First Bank of Idaho faces capital shortage 

First Bank of Idaho reports federal officials have set a deadline for the Ketchum-based bank to raise its capital levels, according to the Idaho Mountain Express.

The bank voluntarily accepted the cease-and-desist order from the Office of Thrift Supervision, an agency of the Department of the Treasury that regulates federal savings associations, according to a release. The agreement forestalls a potential order by the government to force the bank to merge with another bank or close its doors.

The order took effect April 6 but does not prevent the bank from operating. First Bank of Idaho CEO Everett Covington reassured customers they should not worry about their deposits.

“We are an FDIC-insured institution and not concerned about failure,” Covington told the Express.

First Bank of Idaho is locally owned with branches in Ketchum, Hailey and Bellevue, and also operates under the name First Bank of the Tetons in Jackson, Wyo., and Victor and Driggs. Covington said about 115 employees work in all its branches.

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