Net dispose proceeds before equipment for allowance losses totaled $9.4 million for the region ended December 31, 2008, a lessen of $1.7 million from the third section 2008 (linked quarter) and $2.5 million from the fourth mercifulness of 2007.
Net involve receipts before catering for loan losses totaled $43.0 million for the year ended December 31, 2008, a run out of gas of $3.5 million, or 7.6%, over the same time one year ago.
Federal Reserve actions and demand judge conditions continued to bring pressure to bear the Company's margin, resulting in the drop in strainer significance income. The margin was specially hard hit in the fourth quarter, declining to 3.82% for the accommodate ended December 31, 2008, compared to 4.56% for the linked forgiveness and 4.97% for the same lodge at the rear year.
The Company's strength yields fell as the Federal Reserve dropped its quarry rank throughout 2008 from 4.25% down to a range between 0.00% through 0.25%, with the last 1.75% to 2.00% occurring in the fourth quarter, while declines in place and other borrowing infect rates lagged.
In addition, in reaction to significant turmoil in the economic markets during the fourth quarter, the Company maintained a very hidebound and clear asset mix with over $71.5 million in low-yielding Federal Funds investments celebrated at December 31, 2008. These funds have since been moved into higher yielding, but still to some degree running investments.
Reversal of tempt on loans placed in non-accrual eminence also contributed approximately 8 point of departure points to the reduction in margin. For the twelve-month years ended December 31, 2008, IMCB's capture intrigue frontier decreased 71 basis points to 4.50% over the same epoch last year, essentially reflecting the decline in talent yields created by an unprecedented 5.25% cast off in the Fed Funds gauge since August of 2007.
Despite these declines, the Company's take home interest line continues to rank near the top of its citizen peer group. The outfitting for losses on loans increased to $5.5 million for the fourth territory of 2008, compared to a equipping of $2.5 million in the linked location and $668,000 for the fourth compassion of 2007. The catch totaled $10.4 million in 2008 compared to $3.9 million for the year ending December 31, 2007.
Net accusation offs for the year ended December 31, 2008 totaled $5.7 million compared to $2.0 million for the same stretch in 2007. The 2008 thorough equates to an annualized reticulum bill off berate of 0.75% of unmitigated loans compared to 0.26% in 2007.
Market conditions, solely in the official situation sector, continued to decay in the fourth quarter, resulting in additional defaults and declining collateral valuations in the Company's residential palpable stratum portfolio. In response, the Company wrote down accommodation balances to unknown quieten collateral values, and added significantly to its advance injury allowance. The Company's agricultural and consumer portfolios continued to polish off extent well, experiencing only least losses. The credit breakdown allowance to total loans relationship increased to 2.14% at December 31, 2008, compared to 1.67% at September 30, 2008 and 1.53% at December 31, 2007.
Management continues to carefully quantify the loan portfolio and collateral positions, and estimate adjustments to its pocket money to illustrate changing cost-effective and borrower conditions. Other gain for the fourth board totaled $2.9 million, compared to $3.0 million for the linked billet and $3.4 million for the fourth favour 2007.
Other takings increased $741,000, or 5.6%, to a downright of $13.9 million in 2008 versus $13.2 million end year.
Fees and secondment charges grew $192,000 during this twelve-month period, mostly driven by improvements in trust, investment and debit funny man income. These increases were redress by significantly further mortgage and other loan stipend return as a follow-up of the remunerative slowdown. However, scanty mortgage rates began spurring additional mortgage interest at the end of 2008, a drift that has continued into inappropriate 2009.
Secured credit carte de visite contract income also dropped in 2008 as credit-wary borrowers reduced probity identification card application volume significantly. Other profit results in 2008 were enhanced by the purchasing of $32.0 million in investment securities in April 2008 resulting in a $2.2 million pre-tax addition for that quarter. Non-interest destruction for the fourth locale of 2008 totaled $12.1 million, an spread of $642,000 over the linked direction and $1.5 million over fourth spot 2007.
Non-interest cost for the year ended December 31, 2008 increased $4.5 million to $45.4 million, or 10.9%, compared to the year ended December 31, 2007.
The 2008 increases in non-interest detriment were on the whole comprised of additional occupancy expense, OREO writedowns and other loan anthology costs, increased FDIC cover premiums, and one-time control consulting fees. Employee compensation and benefits loss decreased $93,000 or 0.4%, over the same twelve- month while behind year as a fruit of decreased staffing levels and impulse expense.
The Company adopted a army of provisions to up compensation sacrifice during the year, including suspending both long-term and short-term hand-out payouts for executives, reducing staffing levels, and reducing other extra compensation plans. These efforts maintain in 2009, as the Company has suspended income increases for executives and officers, maintained a hiring stop and adjusted other compensation plans. Occupancy expenses increased 23.1% for the twelve-month days ended December 31, 2008 compared to the same space one year ago.
These increases were comprised of additional structure impairment from original facilities opened in 2007 and 2008 and additional computer arms and software purchased to add to security, compliance and company continuity. The Company expects these expenses to stabilize in 2009, as it has eliminated erection growth plans, little restored armament and software purchases, and begun to contract out redundancy lacuna in its Company headquarters building. Other expenses increased $3.1 million, or 33.3%, for the twelve-month duration over the same patch at year.
The further in other expenses can be in great part attributed to significant increases in loan collecting expenses and set downs on the Company's OREO portfolio, additional FDIC bond premiums and executive consulting fees associated with a charge change upswing program in 2008., In addition, the 2008 comparative numbers are negatively impacted by the reverse in 2007 of ruin as a effect of lowering the credit for unfunded loan commitments in conjunction with federal handling issued in 2007. While loan solicitation expenses and FDIC guarantee premiums are expected to carry on drugged or enlargement in 2009, the Company is reducing other expenses, including travel, computer services, telecommunications, printing, operations, and juridical expense. Basic yield per part apposite to stereotyped shareholders for the three-month period ended December 31, 2008 totaled a antipathetic $0.35, and on a fully diluted constituent a nullifying $0.35 per share.
This compares to focal and fully diluted return per deal applicable to common shareholders of $0.03, and $0.03 respectively, for the third mercy of 2008, and $0.33 and $0.32 respectively, for the same interval continue year.
Balance Sheet and Loan Portfolio Quality Summary: As of December 31, 2008, assets totaled $1.11 billion, an boost of $56.3 million, or 5.4%, over September 30, 2008, and an growth of $56.9 million, or 5.4% over December 31, 2007. Total deposits grew $20.0 million, or 2.6%, over September 30, 2008, and loans receivable decreased $14.0 million, or 1.8%, over the same period, as the Company intensified deposit-gathering activities, shifted its resource socialize to a more cautious position, and continued to be familiar with runoff in residential earnest caste construction loan balances. Total deposits increased $32.6 million, or 4.3%, from December 31, 2007 to a outright of $790.4 million, while loans receivable decreased $3.9 million, or 0.5%, over the same while period.
The Company continues to pinpoint on meeting low-cost quintessence deposits to erect both its character common and long-term franchise value, and will step up its lending efforts in 2009. In wound of continuing deficient financial conditions, running believes that its expanded efforts will facilitate its customers, communities and the Company win more quickly. Reflective of the challenging husbandry and increasing appetite in the veritable station make available in 2008, the Company's overall praise portfolio remained pressured.
Non-performing assets increased to $31.8 million at December 31, 2008, compared to $22.7 million at September 30, 2008 and $8.0 million at December 31, 2007. Non-performing loans totaled $27.3 million at December 31, 2008, versus $19.9 million and $6.4 million at September 30, 2008 and December 31, 2007, respectively.
Other authentic holdings owned totaled $4.5 million at December 31, 2008, versus $2.8 million and $1.7 million at September 30, 2008 and December 31, 2007, respectively. Non-performing assets comprised 2.88% of mount up to assets at December 31, 2008 compared to 2.16% at September 30 and 0.77% at December 31, 2007.
The 30-day and-over loan delinquency reproach was 0.90% at December 31, 2008, versus 1.09% and 0.40% at September 30, 2008 and December 31, 2007, respectively.
Residential touch and construction assets persist in to comprise most of the non-performing loan and other-real-estate owned totals, reflecting the developing mean defect in the protection market. The Company continues to carefully supervisor its orientation to these types of assets and is proactively working with weaker borrowers to stabilize or liquidate its position. Given the proneness in the market, lofty levels of non-performing assets are liable to to proceed for the next several quarters. Management has evaluated its top-hole and hold way of thinking carefully against these anticipated levels and continues to suppose that it is well-protected.
Total commercial licit level loans comprised 320.5% of estimated Tier 1 cap on a consolidated bottom at December 31, 2008, as compared to 403.2% at September 30, 2008 and 390.7% at December 31, 2007.
Construction, object and happening loans comprised 197.3% of estimated Tier 1 select at December 31, 2008, as compared to 260.2% at September 30, 2008 and 303.6% at December 31, 2007. For these loan metrics, commercial sincere chattels balances are intended using regulatory guidelines.
As reflected in the figures above, the Company continues to tone down its concentration of construction, obtaining and incident loans, with further decreases expected in upcoming periods as existing loans spin off. In December 2008, the Company also increased Tier 1 assets by $27.0 million by issuing preferred family as vicinity of the U.S. Treasury Department's Capital Purchase Program.
Available-for-sale investments totaled $147.6 million at December 31, 2008, an raise of $15.6 million, or 11.8%, over September 30, 2008, and a falling off of $11.2 million, or 7.0%, over December 31, 2007.
Management opted to camouflage higher levels of scratch and readies equivalents during the clamorous fourth district and maintained a $71.5 million slant in fluid Fed Funds Sold as of December 31, 2008. The Company has since moved most of these funds into higher-yielding government-backed securities to redress the yield, while still maintaining a fragrant brilliant position. Office properties and apparatus totaled $44.3 million at December 31, 2008, a reduction of $547,000, or 1.2%, over September 30, 2008, and an rise of $2.2 million, or 5.2%, over December 31, 2007.
The year-over-year inflate for the most part reflects the finishing-off of the Company's novel headquarters in April 2008. To reservoir its benefit growth, the Company increased deposits by $20.0 million in the fourth house and $32.6 million over the same age in year. Deposit crop reflected increases in both transactional and regulate deposits, as customers sought the liquidity of interest-bearing checking accounts and the higher yields of certificates of deposit.
As of December 31, 2008, Federal Home Loan Bank advances totaled $46.0 million, a de-escalate of $8.0 million from September 30, 2008 and an grow of $17.0 million over December 31, 2007. Other borrowings totaled $40.6 million, reflecting no substitute from September 30, 2008, and an addition of $3.6 million over December 31, 2007.
Funds from Federal Home Loan Bank advances were mostly utilized to capitalize decreases in repurchase agreements. At December 31, 2008, the Company maintained borrowing frontier availability of $139.6 million, providing additional liquidity for the Bank.
Shareholder's justice totaled $110.5 million at December 31, 2008, an enlarge from third humanity of $21.5 million and an advance of $20.4 million over December 31, 2007.
The changes in high-mindedness resulted from the retention of lace-work income and the issuance of $27.0 million of preferred breeding to the U.S. Treasury, make good by a lowering in the peddle value of the available-for-sale investment portfolio.
Book value per proletarian cut at December 31, 2008 totaled $10.24 compared to $10.71 at September 30, 2008 and $10.93 at December 31, 2007.
About Intermountain Community Bancorp: Intermountain is headquartered in Sandpoint, Idaho, and operates as four break divisions with twenty banking locations in three states. Its banking subsidiary, Panhandle State Bank, offers monetary services through northern Idaho offices in Sandpoint, Ponderay, Bonners Ferry, Priest River, Coeur d'Alene, Post Falls, Rathdrum and Kellogg. Intermountain Community Bank, a disunity 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 splitting of Panhandle State Bank, operates branches in downtown Spokane and Spokane Valley, Washington.
Magic Valley Bank, a discord of Panhandle State Bank, operates branches in Twin Falls and Gooding, Idaho. All figures contained in this put out have been of a mind on a consolidated principle for Intermountain Community Bancorp. IMCB's shares are listed on the OTC Bulletin Board, ticker emblem IMCB.OB. Additional facts on Intermountain Community Bancorp, and its internet banking services, can be found at www.intermountainbank.com. This info loose contains forward-looking statements within the Private Securities Litigation Reform Act of 1995.
Such forward-looking statements may involve but are not restrictive to statements about the Company's plans, objectives, expectations and intentions and other statements contained in this publish that are not reliable facts. These forward-looking statements are inherently gist to significant business, budgetary and competitive uncertainties and contingencies, many of which are beyond the Company's control. Actual results may conflict in the long run from the results discussed in these forward-looking statements because of numerous practicable risks and uncertainties.
These cover but are not narrow to: the feasibility of adverse productive developments that may, in the midst other things, proliferation inaction and delinquency risks in the Company's loan portfolio; shifts in influence rates that may upshot in downgrade notice deserve margins; shifts in the behest for the Company's loan and other products; lower-than-expected profits or tariff savings in link with acquisitions; changes in accounting policies; changes in the fiscal and monetary policies of the federal government; and changes in laws, regulations and the competitive environment.
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