SANDPOINT, Idaho–(GLOBE NEWSWIRE)–Intermountain Community Bancorp (Nasdaq:IMCB), the holding company for Panhandle State Bank, is pleased to report $6.1 million, or $0.93 per diluted share, in net income applicable to common shareholders for the quarter ended December 31, 2013, as compared to net income of $1.5 million, or $0.23 per share, and $909,000, or $0.14 per share, in the third quarter of 2013 and the fourth quarter of 2012, respectively. Fourth quarter 2013 results included the $6.1 million reversal of the Company’s deferred tax asset valuation allowance, which offset higher expenses related to equity compensation granted to raise key employee compensation levels to market, and a valuation reserve established on the installment sale of the Company’s one remaining other real estate owned (OREO) property.
For the year ended December 31, 2013, net income applicable to common shareholders was $10.1 million, or $1.56 per diluted share, compared to $1.9 million, or $0.32 per diluted share for 2012, as the tax valuation allowance reversal and a much lower loan loss provision offset a decrease in net interest income.
“Activities in the fourth quarter represented the culmination of several years of effort to restructure and reposition the Company for the future,” said Chief Executive Officer Curt Hecker. “The repayment of our Capital Purchase Program (TARP) funds, reversal of our deferred tax asset valuation allowance, sale of our last large OREO, and continued reduction in classified assets all represent important activities that signal the end of many past challenges,” he added. “We believe the Company is now positioned for success in a different banking environment, where changing customer patterns, rapid technological advances, and stiff competition are creating industry consolidation and customer disruption. With our strong, local deposit franchise and flexible capital base, we’re creating a Company that is opportunistic and adaptable to rapidly changing conditions, but is prudent in its management of key risks, particularly credit and interest rate risk.”