Idaho Bancorp Reports Record Results for 2007

BOISE, ID, Jan 15 (MARKET WIRE) --
Today Idaho Bancorp (OTCBB: IDBC) reported record net income for 2007 of
$1,441,000, a 5% increase over the $1,370,000 reported in the same period of
2006.
Diluted earnings per share of $.78 compared favorably to the $.75 per share
reported in the prior year.

The most significant factor driving the year-to-year earnings improvement
was a 5%
increase in net interest income, a result of a 15% growth in the average loan
portfolio and an increase of 27% in other non-interest income. This earnings
improvement was achieved despite the fact that the bank incurred its first
annual net loan loss in four years. Net loan charge-offs for the year were
$106,000 and nonperforming loans represent .48% of loans at December 31, 2007.

Net interest margin decreased from 4.44% in 2006 to 4.24% in 2007 due to
increasing cost of funds and continued pressure on loan rates due to intense
market competition.

Net income for the fourth quarter of 2007 was $381,000, a 3% decrease from
the
$392,000 reported in the fourth quarter of 2006. Net interest margin
compression and significant softening of the residential real estate
sectorin the Treasure Valley adversely impacted the rate of earnings growth
relative
to the same period last year. Earnings were also impacted by tax expense
incurred for early surrender of certain bank owned life insurance policies.
Quarterly diluted earnings per share were $.21 compared to $.21 per share in
the same quarter last year.

The allowance for loan losses was 1.38% of total loans on December 31, 2007.

Book value per share at December 31, 2007 was $9.61, an increase of 10% from
the December 31, 2006 level.

"Overall I am pleased with our Bank's 2007 financial results," said Mike
Johnston, President and CEO. "In an intensely competitive marketplace marked by
very
soft residential real estate development and sales we still generated
double-digit growth in our average loan and deposit totals over 2006. We did
see compression in our net interest margin driven primarily by interest expense
on
the funding side, and we expect further compression in 2008 due to past and
expected
future rate cuts by the Federal Open Market Committee. Looking forward, 2008
will be another challenging year for the entire banking industry, but I
believe our Company is well positioned to continue delivering solid results
for our shareholders."

Idaho Bancorp is the holding company of Idaho Banking Company. Idaho
Banking
Company, a state-chartered commercial bank and member of the Federal Reserve,
was organized in 1996 and operates four branch offices, and a construction &
mortgage home loan center. The Bank serves clients throughout southwestern
Idaho.

Idaho Bancorp and Subsidiary
Consolidated Financial Highlights (unaudited)
(Dollars in thousands, except per share)

For the year ended December 31: 2007 2006 $ Change % Change
--------- --------- --------- ---------
Net interest income $ 9,080 $ 8,687 $ 393 5%
Provision for loan losses 310 360 (50) -14%
Mortgage banking income 715 965 (250) -26%
Other noninterest income 625 492 133 27%
Noninterest expense 7,860 7,779 81 1%
Net income before taxes 2,250 2,005 245 12%
Income taxes 809(1) 635 174 27%
Net income 1,441 1,370 71 5%

Earnings per share
Basic 0.79 0.77 0.02 3%
Diluted 0.78 0.75 0.03 4%

At December 31: 2007 2006 $ Change % Change
--------- --------- --------- ---------
Loans $ 190,366 $ 171,188 $ 19,178 11%
Allowance for loan losses 2,623 2,419 204 8%
Assets 234,502 219,941 14,561 7%
Deposits 189,226 181,589 7,637 4%
Shareholders' equity 17,438 15,769 1,669 11%
Nonperforming loans 911 0 911 100%
Other real estate owned 0 0 0 N/A

Book value per share 9.61 8.73 0.88 10%
Shares of common stock
outstanding 1,814,222 1,805,772 8,450 0%

Allowance to loan ratio 1.38% 1.41%
Allowance to nonperforming
loans 288% N/A
Nonperforming loans to
total loans 0.48% 0.00%

Averages for year ended
December 31: 2007 2006 $ Change % Change
--------- --------- --------- ---------
Loans $ 181,719 $ 158,680 $ 23,039 15%
Earning assets 217,553 198,808 18,745 9%
Assets 229,412 210,535 18,877 9%
Deposits 186,789 169,613 17,176 10%
Shareholders' equity 16,779 15,019 1,760 12%

For the year ended December 31:
Return on average assets 0.63% 0.65%
Return on average equity 8.59% 9.12%
Average loans to deposits 97.29% 93.55%
Net interest margin - tax
equivalent 4.24% 4.44%
Net loan charge-offs
(recoveries) 106 (44)
Net charge-offs
(recoveries) to loans 0.06% -0.03%

(1) Additional tax expense incurred for early surrender of certain bank
owned life insurance policies.

Idaho Bancorp and Subsidiary
Quarterly Consolidated Financial Highlights (unaudited)
(Dollars in thousands, except per share)

2007 Q4 2007 Q3 2007 Q2 2007 Q1 2006 Q4
------- ------- ------- ------- -------
Net interest income $ 2,325 $ 2,280 $ 2,277 $ 2,198 $ 2,297
Provision for loan losses 125 145 30 10 0
Mortgage banking income 197 185 136 197 233
Other noninterest income 217 145 131 133 130
Noninterest expense 1,955 1,986 1,995 1,925 2,077
Net income before taxes 659 479 519 593 583
Income taxes 278(1) 157 174 200 191
Net income 381 322 345 393 392

Earnings per share
Basic 0.21 0.18 0.19 0.22 0.22
Diluted 0.21 0.17 0.19 0.21 0.21

Average loans 194,381 182,808 177,699 171,723 168,428
Average earning assets 227,257 220,128 216,409 206,152 210,018
Average assets 238,798 232,011 228,472 218,140 221,942
Average deposits 191,565 189,402 188,822 176,722 182,953
Average shareholders'
equity 17,439 16,989 16,632 16,197 15,714

Return on average assets 0.63% 0.55% 0.61% 0.73% 0.70%
Return on average equity 8.67% 7.52% 8.32% 9.84% 9.90%
Average loans to deposits 101.47% 96.52% 94.11% 97.17% 92.06%
Net interest margin - tax
equivalent 4.13% 4.18% 4.28% 4.39% 4.40%

Nonperforming loans -
period end $ 911 $ - $ - $ - $ -
Other real estate owned -
period end - -(2) - - -
Loans - period end 190,366 187,828 177,890 175,100 171,188
Allowance for loan losses -
period end 2,623 2,589 2,456 2,435 2,419
Net charge-offs (recoveries)
- quarterly 91 12 9 (6) (6)

Allowance to loans 1.38% 1.38% 1.38% 1.39% 1.41%
Allowance to nonperforming
loans 288% N/A N/A N/A N/A
Nonperforming loans to total
loans 0.48% 0.00% 0.00% 0.00% 0.00%
Net charge-offs to loans -
annualized 0.19% 0.03% 0.02% -0.01% -0.01%

(1) Additional tax expense incurred for early surrender of certain bank
owned life insurance policies.
(2) Represents correction to third quarter press release. Previous amount
reported of $524,000, which represented property originally purchased
and owned by the bank, was classified as fixed assets for call report
purposes.

Contacts:

Michael K. Johnston
President and CEO
208-472-4702

Mary E. Brimson
SVP Shareholder Relations
208-472-4705

Wendi L. Stalder
EVP and CFO
208-947-1873

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