Item 8.01. Other Information.

On December 6, 2012, Intermountain Community Bancorp (the "Company") transmitted payment of all deferred interest on its junior subordinated notes underlying its two trust preferred obligations in the aggregate amount of $1,892,995. The Company had previously accrued the interest on the trust preferred debt and an irrevocable deposit has been made to the trustees, which will be held by the trustees until their next regularly scheduled payment dates of December 25, 2012 and January 7, 2013, respectively.

On December 7, 2012, the Company transmitted payment of all accumulated dividends on its Series A Fixed Rate Cumulative Perpetual Preferred Stock in the amount of $4,353,634. The Company issued the Preferred Stock to the U.S. Treasury Department under the TARP Capital Purchase Program in December, 2008. The dividend on the TARP Preferred Stock had also been previously accrued and the Company has paid the amount due on December 7, 2012.

Going forward, the Company plans to resume paying interest on the two trust preferred obligations and to resume the regular quarterly dividend payments on the Preferred Stock.

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