Bank of Idaho : 1Q 2022 Earnings Release

FOR IMMEDIATE RELEASE CONTACT:

Jeff Newgard

President and CEO - Bank of Idaho 208.528.3035,[e-mail]

Bank of Idaho Holding Company Reports First Quarter 2022 Financial Results

IDAHO FALLS, ID - (04/25/2022) - Bank of Idaho Holding Company (OTCQX: BOID), the holding company for Bank of Idaho, today announced results (unaudited) for the first quarter ended March 31, 2022.

Jeff Newgard, President and CEO of Bank of Idaho commented "The Bank of Idaho had a terrific start to 2022 with continued core loan and deposit growth. While we saw a decline in PPP fees and mortgage banking income from the elevated levels of 2021, the overall growth in earning assets helped maintain profitability. We are in our fourth year in the growing Boise metropolitan area and are seeing great returns as our relationship banking model and best-in-state SBA lending team are well received by the market."

The Company's net income for the first quarter was $1,666,000 or $0.64 per diluted share, compared to $701,000 or $0.27 per diluted share in the previous quarter. For the three months ended March 2021, net income was $2,097,000 or $0.82 per diluted share. Assets ended the quarter at $767.2 million, up from $737.6 million on December 31, 2021, and $625.5 million on March 31, 2021.

Financial Highlights:

• • Total loans held for investment were $496.8 million as of March 31, 2022, an increase of 8.7% for the first quarter and 21.9% year-over-year. Excluding PPP loans, total loans held for investment increased 10.4% from the previous quarter and were 38.7% above the same period last year. $49.0 million of the Bank's $89.3 million of net loan growth over the twelve months ended March 31, 2022 was generated from the Bank's Boise area offices, with another $29.8 million of net growth from the SBA department. PPP loans were $4.6 million at quarter-end, down $48.1 million year-over-year.

• • Total deposits increased 5.1% in the quarter and were up 23.4% from a year ago to end the first quarter at $677.6 million. Noninterest-bearing deposits represented 40.1% of total deposits on March 31, 2022 and were up $54.0 million from a year ago. The $128.4 million of total deposit growth in the last twelve months was attributable to both higher average customer balances and the Bank's growing customer base in the Boise metropolitan area.

• • First quarter net interest income of $6.8 million was $569,000 higher than the fourth quarter and $409,000 higher than Q1 2021. The increase was driven by increased loan and securities balances and stable funding costs. Excluding the effects of PPP loan income and the recovery of interest on legacy non-accrual loans, the "core" net interest income for the quarter was $6.3 million, compared to $5.2 million for the same period of 2021.

• • Non-interest income for the first quarter decreased $463,000 from the prior quarter to $1.7 million due to a decline in mortgage banking revenue and a decline in trust revenue. Mortgage banking activity has slowed due to sharply increasing interest rates, while trust revenue declined as the Bank exited a marginally profitable non-core business line with out-of-market customers. Year-to-date non-interest income through March 31, 2022 was down $1.3 million or 42.6% from Q1 2021, which was a particularly strong quarter that included OREO gains, securities gains, and elevated mortgage banking income.

• • The Bank's Tier 1 Leverage Ratio was 10.25% as compared with the December 31, 2021 level of 9.52%. The Bank's Total Capital Ratio decreased to 14.90% from the prior quarter ratio of 15.11% due to a shift in assets from cash to loans and investments. The holding company contributed $5 million of capital to the Bank in the first quarter 2022, with approximately $8 million of proceeds from the 2021 subordinated debenture issue still available for injection to the Bank to support growth.

• • Nonaccrual loans declined $673,000 during the first quarter to $1.9 million, down from $4.3 million at March 31, 2021. The Bank had no other real estate owned at quarter-end. The Bank's allowance for loan and lease losses as a percent of loans held for investment was 1.50% compared to 1.67% at the end of the Q1 2021. No provision for loan loss was taken in Q1 2022, as the Bank had net loan recoveries of $153,000 and credit quality indicators remained strong.

• • The Company's period-end book value per share was $22.18. Book value per share was down from the prior quarter-end value of $23.77 and the prior year value of $22.20 due to changes in the unrealized gains and losses on securities, net of tax, offsetting accreted earnings. The unrealized losses on securities, net of tax, increased to $5.1 million at March 31, 2022 due to the significant increase in market rates since year-end.

BANK OF IDAHO HOLDING COMPANY CONSOLIDATED BALANCE SHEETS (unaudited)

ASSETS Cash

Interest bearing deposits in bank Certificates of deposit

Securities

Federal Home Loan Bank stock, at cost Mortgage loans held for sale

Loans

Allowance for loan losses Loans net of allowance

Accrued interest receivable Premises and equipment, net Other real estate owned Other assets

TOTAL ASSETS

LIABILITIES

Noninterest-bearing demand Interest-bearing demand Time certificates of deposits Total deposits

Accrued interest payable

Accounts payable and accrued liabilities Operating lease liabilities

Stock appreciation rights FHLB advances

Other borrowings Finance lease borrowings

Total liabilities

STOCKHOLDERS' EQUITY

Common stock, no par value, 4,000,000 shares authorized, 2,593,186 outstanding at March 31, 2022; 2,577,373 outstanding at December 31, 2021; 2,526,085 outstanding at March 31, 2021.

Retained earnings

Accumulated other comprehensive income (loss)

Total stockholders' equity

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

Mar 31, 2022

Dec 31, 2021

Mar 31, 2021

$

14,392,656 $

6,070,882 $ 10,254,091

78,451,626

103,237,270 70,717,380

155,318,169

885,100

782,600

782,600 146,394,656 689,900

288,600 112,642,679 689,900

496,855,184

9,753,343

15,767,549 14,564,066 457,057,081 407,547,351

(7,471,000)

(7,318,198)

(6,808,132)

489,384,184

449,738,883 400,739,219

10,375,116 -

2,361,411

2,517,564 2,095,367 9,175,401 11,232,025

5,512,724

- 3,247,915

- 2,267,097

$ $

767,216,929 $

737,622,620 $

625,490,424

387,954,100

271,861,678 $

17,780,067

262,587,920 $ 217,893,596 365,049,724 315,665,969 17,274,438 15,636,012

677,595,845

39,557

644,912,082 183,834

549,195,577 16,917

2,754,891

3,126,128 3,378,876

4,084,215

2,873,770 1,768,313

282,924 -326,305 -109,171 -

24,502,821

24,489,202 10,435,456

709,690,158

429,905

443,112 3,370,972 676,354,433 568,275,282

28,242,121 34,375,485 (5,090,835) 57,526,771

27,735,150 27,545,254 32,709,633 28,800,585

823,404 61,268,187

869,303 57,215,142

$

767,216,929 $

737,622,620 $

625,490,424

BANK OF IDAHO HOLDING COMPANY CONSOLIDATED STATEMENTS OF INCOME (unaudited)

Interest and Dividend Income Loans, including fees Securities

Interest bearing deposits

Total interest and dividend income

Interest Expense

NOW demand and savings Money market

Time certificates of deposit

FHLB advances and other borrowings

Total interest expense

Net interest income before provision for loan losses Provision for loan losses

Net interest income after provision for loan losses

Noninterest Income

Service charges on deposit accounts

Gain on sale of mortgage loans held for sale Merchant card income

Trust fee income

Gain on sale of securities Gain on sale of loans

Gain on sale of other real estate owned Other noninterest income

Total noninterest income

Noninterest Expense

Salaries, wages & benefits Net occupancy expense

Advertising and business development Accounting and consulting

Bankcard and merchant services Data processing

Legal

Telephone, postage and courier Other real estate owned expense

Loss on sale of other real estate owned Office supplies

FDIC assessment

General and administrative

Total noninterest expense Income before income taxes Income tax expense (benefit)

Net Income

Basic earnings per share Diluted earnings per sharePERFORMANCE RATIOS Return on average assets Return on average equity

LEVERAGE (Bank of Idaho)

Tier 1 Leverage ratio Total Capital ratio

ASSET QUALITY Nonaccrual loans/loans Allowance for loan losses/loans

QUARTERLY

Mar 31, 2022

Dec 31, 2021

Mar 31, 2021

$

6,310,177 $ 816,126 46,732 7,173,035

5,795,970 $ 751,558 61,363 6,608,891

• 5,982,711 $ 658,461 17,943 6,659,115

51,268

54,642

46,759

10,864

10,996

10,681

15,461

16,436

19,687

286,647

286,783

182,301

6,808,795 - 6,808,795

364,240

6,240,034 100,000 6,140,034

368,857

259,428 6,399,687 220,003 6,179,684

141,693

145,389

118,095

817,623

1,144,447

2,017,953

14,154

18,120

11,424

498,723 -

581,084 -

431,894

69,411

2,417 -

2,447 -

2,531

38,992

181,705

227,919

195,675

1,656,315

2,119,406

2,885,975

3,879,811

4,768,969

4,375,910

656,860

628,000

631,987

270,439

321,090

207,026

135,292

136,777

114,685

(1,486)

2,072

(1,756)

209,027

557,144

433,523

17,691

45,663

40,252

65,093 - -

81,724 - -

75,716

(3,404) - (3,404)

-

16,689

18,917

31,079

93,537

62,358

104,823

790,770

739,684

211,733

6,133,723

7,362,398

6,221,574

2,331,387

897,042

2,844,085

665,535

195,928

747,054

$

1,665,852 $

701,114 $

2,097,031

$0.65 $0.64

$0.27 $0.27

$0.82 $0.82

QUARTERLY

Mar 31, 2022

Dec 31, 2021

Mar 31, 2021

0.88% 11.42% 10.25% 14.90%

0.38% 1.37%

4.63% 14.60%

9.52% 10.11%

15.11% 15.65%

0.38% 1.50%

0.56% 1.07%

1.60% 1.67%

YEAR-TO-DATE

Mar 31, 2022

Mar 31, 2021

6,310,177 $ 5,982,711

816,126 658,461

46,732 17,943 7,173,035 6,659,115

51,268 46,759 10,864 10,681 15,461 19,687 286,647 182,301

364,240 6,808,795 -259,428 6,399,687 220,003

6,808,795 6,179,684

141,693

118,095

817,623 2,017,953

14,154 11,424

498,723 431,894

- 69,411

2,417 2,531

- 38,992

181,705 195,675

• 1,656,315 2,885,975

• 3,879,811 4,375,910

656,860 631,987

270,439 207,026

135,292 114,685

(1,486) (1,756)

209,027 433,523

17,691 40,252

65,093 75,716

-

-16,689 31,079

93,537 104,823

790,770 211,733

• 6,133,723 6,221,574

• 2,331,387 2,844,085

665,535

747,054

$

1,665,852 $

2,097,031

$0.65 $0.82

$0.64 $0.82

YEAR-TO-DATE

Mar 31, 2022	Mar 31, 2021
0.88%	1.37%
11.42%	14.60%