Idaho Banking Company Reports Quarterly Results
BOISE, July 20 /PR Newswire/ -- Idaho Banking Company (OTC Bulletin Board: IBCB) today reported net income of $54,000 for the second quarter of 2001, or $.07 per share. Net income in the second quarter of 2000 was $64,000, or $.08 per share. The decrease in net income is partially attributable to an increase in the provision for loan losses from $120,000 in the second quarter of last year to $190,000 in the second quarter of this year. Also, impacting year to year earnings were the dramatic declines in interest rates since the first of the year. Net interest margin decreased from 5.00% in the second quarter of 2000 to 4.35% in the second quarter of 2001.
Net income for the first six months of the year was $86,000, or $.11 per share, the same as last year. On a year-to-date basis the provision for loan losses was $365,000 in 2001, compared to $210,000 in 2000. Net interest margin was 4.42% for the first six months of 2001, compared to 4.82% in the same period last year. Helping to offset the decline in net interest margin was higher gross mortgage banking income, which increased from $189,000 last year to $478,000 in the first half of this year.
Loans increased 5.5% in the second quarter this year, and are 32% higher than one year ago. The management of loan quality, refinements in loan policies, and underwriting standards have received increased attention this year. Net loan charge-offs totaled $177,000 in the second quarter of 2001, compared to $134,000 in the first quarter of 2001 and $254,000 in the last quarter of 2000. 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 1.31% at June 30, 2001 compared to 1.30% at the end of last year.
Shareholders’ equity remained strong, with a capital to asset ratio of 10.15% at the end of the quarter. Book value per share has increased from $12.58 a year ago to $12.89 at June 30, 2001.
Idaho Banking Company, a state-chartered commercial bank and member of the Federal Reserve 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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