Idaho First Bank Reports Mid-Year Results

  Today Idaho First Bank (OTCQB: IDFB) reported financial results for June 30, 2013. The Bank reported net income of $206,000 for the first half of 2013, compared to net income of $39,000 in the same period last year. The quarterly net income for the second quarter was $100,000, down slightly from first quarter income of $106,000, but significantly higher than the $16,000 of income in the second quarter of 2012.

In the first six months of 2013 the Bank issued $1.6 million of new stock, significantly improving the Bank's capital position. In additional to the new capital already raised, the Bank is continuing its private placement offering to accredited investors with a goal of a 10% capital to asset ratio. At June 30, 2013, the capital to asset ratio was 8%. "We believe with this improved performance and the additional capital we have substantially improved the status of the Bank," stated Mark Miller, Chairman of the Board.

Comparing the first half of 2013 to the first half of 2012, the Bank achieved a 9% increase in net interest income. This was driven by average loan growth of 3% and an improving net interest margin. Mortgage banking income also contributed to the improved results. Mortgage banking income was almost up 77% from last year. "The performance of the loan portfolio is having a positive impact on our earnings. Lower problem loan levels have reduced the negative drag on earnings," stated Greg Lovell President and CEO. He further said, "We continue to emphasize the purchase market in our real estate lending. This helps to soften any loss of business from a slow down in the refinance market."

During the second quarter the Bank purchased the real estate of the Bank's main office in McCall. This purchase reduced significantly the cost of occupancy going forward. "We intend to lease out excess space and, to date, have been successful in implementing that strategy," stated President Lovell. A portion of the purchase price was paid in stock further increasing the capital of the Bank.

Nonperforming assets were $1.1 million at June 30, 2013, a decrease of 7% from the prior year. The allowance for loan losses was 1.37% of loans at June 30. Chief Credit Officer Jerry Jutting said, "We believe the worst of our legacy credits are behind us now and we have been adding quality core loans to our portfolio."

Idaho First Bank is a state-chartered commercial bank that opened for business in October 2005. Its headquarters are located in McCall, Idaho, with a loan production office in downtown Boise.

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 the forward-looking statements after the date of this release. This statement is included for the express purpose of invoking PSLRA's safe harbor provisions.

                              Idaho First Bank
                      Financial Highlights (unaudited)
                  (Dollars in thousands, except per share)

For the six months ended June
30:                                  2013        2012           Change
                                 -----------  ----------  -----------------
  Net interest income            $     1,545  $    1,414  $      131      9%
  Provision for loan losses              220         250         (30)   -12%
  Mortgage banking income              1,280         725         555     77%
  Other noninterest income               151         124          27     22%
  Noninterest expenses                 2,550       1,974         576     29%

    Net income                           206          39         167    428%

At June 30:                          2013        2012           Change
                                 -----------  ----------  -----------------
  Loans                          $    72,575  $   70,836  $    1,739      2%
  Allowance for loan losses              996         794         202     25%
  Assets                              87,328      80,635       6,693      8%
  Deposits                            76,101      73,477       2,624      4%
  Stockholders' equity                 6,736       4,742       1,994     42%

  Nonaccrual loans                     1,104       1,182         (78)    -7%
  Accruing loans more than 90
   days past due                           -           -           -
  Other real estate owned                606         874        (268)   -31%

    Total nonperforming assets         1,710       2,056        (346)   -17%

  Book value per share                  0.56        0.58       (0.02)    -3%
  Shares outstanding              12,003,349   8,129,932   3,873,417     48%

  Allowance to loans                    1.37%       1.12%
  Allowance to nonperforming
   loans                                  90%         67%
  Nonperforming loans to total
   loans                                1.52%       1.67%

Averages for the six months
 ended June 30:                      2013        2012           Change
                                 -----------  ----------  -----------------
  Loans                          $    68,350  $   66,112  $    2,238      3%
  Earning assets                      78,915      75,083       3,832      5%
  Assets                              83,628      78,408       5,220      7%
  Deposits                            75,011      71,227       3,784      5%
  Stockholders' equity                 5,959       4,717       1,242     26%

  Loans to deposits                       91%         93%
  Net interest margin                   3.95%       3.79%



                              Idaho First Bank
                 Quarterly Financial Highlights (unaudited)
                           (Dollars in thousands)

Income Statement                Q2 2013  Q1 2013  Q4 2012  Q3 2012  Q2 2012
                                -------  -------  -------  -------  -------
  Net interest income           $   774  $   771  $   788  $   799  $   716
  Provision for loan losses          90      130      160      275      135
  Mortgage banking income           622      658      486      727      499
  Other noninterest income           74       77       82       71       68
  Noninterest expenses            1,280    1,270    1,078    1,217    1,132

    Net income                      100      106      118      105       16

Period End Information          Q2 2013  Q1 2013  Q4 2012  Q3 2012  Q2 2012
                                -------  -------  -------  -------  -------
  Loans                         $72,575  $68,195  $72,187  $69,085  $70,836
  Allowance for loan losses         996      934    1,114    1,108      794
  Nonperforming loans             1,104      703    1,012    1,369    1,182
  Other real estate owned           606      633      827      857      874
  Quarterly net charge-offs          28      310      154      (39)     215


  Allowance to loans               1.37%    1.37%    1.54%    1.60%    1.12%
  Allowance to nonperforming
   loans                             90%     133%     110%      81%      67%
  Nonperforming loans to loans     1.52%    1.03%    1.40%    1.98%    1.67%

Average Balance Information     Q2 2013  Q1 2013  Q4 2012  Q3 2012  Q2 2012
                                -------  -------  -------  -------  -------
  Loans                         $68,778  $67,918  $69,745  $70,427  $67,536
  Earning assets                 77,775   80,068   79,651   79,549   76,314
  Assets                         84,070   83,181   83,104   82,962   79,672
  Deposits                       74,488   75,540   75,495   75,185   72,547
  Stockholders' equity            6,636    5,274    4,886    4,778    4,726

  Loans to deposits                  92%      90%      92%      94%      93%
  Net interest margin              3.99%    3.91%    3.94%    4.00%    3.77%

Contacts: Greg Lovell 208.630.2001 Don Madsen 208.947.0430