Idaho First Bank Reports First Quarter Results

MCCALL, ID reported financial results for the first quarter of 2008. The Bank experienced significant growth during the quarter. Loans grew to $36.7 million, a 66% increase from the first quarter of 2007, and more importantly a 35% increase from the $27.1 million balance at the end of 2007.

The Bank's new Loan Production Office in Boise was a major contributor to the loan growth. The McCall Bank experienced loan growth despite a continued slow economic environment compounded by the reports of Tamarack Resorts bankruptcy filing and the reported possibility of the City of McCall filing for Chapter 9 bankruptcy protection. The Bank has no credit exposure to either entity and the City of McCall believes it has reached a settlement that will prevent them filing for protection. We are encouraged that steps implemented during our strategic planning session in the fall of 2007 are beginning to bring improved results.

The net loss reported for the first quarter of 2008 was $728,000 compared to a loss of $351,000 in the first quarter of 2007. The increased loss was caused by the provision for loan losses being $410,000 in the first quarter of this year, compared to $33,000 last year in the first quarter. This major increase in the provision for loan losses was caused by the large growth in loans in the first quarter and the decision to charge off a nonperforming loan.

At the end of 2007, the Bank had two nonperforming loans totaling $495,000. A subdivision development loan with a balance of $348,000 was charged off in the first quarter of 2008 due to deterioration in the underlying collateral value for the loan. Although additional collateral was secured for the loan, the weakness of the current real estate market and the extended time to resolve the problem credit resulted in a decision to charge off the full balance of the $348,000 loan. After the charge-off of this loan, the Bank has only one loan, with a balance of $147,000, on nonaccrual status. President and CEO Greg Lovell commented, "We continue our policy of being conservative in management of the loan portfolio and to aggressively recognize credit issues as they occur. We believe that the Boise real estate market will recover and the loan will be resolved in the Bank's favor. We are optimistic that the remaining nonaccrual loan of $147,000 will be resolved in three to six months without any loss to the Bank." The Bank reports there are no other loans past due nor did it participate in the sub-prime real estate loan market.

Without the impact of the loan charge-off the financial results of the Bank were close to the Financial Plan of the Bank. Mr. Lovell commented, "Expense management is a high priority for 2008. The commitment to control expenses is already evidenced by the second consecutive quarter of declines in noninterest expenses. We are working hard to find markets that will allow us to grow the Bank's loan and deposit portfolios."

The Federal Reserve's significant drop in short-term interest rates has had a negative impact on the Bank's net interest margin. Mr. Lovell commented, "We have aggressively monitored our asset and liability position. These efforts were not able to prevent a decline in our net interest margin but limited the decline." Net interest margin in the first quarter of 2008 was 4.16%.

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


For the three months
  ended March 31:                     2008      2007          Change
                                    --------  --------  ------------------
  Net interest income               $    420  $    320  $    100        31%
  Provision for loan losses              410        33       377      1142%
  Mortgage banking income                 33        37        (4)      -11%
  Other noninterest income                43        34         9        26%
  Noninterest expenses                   814       709       105        15%

   Net loss                             (728)     (351)     (377)     -107%

At March 31:                          2008      2007           Change
                                    --------  --------  ------------------
  Loans                             $ 36,689  $ 22,136  $ 14,553        66%
  Allowance for loan losses              462       324       138        43%
  Assets                              46,193    32,238    13,955        43%
  Deposits                            36,998    29,198     7,800        27%
  Stockholders' equity                 5,361     2,787     2,574        92%

  Nonperforming loans                    147       219       (72)      -33%

  Book value per share                  5.88      5.10      0.78        15%
  Shares outstanding                 910,964   546,741   364,223        67%

  Allowance to loans                    1.26%     1.46%
  Allowance to nonperforming loans       314%      148%
  Nonperforming loans to loans          0.40%     0.99%

Averages for three months
  ended March 31:                     2008      2007           Change
                                    --------  --------  ------------------
  Loans                             $ 31,195  $ 22,069  $  9,126        41%
  Earning assets                      40,563    29,609    10,954        37%
  Assets                              42,984    31,487    11,497        37%
  Deposits                            34,255    28,317     5,938        21%
  Stockholders' equity                 5,717     2,915     2,802        96%

  Loans to deposits                       91%       78%
  Net interest margin                   4.16%     4.38%




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


                          Q1 2008   Q4 2007   Q3 2007   Q2 2007   Q1 2007
                          --------  --------  --------  --------  --------
Net interest income       $    420  $    393  $    419  $    340  $    320
Provision for loan losses      410        68         8         -        33
Mortgage banking income         33        37        17        50        37
Other noninterest income        43        51        32        37        34
Noninterest expenses           814       829       942       625       709

Net loss                      (728)     (416)     (482)     (198)     (351)

Period End Information    Q1 2008   Q4 2007   Q3 2007   Q2 2007   Q1 2007
                          --------  --------  --------  --------  --------
Loans                     $ 36,689  $ 27,123  $ 25,496  $ 21,976  $ 22,136
Allowance for loan losses      462       400       332       324       324
Nonperforming loans            147       495         -         -       219
Quarterly net charge-offs      348         -         -         -         -


Allowance to loans            1.26%     1.47%     1.30%     1.47%     1.46%
Allowance to
 nonperforming loans           314%       81%      N/A       N/A       148%
Nonperforming loans to
 loans                        0.40%     1.83%     0.00%     0.00%     0.99%

Average Balance
 Information              Q1 2008   Q4 2007   Q3 2007   Q2 2007   Q1 2007
                          --------  --------  --------  --------  --------
Loans                     $ 31,195  $ 26,221  $ 24,327  $ 22,218  $ 22,069
Earning assets              40,563    35,643    35,269    29,455    29,609
Assets                      42,984    38,048    37,592    31,444    31,487
Deposits                    34,255    31,699    30,221    27,893    28,317
Stockholders' equity         5,717     6,050     5,681     3,024     2,915

Loans to deposits               91%       83%       80%       80%       78%
Net interest margin           4.16%     4.37%     4.71%     4.63%     4.38%

Contacts: Greg Lovell President and CEO 208-630-2001 or Don Madsen CFO 208-947-0430

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