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Idaho First Bank’s participation in the program generated a considerable amount of positive market impact, noted in numerous comments shared by clients such as this one:
"Outstanding is a word I would use to describe Idaho First Bank. When I called about the PPP loan program on the day that the program was announced, Bob Buersmeyer was really, really good at figuring out the process and documents. Bob helped me get the documents together and submitted the next day, Friday. With a lot of work by Idaho First Bank over the weekend, the loan was approved and funded within 10 days. Bob was outstanding and they all put in an amazing effort to help get the job done. I've known Greg Lovell for years too and I can't thank him and Idaho First Bank enough for all they have done for my business." – J.M.

CEO Greg Lovell observed, “These comments reflect the work of our team throughout this process, and act as a testament to our goal of being an entrepreneurial leader in community banking. Bank team members worked many extra hours, including working 24 hours a day to meet the needs of our clients and the unique demands of the program. I couldn’t be prouder of our teams’ efforts as they took on this challenge and exceeded expectations.”

At June 30, 2020, the Bank’s total assets were $917 million, an increase of $707 million, or 338% over June 30, 2019. Total loans at June 30^th showed a 426% increase from 2019, to $809 million in outstanding balances as a result of the PPP loan activity. Deposits increased year over year by $98 million or 53% at June 30^th. The Bank used the Federal Reserve Bank’s PPPLF program funding to support the increase in loans.

The Bank has complied with FAS91 requirement to amortize the service fees received from the SBA for originating the PPP loans over the anticipated maturity of the notes. The Bank amortized net origination fees and costs of $1.4 million through interest income during the second quarter. The Bank held net unamortized origination fees and costs for PPP loans of $8.9 million at June 30, 2020 and anticipates the balance will be recognized through interest income over the course of the PPP loan forgiveness process.

The Bank's loan portfolio continues to perform during the unique economic environment. Management has completed a review of the loan portfolio to provide an early warning process for loans that may be negatively impacted by the economic conditions. Based on this review, the Bank cautiously believes the current status of the loan portfolio remains strong. The Bank will continue to regularly review the loan portfolio for any signs of deterioration.

To further support our clients in their response to the unique economic issues, the Bank worked with the regulatory agencies to implement loan payment deferrals that comply with safe and sound banking principles as formulated by the regulatory agencies. With 74 loan payment deferrals completed since March, the Bank continues to review COVID response plans and their potential impact on borrowers’ financial condition. These deferral arrangements will provide needed assistance to maintain the client credit performance.

While our current reviews support continued financial performance, the uncertain economic impact of COVID and ongoing regulatory and legislature actions make any forecasts of strong performance uncertain. Bank management, in conjunction with its board, continues to be active in oversight of efforts to help business clients through this economic upheaval.

The allowance for loan losses was funded at $2,668 million, or 1.37% of loans (minus 100% US guaranteed loans) at June 30, 2020. Total non-performing assets increased, while remaining low at $413 thousand, but were all balances guaranteed by the United States Department of Agriculture (USDA) loan guarantees, at June 30, 2020. The Bank has no other real estate owned. The Bank recognized $500 thousand in provision to the allowance for loan losses due to the overall economic conditions and will continue to monitor the portfolio and economic environment to ensure that the allowance for loan losses remains adequately funded.

Shareholders’ equity at June 30, 2020, was $29.3 million, an increase of $10 million from June 30, 2019, as a result of the stock raise late in 2019 and the profitability of the bank’s operations. Book value per share improved from $6.06 at June 30, 2019, to $6.41 at June 30, 2020. CFO Steve Speidel commented, “The Bank’s enthusiastic participation in PPP was a unique opportunity for the Bank to administer government relief to our customers while at the same time benefiting the Bank; both in the form of a boost to net income from recognition of fees received from the SBA, as well as from the goodwill earned with existing and new customers.”

About Idaho First Bank
Idaho First Bank is a full-service state-chartered community bank established in October 2005 and headquartered in McCall, Idaho. The Bank serves the greater southwest Idaho communities with four additional branches located in New Meadows, Eagle, Ketchum, and Boise. Idaho First Bank is a member of the FDIC and an Equal Housing Lender. For more information, visit us at www.idahofirstbank.com

This release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (“PSLRA”). Such forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those projected. These risks and uncertainties include, but are not limited to, economic conditions, the regulatory environment, loan concentrations, vendors, employees, technology, competition, and interest rates. Readers are cautioned not to place undue reliance on the forward-looking statements. Idaho First Bank has no obligation to publicly update forward-looking statements after the date of this release. This statement is included for the express purpose of invoking PSLRA’s safe harbor provisions.

CONTACT
Greg Lovell
President and CEO - Idaho First Bank
208.630.2001 - glovell@idahofirstbank.com