Intermountain Community Bancorp Reports Q3 2009 Results with Improving Asset Quality, Solid Liquidity and 13.1% Total Risk Based
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IMCB | Quote | Chart | News | PowerRating -- Intermountain Community Bancorp (OTCBB:IMCB), the holding company
for Panhandle State Bank, reported third quarter 2009 financial results
with strong deposit growth, lower loan delinquencies, improving asset
quality, solid liquidity and capital ratios. As credit quality metrics
improved, provisioning for loan losses moderated in the third quarter
generating a net loss applicable to common stockholders of $2.7 million,
or $0.32 per share, down substantially from the net loss applicable to
common stockholders of $11.4 million, or $1.37 per share, in the
preceding quarter. In the third quarter of 2008, net income totaled
$226,000, or $0.03 per share.
For the first nine months of 2009, the net loss applicable to
stockholders was $14.6 million, or $1.75 per share, and included a $25.2
million provision for loan losses and $1.2 million preferred dividend
paid to the U.S. Treasury, versus net income of $4.1 million, or $0.49
per diluted share, with a loan loss provision of $4.9 million and no
preferred dividend in the same period of 2008.
Third Quarter 2009 Highlights (at or for the period ended Sept.
30, 2009, compared to Sept. 30, 2008 or June 30, 2009)
--
Deposits increased 8.9% year-over-year.
--
Capital ratios are substantially above minimum regulatory levels for
well capitalized institutions; Risk Based Capital Ratio is 13.1% and
Tier 1 Leverage Ratio is 9.4%.
--
Liquidity continues at historically high levels represented by cash
and cash equivalents, marketable securities, local deposit growth and
borrowing line availability.
--
Reserves for potential loan losses increased substantially
year-over-year, with the allowance for loan loss to total loans ratio
at 2.46% compared to 1.67% a year ago.
--
Asset quality improved from the immediate prior quarter with
nonperforming assets (NPAs) to total assets falling to 3.47% from
3.73% and loan delinquencies (30 days past due and over) down to 1.48%
from 2.10%.
--
Book value per common share was $8.63 and tangible book value per
common share was $7.18.
--
Headquarters building sale leaseback was completed, enhancing cash
management and liquidity.
--
Our Powered by Community initiative is gaining momentum
throughout the Idaho, Eastern Oregon and Eastern Washington market
areas. Recent efforts include organizing and hosting small business
improvement seminars, funding affordable housing organizations and
initiatives, and working with non-profit boards and staff to improve
fundraising efforts.
"We are starting to see credit metrics improve this quarter, with total
classified loans leveling off, loan delinquencies falling, and
nonperforming asset levels moderating from the preceding quarter, as the
pace of new non-performing loans slowed more than those that were
resolved or charged down," said Curt Hecker, Chief Executive Officer.
"We are also encouraged by the increasing activity in the greater Boise
market, where residential homes are selling and investor activity is
increasing. Boise and the surrounding communities in Southwest Idaho is
one of the areas hardest hit by the recession, and the residential
construction industry there has been one of the sources of our credit
quality issues. Fortunately, we have limited exposure to commercial real
estate in any of our markets, particularly non-owner occupied commercial
real estate. Our concentration ratios for total commercial real estate
and non-owner occupied rank well below our peer group."
"We continue to maintain high levels of liquidity and we have built
solid reserves against loan losses," continued Hecker. "Our proactive
approach to working with struggling customers, and the local stimulus
efforts we are creating through our Powered by Community
initiative are helping to build positive change in our communities."
Asset Quality and Credit Review
While credit quality remains challenged by the weak economy and falling
real estate values, third quarter results showed some improvement over
the preceding quarter. At September 30, 2009, nonperforming loans fell
$5.2 million, and total NPAs fell $4.4 million from the preceding
quarter. At quarter end, NPAs to total assets fell to 3.47% from 3.73%
in the preceding quarter. Loan delinquencies (30 days or more past due)
also declined during the third quarter to 1.48% from 2.10% of total
loans at the end of the second quarter.
Residential land and construction assets continue to comprise most of
the nonperforming loans and OREO totals, reflecting the weakness in the
housing market. "The geographic breakout of the nonperforming loans
below reflects both the strong market presence we have built in Northern
Idaho -- Eastern Washington and the progress we have made in the greater
Boise market through property sales and loan writedowns we have already
booked," said Hecker. The following table summarizes nonperforming
assets by geographic region.
Southwest
North Idaho Idaho,
NPA by location - Eastern Magic Valley Greater Boise excluding
September 30, 2009 Washington Idaho Area Boise Other Total
(Dollars in thousands)
Commercial $ 2,903 $ 350 $ 516 $ 190 $ - $ 3,959 10.8 %
Commercial real estate 2,051 1,149 402 9 32 3,643 9.9 %
Commercial construction, including all land development loans 2,267 2,355 4,163 1,675 2,875 13,335 36.3 %
Multifamily - 188 - - - 188 0.5 %
Residential real estate 2,278 149 1,668 984 103 5,182 14.1 %
Residential construction 9,401 - 914 - - 10,315 28.1 %
Consumer 52 28 21 1 - 102 0.3 %
Total $ 18,952 $ 4,219 $ 7,684 $ 2,859 $ 3,010 $ 36,724 100.0 %
Percent of total NPA 51.6 % 11.5 % 20.9 % 7.8 % 8.2 % 100.0 %
"Our loan portfolio is spread throughout our market areas," noted
Hecker, "with about 50% of the portfolio in north Idaho and eastern
Washington based on branch totals, 18% in southwest Idaho and eastern
Oregon, 14% in the greater Boise area, and 8% in the Magic Valley area
of southern Idaho. Generally, North Idaho, Spokane and the Magic Valley
economies and real estate markets have held up much better than the
Boise areas through this downturn. Much of our portfolio in southwestern
Idaho is resident in the 'Tri-County' area along the border of Idaho and
Oregon, which are largely agribusiness communities, and are doing
relatively well. We have been focused on resolving problem credits
throughout our market areas, but particularly in the Boise area."
Balance Sheet and Loan Portfolio
Summary:
As of September 30, 2009, assets totaled $1.06 billion, a decrease of
4.1% in the quarter and a 0.9% increase from a year ago. Liquidation of
problem loans, conservative balance sheet management and credit
underwriting, together with lower borrowing demand from credit-worthy
borrowers, combined to create a moderate decrease in loan balances
during the third quarter. "As part of our Powered by Community
initiative, we are continuing to meet the financing needs of our
customers, although the economic environment has dampened loan demand in
most of our markets," Hecker said.
INTERMOUNTAIN COMMUNITY BANCORP
LOANS BY CATEGORIES
(Dollars in thousands) September 30, 2009 June 30, 2009 September 30, 2008
Commercial $ 222,381 31.1 % $ 227,857 31.0 % $ 231,364 29.7 %
Commercial real estate 176,347 24.6 164,272 22.4 143,239 18.4
Commercial construction, includes all land development loans 74,032 10.3 76,794 10.5 85,285 10.9
Multifamily 17,938 2.5 18,093 2.5 18,729 2.4
Residential real estate 94,659 13.2 95,617 13.0 107,175 13.7
Residential construction 105,960 14.8 124,076 16.9 164,846 21.1
Consumer 19,424 2.7 22,290 3.0 24,123 3.1
Municipal 5,835 0.8 5,588 0.7 5,182 0.7
Total loans receivable 716,576 100.0 % 734,587 100.0 % 779,943 100.0 %
Net deferred origination fees 84 24 (285 )
Allowance for losses on loans (17,613 ) (24,300 ) (13,033 )
Loans receivable, net $ 699,047 $ 710,311 $ 766,625
"Small Business Administration loans continue to be popular with
business owners in our markets, and we are continuing to see mortgage
refinancing, reflecting historically low mortgage rates.
"Year-over-year, our land development and commercial construction loans
fell almost $11.3 million to 10.3% of the portfolio and residential
construction balances are down $59 million to 14.8% of the overall
portfolio," Hecker noted.
"Commercial real estate loans grew to 24.6% of the portfolio, up $33
million from the same period last year. Virtually all of this increase
is comprised of owner-occupied loans made to established, profitable
businesses. Agricultural lending, which comprises about half of our
commercial loans, continues to contribute to overall loan quality, in
part because we focus on making operating loans that renew annually. In
addition, we have limited exposure to agricultural real estate or
equipment loans and virtually no exposure to the highly volatile dairy
industry."
Total deposits increased $11.1 million, or 1.3%, over June 30, 2009, and
$68.3 million, or 8.9%, from September 30, 2008 to a total of $838.7
million. Retail core deposits now total $657.6 million, compared to
$655.3 million at June 30, 2009 and $629.2 million a year ago,
representing increases of 0.1% and 4.5%, respectively. Deposits gathered
within the bank's branch footprint increased to $762.5 million at the
end of the quarter, compared to $717.6 million a year ago. At June 30,
2009 locally gathered deposits totaled $765.4 million.
INTERMOUNTAIN COMMUNITY BANCORP
DEPOSITS
(Dollars in thousands) September 30, 2009 June 30, 2009 September 30, 2008
Non-interest bearing demand accounts $ 153,271 18.3 % $ 155,446 18.8 % $ 147,816 19.2 %
NOW & Money market accounts 340,722 40.6 335,606 40.6 323,484 42.0
Savings & IRA accounts 80,182 9.6 80,782 9.8 80,290 10.4
Certificates of deposit (CDs) 89,457 10.7 91,837 11.1 83,112 10.8
Jumbo CDs 83,774 10.0 82,278 9.9 82,157 10.8
Brokered CDs 76,136 9.0 62,152 7.5 52,808 6.9
CDARS CDs to local customers 15,123 1.8 19,445 2.3 700 0.1
Total Deposits $ 838,665 100.0 % $ 827,546 100.0 % $ 770,367 100.0 %
"We continue to focus on gathering low-cost retail deposits to build
both our customer base and long-term franchise value," said Doug Wright,
Chief Financial Officer. "Interest bearing checking accounts and retail
CD growth, including CDs sold to local depositors under the Certificate
of Deposit Account Registry Service (CDARS) program generated much of
our deposit growth over the past year. Despite lower interest rates and
a competitive deposit environment, we continue to attract local
deposits. In that vein, we are extremely proud of our banking team for
their effective sales and marketing efforts. In the third quarter, we
also purchased $20.3 million in long-term callable brokered certificates
of deposit at very favorable rates, anticipating the runoff of a similar
amount at much higher rates in the fourth quarter of this year." Core
deposits are made up of non-interest bearing checking, money market
checking, savings accounts, and certificate of deposit accounts of less
than $100,000.
Available-for-sale investments totaled $180.8 million at September 30,
2009, a decrease of 1.8%, over June 30, 2009, and an increase of $48.8
million, or 37.0%, over September 30, 2008. "The short term reduction in
our securities portfolio reflects the normal pay downs and prepayments
on mortgage-backed securities as low interest rates increased
refinancing activity," Wright noted. "The significant increase from a
year ago reflects our decision to boost liquidity and maintain a more
conservative balance sheet by purchasing higher levels of liquid
marketable securities. Although we have booked impairment charges on one
of our private mortgage-backed securities over the past year, we are
beginning to see signs of recovery in the secondary market for these
types of securities, which is reflected in the valuations that make up
the other comprehensive income line on our balance sheet."
Office properties and equipment totaled $42.8 million at September 30,
2009, a decrease of $111,000, or 0.3%, over June 30, 2009, and a
decrease of $2.1 million, or 4.7%, over September 30, 2008. The
decreases over prior periods primarily reflect depreciation, combined
with a reduction in new equipment, software, hardware and building
purchases. "As part of our long-term fixed asset strategy, we sold the
Sandpoint Center where we are headquartered for $24.8 million during the
third quarter," commented Wright. "The transaction was completed with
our operating subsidiary Panhandle State Bank and was booked as a
sale-leaseback arrangement. Because of the financing terms offered by
PSB, the lease is treated as an operating lease utilizing the financing
method for accounting purposes. Consequently, there was no gain
recognized at the time of the transaction and the building will remain
on our consolidated financial statements with depreciation and interest
expense recognized over the life of the lease."
Federal Home Loan Bank advances declined to $24.0 million at September
30, 2009, from $36.0 million at the end of June and $54.0 million a year
ago, as advances with relatively high interest rates rolled off. Because
Intermountain paid off $23.1 million of loans related to its
headquarters building, other borrowings declined to $16.5 million from
$39.5 million at June 30, 2009. Paying off these loans reduces
Intermountain's exposure to adverse market conditions and improves its
future funding and capital flexibility.
Stockholders' equity totaled $97.6 million at September 30, 2009, a
decrease from the second quarter of $983,000 and an increase of $8.6
million over September 30, 2008. The decline from the second quarter
reflects the Company's net loss and the payment of preferred stock
dividends to the U.S. Treasury on the funds received through the
Treasury's Capital Purchase Program, offset by an increase in the market
value of the available-for-sale investment portfolio. The increase from
a year ago includes the impact of the December 2008 issuance of $27.0
million of preferred stock to the U.S. Treasury, offset by the Company's
operating loss and a decrease in the market value of the
available-for-sale investment portfolio. Book value per common share at
September 30, 2009 totaled $8.63 compared to $8.76 at June 30, 2009, and
$10.71 at September 30, 2008. Tangible book value per common share
totaled $7.18 versus $7.31 at June 30, 2009 and $9.23 at September 30,
2008. Tangible stockholders equity to tangible assets improved to 8.17%,
from 7.92% at June 30, 2009 and 7.40% at September 30, 2008. Tangible
common equity to tangible assets totaled 5.74%, compared to 5.60% at
June 30, 2009 and 7.40% at September 30, 2008.
Income Statement Summary
Net interest income before provision for loan losses totaled $9.7
million for the quarter ended September 30, 2009, a decrease of
$551,000, or 5.4%, from the second quarter 2009 (sequential quarter) and
a decline of $1.4 million or 13.1% from the third quarter of 2008. The
decline from the sequential quarter reflected the continuing shift to a
more conservative asset mix to provide our depositors with more
liquidity, as well as interest reversals on some relatively large loans
written down in the third quarter. In addition to reflecting these
factors, the impact of declining market interest rates beginning in the
second half of 2008 also contributed to the lower net interest income.
The net interest margin was 3.91%, for the quarter compared to 4.11% for
the sequential quarter and 4.56% for the same quarter last year.
Intermountain's net interest margin performance continues to rank near
the top of its peer group. The major decline in net interest margin is
related to the reversal of interest on loans placed in non-accrual
status or charged down. A 34 basis point drop in the yield on earning
assets during the quarter was partially offset by a 15 basis point drop
in the cost of interest-bearing liabilities. At 1.61%, the Company's
cost on interest bearing liabilities continues to lead its peer group,
and reflects a strong, low-cost funding mix consisting primarily of
local core deposits.
Intermountain added $3.8 million to its allowance for loan loss in the
third quarter, compared to $18.7 million in the sequential quarter and
$2.5 million for the third quarter of 2008. Net charge-offs for the
current quarter totaled $10.4 million compared to $11.8 million in the
sequential quarter and $2.3 million for September 30, 2008. Third
quarter charge-offs primarily reflect write downs in the southwestern
Idaho (Treasure Valley and Magic Valley) residential construction and
development portfolio that were identified and reserved for in the
preceding quarter. "Although our net charge-offs were still at elevated
levels this quarter, the properties contributing to these charges are
not new problems. While we can't be certain about future events, given
our current loan portfolio and expectations, we don't anticipate future
provision levels like we took in the second quarter of 2009," Hecker
said. At the end of the quarter, the allowance for loan loss totaled
2.46% of total loans and 78.88% of nonperforming loans compared to 1.67%
of total loans and 66% of nonperforming loans a year ago. At June 30,
2009 the allowance totaled 3.31% of total loans and 88.37% of
nonperforming loans.
Other income, which included $500,000 pre-tax gains on the sale of
investment securities and a $55,000 increase in fees and service charges
over the preceding quarter, totaled $3.1 million for the third quarter,
compared to $2.7 million for the sequential quarter and $3.0 million for
the third quarter 2008. Loan related fee income decreased by $39,000
from the sequential quarter due to lower yields on mortgage loan sale
volumes.
Non-interest expense for the third quarter of 2009 totaled $13.0
million, an increase of $289,000 over the sequential quarter and an
increase of $1.5 million over third quarter 2008. The increase in
non-interest expense over third quarter 2008 reflects an increase in
FDIC insurance premium expenses of $265,000 and increased expenses and
write downs on the Company's other real estate owned ("OREO") portfolio
of $1.5 million. Other expenses increased $3.1 million for the nine
month period over the same period a year ago. The increases reflect
higher FDIC assessments, and increased credit costs, including legal
fees, collection expenses, and OREO write-downs and expenses.
Employee compensation and benefits expense increased only $20,000 over
the preceding quarter and decreased $773,000 compared to the same
quarter a year ago due to lower employee headcounts and bonus
compensation accruals in comparison to 2008. For the first nine months
of 2009, compensation and benefits expense decreased $1.9 million, or
10.0% below the comparable period in 2008, even with the reversal of
$640,000 in executive compensation expense in second quarter 2008
related to the termination of an executive bonus plan. Efforts to
control compensation expense continue in 2009, including suspending
salary increases for executives and officers, restricting hiring and
reducing other compensation plans.
Occupancy expenses increased $6,000 for the three-month period ended
September 30, 2009 compared to the sequential quarter and decreased
$191,000 from the same period one year ago. The decreases were comprised
of a decrease in computer hardware and software expenses as additional
cost control measures have been implemented. Intermountain expects these
expenses to continue declining in 2009, as it has postponed building
expansion plans, limited new hardware and software purchases, and has
started leasing out excess space in its headquarters building.
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.
Forward Looking Statements
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 following
and the other risks described in the "Risk Factors," "Business," and
"Management's Discussion and Analysis of Financial Condition and Results
of Operations" sections, as applicable, of the Company's Annual Report
on Form 10-K for the fiscal year ended December 31, 2008 and the
Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2009:
the possibility of 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. Readers are
cautioned that forward-looking statements in this release speak only as
of the date of this release. The Company does not undertake any
obligation to update any forward-looking statement, whether as a result
of new information, future events or otherwise.
INTERMOUNTAIN COMMUNITY BANCORP
CONSOLIDATED BALANCE SHEETS
(Unaudited)
September 30, June 30, September 30,
2009 2009 2008
(Dollars in thousands,
except per share amounts)
ASSETS
Cash and cash equivalents $ 50,519 $ 80,605 $ 46,265
Loans receivable, net 699,047 710,311 766,625
Loans held for sale 4,048 4,453 1,500
Investments and asset-backed securities ("ABS") available for sale 180,808 184,168 132,011
Investments and ABS held to maturity 15,189 17,395 16,110
Federal Home Loan Bank of Seattle stock, at cost 2,310 2,310 2,310
Office properties and equipment, net 42,749 42,860 44,843
Goodwill 11,662 11,662 11,662
Other intangible assets, net 472 507 612
Bank-owned life insurance 8,308 8,217 7,952
Other real estate owned 14,395 13,650 2,777
Prepaid expenses and other assets 28,818 27,742 16,578
Total assets $ 1,058,325 $ 1,103,880 $ 1,049,245
LIABILITIES
Deposits $ 838,665 $ 827,546 $ 770,367
Advances from Federal Home Loan Bank 24,000 36,000 54,000
Repurchase agreements 70,493 94,380 87,213
Other borrowings 16,527 39,507 40,623
Accrued expenses and other liabilities 11,038 7,862 8,082
Total liabilities 960,723 1,005,295 960,285
STOCKHOLDERS' EQUITY
Common stock 78,481 78,391 76,349
Preferred stock 25,381 25,303 --
Accumulated other comprehensive loss (1) (4,663 ) (6,170 ) (3,350 )
Retained earnings (deficit) (1,597 ) 1,061 15,961
Total stockholders' equity 97,602 98,585 88,960
Total liabilities and stockholders' equity $ 1,058,325 $ 1,103,880 $ 1,049,245
Book value per common share, excluding preferred stock $ 8.63 $ 8.76 $ 10.71
Tangible Book Value per common share, excluding preferred stock (2) $ 7.18 $ 7.31 $ 9.23
Shares outstanding at end of period 8,365,836 8,365,726 8,305,769
Stockholders' Equity to Total Assets 9.22 % 8.93 % 8.48 %
Tangible Stockholders' Equity to Tangible Assets (3) 8.17 % 7.92 % 7.40 %
Tangible Common Equity to Tangible Assets 5.74 % 5.60 % 7.40 %
(1) Net of deferred income taxes
(2) Amount represents common stockholders' equity less net
goodwill and other intangible assets divided by total shares
outstanding
(3) Amount represents stockholders' equity less net goodwill and
other intangible assets divided by assets less net goodwill and
other intangible assets
INTERMOUNTAIN COMMUNITY BANCORP
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months Ended
September 30, June 30, September 30,
2009 2009 2008
(Dollars in thousands,
except per share amounts)
Interest income:
Loans $ 11,051 $ 11,703 $ 14,098
Investments 2,552 2,780 1,991
Total interest income 13,603 14,483 16,089
Interest expense:
Deposits 3,022 3,245 3,627
Borrowings 920 1,026 1,352
Total interest expense 3,942 4,271 4,979
Net interest income 9,661 10,212 11,110
Provision for losses on loans (3,756 ) (18,684 ) (2,474 )
Net interest income (loss) after provision for losses on loans 5,905 (8,472 ) 8,636
Other income:
Fees and service charges 1,941 1,886 1,973
Loan related fee income 624 663 765
Net gain on sale of securities 500 - -
Other-than-temporary impairment on investments (198 ) - -
Bank-owned life insurance 91 90 83
Other income 149 66 193
Total other income 3,107 2,705 3,014
Operating expenses:
Salaries and employee benefits 5,673 5,653 6,446
Occupancy expense 1,814 1,808 2,005
Other expenses 5,469 5,206 2,971
Total operating expenses 12,956 12,667 11,422
Income (loss) before income taxes (3,944 ) (18,434 ) 228
Income tax (provision) benefit 1,702 7,432 (2 )
Net income (loss) (2,242 ) (11,002 ) 226
Preferred stock dividend 416 415 -
Net income (loss) applicable to common stockholders $ (2,658 ) $ (11,417 ) $ 226
Earnings per share -- basic $ (0.32 ) $ (1.37 ) $ 0.03
Earnings per share -- diluted $ (0.32 ) $ (1.37 ) $ 0.03
Weighted-average common shares outstanding -- basic 8,365,836 8,362,402 8,305,236
Weighted-average common shares outstanding -- diluted 8,365,836 8,362,402 8,461,591
INTERMOUNTAIN COMMUNITY BANCORP
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Nine Months Ended
September 30, September 30,
2009 2008
(Dollars in thousands,
except per share amounts)
Interest income:
Loans $ 34,403 $ 43,058
Investments 8,030 6,073
Total interest income 42,433 49,131
Interest expense:
Deposits 9,609 10,932
Borrowings 3,049 4,588
Total interest expense 12,658 15,520
Net interest income 29,775 33,611
Provision for losses on loans (25,210 ) (4,872 )
Net interest income after provision for losses on loans 4,565 28,739
Other income:
Fees and service charges 5,497 5,812
Loan related fee income 1,828 2,064
Net gain on sale of securities 1,795 2,182
Other than temporary impairment on investments (442 ) -
Bank-owned life insurance 271 238
Other income 376 728
Total other income 9,325 11,024
Operating expenses:
Salaries and employee benefits 17,031 18,922
Occupancy expense 5,590 5,596
Other expenses 13,774 8,798
Total operating expenses 36,395 33,316
Income (loss) before income taxes (22,505 ) 6,447
Income tax (provision) benefit 9,143 (2,298 )
Net income (loss) (13,362 ) 4,149
Preferred stock dividend 1,245 -
Net income (loss) applicable to common stockholders $ (14,607 ) $ 4,149
Earnings per share -- basic $ (1.75 ) $ 0.50
Earnings per share -- diluted $ (1.75 ) $ 0.49
Weighted-average common shares outstanding -- basic 8,358,908 8,287,541
Weighted-average common shares outstanding -- diluted 8,358,908 8,531,037
INTERMOUNTAIN COMMUNITY BANCORP
KEY PERFORMANCE RATIOS
Three Months Ended Nine Months Ended
September 30, June 30, September 30, September 30, September 30,
2009 2009 2008 2009 2008
Net Interest Spread:
Yield on Loan Portfolio 5.98 % 6.25 % 7.02 % 6.17 % 7.35 %
Yield on Investments & Cash 4.09 % 4.57 % 4.66 % 4.38 % 4.92 %
Yield on Interest-Earning Assets 5.50 % 5.84 % 6.61 % 5.72 % 6.93 %
Cost of Deposits 1.45 % 1.59 % 1.88 % 1.58 % 1.97 %
Cost of Advances 4.26 % 4.19 % 3.79 % 4.12 % 3.98 %
Cost of Borrowings 2.05 % 2.13 % 2.38 % 2.06 % 2.92 %
Cost of Interest-Bearing Liabilities 1.61 % 1.76 % 2.06 % 1.74 % 2.22 %
Net Interest Spread 3.90 % 4.08 % 4.54 % 3.98 % 4.71 %
Net Interest Margin 3.91 % 4.11 % 4.56 % 4.02 % 4.74 %
Performance Ratios:
Return on Average Assets -0.82 % -4.02 % 0.09 % -1.64 % 0.53 %
Return on Average Common Stockholders' Equity -14.49 % -58.18 % 1.01 % -24.79 % 6.13 %
Return on Average Common Tangible Equity -17.40 % -68.84 % 1.16 % -29.34 % 7.09 %
Operating Efficiency 101.48 % 98.07 % 80.86 % 93.08 % 74.64 %
Noninterest Expense to Average Assets 4.75 % 4.63 % 4.34 % 4.47 % 4.28 %
INTERMOUNTAIN COMMUNITY BANCORP
LOAN DATA
September 30, June 30, September 30,
2009 2009 2008
(Dollars in thousands)
Net Charge-Offs to Average Net Loans (Annualized) 5.84 % 6.31 % 1.17 %
Loan Loss Allowance to Total Loans 2.46 % 3.31 % 1.67 %
Nonperforming Assets:
Accruing Loans-90 Days Past Due $ 471 $ 2,966 $ 199
Nonaccrual Loans 21,858 24,532 19,682
Total Nonperforming Loans 22,329 27,498 19,881
OREO 14,395 13,650 2,777
Total Nonperforming Assets ("NPA") $ 36,724 $ 41,148 $ 22,658
NPA to Total Assets 3.47 % 3.73 % 2.16 %
NPA to Net Loans Receivable 5.25 % 5.79 % 2.96 %
NPA to Risk Based Capital (Bank) (1) 33.79 % 38.67 % 20.86 %
NPA to Tangible Equity + Allowance for Loan Loss 35.63 % 37.17 % 25.25 %
Loan Delinquency Ratio (30 days and over) 1.48 % 2.10 % 1.09 %
(1) Estimated Risk Based Capital for September 30, 2009
SOURCE: Intermountain Community Bancorp
Intermountain Community Bancorp
Senior Vice President, Risk Manager and Financial Accounting Officer
Carolyn Shaw, 509-944-3888
carolyng@intermountainbank.com
For full details on (IMCB) IMCB. (IMCB) has Short Term PowerRatings at TradingMarkets. Details on (IMCB) Short Term PowerRatings is available at This Link.
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