Idaho Independent Bank Announces 2010 First Quarter Results

COEUR D'ALENE, Idaho, May 13, 2010 (GLOBE NEWSWIRE) -- Jack W. Gustavel, Chairman and Chief Executive Officer of Idaho Independent Bank ("IIB" or the "Bank") (OTCBB:IIBK), announced IIB's consolidated unaudited financial results for the quarter ended March 31, 2010.

Mr. Gustavel reported that IIB's net income for the quarter ended March 31, 2010, was $101,000, or $0.02 per diluted share, compared to a net loss of $3.0 million, or a loss of $0.48 per diluted share, for the same period a year ago.    

Chairman Gustavel stated, "After a very difficult 2009, we are pleased to report positive net earnings for the first quarter of 2010. In addition, we are continuing to execute on our strategy to reduce concentrations in land and land development loans and are making progress in addressing problem loans. Despite the challenging economy, IIB's capital ratios remain well above the 10% threshold required to be considered "Well-Capitalized," with our Total Risk-Based Capital Ratio improving to 16.14% at March 31, 2010, compared to 13.82% at March 31, 2009." 

IIB's total assets as of March 31, 2010, decreased $70.8 million, or 12.7%, to $485.0 million from $555.8 million at March 31, 2009. Total loans, including loans held-for-sale, at March 31, 2010, decreased $99.7 million, or 21.7%, to $359.3 million from $459.0 million at March 31, 2009. Total deposits and customer repurchase agreements decreased $29.6 million, or 6.8%, to $406.9 million at March 31, 2010, compared to $436.5 million at March 31, 2009. 

As of March 31, 2010, IIB's allowance for loan losses account totaled $14.3 million, or 4.01% of total loans, excluding loans held-for-sale, compared to $18.8 million, or 4.12% of total loans, excluding loans held-for-sale, as of March 31, 2009. Non-performing assets totaled $43.5 million, or 8.97% of total assets at March 31, 2010, compared to $30.4 million, or 5.47% of total assets at March 31, 2009. Non-performing assets at March 31, 2010, included $40.8 million in non-performing loans and $2.7 million in other real estate owned.

About IIB

IIB was established in 1993 as an Idaho state-chartered, commercial bank and currently operates branches in Boise (3), Meridian, Coeur d'Alene, Nampa, Mountain Home, Hayden, Caldwell, Star, Eagle, and Sun Valley/Ketchum, Idaho.  IIB has approximately 200 employees throughout the State of Idaho.  To learn more about IIB, visit us online at http://www.theidahobank.com/">www.theidahobank.com.

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Statements contained herein concerning future performance, developments or events, expectations for earnings, growth and market forecasts, and any other statements that are not historical facts are forward-looking statements that are intended to be covered by the safe harbor for "forward-looking statements" provided by the Private Securities Litigation Reform Act of 1995, and as such, are subject to a number of risks and uncertainties that might cause actual results to differ materially from expectations or our stated objectives. Factors that could cause actual results to differ materially, include, but are not limited to: continued declines or worsening in regional and general economic conditions; changes in interest rates, deposit flows, demand for loans, real estate values, competition, or loan delinquency rates; changes in accounting principles, practices, policies, or guidelines; changes in legislation or regulations; changes in the regulatory environment; changes in monetary policy of the Federal Reserve Bank; changes in fiscal policy of the Federal government and the State of Idaho; changes in other economic, competitive, governmental, regulatory and technological factors affecting operations, pricing, products, and services; material unforeseen changes in the liquidity, results of operations, or financial condition of the Bank's customers. These risks and other factors are described in greater detail  in the Bank's filings with the Federal Deposit Insurance Corporation, including, without limitation, the Item 1A Risk Factors section of the Bank's Annual Report on Form 10-K for the year ended December 31, 2009. Accordingly, these factors should be considered in evaluating forward-looking statements, and undue reliance should not be placed on such statements. The Bank undertakes no responsibility to update or revise any forward-looking statements.