Idaho Banking Company Reports First Quarter Results

BOISE, April 18 /PR Newswire-First Call/ -- Idaho Banking Company (OTC Bulletin Board: IBCB) today reported net income for the first quarter of 2003 of $70,000, an increase of 159% over the $27,000 reported in the first quarter of last year. Net income per share increased by 167% to $.08 for the quarter. The large increase in net income was due to a lower provision for loan losses, which fell from $180,000 to $80,000. Also, mortgage banking income increased 35% from the first quarter of 2002. The net income of $70,000 reported for the first quarter of 2003 represents the best quarterly earnings since the third quarter of 1999. This is particularly encouraging when considering that the first quarter of the year is traditionally the weakest quarter for Idaho Banking Company.

Net interest margin in the first quarter of 2003 was 3.40% compared to 4.20% in the first quarter of last year. This decline was primarily caused by the quarterly loan to deposit ratio falling from 93% in the first quarter of 2002 to 72% in the first quarter of 2003. The dramatic change in the loan to deposit ratio was due to a successful deposit campaign in mid-2002. As these new deposit funds are deployed in loans, rather than temporary investments, net interest margin is expected to improve.

Source: Idaho Banking Company

Contacts: Michael K. Johnston, President & CEO at 208-472-4702, Mary E. Brimson, SVP Shareholder Relations at 208-472-4705, or Don D. Madsen, CFO at 208-947-1880

Idaho Banking Company
Financial Highlights (unaudited)
($ in thousands)

								Change
For the three months ended March 31:			2003		2002		$		%
	Net interest income		$935		$949		$(14)		-1%
	Provision for loan losses		80		180		(100)		-56%
	Mortgage banking income		379		280		99		35%
	Other noninterest income		72		84		(12)		-14%
	Noninterest expense		1,186		1,096		90		8%
	Net income before taxes		120		37		83		224%
	Income taxes		50		10		40		400%
	Net income		70		27		43		159%

	Net income per share
		Basic	0.08		0.03		0.05		167%
		Diluted	0.08		0.03		0.05		167%

								Change
At March 31:			2003		2002		$		%
	Loans		$74,210		$66,329		$7,881		12%
	Allowance for loan losses		1,575		1,194		381		32%
	Assets		123,965		96,032		27,933		29%
	Deposits		104,055		75,874		28,181		37%
	Shareholders' equity		11,174		10,775		399		4%
	Nonperforming loans		261		485		(224)		-46%
	Other real estate owned		0		65		(65)		-100%

	Book value per share		13.27		12.83		0.44		3%
	Shares of common stock outstanding		841,846		839,846		2,000		0%

	Allowance to loan ratio		2.12%		1.80%
	Allowance to nonperforming loans		6.0	X	2.5	X
	Nonperforming loans to total loans		0.35%		0.73%
								Change
Averages for the three months ended March 31:			2003		2002		$		%
	Loans		$71,730		$69,701		$2,029		3%
	Earning assets		114,061		93,901		20,160		21%
	Assets		119,516		98,762		20,754		21%
	Deposits		100,211		74,950		25,261		34%
	Shareholders' equity		10,930		10,588		342		3%

For the three months ended March 31:
	Return on average assets		0.24%		0.11%
	Return on average equity		2.60%		1.03%
	Average loans to deposits		71.58%		93.00%
	Net interest margin - tax equivalent		3.40%		4.20%
	Net loan charge-offs (recoveries)		(85)		245
	Net charge-offs to loans		-0.48%		1.43%

Quarterly Trends (Unaudited)			2003 Q1		2002 Q4		2002 Q3		2002 Q2		2002 Q1
	Net interest income		$935		$970		$963		$925		$949
	Provision for loan losses		80		170		230		220		180
	Mortgage banking income		379		371		401		232		280
	Other noninterest income		72		77		86		79		84
	Noninterest expense		1,186		1,145		1,166		1,022		1,096
	Net income before taxes		120		103		54		(6)		37
	Income taxes		50		63		14		(7)		10
	Net income		70		40		40		1		27

	Net income per share
		Basic	0.08		0.05		0.05		0.00		0.03
		Diluted	0.08		0.05		0.05		0.00		0.03

	Average loans		71,730		72,319		71,473		67,784		69,701
	Average earning assets		114,061		112,090		103,075		92,784		93,901
	Average assets		119,516		117,771		108,336		98,023		98,762
	Average deposits		100,211		97,273		89,420		78,496		74,950
	Average shareholders' equity		10,930		10,865		10,832		10,799		10,588

	Return on average assets		0.24%		0.13%		0.15%		0.00%		0.11%
	Return on average equity		2.60%		1.46%		1.47%		0.04%		1.03%
	Average loans to deposits		71.58%		74.35%		79.93%		86.35%		93.00%
	Net interest margin - tax equivalent		3.40%		3.51%		3.79%		4.08%		4.20%

	Nonperforming loans - period end		$261		$333		$386		$313		$485
	Other real estate owned - period end		0		0		0		0		65
	Loans - period end		74,210		71,340		71,142		71,637		66,329
	Allowance for loan losses - period end		1,575		1,410		1,309		1,078		1,194
	Net charge-offs (recoveries) - quarterly		(85)		69		(1)		336		245

	Allowance to loans		2.12%		1.98%		1.84%		1.50%		1.80%
	Allowance to nonperforming loans		6.0	X	4.2	X	3.4	X	3.4	X	2.5 X
	Nonperforming loans to total loans		0.35%		0.47%		0.54%		0.44%		0.73%
	Net charge-offs to loans - annualized		-0.48%		0.38%		-0.01%		1.99%		1.43%