Integrated Financial Holdings, Inc. Third Quarter 2021 Financial Results

Rhea-AI Summary

Integrated Financial Holdings (OTCQX: IFHI) reported strong Q3 2021 earnings, with a net income of $2.9 million or $1.32 per diluted share, up from $1.7 million or $0.78 per diluted share in Q3 2020. Key metrics include a return on average assets of 2.61% and a significant increase in loan processing and servicing revenue to $6 million. Total deposits rose to $340.9 million, a 13% increase. Despite challenges in mortgage revenue, overall growth remains robust due to strategic initiatives in government lending and deposit growth in the hemp industry.

Positive

• Q3 2021 net income increased by 70% year-over-year to $2.9 million.
• Return on average assets improved to 2.61% from 1.84% in Q3 2020.
• Loan processing and servicing revenue surged 131% to $6 million.
• Total deposits increased by $40 million or 13% to $340.9 million.
• Strategic growth in hemp and CBD banking is driving deposit increases.

Negative

• Mortgage origination revenue decreased by 36% to $1.5 million.
• Total noninterest expense rose by 15% year-over-year, indicating rising costs.

RALEIGH, N.C., Oct. 29, 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 nine months ended September 30, 2021. Highlights include the following:

• Third quarter net income of $2.9 million or $1.32 per diluted share compared to 2020 third quarter net income of $1.7 million or $0.78 per diluted share.  
• Provision for loan losses of $500,000 for the third quarter of 2021 compared to $125,000 for the same period in 2020.
• Return on average assets of 2.61%, compared to 1.84% for the third quarter of 2020.
• Return on average common equity of 13.6%, compared to 9.23% for the third quarter of 2020.
• Return on average tangible common equity (a non-GAAP financial measure) of 17.7%, compared to 12.8% for the third quarter of 2020.
• Loan processing and servicing revenue of $6.0 million, compared to $2.6 million for the third quarter of 2020.
• Mortgage origination and sales revenue of $1.5 million as compared to $2.4 million for the third quarter of 2020.
• Government lending revenues of $584,000, compared to $571,000 for the third quarter of 2020.
• Other noninterest income of $694,000 compared to $771,000 for the third quarter of 2020.
  

Eric Bergevin, President and CEO of the Company said, “We are pleased with the Company’s strong third quarter earnings and continued deposit growth. Strong earnings can be attributed to the increase in new Windsor financial institution clients, many of which actively participate in the SBA 7(a) Loan Program, as well as the Bank’s strategic approach to Government Guaranteed Lending (GGL), including the authorization of a significant amount of funding in solar construction participations that will eventually be converted to permanent debt upon the projects being completed. While at the same time, continued efforts with our “originate and hold” GGL strategy should help the Bank leverage liquidity and capital through the fourth quarter and beyond. Overall growth in non-interest-bearing deposits remains strong as a result of our focus on the hemp and CBD industries. Volume in our Mortgage department tapered slightly due to a to a minor uptick in interest rates, as well as the fact that the majority of our target audiences have already refinanced year-to-date. Moving forward, with the CARES Act payments coming to an end, we expect that the Bank’s asset quality should continue to stabilize.  We are also experiencing strong demand within our renewables sector pipeline from development loans to construction loans to permanent financing and anticipate this will continue to yield positive results.”

BALANCE SHEET
At September 30, 2021, the Company’s total assets were $444.1 million, net loans held for investment were $253.4 million, loans held for sale were $20.6 million, total deposits were $340.9 million and total shareholders’ equity attributable to IFH was $87.3 million. Compared with December 31, 2020, total assets increased $54.9 million or 14%, net loans held for investment increased $86,000, loans held for sale decreased $5.7 million or 22%, total deposits increased $40.0 million or 13%, and total shareholders’ equity attributable to IFH increased $10.4 million or 14%. The increase in assets was primarily the result of additional liquidity created by strong deposit growth initiatives. The Bank has continued to see strong growth in deposits primarily as a result 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 third quarter of 2021, the Company repurchased 7,000 shares of its voting common stock.

CAPITAL LEVELS
At September 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%	13.44%
Tier 1 risk-based capital ratio	8.00%	8.50%	13.44%
Total risk-based capital ratio	10.00%	10.50%	14.70%
Tier 1 leverage ratio	5.00%	4.00%	9.48%

The Company’s book value per common share increased from $34.08 as of September 30, 2020 to $39.62 at September 30, 2021. The Company’s tangible book value per common share (a non-GAAP financial measure) increased from $24.83 as of September 30, 2020 to $30.66 at September 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 1.84% at September 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 $931,000 or 11% 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 $500,000 provision for loan losses during the third quarter of 2021, as compared to a provision of $125,000 in third 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 September 30, 2021, there were only 14 loans in a deferred status with net exposure to the Bank of $5.1 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 $325,000 in net charge-offs during the third quarter of 2021. Set forth in the table below is certain asset quality information as of the dates indicated:

(Dollars in thousands)	9/30/21			6/30/21			3/31/21			12/31/20			9/30/20
Nonaccrual loans	$	7,575		$	5,765		$	7,341		$	8,506		$	8,790
Foreclosed assets		618			618			1,377			2,372			3,522
90 days past due and still accruing		-			447			-			-			-
Total nonperforming assets	$	8,193		$	6,830		$	8,718		$	10,878		$	12,312
Net charge-offs	$	325		$	24		$	156		$	96		$	2
Annualized net charge-offs to total average portfolio loans		0.50	%		0.03	%		0.24	%		0.14	%		0.00	%
Ratio of total nonperforming assets to total assets		1.84	%		1.55	%		2.14	%		2.74	%		3.29	%
Ratio of total nonperforming loans to total loans, net
of allowance		2.99	%		2.40	%		2.69	%		3.26	%		3.66	%
Ratio of total allowance for loan losses to total loans		2.24	%		2.13	%		2.02	%		1.94	%		2.05	%

NET INTEREST INCOME AND MARGIN
Net interest income for the nine months ended September 30, 2021 increased $619,000 or 17% in comparison to the third quarter of 2020 as loan growth year over year offset the decrease in margin due to the low interest rate environment. The net interest margin was 4.24% for the third quarter of 2021 compared to 4.52% for the same period in 2020. Interest-earning asset yields decreased from 5.59% to 4.88% while interest-bearing liabilities cost decreased from 1.61% to 1.04% year-over-year between September 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)	9/30/21		6/30/21		3/31/21		12/31/20		9/30/20				9/30/21		9/30/20
Average balances:
Loans	$	272,994	$	292,166	$	288,700	$	285,969	$	270,897			$	284,620	$	249,235
Available-for-sale securities		31,393		29,969		27,366		25,200		25,581				29,576		24,728
Other interest-bearing balances		93,682		46,545		35,981		21,305		22,596				58,736		20,656
Total interest-earning assets		398,069		368,680		352,047		332,474		319,074				372,932		294,619
Total assets		446,822		418,741		399,775		382,574		371,395				421,779		346,016
Noninterest-bearing deposits		103,708		85,918		80,626		81,552		77,857				90,084		66,268
Interest-bearing liabilities:
Interest-bearing deposits		240,957		235,013		228,726		212,636		204,204				234,899		185,426
Borrowed funds		5,196		5,187		4,000		5,793		6,793				4,794		15,576
Total interest-bearing liabilities		246,153		240,200		232,726		218,429		210,997				239,693		201,002
Common shareholders' equity		85,683		81,584		78,640		75,774		73,970				81,969		71,296
Tangible common equity (1)		65,843		61,587		58,506		55,454		53,463				61,979		50,605
Interest income/expense:
Loans	$	4,759	$	4,686	$	4,442	$	4,250	$	4,394			$	13,887	$	13,236
Investment securities		75		66		50		52		64				191		231
Interest-bearing balances and other		67		33		35		38		35				135		147
Total interest income		4,901		4,785		4,527		4,340		4,493				14,213		13,614
Deposits		645		665		704		759		855				2,014		2,535
Borrowings		-		-		-		2		1				-		180
Total interest expense		645		665		704		761		856				2,014		2,715
Net interest income	$	4,256	$	4,120	$	3,823	$	3,579	$	3,637			$	12,199	$	10,899
(1) See reconciliation of non-GAAP financial measures.

	Three Months Ended											Year-To-Date
	9/30/21		6/30/21		3/31/21		12/31/20		9/30/20			9/30/21		9/30/20
Average yields and costs:
Loans	6.92%		6.43%		6.24%		5.90%		6.44%			6.52%		7.07%
Available-for-sale securities	0.96%		0.88%		0.73%		0.83%		1.00%			0.86%		1.25%
Interest-bearing balances and other	0.28%		0.28%		0.39%		0.71%		0.61%			0.31%		0.95%
Total interest-earning assets	4.88%		5.21%		5.22%		5.18%		5.59%			5.10%		6.16%
Interest-bearing deposits	1.06%		1.13%		1.25%		1.42%		1.66%			1.15%		1.82%
Borrowed funds	0.00%		0.00%		0.00%		0.14%		0.06%			0.00%		1.54%
Total interest-bearing liabilities	1.04%		1.11%		1.23%		1.38%		1.61%			1.12%		1.80%
Cost of funds	0.73%		0.82%		0.91%		1.01%		1.18%			0.82%		1.35%
Net interest margin	4.24%		4.48%		4.40%		4.27%		4.52%			4.37%		4.93%

NONINTEREST INCOME
Noninterest income for the three months ended September 30, 2021 was $9.0 million, an increase of $2.5 million or 38% as compared to the three months ended September 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 $6.0 million, an increase of $3.4 million or 131% as compared to the $2.6 million in income earned from the investment in Windsor 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 $1.5 million, a decrease of $863,000 or 36% as compared to the third quarter of 2020.   Mortgage loans originated to sell to the secondary market decreased from $50.3 million in the third quarter 2020 to $33.2 million in the third 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.
• GGL revenue was $584,000 in the third quarter of 2021, an increase of $13,000 in comparison to the $571,000 of revenues for the same period in 2020.  
• Other noninterest income totaled $694,000 in the third quarter of 2021, a decrease of $77,000 in comparison to the same period in 2020. The Company recognized a decrease of $106,000 in the fair value of its loan servicing rights during the third quarter of 2021 compared to an increase in fair value of $3,000 in the same period in the prior year.

NONINTEREST EXPENSE
Noninterest expense for the third quarter of 2021 was $8.9 million, an increase of $1.1 million or 15%, from $7.8 million for the third quarter of 2020. The primary cause for the year-over-year increase in payroll expenses was due to new hires added this year as the Company continues to expand. Software expenses were $842,000, an increase of $427,000 or 103% in the third quarter of 2021 compared to the third quarter of 2020 as a result of costs related to the processing of PPP loans in the third quarter of 2021. Software costs at Windsor increased from $485,000 in the third quarter of 2020 to $575,000 in the same period in 2021 primarily due to costs associated with processing and servicing PPP loans. However, the corresponding revenues of Windsor more than doubled 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 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; 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.

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)				9/30/21			6/30/21			3/31/21			12/31/20			9/30/20
Assets
Cash and due from banks				$	4,452		$	3,537		$	3,217		$	4,268		$	6,007
Interest-bearing deposits					83,327			76,957			30,224			28,657			13,294
	Total cash and cash equivalents				87,779			80,494			33,441			32,925			19,301
Interest-bearing time deposits					1,996			2,746			2,746			2,746			2,746
Available-for-sale securities					31,341			30,928			28,215			25,711			24,462
Loans held for sale					20,610			14,621			17,735			26,308			35,743
Loans held for investment					259,206			264,402			278,200			258,454			244,994
	Allowance for loan and lease losses				(5,810	)		(5,635	)		(5,609	)		(5,144	)		(5,029	)
		Loans held for investment, net			253,396			258,767			272,591			253,310			239,965
Premises and equipment, net					4,127			4,599			4,651			4,658			4,628
Foreclosed assets					618			618			1,377			2,372			3,522
Loan servicing assets					3,830			3,936			3,428			3,456			3,265
Bank-owned life insurance					5,220			5,193			5,161			5,136			5,109
Accrued interest receivable					1,508			1,672			1,656			1,556			1,705
Goodwill					13,161			13,161			13,161			13,161			13,161
Other intangible assets, net					6,569			6,737			6,851			7,037			7,224
Other assets					13,954			16,803			17,176			10,833			13,186
			Total assets	$	444,109		$	440,275		$	408,189		$	389,209		$	374,017
Liabilities and Shareholders' Equity
Liabilities
Deposits:
	Noninterest-bearing			$	98,940		$	98,797		$	77,167		$	80,854		$	78,849
	Interest-bearing				241,959			238,598			234,523			220,036			206,913
		Total deposits			340,899			337,395			311,690			300,890			285,762
Borrowings					5,000			5,000			4,000			4,000			4,000
Accrued interest payable					372			388			454			427			396
Other liabilities					11,130			13,490			11,347			7,139			8,845
	Total liabilities				357,401			356,273			327,491			312,456			299,003
Shareholders' equity:
Common stock, voting					2,176			2,183			2,223			2,181			2,181
Common stock, non-voting					22			22			22			22			22
Additional paid in capital					23,515			23,545			24,568			24,361			24,220
Retained earnings					61,534			58,597			54,015			50,079			48,349
Accumulated other comprehensive income					65			105			164			271			308
	Total IFH, Inc. shareholders' equity				87,312			84,452			80,992			76,914			75,080
Noncontrolling interest					(604	)		(450	)		(294	)		(161	)		(66	)
	Total shareholders' equity				86,708			84,002			80,698			76,753			75,014
			Total liabilities and shareholders' equity	$	444,109		$	440,275		$	408,189		$	389,209		$	374,017

Consolidated Statements of Income
(Dollars in thousands except per	Three Months Ended																Year-To-Date
share data; unaudited)	9/30/21			6/30/21			3/31/21			12/31/20			9/30/20				9/30/21			9/30/20
Interest income
Loans	$	4,759		$	4,686		$	4,442		$	4,250		$	4,394			$	13,887		$	13,236
Available-for-sale securities and other		142			99			85			90			99				326			378
Total interest income		4,901			4,785			4,527			4,340			4,493				14,213			13,614
Interest expense
Interest on deposits		645			665			704			759			855				2,014			2,535
Interest on borrowings		-			-			-			2			1				-			180
Total interest expense		645			665			704			761			856				2,014			2,715
Net interest income		4,256			4,120			3,823			3,579			3,637				12,199			10,899
Provision for loan losses		500			50			622			210			125				1,172			4,250
Noninterest income
Loan processing and servicing
revenue		5,951			5,765			8,838			2,291			2,579				20,554			18,478
Mortgage		1,537			1,773			1,706			1,398			2,400				5,016			5,391
Government guaranteed lending		584			3,812			1,325			1,815			571				5,721			1,363
SBA documentation preparation fees		149			241			434			57			195				824			692
Bank-owned life insurance		77			49			32			20			15				158			45
Service charges on deposits		27			32			25			26			28				84			89
Other noninterest income		694			908			2,196			491			771				3,798			1,350
Total noninterest income		9,019			12,580			14,556			6,098			6,559				36,155			27,408
Noninterest expense
Compensation		5,462			5,996			6,016			5,250			4,422				17,474			13,857
Occupancy and equipment		324			300			303			286			289				927			756
Loan and special asset expenses		133			634			1,002			655			1,013				1,769			2,071
Professional services		732			560			680			559			534				1,972			1,700
Data processing		196			215			221			196			187				632			500
Software		842			1,524			3,391			492			415				5,757			2,885
Communications		100			90			107			94			83				297			254
Advertising		474			393			109			128			109				976			379
Amortization of intangibles		170			172			186			186			186				528			558
Other operating expenses		505			733			644			792			545				1,882			1,700
Total noninterest expense		8,938			10,617			12,659			8,638			7,783				32,214			24,660
Income before income taxes		3,837			6,033			5,098			829			2,288				14,968			9,397
Income tax expense (benefit)		1,055			1,606			1,296			(805	)		634				3,957			2,317
Net income		2,782			4,427			3,802			1,634			1,654				11,011			7,080
Noncontrolling interest		(155	)		(155	)		(134	)		(96	)		(66	)			(444	)		(66	)
Net income attributable
to IFH, Inc.	$	2,937		$	4,582		$	3,936		$	1,730		$	1,720			$	11,455		$	7,146
Basic earnings per common share	$	1.37		$	2.14		$	1.80		$	0.80		$	0.79			$	5.31		$	3.27
Diluted earnings per common share	$	1.32		$	2.07		$	1.76		$	0.78		$	0.78			$	5.15		$	3.23
Weighted average common shares
outstanding		2,144			2,147			2,185			2,169			2,176				2,158			2,182
Diluted average common shares
outstanding		2,219			2,219			2,240			2,212			2,206				2,226			2,215

Performance Ratios
		Three Months Ended																Year-To-Date
		9/30/21			6/30/21			3/31/21			12/31/20			9/30/20				9/30/21			9/30/20
PER COMMON SHARE
	Basic earnings per common share	$	1.37		$	2.14		$	1.80		$	0.80		$	0.79			$	5.31		$	3.27
	Diluted earnings per common share		1.32			2.07			1.76			0.78			0.78				5.15			3.23
	Book value per common share		39.62			38.32			36.08			34.91			34.08				39.62			34.08
	Tangible book value per common share (2)		30.66			29.29			27.16			25.74			24.83				30.66			24.83
FINANCIAL RATIOS (ANNUALIZED)
	Return on average assets		2.61	%		4.39	%		3.99	%		1.79	%		1.84	%			3.63	%		2.75	%
	Return on average common shareholders'
	equity		13.60	%		22.53	%		20.30	%		9.06	%		9.23	%			18.68	%		13.35	%
	Return on average tangible common
	equity (2)		17.70	%		29.84	%		27.28	%		12.38	%		12.76	%			24.71	%		18.81	%
	Net interest margin		4.24	%		4.48	%		4.40	%		4.27	%		4.52	%			4.37	%		4.93	%
	Efficiency ratio (1)		67.3	%		63.6	%		68.9	%		89.3	%		76.3	%			66.6	%		64.4	%
	(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 September 30, 2021 were as follows:

			% of
			Commercial
(in millions)	Amount		Loans
Solar electric power generation	$	45.3	24	%
Power and communication line and related structures construction		26.5	14	%
Lessors of nonresidential buildings (except miniwarehouses)		19.9	10	%
Lessors of other real estate property		12.6	7	%
Hotels (except casino hotels) and motels		10.7	6	%
Lessors of residential buildings and dwellings		8.2	4	%
Other activities related to real estate		8.0	4	%
General freight trucking, local		5.0	3	%
Other heavy and civil engineering construction		4.5	2	%
Colleges, Universities and Professional Schools		3.5	2	%
	$	144.2	76	%

Reconciliation of Non-GAAP Measures

(In thousands except book value per share)	9/30/21			6/30/21			3/31/21			12/31/20			9/30/20
Tangible book value per common share
Total IFH, Inc. shareholders' equity	$	87,312		$	84,452		$	80,992		$	76,914		$	75,080
Less: Goodwill		13,161			13,161			13,161			13,161			13,161
Less Other intangible assets, net		6,569			6,737			6,851			7,037			7,224
Total tangible common equity	$	67,582		$	64,554		$	60,980		$	56,716		$	54,695
Ending common shares outstanding		2,204			2,204			2,245			2,203			2,203
Tangible book value per common share	$	30.66		$	29.29		$	27.16		$	25.74		$	24.83
	Three Months Ended																Year-To-Date
(Dollars in thousands)	9/30/21			6/30/21			3/31/21			12/31/20			9/30/20				9/30/21			9/30/20
Return on average tangible common equity
Average IFH, Inc. shareholders' equity	$	85,683		$	81,584		$	78,640		$	75,774		$	73,970			$	81,969		$	71,296
Less: Average goodwill		13,161			13,161			13,161			13,161			13,161				13,161			13,159
Less Average other intangible assets, net		6,679			6,836			6,973			7,159			7,346				6,829			7,532
Average tangible common equity	$	65,843		$	61,587		$	58,506		$	55,454		$	53,463			$	61,979		$	50,605
Net income attributable to IFH, Inc.	$	2,937		$	4,582		$	3,936		$	1,730		$	1,720			$	11,455		$	7,146
Return on average tangible common equity		17.70	%		29.84	%		27.28	%		12.38	%		12.76	%			24.71	%		18.81	%

 

Contact: Eric Bergevin, 252-482-4400

FAQ

What is Integrated Financial Holdings' Q3 2021 net income?

The net income for Q3 2021 was $2.9 million, or $1.32 per diluted share.

How did the company's deposits change in Q3 2021?

Total deposits increased by $40 million, or 13%, reaching $340.9 million.

What were the key drivers of revenue growth for IFHI in Q3 2021?

Key drivers included an increase in loan processing and servicing revenue and strategic initiatives in government lending.

How does IFHI's return on assets compare to last year?

The return on average assets improved to 2.61% in Q3 2021 from 1.84% in Q3 2020.

What challenges did Integrated Financial Holdings face in Q3 2021?

The company experienced a 36% decline in mortgage origination revenue compared to the same period last year.