Integrated Financial Holdings, Inc. Fourth Quarter 2022 Financial Results

Rhea-AI Summary

Integrated Financial Holdings (OTCQX: IFHI) reported its financial results for Q4 2022 and the full year. Q4 net income reached $2.4 million ($1.04 per diluted share), a rise from $1.3 million ($0.57 per diluted share) in Q4 2021. Year-to-date, however, the company faced a net loss of $199,000 versus a profit of $12.7 million in 2021. Net interest income for Q4 was $5.9 million, up from $4.1 million the previous year, while full-year net interest income climbed to $22.0 million. Total assets decreased to $447.9 million, with a notable decline in total deposits.

The company's return on assets was 2.15% in Q4, down from 1.14% a year prior.

Positive

• Q4 net income increased to $2.4 million from $1.3 million in 2021.
• Net interest income rose to $5.9 million in Q4 2022 from $4.1 million in Q4 2021.
• Return on average assets improved to 2.15% in Q4 2022.

Negative

• Year-to-date net loss of $199,000 compared to a profit of $12.7 million in 2021.
• Total assets decreased by $5.1 million or 1% year-over-year.
• Total deposits fell by $35.0 million or 10% year-over-year.
• Book value per common share dropped from $40.35 to $38.69.

RALEIGH, N.C., Feb. 07, 2023 (GLOBE NEWSWIRE) -- Integrated Financial Holdings, Inc. (OTCQX: IFHI) (the “Company” or “IFHI”), the financial holding company for West Town Bank & Trust (the “Bank”), released its financial results for the three months and year ended December 31, 2022. Highlights from the 2022 fourth quarter and year-to-date results include the following:

• Fourth quarter net income of $2.4 million or $1.04 per diluted share, compared to fourth quarter 2021 net income of $1.3 million or $0.57 per diluted share. Year-to-date net loss of $199,000 or $0.09 per diluted share compared to $12.7 million in net income or $5.71 per diluted share in the prior year.
• Net interest income of $5.9 million for the fourth quarter of 2022, compared to $4.1 million for the same period in 2021. For the year, net interest income was $22.0 million compared to $16.3 million for the same twelve-month period in 2021.
• Return on average assets of 2.15% and -0.05% for the three and twelve-month periods ending December 31, 2022 compared to 1.14% and 2.98%, respectively for the same periods in 2021.
• Return on average tangible common equity (a non-GAAP financial measure) of 14.23% and -0.29% for the three and twelve-month periods ending December 31, 2022 compared to 7.57% and 20.14%, respectively for the same periods in 2021.

Marc McConnell, Chairman, President and CEO of the Company said, “We believe our positive fourth quarter performance indicates that we are well positioned to continue refining our strategic initiatives while preparing for the upcoming year.   Our earnings were strong, we are continuing to see net interest margin increase as a result of Fed rate increases, and credit quality ratios have improved across the board. With more than $500 million in renewable energy sector loans currently in the pipeline, we remain focused on maintaining our stronghold in government-guaranteed lending while also streamlining our organization in ways intended to reduce non-interest expense in our less profitable business lines.”

BALANCE SHEET
On December 31, 2022, the Company’s total assets were $447.9 million, net loans held for investment were $294.1 million, loans held for sale (“HFS”) were $34.3 million, total deposits were $313.1 million and total shareholders’ equity attributable to IFHI was $87.5 million. Compared with December 31, 2021, total assets decreased $5.1 million or 1%, net loans held for investment increased $40.0 million or 16%, HFS loans increased $6.4 million or 23%, total deposits decreased $35.0 million or 10%, and total shareholders’ equity attributable to IFHI decreased $1.0 million or 1%. Cash and cash equivalents increased slightly from the prior quarter but have decreased since the prior year end as the Company has redeployed over $46.3 million in cash into higher yielding loans. The Bank has continued to see growth in loans held for investment primarily as a result of activity in the Government Guaranteed Lending (“GGL”) type loans. At $34.3 million in volume, HFS loans at December 31, 2022 represents potential, significant future GGL revenues as those loans are sold in the market and the associated premiums are recognized. Noninterest bearing deposits remained approximately static from the prior quarter at $106.3 million but are down $8.1 million since the prior year-end, in part, as a result of some ongoing merger and acquisition activity in one of the targeted industries that the Company banks.   The decrease in total shareholders’ equity since year-end 2021 was primarily associated with a decline in the market value of the available for sale investment portfolio. The accumulated other comprehensive loss component (“AOCI”) of equity related to the change in market pricing for the available-for-sale investment portfolio increased from a loss of $99,000 at December 31, 2021 to a loss of $2.3 million at December 31, 2022 as a result of significant changes in market interest rates.

CAPITAL LEVELS
At December 31, 2022, the regulatory capital ratios of West Town Bank & Trust exceeded the minimum thresholds established for well-capitalized banks under applicable banking regulations.

	"Well Capitalized" Minimum	Basel III Fully Phased-In	West Town Bank & Trust
Tier 1 common equity ratio	6.50%	7.00%	12.47%
Tier 1 risk-based capital ratio	8.00%	8.50%	12.47%
Total risk-based capital ratio	10.00%	10.50%	13.73%
Tier 1 leverage ratio	5.00%	4.00%	11.58%

Primarily as a result of the increased AOCI loss, the Company’s book value per common share decreased from $40.35 as of December 31, 2021, to $38.69 at December 31, 2022. The Company’s tangible book value per common share (a non-GAAP financial measure) also decreased from $31.44 as of December 31, 2021, to $30.36 at December 31, 2022, primarily as a result of the AOCI loss.

ASSET QUALITY
The Company’s nonperforming assets to total assets ratio decreased from 1.65% at December 31, 2021, to 1.04% at December 31, 2022, as management continued to aggressively work to reduce its special assets portfolio. Nonaccrual loans at December 31, 2022 decreased $2.3 million or 34% as compared to December 31, 2021. The Bank held $101,000 in foreclosed assets as of December 31, 2022.

The Company recorded a negative provision for loan losses of $150,000 in the fourth quarter of 2022 but had $810,000 in net provision for loan loss additions during the twelve-month period ending December 31, 2022 as compared to provisions of $775,000 and $1,974,000 for the same periods in 2021. The negative provision in the three months ended December 31, 2022 reflected the impact of continued credit improvements. The Company recorded $149,000 in net recoveries during the fourth quarter of 2022 compared to $1.0 million in net charge-offs for the same period in 2021. Management continues to believe it is making progress in improving overall asset quality. Set forth in the table below is certain asset quality information as of the dates indicated:

(Dollars in thousands)	12/31/22			9/30/22			6/30/22			3/31/22			12/31/21
Nonaccrual loans	$	4,552		$	4,612		$	4,656		$	6,558		$	6,848
Foreclosed assets		101			-			-			-			618
90 days past due and still accruing		-			-			-			-			-
Total nonperforming assets	$	4,653		$	4,612		$	4,656		$	6,558		$	7,466
Net charge-offs	$	(149	)	$	(29	)	$	(279	)	$	105		$	1,038
Annualized net charge-offs (recoveries) to total
average portfolio loans		-0.20	%		-0.04	%		-0.43	%		0.16	%		1.65	%
Ratio of total nonperforming assets to total assets		1.04	%		1.05	%		1.07	%		1.52	%		1.65	%
Ratio of total nonperforming loans to total loans, net
of allowance		1.55	%		1.60	%		1.79	%		2.56	%		2.70	%
Ratio of total allowance for loan losses to total loans		2.23	%		2.27	%		2.39	%		2.14	%		2.14	%

NET INTEREST INCOME AND MARGIN
Net interest income for the three months ended December 31, 2022, increased $1.8 million or 43% in comparison to the fourth quarter of 2021 as loan yields increased year over year from 6.53% to 7.69%. The increase in yield from the prior year reflected the impact of 425 basis points of rate increases by the Federal Open Market Committee (“FOMC”) since the beginning of 2022 in response to current economic conditions as well as a change in loan mix. Overall cost of funds increased from 0.65% in the fourth quarter of 2021 to 0.98% for the same period in 2022, as average retail certificate of deposit (“CD”) rates trended up and new CDs were originated at a higher market rate. Net interest margin increased from 4.27% during the three months ended December 31, 2021, to 6.35% for the same period in 2022. The increase in margin was also driven by the increase in loan yield resulting from the FOMC actions.

Net interest income for the twelve months ended December 31, 2022, increased $5.6 million or 34% in comparison to the same period of 2021 as loan yields increased year over year from 6.53% to 7.47% primarily as a result of the FOMC rate increases during the period.

	Three Months Ended											Year-To-Date
(Dollars in thousands)	12/31/22		9/30/22		6/30/22		3/31/22		12/31/21			12/31/22		12/31/21
Average balances:
Loans	$	331,508	$	312,475	$	319,115	$	294,502	$	277,510		$	321,033	$	282,843
Available-for-sale securities		17,446		19,096		21,879		21,088		20,367			19,473		30,274
Other interest-bearing balances		20,367		30,378		33,328		56,359		86,261			27,813		65,617
Total interest-earning assets		369,321		361,949		374,322		371,949		384,138			368,319		378,734
Total assets		436,695		428,983		438,732		437,402		442,139			434,803		426,869
Noninterest-bearing deposits		113,851		94,013		85,042		98,546		104,472			97,635		93,681
Interest-bearing liabilities:
Interest-bearing deposits		212,069		233,464		244,363		235,092		237,847			229,965		235,636
Borrowings		8,913		2,174		8,626		6,306		5,272			6,571		4,914
Total interest-bearing liabilities		220,982		235,638		252,989		241,398		243,119			236,536		240,550
Common shareholders' equity		84,831		88,043		90,721		90,441		86,549			87,865		83,114
Tangible common equity (1)		65,879		68,924		71,437		70,939		66,877			68,747		63,203
Interest income/expense:
Loans	$	6,422	$	5,943	$	5,491	$	5,623	$	4,571		$	23,479	$	18,458
Available-for-sale securities		64		105		104		89		77			362		268
Interest-bearing balances and other		257		169		89		42		53			557		188
Total interest income		6,743		6,217		5,684		5,754		4,701			24,398		18,914
Deposits		735		532		523		522		566			2,312		2,580
Borrowings		93		13		15		9		1			130		1
Total interest expense		828		545		538		531		567			2,442		2,581
Net interest income	$	5,915	$	5,672	$	5,146	$	5,223	$	4,134		$	21,956	$	16,333
(1) See reconciliation of non-GAAP financial measures.

	Three Months Ended											Year-To-Date
	12/31/22		9/30/22		6/30/22		3/31/22		12/31/21			12/31/22		12/31/21
Average yields and costs:
Loans	7.69	%	7.55	%	6.90	%	7.74	%	6.53	%		7.47	%	6.53	%
Available-for-sale securities	1.47	%	2.20	%	1.90	%	1.69	%	1.51	%		1.82	%	0.89	%
Interest-bearing balances and other	5.01	%	2.21	%	1.07	%	0.30	%	0.24	%		1.59	%	0.29	%
Total interest-earning assets	7.24	%	6.81	%	6.09	%	6.27	%	4.86	%		6.61	%	4.99	%
Interest-bearing deposits	1.38	%	0.90	%	0.86	%	0.90	%	0.94	%		1.00	%	1.09	%
Borrowings	4.14	%	2.37	%	0.70	%	0.58	%	0.08	%		2.00	%	0.02	%
Total interest-bearing liabilities	1.49	%	0.92	%	0.85	%	0.89	%	0.93	%		1.03	%	1.07	%
Cost of funds	0.98	%	0.66	%	0.64	%	0.63	%	0.65	%		0.73	%	0.77	%
Net interest margin	6.35	%	6.22	%	5.51	%	5.69	%	4.27	%		5.94	%	4.31	%

NONINTEREST INCOME
Noninterest income for the three months ended December 31, 2022, was $5.9 million, an increase of $887,000 or 18% as compared to the three months ended December 31, 2021. Specific items to note include:

• Windsor Advantage, LLC (“Windsor”), a subsidiary of the Company which offers an SBA and USDA loan servicing platform, had processing and servicing revenue totaling $2.8 million, a decrease of $14,000 or less than 1% as compared to the $2.9 million in income earned during the same prior-year period.
• Mortgage revenue totaled $99,000, a decrease of $991,000 or 91% as compared to the fourth quarter of 2021. Due to the nationwide slowdown in refinancing volume and the impact of a doubling of long-term mortgage rates year-over-year, the Company has begun to deemphasize its mortgage operations in the fourth quarter of 2022.
• Government Guaranteed Lending revenue was $2.1 million in the fourth quarter of 2022, a decrease of $121,000 or 5% in comparison to the $2.2 million of revenues for the same period in 2021.  
• Other noninterest income was $549,000 in the fourth quarter of 2022 compared to loss of $1.5 million in the same period in 2021. The fourth quarter of 2021 reflected the impact of a $2.1 million pre-tax loss associated with a tax credit taken during that period. The tax benefit of the losses plus the tax credit itself netted a total after-tax positive impact to the Company of about $1.2 million. In addition, income associated with the Company’s minority investment, West Town Payments (“WTP”) increased from $79,000 in the fourth quarter of 2021 to $1.2 million for the same period in 2022.

Noninterest income for the twelve months ended December 31, 2022, was $28.3 million compared to $41.1 million for the same period in 2021, a decrease of $12.8 million or 31%. The decrease is primarily due to a decrease of $13.8 million in loan processing and servicing revenue driven by the decrease in revenue during the period related to the Paycheck Protection Program (“PPP”). Mortgage revenues during the period decreased $4.3 million due to a general slowdown in the refinancing market as a result of the current rate environment. These two declines were partially offset by an increase in other noninterest income of $5.2 million primarily associated with a gain in the market value of marketable equity securities.

NONINTEREST EXPENSE
Noninterest expense for the fourth quarter of 2022 was $9.8 million, a decrease of $499,000 or 5%, from $10.3 million for the fourth quarter of 2021. This change was primarily due to decreased loan-related expenses, which tend to fluctuate unexpectedly, but was also affected by a $92,000 recovery of expenses reimbursed by the SBA.   Also contributing to the year-over-year decrease in noninterest expense was a decrease in software expense, which decreased from $830,000 in the fourth quarter of 2021 to $467,000 during the same period in 2022. This $363,000 decrease was primarily due to a decline in software expenses associated with processing and servicing PPP loans at Windsor in the fourth quarter of 2021. Software costs at Windsor decreased from $413,000 in the fourth quarter of 2021 to $164,000 in the same period in 2022. Additionally, advertising costs dropped from $453,000 in the fourth quarter of 2021 to $211,000 in the same period of 2022, primarily tied to a decline in fee generation costs at Windsor.   These increases were partially offset by merger-related expenses of $192,000 associated with the Company’s proposed merger with MVB Financial Corp. (“MVB”) announced during the third quarter of 2022, as well as a $479,000 increase in other operating expenses caused in part by commissions paid to outside parties for fee generation for WTP resulting in the related $1.2 million increase in revenues.

Noninterest expense for the twelve months ended December 31, 2022, was $50.8 million compared to $42.5 million for the same period in 2021, an increase of $8.2 million or 19%. The primary difference period over period was the $10.0 million litigation expense recognized in the third quarter of 2022.   

ABOUT INTEGRATED FINANCIAL HOLDINGS, INC.
Integrated Financial Holdings, Inc. is a financial holding company based in Raleigh, North Carolina. The Company is the holding company for West Town Bank & Trust, an Illinois state-chartered bank. West Town Bank & Trust provides banking services through its full-service office located in the greater Chicago area. The Company is also the parent company of Windsor Advantage, LLC, a loan service provider that offers community banks and credit unions with a comprehensive outsourced U.S. Small Business Association (“SBA”) 7(a) and U.S. Department of Agriculture (“USDA”) lending platform. The Company is registered with and supervised by the Federal Reserve. West Town Bank & Trust’s primary regulators are the Illinois Department of Financial and Professional Regulation and the FDIC.

For more information, visit https://ifhinc.com/.

Important Note Regarding Forward-Looking Statements
This release contains certain forward-looking statements with respect to the financial condition, results of operations, and business of the Company. These forward-looking statements involve risks and uncertainties and are based on the beliefs and assumptions of the management of the Company and on the information available to management at the time this release was prepared. These statements can be identified by the use of words such as "expect," "anticipate," "estimate," "believe," variations of these words, and other similar expressions. Readers should not place undue reliance on forward-looking statements as a number of important factors could cause actual results to differ materially from those in the forward-looking statements. Factors that could cause a difference include, among others: changes in the national and local economies or market conditions; changes in interest rates, deposit flows, loan demand, and asset quality, including real estate and other collateral values; changes in Small Business Administration rules, regulations, or loan products, including the section 7(a) program; changes in other government guaranteed loan programs or our ability to participate in such programs; changes in tax law, including the impact of such changes on our tax assets and liabilities; future governmental shutdowns that may impact revenues associated with our lending and other operations that are dependent on government guaranteed loan programs; changes in banking regulations and accounting principles, policies, or guidelines; the inability to realize cost savings or revenues or to implement integration plans and other consequences associated with the Company’s acquisition and divesture activities or the Company’s planned merger with MVB; the failure of our strategic investments or acquisitions to perform as anticipated and the impact of any impairments to our intangible assets, such as goodwill; the impact of our strategic initiatives, including our planned merger with MVB, on our ability to retain key employees; the possibility that the proposed merger with MVB will not close when expected or at all because required regulatory approvals are not received or other conditions to the closing are not satisfied on a timely basis or at all; the possibility that the anticipated benefits of the proposed merger with MVB will not be realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of the two companies or as a result of the strength of the economy and competitive factors in the areas where the Company and MVB do business; adverse results (including judgments, costs, fines, reputational harm, financial settlements and/or other negative effects) from current or future litigation, regulatory proceedings, investigations, or similar matters, or developments related thereto; and the impact of competition from traditional or new sources, including non-bank financial service providers, such as Fintechs. These, and other factors that may emerge, could cause decisions and actual results to differ materially from current expectations. The Company assumes no obligation to revise, update, or clarify forward-looking statements to reflect events or conditions after the date of this release.

Contact: Steve Crouse, 919-861-8018

Consolidated Balance Sheets
				Ending Balance
(In thousands, unaudited)				12/31/22			9/30/22			6/30/22			3/31/22			12/31/21
Assets
Cash and due from banks				$	7,553		$	6,272		$	4,700		$	3,900		$	3,803
Interest-bearing deposits					26,430			25,011			21,981			28,876			79,910
	Total cash and cash equivalents				33,983			31,283			26,681			32,776			83,713
Interest-bearing time deposits					999			1,249			1,499			1,746			1,746
Available-for-sale securities					17,712			17,460			19,038			20,386			20,659
Marketable equity securities					17,982			17,982			17,982			18,000			12,000
Loans held for sale					34,302			28,399			59,592			51,095			27,880
Loans held for investment					300,764			295,416			266,259			262,281			259,625
	Allowance for loan and lease losses				(6,709	)		(6,710	)		(6,361	)		(5,622	)		(5,547	)
		Loans held for investment, net			294,055			288,706			259,898			256,659			254,078
Premises and equipment, net					4,098			4,264			4,238			4,235			4,106
Foreclosed assets					101			-			-			-			618
Loan servicing assets					3,715			3,979			4,178			4,014			3,993
Bank-owned life insurance					5,357			5,330			5,304			5,271			5,246
Accrued interest receivable					2,997			2,485			2,139			1,886			1,373
Goodwill					13,161			13,161			13,161			13,161			13,161
Other intangible assets, net					5,682			5,848			6,014			6,180			6,400
Other assets					13,719			17,293			15,764			15,218			18,001
			Total assets	$	447,863		$	437,439		$	435,488		$	430,627		$	452,974
Liabilities and Shareholders' Equity
Liabilities
Deposits:
	Noninterest-bearing			$	106,255		$	106,272		$	83,544		$	92,499		$	114,313
	Interest-bearing				206,872			218,835			250,026			233,953			233,842
		Total deposits			313,127			325,107			333,570			326,452			348,155
Borrowings					30,000			5,000			-			5,000			7,500
Accrued interest payable					379			370			308			325			326
Other liabilities					17,600			23,557			9,939			8,320			9,212
	Total liabilities				361,106			354,034			343,817			340,097			365,193
Shareholders' equity:
Common stock, voting					2,239			2,239			2,227			2,213			2,176
Common stock, non-voting					22			22			22			22			22
Additional paid in capital					24,916			24,674			24,498			24,013			23,664
Retained earnings					62,611			60,248			67,781			66,372			62,810
Accumulated other comprehensive loss					(2,301	)		(2,866	)		(1,985	)		(1,296	)		(99	)
	Total IFH, Inc. shareholders' equity				87,487			84,317			92,543			91,324			88,573
Noncontrolling interest					(730	)		(912	)		(872	)		(794	)		(792	)
	Total shareholders' equity				86,757			83,405			91,671			90,530			87,781
			Total liabilities and shareholders' equity	$	447,863		$	437,439		$	435,488		$	430,627		$	452,974

Consolidated Statements of Income
(In thousands except per	Three Months Ended																Year-To-Date
share data; unaudited)	12/31/22			9/30/22			6/30/22			3/31/22			12/31/21				12/31/22			12/31/21
Interest income
Loans	$	6,422		$	5,943		$	5,491		$	5,623		$	4,571			$	23,479		$	18,458
Available-for-sale securities and other		321			274			193			131			130				919			456
Total interest income		6,743			6,217			5,684			5,754			4,701				24,398			18,914
Interest expense
Interest on deposits		735			532			523			522			566				2,312			2,580
Interest on borrowings		93			13			15			9			1				130			1
Total interest expense		828			545			538			531			567				2,442			2,581
Net interest income		5,915			5,672			5,146			5,223			4,134				21,956			16,333
Provision for loan losses		(150	)		320			460			180			775				810			1,947
Noninterest income
Loan processing and servicing
revenue		2,849			2,163			2,373			2,207			2,863				9,592			23,417
Mortgage		99			477			1,066			173			1,090				1,815			6,106
Government guaranteed lending		2,095			2,213			2,767			1,124			2,216				8,199			7,937
SBA documentation preparation fees		2			78			128			144			167				352			991
Service charges on deposits		240			182			118			104			85				644			243
Bank-owned life insurance		26			27			33			25			25				111			109
Other noninterest income (loss)		549			222			290			6,509			(1,473	)			7,570			2,325
Total noninterest income		5,860			5,362			6,775			10,286			4,973				28,283			41,128
Noninterest expense
Compensation		6,168			6,880			6,271			7,061			6,178				26,380			23,652
Occupancy and equipment		303			402			254			344			254				1,303			1,181
Loan and special asset expenses		57			969			491			638			483				2,155			2,252
Professional services		676			207			491			551			845				1,925			2,817
Data processing		272			263			271			249			267				1,055			899
Software		467			460			426			425			830				1,778			6,587
Communications		83			86			97			83			99				349			396
Advertising		211			252			321			214			453				998			1,429
Amortization of intangibles		169			170			170			170			170				679			698
Merger related expenses		192			561			-			-			-				753			-
Other operating expenses		1,236			10,683			846			631			754				13,396			2,636
Total noninterest expense		9,834			20,933			9,638			10,366			10,333				50,771			42,547
Income (loss) before income taxes		2,091			(10,219	)		1,823			4,963			(2,001	)			(1,342	)		12,967
Income tax expense (benefit)		(454	)		(2,646	)		492			1,403			(3,090	)			(1,205	)		867
Net income (loss)		2,545			(7,573	)		1,331			3,560			1,089				(137	)		12,100
Noncontrolling interest		182			(40	)		(78	)		(2	)		(187	)			62			(631	)
Net income (loss) attributable
to IFH, Inc.	$	2,363		$	(7,533	)	$	1,409		$	3,562		$	1,276			$	(199	)	$	12,731
Basic earnings (loss) per common share	$	1.08		$	(3.45	)	$	0.65		$	1.65		$	0.60			$	(0.09	)	$	5.91
Diluted earnings (loss) per common share	$	1.04		$	(3.45	)	$	0.63		$	1.59		$	0.57			$	(0.09	)	$	5.71
Weighted average common shares
outstanding		2,194			2,185			2,175			2,159			2,140				2,178			2,154
Diluted average common shares
outstanding		2,267			2,185			2,244			2,242			2,234				2,178			2,229

Performance Ratios
		Three Months Ended																Year-To-Date
		12/31/22			9/30/22			6/30/22			3/31/22			12/31/21				12/31/22			12/31/21
PER COMMON SHARE
	Basic earnings (loss) per common share	$	1.08		$	(3.45	)	$	0.65		$	1.65		$	0.60			$	(0.09	)	$	5.91
	Diluted earnings (loss) per common share		1.04			(3.45	)		0.63			1.59			0.57				(0.09	)		5.71
	Book value per common share		38.69			37.29			41.15			40.86			40.35				38.69			40.35
	Tangible book value per common share (2)		30.36			28.88			32.62			32.21			31.44				30.36			31.44
FINANCIAL RATIOS (ANNUALIZED)
	Return on average assets		2.15	%		-6.97	%		1.29	%		3.30	%		1.14	%			-0.05	%		2.98	%
	Return on average common shareholders'
	equity		11.05	%		-33.95	%		6.23	%		15.97	%		5.85	%			-0.22	%		15.32	%
	Return on average tangible common
	equity (2)		14.23	%		-43.36	%		7.91	%		20.36	%		7.57	%			-0.29	%		20.14	%
	Net interest margin		6.35	%		6.22	%		5.51	%		5.69	%		4.27	%			5.94	%		4.31	%
	Efficiency ratio (1)		83.5	%		189.7	%		80.8	%		66.8	%		113.5	%			101.1	%		74.0	%
	(1) Efficiency ratio is calculated by dividing noninterest expense less transaction-related costs by the sum of net interest
	income and noninterest income, less gains or losses on sale of securities.
	(2) See reconciliation of non-GAAP measures

Loan Concentrations

The top ten commercial loan concentrations as of December 31, 2022, were as follows:

			% of
			Commercial
(Dollars in millions)	Amount		Loans
Solar electric power generation	$	72.5	34	%
Power and communication line and related structures construction		48.2	23	%
Lessors of nonresidential buildings (except miniwarehouses)		16.6	8	%
Other activities related to real estate		10.5	5	%
Hotels (except casino hotels) and motels		7.4	4	%
Lessors of residential buildings and dwellings		6.0	3	%
Lessors of other real estate property		5.9	3	%
Other heavy and civil engineering construction		4.3	2	%
All other amusement and recreation industries		3.2	2	%
Marinas		2.8	1	%
	$	177.4	85	%

Reconciliation of Non-GAAP Measures

	12/31/22			9/30/22			6/30/22			3/31/22			12/31/21
	(Dollars in thousands except book value per share)
Tangible book value per common share
Total IFH, Inc. shareholders' equity	$	87,487		$	84,317		$	92,543		$	91,324		$	88,573
Less: Goodwill		13,161			13,161			13,161			13,161			13,161
Less Other intangible assets, net		5,682			5,848			6,014			6,180			6,400
Total tangible common equity	$	68,644		$	65,308		$	73,368		$	71,983		$	69,012
Ending common shares outstanding		2,261			2,261			2,249			2,235			2,198
Tangible book value per common share	$	30.36		$	28.88		$	32.62		$	32.21		$	31.44
	Three Months Ended																Year-To-Date
(Dollars in thousands)	12/31/22			9/30/22			6/30/22			3/31/22			12/31/21				12/31/22			12/31/21
Return on average tangible common equity
Average IFH, Inc. shareholders' equity	$	84,831		$	88,043		$	90,721		$	90,441		$	86,549			$	88,509		$	83,114
Less: Average goodwill		13,161			13,161			13,161			13,161			13,161				13,161			13,161
Less Average other intangible assets, net		5,791			5,958			6,123			6,341			6,511				6,053			6,750
Average tangible common equity	$	65,879		$	68,924		$	71,437		$	70,939		$	66,877			$	69,295		$	63,203
Net income (loss) attributable to IFH, Inc.	$	2,363		$	(7,533	)	$	1,409		$	3,562		$	1,276			$	(199	)	$	12,731
Return on average tangible common equity		14.23	%		-43.36	%		7.91	%		20.36	%		7.57	%			-0.29	%		20.14	%

FAQ

What were Integrated Financial Holdings' earnings for Q4 2022?

Integrated Financial Holdings reported a Q4 2022 net income of $2.4 million, or $1.04 per diluted share.

How did Integrated Financial Holdings perform in 2022 compared to 2021?

In 2022, IFHI experienced a year-to-date net loss of $199,000, contrasting with a net income of $12.7 million in the previous year.

What is the current state of IFHI's net interest income?

For Q4 2022, IFHI's net interest income was $5.9 million, up from $4.1 million in Q4 2021.

How did total assets change for IFHI in 2022?

Total assets for IFHI decreased by $5.1 million or 1%, totaling $447.9 million as of December 31, 2022.