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Idaho Banking Company
Reports 2001 Results
BOISE, January 24 /PR
Newswire/ -- Idaho Banking Company (OTC Bulletin Board: IBCB) today
reported net income of $66,000, or $.08 per share for 2001. This compares
to net income of $81,000, or $.10 per share in 2000. Earnings continue to
be negatively impacted by a high level of loan charge-offs, and a decision
to increase the allowance for loan losses from a ratio of 1.30% at
December 31, 2000 to 1.75% at December 31, 2001. Management felt that an
increase in the allowance for loan losses was warranted, due to an
increase in nonperforming loans, and a careful evaluation of loss
potential in the portfolio. The provision for loan losses was $1,045,000
in 2001, compared to $685,000 in 2000. Net loan charge-offs were $661,000,
compared to $340,000 in the prior year.
Net interest margin was
4.28% in 2001, compared to 4.82% in 2000. The rapid decline in interest
rates throughout 2001 had a negative impact on net interest margin, as the
yields on earning assets fell more rapidly than the cost of funds. Helping
to partially offset the negative impact of the decline in net interest
margin was increased activity in the bank’s mortgage operation.
Management is pleased to report that gross mortgage banking income
increased from $448,000 in 2000 to $1,159,000 in 2001.
Loan growth in 2001 was 7%,
with loans ending the year at $71.8 million. Deposits declined 3% during
the year to $76.3 million. The decline in deposits was due to higher
competition for deposits and lower demand for certificates of deposit in
the current low interest-rate market. Shareholders’ equity remained
strong, with a capital to asset ratio of 10.10% at the end of the year.
Book value per share increased from $12.75 a year ago to $12.84 at
December 31, 2001.
Idaho Banking Company, a
state-chartered commercial bank and member of the Federal Reserve Bank,
was organized in 1996. Its primary emphasis is providing personalized
service and local decision-making for clients seeking a change from the
automated and impersonal "big bank" atmosphere. The bank
operates from three branch offices and one mortgage office in Ada County.
Source: Idaho Banking
Company
Contacts: Mary E. Brimson,
VP Shareholder Relations at 208-472-4705, or Don D. Madsen, CFO at
208-947-1880
Idaho Banking Company
Financial Highlights (unaudited)
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Change |
For the year ended December 31: |
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2001 |
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2000 |
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$ |
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% |
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Net interest income |
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$ 3,875 |
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$ 3,545 |
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$ 330 |
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9% |
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Provision for loan losses |
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1,045 |
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685 |
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360 |
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53% |
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Mortgage banking income |
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1,159 |
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448 |
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711 |
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159% |
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Gains on loan sales |
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77 |
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97 |
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(20) |
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-21% |
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Other noninterest income |
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359 |
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462 |
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(103) |
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-22% |
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Noninterest expense |
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4,399 |
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3,823 |
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576 |
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15% |
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Net income before taxes |
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26 |
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44 |
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(18) |
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-41% |
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Income taxes |
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(40) |
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(37) |
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(3) |
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8% |
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Net income |
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66 |
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81 |
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(15) |
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-19% |
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Net income per share |
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Basic |
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0.08 |
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0.10 |
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(0.02) |
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-20% |
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Diluted |
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0.08 |
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0.10 |
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(0.02) |
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-20% |
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Change |
At December 31: |
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2001 |
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2000 |
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$ |
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% |
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Loans |
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$ 71,832 |
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$ 67,159 |
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$ 4,673 |
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7% |
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Allowance for loan losses |
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1,259 |
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875 |
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384 |
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44% |
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Assets |
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100,442 |
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94,074 |
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6,368 |
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7% |
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Deposits |
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76,306 |
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78,711 |
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(2,405) |
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-3% |
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Shareholders' equity |
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10,140 |
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9,994 |
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146 |
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1% |
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Nonperforming loans |
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567 |
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93 |
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474 |
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510% |
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Other real estate owned |
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65 |
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65 |
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0 |
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0% |
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Book value per share |
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12.84 |
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12.75 |
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0.09 |
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1% |
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Allowance to loan ratio |
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1.75% |
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1.30% |
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Allowance to nonperforming loans |
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2.2 |
X |
9.4 |
X |
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Change |
Averages for the year ended December 31: |
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2001 |
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2000 |
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$ |
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% |
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Loans |
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$ 70,467 |
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$ 53,960 |
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$ 16,507 |
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31% |
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Earning assets |
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92,494 |
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74,998 |
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17,496 |
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23% |
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Assets |
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98,308 |
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80,904 |
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17,404 |
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22% |
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Deposits |
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80,037 |
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66,483 |
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13,554 |
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20% |
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Shareholders' equity |
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10,054 |
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9,831 |
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223 |
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2% |
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For the year ended December 31: |
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Return on average assets |
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0.07% |
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0.10% |
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Return on average equity |
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0.66% |
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0.82% |
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Average loans to deposits |
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88.04% |
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81.16% |
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Net interest margin - tax equivalent |
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4.28% |
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4.82% |
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Net loan charge-offs |
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661 |
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340 |
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Net charge-offs to loans |
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0.94% |
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0.63% |
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Quarterly Trends (Unaudited) |
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2001 Q4 |
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2001 Q3 |
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2001 Q2 |
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2001 Q1 |
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2000 Q4 |
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Net interest income |
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$ 952 |
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$ 980 |
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$ 974 |
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$ 969 |
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$ 1,009 |
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Provision for loan losses |
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300 |
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380 |
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190 |
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175 |
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355 |
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Mortgage banking income |
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349 |
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332 |
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297 |
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181 |
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109 |
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Gains on loan sales |
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15 |
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0 |
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33 |
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29 |
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0 |
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Other noninterest income |
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82 |
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85 |
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89 |
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103 |
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118 |
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Noninterest expense |
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1,114 |
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1,069 |
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1,149 |
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1,067 |
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1,017 |
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Net income before taxes |
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(16) |
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(52) |
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54 |
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40 |
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(136) |
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Income taxes |
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(18) |
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(30) |
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0 |
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8 |
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(65) |
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Net income |
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2 |
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(22) |
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54 |
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32 |
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(71) |
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Net income per share |
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Basic |
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0.00 |
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(0.03) |
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0.07 |
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0.04 |
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(0.09) |
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Diluted |
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0.00 |
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(0.03) |
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0.07 |
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0.04 |
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(0.09) |
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Average loans |
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72,171 |
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72,534 |
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69,994 |
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67,089 |
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63,603 |
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Average earning assets |
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95,791 |
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93,059 |
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91,781 |
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89,266 |
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85,203 |
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Average assets |
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101,101 |
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99,147 |
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97,551 |
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95,361 |
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91,559 |
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Average deposits |
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80,562 |
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81,072 |
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79,535 |
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78,949 |
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76,419 |
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Average shareholders' equity |
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10,101 |
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10,099 |
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10,009 |
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10,006 |
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9,978 |
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Return on average assets |
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0.01% |
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-0.09% |
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0.22% |
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0.14% |
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-0.31% |
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Return on average equity |
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0.08% |
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-0.86% |
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2.16% |
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1.30% |
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-2.83% |
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Average loans to deposits |
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89.58% |
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89.47% |
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88.00% |
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84.98% |
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83.23% |
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Net interest margin - tax equivalent |
4.03% |
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4.26% |
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4.35% |
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4.49% |
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4.79% |
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Nonperforming loans - period end |
$ 567 |
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$ 622 |
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$ 358 |
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$ 121 |
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$ 93 |
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Other real estate owned - period end |
65 |
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65 |
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65 |
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65 |
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65 |
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Loans - period end |
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71,832 |
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72,673 |
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70,785 |
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67,105 |
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67,159 |
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Allowance for loan losses - period end |
1,259 |
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1,192 |
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929 |
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916 |
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875 |
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Net charge-offs (recoveries) - quarterly |
233 |
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117 |
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177 |
|
134 |
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254 |
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Allowance to loans |
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1.75% |
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1.64% |
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1.31% |
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1.37% |
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1.30% |
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Allowance to nonperforming loans |
2.2 |
X |
1.9 |
X |
2.6 |
X |
7.6 |
X |
9.4 |
X |
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Net charge-offs to loans - annualized |
1.28% |
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0.64% |
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1.01% |
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0.81% |
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1.59% |
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