Idaho Banking Company Reports First Quarter 2004 Results BOISE, Idaho, April 16 /PRNewswire-FirstCall/ -- Today Idaho Banking Company (BULLETIN BOARD: IBCB) reported net income of $120,000 for the first quarter of 2004. On a per share basis, net income increased to $.14 for the quarter which compares very favorably to the $.08 per share reported for the first quarter of 2003. Overall, quarterly net income increased 71% from the same period in 2003 and the first three months of 2004 established another quarterly earnings record for the Bank. The most significant factor driving the earnings improvement was a 40% growth in the loan portfolio over the same period in 2003. The Bank finished the first quarter with total loans exceeding $104 million which resulted in an improvement of the Bank's loan to deposit ratio to 86% as of March 31, 2004. The growth of the loan portfolio combined with the improved mix in the balance sheet yielded a 26% increase in net interest income over the first quarter of the prior year. Quarterly net interest margin also demonstrated improvement to 3.62%. Net interest income has shown increases for three consecutive quarters. Credit quality remains very strong with the Bank finishing the quarter with no loans in non accruing status and past dues loans greater than 30 days only a nominal 0.01% of total loans. The allowance for loan losses decreased to 1.54% of total loans primarily because of the large growth in the loan portfolio. However, given that loan recoveries exceeded loan charge-offs by $33,000 in the first quarter, Management deems the size of the allowance to be adequate. Compared to March 31, 2003, total assets increased 16% to end the quarter at $144.4 million. Similarly, total deposits increased $16.5 million to finish at $120.6 million. On a per share basis, the Company's book value increased $.40 to $13.67. The Bank remains well capitalized according to standards established by the Federal Reserve Bank and the State of Idaho. "The Treasure Valley business climate showed signs of strengthening in the first quarter of 2004" said Mike Johnston, President and CEO. "Commercial loan demand increased and our volume of single family mortgage loan originations, in particular purchase money transactions, remains good. With our new Meridian Branch on schedule to open June 1st, we remain very optimistic on the Bank's prospects for 2004." Idaho Banking Company, a state-chartered commercial bank and member of the Federal Reserve Bank, was organized in 1996. The bank operates three branch offices and one mortgage office in Ada County. A fourth branch, located in Meridian, Idaho, is currently under construction and is expected to open June 1, 2004. Contacts: Michael K. Johnston, President and CEO at 208-472-4702, Mary E. Brimson, SVP Shareholder Relations at 208-472-4705, or Don D. Madsen, EVP and CFO at 208-947-1880 Idaho Banking Company Financial Highlights (unaudited) ($ in thousands) Change For the three months ended March 31: 2004 2003 $ % Net interest income $1,175 $935 $240 26% Provision for loan losses 30 80 (50) -63% Mortgage banking income 179 379 (200) -53% Other noninterest income 78 72 6 8% Noninterest expense 1,213 1,186 27 2% Net income before taxes 189 120 69 58% Income taxes 69 50 19 38% Net income 120 70 50 71% Net income per share Basic 0.14 0.08 0.06 75% Diluted 0.14 0.08 0.06 75% Change At March 31: 2004 2003 $ % Loans $104,217 $74,210 $30,007 40% Allowance for loan losses 1,605 1,575 30 2% Assets 144,394 123,965 20,429 16% Deposits 120,557 104,055 16,502 16% Shareholders' equity 11,626 11,174 452 4% Nonperforming loans 0 261 (261) -100% Other real estate owned 0 0 0 Book value per share 13.67 13.27 0.40 3% Shares of common stock outstanding 850,746 841,846 8,900 1% Allowance to loan ratio 1.54% 2.12% Allowance to nonperforming loans N/A 6.0 X Nonperforming loans to total loans 0.00% 0.35% Averages for the three months Change ended March 31: 2004 2003 $ % Loans $96,170 $71,730 $24,440 34% Earning assets 133,175 114,061 19,114 17% Assets 139,194 119,516 19,678 16% Deposits 116,916 100,211 16,705 17% Shareholders' equity 11,485 10,930 555 5% For the three months ended March 31: Return on average assets 0.35% 0.24% Return on average equity 4.20% 2.60% Average loans to deposits 82.26% 71.58% Net interest margin - tax equivalent 3.62% 3.40% Net loan charge-offs (recoveries) (33) (85) Net charge-offs to loans -0.14% -0.48% Quarterly Trends (Unaudited) 2004 Q1 2003 Q4 2003 Q3 2003 Q2 2003 Q1 Net interest income $1,175 $1,118 $1,070 $925 $935 Provision for loan losses 30 0 0 20 80 Mortgage banking income 179 175 229 378 379 Securities gains 0 0 0 56 0 Other noninterest income 78 67 61 77 72 Noninterest expense 1,213 1,173 1,216 1,295 1,186 Net income before taxes 189 187 144 121 120 Income taxes 69 79 43 38 50 Net income 120 108 101 83 70 Net income per share Basic 0.14 0.13 0.12 0.10 0.08 Diluted 0.14 0.12 0.12 0.10 0.08 Average loans 96,170 85,528 79,012 75,030 71,730 Average earning assets 133,175 127,554 121,515 118,301 114,061 Average assets 139,194 134,031 127,840 123,547 119,516 Average deposits 116,916 111,943 104,555 104,594 100,211 Average shareholders' equity 11,485 11,279 11,132 11,009 10,930 Return on average assets 0.35% 0.32% 0.31% 0.27% 0.24% Return on average equity 4.20% 3.80% 3.60% 3.02% 2.60% Average loans to deposits 82.26% 76.40% 75.57% 71.73% 71.58% Net interest margin - tax equivalent 3.62% 3.55% 3.57% 3.21% 3.40% Nonperforming loans - period end $0 $64 $289 $348 $261 Other real estate owned - period end 0 0 0 0 0 Loans - period end 104,217 88,612 82,079 76,958 74,210 Allowance for loan losses - period end 1,605 1,541 1,550 1,586 1,575 Net charge-offs (recoveries) - quarterly (33) 10 35 9 (85) Allowance to loans 1.54% 1.74% 1.89% 2.06% 2.12% Allowance to nonperforming loans N/A 24.1 X 5.4 X 4.6 X 6.0 X Nonperforming loans to total loans 0.00% 0.07% 0.35% 0.45% 0.35% Net charge-offs to loans - annualized -0.14% 0.05% 0.18% 0.05% -0.48% DATASOURCE: Idaho Banking Company CONTACT: Michael K. Johnston, President & CEO, +1-208-472-4702, Mary E. Brimson, SVP Shareholder Relations, +1-208-472-4705, or Don D. Madsen, EVP and CFO, +1-208-947-1880, all of Idaho Banking Company

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