Idaho Independent Bank, of Coeur d'Alene, has reported a second-quarter net loss of $1.5 million, or 23 cents a share, compared with a net loss of $195,000, or 3 cents a share, in the year-earlier quarter.

For the six months ended June 30, the bank says it lost $1.4 million, or 21 cents a share, compared with a net loss of $3.2 million, or 51 cents a share, in the first six months of 2009.

As of June 30, Idaho Independent Bank had total assets of $496.9 million, down from $537.3 million a year earlier. Its total loans had plunged—by 24 percent—to $333 million, from $439.8 million as of June 30, 2009. Total deposits and customer repurchase agreements stood at $420 million, down from $446.5 million a year earlier.

"The bank is making solid progress in reducing concentrations in land and land development loans and is proactively working through its problem credits," Chairman and CEO Jack Gustavel says. "At the same time, IIB has managed to improve its capital position over the past two years."

The bank's total risk-based capital ratio improved to 16.7 percent as of June 30, up from 14.5 percent a year earlier, he says. The regulatory threshold for a "well-capitalized" institution is 10 percent.

The bank's nonperforming assets totaled $51.5 million, or 10.4 percent of total assets, as of June 30, up from $31.2 million, or 5.8 percent of total assets, a year earlier.

The institution, a state-chartered commercial bank, was established in Coeur d'Alene in 1993 and operates branches in Hayden, Boise, Meridian, Eagle, Star, Nampa, Caldwell, Mountain Home, and Sun Valley-Ketchum. It has about 200 employees.