respectively, at December 31, 2014.

IIB filed its Consolidated Report of Condition and Income for the quarter ended December 31, 2014, (the "Call Report") with the Federal Deposit Insurance Corporation on January 27, 2015. The Call Report is available on the Federal Financial Institutions Examinations Council website at http://cdr.ffiec.gov/Public/.

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 www.theidahobank.com.

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
2014 2013 2014 2013
Net interest income $ 3,851 $ 3,398 $ 15,245 $ 14,597
Provision for loan losses -- -- 4 265
Net interest income after provision for loan losses 3,851 3,398 15,241 14,332
Noninterest income 2,783 1,548 7,063 7,296
Noninterest expense 4,997 4,751 19,497 19,625
Net income before taxes 1,637 195 2,807 2,003
Income tax expense (benefit) (2,200) (1,000) (2,200) (1,000)
Net income $ 3,837 $ 1,195 $ 5,007 $ 3,003
Earnings per share:
Basic $ 0.47 $ 0.15 $ 0.61 $ 0.37
Diluted $ 0.46 $ 0.14 $ 0.61 $ 0.37
2014 2013
Loans held for sale $ 3,904 $ 4,992
Loans receivable 262,138 236,556
Gross loans 266,042 241,548
Allowance for loan losses 6,447 5,925
Total assets 530,358 468,965
Deposits 437,628 366,514
Customer repurchase agreements 14,593 15,900
Total deposits and repurchase agreements 452,221 382,414
Stockholders' equity 59,493 54,339
Common shares outstanding 8,189,108 8,181,109
Book value per share $ 7.26 $ 6.64
Tier 1 capital (to average assets) 10.78% 11.23%
Tier 1 capital (to risk-weighted assets) 14.95% 14.90%
Total risk-based capital (to risk-weighted assets) 16.21% 16.15%
Three Months Ended Year Ended
PERFORMANCE RATIOS (annualized) December 31, December 31,
2014 2013 2014 2013
Return on average assets 2.96% 0.85% 1.03% 0.52%
Return on average equity 27.05% 7.54% 9.04% 4.63%
Efficiency ratio 75.32% 84.00% 87.40% 87.77%
Net interest margin 3.23% 4.47% 3.43% 3.60%

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