Idaho First Bank Reports Quarterly Results

MCCALL, ID--(Marketwired - Apr 18, 2014) - Today Idaho First Bank (OTCQB: IDFB) reported financial results for the quarter ended March 31, 2014. The Bank reported net income of $197,000 for the first quarter, compared to net income of $106,000 in the same quarter in 2013. "We achieved our eleventh straight quarter of profitability," stated Mark Miller, Chairman of the Board. He further commented, "We are seeing the economic conditions of our primary market areas improve and believe we can continue our improvement in operating results."

Net income was favorably impacted by tax benefits, a reduction in provision for loan losses and a 14% improvement in net interest income. Mortgage banking income was down 57% partially a result of a drop in home refinancing. The operating results were negatively impacted by one-time expenses relating to the opening of the Boise branch and other strategic initiatives. "We believe our mortgage operations will rebound as home purchases continue to show strength," commented President Greg Lovell. He further stated, "We are achieving improvements in the fundamentals of banking i.e., loan growth, reduced loan losses, and core deposit acquisition."

The 14% improvement in net interest margin was due to an 11% increase in average loans and an increase in net interest margin from 3.91% to 4.25%.

Nonperforming assets were $1.5 million at March 31, 2014, down slightly from December 31, 2013. The allowance for loan losses was 5% higher than a year ago. However, because of a 15% growth in period-end loans, the ratio of allowance to loans declined from 1.37% to 1.25%.

Shareholders' equity at March 31 was at $9.7 million, an increase of $3.3 million from a year ago. Book value per share increased to 60 cents at March 31, 2014.

Idaho First Bank is a state-chartered commercial bank that opened for business in October 2005. Its headquarters are located in McCall, Idaho, with a branch and a mortgage banking office located in Boise.

This release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 ("PSLRA"). Such forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those projected. These risks and uncertainties include, but are not limited to, economic conditions, the regulatory environment, loan concentrations, vendors, employees, technology, competition, and interest rates. Readers are cautioned not to place undue reliance on the forward-looking statements. Idaho First Bank has no obligation to publicly update the forward-looking statements after the date of this release. This statement is included for the express purpose of invoking PSLRA's safe harbor provisions.

Idaho First Bank
Financial Highlights (unaudited)
(Dollars in thousands, except per share)
For the quarter ended March 31:				2014				2013				Change
	Net interest income			$	878			$	771			$	107			14	%
	Provision for loan losses				-				130				(130	)		-100	%
	Mortgage banking income				281				658				(377	)		-57	%
	Other noninterest income				72				77				(5	)		-6	%
	Noninterest expenses				1,299				1,270				29			2	%
		Net income (loss) before taxes			(68	)			106				(174	)		-164	%
	Tax provision (benefit)				(265	)							(265	)
		Net income			197				106				91			86	%
At March 31:				2014				2013				Change
	Loans			$	78,426			$	68,195			$	10,231			15	%
	Allowance for loan losses				983				934				49			5	%
	Assets				95,710				82,460				13,250			16	%
	Deposits				84,654				73,694				10,960			15	%
	Stockholders' equity				9,693				6,382				3,311			52	%
	Nonaccrual loans				869				698				171			24	%
	Accruing loans more than 90 days past due				-				5				(5	)		-100	%
	Other real estate owned				585				633				(48	)		-8	%
		Total nonperforming assets			1,454				1,336				118			9	%
	Book value per share				0.60				0.57				0.03			5	%
	Shares outstanding				16,190,546				11,277,155				4,913,391			44	%
	Allowance to loans				1.25	%			1.37	%
	Allowance to nonperforming loans				113	%			133	%
	Nonperforming loans to total loans				1.11	%			1.03	%
Averages for the quarter ended March 31:				2014				2013				Change
	Loans			$	75,194			$	67,918			$	7,276			11	%
	Earning assets				83,751				80,068				3,683			5	%
	Assets				92,670				83,181				9,489			11	%
	Deposits				81,478				75,540				5,938			8	%
	Stockholders' equity				9,570				5,274				4,296			81	%
	Loans to deposits				92	%			90	%
	Net interest margin				4.25	%			3.91	%

Idaho First Bank
Quarterly Financial Highlights (unaudited)
(Dollars in thousands)
Income Statement				Q1 2014				Q4 2013				Q3 2013				Q2 2013				Q1 2013
	Net interest income			$	878			$	890			$	870			$	774			$	771
	Provision for loan losses				-				-				190				90				130
	Mortgage banking income				281				484				769				622				658
	Other noninterest income				72				72				71				74				77
	Noninterest expenses				1,299				1,345				1,363				1,280				1,270
		Net income (loss) before taxes			(68	)			101				157				100				106
	Tax provision (benefit)				(265	)			(752	)			-				-				-
		Net income			197				853				157				100				106
Period End Information				Q1 2014				Q4 2013				Q3 2013				Q2 2013				Q1 2013
	Loans			$	78,426			$	74,562			$	72,669			$	72,575			$	68,195
	Allowance for loan losses				983				1,134				1,167				996				934
	Nonperforming loans				869				869				1,261				1,104				703
	Other real estate owned				585				610				307				606				633
	Quarterly net charge-offs				151				33				19				28				310
	Allowance to loans				1.25	%			1.52	%			1.61	%			1.37	%			1.37	%
	Allowance to nonperforming loans				113	%			130	%			93	%			90	%			133	%
	Nonperforming loans to loans				1.11	%			1.17	%			1.74	%			1.52	%			1.03	%
Average Balance Information				Q1 2014				Q4 2013				Q3 2013				Q2 2013				Q1 2013
	Loans			$	75,194			$	73,987			$	72,037			$	68,778			$	67,918
	Earning assets				83,751				82,639				82,186				77,775				80,068
	Assets				92,670				89,544				88,666				84,070				83,181
	Deposits				81,478				79,335				79,399				74,488				75,540
	Stockholders' equity				9,570				8,095				6,939				6,636				5,274
	Loans to deposits				92	%			93	%			91	%			92	%			90	%
	Net interest margin				4.25	%			4.27	%			4.20	%			3.99	%			3.91	%