Intermountain Community Bancorp (IMCB) Announces Continued Second Quarter Expansion and Earnings; Net Income Increases 43.4% Over First Six Months of Prior Year.SANDPOINT, Idaho Sandpoint is a city in and the county seat of Bonner County, Idaho, United States.GR6 Its population was 6,835 at the 2000 census. Sandpoint's major industry is tourism and recreation, thanks to its proximity to scenic Lake Pend Oreille and -- Intermountain in·ter·moun·tain adj. Located between mountains or mountain systems, especially lying between the Rocky Mountains and the Sierra Nevada or Cascade Range in the western United States. Community Bancorp (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :IMCB IMCB Institute of Molecular and Cell Biology IMCB Istituto per i Materiali Compositi e Biomedici (Italy) IMCB Islamabad Model College for Boys (Pakistan) IMCB Information Management Control Board ), the largest locally owned state bank in Idaho, announced today that continued performance continued to be strong for the quarter ending June 30, 2006. Net income was $1.8 million, up 16.8% over the $1.6 million reported for the quarter ended June 30, 2005. For the six months ended June 30, 2006, net income was $4.4 million, up 43.4% over the $3.1 million reported for the six months ended June 30, 2005. Assets grew to a record $784.9 million, an increase of 15.8% from June 30, 2005. Loan balances increased by 23.0% and deposit balances increased by 18.7% from the prior year period. Earnings per fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share for the six months ended June 30, 2006 increased by 26.7% from the prior year period to $0.57 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. . "Our momentum continues to build in the company and the communities where we operate," noted Chief Executive Officer Curt Hecker. "We posted strong earnings in the second quarter and strengthened our position in our new Silver Valley and Fruitland markets in Idaho. We also opened a new branch in downtown Spokane Downtown Spokane is the central business district in Spokane. Downtown Spokane's rough boundaries are I-90 to the south, Division St. to the east, Maple St. to the west, and the Spokane River to the north, although one could argue that downtown has extended north of the river. and saw continued growth in our Trust & Wealth Management division. The company continues to focus on generating long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. shareholder value by investing in our employees, our customers and our communities, with the strong belief that value-building in these areas will produce strong long-term returns for all our stakeholders Stakeholders All parties that have an interest, financial or otherwise, in a firm-stockholders, creditors, bondholders, employees, customers, management, the community, and the government. . We rewarded our dedicated shareholders by distributing a 10% stock dividend in May 2006." Second Quarter 2006 Highlights --Net income for the quarter ended June 30, 2006 increased to $1.8 million, a 16.8% increase compared to second quarter 2005, despite a $983,000 pre-tax loss taken on sale of securities during the quarter. --Net income for the first six months of 2006 increased 43.4% to $4.4 million compared to the same period last year --Net interest income after loan loss provision for the six months ended June 30, 2006 increased to $9.5 million, an increase of 53.4% compared to the same period last year --Total assets increased 15.8% to $784.9 million compared to the same period last year, as loan balances increased 23.0% --Book value per share reached $9.66, an increase of 16.5% compared to the quarter ended June 30, 2005, driven by strong earnings growth and the completion of a $12.0 million common stock offering in December 2005 --Total equity increased 46.7% to $70.6 million compared to the same period in the prior year --Intermountain distributed a 10% stock dividend effective May 15, 2006 --Intermountain opened a new branch in downtown Spokane staffed with market-leading private and business banking talent
Key Financial Results
(dollars in thousands, except per share data):
Balance Sheet June 30, June 30,
2006 2005 $ Change % Change
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Loans Receivable, net $610,690 $496,332 $114,358 23.0%
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Allowance for Loan Loss $ 9,124 8,087 $ 1,037 12.9%
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Total Assets $784,857 $677,549 $107,308 15.8%
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Total Deposits $640,876 $539,935 $100,941 18.7%
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Three Months Six Months
Ended Ended
June 30, June 30,
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Income Statement 2006 2005 2006 2005
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Net Income $1,839 $1,574 $4,401 $3,069
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Annualized Return on Assets 0.96% 0.98% 1.18% 0.98%
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Annualized Return on Equity 10.6% 13.5% 13.1% 13.4%
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Basic Earnings Per Share $0.25 $0.25 $0.61 $0.49
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Diluted Earnings Per Share $0.24 $0.23 $0.57 $0.45
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Financial Summary: Net income for the quarter ended June 30, 2006 totaled $1.8 million, an improvement of 16.8% over the same period in 2005. Net income for the six months ended June 30, 2006 totaled $4.4 million, an increase of 43.4% over the same period in 2005. The increases primarily reflect steady balance sheet growth, an improving net interest margin and strong gains in other income, excluding the loss on sale of securities. Net income for the quarter ended June 30, 2006 was reduced by a pre-tax loss on the sale of investment securities of $983,000 as the company restructured its investment portfolio. The company undertook the restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). to improve both its expected future investment yield and reduce long-term portfolio risk, and expects to recoup recoup To sell an asset at a price sufficient to recover the original outlay or to offset a previous loss. the pre-tax loss within 9 months from higher portfolio earnings. Impacted by the securities losses and costs associated with the start-up of several new offices, return on average assets and return on average equity for the three months ended June 30, 2006 decreased to 0.96% and 10.6%, compared to 0.98% and 13.5% for the same period one year ago. Return on average assets for the six months ended June 30, 2006 improved to 1.18% from 0.98% in 2005, while return on average equity declined slightly to 13.1% compared to 13.4%, for the first six months of 2005. The company continued to benefit from both strong organic growth and the increasing interest rate environment to improve earnings performance. Net interest income after provision for loan losses rose to $9.5 million for the quarter ended June 30, 2006, an improvement of $3.3 million, or 53.4% over the same period last year. Net interest income after provision for loan losses rose to $18.9 million for the six months ended June 30, 2006, an increase of 53.5% over the same period one year ago. The company continued to experience consistent growth in earning assets Earning Assets Any income-earning asset owned by a company. Notes: These assets are generally interest-bearing accounts, bonds, and securities available for sale. See also: Asset, Asset Valuation, Earnings, Net Interest Margin while improving its already strong net interest margin. IMCB's net interest margin increased 125 basis points to 5.91% for the quarter ended June 30, 2006 compared to 4.66% for the quarter ended June 30, 2005. IMCB's net interest margin increased 127 basis points to 5.90% for the six months ended June 30, 2006 compared to 4.63% for the six months ended June 30, 2005. The margin improvement resulted from rates on earning assets repricing Repricing To change the price of an asset. In derivatives, it sometimes refers to the exchange of options of with different strike prices. repricing upwards faster than deposit rates in a rising interest rate environment, with the company's large variable-rate loan Variable-rate loan Loan made at an interest rate that fluctuates depending on a base interest rate, such as the prime rate or LIBOR. portfolio responding positively to increases in the prime lending rate The lowest rate of interest that a financial institution, such as a bank, charges its best customers, usually large corporations, for short-term unsecured loans. The prime lending rate is an economic indicator and is often used as a measuring point for adjusting interest . The company's net interest margin performance ranks near the top of its peer group nationwide. The provision for losses on loans decreased to $763,000 for the quarter ended June 30, 2006 compared to a provision of $994,000 for the quarter ended June 30, 2005. The provision for losses on loans decreased to $666,000 for the six months ended June 30, 2006 compared to a provision of $1.3 million for the six months ended June 30, 2005. These decreases are due primarily to a refinement in the loan loss reserve calculation and relatively stable credit quality in the loan portfolio. The loan loss allowance to total loans ratio was 1.47% at June 30, 2006, compared to 1.60% at June 30, 2005. Management believes that at June 30, 2006, the current level of the loan loss allowance is adequate for the balance and the mix of the loan portfolio. The investment portfolio restructure significantly impacted other income for the quarter. The restructure resulted in a loss on sale of investments of $983,000, compared to a loss on sale of investments of $2,000 for the quarter ended June 30, 2005. The company sold approximately $26.4 million of lower yielding securities and replaced them with higher yielding securities. It is anticipated that the company will recoup the loss within the next nine months through the higher yielding new securities. As a result of this action, other income for the quarter decreased 4.3% or $105,000 over the quarter ended June 30, 2005. During this period, fees and services charges improved 31.2% or $669,000 compared to the prior year's second quarter. For the six months ended June 30, 2006 other income increased 6.5% or $294,000, compared to the same period one year ago, including a $998,000, or 25.8% increase in fees and service charges. The increase in other income, notwithstanding the loss on the sale of securities, was driven largely by account growth, increased contract income from the bank's secured deposit program and pricing improvements. Non-interest expense for the quarter ended June 30, 2006 increased 43.4%, or $2.7 million compared to the quarter ended June 30, 2005. Non-interest expense for the six months ended June 30, 2006 increased 38.2% or $4.6 million compared to the six months ended June 30, 2005. The development of new markets and new services, coupled with increases in staffing and fixed assets fixed assets npl → activo sg fijo fixed assets npl → immobilisations fpl fixed assets fix npl → to support organic bank growth, were the primary contributors to the growth in non-interest expense. Earnings per share for the quarter ended June 30, 2006 totaled $0.25, and on a fully diluted basis, $0.24 per share. This compares to earnings per share of $0.25 and fully diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of of $0.23 for the same period last year. Earnings per share for the six months ended June 30, 2006 totaled $0.61, and on a fully diluted basis, $0.57 per share, compared to $0.49 and fully diluted earnings per share of $0.45 for the same period last year. All prior period earnings per share amounts have been adjusted for the 10% stock dividend effective May 15, 2006. As of June 30, 2006, assets totaled $784.9 million, an increase of $107.3 million, or 15.8% over June 30, 2005 and an increase of $40.3 million, or 5.4% over March 31, 2006. The improved asset growth in the second quarter of 2006 reflects a stronger lending market and seasonal increases in volumes in commercial and residential real estate loan production. Total deposits grew 18.7%, or $100.9 million over June 30, 2005 to a total of $640.9 million, and loans receivable increased $114.4 million or 23.0% over June 30, 2005. Total deposits grew 5.1%, or $30.9 million over March 31, 2006, and loans receivable increased $46.7 million or 8.3% over March 31, 2006. Loans receivable totaled $610.7 million at June 30, 2006. Strong organic growth in the company's existing markets and contributions from the newly developing markets accounted for the growth in both loans and deposits in the quarter ended June 30, 2006 compared to the same period last year. The company continues to benefit from strong asset quality. Total non-performing loans A non-performing loan is a loan that is in default or close to being in default. Many loans become non-performing after being in default for 3 months, but this can depend on the contract terms. were $1.2 million or 0.20% of net loans as of June 30, 2006, compared to $1.3 million or 0.27% of net loans at June 30, 2005 and $1.2 million or 0.21% of net loans at March 31, 2006. Total non-performing loans remained relatively constant while the loan portfolio increased at June 30, 2006 compared to the prior year, which reflects strong underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. and a strong economy. Net charge-offs to average net loans were 0.02% for the quarter ended June 30, 2006 compared to 0.03% for the quarter ended June 30, 2005. Total equity increased to $70.6 million, a 46.7% increase over June 30, 2005. The increase in equity resulted from the completion of a $12.0 million common stock offering in December 2005 and the retention of the bank's net income. Book value per share at June 30, 2006 totaled $9.66 versus $8.29 at June 30, 2005, a 16.5% increase. "In this, our 25th year of operation, we continue to build upon our commitment and dedication to serving our communities by executing our vision of establishing a personal relationship that every customer values for life. This involves recruiting, retaining and motivating the very best people and supporting them with technology that leads the community banking market," noted Hecker. "Our staff, technology and training improvements will allow us to serve our customers and communities more effectively over time than our competitors, thereby creating significant long-term shareholder value." Company Activities: The company was actively engaged in developing new growth opportunities during the second quarter. It began in April with the opening of a new full-service branch in Fruitland, Idaho Fruitland is a city located in Payette County, Idaho, United States. It lies along U.S. Route 95 in the Treasure Valley of southwest Idaho, about 50 miles west of Boise and near the border with Oregon. on April 16, 2006. The experienced team leading this new branch will complement our existing teams in Weiser and Payette, Idaho Payette is a small city in southwestern Idaho, United States. The population was 7,054 at the 2000 census. The city is the county seat of Payette CountyGR6. Originally named Boomerang signifying a roundhouse on the railroad, the Oregon Shortline. , as well as our branch located in Ontario, Oregon Ontario is the largest city in Malheur County, Oregon, United States. It lies along the Snake River at the Idaho border. As of the 2000 census, the city population was 10,985. The 2006 estimate is 11,245 residents. . Also, in April 2006, the company opened an office in downtown Spokane, Washington. This office features seasoned and knowledgeable private bankers with strong market connections in Spokane and north Idaho. This team complements our Spokane Valley team of business, real estate and consumer bankers and provides additional reach into the Spokane metro market. The company's Trust & Wealth Management division initiated service to IMCB market areas with full estate planning Estate Planning The overall planning of a person's wealth, including the preparation of a will and the planning of taxes after the individual's death. Notes: Contrary to popular belief, estate planning involves much more than preparing a will, and it is not only for the and investment management services. This adds a valuable new offering to our existing array of financial and technology solutions for our customers. Ground breaking for the company's 94,000 square foot Financial and Technical Center in Sandpoint, Idaho was held on July 19, 2006. IMCB will occupy approximately one-half of the building as it relocates its Sandpoint branch and consolidates administrative offices. The building is anticipated to be an economic and learning center for the community, with local professional firms occupying part of the space, and the rest devoted to meeting rooms, state-of-the-art learning facilities, a cafe and a greenspace atrium atrium (ā`trēəm), term for an interior court in Roman domestic architecture and also for a type of entrance court in early Christian churches. The Roman atrium was an unroofed or partially roofed area with rooms opening from it. . Construction continues on the new branch in Twin Falls, Idaho
Planning continues for the construction of our new branch in Spokane Valley, Washington The City of Spokane Valley, Washington, is a newly incorporated city in Spokane County, Washington. It is located east of Spokane and west of Liberty Lake. It surrounds the town of Millwood on three sides. . This full service banking facility will house our branch, home loan and administrative staff. It is anticipated that this building will be completed in the spring of 2007. About Intermountain Community Bancorp Intermountain is headquartered in Sandpoint, Idaho, and operates as four divisions with eighteen banking locations in three states. Its banking subsidiary, Panhandle State 1. West Virginia; - a nickname. Bank, offers financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. through offices in Sandpoint, Ponderay, Bonners Ferry, Priest River, Coeur d'Alene Coeur d'Alene, city, United States Coeur d'Alene (kûrdəlān`), city (1990 pop. 24,563), seat of Kootenai co., N Idaho, near the Wash. line; inc. 1907. , Post Falls, Rathdrum and Kellogg in northern Idaho. Intermountain Community Bank, a division of Panhandle State Bank, operates branches in southwest Idaho in Weiser, Payette, Nampa, Caldwell and Fruitland as well as in Ontario, Oregon. Intermountain Community Bank Washington, a division of Panhandle State Bank, operates two offices in Spokane, Washington Spokane (pronounced [spoʊ̯ˈkæn]) is a city located in Eastern Washington. The seat of Spokane County, Spokane is the metropolitan center of the Inland Northwest, the second largest city in Washington state, and . Magic Valley Bank, a division of Panhandle State Bank, operates branches in Twin Falls and Gooding, Idaho Gooding is the county seat and largest city of Gooding County, Idaho, United States.GR6 Its population was 3,384 at the 2000 census. The city is named for Frank R. . All data contained in this report have been prepared on a consolidated basis for Intermountain Community Bancorp. IMCB's shares are listed on the OTC Bulletin Board OTC Bulletin Board An electronic quotation listing of the bid and asked prices of OTC stocks that do not meet the requirements to be listed on the NASDAQ stock-listing system. ticker symbol Ticker Symbol An arrangement of characters (usually letters) representing a particular security listed on an exchange or otherwise traded publicly. When a company issues securities to the public marketplace, it selects an available ticker symbol for its securities which investors IMCB.OB. Additional information on Intermountain Community Bancorp, and its Internet banking, can be found at www.intermountainbank.com. This news release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Such forward-looking statement may include but are not limited to statements about the Company's plans, objectives, expectations and intentions and other statements contained in this report that are not historical facts. These forward-looking statements are inherently subject to significant business, economic and competitive uncertainties and contingencies Contingencies (ISSN 1048-9851) is the bimonthly magazine of the American Academy of Actuaries, providing a large and diverse readership with general interest and technical articles on a wide range of issues related to the actuarial profession. , many of which are beyond the Company's control. Actual results may differ materially from the results discussed in these forward-looking statements because of numerous possible risks and uncertainties. These include but are not limited to: the possibility of adverse economic developments that may, among other things, increase default and delinquency delinquency Criminal behaviour carried out by a juvenile. Young males make up the bulk of the delinquent population (about 80% in the U.S.) in all countries in which the behaviour is reported. risks in the Company's loan portfolio; shifts in interest rates that may result in lower interest rate margins; shifts in the demand for the Company's loan and other products; lower-than-expected revenue or cost savings in connection with acquisitions; changes in accounting policies; changes in the monetary and fiscal policies of the federal government; and changes in laws, regulations and the competitive environment. |
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