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Idaho Banking Company Reports Quarterly Results
BOISE, July 20 /PR Newswire/ -- Idaho Banking Company
(OTC Bulletin Board: IBCB) today reported net income of $54,000 for the
second quarter of 2001, or $.07 per share. Net income in the second
quarter of 2000 was $64,000, or $.08 per share. The decrease in net income
is partially attributable to an increase in the provision for loan losses
from $120,000 in the second quarter of last year to $190,000 in the second
quarter of this year. Also, impacting year to year earnings were the
dramatic declines in interest rates since the first of the year. Net
interest margin decreased from 5.00% in the second quarter of 2000 to
4.35% in the second quarter of 2001.
Net income for the first six months of the year was
$86,000, or $.11 per share, the same as last year. On a year-to-date basis
the provision for loan losses was $365,000 in 2001, compared to $210,000
in 2000. Net interest margin was 4.42% for the first six months of 2001,
compared to 4.82% in the same period last year. Helping to offset the
decline in net interest margin was higher gross mortgage banking income,
which increased from $189,000 last year to $478,000 in the first half of
this year.
Loans increased 5.5% in the second quarter this year, and
are 32% higher than one year ago. The management of loan quality,
refinements in loan policies, and underwriting standards have received
increased attention this year. Net loan charge-offs totaled $177,000 in
the second quarter of 2001, compared to $134,000 in the first quarter of
2001 and $254,000 in the last quarter of 2000. Management is still not
content with this level of activity and is spending considerable efforts
to reduce future loan losses. The allowance for loan losses was 1.31% at
June 30, 2001 compared to 1.30% at the end of last year.
Shareholders’ equity remained strong, with a capital to
asset ratio of 10.15% at the end of the quarter. Book value per share has
increased from $12.58 a year ago to $12.89 at June 30, 2001.
Idaho Banking Company, a state-chartered commercial bank
and member of the Federal Reserve Bank, was organized in 1996. Its primary
emphasis is providing personalized service and local decision-making for
clients seeking a change from the automated and impersonal "big
bank" atmosphere. The bank operates from three branch offices and one
mortgage office in Ada County.
Source: Idaho Banking
Company
Contacts: Cortland D.
Rounds, President/CEO at 208-472-4700, Mary E. Brimson, VP Shareholder
Relations at 208-472-4705, or Don D. Madsen, CFO at 208-947-1880
Idaho Banking Company
Financial Highlights (unaudited)
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Change |
For the six months ended June 30: |
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2001 |
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2000 |
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$ |
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% |
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Net interest income |
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$ 1,943 |
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$ 1,619 |
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$ 324 |
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20% |
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Provision for loan losses |
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365 |
|
210 |
|
155 |
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74% |
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Mortgage banking income |
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|
|
478 |
|
189 |
|
289 |
|
153% |
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Gains on loan sales |
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62 |
|
69 |
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(7) |
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-10% |
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Other noninterest income |
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192 |
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232 |
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(40) |
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-17% |
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Noninterest expense |
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2,216 |
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1,809 |
|
407 |
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22% |
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Net income before taxes |
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|
94 |
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90 |
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4 |
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4% |
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Income taxes |
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8 |
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4 |
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4 |
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100% |
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Net income |
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86 |
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86 |
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0 |
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0% |
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Net income per share |
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Basic |
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0.11 |
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0.11 |
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- |
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0% |
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Diluted |
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0.11 |
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0.11 |
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- |
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0% |
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Change |
At June 30: |
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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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$70,785 |
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$53,456 |
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$17,329 |
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32% |
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Allowance for loan losses |
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929 |
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741 |
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188 |
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25% |
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Assets |
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99,570 |
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79,911 |
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19,659 |
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25% |
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Deposits |
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82,589 |
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63,499 |
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19,090 |
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30% |
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Shareholders' equity |
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10,107 |
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9,862 |
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245 |
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2% |
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Book value per share |
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12.89 |
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12.58 |
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0.31 |
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2% |
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Allowance to loan ratio |
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1.31% |
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1.39% |
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Change |
Averages for the six months ended June 30: |
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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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$68,550 |
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$47,999 |
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$20,551 |
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43% |
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Earning assets |
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90,530 |
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68,932 |
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21,598 |
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31% |
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Assets |
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96,462 |
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74,418 |
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22,044 |
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30% |
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Deposits |
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79,244 |
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60,474 |
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18,770 |
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31% |
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Shareholders' equity |
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10,007 |
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9,737 |
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270 |
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3% |
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Return on average assets |
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0.18% |
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0.23% |
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Return on average equity |
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1.73% |
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1.78% |
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Average loans to deposits |
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86.50% |
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79.37% |
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Net interest margin - tax equivalent |
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4.42% |
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4.82% |
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Quarterly Trends (Unaudited) |
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2001 Q2 |
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2001 Q1 |
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2000 Q4 |
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2000 Q3 |
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2000 Q2 |
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Net interest income |
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$ 974 |
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$ 969 |
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$ 1,009 |
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$ 917 |
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$ 858 |
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Provision for loan losses |
|
190 |
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175 |
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355 |
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120 |
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120 |
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Mortgage banking income |
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297 |
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181 |
|
109 |
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150 |
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112 |
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Gains on loan sales |
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33 |
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29 |
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0 |
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28 |
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58 |
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Other noninterest income |
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89 |
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103 |
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118 |
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112 |
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130 |
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Noninterest expense |
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1,149 |
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1,067 |
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1,017 |
|
997 |
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970 |
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Net income before taxes |
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54 |
|
40 |
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(136) |
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90 |
|
68 |
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Income taxes |
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0 |
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8 |
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(65) |
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24 |
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4 |
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Net income |
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54 |
|
32 |
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(71) |
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66 |
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64 |
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Net income per share |
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Basic |
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0.07 |
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0.04 |
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(0.09) |
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0.08 |
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0.08 |
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Diluted |
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0.07 |
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0.04 |
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(0.09) |
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0.08 |
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0.08 |
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Average loans |
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69,994 |
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67,089 |
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63,603 |
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56,112 |
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50,897 |
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Average earning assets |
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91,781 |
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89,266 |
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85,203 |
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76,796 |
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70,370 |
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Average assets |
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97,551 |
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95,361 |
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91,559 |
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83,081 |
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75,972 |
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Average deposits |
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79,535 |
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78,949 |
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76,419 |
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68,435 |
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62,370 |
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Average shareholders' equity |
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10,009 |
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10,006 |
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9,978 |
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9,870 |
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9,763 |
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Return on average assets |
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0.22% |
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0.14% |
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-0.31% |
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0.32% |
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0.34% |
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Return on average equity |
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2.16% |
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1.30% |
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-2.83% |
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2.66% |
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2.64% |
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Average loans to deposits |
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88.00% |
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84.98% |
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83.23% |
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81.99% |
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81.60% |
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Net interest margin - tax equivalent |
4.35% |
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4.49% |
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4.79% |
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4.86% |
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5.00% |
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Nonperforming loans - period end |
$ 358 |
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$ 121 |
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$ 93 |
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$ 213 |
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$ 67 |
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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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290 |
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290 |
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Loans - period end |
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70,785 |
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67,105 |
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67,159 |
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58,921 |
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53,456 |
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Allowance for loan losses - period end |
929 |
|
916 |
|
875 |
|
775 |
|
741 |
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Net charge-offs (recoveries) - quarterly |
177 |
|
134 |
|
254 |
|
86 |
|
(2) |
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Allowance to loans |
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1.31% |
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1.37% |
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1.30% |
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1.32% |
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1.39% |
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Allowance to nonperforming loans |
2.6 |
X |
7.6 |
X |
9.4 |
X |
3.6 |
X |
11.1 |
X |
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Quarterly net charge-offs - annualized |
1.01% |
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0.81% |
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1.59% |
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0.61% |
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-0.02% |
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