Market Overview

Idaho Independent Bank Announces 2012 Third Quarter and Year-to-Date Results


COEUR D'ALENE, Idaho, Oct. 29, 2012 (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 third quarter and nine months ended September 30, 2012.

Mr. Gustavel reported that IIB's net loss for the quarter ended September 30, 2012, was $5.0 million, or $0.61 per diluted share, compared to a net loss of $608,000, or $0.10 per diluted share, for the same period a year ago. The Bank's net loss for the nine months ended September 30, 2012, was $5.9 million, or $0.72 per diluted share, compared to a net loss of $2.7 million, or $0.42 per diluted share, for the same nine-month period a year ago.

"The loss for the quarter was primarily due to writing down certain other real estate owned ("OREO") and adding to IIB's Reserve for Loan and Lease Loss Account ("ALLL"). This is part of our strategy to improve asset quality and help return the Bank to profitability as quickly as possible," Mr. Gustavel said.

IIB's total assets as of September 30, 2012, decreased $800,000, or less than 1.0%, to $453.0 million from $453.8 million at September 30, 2011. Also, as of quarter end, total loans decreased $12.0 million, or 4.8%, when compared to the third quarter of 2011. Deposits and repurchase agreements increased $1.4 million, or less than 1.0%, to $384.4 million from $383.0 million at September 30, 2011. Nonperforming assets decreased by $3.8 million at September 30, 2012, or 12.1%, when compared to the year earlier. IIB's ALLL totaled $6.9 million, or 2.93% of total loans, excluding loans held for sale, at September 30, 2012.

The Bank's capital ratios remain above the thresholds required to be considered "Well-Capitalized" under regulatory guidelines. The Bank's Total Risk-Based Capital Ratio was 15.94% at September 30, 2012, compared to 17.14% at September 30, 2011.

The Bank will file its Consolidated Report of Condition and Income for the quarter ended September 30, 2012, (the "Call Report") with the Federal Deposit Insurance Corporation ("FDIC") on October 30, 2012. The Call Report will subsequently be posted by the FDIC on its website at

About IIB

IIB was established in 1993 as an Idaho state-chartered, commercial bank and currently operates three branches in Boise, as well as branches in Meridian, Coeur d'Alene, Nampa, Mountain Home, Hayden, Caldwell, Star, Eagle, and Sun Valley/Ketchum, Idaho. IIB has approximately 185 full-time equivalent employees throughout the State of Idaho. To learn more about IIB, visit us online at

The Idaho Independent Bank company logo is available at

Statements contained herein concerning future performance, developments or events, expectations for earnings, growth and market forecasts, and similar statements that are not historical facts are intended to be "forward-looking statements" as that term is defined in 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, 2011. 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.

Idaho Independent Bank        
Financial Highlights (unaudited)        
(dollars in thousands, except share data)        
  Three Months Ended Nine Months Ended
  2012 2011 2012 2011
Net interest income  $ 3,431  $ 3,480  $ 10,097  $ 11,116
Provision for loan losses  3,200  300  4,058  1,900
Net interest income after provision for loan losses  231  3,180  6,039  9,216
Noninterest income  1,416  583  3,470  2,697
Noninterest expense  6,623  4,371  15,360  14,612
Net loss before taxes  (4,976)  (608)  (5,851)  (2,699)
Income tax expense  --  --  --  --
Net loss  $ (4,976)  $ (608)  $ (5,851)  $ (2,699)
Loss per share:        
Basic  $ (0.61)  $ (0.10)  $ (0.72)  $ (0.42)
Diluted  $ (0.61)  $ (0.10)  $ (0.72)  $ (0.42)
SELECTED BALANCE SHEET ACCOUNTS September 30, September 30,    
  2012 2011    
Loans held for sale  $ 5,692  $ 4,542    
Loans receivable  235,112  248,246    
Gross loans  240,804  252,788    
Allowance for loan losses  6,893  8,650    
Total assets  452,976  453,755    
Deposits  370,592  371,145    
Customer repurchase agreements  13,841  11,882    
Total deposits and repurchase agreements  384,433  383,027    
Stockholders' equity  51,002  54,191    
Common shares outstanding  8,181,109  6,357,112    
Book value per share  $ 6.23  $ 8.52    
Tier 1 capital (to average assets) 11.21% 11.97%    
Tier 1 capital (to risk-weighted assets) 14.67% 15.87%    
Total risk-based capital (to risk-weighted assets) 15.94% 17.14%    
  Three Months Ended Nine Months Ended
PERFORMANCE RATIOS (annualized) September 30, September 30,
  2012 2011 2012 2011
Return on average assets -4.36% -0.54% -1.74% -0.81%
Return on average equity -35.45% -4.42% -13.85% -6.48%
Efficiency ratio 136.64% 107.58% 113.22% 105.78%
Net interest margin 3.40% 3.52% 3.40% 3.80%
CONTACT: Jack W. Gustavel IDAHO INDEPENDENT BANK 1260 W. Riverstone Drive Coeur d'Alene, Idaho 83814 (208) 292-1902

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