Idaho Banking Company - Financials

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Idaho Banking Company Reports Mid-Year Results

BOISE, July 21 /PR Newswire-First Call/ -- Idaho Banking Company (OTC Bulletin Board: IBCB) today reported net income for the first half of 2003 of $153,000, an increase of 446% over the $28,000 reported in the first half of last year. Net income per share was $.18 for the first half of 2003, compared to only $.03 in the first half of 2002. The large increase in net income was due to a lower provision for loan losses, which fell from $400,000 to $100,000. Mortgage banking income increased 48% from the first half of 2002. Also, net securities gains of $56,000 contributed to earnings during the first half of the year. On the negative side, net interest margin was 3.30% in the first half of the year compared to 4.14% in the first half of 2002.

Net income of $83,000 for the second quarter of 2003 represents the best quarterly earnings since the third quarter of 1999. Net income per share of $.10 in the second quarter of 2003 was an improvement of 25% form the $.08 reported in the first quarter of 2003.

Nonperforming loans increased from one year ago. However, the allowance for loan losses was at 2.06% of loans at June 30, 2003, compared to 1.50% at June 30, 2002, which significantly increased the ratio of allowance to nonperforming loans. Loan recoveries exceeded loan charge-offs during the first half of 2003 by $76,000.

Net interest margin in the second quarter of 2003 fell to 3.21% compared to 4.08% in the second quarter of last year. This decline was primarily caused by the quarterly loan to deposit ratio falling from 86% in the second quarter of 2002 to 72% in the second quarter of 2003. In addition to the impact of the low loan-to-deposit ratio, net interest margin continued to be negatively impacted by the low interest rate environment. Also, high prepayment rates negatively impacted the yields on mortgage pool securities in the investment portfolio.

Loans at June 30, 2003 were at $77 million, 7% higher than one year ago. All of that 7% loan growth came in the first half of 2003, as loan totals were flat in the last half of 2002. Loan growth in the first half of 2003 was 16%, on an annualized basis.

The Bank also received approval from the Idaho Department of Finance and the Federal Reserve Bank to charter its new Meridian Branch. Construction of the new facility, located at the intersection of Eagle Road and Overland Road, is slated to commence in September with an opening target of May 31, 2004.

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, SVP 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 six months ended June 30:

 

 

2003

 

2002

 

$

 

%

 

Net interest income

 

 

 

$1,860

 

$1,874

 

$(14)

 

-1%

 

Provision for loan losses

 

 

 

100

 

400

 

(300)

 

-75%

 

Mortgage banking income

 

 

 

757

 

512

 

245

 

48%

 

Securities gains

 

 

 

 

56

 

0

 

56

 

 

 

Other noninterest income

 

 

 

149

 

163

 

(14)

 

-9%

 

Noninterest expense

 

 

 

2,481

 

2,118

 

363

 

17%

 

Net income before taxes

 

 

 

241

 

31

 

210

 

677%

 

Income taxes

 

 

 

 

88

 

3

 

85

 

2833%

 

Net income

 

 

 

 

153

 

28

 

125

 

446%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

 

 

0.18

 

0.03

 

0.15

 

500%

 

 

Diluted

 

 

 

 

0.18

 

0.03

 

0.15

 

500%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change

At June 30:

 

 

 

 

2003

 

2002

 

$

 

%

 

Loans

 

 

 

 

 

$76,958

 

$71,637

 

$5,321

 

7%

 

Allowance for loan losses

 

 

 

1,586

 

1,078

 

508

 

47%

 

Assets

 

 

 

 

125,668

 

104,418

 

21,250

 

20%

 

Deposits

 

 

 

 

106,119

 

84,127

 

21,992

 

26%

 

Shareholders' equity

 

 

 

11,316

 

10,908

 

408

 

4%

 

Nonperforming loans

 

 

 

348

 

313

 

35

 

11%

 

Other real estate owned

 

 

 

0

 

0

 

0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Book value per share

 

 

 

13.44

 

12.96

 

0.48

 

4%

 

Shares of common stock outstanding

 

 

841,846

 

841,846

 

0

 

0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance to loan ratio

 

 

 

2.06%

 

1.50%

 

 

 

 

 

Allowance to nonperforming loans

 

 

4.6

X

3.4

X

 

 

 

 

Nonperforming loans to total loans

 

 

0.45%

 

0.44%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change

Averages for the six months ended June 30:

 

2003

 

2002

 

$

 

%

 

Loans

 

 

 

 

 

$73,389

 

$68,737

 

$4,652

 

7%

 

Earning assets

 

 

 

 

116,193

 

93,340

 

22,853

 

24%

 

Assets

 

 

 

 

121,543

 

98,390

 

23,153

 

24%

 

Deposits

 

 

 

 

102,414

 

76,733

 

25,681

 

33%

 

Shareholders' equity

 

 

 

10,969

 

10,694

 

275

 

3%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the six months ended June 30:

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

 

0.25%

 

0.06%

 

 

 

 

 

Return on average equity

 

 

 

2.81%

 

0.53%

 

 

 

 

 

Average loans to deposits

 

 

 

71.66%

 

89.58%

 

 

 

 

 

Net interest margin - tax equivalent

 

 

3.30%

 

4.14%

 

 

 

 

 

Net loan charge-offs (recoveries)

 

 

(76)

 

581

 

 

 

 

 

Net charge-offs to loans

 

 

 

-0.21%

 

1.70%

 

 

 

 



Quarterly Trends (Unaudited)

 

2003 Q2

 

2003 Q1

 

2002 Q4

 

2002 Q3

 

2002 Q2

 

 

Net interest income

 

$925

 

$935

 

$970

 

$963

 

$925

 

 

Provision for loan losses

 

20

 

80

 

170

 

230

 

220

 

 

Mortgage banking income

 

378

 

379

 

371

 

401

 

232

 

 

Securities gains

 

 

56

 

 

 

 

 

3

 

 

 

 

Other noninterest income

 

77

 

72

 

77

 

83

 

79

 

 

Noninterest expense

 

1,295

 

1,186

 

1,145

 

1,166

 

1,022

 

 

Net income before taxes

 

121

 

120

 

103

 

54

 

(6)

 

 

Income taxes

 

 

38

 

50

 

63

 

14

 

(7)

 

 

Net income

 

 

83

 

70

 

40

 

40

 

1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

0.10

 

0.08

 

0.05

 

0.05

 

0.00

 

 

 

Diluted

 

 

0.10

 

0.08

 

0.05

 

0.05

 

0.00

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average loans

 

 

75,030

 

71,730

 

72,319

 

71,473

 

67,784

 

 

Average earning assets

 

118,301

 

114,061

 

112,090

 

103,075

 

92,784

 

 

Average assets

 

 

123,547

 

119,516

 

117,771

 

108,336

 

98,023

 

 

Average deposits

 

 

104,594

 

100,211

 

97,273

 

89,420

 

78,496

 

 

Average shareholders' equity

 

11,009

 

10,930

 

10,865

 

10,832

 

10,799

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

0.27%

 

0.24%

 

0.13%

 

0.15%

 

0.00%

 

 

Return on average equity

 

3.02%

 

2.60%

 

1.46%

 

1.47%

 

0.04%

 

 

Average loans to deposits

 

71.73%

 

71.58%

 

74.35%

 

79.93%

 

86.35%

 

 

Net interest margin - tax equivalent

3.21%

 

3.40%

 

3.51%

 

3.79%

 

4.08%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonperforming loans - period end

$348

 

$261

 

$333

 

$386

 

$313

 

 

Other real estate owned - period end

0

 

0

 

0

 

0

 

0

 

 

Loans - period end

 

 

76,958

 

74,210

 

71,340

 

71,142

 

71,637

 

 

Allowance for loan losses - period end

1,586

 

1,575

 

1,410

 

1,309

 

1,078

 

 

Net charge-offs (recoveries) - quarterly

9

 

(85)

 

69

 

(1)

 

336

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance to loans

 

2.06%

 

2.12%

 

1.98%

 

1.84%

 

1.50%

 

 

Allowance to nonperforming loans

4.6

X

6.0

X

4.2

X

3.4

X

3.4

X

 

Nonperforming loans to total loans

0.45%

 

0.35%

 

0.47%

 

0.54%

 

0.44%

 

 

Net charge-offs to loans - annualized

0.05%

 

-0.48%

 

0.38%

 

-0.01%

 

1.99%

 


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