Idaho Banking Company - Financials

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Idaho Banking Company Reports 3rd Quarter Results

BOISE, October 21 /PR Newswire-First Call/ -- Idaho Banking Company (OTC Bulletin Board: IBCB) today reported third quarter net income of $40,000, or $.05 per share. Year-to-date the Bank made $68,000, or $.08 per share, which is 6% higher than the first nine months of 2001. Record single family mortgage loan originations and lower provisions for loan losses contributed to the improvement in earnings. The current interest rate environment has compressed the Bank’s year-to-date net interest margin to 4.01% but the balance sheet is very strong with capital at 9.76% of total assets of $113 million.

Nonperforming loans increased slightly during the third quarter to $386,000 at September 30, 2002. However, this total is nearly 40% less than the level of one year ago. During the third quarter of 2002 the allowance for loan losses increased from 1.50% to 1.84%. The provision for loan losses was $230,000 for the third quarter. This increase to the allowance was not diluted by charge-offs, as loan recoveries for the quarter slightly exceeded loan charge-offs.

As mentioned, shareholders’ equity remained strong, with a capital to asset ratio of 9.76% at September 30, 2002. Book value per share of $13.06 at September 30, 2002 is up from $12.91 a year ago.

"2002 has been a very challenging year for the Bank" said Mike Johnston, President and Chief Executive Officer. "Not only has the post September 11th recession affected growth of the Bank’s loan portfolio but the consecutive interest rate cuts by the Federal Reserve has resulted in margin compression. But we’ve taken the opportunity in the past six months to focus on repositioning our loan portfolio and to significantly grow our deposit base. With a loan to deposit ratio of 76%, the Bank is well positioned to exploit opportunities associated with any economic expansion in the Treasure Valley."

Idaho Banking Company, a state-chartered commercial bank and member of the Federal Reserve Bank, was organized in 1996. The bank operates from three branch offices and one mortgage office in Ada County.

Source: Idaho Banking Company

Contacts: Michael K. Johnston, President & CEO at 208-472-4702, 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)
($ in thousands)

Change

For the nine months ended September 30:

2002

2001

$

%

Net interest income

$ 2,837

$ 2,923

$ (86)

-3%

Provision for loan losses

630

745

(115)

-15%

Mortgage banking income

913

810

103

13%

Gains on loan sales

6

62

(56)

-90%

Other noninterest income

243

277

(34)

-12%

Noninterest expense

3,284

3,285

(1)

0%

Net income before taxes

85

42

43

102%

Income taxes

17

(22)

39

177%

Net income

68

64

4

6%

Net income per share

Basic

0.08

0.08

-

0%

Diluted

0.08

0.08

-

0%

Change

At September 30:

2002

2001

$

%

Loans

$ 71,142

$ 72,673

$ (1,531)

-2%

Allowance for loan losses

1,309

1,192

117

10%

Assets

112,671

104,191

8,480

8%

Deposits

93,542

86,148

7,394

9%

Shareholders' equity

10,996

10,116

880

9%

Nonperforming loans

386

622

(236)

-38%

Other real estate owned

0

65

(65)

-100%

Book value per share

13.06

12.91

0.15

1%

Shares of common stock outstanding

841,846

783,846

58,000

7%

Allowance to loan ratio

1.84%

1.64%

Allowance to nonperforming loans

3.4

X

1.9

X

Nonperforming loans to total loans

0.54%

0.86%

Change

Averages for nine months ended September 30:

2002

2001

$

%

Loans

$ 69,659

$ 69,892

$ (233)

0%

Earning assets

96,620

91,382

5,238

6%

Assets

101,742

97,367

4,375

4%

Deposits

81,008

79,860

1,148

1%

Shareholders' equity

10,741

10,038

703

7%

For the nine months ended September 30:

Return on average assets

0.09%

0.09%

Return on average equity

0.85%

0.85%

Average loans to deposits

85.99%

87.52%

Net interest margin - tax equivalent

4.01%

4.36%

Net loan charge-offs

580

428

Net charge-offs to loans

1.11%

0.82%

 

Quarterly Trends (Unaudited)

2002 Q3

2002 Q2

2002 Q1

2001 Q4

2001 Q3

Net interest income

$ 963

$ 925

$ 949

$ 952

$ 980

Provision for loan losses

230

220

180

300

380

Mortgage banking income

401

232

280

349

332

Gains on loan sales

0

0

6

15

0

Other noninterest income

86

79

78

82

85

Noninterest expense

1,166

1,022

1,096

1,114

1,069

Net income before taxes

54

(6)

37

(16)

(52)

Income taxes

14

(7)

10

(18)

(30)

Net income

40

1

27

2

(22)

Net income per share

Basic

0.05

0.00

0.03

0.00

(0.03)

Diluted

0.05

0.00

0.03

0.00

(0.03)

Average loans

71,473

67,784

69,701

72,171

72,534

Average earning assets

103,075

92,784

93,901

95,791

93,059

Average assets

108,336

98,023

98,762

101,101

99,147

Average deposits

89,420

78,496

74,950

80,562

81,072

Average shareholders' equity

10,832

10,799

10,588

10,101

10,099

Return on average assets

0.15%

0.00%

0.11%

0.01%

-0.09%

Return on average equity

1.47%

0.04%

1.03%

0.08%

-0.86%

Average loans to deposits

79.93%

86.35%

93.00%

89.58%

89.47%

Net interest margin - tax equivalent

3.79%

4.08%

4.20%

4.03%

4.26%

Nonperforming loans - period end

$ 386

$ 313

$ 485

$ 567

$ 622

Other real estate owned - period end

0

0

65

65

65

Loans - period end

71,142

71,637

66,329

71,832

72,673

Allowance for loan losses - period end

1,309

1,078

1,194

1,259

1,192

Net charge-offs (recoveries) - quarterly

(1)

336

245

233

117

Allowance to loans

1.84%

1.50%

1.80%

1.75%

1.64%

Allowance to nonperforming loans

3.4

X

3.4

X

2.5

X

2.2

X

1.9

X

Nonperforming loans to total loans

0.54%

0.44%

0.73%

0.79%

0.86%

Net charge-offs to loans - annualized

-0.01%

1.99%

1.43%

1.28%

0.64%

 

 

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Last Revised:  10/23/02