Idaho Banking Company

Idaho Banking Company Reports 1^st Quarter Results

BOISE, April 20 /PR Newswire/ -- Idaho Banking Company (OTC Bulletin Board: IBCB) today reported net income of $22,000 for the first quarter of 2000, compared to $58,000 in the same quarter of the prior year. Loan growth in the first quarter of 2000 set a quarterly record with an increase in loans of $6.8 million. This rapid loan growth caused the quarterly provision for loan losses to be $90,000 in the first quarter of 2000 compared to $40,000 in the same quarter last year. Income before taxes and the provision for loan losses actually increased 14% from the first quarter of 1999 to the first quarter of this year.

Assets grew by 37% from March 31, 1999 to March 31, 2000. During the same period loans grew by 75% to $47.6 million. The allowance for loan losses was at 1.30% of loans at the end of the quarter. The Bank’s tax equivalent net interest margin for the first quarter of 2000 was 4.64%, compared to 4.54% in the last quarter of 1999. The improving net interest margin was primarily due to the improving loan to deposit ratio. The loan to deposit ratio was 77% during the first quarter compared to 67% in the fourth quarter of 1999. Book value per share increased from $11.94 a year ago to $12.46 at March 31.

During the first quarter of 2000 the permanent home of the Eagle branch was completed. One year ago the Bank opened a small, leased office in Eagle while construction took place on the new building. The branch relocated in mid February and an official grand opening celebration is planned in early May. The new facility is located at 402 S. Eagle Road, adjacent to Albertsons, and offers a full line of deposit and loan products, as well as drive-up banking and ATM services.

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; Don D. Madsen, CFO; Mary E. Brimson, Shareholder Relations, 208-472-4700

Idaho Banking Company
Financial Highlights (unaudited)

					Change	Change
For the quarter ended March 31:			2000	1999	$		%
	Net interest income		$ 761	$ 487	$ 274		56%
	Net interest income - tax equivalent		778	497	281		57%
	Provision for loan losses		90	40	50		125%
	Mortgage banking income		77	0	77		-
	Gains on loan sales		11	36	-25		-69%
	Other noninterest income		102	56	46		82%
	Noninterest expense		839	481	358		74%
	Net income before taxes		22	58	-36		-62%
	Income taxes		0	0	0		-
	Net income		22	58	-36		-62%

	Net income per share
		Basic	0.03	0.08	(0.05)		-63%
		Diluted	0.03	0.07	(0.04)		-57%

					Change	Change
At March 31:			2000	1999	$		%
	Loans		$ 47,644	$ 27,246	$ 20,398		75%
	Allowance for loan losses		619	366	253		69%
	Assets		74,500	54,367	20,133		37%
	Deposits		63,301	44,221	19,080		43%
	Shareholders' equity		9,751	9,003	748		8%

	Book value per share		12.46	11.94	0.52		4%

	Allowance to loan ratio		1.30%	1.34%

					Change	Change
Averages for the quarter ended March 31:			2000	1999	$		%
	Loans		$ 45,100	$ 26,041	$ 19,059		73%
	Earning assets		67,493	47,155	20,338		43%
	Assets		72,864	49,857	23,007		46%
	Deposits		58,578	39,727	18,851		47%
	Shareholders' equity		9,711	8,736	975		11%

	Return on average assets		0.12%	0.47%
	Return on average equity		0.91%	2.69%
	Average loans to deposits		76.99%	65.55%
	Net interest margin - tax equivalent		4.64%	4.27%

Quarterly Trends

2000 Q1

1999 Q4

1999 Q3

1999 Q2

1999 Q1

Net interest income

$ 761

$ 699

$ 653

$ 575

$ 487

Net interest income - tax equivalent

778

714

665

587

497

Provision for loan losses

90

75

50

60

40

Mortgage banking income

77

65

Gains on loan sales

11

62

33

116

36

Other noninterest income

102

98

87

69

56

Noninterest expense

839

815

701

629

481

Net income before taxes

22

34

22

71

58

Income taxes

0

-26

-150

0

0

Net income

22

60

172

71

58

Net income per share

Basic

0.03

0.08

0.23

0.09

0.08

Diluted

0.03

0.07

0.21

0.09

0.07

Average loans

45,100

37,306

34,612

31,069

26,041

Average earning assets

67,493

62,420

57,709

52,616

47,155

Average assets

72,864

67,177

61,891

56,151

49,857

Average deposits

58,578

55,314

50,752

44,592

39,727

Average shareholders' equity

9,711

9,671

9,105

9,027

8,736

Return on average assets

0.12%

0.35%

1.10%

0.51%

0.47%

Return on average equity

0.91%

2.46%

7.49%

3.15%

2.69%

Average loans to deposits

76.99%

67.44%

68.20%

69.67%

65.55%

Net interest margin - tax equivalent

4.64%

4.54%

4.57%

4.47%

4.27%