December 7, 2001

Dear Valued Shareholder:

The Board of Directors has decided that it is in the best interests of Idaho Banking Company to terminate the services of its current President. This decision did not come without a great deal of thought and deliberation regarding the future direction of the Bank.

The Board has formed a directors’ committee which has begun searching for a successor President. The selection process will be handled with a great degree of consideration in order to find an individual who fits Idaho Banking Company’s culture of community banking and personalized service. Leadership skills, experience and vision will also be required to move the Bank forward in the profitable and successful manner the Board desires. As an independent community bank, we are committed to ensure that Idaho Banking Company remains strong, profitable, and service-oriented. We are equally committed to securing the ongoing enhancement of your shareholder investment.

In the interim, the Board has appointed me as Acting President and Chief Executive Officer, and named Dan Tucker, Vice President and Business Banking Officer, as Acting Chief Operating Officer.

We anticipate a new President will be selected within approximately 60 days. We are confident this individual will work successfully with the Board of Directors to ensure the Bank moves forward in a progressive and profitable manner.

Thank you for your continued support. We will keep you informed once a new President has been selected.

Very truly yours,

Randy Harris
Acting President and Chief Executive Officer