FOR IMMEDIATE RELEASE
 CONTACT:
    
    Carolyn GayVice President, Risk Manager & Financial Accounting OfficerIntermountain Community Bancorp(509)944-3888carolyng@panhandlebank.com
 INTERMOUNTAIN COMMUNITY BANCORP (IMCB) ANNOUNCES RECORD ASSETS AND EARNINGS FOR 2007
 Sandpoint, Idaho, March 3, 2008




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2007 Highlights:
 §
    
    Net income for the year ended December 31, 2007 totaled $9.4 million, a 2.6% increase over the
previous year§
    
    Net interest income after loan loss provision for 2007 was $42.6 million, an increase of
6.8% compared to 2006§
    
    Total assets topped the $1 billion threshold increasing 14.0% over 2006§
    
    Loan balances increased by 13.9% over 2006§
    
    Deposit balances increased by 9.3% compared to December 31, 2006§
    
    Book value per share was $10.93, an increase of 13.7% over year-end 2006§
    
    Total equity increased 15.4% to $90.1 million compared to December 31, 2006§
    
    Fully diluted earnings per share for 2007 increased to $1.10, a 2.8% increase over the year ended
December 31, 2006§
    
    The Company now holds the top market share position in five of the eleven counties in which it
operates, based on deposit data from the Federal Deposit Insurance Corporation as of June 30,
2007§
    
    The Company relocated its Spokane Valley branch into a new building in August 2007 in a busy
and growing commercial area in east Spokane. It includes a full-service branch, a home loan
center and administrative offices§
    
    The Companys 94,000 square foot Sandpoint Center is scheduled for occupancy in mid-April 2008
 Financial
Summary:




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Key Financial Results:
 At December 31,(dollars in thousands,except per share data)
    
    ActualBalance Sheet
    
    2007
    
    2006
    
    Change
    
    % ChangeLoans Receivable, net
    
    $
    756,549
    
    
    $
    664,403
    
    
    $
    92,146
    
    
    
    13.9
    %Allowance for Loan Loss
    
    
    11,761
    
    
    
    9,834
    
    
    
    1,927
    
    
    
    19.6
    %Goodwill, net
    
    
    11,662
    
    
    
    11,662
    
    
    
    
    
    
    
    Other Intangible Assets, net
    
    
    723
    
    
    
    881
    
    
    
    (158
    )
    
    
    (17.9
    )%Total Assets
    
    
    1,048,659
    
    
    
    919,866
    
    
    
    128,793
    
    
    
    14.0
    %Total Deposits
    
    
    757,838
    
    
    
    693,686
    
    
    
    64,152
    
    
    
    9.3
    %Stockholders Equity
    
    
    90,119
    
    
    
    78,080
    
    
    
    12,039
    
    
    
    15.4
    %Book Value Per Share
    
    $
    10.93
    
    
    $
    9.61
    
    
    $
    1.32
    
    
    
    13.7
    %Shares Outstanding at end of
Period
    
    
    8,248,710
    
    
    
    8,121,203
    
    
    
    127,507
    
    
    
    1.6
    %




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Three Months Ended
    
    Twelve Months EndedDecember 31,
    
    December 31,Income Statement
    
    2007
    
    2006
    
    2007
    
    2006Total Interest Income
    
    $
    18,765
    
    
    $
    17,009
    
    
    $
    72,858
    
    
    $
    59,580Total Interest Expense
    
    
    6,926
    
    
    
    5,602
    
    
    
    26,337
    
    
    
    17,533Provision for Losses on Loans
    
    
    668
    
    
    
    572
    
    
    
    3,896
    
    
    
    2,148Net Interest Income After Provision
    
    
    11,171
    
    
    
    10,835
    
    
    
    42,625
    
    
    
    39,899Total Other Income
    
    
    3,376
    
    
    
    3,061
    
    
    
    13,199
    
    
    
    10,838Total Operating Expenses
    
    
    10,572
    
    
    
    10,146
    
    
    
    40,926
    
    
    
    35,960Income Before Taxes
    
    
    3,975
    
    
    
    3,750
    
    
    
    14,898
    
    
    
    14,777Income Tax Provision
    
    
    1,224
    
    
    
    1,474
    
    
    
    5,453
    
    
    
    5,575Net Income
    
    $
    2,751
    
    
    $
    2,276
    
    
    $
    9,445
    
    
    $
    9,202Basic Earnings Per Share
    
    $
    0.33
    
    
    $
    0.28
    
    
    $
    1.15
    
    
    $
    1.15Diluted Earnings Per Share
    
    $
    0.32
    
    
    $
    0.27
    
    
    $
    1.10
    
    
    $
    1.07Wtd-Avg Shares O/S Basic
    
    
    8,245,133
    
    
    
    8,094,757
    
    
    
    8,206,341
    
    
    
    8,035,401Wtd-Avg Shares O/S Fully Diluted
    
    
    8,582,943
    
    
    
    8,641,019
    
    
    
    8,604,737
    
    
    
    8,585,687Annualized Return on Assets
    
    
    1.04
    %
    
    
    1.00
    %
    
    
    0.96
    %
    
    
    1.13
    %Annualized Return on Equity
    
    
    12.4
    %
    
    
    11.8
    %
    
    
    11.3
    %
    
    
    12.9
    %Operating Efficiency Ratio
    
    
    69.5
    %
    
    
    70.1
    %
    
    
    68.5
    %
    
    
    68.0
    %Net Interest Spread
    
    
    4.94
    %
    
    
    5.43
    %
    
    
    5.15
    %
    
    
    5.59
    %Net Interest Margin
    
    
    4.97
    %
    
    
    5.51
    %
    
    
    5.21
    %
    
    
    5.66
    %
 Company
Activities:
   About
Intermountain Community Bancorp:




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www.intermountainbank.com.
 This news release contains forward-looking statements within the Private Securities Litigation
Reform Act of 1995. Such forward-looking statements 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; a continued decline in the housing
and related real estate markets; a tightening of available credit; shifts in interest rates that
may result in lower interest rate margins; shifts in the demand for the Companys loan and other
products; changes in accounting policies; changes in the monetary and fiscal policies of the
federal government; and changes in laws, regulations and the competitive environment.