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EXHIBIT 99.1
 
 FOR IMMEDIATE RELEASE
 CONTACT:
    
    Carolyn GayVice President, Financial Accounting OfficerIntermountain Community Bancorp(509)944-3888carolyng@panhandlebank.com
 INTERMOUNTAIN COMMUNITY BANCORP (IMCB) ANNOUNCES CONTINUED SECOND QUARTER EXPANSION AND
EARNINGS
 Net Income Increases 43.4% over first six months of prior year
 Sandpoint, Idaho, July 25, 2006
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Second Quarter 2006 Highlights
 §
    
    Net income for the quarter ended June 30, 2006 increased to $1.8 million, a 16.8%
increase compared to second quarter 2005, despite a $983,000 pre-tax loss taken on sale
of securities during the quarter.§
    
    Net income for the first six months of 2006 increased 43.4% to $4.4 million compared
to the same period last year§
    
    Net interest income after loan loss provision for the six months ended June 30, 2006
increased to $9.5 million, an increase of 53.4% compared to the same period last year§
    
    Total assets increased 15.8% to $784.9 million compared to the same period last
year, as loan balances increased 23.0%§
    
    Book value per share reached $9.66, an increase of 16.5% compared to the quarter
ended June 30, 2005, driven by strong earnings growth and the completion a $12.0
million common stock offering in December 2005§
    
    Total equity increased 46.7% to $70.6 million compared to the same period in the
prior year§
    
    Intermountain distributed a 10% stock dividend effective May 15, 2006§
    
    Intermountain opened a new branch in downtown Spokane staffed with market-leading
private and business banking talent
 Key Financial Results (dollars in thousands, except per share data):
 Balance Sheet
    
    June 30, 2006
    
    June 30, 2005
    

$ Change
    
    % ChangeLoans Receivable, net
    
    $
    610,690
    
    
    $
    496,332
    
    
    $
    114,358
    
    
    
    23.0
    %Allowance for Loan Loss
    
    $
    9,124
    
    
    
    8,087
    
    
    $
    1,037
    
    
    
    12.9
    %Total Assets
    
    $
    784,857
    
    
    $
    677,549
    
    
    $
    107,308
    
    
    
    15.8
    %Total Deposits
    
    $
    640,876
    
    
    $
    539,935
    
    
    $
    100,941
    
    
    
    18.7
    %
 Three Months Ended June 30,
    
    Six Months Ended June 30,Income Statement
    
    2006
    
    2005
    
    2006
    
    2005Net Income
    
    $
    1,839
    
    
    $
    1,574
    
    
    $
    4,401
    
    
    $
    3,069Annualized Return on Assets
    
    
    0.96
    %
    
    
    0.98
    %
    
    
    1.18
    %
    
    
    0.98
    %Annualized Return on Equity
    
    
    10.6
    %
    
    
    13.5
    %
    
    
    13.1
    %
    
    
    13.4
    %Basic Earnings Per Share
    
    $
    0.25
    
    
    $
    0.25
    
    
    $
    0.61
    
    
    $
    0.49Diluted Earnings Per Share
    
    $
    0.24
    
    
    $
    0.23
    
    
    $
    0.57
    
    
    $
    0.45
 Financial Summary:
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th
 Company Activities:
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About Intermountain Community Bancorp
  www.intermountainbank.com
 This news release contains forward-looking statements within the Private Securities Litigation
Reform Act of 1995. Such forward looking statement may include but are not limited to statements
about the Companys plans, objectives, expectations and intentions and other statements contained
in this report that are not historical facts. These forward looking statements are inherently
subject to significant business, economic and competitive uncertainties and contingencies, many of
which are beyond the Companys control. Actual results may differ materially from the results
discussed in these forward-looking statements because of numerous possible risks and uncertainties.
These include but are not limited to: the possibility of adverse economic developments that may,
among other things, increase default and delinquency risks in the Companys loan portfolio; shifts
in interest rates that may result in lower interest rate margins; shifts in the demand for the
Companys loan and other products; lower-than-expected revenue or cost savings in connection with
acquisitions; changes in accounting policies; changes in the monetary and fiscal policies of the
federal government; and changes in laws, regulations and the competitive environment.
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