Idaho First Bank Enters Into Agreements to Sell up to $6.9 Million of Common Stock in Private Placements
September 23 2010 - 5:03PM
Marketwired
Today Idaho First Bank (OTCBB: IDFB) reported that it has entered
into Securities Purchase Agreements ("Agreements") with certain
directors, executive officers, and a founding director/shareholder
for the purchase of $1.2 million of the Bank's common stock. Along
with these written commitments the Bank is negotiating additional
Agreements of $1.0 million. The Bank expects these additional
Agreements will be finalized by September 27th. The private
placement of stock is expected to increase capital by a minimum of
$5.46 million in new capital at a price of $.42 per share. Upon
completion of the sale of common stock the Bank anticipates
achieving the capital level required under the Consent Order with
the State of Idaho's Department of Finance ("IDF") and the Federal
Deposit Insurance Corporation ("FDIC"). Management believes the
amount of stock purchased, and which is committed to be purchased
pursuant to the Agreements, will be sufficient to meet the terms of
the Supervisory Prompt Corrective Action Directive which was issued
by the FDIC on August 20, 2010.
"We are encouraged that 100 percent of our directors and
executive officers have chosen to re-invest additional capital into
the Bank. We also are pleased with the stock purchase by a founding
director/shareholder. These individuals have a high level of
commitment to McCall and our surrounding area," said Greg Lovell,
President and CEO of the Bank. The additional capital will be used
to support continuing operations and the lending and deposit
activity of the Bank. Jerry Jutting, McCall Area President and the
Bank's Chief Credit Officer, said, "We continue to seek
well-qualified loan applicants thereby earning a return for our
depositor's money: the funding source for our local loans. We help
our community's economics by smart investing of our local deposit
base." Dan Krahn, Bank Director, observed, "We are enthusiastic as
we look to the future. Our deposit base has grown during the year
as our depositors continue to have confidence in our Bank."
"We are pleased to see the Bank attract new capital and continue
to serve its community," stated Gavin Gee, Director, Idaho
Department of Finance. Director Gee further said, "As with all
Idaho state chartered banks, we will continue to closely monitor
the financial progress of the Bank and will work closely with its
directors and management as they continue the Bank's progress."
The Agreements are subject to several closing conditions,
including, among others; the completion of the private placements
and receipt of aggregate proceeds of at least $5.46 million by
September 30, 2010; and receipt of the necessary regulatory
approvals.
Idaho First Bank is the only locally chartered and headquartered
bank in McCall, Idaho. Founded in 2005 it operates a full-service
community focused bank in McCall and a loan production office in
Boise, Idaho.
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.
Contacts: Greg Lovell President and CEO 208-630-2001 Don Madsen
CFO 208-947-0430
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