Idaho Banking Company Reports 3rd Quarter ResultsBOISE, October 20 /PR Newswire/ -- Idaho Banking Company (OTC Bulletin Board: IBCB) today reported net income of $66,000 for the third quarter of 2000, or $.08 per share. Earnings for the third quarter of 1999 were favorably impacted by a large adjustment of the valuation allowance for deferred taxes. Ignoring the impact of taxes, quarterly income before taxes was up dramatically from $22,000 last year to $90,000 this year. Earnings continue to be impacted by the bank’s rapid growth. Two new branch offices and a mortgage office were added last year. While related expenses continue to affect current earnings, these expansions are expected to contribute significantly to future earnings of the Bank.
Net income for the first nine months of the year was $152,000, or $.19 per share. This year’s net income is not easily compared to last year’s net income because of the large nonrecurring tax benefit in 1999. Year-to-date income before taxes, which is more comparable, grew from $151,000 to $180,000, an increase of 19%. This gain in pre-tax earnings was despite a large increase in the provision for credit losses necessitated by rapid loan growth. The year-to-date provision for loan losses increased 120% from $150,000 last year to $330,000 this year.
Loans grew by 64% from September 30, 1999 to September 30, 2000. The allowance for loan losses was 1.32% of loans at September 30, 2000. The Bank’s tax equivalent net interest margin for the third quarter of 2000 was 4.86%, compared to 4.57% in the third quarter of 1999. The net interest margin improvement was primarily due to the improving loan to deposit ratio. The loan to deposit ratio averaged 82% during the third quarter. Book value per share increased from $12.19 a year ago to $12.73 at September 30.
Bank officials were extremely pleased with the impressive growth of the loan portfolio during the first nine months of 2000, particularly in light of interest rate movement and a highly competitive local market. President and CEO Cort Rounds expressed that while the Bank has enjoyed reaching some pretty aggressive goals in terms of loan growth, the primary focus has always been on maintaining a sound and healthy portfolio. "We are very diligent that each and every loan booked meets certain criteria to uphold the integrity of the Bank’s loan portfolio. We want to please our shareholders, our regulators, and of course our customers", he 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 or Mary E. Brimson, VP Shareholder Relations, 208-472-4700. Don D. Madsen, CFO at 208-947-1880
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