Integrated Financial Holdings, Inc. Fourth Quarter and Year-End 2021 Financial Results

Rhea-AI Summary

Integrated Financial Holdings (OTCQX: IFHI) reported a record annual net income of $12.7 million or $5.71 per diluted share for the year ended December 31, 2021, up from $8.9 million in 2020. Return on average assets rose to 2.98%, and return on average common equity improved to 15.32%. Despite a decrease in fourth quarter net income to $1.3 million, the company experienced loan growth and a 16% increase in total assets to $453 million. The company allocated $6 million for balance sheet growth, emphasizing a strategy of holding more loans for interest income.

Positive

• Annual net income rose to $12.7 million, up from $8.9 million in 2020.
• Return on average assets improved to 2.98% from 2.49% in 2020.
• Return on average common equity increased to 15.32% from 12.22% in 2020.
• Total assets increased by 16% to $453 million.
• Loan processing and servicing revenue increased by 25% year-over-year.

Negative

• Fourth quarter net income declined to $1.3 million from $1.7 million in Q4 2020.
• Decrease in return on average assets to 1.14% from 1.79% in Q4 2020.
• Provision for loan losses increased to $775,000 in Q4 2021 from $210,000 in Q4 2020.
• Noninterest income decreased by 18% to $5.0 million in Q4 2021.

RALEIGH, N.C., Feb. 07, 2022 (GLOBE NEWSWIRE) -- Integrated Financial Holdings, Inc. (OTCQX: IFHI) (the “Company” or “IFH”), the financial holding company for West Town Bank & Trust (“the Bank”), released its financial results for the three and twelve months ended December 31, 2021. Highlights include the following:

• Net income for the year ended December 31, 2021, of $12.7 million or $5.71 per diluted share compared to 2020 annual net income of $8.9 million or $4.01 per diluted share.
• Annual return on average assets of 2.98% compared to 2.49% for the year ended December 31, 2020.
• Return on average common equity for the year ended December 31, 2021, of 15.32% compared to 12.22% for the same period in 2020.
• Return on average tangible common equity (a non-GAAP financial measure) for the year ended December 31, 2021, of 20.14% compared to 17.08% for the fourth quarter of 2020.
• Fourth quarter net income of $1.3 million or $0.57 per diluted share compared to 2020 fourth quarter net income of $1.7 million or $0.78 per diluted share.  
• Provision for loan losses of $775,000 for the fourth quarter of 2021 compared to $210,000 for the same period in 2020.
• Return on average assets of 1.14%, compared to 1.79% for the fourth quarter of 2020.
• Return on average common equity of 5.85%, compared to 9.06% for the fourth quarter of 2020.
• Return on average tangible common equity (a non-GAAP financial measure) of 7.57%, compared to 12.38% for the fourth quarter of 2020.
• Loan processing and servicing revenue of $2.9 million, compared to $2.3 million for the fourth quarter of 2020.
• Government lending revenues of $2.2 million, compared to $1.8 million for the fourth quarter of 2020.
• Mortgage origination and sales revenue of $1.1 million compared to $1.4 million for the fourth quarter of 2020.
• Other noninterest income was a loss of $1.5 million compared to income of $491,000 for the fourth quarter of 2020. The loss was directly attributable to the pre-tax impact of a tax credit strategy executed during the quarter.
  

Eric Bergevin, President & CEO of IFH, stated, “The Company had a record year for earnings at $5.71 EPS or $12.7 million in total. Heightened earnings when coupled with loan growth and improved asset quality leave us well-positioned for continued balance sheet growth in 2022. The Bank experienced strong loan demand and started holding loans versus selling to leverage excess capital and liquidity caused by larger prepayments at the end of second quarter and into third quarter. Based on these prepayments, the “held for investment” portfolio decreased modestly while building the “held for sale” portfolio. The Company also invested an additional $6 million in the Bank to allow for further concentration management and balance sheet growth in loans “held for sale”, particularly in the construction and development loans for utility scale solar farms. This “originate and hold” strategy will result in lower than budgeted “gain on sale” income initially but should ultimately produce higher, recurring interest income that is more predictable. Windsor had a record-setting year with unprecedented loan processing and servicing growth due to a major uptick in overall lending activity through the SBA 7(a) Loan Program as the result of temporary program benefits enacted through the CARES Act. The Company also executed on a $2.9 million tax credit strategy resulting in a negative tax accrual in the fourth quarter, enhancing overall company earnings. In 2022, we will continue to focus on holding guaranteed portions of loans to grow the balance sheet and leverage our excess liquidity while also producing heightened levels of recurring interest income.”

BALANCE SHEET
On December 31, 2021, the Company’s total assets were $453.0 million, net loans held for investment were $254.1 million, loans held for sale were $27.9 million, total deposits were $348.2 million and total shareholders’ equity attributable to IFH was $88.6 million. Compared with December 31, 2020, total assets increased $63.8 million or 16%, net loans held for investment increased $768,000 or 0%, loans held for sale increased $1.6 million or 6%, total deposits increased $47.3 million or 16%, and total shareholders’ equity attributable to IFH increased $11.7 million or 15%. The increase in assets was primarily the result of large noninterest bearing deposit growth on the liability side being primarily invested in short-term interest-bearing deposits at other institutions and the Federal Reserve. The Bank has continued to see strong growth in deposits primarily as a result of continued execution of a strategic advance into the hemp banking space (trademarked “Hemp Banks Here”). The increase in total shareholders’ equity was primarily a result of net income earned for the year.

CAPITAL LEVELS
At December 31, 2021, 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%		15.91%
Tier 1 risk-based capital ratio	8.00%		8.50%		15.91%
Total risk-based capital ratio	10.00%		10.50%		17.17%
Tier 1 leverage ratio	5.00%		4.00%		11.46%

The Company’s book value per common share increased from $34.91 as of December 31, 2020 to $40.30 at December 31, 2021. The Company’s tangible book value per common share (a non-GAAP financial measure) increased from $25.74 as of December 31, 2020 to $31.40 at December 31, 2021, primarily as a result of the net income of the Company.

ASSET QUALITY
The Company’s nonperforming assets to total assets ratio decreased from 2.74% at December 31, 2020 to 1.65% at December 31, 2021, as management continued to address credit concerns surrounding the economic impact of COVID-19. The Company also worked to reduce its portfolio of foreclosed assets. Nonaccrual loans at December 31, 2021 decreased $1.7 million or 19% as compared to December 31, 2020, while foreclosed assets decreased $1.8 million or 74% during the same period. Patriarch, LLC, a subsidiary of the Company formed to expedite the liquidation and recovery of certain Bank assets, held $618,000 in foreclosed assets at December 31, 2021 while the Bank held no such assets.

The Company recorded a $775,000 provision for loan losses during the fourth quarter of 2021, as compared to a provision of $210,000 in fourth quarter 2020, as concerns over the economic recovery continue nationwide.   The Bank has granted 142 deferrals since the onset of the COVID-19 pandemic totaling $72 million in exposure to the Bank.  However, as of December 31, 2021, there were only 12 loans in a deferred status with net exposure to the Bank of $3.6 million. The Company recorded $1.0 million in net charge-offs during the fourth quarter of 2021 as management continued to make 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)	12/31/21			9/30/21			6/30/21			3/31/21			12/31/20
Nonaccrual loans	$	6,848		$	7,575		$	5,765		$	7,341		$	8,506
Foreclosed assets		618			618			618			1,377			2,372
90 days past due and still accruing		-			-			447			-			-
Total nonperforming assets	$	7,466		$	8,193		$	6,830		$	8,718		$	10,878
Net charge-offs	$	1,038		$	325		$	24		$	156		$	96
Annualized net charge-offs to total average portfolio loans		1.65	%		0.50	%		0.03	%		0.24	%		0.14	%
Ratio of total nonperforming assets to total assets		1.65	%		1.84	%		1.55	%		2.14	%		2.74	%
Ratio of total nonperforming loans to total loans, net
of allowance		2.70	%		2.99	%		2.40	%		2.69	%		3.26	%
Ratio of total allowance for loan losses to total loans		2.14	%		2.24	%		2.13	%		2.02	%		1.94	%

NET INTEREST INCOME AND MARGIN
Net interest income for the three months ended December 31, 2021 increased $555,000 or 16% in comparison to the fourth quarter of 2020 as loan yields increased year over year from 5.90% to 6.53%, which offset the decrease in average loan balances during those same periods. Despite the increase in loan yield and a decrease in overall cost of funds from 1.01% in the fourth quarter of 2020 to 0.65% for the same period in 2021, net interest margin decreased from 4.27% during that period in 2020 to 4.14% for the same period in 2021. The decrease in margin is directly attributable to a change in the mix of average earning assets as average loans decreased $8.5 million while lower yielding other interest-bearing balances, primarily cash held at the Federal Reserve, increased $65.0 million at the same time.

Interest-earning asset yields decreased from 5.18% to 4.71% while interest-bearing liabilities cost decreased from 1.38% to 0.93% year-over-year between December 31, 2021 and 2020. The overall decrease in yield on assets was attributable to a change in the mix of earning asset types while the decrease in rates on liabilities is reflective of the rate decreases by the Federal Open Market Committee (“FOMC”) in the first quarter of 2020 in response to the pandemic.  

Net interest income for the twelve months ended December 31, 2021, increased $1.9 million or 13% in comparison to the same period in 2020, largely due to an increase in average interest-earning assets. Specifically, loans had an average balance increase of $24.4 million or 9%, from an average balance of $258.4 million at December 31, 2020 to $282.8 million at December 31, 2021. Also impacting net interest income for the year was a decrease in cost-of-funds which dropped from 1.26% for the twelve months ended December 31, 2020 to 0.77% for the same period in 2021 as a result of the rate changes by the FOMC in the prior year.

	Three Months Ended											Year-To-Date
(Dollars in thousands)	12/31/21		9/30/21		6/30/21		3/31/21		12/31/20			12/31/21		12/31/20
Average balances:
Loans	$	277,510	$	272,994	$	292,166	$	288,700	$	285,969		$	282,843	$	258,418
Available-for-sale securities		32,367		31,393		29,969		27,366		25,200			30,274		24,846
Other interest-bearing balances		86,261		93,682		46,545		35,981		21,305			65,617		20,818
Total interest-earning assets		396,138		398,069		368,680		352,047		332,474			378,734		304,082
Total assets		442,139		446,822		418,741		399,775		382,574			426,869		355,156
Noninterest-bearing deposits		104,472		103,708		85,918		80,626		81,552			93,681		70,089
Interest-bearing liabilities:
Interest-bearing deposits		237,847		240,957		235,013		228,726		212,636			235,636		192,229
Borrowings		5,272		5,196		5,187		4,000		5,793			4,914		13,141
Total interest-bearing liabilities		243,119		246,153		240,200		232,726		218,429			240,550		205,370
Common shareholders' equity		86,549		85,683		81,584		78,640		75,774			83,114		72,416
Tangible common equity (1)		66,877		65,843		61,587		58,506		55,454			63,203		51,817
Interest income/expense:
Loans	$	4,571	$	4,759	$	4,686	$	4,442	$	4,250		$	18,458	$	17,486
Available-for-sale securities		77		75		66		50		52			268		283
Interest-bearing balances and other		53		67		33		35		38			188		185
Total interest income		4,701		4,901		4,785		4,527		4,340			18,914		17,954
Deposits		566		645		665		704		759			2,580		3,294
Borrowings		1		-		-		-		2			1		182
Total interest expense		567		645		665		704		761			2,581		3,476
Net interest income	$	4,134	$	4,256	$	4,120	$	3,823	$	3,579		$	16,333	$	14,478
(1) See reconciliation of non-GAAP financial measures.

	Three Months Ended											Year-To-Date
	12/31/21		9/30/21		6/30/21		3/31/21		12/31/20			12/31/21		12/31/20
Average yields and costs:
Loans	6.53	%	6.92	%	6.43	%	6.24	%	5.90	%		6.53	%	6.75	%
Available-for-sale securities	0.95	%	0.96	%	0.88	%	0.73	%	0.83	%		0.89	%	1.14	%
Interest-bearing balances and other	0.24	%	0.28	%	0.28	%	0.39	%	0.71	%		0.29	%	0.89	%
Total interest-earning assets	4.71	%	4.88	%	5.21	%	5.22	%	5.18	%		4.99	%	5.89	%
Interest-bearing deposits	0.94	%	1.06	%	1.13	%	1.25	%	1.42	%		1.09	%	1.71	%
Borrowings	0.08	%	0.00	%	0.00	%	0.00	%	0.14	%		0.02	%	1.38	%
Total interest-bearing liabilities	0.93	%	1.04	%	1.11	%	1.23	%	1.38	%		1.07	%	1.69	%
Cost of funds	0.65	%	0.73	%	0.82	%	0.91	%	1.01	%		0.77	%	1.26	%
Net interest margin	4.14	%	4.24	%	4.48	%	4.40	%	4.27	%		4.31	%	4.75	%

NONINTEREST INCOME
Noninterest income for the three months ended December 31, 2021 was $5.0 million, a decrease of $1.1 million or 18% as compared to the three months ended December 31, 2020. 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 $2.9 million, an increase of $572,000 or 25% as compared to the $2.3 million in income earned during the same prior year period. The increase is attributable to increased volume of the servicing portfolio from new and existing clients.
• Mortgage revenue totaled $1.1 million, a decrease of $308,000 or 22% as compared to the fourth quarter of 2020.   Mortgage loans originated to sell to the secondary market decreased from $41.1 million in the fourth quarter 2020 to $21.4 million in the fourth quarter 2021.   The decrease in both the revenue and origination volume can be attributable to the nationwide slowdown in refinancing volume as many borrowers have already refinanced in this low-rate environment.
• Government Guaranteed Lending (“GGL”) revenue was $2.2 million in the fourth quarter of 2021, an increase of $401,000 or 22% in comparison to the $1.8 million of revenues for the same period in 2020.  
• Other noninterest income was a loss of $1.5 million in the fourth quarter of 2021 compared to income of $491,000 in the same period in 2020. The decrease is entirely attributable to a $2.1 million pre-tax loss associated with a tax credit taken in the fourth quarter of 2021. 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. Excluding the pre-tax tax credit adjustment, other noninterest income would have been $658,000, up $167,000 or 34% in comparison to the same period in 2020.

Noninterest income for the twelve months ended December 31, 2021, was $41.1 million, an increase of $7.6 million or 23% as compared to the $33.5 million in the same prior year period. The most notable increase was in the government lending area which increased from $3.2 million in the twelve months ended December 31, 2020 to $7.9 million for the twelve months ended December 31, 2021. Contributing to this increase was that the GGL division had a full year of originations in 2021 as opposed to the COVID-related interruption experienced in 2020 that shut down originations for 4 months and shifted focus to the Paycheck Protection Program (“PPP”).   In addition, processing and servicing revenues increased by $2.6 million period over period from $20.8 million in the twelve months ended December 31, 2020 to $23.4 million for the twelve months ended December 31, 2021. That growth was primarily driven by revenues from PPP and overall growth in the customer base year over year.

NONINTEREST EXPENSE
Noninterest expense for the fourth quarter of 2021 was $10.3 million, an increase of $1.7 million or 20%, from $8.6 million for the fourth quarter of 2020. Contributing to the year-over-year increase was payroll expenses, which increased due to new hires added this year as the Company continued to expand. Software expenses were $830,000, an increase of $338,000 or 68% in the fourth quarter of 2021 compared to the same period in 2020 as a result of costs related to the processing of PPP loans in the fourth quarter of 2021. Software costs at Windsor increased from $235,000 in the fourth quarter of 2020 to $413,000 in the same period in 2021 primarily due to costs associated with processing and servicing PPP loans. However, the corresponding revenues of Windsor increased $657,000 or 22% during that same period. The increases in all noninterest expense categories, including compensation, occupancy, special assets, data processing, software, communications and other operating expenses are primarily related to the overall growth of the Company and its new business initiatives including the expansion and growth of West Town Payments, LLC, which was added in the third quarter of 2020, as well as a year-over-year increase in mortgage and GGL related compensation tied to the increases in revenues.

For the twelve-month period ended December 31, 2021, noninterest expense increased from $33.3 million in the twelve months ended December 31, 2020, to $42.5 million for the same period in 2021. The increase was primarily the result of the overall growth of the Company, but specifically attributable to additional compensation due to government lending revenue growth, and software and advertising which increased primarily as result of one-time costs associated with PPP.

ABOUT INTEGRATED FINANCIAL HOLDINGS, INC.
Integrated Financial Holdings, Inc. is a financial holding company based in Raleigh, North Carolina. The Company changed its name from West Town Bancorp, Inc. in the third quarter of 2020. 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 servicing company; West Town Insurance Agency, Inc., an insurance agency; Patriarch, LLC, a real estate management company; and SBA Loan Documentation Services, LLC, a loan documentation origination company. 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. The Bank also has an investment in West Town Payments, LLC. Due to the nature of the investment, West Town Payments, LLC is considered a variable interest entity, and as a result, is consolidated for accounting purposes.

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; 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 on our ability to retain key employees, and the impact of competition from traditional or new sources. 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.        

Consolidated Balance Sheets
				Ending Balance
(Dollars in thousands, unaudited)				12/31/21			9/30/21			6/30/21			3/31/21			12/31/20
Assets
Cash and due from banks				$	3,803		$	4,452		$	3,537		$	3,217		$	4,268
Interest-bearing deposits					79,910			83,327			76,957			30,224			28,657
	Total cash and cash equivalents				83,713			87,779			80,494			33,441			32,925
Interest-bearing time deposits					1,746			1,996			2,746			2,746			2,746
Available-for-sale securities					32,659			31,341			30,928			28,215			25,711
Loans held for sale					27,880			20,610			14,621			17,735			26,308
Loans held for investment					259,625			259,206			264,402			278,200			258,454
	Allowance for loan and lease losses				(5,547	)		(5,810	)		(5,635	)		(5,609	)		(5,144	)
		Loans held for investment, net			254,078			253,396			258,767			272,591			253,310
Premises and equipment, net					4,106			4,127			4,599			4,651			4,658
Foreclosed assets					618			618			618			1,377			2,372
Loan servicing assets					3,993			3,830			3,936			3,428			3,456
Bank-owned life insurance					5,246			5,220			5,193			5,161			5,136
Accrued interest receivable					1,373			1,508			1,672			1,656			1,556
Goodwill					13,161			13,161			13,161			13,161			13,161
Other intangible assets, net					6,400			6,569			6,737			6,851			7,037
Other assets					18,001			13,954			16,803			17,176			10,833
			Total assets	$	452,974		$	444,109		$	440,275		$	408,189		$	389,209
Liabilities and Shareholders' Equity
Liabilities
Deposits:
	Noninterest-bearing			$	114,313		$	98,940		$	98,797		$	77,167		$	80,854
	Interest-bearing				233,842			241,959			238,598			234,523			220,036
		Total deposits			348,155			340,899			337,395			311,690			300,890
Borrowings					7,500			5,000			5,000			4,000			4,000
Accrued interest payable					326			372			388			454			427
Other liabilities					9,212			11,130			13,490			11,347			7,139
	Total liabilities				365,193			357,401			356,273			327,491			312,456
Shareholders' equity:
Common stock, voting					2,176			2,176			2,183			2,223			2,181
Common stock, non-voting					22			22			22			22			22
Additional paid in capital					23,664			23,515			23,545			24,568			24,361
Retained earnings					62,810			61,534			58,597			54,015			50,079
Accumulated other comprehensive income (loss)					(99	)		65			105			164			271
	Total IFH, Inc. shareholders' equity				88,573			87,312			84,452			80,992			76,914
Noncontrolling interest					(792	)		(604	)		(450	)		(294	)		(161	)
	Total shareholders' equity				87,781			86,708			84,002			80,698			76,753
			Total liabilities and shareholders' equity	$	452,974		$	444,109		$	440,275		$	408,189		$	389,209

Consolidated Statements of Income
(Dollars in thousands except per	Three Months Ended																Year-To-Date
share data; unaudited)	12/31/21			9/30/21			6/30/21			3/31/21			12/31/20				12/31/21			12/31/20
Interest income
Loans	$	4,571		$	4,759		$	4,686		$	4,442		$	4,250			$	18,458		$	17,486
Available-for-sale securities and other		130			142			99			85			90				456			468
Total interest income		4,701			4,901			4,785			4,527			4,340				18,914			17,954
Interest expense
Interest on deposits		566			645			665			704			759				2,580			3,294
Interest on borrowings		1			-			-			-			2				1			182
Total interest expense		567			645			665			704			761				2,581			3,476
Net interest income		4,134			4,256			4,120			3,823			3,579				16,333			14,478
Provision for loan losses		775			500			50			622			210				1,947			4,460
Noninterest income
Loan processing and servicing
revenue		2,863			5,951			5,765			8,838			2,291				23,417			20,769
Mortgage		1,090			1,537			1,773			1,706			1,398				6,106			6,789
Government guaranteed lending		2,216			584			3,812			1,325			1,815				7,937			3,178
SBA documentation preparation fees		167			149			241			434			57				991			749
Service charges on deposits		85			77			49			32			20				243			65
Bank-owned life insurance		25			27			32			25			26				109			115
Other noninterest income (loss)		(1,473	)		694			908			2,196			491				2,325			1,841
Total noninterest income		4,973			9,019			12,580			14,556			6,098				41,128			33,506
Noninterest expense
Compensation		6,178			5,462			5,996			6,016			5,250				23,652			19,107
Occupancy and equipment		254			324			300			303			286				1,181			1,042
Loan and special asset expenses		483			133			634			1,002			655				2,252			2,726
Professional services		845			732			560			680			559				2,817			2,259
Data processing		267			196			215			221			196				899			696
Software		830			842			1,524			3,391			492				6,587			3,377
Communications		99			100			90			107			94				396			348
Advertising		453			474			393			109			128				1,429			507
Amortization of intangibles		170			170			172			186			186				698			744
Other operating expenses		754			505			733			644			792				2,636			2,492
Total noninterest expense		10,333			8,938			10,617			12,659			8,638				42,547			33,298
Income (loss) before income taxes		(2,001	)		3,837			6,033			5,098			829				12,967			10,226
Income tax expense (benefit)		(3,090	)		1,055			1,606			1,296			(805	)			867			1,512
Net income		1,089			2,782			4,427			3,802			1,634				12,100			8,714
Noncontrolling interest		(187	)		(155	)		(155	)		(134	)		(96	)			(631	)		(162	)
Net income attributable
to IFH, Inc.	$	1,276		$	2,937		$	4,582		$	3,936		$	1,730			$	12,731		$	8,876
Basic earnings per common share	$	0.60		$	1.37		$	2.14		$	1.80		$	0.80			$	5.91		$	4.07
Diluted earnings per common share	$	0.57		$	1.32		$	2.07		$	1.76		$	0.78			$	5.71		$	4.01
Weighted average common shares
outstanding		2,140			2,144			2,147			2,185			2,169				2,154			2,179
Diluted average common shares
outstanding		2,234			2,219			2,219			2,240			2,212				2,229			2,213

Performance Ratios
		Three Months Ended																Year-To-Date
		12/31/21			9/30/21			6/30/21			3/31/21			12/31/20				12/31/21			12/31/20
PER COMMON SHARE
	Basic earnings per common share	$	0.60		$	1.37		$	2.14		$	1.80		$	0.80			$	5.91		$	4.07
	Diluted earnings per common share		0.57			1.32			2.07			1.76			0.78				5.71			4.01
	Book value per common share		40.30			39.74			38.32			36.08			34.91				40.30			34.91
	Tangible book value per common share (2)		31.40			30.76			29.29			27.16			25.74				31.40			25.74
FINANCIAL RATIOS (ANNUALIZED)
	Return on average assets		1.14	%		2.61	%		4.39	%		3.99	%		1.79	%			2.98	%		2.49	%
	Return on average common shareholders'
	equity		5.85	%		13.60	%		22.53	%		20.30	%		9.06	%			15.32	%		12.22	%
	Return on average tangible common
	equity (2)		7.57	%		17.70	%		29.84	%		27.28	%		12.38	%			20.14	%		17.08	%
	Net interest margin		4.14	%		4.24	%		4.48	%		4.40	%		4.27	%			4.31	%		4.75	%
	Efficiency ratio (1)		113.5	%		67.3	%		63.6	%		68.9	%		89.3	%			74.0	%		69.4	%
	(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, 2021 were as follows:

			% of
			Commercial
(in millions)	Amount		Loans
Solar electric power generation	$	53.1	28	%
Power and communication line and related structures construction		27.2	14	%
Lessors of nonresidential buildings (except miniwarehouses)		17.6	9	%
Other activities related to real estate		13.6	7	%
Lessors of other real estate property		12.0	6	%
Hotels (except casino hotels) and motels		10.0	5	%
Lessors of residential buildings and dwellings		5.1	3	%
Other heavy and civil engineering construction		4.5	2	%
Amusement arcades		2.8	1	%
Golf courses and country clubs		2.7	1	%
	$	148.6	76	%

Reconciliation of Non-GAAP Measures

(In thousands except book value per share)	12/31/21			9/30/21			6/30/21			3/31/21			12/31/20
Tangible book value per common share
Total IFH, Inc. shareholders' equity	$	88,573		$	87,312		$	84,452		$	80,992		$	76,914
Less: Goodwill		13,161			13,161			13,161			13,161			13,161
Less Other intangible assets, net		6,400			6,569			6,737			6,851			7,037
Total tangible common equity	$	69,012		$	67,582		$	64,554		$	60,980		$	56,716
Ending common shares outstanding		2,198			2,204			2,204			2,245			2,203
Tangible book value per common share	$	31.40		$	30.76		$	29.29		$	27.16		$	25.74
	Three Months Ended																Year-To-Date
(Dollars in thousands)	12/31/21			9/30/21			6/30/21			3/31/21			12/31/20				12/31/21			12/31/20
Return on average tangible common equity
Average IFH, Inc. shareholders' equity	$	86,549		$	85,683		$	81,584		$	78,640		$	75,774			$	83,114		$	72,416
Less: Average goodwill		13,161			13,161			13,161			13,161			13,161				13,161			13,160
Less Average other intangible assets, net		6,511			6,679			6,836			6,973			7,346				6,750			7,439
Average tangible common equity	$	66,877		$	65,843		$	61,587		$	58,506		$	55,267			$	63,203		$	51,817
Net income attributable to IFH, Inc.	$	1,276		$	2,937		$	4,582		$	3,936		$	1,730			$	12,731		$	8,876
Return on average tangible common equity		7.57	%		17.70	%		29.84	%		27.28	%		12.42	%			20.14	%		17.08	%

Contact: Eric Bergevin, 252-482-4400

FAQ

What were Integrated Financial Holdings' earnings for 2021?

Integrated Financial Holdings reported an annual net income of $12.7 million or $5.71 per diluted share for 2021.

How did Integrated Financial Holdings perform in the fourth quarter of 2021?

In Q4 2021, Integrated Financial Holdings reported a net income of $1.3 million, a decrease from $1.7 million in Q4 2020.

What is the stock symbol for Integrated Financial Holdings?

The stock symbol for Integrated Financial Holdings is IFHI.

How much did total assets increase for Integrated Financial Holdings?

Total assets for Integrated Financial Holdings increased by 16% to $453 million.

What was the return on average equity for Integrated Financial Holdings in 2021?

The return on average common equity for 2021 was 15.32%, up from 12.22% in 2020.