Pursuant to the agreement, the bank will submit plans to reduce classified loans and non-performing assets and improve management oversight of the bank.
Gavin Gee, director of the Idaho Department of Finance, said: “We are pleased that the bank has already proactively responded to many of the issues raised in the agreement and we will be working closely with the board of directors and management going forward.”
Jim Latta, president and CEO of the Idaho Bancorp, said: “The harsh economic times have affected many local businesses and local residents. Consequently the bank’s performance has been directly affected and we welcome the help and assistance of the State of Idaho and the Federal Reserve.
“The bank was considered to be well capitalized on December 31, 2009, and we continue to work diligently to carefully manage our expenses, improve non-performing loans and make certain our customers continue to receive top quality service.”
Mr Latta concurred that many of the actions and practices outlined in the agreement have already been implemented. Given the bank’s financial performance over the last several quarters, management and the board of directors are pleased that the strong ongoing working relationships with the bank’s regulatory agencies are reflected in the agreement.
