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

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COEUR D'ALENE, Idaho, July 29, 2013 (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, 2013.

"IIB's asset quality and earnings continued to improve during the first half of 2013," Mr. Gustavel said. IIB's net income for the quarter was $304,000, or $0.04 per diluted share, compared to a net loss of $389,000, or $(0.05) per diluted share, for the same period a year ago. IIB's net income for the six months ended June 30, 2013, was $805,000, or $0.10 per diluted share, compared to a net loss of $875,000, or $(0.11) per diluted share, for the same six-month period a year ago.

Growth was also positive. The Bank's total assets as of June 30, 2013, increased $14.5 million, or 3.2%, to $473.1 million from $458.6 million at June 30, 2012. Deposits and repurchase agreements increased $17.1 million, or 4.4%, to $403.4 million from $386.3 million at June 30, 2012. Total loans decreased $4.4 million during the period, but nonperforming assets, which include the combination of nonperforming loans and other real estate owned, declined by $18.8 million, or 57.0%, to $14.2 million at June 30, 2013. IIB's reserve for loan losses remains high at $5.8 million as of the end of the quarter, or 2.5% of total loans, excluding loans held-for-sale.

In addition, IIB's capital ratios 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 11.3% and 16.2%, respectively, at June 30, 2013.

IIB filed its Consolidated Report of Condition and Income for the quarter ended June 30, 2013, (the "Call Report") with the Federal Deposit Insurance Corporation on July 24. 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 190 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 Six Months Ended
CONDENSED STATEMENT OF OPERATIONS June 30, June 30,
2013 2012 2013 2012
Net interest income $ 3,265 $ 3,213 $ 6,449 $ 6,666
Provision for loan losses -- 475 265 858
Net interest income after provision for loan losses 3,265 2,738 6,184 5,808
Noninterest income 1,628 830 3,170 2,054
Noninterest expense 4,589 3,957 8,549 8,737
Net income (loss) before taxes 304 (389) 805 (875)
Income tax expense -- -- -- --
Net income (loss) $ 304 $ (389) $ 805 $ (875)
Earnings (loss) per share:
Basic $ 0.04 $ (0.05) $ 0.10 $ (0.11)
Diluted $ 0.04 $ (0.05) $ 0.10 $ (0.11)
SELECTED BALANCE SHEET ACCOUNTS June 30, June 30,
2013 2012
Loans held for sale $ 5,941 $ 3,979
Loans receivable 230,279 236,623
Gross loans 236,220 240,602
Allowance for loan losses 5,826 6,426
Total assets 473,052 458,622
Deposits 384,457 376,868
Customer repurchase agreements 18,987 9,460
Total deposits and repurchase agreements 403,444 386,328
Stockholders' equity 51,883 55,757
PER SHARE DATA
Common shares outstanding 8,181,109 8,181,109
Book value per share $ 6.34 $ 6.82
CAPITAL RATIOS
Tier 1 capital (to average assets) 11.27% 12.38%
Tier 1 capital (to risk-weighted assets) 14.98% 16.33%
Total risk-based capital (to risk-weighted assets) 16.24% 17.58%
Three Months Ended Six Months Ended
PERFORMANCE RATIOS (annualized) June 30, June 30,
2013 2012 2013 2012
Return on average assets 0.27% -0.35% 0.36% -0.39%
Return on average equity 2.34% -2.77% 3.13% -3.10%
Efficiency ratio 93.79% 97.87% 88.88% 100.19%
Net interest margin 3.17% 3.25% 3.18% 3.39%

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

Source:Idaho Independent Bank