Movers and Shakers

Intermountain Bank reports losses

Intermountain Community Bancorp (OTCBB:IMCB), the holding company for Panhandle State Bank, on Tuesday reported 2009 financial results with solid liquidity, strong increases in customer deposits and lower loan delinquencies.

Reflecting the difficult economic environment in the Pacific Northwest, Intermountain reported that following a $36.3 million provision for loan losses, it recorded a net loss applicable to common shareholders of $23 million, or $2.75 per common share. In 2008, net income was $1.2 million, or 14 cents per diluted common share, which included $10.4 million in loan loss provision. For the fourth quarter of 2009, the net loss applicable to common shareholders totaled $8.4 million, or $1 per common share, compared to a net loss of $2.9 million, or 35 cents per common share, in the fourth quarter of 2008.

"In 2009, we saw the most difficult economic conditions in recent memory and banks throughout the nation are stressed. Like many of our peers, our financial results in 2009 were, frankly, far below anything we would have predicted a year ago," said Curt Hecker, chief executive officer. "Fortunately, we have a strong balance sheet, high level of reserves, ample liquidity and a valuable and loyal local deposit base. We believe that we will emerge from this difficult time period a stronger and more resilient institution."

In the period ended Dec. 31, 2009, deposits increased 3.7 percent year-over-year, and core deposits from local customers account for more than 80 percent of total deposits.

Local deposit market share increased in virtually all of the company's markets in 2009.

Total risk based capital ratio was 12.6 percent and Tier 1 Leverage Ratio was 8.7 percent.

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 stood at $16.6 million, or 2.47 percent of total loans compared to 2.14 percent a year ago.

Allowance for loan losses was 87.2 percent of nonperforming loans, up from 60.2 percent a year ago.

Asset quality at year end improved from the immediate prior quarter with nonperforming assets to total assets falling to 2.83 percent from 3.47 percent the prior quarter and loan delinquencies (30 days past due and over) down to 0.93 percent of total loans from 1.48 percent.

Book value per common share was $7.62 and tangible book value per common share was $6.18 on Dec. 31, 2009.

"While all of the markets we serve were impacted by the downturn, some were more affected than others. In fact, some sectors of the greater Boise market fell by as much as 75 percent, and our loan portfolio suffered significant losses last year," Hecker said. "We feel we have written down the most vulnerable parts of our loan portfolio aggressively, both by geographic location and by loan type. In addition, we have generally avoided making non-owner occupied commercial real estate loans in those markets in our footprint we believe were overbuilt, and in those types, such as retail strip development and office buildings, that are most vulnerable. Overall, our commercial real estate portfolio is more than 47 percent owner occupied (including properties where the owner occupies a portion of the building and leases the remainder).

"Through the diligent and aggressive efforts of our credit workout team, we believe the quality of our asset portfolio was improved at the end of the fourth quarter compared to the prior two quarter ends, with almost every credit quality metric moving in the right direction. The levels of total classified loans, loan delinquencies, nonperforming assets and other real estate owned all declined from the prior two quarters. While we do not see an immediate upturn on the horizon in our markets, we also do not see the high levels of devaluation in 2010 that we saw last year."

Welch Comer Engineers earns silver

Welch Comer Engineers of Coeur d'Alene received the American Council of Engineering Companies of Washington Silver Award for Exceeding Client Needs for its work on Phase 3 of the Colville, Wash., U.S. 395 truck route and roundabout.

Matt Gillis, P.E, the project's senior project manager for Welch Comer Engineers attended the awards ceremony in Bellevue, Wash., where the juried awards program recognized outstanding engineering projects in Washington.

Welch Comer Engineers was recognized for its client service and leadership in the project's successful community/agency involvement, design and construction. The project completed a decade long, multi-phased effort to construct a truck-route through the city of Colville.

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