Idaho Banking Company Reports 2nd Quarter Results
BOISE, July 20 /PR Newswire/ -- Idaho Banking Company (OTC Bulletin Board: IBCB) today reported net income of $64,000 for the second quarter of 2000, compared to $71,000 in the same quarter of the prior year. Quarterly diluted earnings per share were $.08 compared to $.09 last year. Quarterly income was down primarily because of rapid loan growth, which caused the quarterly provision for loan losses to be $120,000 in the second quarter of 2000 compared to $60,000 in the same quarter last year. Income before taxes and the provision for loan losses increased 44% from the second quarter of 1999 to the second quarter of this year.
Net income for the first six months of the year was $86,000 compared to $129,000 last year. Diluted earnings per share were $.11 for the first half of 2000 compared to $.16 last year. Weakness in mortgage banking income had a negative impact on net income for the first six months of year. However, most of the year-to-year decline in net income was caused by the higher provision for loan losses, necessitated by strong loan growth. Year-to-date income before taxes and the provision for loan losses increased 31% from last year.
Loans grew by 62% from June 30, 1999 to June 30, 2000. The allowance for loan losses was increased to 1.39% of loans at June 30, from 1.30% at March 31, to provide for potential loss exposure in nonaccrual loans. The Bank’s tax equivalent net interest margin for the second quarter of 2000 was 5.00%, compared to 4.64% in the first quarter of 2000. The improving net interest margin was primarily due to the improving loan to deposit ratio. The loan to deposit ratio averaged 82% during the second quarter. Book value per share increased from $11.98 a year ago to $12.58 at June 30.
Bank officials were extremely pleased with the impressive growth of the loan portfolio during the first six months of 2000, particularly in light of increasing rates and a highly competitive local market. "The fact that we have been able to attain what we believed to be aggressive objectives while maintaining the integrity of the portfolio has us excited indeed", president and CEO Cort Rounds said.
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, VP Shareholder Relations, 208-472-4700
Idaho Banking Company
Financial Highlights (unaudited)
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