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
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