Business & Finance
Business and Finance
Business and Finance 
Mon, November 2, 2009
Sun, November 1, 2009
Sat, October 31, 2009
Fri, October 30, 2009
BOISE, ID--(Marketwire - October 30, 2009) - Today Idaho Bancorp (the "Company") (
In light of continued economic weakness, the Company increased its allowance for loan losses by $3,952,000 and charged off $4,548,000 in net loan losses, resulting in a reserve of 4.33% of outstanding loans at September 30, 2009 compared to 1.51% and 2.17% as of September 30, 2008 and December 31, 2008, respectively. These actions resulted in a net loss for the Company of $7,438,000 for the nine months ended September 30, 2009 compared to a net income of $159,000 for the nine months ended September 30, 2008. The reported loss represents ($4.04) per share compared to a net income of $0.09 per share for the first nine months of 2008. The book value per share was $4.43 and $9.63 as of September 30, 2009 and 2008, respectively.
Highlights
-- The Company's Home Loan Center increased non-interest income by $284,000, or 52%, when comparing the nine-month periods ended September 30, 2009 and 2008, respectively -- The Company's in-market core deposits, excluding certificates of deposit, increased $17,958,000, or 25.9% when comparing balances at September 30, 2009 to balances at September 30, 2008
The Company's nonperforming assets were $19,823,000 and $11,287,000 at September 30, 2009 and December 31, 2008, respectively. The Company's loans considered to be more than thirty days past due and still on accrual status were $5,451,000, or 2.77% of outstanding loans, at September 30, 2009 compared to $491,000 at December 31, 2008. Included above for September 30, 2009 is $1,395,000 in one loan ninety days or more past due and still accruing interest. There were no loans more than ninety days past due and still accruing interest as of December 31, 2008.
The net interest margin for the nine-month period ended September 30, 2009 was 3.56% compared to 3.88% for the same time period in 2008. Net interest income was reduced by approximately $596,000 due to the reversal of earned interest and lost potential interest income resulting from non-accrual loans. This lost interest income accounts for 35 basis points in the reduction of the year-to-date net interest margin for 2009. Excluding the impact of non-accrual loans, the net interest margin would have improved 3 basis points. That improvement in the net interest margin is partially due to the Company's continued focus on growing lower costing core deposits with products like the Perfectly Free Non-Interest Business Checking product.
The Company has had significant improvements in its 2009 non-interest income compared to 2008. The Company's Home Loan Center, through the origination of held-for-sale residential mortgage loans, has increased its non-interest income by $284,000, or 52%, when comparing the nine-month periods ended September 30, 2009 to 2008, respectively. The Company's Home Loan Center continues to be very active in providing funds for individuals and families looking to buy or refinance homes in the Idaho market.
The Company continues to focus on reducing its non-interest expenses. The Company has reduced its full time equivalent employees to 80 as of September 30, 2009 from 86 at September 30, 2008. The 2009 year-to-date salaries, excluding mortgage commissions and 2008 one time charges, have declined by approximately $211,000 from the same time period in 2008. The Company has cut year-to-date costs for travel and entertainment, supplies, postage and freight and various other costs. However, due to increased FDIC fee assessments for all insured banks, the Company's 2009 year-to-date FDIC insurance costs have increased by $284,000, or 301% from the costs recognized in 2008 for the same time period.
Idaho Bancorp is the parent company of Idaho Banking Company, a state-chartered commercial bank and member of the Federal Reserve, which was organized in 1996 and operates four branch offices, and a construction & mortgage home loan center. The Company serves clients throughout southwestern Idaho.
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, including but not limited to the following: the concentration of loans of the company's banking subsidiary, particularly with respect to commercial and residential real estate lending; a continued decline in the housing and real estate market, changes in the regulatory environment and increases in associated costs, particularly ongoing compliance expenses and resource allocation needs in response to regulatory rules and guidelines; vendor quality and efficiency; employee recruitment and retention; the company's ability to control risks associated with rapidly changing technology both from an internal perspective as well as for external providers; increased competition among financial institutions; fluctuating interest rate environments; a tightening of available credit, and similar matters. Readers are cautioned not to place undue reliance on the forward-looking statements. Idaho Bancorp undertakes no obligation to publicly revise or update the forward-looking statements to reflect events or circumstances that arise after the date of this release. This statement is included for the express purpose of invoking PSLRA's safe harbor provisions.
Idaho Bancorp and Subidiary Consolidated Financial Highlights (unaudited) (Dollars in thousands, except per share) For the nine months ended September 30: 2009 2008 $ Change % Change --------- --------- --------- --------- Net interest income $ 5,977 $ 6,486 $ (509) -8% Provision for loan losses 8,500 605 7,895 1305% Mortgage banking income 827 543 284 52% Other non-interest income 401 391 10 3% Non-interest expense 6,604 6,621 (17) 0% Net income / (loss) before taxes (7,899) 194 (8,093) -4172% Income taxes (461) 35 (496) -1417% Net income / (loss) (7,438) 159 (7,597) -4778% Income / (loss) per share Basic (4.04) 0.09 (4.13) -4589% Diluted (4.04) 0.09 (4.13) -4589% At September 30: 2009 2008 $ Change % Change --------- --------- --------- --------- Loans $ 196,606 $ 199,788 $ (3,182) -2% Allowance for loan losses 8,505 3,024 5,481 181% Assets 239,567 239,051 516 0% Deposits 198,240 181,288 16,952 9% Shareholders' equity 15,110 17,724 (2,614) -15% Nonperforming loans 18,153 2,158 15,995 N/A Other real estate owned * 1,670 336 1,334 N/A Book value per share 4.43 9.63 (5.20) -54% Shares of common stock outstanding 1,841,128 1,839,860 1,268 0% Allowance to loan ratio 4.33% 1.51% Allowance to nonperforming loans 47% 140% Nonperforming loans to total loans 9.23% 1.08% Averages for the nine months ended September 30: 2009 2008 $ Change % Change --------- --------- --------- --------- Loans $ 199,297 $ 193,672 $ 5,625 3% Earning assets 228,188 226,537 1,651 1% Assets 237,354 236,730 624 0% Deposits 185,878 182,445 3,433 2% Shareholders' equity 20,002 17,763 2,239 13% For the nine months ended September 30: Return on average assets -4.19% 0.09% Return on average equity -49.72% 1.20% Average loans to deposits 107.22% 106.15% Net interest margin - tax equivalent 3.56% 3.88% Net loan charge-offs (recoveries) 4,548 204 Net charge-offs (recoveries) to loans (annualized) 3.05% 0.14% * Includes only retaken property. Idaho Bancorp and Subsidiary Quarterly Consolidated Financial Highlights (unaudited) (Dollars in thousands, except per share) 2009 Q3 2009 Q2 2009 Q1 2008 Q4 2008 Q3 -------- -------- -------- -------- -------- Net interest income $ 1,914 $ 1,943 $ 2,120 $ 2,084 $ 2,250 Provision for loan losses 1,600 6,200 700 4,104 260 Mortgage banking income 204 281 342 100 168 Other non-interest income 131 135 135 118 135 Non-interest expense 2,118 2,314 2,172 1,718 2,044 Net income / (loss) before taxes (1,469) (6,155) (275) (3,520) 249 Income tax expense / (benefit) 0 (335) (126) (237) 80 Net income / (loss) (1,469) (5,820) (149) (3,283) 169 Earnings / (loss) per share Basic (0.80) (3.16) (0.08) (1.16) 0.09 Diluted (0.80) (3.16) (0.08) (1.16) 0.09 Average loans 197,760 196,244 204,018 202,910 197,948 Average earning assets 227,605 224,179 232,901 231,809 227,730 Average assets 235,053 234,648 242,591 242,032 238,021 Average deposits 191,850 181,921 183,895 180,689 176,924 Average shareholders' equity 16,095 21,896 22,081 17,703 17,763 Return on average assets -2.48% -9.95% -0.25% -5.40% 0.28% Return on average equity -36.21% -106.61% -2.74% -73.78% 3.78% Average loans to deposits 103.08% 107.87% 110.94% 112.30% 111.88% Net interest margin - tax equivalent 3.39% 3.53% 3.75% 3.63% 3.99% Nonperforming loans - period end $ 18,153 $ 14,508 $ 7,637 $ 10,907 $ 2,158 Other real estate owned - period end * 1,670 1,437 1,155 380 336 Loans - period end 196,606 196,341 193,404 209,648 199,788 Allowance for loan losses - period end 8,505 7,583 4,118 4,553 3,024 Net charge-offs (recoveries) - quarterly 678 2,735 1,135 2,575 104 Allowance to loans 4.33% 3.86% 2.13% 2.17% 1.51% Allowance to nonperforming loans 47% 52% 54% 42% 140% Nonperforming loans to total loans 9.23% 7.39% 3.95% 5.20% 1.08% Net charge-offs to loans - annualized 1.36% 5.59% 2.26% 5.05% 0.21% * Includes only retaken property.