Idaho First Bank Reports Mid-Year Results
/EINPresswire.com/ -- MCCALL, ID--(Marketwired - July 26, 2016) - Today Idaho First Bank (OTC PINK: IDFB) reported improved financial results for the second quarter of 2016, with net income of $42,000, as a result of stronger loan growth and secondary residential real estate production. "We are encouraged that our efforts to add key personnel, realign calling efforts, and upgrade our compliance management system, as required under Dodd-Frank, have allowed us to increase loan volume and return to profitability in the second quarter," stated President and CEO, Greg Lovell. He further commented, "We continue our efforts to grow the Bank to help offset the additional costs of regulation and to increase the Bank's franchise value."
With the improved performance during the second quarter, the Bank's year-to-date net loss was reduced to $107,000 for the first half of 2016. The primary reason for the first half loss was the provision for loan losses of $225,000 which caused a loss of $149,000 for the first quarter. Mark Miller, Chairman of the Board, commented, "The Board is pleased that the Bank showed a profit in the second quarter of this year. While the first quarter results were disappointing, the Board concurs that Management made appropriate reserves to protect the Bank against future credit losses. Management believes that the loan provision is not indicative of a general deterioration in credit quality, and the Board concurs with that assessment."
The allowance for loan losses stood at $1,516,000, or 1.35% of loans at June 30, 2016. It compares to $1,448,000, or 1.45% of loans one year earlier. While the allowance increased year-over-year, the reduction in the allowance ratio is a result of loans increasing from $99.6 million to the current balance of $112.2 million, an increase of 13%. Non-performing assets were 1.8% of loans outstanding, or $2.0 million at June 30, 2016, compared to 2.8% of loans at the same date in 2015. This represents a 28% reduction in non-performing loans year-over-year.
Don Madsen, Chief Financial Officer stated, "Our balance sheet shows fundamental strength from strong capital and liquidity." Shareholders' equity at June 30, 2016, was $15.6 million, an increase of $1.0 million from a year ago. Book value per share was $6.63 at the end of the quarter, up 37 cents, an increase of 6% from one year ago.
"We have begun to see increased loan volumes and interest income from our business development efforts. We are cautiously optimistic that our continuing investments in people, markets, and technology will improve our results as we continue on in 2016," stated Greg Lovell, President and CEO. "We believe that the roll out of improved mobile banking services as well as increased marketing efforts are improving the Bank's ability to gain profitable relationships."
Idaho First Bank is a state-chartered commercial bank that opened for business in October 2005. Its headquarters are located in McCall, Idaho, with two branches in 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.
Idaho First Bank
Financial Highlights (unaudited)
(Dollars in thousands, except per share)
For the six months ended June 30: 2016 2015 Change
----------- ----------- ---------------
Net interest income $ 2,257 $ 2,194 $ 63 3%
Provision for loan losses 225 170 55 32%
Mortgage banking income 945 1,083 (138) -13%
Other noninterest income 187 171 16 9%
Noninterest expenses 3,340 2,900 440 15%
----------- ----------- --------
Net income before taxes (176) 378 (554) -147%
Tax provision (benefit) (69) (606) 537 89%
----------- ----------- --------
Net income (loss) $ (107) $ 984 $(1,091) -111%
----------- ----------- --------
At June 30: 2016 2015 Change
----------- ----------- ---------------
Loans $ 112,206 $ 99,571 $12,635 13%
Allowance for loan losses 1,516 1,448 68 5%
Assets 134,225 123,471 10,754 9%
Deposits 115,107 107,294 7,813 7%
Stockholders' equity 15,648 14,691 957 7%
Nonaccrual loans 2,030 2,828 (798) -28%
Accruing loans more than 90 days
past due - -
Other real estate owned - -
Total nonperforming assets 2,030 2,828 (798) -28%
Book value per share 6.63 6.26 0.37 6%
Shares outstanding 2,360,331 2,345,864 14,467 1%
Allowance to loans 1.35% 1.45%
Allowance to nonperforming loans 75% 51%
Nonperforming loans to total loans 1.81% 2.84%
Averages for the six months ended
June 30: 2016 2015 Change
----------- ----------- ---------------
Loans $ 99,072 $ 92,710 $ 6,362 7%
Earning assets 113,782 105,909 7,873 7%
Assets 125,025 115,861 9,164 8%
Deposits 106,460 100,957 5,503 5%
Stockholders' equity 15,638 13,338 2,300 17%
Loans to deposits 93% 92%
Net interest margin 3.99% 4.18%
Idaho First Bank
Quarterly Financial Highlights (unaudited)
(Dollars in thousands)
Income Statement Q2 2016 Q1 2016 Q4 2015 Q3 2015 Q2 2015
--------- --------- --------- --------- ---------
Net interest income $ 1,159 $ 1,098 $ 1,190 $ 1,185 $ 1,111
Provision for loan
losses - 225 - 150 120
Mortgage banking income 535 410 269 603 658
Other noninterest income 100 87 81 89 88
Noninterest expenses 1,720 1,620 1,467 1,576 1,535
--------- --------- --------- --------- ---------
Net income (loss)
before taxes 74 (250) 73 151 202
Tax provision (benefit) 32 (101) (412) (303) (303)
--------- --------- --------- --------- ---------
Net income (loss) $ 42 $ (149) $ 485 $ 454 $ 505
--------- --------- --------- --------- ---------
Period End Information Q2 2016 Q1 2016 Q4 2015 Q3 2015 Q2 2015
--------- --------- --------- --------- ---------
Loans $112,206 $ 93,945 $ 96,102 $ 97,164 $ 99,571
Allowance for loan
losses 1,516 1,468 1,234 1,586 1,448
Nonperforming loans 2,030 1,567 1,157 1,797 2,828
Other real estate owned - 383 383 - -
Quarterly net charge-
offs (48) (9) 351 12 (4)
Allowance to loans 1.35% 1.56% 1.28% 1.63% 1.45%
Allowance to
nonperforming loans 75% 94% 107% 88% 51%
Nonperforming loans to
loans 1.81% 1.67% 1.20% 1.85% 2.84%
Average Balance
Information Q2 2016 Q1 2016 Q4 2015 Q3 2015 Q2 2015
--------- --------- --------- --------- ---------
Loans $103,683 $ 94,460 $ 97,346 $ 97,989 $ 96,414
Earning assets 116,762 110,803 112,047 113,871 110,038
Assets 128,010 122,041 122,934 124,550 120,089
Deposits 108,656 104,263 105,701 108,109 104,687
Stockholders' equity 15,586 15,689 15,309 14,918 13,691
Loans to deposits 95% 91% 92% 91% 92%
Net interest margin 3.99% 3.99% 4.21% 4.13% 4.05%
Contacts:
Greg Lovell
208.630.2001
Don Madsen
208.947.0430
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