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Idaho Banking Company Reports 2000 Results
BOISE, January 22 /PR Newswire/ -- Idaho Banking Company
(OTC Bulletin Board: IBCB) today reported net income of $81,000 for 2000,
or $.10 per share. Net income for the previous year, 1999, was $361,000,
or $.46 per share on a diluted basis. Year-to-year comparisons are
difficult because 1999 included a nonrecurring positive adjustment to the
tax provision of $227,000. The bank experienced a net loss of $71,000
during the fourth quarter of 2000, as the result of loan charge-offs. A
large number of unexpected bankruptcies resulted in an unusually high
level of loan charge-offs in the fourth quarter.
Loans grew by 65% during the year to $67.2 million at
December 31, 2000. The allowance for loan losses was 1.30% of loans at
December 31, 2000. Net loan charge-offs totaled $254,000 in the fourth
quarter and $340,000 for the year. The annualized ratio of net charge-offs
to loans was .63%. Nonperforming assets improved from $503,000 at
September 30, 2000 to $158,000 at December 31, 2000.
The Bank’s tax equivalent net interest margin declined
slightly from 4.86% in the third quarter of 2000 to 4.79% in the fourth
quarter of 2000. The quarterly net interest margin was higher than the
4.54% in the last quarter of 1999 primarily due to the improving loan to
deposit ratio. The loan to deposit ratio averaged 83% during the fourth
quarter of 2000. Deposits grew a favorable 40% during the year, and
year-end assets totaled $94.1 million. Book value per share increased from
$12.45 a year ago to $12.75 at December 31.
Bank officials were pleased with the growth of the bank
during 2000. Although the bank experienced disappointing loan charge-offs
in the last quarter of 2000, this amount of activity is not expected to
continue. A decline in the level of nonperforming assets at the end of
year is also a positive development. "We decided to take an
aggressive approach while assessing certain credits in our portfolio prior
to the new year so that we wouldn’t have to worry about impacting our
2001 performance, said president and CEO Cortland Rounds. The growth that
was experienced during 2000 is a critical foundation necessary for the
future earnings of the Bank, he continued. Our focus for 2001 will be
geared toward maximizing the earnings and performance of our existing
facilities." The two new branches of the bank that opened in 1999
posted losses in 2000, but experienced months of profitability in the
fourth quarter of 2000. Both of these branches are expected to contribute
to net income in 2001. Also, the mortgage operation expects significantly
better results in 2001 with the addition of new officers and the benefits
of lower mortgage rates.
Idaho Banking Company, a state-chartered commercial bank,
was organized in 1996. Its primary emphasis is providing personalized
service and local decision-making to clients seeking a change from the
automated and impersonal "big bank" atmosphere. The bank
operates from three branch offices and one mortgage office in Ada County.
Source: Idaho Banking Company
Contacts: Cortland D. Rounds, President/CEO or Mary E.
Brimson, VP Shareholder Relations, 208-472-4700. Don D. Madsen, CFO at
208-947-1880
Idaho Banking Company
Financial Highlights (unaudited)
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Change |
For the year ended December 31: |
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2000 |
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1999 |
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$ |
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% |
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Net interest income |
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$ 3,545 |
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$ 2,414 |
|
$ 1,131 |
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47% |
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Provision for loan losses |
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685 |
|
225 |
|
460 |
|
204% |
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Mortgage banking income |
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|
|
448 |
|
65 |
|
383 |
|
589% |
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Gains on loan sales |
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|
97 |
|
247 |
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(150) |
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-61% |
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Other noninterest income |
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|
462 |
|
310 |
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152 |
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49% |
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Noninterest expense |
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3,823 |
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2,626 |
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1,197 |
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46% |
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Net income before taxes |
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|
44 |
|
185 |
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(141) |
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-76% |
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Income taxes |
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(37) |
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(176) |
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139 |
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79% |
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Net income |
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81 |
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361 |
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(280) |
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-78% |
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Net income per share |
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Basic |
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0.10 |
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0.48 |
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(0.38) |
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-79% |
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Diluted |
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0.10 |
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0.46 |
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(0.36) |
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-78% |
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Change |
At December 31: |
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2000 |
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1999 |
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$ |
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% |
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Loans |
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$
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67,159 |
$
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40,822 |
$
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26,337 |
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65% |
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Allowance for loan losses |
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875 |
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531 |
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344 |
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65% |
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Assets |
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94,074 |
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71,021 |
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23,053 |
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32% |
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Deposits |
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78,711 |
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56,093 |
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22,618 |
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40% |
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Shareholders' equity |
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9,994 |
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9,739 |
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255 |
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3% |
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Book value per share |
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12.75 |
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12.45 |
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0.30 |
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2% |
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Allowance to loan ratio |
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1.30% |
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1.30% |
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Change |
Averages for the year ended December 31: |
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2000 |
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1999 |
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$ |
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% |
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Loans |
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$
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53,960 |
$
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32,295 |
$
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21,665 |
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67% |
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Earning assets |
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74,998 |
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55,024 |
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19,974 |
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36% |
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Assets |
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80,904 |
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58,825 |
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22,079 |
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38% |
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Deposits |
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66,483 |
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47,648 |
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18,835 |
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40% |
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Shareholders' equity |
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9,831 |
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9,137 |
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694 |
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8% |
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Return on average assets |
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0.10% |
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0.61% |
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Return on average equity |
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0.82% |
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3.95% |
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Average loans to deposits |
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81.16% |
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67.78% |
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Net interest margin - tax equivalent |
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4.82% |
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4.48% |
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Quarterly Trends
(Unaudited) |
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2000 Q4 |
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2000 Q3 |
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2000 Q2 |
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2000 Q1 |
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1999 Q4 |
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Net interest income |
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$ 1,009 |
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$ 917 |
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$ 858 |
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$ 761 |
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$ 699 |
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Provision for loan losses |
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355 |
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120 |
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120 |
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90 |
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75 |
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Mortgage banking income |
|
109 |
|
150 |
|
112 |
|
77 |
|
65 |
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Gains on loan sales |
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0 |
|
28 |
|
58 |
|
11 |
|
62 |
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Other noninterest income |
|
118 |
|
112 |
|
130 |
|
102 |
|
98 |
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Noninterest expense |
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1,017 |
|
997 |
|
970 |
|
839 |
|
815 |
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Net income before taxes |
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(136) |
|
90 |
|
68 |
|
22 |
|
34 |
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Income taxes |
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(65) |
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24 |
|
4 |
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0 |
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(26) |
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Net income |
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(71) |
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66 |
|
64 |
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22 |
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60 |
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Net income per share |
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Basic |
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(0.09) |
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0.08 |
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0.08 |
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0.03 |
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0.08 |
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Diluted |
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(0.09) |
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0.08 |
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0.08 |
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0.03 |
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0.07 |
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Average loans |
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63,603 |
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56,112 |
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50,897 |
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45,100 |
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37,306 |
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Average earning assets |
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85,203 |
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76,796 |
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70,370 |
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67,493 |
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62,420 |
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Average assets |
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91,559 |
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83,081 |
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75,972 |
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72,864 |
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67,177 |
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Average deposits |
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76,419 |
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68,435 |
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62,370 |
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58,578 |
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55,314 |
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Average shareholders' equity |
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9,978 |
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9,870 |
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9,763 |
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9,711 |
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9,671 |
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Return on average assets |
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-0.31% |
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0.32% |
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0.34% |
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0.12% |
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0.35% |
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Return on average equity |
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-2.83% |
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2.66% |
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2.64% |
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0.91% |
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2.46% |
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Average loans to deposits |
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83.23% |
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81.99% |
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81.60% |
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76.99% |
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67.44% |
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Net interest margin - tax equivalent |
4.79% |
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4.86% |
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5.00% |
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4.64% |
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4.54% |
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Nonperforming loans - period end |
93 |
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213 |
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67 |
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344 |
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54 |
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Other real estate owned - period end |
65 |
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290 |
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290 |
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0 |
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0 |
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Loans - period end |
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67,159 |
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58,921 |
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53,456 |
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47,644 |
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40,822 |
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Allowance for loan losses - period end |
875 |
|
775 |
|
741 |
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619 |
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531 |
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Net charge-offs (recoveries) - quarterly |
254 |
|
86 |
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(2) |
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2 |
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22 |
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Allowance to loans |
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1.30% |
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1.32% |
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1.39% |
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1.30% |
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1.30% |
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Allowance to nonperforming loans |
9.4 |
X |
3.6 |
X |
11.1 |
X |
1.8 |
X |
9.8 |
X |
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Quarterly net charge-offs - annualized |
1.59% |
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0.61% |
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-0.02% |
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0.02% |
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0.23% |
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