Idaho Banking Company Reports Quarterly Results
BOISE, April 20 /PR Newswire/ -- Idaho Banking Company (OTC Bulletin Board: IBCB) today reported net income of $32,000 for the first quarter of 2001, or $.04 per share. Net income in the first quarter of 2000 was $22,000. Although the current year’s earnings represent an improvement over the same period last year, they are negatively impacted by a $175,000 provision for loan losses in the first quarter, compared to $90,000 last year. The net interest margin was 4.49% for the first quarter, compared to 4.64% a year ago, due to pressure from recent declines in interest rates. However, the decreasing interest rates benefited the Bank’s mortgage operation, as mortgage banking income increased from $77,000 last year to $181,000 in the first quarter of this year.
Loans declined slightly in the first quarter this year from 2000 year-end levels, as the management of loan quality, refinements in loan policies, and underwriting standards received increased attention. Net loan charge-offs totaled $134,000 in the first quarter, compared to $254,000 of net charge-offs in the last quarter of 2000. Although the decrease in loan charge-offs is a welcomed improvement, management is still not content with this level of activity and is spending considerable efforts to reduce future loan losses. The allowance for loan losses was increased slightly during the quarter from 1.30% at the end of the year to 1.37% of total loans at March 31.
Shareholders’ equity remained strong, with a capital to asset ratio of 10.42% at the end of the quarter. Book value per share has increased from $12.46 a year ago to $12.84 at March 31, 2001. Positive branch growth continued during the first quarter of the year. The ParkCenter branch reported its first quarter of income at March 31, and the Eagle branch posted its second quarter of profit. As consolidations and mergers continue to occur among larger banks management is confident the expansions that took place during the past few years will begin to be favorably reflected by increased growth and profitability in the future.
Idaho Banking Company, a state-chartered commercial bank, was organized in 1996. Its primary emphasis is providing personalized service and local decision-making for 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 at 208-472-4700, Mary E. Brimson, VP Shareholder Relations at 208-472-4705, or Don D. Madsen, CFO at 208-947-1880
Idaho Banking Company
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