Today Idaho First Bank (OTCBB: IDFB) reported financial results for
the first quarter of 2009. The Bank continues to report significant
growth. Loans grew to $55.4 million at March 31, a 51% increase
from one year ago. Deposits grew by 53% during the same period.
The net loss reported for the first quarter of 2009 was $395,000
compared with a loss of $728,000 in the first quarter of 2008 and
$603,000 in the fourth quarter of 2008. The first quarter 2009 loss
is less than those earlier quarters because of a reduced provision
for credit losses. Net interest margin continued to contract as a
result of extremely low interest rates but now appears to be
stabilizing.
The allowance for loan losses was 1.54% of total loans at the
end of the quarter and was 49% of nonperforming loans at March 31,
2009. The Bank continues to be impacted by worsening economic
conditions both nationally and locally. As of March 31, 2009,
nonperforming loans increased to $1,731,000, or 3.12% of loans. In
addition, the Bank had $519,000 of other real estate owned bringing
total nonperforming assets to $2,250,000. "The Bank's lending staff
is working diligently with our clients to identify potential
problems early and to begin mitigation actions as soon as
possible," stated President and CEO Greg Lovell. He further noted
that "despite these diligent efforts the economic climate will
continue to be a negative impact on growth and credit this
year."
On April 28, 2009, the Bank signed a Preferred Stock Purchase
Agreement with Alcar, LLC wherein Alcar agrees to purchase $7.1
million of newly issued preferred stock of the Bank. The preferred
stock will be convertible to common stock at a price of $5.00 per
share, at their option, but not later than December 31, 2012. The
preferred stock will have voting rights and will not pay dividends.
The finalization of this investment is subject to approval by the
bank regulatory agencies. The regulatory approvals are expected to
be gained during the third quarter of 2009. When the investment is
complete Mr. Robert Hirt and Mr. Gary Lieberman will represent this
major investment by joining the Board of Directors.
Mr. Lieberman is the founder and Managing Director of Westside
Advisors, LLC, an investment management firm located in New York
City. Mr. Hirt is the founder and CEO of RPM Mortgage, Inc. of
Walnut Creek, California. His company will originate approximately
$3 billion in new residential mortgages this year in the twelve
states in which they operate.
This investment will be subject to shareholder approval which
should be completed before the end of the second quarter. Idaho
First Bank is one of the few banks in the nation to have raised
private capital this year. "We believe this investment
significantly strengthens the balance sheet of the bank and
provides a very solid base to reach profitability," said Mr.
Lovell. "We are pleased to affiliate with a Bank that has
established an impressive market share in a short time," stated Mr.
Lieberman. Mr. Hirt added, "We believe that the combination of
banking, investment, and mortgage lending will allow us to build a
powerful and stable financial services company."
This capital infusion is extremely good news for all
shareholders as it will allow the Bank to attain profitability
shortly following the close of the transaction. Shareholders will
receive additional information in the near future regarding this
transaction.
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.
The stock is traded over-the-counter under symbol IDFB.OB.
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.
Idaho First Bank
Financial Highlights (unaudited)
(Dollars in thousands, except per share)
For the three months ended March 31: 2009 2008 Change
--------- --------- ---------------
Net interest income $ 556 $ 420 $ 136 32%
Provision for loan losses 225 410 (185) -45%
Mortgage banking income 65 33 32 97%
Other noninterest income 49 43 6 14%
Noninterest expenses 840 814 26 3%
Net loss (395) (728) 333 46%
At March 31: 2009 2008 Change
--------- --------- ---------------
Loans $ 55,394 $ 36,689 $ 18,705 51%
Allowance for loan losses 854 462 392 85%
Assets 67,558 46,193 21,365 46%
Deposits 56,786 36,998 19,788 53%
Stockholders' equity 6,124 5,361 763 14%
Nonaccrual loans 1,133 147 986
Accruing loan more than 90 days
past due 598 598
Other real estate owned 519 519
Total nonperforming assets 2,250 147 2,103
Book value per share 4.45 5.88 (1.43) -24%
Shares outstanding 1,376,584 910,964 465,620 51%
Allowance to loans 1.54% 1.26%
Allowance to nonperforming loans 49% 314%
Nonperforming loans to total loans 3.12% 0.40%
Averages for the three months ended
March 31: 2009 2008 Change
--------- --------- ---------------
Loans $ 53,814 $ 31,195 $ 22,619 73%
Earning assets 65,418 40,563 24,855 61%
Assets 68,547 42,984 25,563 59%
Deposits 58,083 34,255 23,828 70%
Stockholders' equity 6,057 5,717 340 6%
Loans to deposits 93% 91%
Net interest margin 3.45% 4.16%
Idaho First Bank
Quarterly Financial Highlights (unaudited)
(Dollars in thousands)
Q1 2009 Q4 2008 Q3 2008 Q2 2008 Q1 2008
-------- -------- -------- -------- --------
Net interest income $ 556 $ 537 $ 543 $ 477 $ 420
Provision for loan
losses 225 400 175 65 410
Mortgage banking income 65 21 58 49 33
Other noninterest
income 49 50 65 48 43
Noninterest expenses 840 811 840 836 814
Net loss (395) (603) (349) (327) (728)
Period End Information Q1 2009 Q4 2008 Q3 2008 Q2 2008 Q1 2008
-------- -------- -------- -------- --------
Loans $ 55,394 $ 51,665 $ 45,833 $ 42,123 $ 36,689
Allowance for loan
losses 854 741 697 527 462
Nonperforming loans 1,731 1,150 428 147 147
Other real estate owned 519 459
Quarterly net
charge-offs 112 356 5 - 348
Allowance to loans 1.54% 1.43% 1.52% 1.25% 1.26%
Allowance to
nonperforming loans 49% 64% 163% 359% 314%
Nonperforming loans to
loans 3.12% 2.23% 0.93% 0.35% 0.40%
Average Balance
Information Q1 2009 Q4 2008 Q3 2008 Q2 2008 Q1 2008
-------- -------- -------- -------- --------
Loans $ 53,814 $ 47,504 $ 43,025 $ 39,929 $ 31,195
Earning assets 65,418 60,269 56,757 48,764 40,563
Assets 68,547 62,853 59,588 51,281 42,984
Deposits 58,083 53,441 50,236 42,810 34,255
Stockholders' equity 6,057 5,991 5,615 5,039 5,717
Loans to deposits 93% 89% 86% 93% 91%
Net interest margin 3.45% 3.54% 3.81% 3.93% 4.16%
Contacts: Greg Lovell President and CEO 208-630-2001 Don Madsen
CFO 208-947-0430
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