Idaho Banking Company

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
Financial Highlights (unaudited)

						Change
For the quarter ended March 31:			2001	2000	$		%
	Net interest income		$ 969	$ 761	$ 208		27%
	Provision for loan losses		175	90	85		94%
	Mortgage banking income		181	77	104		135%
	Gains on loan sales		29	11	18		164%
	Other noninterest income		103	102	1		1%
	Noninterest expense		1,067	839	228		27%
	Net income before taxes		40	22	18		82%
	Income taxes		8	0	8
	Net income		32	22	10		45%

	Net income per share
		Basic	0.04	0.03	0.01		33%
		Diluted	0.04	0.03	0.01		33%

						Change
At March 31:			2001	2000	$		%
	Loans		$ 67,105	$ 47,644	$ 19,461		41%
	Allowance for loan losses		916	619	297		48%
	Assets		96,601	74,500	22,101		30%
	Deposits		80,433	63,301	17,132		27%
	Shareholders' equity		10,067	9,751	316		3%

	Book value per share		12.84	12.46	0.38		3%

	Allowance to loan ratio		1.37%	1.30%

						Change
Averages for the quarter ended March 31:			2001	2000	$		%
	Loans		$ 67,089	$ 45,100	$ 21,989		49%
	Earning assets		89,266	67,493	21,773		32%
	Assets		95,361	72,864	22,497		31%
	Deposits		78,949	58,578	20,371		35%
	Shareholders' equity		10,006	9,711	295		3%

	Return on average assets		0.14%	0.12%
	Return on average equity		1.30%	0.91%
	Average loans to deposits		84.98%	76.99%
	Net interest margin - tax equivalent		4.49%	4.64%

Quarterly Trends (Unaudited)			2001 Q1		2000 Q4		2000 Q3		2000 Q2		2000 Q1
	Net interest income		$ 969		$ 1,009		$ 917		$ 858		$ 761
	Provision for loan losses		175		355		120		120		90
	Mortgage banking income		181		109		150		112		77
	Gains on loan sales		29		0		28		58		11
	Other noninterest income		103		118		112		130		102
	Noninterest expense		1,067		1,017		997		970		839
	Net income before taxes		40		(136)		90		68		22
	Income taxes		8		(65)		24		4		0
	Net income		32		(71)		66		64		22

	Net income per share
		Basic	0.04		(0.09)		0.08		0.08		0.03
		Diluted	0.04		(0.09)		0.08		0.08		0.03

	Average loans		67,089		63,603		56,112		50,897		45,100
	Average earning assets		89,266		85,203		76,796		70,370		67,493
	Average assets		95,361		91,559		83,081		75,972		72,864
	Average deposits		78,949		76,419		68,435		62,370		58,578
	Average shareholders' equity		10,006		9,978		9,870		9,763		9,711

	Return on average assets		0.14%		-0.31%		0.32%		0.34%		0.12%
	Return on average equity		1.30%		-2.83%		2.66%		2.64%		0.91%
	Average loans to deposits		84.98%		83.23%		81.99%		81.60%		76.99%
	Net interest margin - tax equivalent		4.49%		4.79%		4.86%		5.00%		4.64%

	Nonperforming loans - period end		$ 121		$ 93		$ 213		$ 67		$ 344
	Other real estate owned - period end		65		65		290		290		0
	Loans - period end		67,105		67,159		58,921		53,456		47,644
	Allowance for loan losses - period end		916		875		775		741		619
	Net charge-offs (recoveries) - quarterly		134		254		86		(2)		2

	Allowance to loans		1.37%		1.30%		1.32%		1.39%		1.30%
	Allowance to nonperforming loans		7.6	X	9.4	X	3.6	X	11.1	X	1.8	X
	Quarterly net charge-offs - annualized		0.81%		1.59%		0.61%		-0.02%		0.02%