MCCALL, ID--(Marketwire - Oct 18, 2012) - Today Idaho First Bank (OTCQB: [ IDFB ]) reported financial results for the quarter and nine months ended September 30, 2012. The Bank reported net income of $144,000 for the first nine months of 2012, compared to a loss of $214,000 in the same period of 2011. Compared to the prior year, the change was attributable to a 35% increase in net interest income. This was driven by average loan growth of 22% and an improving net interest margin. Year-to-date net interest margin improved from 2.88% in 2011 to 3.86% in 2012. Year-to-date mortgage banking income also grew substantially from $562,000 in 2011 to $1,452,000 in 2012. "The Board is proud of the hard work of staff and management in reaching our fifth consecutive quarter of profitability," stated Mark Miller, Chairman of the Board of Directors.

Net income for the third quarter of 2012 was $105,000, a record for the highest quarterly income in the Bank's history. The third quarter of 2012 marks the fifth consecutive quarter of net income for the Bank. Net income of $105,000 for the quarter compares with quarterly income of $55,000 in the same quarter of 2011 and $16,000 of quarterly income in the second quarter of 2012. 

Nonperforming assets were $2.2 million at September 30, 2012, an increase from the prior year, but an improvement from March 31, 2012. There were no loan charge-offs in the third quarter and loan recoveries of $39,000. The allowance for loan losses was 1.60% of loans at September 30 and 81% of nonperforming loans. Mr. Lovell commented, "We are cautiously optimistic about the improving trends in our portfolio. We continue to closely monitor the performance of our loan portfolio and aggressively take action as problems arise."

Stockholders' equity was $4.9 million at September 30, 2012, or 6% of assets. Book value was 60 cents per share, two cents more than at September 30, 2011.

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 loan production office in downtown 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.