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Idaho Banking Company Reports 3rd Quarter Results
BOISE, October 20 /PR Newswire-First Call/ -- Idaho Banking Company (OTC Bulletin Board: IBCB) today reported net income for the first nine months of 2003 of $254,000, an increase of 274% over the $68,000 reported in the first nine months of last year. Net income per share was $.30 for the nine months of 2003, compared to only $.08 in the first nine months of 2002. The large increase in net income was due to a lower provision for loan losses, which fell from $630,000 to $100,000.
Net income of $101,000 for the third quarter of 2003 represents the best quarterly earnings since the third quarter of 1999. Net income per share of $.12 in the third quarter of 2003 was an improvement of 140% from the $.05 per share reported in the third quarter of 2002.
Nonperforming loans decreased 25% from one year ago. However, the allowance for loan losses was slightly higher at 1.89% of loans at September 30, 2003 , compared to 1.84% at September 30, 2002 , which significantly increased the ratio of allowance to nonperforming loans. Loan recoveries exceeded loan charge-offs during the first nine months of 2003 by $41,000.
Net interest margin in the third quarter of 2003 rose to 3.57%, its highest level since the third quarter of 2002. The improvement in the loan-to-deposit ratio to 76% helped increase net interest margin. However, net interest margin remains under pressure due to the low interest rate environment. Loans at September 30, 2003 were at $82 million, 15% higher than one year ago.
Idaho Banking Company, a state-chartered commercial bank and member of the Federal Reserve Bank, was organized in 1996. The bank operates from three branch offices and one mortgage office in Ada County . A fourth branch, located in Meridian , is expected to open in the second quarter of 2004.
Source: Idaho Banking Company
Contacts: Michael K. Johnston, President & CEO at 208-472-4702, Mary E. Brimson, SVP Shareholder Relations at 208-472-4705, or Don D. Madsen, CFO at 208-947-1880
Idaho
Banking Company
Financial Highlights (unaudited)
($ in thousands)
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Change |
For the nine months ended September 30: |
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2003 |
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2002 |
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$ |
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% |
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Net interest income |
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$ 2,930 |
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$ 2,837 |
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$ 93 |
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3% |
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Provision for loan losses |
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100 |
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630 |
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(530) |
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-84% |
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Mortgage banking income |
|
|
|
986 |
|
913 |
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73 |
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8% |
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Securities gains |
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|
56 |
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3 |
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53 |
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1767% |
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Other noninterest income |
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|
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210 |
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246 |
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(36) |
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-15% |
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Noninterest expense |
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3,697 |
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3,284 |
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413 |
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13% |
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Net income before taxes |
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|
|
385 |
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85 |
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300 |
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353% |
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Income taxes |
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131 |
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17 |
|
114 |
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671% |
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Net income |
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254 |
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68 |
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186 |
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274% |
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Net income per share |
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Basic |
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0.30 |
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0.08 |
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0.22 |
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275% |
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Diluted |
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0.30 |
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0.08 |
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0.22 |
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275% |
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Change |
At September 30: |
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2003 |
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2002 |
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$ |
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% |
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Loans |
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$ 82,079 |
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$ 71,142 |
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$ 10,937 |
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15% |
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Allowance for loan losses |
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1,550 |
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1,309 |
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241 |
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18% |
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Assets |
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135,738 |
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112,671 |
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23,067 |
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20% |
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Deposits |
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115,445 |
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93,542 |
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21,903 |
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23% |
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Shareholders' equity |
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11,118 |
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10,996 |
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122 |
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1% |
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Nonperforming loans |
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289 |
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386 |
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(97) |
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-25% |
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Other real estate owned |
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0 |
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0 |
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0 |
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Book value per share |
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13.21 |
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13.06 |
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0.15 |
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1% |
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Shares of common stock outstanding |
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841,926 |
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841,846 |
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80 |
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0% |
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Allowance to loan ratio |
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1.89% |
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1.84% |
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Allowance to nonperforming loans |
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5.4X |
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3.4X |
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Nonperforming loans to total loans |
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0.35% |
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0.54% |
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Change |
Averages for the nine months ended September 30: |
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2003 |
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2002 |
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$ |
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% |
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Loans |
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$ 75,284 |
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$ 69,659 |
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$ 5,625 |
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8% |
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Earning assets |
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117,986 |
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96,620 |
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21,366 |
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22% |
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Assets |
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123,665 |
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101,742 |
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21,923 |
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22% |
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Deposits |
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103,136 |
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81,008 |
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22,128 |
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27% |
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Shareholders' equity |
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11,024 |
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10,741 |
|
283 |
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3% |
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For the nine months ended September 30: |
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Return on average assets |
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0.27% |
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0.09% |
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Return on average equity |
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3.08% |
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0.85% |
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Average loans to deposits |
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72.99% |
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85.99% |
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Net interest margin - tax equivalent |
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3.40% |
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4.01% |
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Net loan charge-offs (recoveries) |
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(41) |
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580 |
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Net charge-offs to loans |
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-0.07% |
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1.11% |
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Quarterly Trends (Unaudited) |
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2003 Q3 |
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2003 Q2 |
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2003 Q1 |
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2002 Q4 |
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2002 Q3 |
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Net interest income |
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$ 1,070 |
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$ 925 |
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$ 935 |
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$ 970 |
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$ 963 |
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Provision for loan losses |
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0 |
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20 |
|
80 |
|
170 |
|
230 |
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Mortgage banking income |
|
229 |
|
378 |
|
379 |
|
371 |
|
401 |
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Securities gains |
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0 |
|
56 |
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0 |
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0 |
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3 |
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Other noninterest income |
|
61 |
|
77 |
|
72 |
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77 |
|
83 |
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Noninterest expense |
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1,216 |
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1,295 |
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1,186 |
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1,145 |
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1,166 |
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Net income before taxes |
|
144 |
|
121 |
|
120 |
|
103 |
|
54 |
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Income taxes |
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43 |
|
38 |
|
50 |
|
63 |
|
14 |
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Net income |
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|
101 |
|
83 |
|
70 |
|
40 |
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40 |
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Net income per share |
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Basic |
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0.12 |
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0.10 |
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0.08 |
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0.05 |
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0.05 |
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Diluted |
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0.12 |
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0.10 |
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0.08 |
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0.05 |
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0.05 |
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Average loans |
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79,012 |
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75,030 |
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71,730 |
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72,319 |
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71,473 |
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Average earning assets |
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121,515 |
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118,301 |
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114,061 |
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112,090 |
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103,075 |
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Average assets |
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127,840 |
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123,547 |
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119,516 |
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117,771 |
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108,336 |
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Average deposits |
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104,555 |
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104,594 |
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100,211 |
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97,273 |
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89,420 |
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Average shareholders' equity |
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11,132 |
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11,009 |
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10,930 |
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10,865 |
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10,832 |
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Return on average assets |
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0.31% |
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0.27% |
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0.24% |
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0.13% |
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0.15% |
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Return on average equity |
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3.60% |
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3.02% |
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2.60% |
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1.46% |
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1.47% |
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Average loans to deposits |
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75.57% |
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71.73% |
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71.58% |
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74.35% |
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79.93% |
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Net interest margin - tax equivalent |
3.57% |
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3.21% |
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3.40% |
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3.51% |
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3.79% |
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Nonperforming loans - period end |
$ 289 |
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$ 348 |
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$ 261 |
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$ 333 |
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$ 386 |
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Other real estate owned - period end |
0 |
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0 |
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0 |
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0 |
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0 |
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Loans - period end |
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82,079 |
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76,958 |
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74,210 |
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71,340 |
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71,142 |
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Allowance for loan losses - period end |
1,550 |
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1,586 |
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1,575 |
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1,410 |
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1,309 |
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Net charge-offs (recoveries) - quarterly |
35 |
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9 |
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(85) |
|
69 |
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(1) |
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Allowance to loans |
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1.89% |
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2.06% |
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2.12% |
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1.98% |
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1.84% |
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Allowance to nonperforming loans |
5.4X |
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4.6X |
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6.0X |
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4.2X |
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3.4X |
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Nonperforming loans to total loans |
0.35% |
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0.45% |
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0.35% |
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0.47% |
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0.54% |
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Net charge-offs to loans - annualized |
0.18% |
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0.05% |
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-0.48% |
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0.38% |
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-0.01% |
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