Integrated Financial Holdings, Inc. Second Quarter 2021 Financial Results

Rhea-AI Summary

Integrated Financial Holdings, Inc. (OTCQX: IFHI) reported a net income of $4.6 million ($2.07 per share) for Q2 2021, down from $6.3 million ($2.84 per share) in Q2 2020. The provision for loan losses decreased significantly to $50,000 from $665,000 year-over-year. The return on average assets fell to 4.39% from 7.11%, and return on average common equity dropped to 22.53% from 35.18%. Total assets increased to $440.3 million (up 13%), with nonperforming assets ratio improving to 1.55%. Noninterest income was $12.6 million, a decrease of 22% compared to the previous year.

Positive

• Net income of $4.6 million for Q2 2021.
• Total deposits grew by $36.5 million or 12%.
• Reduction in provision for loan losses to $50,000, down from $665,000.

Negative

• Net income decreased from $6.3 million in Q2 2020.
• Loan processing revenue fell to $5.8 million from $14.2 million year-over-year.
• Return on average equity declined significantly to 22.53%.

RALEIGH, N.C., Aug. 02, 2021 (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 six months ended June 30, 2021.  Highlights include the following:

• Second quarter net income of $4.6 million or $2.07 per diluted share compared to 2020 second quarter net income of $6.3 million or $2.84 per diluted share. 
• Provision for loan losses of $50,000 for the second quarter of 2021 compared to $665,000 for the same period in 2020.
• Return on average assets of 4.39%, compared to 7.11% for the second quarter of 2020.
• Return on average common equity of 22.53%, compared to 35.18% for the second quarter of 2020.
• Return on average tangible common equity (a non-GAAP financial measure) of 29.84%, compared to 49.55% for the second quarter of 2020.
• Loan processing and servicing revenue of $5.8 million, compared to $14.2 million for the second quarter of 2020.
• Government lending revenues of $3.8 million, compared to $37,000 for the second quarter of 2020.
• Mortgage origination and sales revenue of $1.8 million as compared to $1.6 million for the second quarter of 2020.
• Other noninterest income of $908,000 compared to ($56,000) for the second quarter of 2020.

Eric Bergevin, President & CEO of the Company commented, “We are very pleased with the Company’s strong second quarter earnings, overall growth and improved asset quality.  The Bank’s Mortgage Department continues to flourish and is on track to having a record-setting year in terms of overall origination levels.  Secondary market premiums on the SBA 7(a) side of things remain near all-time highs, yielding extremely positive results for the Bank’s Government Guaranteed Lending (“GGL”) Department as well.  Overall growth in non-interest-bearing deposits has been significant, paralleling growth in GGL along with the Bank’s continued push to garner commercial deposits among hemp-related businesses in need of reliable banking partners.  Finally, as a result of increased guaranteed portions on all SBA 7(a) loans implemented by Congress earlier this year, community financial institutions have gravitated heavily towards lending efforts in the space, in-turn leading to impressive growth for Windsor Advantage (“Windsor”) far and beyond a core growth rate we have ever seen for the company through two quarters.  Windsor has already onboarded a record number of new lenders year-to-date to its outsourced SBA lending platform and the majority of its existing clients have gained significant traction as processing volume ramps up.”

BALANCE SHEET
At June 30, 2021, the Company’s total assets were $440.3 million, net loans held for investment were $258.8 million, loans held for sale were $14.6 million, total deposits were $337.4 million and total shareholders’ equity attributable to IFH was $84.5 million.  Compared with December 31, 2020, total assets increased $51.1 million or 13%, net loans held for investment increased $5.5 million or 2%, loans held for sale decreased $11.7 million or 44%, total deposits increased $36.5 million or 12%, and total shareholders’ equity attributable to IFH increased $7.5 million or 10%.  The increase in assets was primarily the result of additional liquidity created by strong deposit growth initiatives as over half of the GGL loans originated during the quarter were sold.  The Bank originated $60.1 million in GGL loans during the second quarter and sold $33.6 million during the same period.  The Bank has continued to see strong growth in deposits primarily as a result of corresponding growth in in GGL loans, many of which require customer deposits, as well as 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 posted for the year. 

During the second quarter of 2021, the Company issued 18,900 shares of its common stock associated with various stock-based compensation programs and option exercises and repurchased 59,928 shares of its voting common stock.

CAPITAL LEVELS
At June 30, 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%	13.54%
Tier 1 risk-based capital ratio	8.00%	8.50%	13.54%
Total risk-based capital ratio	10.00%	10.50%	14.80%
Tier 1 leverage ratio	5.00%	4.00%	10.06%

The Company’s book value per common share increased from $33.19 at June 30, 2020 to $38.32 at June 30, 2021.  The Company’s tangible book value per common share (a non-GAAP financial measure) increased from $23.90 at June 30, 2020 to $29.29 at June 30, 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 1.55% at June 30, 2021, as management continued to address credit concerns (specifically in the hospitality portfolio) surrounding the potential economic impact of COVID-19 and the widespread societal responses to the pandemic and worked to reduce its portfolio of foreclosed assets. Nonaccrual loans decreased $2.7 million or 32% 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 while the Bank held no such assets.  The Company regularly conducts impairment analyses on all nonperforming assets with updated appraisals to ensure the assets are carried at the lower of fair market value (less cost to sell) or book value.

The Company recorded a $50,000 provision for loan losses during the second quarter of 2021, as compared to a provision of $665,000 in second quarter 2020, as the problem loan portfolio decreased for the period.  The Company has granted 139 deferrals since June 30, 2020 totaling $71.1 million.  However, as of June 30, 2021, there were only 11 loans in deferral status with net exposure of $3.9 million.  Expected loss estimates consider the impacts of decreased economic activity and higher unemployment, partially offset by the mitigating benefits of government stimulus and industry-wide loan modification efforts. The Company recorded $24,000 net charge-offs during the second quarter of 2021. Set forth in the table below is certain asset quality information as of the dates indicated:

(Dollars in thousands)	6/30/21			3/31/21			12/31/20			9/30/20			6/30/20
Nonaccrual loans	$	5,765		$	7,341		$	8,506		$	8,790		$	7,799
Foreclosed assets	618			1,377			2,372			3,522			4,464
90 days past due and still accruing	447			-			-			-			-
Total nonperforming assets	$	6,830		$	8,718		$	10,878		$	12,312		$	12,263
Net charge-offs	$	24		$	156		$	96		$	2		$	667
Annualized net charge-offs to total average portfolio loans	0.03		%	0.24		%	0.14		%	0.00		%	1.13		%
Ratio of total nonperforming assets to total assets	1.55		%	2.14		%	2.74		%	3.29		%	3.45		%
Ratio of total nonperforming loans to total loans, net
of allowance	2.40		%	2.69		%	3.26		%	3.66		%	3.33		%
Ratio of total allowance for loan losses to total loans	2.13		%	2.02		%	1.94		%	2.05		%	2.05		%

NET INTEREST INCOME AND MARGIN
Net interest income for the three months ended June 30, 2021 increased $634,000 or 18% in comparison to the second quarter of 2020 as loan growth year over year offset the decrease in margin as a result of the low interest rate environment.  The net interest margin was 4.48% for the second quarter of 2021 compared to 4.70% for the same period in 2020.  Interest-earning asset yields decreased from 5.93% to 5.21% while interest-bearing liabilities cost decreased from 1.79% to 1.11% year-over-year between June 30, 2021 and 2020.  The overall decrease in both yield on assets and rates on liabilities are reflective of the rate decreases by the Federal Open Market Committee (“FOMC”) in the first quarter of 2020 in response to the pandemic. 

	Three Months Ended											Year-To-Date
(Dollars in thousands)	6/30/21		3/31/21		12/31/20		9/30/20		6/30/20			6/30/21		6/30/20
Average balances:
Loans	$	292,166	$	288,700	$	285,969	$	270,897	$	250,125		$	290,433	$	238,404
Available-for-sale securities	29,969		27,366		25,200		25,581		24,743			28,668		24,302
Other interest-bearing balances	46,545		35,981		21,305		22,596		22,326			41,263		19,686
Total interest-earning assets	368,680		352,047		332,474		319,074		297,194			360,364		282,392
Total assets	418,741		399,775		382,574		371,395		353,179			409,258		333,327
Noninterest-bearing deposits	85,918		80,626		81,552		77,857		64,617			83,272		60,473
Interest-bearing liabilities:
Interest-bearing deposits	235,013		228,726		212,636		204,204		185,507			231,870		176,037
Borrowed funds	5,187		4,000		5,793		6,793		17,703			4,593		19,967
Total interest-bearing liabilities	240,200		232,726		218,429		210,997		203,210			236,463		196,004
Common shareholders' equity	81,584		78,640		75,774		73,970		71,348			80,112		69,740
Tangible common equity (1)	61,587		58,506		55,454		53,463		50,656			60,047		48,957
Interest income/expense:
Loans	$	4,686	$	4,442	$	4,250	$	4,394	$	4,283		$	9,128	$	8,842
Investment securities	66		50		52		64		72			116		167
Interest-bearing balances and other	33		35		38		35		36			68		112
Total interest income	4,785		4,527		4,340		4,493		4,391			9,312		9,121
Deposits	665		704		759		855		835			1,369		1,680
Borrowings	-		-		2		1		70			-		179
Total interest expense	665		704		761		856		905			1,369		1,859
Net interest income	$	4,120	$	3,823	$	3,579	$	3,637	$	3,486		$	7,943	$	7,262
(1) See reconciliation of non-GAAP financial measures.

	Three Months Ended											Year-To-Date
	6/30/21		3/31/21		12/31/20		9/30/20		6/30/20			6/30/21		6/30/20
Average yields and costs:
Loans	6.43	%	6.24	%	5.90	%	6.44	%	6.87	%		6.34	%	7.44	%
Available-for-sale securities	0.88	%	0.73	%	0.83	%	1.00	%	1.16	%		0.81	%	1.37	%
Interest-bearing balances and other	0.28	%	0.39	%	0.71	%	0.61	%	0.65	%		0.33	%	1.14	%
Total interest-earning assets	5.21	%	5.22	%	5.18	%	5.59	%	5.93	%		5.21	%	6.48	%
Interest-bearing deposits	1.13	%	1.25	%	1.42	%	1.66	%	1.81	%		1.19	%	1.91	%
Borrowed funds	0.00	%	0.00	%	0.14	%	0.06	%	1.59	%		0.00	%	1.80	%
Total interest-bearing liabilities	1.11	%	1.23	%	1.38	%	1.61	%	1.79	%		1.17	%	1.90	%
Cost of funds	0.82	%	0.91	%	1.01	%	1.18	%	1.36	%		0.86	%	1.45	%
Net interest margin	4.48	%	4.40	%	4.27	%	4.52	%	4.70	%		4.44	%	5.16	%

NONINTEREST INCOME
Noninterest income for the three months ended June 30, 2021 was $12.6 million, a decrease of $3.6 million or 22% as compared to the three months ended June 30, 2020.  Specific items to note include:

• Windsor, a subsidiary of the Company which offers an SBA and USDA loan servicing platform, had processing and servicing revenue totaling $5.7 million, a decrease of $8.4 million or 59% as compared to the $14.2 million in income earned from the investment in Windsor during the same prior year period. Both periods included Paycheck Protection Program (“PPP”) fee related income with $3.5 million in revenues directly attributable to PPP in the second quarter of 2021 compared to $13.0 million for the same period in 2020.  In addition, increased volume of the servicing portfolio from new and existing clients helped to build overall revenues for Windsor.     
• Mortgage revenue totaled $1.8 million, an increase of $200,000 or 13% as compared to the second quarter of 2020.  Mortgage loans originated to sell to the secondary market increased from $46.2 million in the first quarter 2020 to $51.0 million in the second quarter 2021.  The increase in both the revenue and origination volume can be attributable to the decrease in market rates tied to the FOMC decision to decrease rates. 
• GGL revenue was $3.8 million in the second quarter of 2021, an increase of $3.8 million in comparison to the $37,000 of revenues for the same period in 2020.  GGL volume year-over-year was impacted by increased economic activity nationwide.
• Other noninterest income totaled $908,000 in the second quarter or 2021, an increase $964,000 in comparison to the same period in 2020.  The Company recognized an increase of $508,000 in the fair value of its loan servicing rights during the second quarter of 2021 compared to a loss in fair value of $266,000 in the same period in the prior year.              

NONINTEREST EXPENSE
Noninterest expense for the second quarter of 2021 was $10.6 million, a decrease of $230,000 or 2%, from $10.8 million for the second quarter of 2020.  The primary cause for the year-over-year decrease was the cost of the software needed to process the PPP loans in the second quarter of 2021.  Software costs at Windsor, the subsidiary that does the majority of the PPP loan processing, decreased from $2.0 million in the second quarter of 2020 to $1.3 million in the same period in 2021.  However, the corresponding revenues of Windsor decreased during that same period by $8.4 million.  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 addition of West Town Payments, LLC 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.

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; SBA Loan Documentation Services, LLC, a loan documentation origination company; and Glenwood Structured Finance, LLC, a loan broker and large loan syndication 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. 

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)				6/30/21			3/31/21			12/31/20			9/30/20			6/30/20
Assets
Cash and due from banks				$	3,537		$	3,217		$	4,268		$	6,007		$	6,183
Interest-bearing deposits				76,957			30,224			28,657			13,294			11,644
	Total cash and cash equivalents			80,494			33,441			32,925			19,301			17,827
Interest-bearing time deposits				2,746			2,746			2,746			2,746			2,746
Available-for-sale securities				30,928			28,215			25,711			24,462			26,081
Loans held for sale				14,621			17,735			26,308			35,743			23,072
Loans held for investment				264,402			278,200			258,454			244,994			238,926
	Allowance for loan and lease losses			(5,635		)	(5,609		)	(5,144		)	(5,029		)	(4,906		)
		Loans held for investment, net		258,767			272,591			253,310			239,965			234,020
Premises and equipment, net				4,599			4,651			4,658			4,628			4,761
Foreclosed assets				618			1,377			2,372			3,522			4,464
Loan servicing assets				3,936			3,428			3,456			3,265			3,262
Bank-owned life insurance				5,193			5,161			5,136			5,109			5,082
Accrued interest receivable				1,672			1,656			1,556			1,705			1,422
Goodwill				13,161			13,161			13,161			13,161			13,161
Other intangible assets, net				6,737			6,851			7,037			7,224			7,409
Other assets				16,803			17,176			10,833			13,186			12,349
			Total assets	$	440,275		$	408,189		$	389,209		$	374,017		$	355,656
Liabilities and Shareholders' Equity
Liabilities
Deposits:
	Noninterest-bearing			$	98,797		$	77,167		$	80,854		$	78,849		$	66,874
	Interest-bearing			238,598			234,523			220,036			206,913			198,108
		Total deposits		337,395			311,690			300,890			285,762			264,982
Borrowings				5,000			4,000			4,000			4,000			6,000
Accrued interest payable				388			454			427			396			391
Other liabilities				13,490			11,347			7,139			8,845			10,771
	Total liabilities			356,273			327,491			312,456			299,003			282,144
Shareholders’ equity:
Common stock, voting				2,183			2,223			2,181			2,181			2,193
Common stock, non-voting				22			22			22			22			22
Additional paid in capital				23,545			24,568			24,361			24,220			24,357
Retained earnings				58,597			54,015			50,079			48,349			46,629
Accumulated other comprehensive income				105			164			271			308			311
	Total IFH, Inc. shareholders’ equity			84,452			80,992			76,914			75,080			73,512
Noncontrolling interest				(450		)	(294		)	(161		)	(66		)	-
	Total shareholders’ equity			84,002			80,698			76,753			75,014			73,512
			Total liabilities and shareholders’ equity	$	440,275		$	408,189		$	389,209		$	374,017		$	355,656

Consolidated Statements of Income
(Dollars in thousands except per	Three Months Ended																Year-To-Date
share data; unaudited)	6/30/21			3/31/21			12/31/20			9/30/20			6/30/20				6/30/21			6/30/20
Interest income
Loans	$	4,686		$	4,442		$	4,250		$	4,394		$	4,283			$	9,128		$	8,842
Available-for-sale securities and other	99			85			90			99			108				184			279
Total interest income	4,785			4,527			4,340			4,493			4,391				9,312			9,121
Interest expense
Interest on deposits	665			704			759			855			835				1,369			1,680
Interest on borrowings	-			-			2			1			70				-			179
Total interest expense	665			704			761			856			905				1,369			1,859
Net interest income	4,120			3,823			3,579			3,637			3,486				7,943			7,262
Provision for loan losses	50			622			210			125			665				672			4,125
Noninterest income
Loan processing and servicing
revenue	5,765			8,838			2,291			2,579			14,186				14,603			15,899
Mortgage	1,773			1,706			1,398			2,400			1,573				3,479			2,991
Government guaranteed lending	3,812			1,325			1,815			571			37				5,137			792
SBA documentation preparation fees	241			434			57			195			423				675			-
Bank-owned life insurance	49			32			20			15			34				81			61
Service charges on deposits	32			25			26			28			11				57			30
Other noninterest income	908			2,196			491			771			(56		)		3,104			1,076
Total noninterest income	12,580			14,556			6,098			6,559			16,208				27,136			20,849
Noninterest expense
Compensation	5,996			6,016			5,250			4,422			5,682				12,012			9,435
Occupancy and equipment	300			303			286			289			211				603			775
Loan and special asset expenses	634			1,002			655			1,013			816				1,636			1,058
Professional services	560			680			559			534			676				1,240			1,166
Data processing	215			221			196			187			165				436			313
Software	1,524			3,391			492			415			2,221				4,915			2,162
Communications	90			107			94			83			82				197			171
Advertising	393			109			128			109			215				502			270
Amortization of intangibles	172			186			186			186			186				358			372
Other operating expenses	733			644			792			545			593				1,377			1,155
Total noninterest expense	10,617			12,659			8,638			7,783			10,847				23,276			16,877
Income before income taxes	6,033			5,098			829			2,288			8,182				11,131			7,109
Income tax expense (benefit)	1,606			1,296			(805		)	634			1,924				2,902			1,683
Net income	4,427			3,802			1,634			1,654			6,258				8,229			5,426
Noncontrolling interest	(155		)	(134		)	(96		)	(66		)	-				(289		)	-
Net income attributable
to IFH, Inc.	$	4,582		$	3,936		$	1,730		$	1,720		$	6,258			$	8,518		$	5,426
Basic earnings per common share	$	2.14		$	1.80		$	0.80		$	0.79		$	2.87			$	3.93		$	2.48
Diluted earnings per common share	$	2.07		$	1.76		$	0.78		$	0.78		$	2.84			$	3.82		$	2.44
Weighted average common shares
outstanding	2,147			2,185			2,169			2,176			2,177				2,166			2,204
Diluted average common shares
outstanding	2,219			2,240			2,212			2,206			2,204				2,229			2,221

Performance Ratios
	Three Months Ended																Year-To-Date
	6/30/21			3/31/21			12/31/20			9/30/20			6/30/20				6/30/21			6/30/20
PER COMMON SHARE
Basic earnings per common share	$	2.14		$	1.80		$	0.80		$	0.79		$	2.87			$	3.93		$	2.48
Diluted earnings per common share	2.07			1.76			0.78			0.78			2.84				3.82			2.44
Book value per common share	38.32			36.08			34.91			34.08			33.19				38.32			33.19
Tangible book value per common share (2)	29.29			27.16			25.74			24.83			23.90				29.29			23.90
FINANCIAL RATIOS (ANNUALIZED)
Return on average assets	4.39		%	3.99		%	1.79		%	1.84		%	7.11		%		4.20		%	3.26		%
Return on average common shareholders'
equity	22.53		%	20.30		%	9.06		%	9.23		%	35.18		%		21.44		%	15.60		%
Return on average tangible common
equity (2)	29.84		%	27.28		%	12.38		%	12.76		%	49.55		%		28.61		%	22.23		%
Net interest margin	4.48		%	4.40		%	4.27		%	4.52		%	4.70		%		4.44		%	5.16		%
Efficiency ratio (1)	63.6		%	68.9		%	89.3		%	76.3		%	55.1		%		66.4		%	60.0		%
(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 June 30, 2021 were as follows:

			% of
			Commercial
(in millions)	Amount		Loans
Solar electric power generation	$	50.0	25	%
Power and communication line and related structures construction	23.9		12	%
Lessors of nonresidential buildings (except miniwarehouses)	19.0		10	%
Lessors of other real estate property	11.9		6	%
Hotels (except casino hotels) and motels	11.1		6	%
Lessors of residential buildings and dwellings	8.6		4	%
Other activities related to real estate	8.5		4	%
General freight trucking, local	5.0		3	%
Other heavy and civil engineering construction	4.5		2	%
Golf courses and country clubs	4.1		2	%
	$	146.6	74	%

Reconciliation of Non-GAAP Measures

(In thousands except book value per share)	6/30/21			3/31/21			12/31/20			9/30/20			6/30/20
Tangible book value per common share
Total IFH, Inc. shareholders’ equity	$	84,452		$	80,992		$	76,914		$	75,080		$	73,512
Less: Goodwill	13,161			13,161			13,161			13,161			13,161
Less Other intangible assets, net	6,737			6,851			7,037			7,224			7,409
Total tangible common equity	$	64,554		$	60,980		$	56,716		$	54,695		$	52,942
Ending common shares outstanding	2,204			2,245			2,203			2,203			2,215
Tangible book value per common share	$	29.29		$	27.16		$	25.74		$	24.83		$	23.90
	Three Months Ended																Year-To-Date
(Dollars in thousands)	6/30/21			3/31/21			12/31/20			9/30/20			6/30/20				6/30/21			6/30/20
Return on average tangible common equity
Average IFH, Inc. shareholders’ equity	$	81,584		$	78,640		$	75,774		$	73,970		$	71,348			$	80,112		$	69,740
Less: Average goodwill	13,161			13,161			13,161			13,161			13,161				13,161			13,159
Less Average other intangible assets, net	6,836			6,973			7,159			7,346			7,531				6,904			7,624
Average tangible common equity	$	61,587		$	58,506		$	55,454		$	53,463		$	50,656			$	60,047		$	48,957
Net income attributable to IFH, Inc.	$	4,582		$	3,936		$	1,730		$	1,720		$	6,258			$	8,518		$	5,426
Return on average tangible common equity	29.84		%	27.28		%	12.38		%	12.76		%	49.55		%		28.61		%	22.23		%

Contact: Eric Bergevin, 252-482-4400

FAQ

What were the earnings results for IFHI in Q2 2021?

IFHI reported a net income of $4.6 million, or $2.07 per diluted share, for Q2 2021.

How did the provision for loan losses change for IFHI in Q2 2021?

The provision for loan losses decreased to $50,000 in Q2 2021 from $665,000 in the same quarter of 2020.

What is the current total asset size of IFHI?

As of June 30, 2021, IFHI's total assets were $440.3 million.

What is the nonperforming assets ratio for IFHI as of June 30, 2021?

The nonperforming assets to total assets ratio improved to 1.55% as of June 30, 2021.