Idaho Independent Bank losses increase

Bad loans continue to contribute to losses at Idaho Independent Bank.

Jack W. Gustavel, chairman and chief executive officer of IIB, (OTCBB:IIBK), announced IIB's consolidated unaudited financial results for the second quarter and six months ended June 30, 2010.

Gustavel reported that IIB's net loss for the quarter ended June 30, 2010, was $1.5 million, or a loss of 23 cents per diluted share, compared to a net loss of $195,000, or a loss of 3 cents per diluted share, for the same period a year ago. IIB's net loss for the six months ended June 30, 2010, was $1.4 million, or a loss of 21 cents per diluted share, compared to a net loss of $3.2 million, or a loss of 51 cents per diluted share, for the same six-month period a year ago. The prior period loss and loss per share amounts have been restated to reflect earlier revisions to amounts reported in 2009.

"The bank is making solid progress in reducing concentrations in land and land development loans and is proactively working through its problem credits. At the same time, IIB has managed to improve its capital position over the past two years," Gustavel said. "IIB's capital ratios continue to be well above the 10 percent threshold required to be considered "Well-Capitalized" under regulatory guidelines, with our Total Risk-Based Capital Ratio improving to 16.71 percent at June 30, 2010, compared to 15.39 percent at Dec. 31, 2009, and 14.45 percent at June 30, 2009."

IIB's total assets as of June 30, 2010, decreased $40.4 million, or 7.5 percent, to $496.9 million from $537.3 million at June 30, 2009. Total loans, including loans held-for-sale, at June 30, 2010, decreased $106.8 million, or 24.3 percent, to $333.0 million from $439.8 million at June 30, 2009. Total deposits and customer repurchase agreements decreased $26.5 million, or 5.9 percent, to $420.0 million at June 30, 2010, compared to $446.5 million at June 30, 2009.

As of June 30, 2010, IIB's allowance for loan losses account totaled $12.9 million, or 3.92 percent of total loans, excluding loans held-for-sale, compared to $18.0 million, or 4.13 percent of total loans, excluding loans held-for-sale, as of June 30, 2009. Non-performing assets totaled $51.5 million, or 10.36 percent of total assets at June 30, 2010, compared to $31.2 million, or 5.80 percent of total assets at June 30, 2009. Non-performing assets at June 30, 2010, included $48.3 million in non-performing loans and $3.2 million in other real estate owned.

Timberline Resources Corp.

begins Nevada exploration

Timberline Resources Corp. said Tuesday it has mobilized a surface drill and begun the diamond drilling segment of its exploration program at its recently-acquired South Eureka property in Nevada's Battle Mountain-Eureka gold trend. Timberline also expects to begin a complementary RC drill program there within the next several weeks.

The South Eureka property, including the Lookout Mountain project, was the primary exploration asset Timberline acquired in its acquisition of Staccato Gold Resources in June. A significant exploration plan will be undertaken at the South Eureka property with a focus on the Lookout Mountain project. Lookout Mountain is a typical sediment-hosted gold project with historic gold production and a previously-reported gold resource in excess of 800,000 ounces.

Timberline's exploration objective is to confirm the existing resource and apply economic parameters as part of a preliminary study to determine the economic feasibility of the project. Geologic mapping of the property will also continue in order to better understand ore controls, for targeting purposes and for geologic modeling.

Current drill data, preliminary metallurgical testing and current gold prices indicate a low-cost, low-grade oxide, heap-leachable gold mine could potentially be developed. Timberline's exploration program will include in-fill, metallurgical and geotechnical drilling to establish the continuity of gold mineralization, metallurgical characteristics and engineering parameters of the deposit. Metallurgical characteristics of collected ore samples will be independently tested and analyzed.

"We are excited to begin our 2010 exploration and drilling program at the South Eureka property," said Paul Dircksen, Timberline's executive chairman and vice president of exploration. "Our analysis during the Staccato acquisition due diligence indicated a sizable economic deposit, and our objective with this exploration program is to confirm those indications and further expand the resource. Our drilling will focus on the Lookout Mountain project area, with exploration drilling on other targets within the property."

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