Intermountain Community Bancorp Announces Community Partnership Plan: Powered By Community

"When the economy is on a negative trend, it's tempting to step back, restrict investment, wait and see," says Curt Hecker, Intermountain Community Bancorp CEO. "We're not going to do that."

"IMCB is in the business of investing in people and communities. We are committed to a proactive approach that helps build the economy from the ground up. "

"IMCB is well-capitalized, liquid and has money to lend. We want to use our safe, secure base to help our communities directly, right now."

Mr. Hecker says that the bank plans to make significant funds available for new and renewed small business, consumer, mortgage, agriculture, commercial real estate and municipal loans; and to establish seed funding for community-building.

"It's the right thing to do as a community bank."

Mr. Hecker also hopes to engage community leaders and attract matching funds to make a serious impact. "We will identify projects in education and training, job creation, low-income housing, and healthcare that could help propel communities into new prosperity."

Bank executives will work with community leaders to identify the greatest needs and best opportunities for economic stimulus. Mr. Hecker says that IMCB is committed to a grassroots stimulus plan that he hopes will attract over 1,000 new community volunteer leaders, improve over 100 community education and economic initiatives and engage 100% of IMCB employees.

Discussion will begin at Town Hall meetings to be held in each of the Bank's markets, beginning in late February.

"Investing in people is how IMCB has always operated. It's our culture, and it's our mission," says Mr. Hecker. "At this pivotal time in history, taking community-centered risks may be one of the smartest things we can do. We urge our colleagues in finance and business to join us."

About Intermountain Community Bancorp: Intermountain is headquartered in Sandpoint, Idaho, and operates as four separate divisions with twenty banking locations in three states. Its banking subsidiary, Panhandle State Bank, offers financial services through northern Idaho offices in Sandpoint, Ponderay, Bonners Ferry, Priest River, Coeur d'Alene, Post Falls, Rathdrum and Kellogg. 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 branches in downtown Spokane and Spokane Valley, Washington. Magic Valley Bank, a division of Panhandle State Bank, operates branches in Twin Falls and Gooding, Idaho.

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, ticker symbol IMCB.OB.

Additional information on Intermountain Community Bancorp, and its Internet banking services, can be found at www.intermountainbank.com.

This news release contains forward-looking statements within the Private Securities Litigation Reform Act of 1995. Such forward-looking statements 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, 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 continued adverse economic developments that may, among other things, increase default and delinquency 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.

SOURCE: Intermountain Community Bancorp

Intermountain Community Bancorp President of Community Development Rick Youngblood, 208-412-5107 ricky@intermountainbank.com or Intermountain Community Bancorp CEO Curt Hecker, 208-263-0505 curth@intermountainbank.com