NOTICE OF BANK MERGER

| February 15, 2005 8:00 PM

NOTICE IS HEREBY GIVEN that application has been made to the Federal Deposit Insurance Corporation for consent to merge Intermountain Savings Bank of Washington (In Organization) 200 N. Mullan Drive, Suite 124, Spokane Valley, Washington 99206, with and into Panhandle State Bank, 231 N. Third Avenue, Sandpoint, Idaho 83864. Upon consummation of the merger, the current office of Intermountain Savings Bank of Washington (In Organization) will become a branch office of Panhandle State Bank.

Any person wishing to comment on this application may file his or her comments in writing with the regional director (DOS) of the Federal Deposit Insurance Corporation at its regional office, 25 Ecker Street, Suite 2300, San Francisco, CA 94105, not later than March 7, 2005. The nonconfidential portions of the application are on file in the regional office and are available for public inspection during regular business hours. Photocopies of the nonconfidential portion of the application file will be made available upon request.

This notice published pursuant to Section 303.65 of the Rules and Regulations of Federal Deposit Insurance Corporation.

Legal 5834

February 5, 16, Mach 2, 2005