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Idaho Banking Company Reports 3rd Quarter
Results
BOISE, October 21 /PR Newswire-First Call/ -- Idaho
Banking Company (OTC Bulletin Board: IBCB) today reported third quarter
net income of $40,000, or $.05 per share. Year-to-date the Bank made
$68,000, or $.08 per share, which is 6% higher than the first nine months
of 2001. Record single family mortgage loan originations and lower
provisions for loan losses contributed to the improvement in earnings. The
current interest rate environment has compressed the Bank’s year-to-date
net interest margin to 4.01% but the balance sheet is very strong with
capital at 9.76% of total assets of $113 million.
Nonperforming loans increased slightly during the third
quarter to $386,000 at September 30, 2002. However, this total is nearly
40% less than the level of one year ago. During the third quarter of 2002
the allowance for loan losses increased from 1.50% to 1.84%. The provision
for loan losses was $230,000 for the third quarter. This increase to the
allowance was not diluted by charge-offs, as loan recoveries for the
quarter slightly exceeded loan charge-offs.
As mentioned, shareholders’ equity remained strong, with
a capital to asset ratio of 9.76% at September 30, 2002. Book value per
share of $13.06 at September 30, 2002 is up from $12.91 a year ago.
"2002 has been a very challenging year for the
Bank" said Mike Johnston, President and Chief Executive Officer.
"Not only has the post September 11th recession affected
growth of the Bank’s loan portfolio but the consecutive interest rate
cuts by the Federal Reserve has resulted in margin compression. But we’ve
taken the opportunity in the past six months to focus on repositioning our
loan portfolio and to significantly grow our deposit base. With a loan to
deposit ratio of 76%, the Bank is well positioned to exploit opportunities
associated with any economic expansion in the Treasure Valley."
Idaho Banking Company, a state-chartered commercial bank
and member of the Federal Reserve Bank, was organized in 1996. The bank
operates from three branch offices and one mortgage office in Ada County.
Source: Idaho Banking
Company
Contacts: Michael K.
Johnston, President & CEO at 208-472-4702, Mary E. Brimson, VP
Shareholder Relations at 208-472-4705, or Don D. Madsen, CFO at
208-947-1880
Idaho Banking Company
Financial Highlights (unaudited)
($ in thousands)
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Change |
For the nine months ended September 30: |
|
2002 |
|
2001 |
|
$ |
|
% |
|
Net interest income |
|
|
|
$ 2,837 |
|
$ 2,923 |
|
$ (86) |
|
-3% |
|
Provision for loan losses |
|
|
|
630 |
|
745 |
|
(115) |
|
-15% |
|
Mortgage banking income |
|
|
|
913 |
|
810 |
|
103 |
|
13% |
|
Gains on loan sales |
|
|
|
6 |
|
62 |
|
(56) |
|
-90% |
|
Other noninterest income |
|
|
|
243 |
|
277 |
|
(34) |
|
-12% |
|
Noninterest expense |
|
|
|
3,284 |
|
3,285 |
|
(1) |
|
0% |
|
Net income before taxes |
|
|
|
85 |
|
42 |
|
43 |
|
102% |
|
Income taxes |
|
|
|
|
17 |
|
(22) |
|
39 |
|
177% |
|
Net income |
|
|
|
|
68 |
|
64 |
|
4 |
|
6% |
|
|
|
|
|
|
|
|
|
|
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Net income per share |
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|
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Basic |
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|
|
|
0.08 |
|
0.08 |
|
- |
|
0% |
|
|
Diluted |
|
|
|
|
0.08 |
|
0.08 |
|
- |
|
0% |
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|
|
|
|
|
|
|
|
|
|
|
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Change |
At September 30: |
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|
2002 |
|
2001 |
|
$ |
|
% |
|
Loans |
|
|
|
|
|
$ 71,142 |
|
$ 72,673 |
|
$ (1,531) |
|
-2% |
|
Allowance for loan losses |
|
|
|
1,309 |
|
1,192 |
|
117 |
|
10% |
|
Assets |
|
|
|
|
112,671 |
|
104,191 |
|
8,480 |
|
8% |
|
Deposits |
|
|
|
|
93,542 |
|
86,148 |
|
7,394 |
|
9% |
|
Shareholders' equity |
|
|
|
10,996 |
|
10,116 |
|
880 |
|
9% |
|
Nonperforming loans |
|
|
|
386 |
|
622 |
|
(236) |
|
-38% |
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Other real estate owned |
|
|
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0 |
|
65 |
|
(65) |
|
-100% |
|
|
|
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|
|
|
|
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|
|
|
|
|
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Book value per share |
|
|
|
13.06 |
|
12.91 |
|
0.15 |
|
1% |
|
Shares of common stock outstanding |
|
|
841,846 |
|
783,846 |
|
58,000 |
|
7% |
|
|
|
|
|
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Allowance to loan ratio |
|
|
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1.84% |
|
1.64% |
|
|
|
|
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Allowance to nonperforming loans |
|
|
3.4 |
X |
1.9 |
X |
|
|
|
|
Nonperforming loans to total loans |
|
|
0.54% |
|
0.86% |
|
|
|
|
|
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Change |
Averages for nine months ended September 30: |
|
2002 |
|
2001 |
|
$ |
|
% |
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Loans |
|
|
|
|
|
$ 69,659 |
|
$ 69,892 |
|
$ (233) |
|
0% |
|
Earning assets |
|
|
|
|
96,620 |
|
91,382 |
|
5,238 |
|
6% |
|
Assets |
|
|
|
|
101,742 |
|
97,367 |
|
4,375 |
|
4% |
|
Deposits |
|
|
|
|
81,008 |
|
79,860 |
|
1,148 |
|
1% |
|
Shareholders' equity |
|
|
|
10,741 |
|
10,038 |
|
703 |
|
7% |
|
|
|
|
|
|
|
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For the nine months ended September 30: |
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Return on average assets |
|
|
|
0.09% |
|
0.09% |
|
|
|
|
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Return on average equity |
|
|
|
0.85% |
|
0.85% |
|
|
|
|
|
Average loans to deposits |
|
|
|
85.99% |
|
87.52% |
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|
|
|
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Net interest margin - tax equivalent |
|
|
4.01% |
|
4.36% |
|
|
|
|
|
Net loan charge-offs |
|
|
|
580 |
|
428 |
|
|
|
|
|
Net charge-offs to loans |
|
|
|
1.11% |
|
0.82% |
|
|
|
|
Quarterly Trends (Unaudited) |
|
2002 Q3 |
|
2002 Q2 |
|
2002 Q1 |
|
2001 Q4 |
|
2001 Q3 |
|
|
Net interest income |
|
$ 963 |
|
$ 925 |
|
$ 949 |
|
$ 952 |
|
$ 980 |
|
|
Provision for loan losses |
|
230 |
|
220 |
|
180 |
|
300 |
|
380 |
|
|
Mortgage banking income |
|
401 |
|
232 |
|
280 |
|
349 |
|
332 |
|
|
Gains on loan sales |
|
0 |
|
0 |
|
6 |
|
15 |
|
0 |
|
|
Other noninterest income |
|
86 |
|
79 |
|
78 |
|
82 |
|
85 |
|
|
Noninterest expense |
|
1,166 |
|
1,022 |
|
1,096 |
|
1,114 |
|
1,069 |
|
|
Net income before taxes |
|
54 |
|
(6) |
|
37 |
|
(16) |
|
(52) |
|
|
Income taxes |
|
|
14 |
|
(7) |
|
10 |
|
(18) |
|
(30) |
|
|
Net income |
|
|
40 |
|
1 |
|
27 |
|
2 |
|
(22) |
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|
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|
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Net income per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
0.05 |
|
0.00 |
|
0.03 |
|
0.00 |
|
(0.03) |
|
|
|
Diluted |
|
|
0.05 |
|
0.00 |
|
0.03 |
|
0.00 |
|
(0.03) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Average loans |
|
|
71,473 |
|
67,784 |
|
69,701 |
|
72,171 |
|
72,534 |
|
|
Average earning assets |
|
103,075 |
|
92,784 |
|
93,901 |
|
95,791 |
|
93,059 |
|
|
Average assets |
|
|
108,336 |
|
98,023 |
|
98,762 |
|
101,101 |
|
99,147 |
|
|
Average deposits |
|
|
89,420 |
|
78,496 |
|
74,950 |
|
80,562 |
|
81,072 |
|
|
Average shareholders' equity |
|
10,832 |
|
10,799 |
|
10,588 |
|
10,101 |
|
10,099 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
0.15% |
|
0.00% |
|
0.11% |
|
0.01% |
|
-0.09% |
|
|
Return on average equity |
|
1.47% |
|
0.04% |
|
1.03% |
|
0.08% |
|
-0.86% |
|
|
Average loans to deposits |
|
79.93% |
|
86.35% |
|
93.00% |
|
89.58% |
|
89.47% |
|
|
Net interest margin - tax equivalent |
3.79% |
|
4.08% |
|
4.20% |
|
4.03% |
|
4.26% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Nonperforming loans - period end |
$ 386 |
|
$ 313 |
|
$ 485 |
|
$ 567 |
|
$ 622 |
|
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Other real estate owned - period end |
0 |
|
0 |
|
65 |
|
65 |
|
65 |
|
|
Loans - period end |
|
|
71,142 |
|
71,637 |
|
66,329 |
|
71,832 |
|
72,673 |
|
|
Allowance for loan losses - period end |
1,309 |
|
1,078 |
|
1,194 |
|
1,259 |
|
1,192 |
|
|
Net charge-offs (recoveries) - quarterly |
(1) |
|
336 |
|
245 |
|
233 |
|
117 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance to loans |
|
1.84% |
|
1.50% |
|
1.80% |
|
1.75% |
|
1.64% |
|
|
Allowance to nonperforming loans |
3.4 |
X |
3.4 |
X |
2.5 |
X |
2.2 |
X |
1.9 |
X |
|
Nonperforming loans to total loans |
0.54% |
|
0.44% |
|
0.73% |
|
0.79% |
|
0.86% |
|
|
Net charge-offs to loans - annualized |
-0.01% |
|
1.99% |
|
1.43% |
|
1.28% |
|
0.64% |
|
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