Integrated Financial Holdings, Inc. Fourth Quarter Financial Results

Integrated Financial Holdings, Inc.

RALEIGH, N.C., Jan. 29, 2024 (GLOBE NEWSWIRE) -- Integrated Financial Holdings, Inc. (OTCQX: IFHI) (the “Company” or “IFHI”), the financial holding company for West Town Bank & Trust (the “Bank”) and Windsor Advantage, LLC (“Windsor”), released its financial results for the three and twelve months ended December 31, 2023. Highlights from the 2023 fourth quarter results include the following:

• Fourth quarter net income of $2.8 million, or $1.22 per diluted share compared to fourth quarter 2022 net income of $2.4 million, or $1.04 per diluted share. Year-to-date net income of $11.1 million or $4.91 per diluted share compared to a net loss of $199,000 or $(0.09) per diluted share in the prior year.

• Net interest income of $5.9 million for both the fourth quarters of 2023 and 2022. For the year, net interest income was $22.7 million compared to $22.0 million for the same twelve-month period in 2022.

• Return on average assets of 2.16% and 2.31% for the three and twelve-month periods ending December 31, 2023, compared to 2.15% and -0.05% for the same periods in 2022.

• Return on average tangible common equity (a non-GAAP financial measure) of 13.97% and 14.92% for the three and twelve-month periods ending December 31, 2023, compared to 14.23% and -0.29% for the same periods in 2022.

The fourth quarter of 2023 continued to show positive results from an effort to improve efficiency as the Company continues to streamline operations and reduce overhead costs. The efficiency ratio in the fourth quarter of 2023 was 63.7% compared to 83.5% for the same period in 2022. It should be noted that the 2023 fourth quarter was impacted by a $582,000 recovery of litigation-related expenses from a lawsuit settled in the third quarter of 2022. However, that was offset in part by a decision by the Company to fully accrue $288,000 of contractually obligated consulting-related expenses for a software product at Windsor that will not be put into use. Excluding those nonrecurring items, fourth quarter 2023 noninterest expenses still reflected an improvement of $2.4 million or 24% period over period. Total noninterest expense for the twelve months ended December 31, 2023 was down $19.5 million or 38% from 2022 to 2023 resulting in an efficiency ratio of 65.8% for the twelve months ended December 31, 2023, compared to 101.1% for the same period in 2022. Excluding the 2022 litigation expense recognized in the third quarter of 2022, noninterest expenses for the twelve-month period ended December 31, 2022 would have been $40.8 million and the efficiency ratio would have been 81.2% for an improvement in 2023 of $9.5 million or 23%.

In reflecting on the fourth quarter of 2023, Marc McConnell, Chairman, President, and CEO of IFHI, stated: “During 2023, the Company faced a myriad of obstacles including the unexpected loss of our founding CEO, the termination of an anticipated merger, and an unprecedented level of volatility in the community banking landscape. However, from a financial standpoint, this year was a triumph for our organization. We exceeded $11 million in net income for the year and posted a 2.31% Return on Average Assets which far exceeded the national industry averages. Our outstanding return for the year reflected the success of our right-sizing measures and the resilience of our operations. We were very pleased to be recognized in the Top 50 companies on the OTC-QX market for the year for overall performance, especially in light of the unexpected and significant challenges IFHI faced. I am proud of the proactive strategic leadership that empowered the company to achieve such impressive results this year and of our strategic plan’s performance. As we embrace this next year, we move forward with renewed confidence in our team, our plan, and our potential to strengthen the organization through the next chapter.”

BALANCE SHEET
At December 31, 2023, the Company’s total assets were $547.6 million, net loans held for investment were $352.8 million, loans held for sale (“HFS”) were $40.4 million, total deposits were $435.7 million and total shareholders’ equity attributable to IFHI was $100.3 million. Compared with December 31, 2022, total assets increased $99.7 million or 22%, net loans held for investment increased $58.7 million or 20%, HFS loans increased $6.1 million or 18%, total deposits increased $122.6 million or 39%, and total shareholders’ equity attributable to IFHI increased $12.8 million or 15%. Cash and cash equivalents increased $29.7 million or 87% since the prior year-end. 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 December 31, 2023, noninterest bearing deposits had decreased by $16.1 million or 15% since December 31, 2022, resulting largely from the Company’s decision to discontinue banking two industries the Company had previously targeted. The increase in total shareholders’ equity since December 31, 2022, was primarily associated with earnings. The accumulated other comprehensive loss component of equity for the available-for-sale investment portfolio has improved by $181,000 during the 12-month period ended December 31, 2023 as a result of changing rate expectations. The accumulated other comprehensive loss component of equity was $2.3 million at December 31, 2022 compared to $2.1 million at December 31, 2023. The Company does not have any investments in its portfolio treated as held-to-maturity being carried at cost.

CAPITAL AND LIQUIDITY STRENGTH
At December 31, 2023, the regulatory capital ratios of the Bank 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%	14.12%
Tier 1 risk-based capital ratio	8.00%	8.50%	14.12%
Total risk-based capital ratio	10.00%	10.50%	15.37%
Tier 1 leverage ratio	5.00%	4.00%	12.00%

Primarily as a result of net income, the Company’s book value per common share increased from $38.69 as of December 31, 2022, to $43.72 at December 31, 2023. The Company’s tangible book value per common share (a non-GAAP financial measure) also increased from $30.36 as of December 31, 2022, to $35.80 at December 31, 2023, primarily as a result of net income.

Total deposits have increased by $122.6 million since December 31, 2022 primarily due to a successful retail CD campaign which accounted for $98.8 million of the increase. The Bank funds its loan growth primarily with a blend of customer deposits and wholesale funding and has a wide variety of customers and industries in its portfolio. The Bank also offers services that provide FDIC coverage for its customers in excess of the $250,000 per depositor limit. As of December 31, 2023, the average deposit account size was $103,000, and uninsured deposits excluding those required for debt service were $50.7 million or roughly 11.5% of total deposits.

The Bank’s primary on-balance sheet liquidity consists of cash and cash equivalents along with unpledged available-for-sale investment securities, which totaled $67.4 million as of December 31, 2023. Additionally, the Bank maintains fully collateralized credit facilities with the Federal Home Loan Bank of Chicago (“FHLB”) and the Federal Reserve. As of December 31, 2023, the FHLB credit facility had an available borrowing capacity of $75.5 million with no outstanding balance. The Federal Reserve had an available borrowing capacity of $47,000 with no outstanding balance. In addition, the Bank had $18.5 million in additional borrowing capacity with other financial institutions. In aggregate, total primary on-balance sheet liquidity and total available borrowing capacity was 318% of the amount of uninsured deposits (excluding those required for debt service) as of December 31, 2023.

Additionally, the Bank’s business model includes the origination and sale of GGL loans, a process that occurs each month and can be accelerated or slowed down based on the Bank’s current funding needs. At December 31, 2023, the Bank had $40.4 million in loans available for sale, which could generate additional liquidity as needed.

ASSET QUALITY
The Company’s nonperforming assets to total assets ratio increased from 1.04% at December 31, 2022, to 3.00% at December 31, 2023. Nonaccrual loans at December 31, 2023 increased $11.8 million or 258% as compared to December 31, 2022. The increase was primarily related to one relationship for $7.4 million secured by a property with a value of approximately $12.0 million. We believe there is strong secondary support of the guarantors, and the Bank has not reserved against the loan given the estimated value of the collateral securing the loan. The Bank held $101,000 in foreclosed assets as of December 31, 2023 and December 31, 2022.

During the fourth quarters of 2023 and 2022, the Company recorded provisions for credit losses of $500,000 and ($150,000), respectively. The Company recorded $306,000 in net recoveries during the fourth quarter of 2023 compared to $149,000 in net recoveries for the same period in 2022. Set forth in the table below is certain asset quality information as of the dates indicated:

(Dollars in thousands)	12/31/23			9/30/23			6/30/23			3/31/23			12/31/22
Nonaccrual loans	$	16,303		$	13,887		$	5,586		$	4,485		$	4,552
Foreclosed assets		101			101			315			315			101
90 days past due and still accruing		-			320			476			-			-
Total nonperforming assets	$	16,404		$	14,308		$	6,377		$	4,800		$	4,653
Net charge-offs (recoveries)	$	(306	)	$	(43	)	$	86		$	376		$	(149	)
Annualized net charge-offs (recoveries) to total
average portfolio loans		-0.34	%		-0.05	%		0.11	%		0.49	%		-0.20	%
Ratio of total nonperforming assets to total assets		3.00	%		2.87	%		1.32	%		1.03	%		1.04	%
Ratio of total nonperforming loans to total loans, net
of allowance		4.62	%		4.17	%		1.90	%		1.43	%		1.55	%
Ratio of total allowance for credit losses to total loans (1)		1.93	%		1.77	%		1.87	%		1.88	%		2.23	%
(1) Does not include the Company's reserve for unfunded commitments

NET INTEREST INCOME AND MARGIN
Net interest income for the three months ended December 31, 2023, decreased $4,000 or less than 1% in comparison to the fourth quarter of 2022. Loan yields increased from 7.69% in the fourth quarter of 2022 to 8.54% for the same period in 2023. The increase in yield from the prior year reflected the impact of rate increases by the Federal Open Market Committee (“FOMC”) during that 12-month period in response to current economic conditions, as well as a change in loan mix. Overall cost of funds increased from 0.98% in the fourth quarter of 2022 to 3.33% for the same period in 2023 as average retail and brokered certificate of deposit (“CD”) rates trended up and new CDs were originated at higher market rates. Net interest margin declined from 6.35% during the three months ended December 31, 2022, to 5.26% for the same period in 2023; however, the impact of that decrease was lessened by a period-over-period increase in average earning assets of $76.7 million.

Net interest income increased from $22.0 million in 2022 to $22.7 million in 2023. The increase of $760,000 or 3% in the comparative year periods was due to an increase in average loan volume slightly offset by a decrease in net interest margin. Average loans increased from $331.5 million for the twelve months ended December 31, 2022 to $400.5 million for the same period in 2023. Net interest margin during those same periods decreased from 5.94% in 2022 to 5.47% in 2023.

	Three Months Ended											Year-To-Date
(Dollars in thousands)	12/31/23		9/30/23		6/30/23		3/31/23		12/31/22			12/31/23		12/31/22
Average balances:
Loans	$	400,502	$	373,847	$	357,272	$	345,651	$	331,508		$	369,318	$	314,400
Available-for-sale securities	19,709		18,609		18,208		17,691		17,446			18,554		19,877
Other interest-bearing balances	25,821		26,670		29,445		28,998		20,367			27,734		35,108
Total interest-earning assets	446,032		419,126		404,925		392,340		369,321			415,606		369,385
Total assets	510,760		484,190		472,169		460,412		436,695			481,883		435,453
Noninterest-bearing deposits	79,986		80,390		78,676		98,555		113,851			84,402		97,863
Interest-bearing liabilities:
Interest-bearing deposits	314,726		300,109		288,972		251,281		212,069			288,772		231,247
Borrowings	5,326		761		4,505		10,222		8,913			5,204		6,504
Total interest-bearing liabilities	320,052		300,870		293,477		261,503		220,982			293,976		237,751
Common shareholders' equity	97,314		95,362		91,281		88,574		84,831			93,133		88,509
Tangible common equity (1)	79,026		76,907		72,661		69,788		65,879			74,596		69,295
Interest income/expense:
Loans	$	8,623	$	7,877	$	7,511	$	6,997	$	6,422		$	31,008	$	23,479
Available-for-sale securities	115		146		133		120		64			514		362
Interest-bearing balances and other	526		345		392		319		257			1,582		557
Total interest income	9,264		8,368		8,036		7,436		6,743			33,104		24,398
Deposits	3,243		2,743		2,445		1,696		735			10,127		2,312
Borrowings	110		10		56		85		93			261		130
Total interest expense	3,353		2,753		2,501		1,781		828			10,388		2,442
Net interest income	$	5,911	$	5,615	$	5,535	$	5,655	$	5,915		$	22,716	$	21,956
(1) See reconciliation of non-GAAP financial measures.

	Three Months Ended						Year-To-Date
	12/31/23	9/30/23	6/30/23	3/31/23	12/31/22		12/31/23	12/31/22
Average yields and costs:
Loans	8.54%	8.36%	8.43%	8.21%	7.69%		8.40%	7.47%
Available-for-sale securities	2.33%	3.14%	2.92%	2.71%	1.47%		2.77%	1.82%
Interest-bearing balances and other	8.08%	5.13%	5.34%	4.46%	5.01%		5.70%	1.59%
Total interest-earning assets	8.24%	7.92%	7.96%	7.69%	7.24%		7.97%	6.61%
Interest-bearing deposits	4.09%	3.63%	3.39%	2.74%	1.38%		3.51%	1.00%
Borrowings	8.19%	5.21%	4.99%	3.37%	4.14%		5.02%	2.00%
Total interest-bearing liabilities	4.16%	3.63%	3.42%	2.76%	1.49%		3.53%	1.03%
Cost of funds	3.33%	2.86%	2.70%	2.01%	0.98%		2.75%	0.73%
Net interest margin	5.26%	5.32%	5.48%	5.85%	6.35%		5.47%	5.94%

NONINTEREST INCOME
Noninterest income for the three months ended December 31, 2023, was $5.4 million compared to $5.9 million for the same period in 2022. The decrease is primarily attributable to a decrease in government guaranteed lending revenue quarter-over-quarter offset by an increase in the income of Windsor, a subsidiary of the Company and an increase in the value of marketable equity securities.

Specific items to note with respect to the most recently completed quarter include:

• Windsor, which offers an SBA and USDA loan servicing platform, had loan processing and servicing revenue totaling $3.2 million, an increase of $331,000 or 12% as compared to the $2.8 million in income earned during the prior fourth quarter.

• Government Guaranteed Lending revenue was $1.3 million in the fourth quarter of 2023, a decrease of $782,000 or 37% in comparison to the $2.1 million of revenues for the same period in 2022.

• The Company recorded an increase in the fair value of marketable equity securities of $578,000 during the fourth quarter of 2023 to reflect the value of warrants held in Dogwood State Bank.
  

On a year-to-date basis, noninterest income has decreased $3.5 million or 12%. The decrease is primarily the result of the difference in each period’s mark-to-market income adjustment on the Company’s equity investment in Dogwood State Bank due to successful capital raises for Dogwood in the first quarter of both years. The capital raises helped to establish new market values. The prior year’s first quarter had a positive mark-to-market of $6.0 million compared to $2.6 million for the current year.

NONINTEREST EXPENSE
Noninterest expense for the fourth quarter of 2023 was $7.2 million, a decrease of $2.7 million or 27%, from $9.8 million for the fourth quarter of 2022. Most notably, compensation expense decreased $1.6 million or 26% going from $6.2 million in the fourth quarter of 2022 down to $4.6 million for the same period in 2023. In addition, other operating expenses decreased from $1.2 million in the fourth quarter of 2022 to $720,000 for the same period in 2023. The decrease primarily reflected a recovery of $582,000 worth of previously paid litigation expenses, which were recognized in the third quarter of 2022 in connection with the Company’s agreement to settle the litigation.

Loan and special asset related expenses, which tend to fluctuate unexpectedly, increased by $570,000 or 1000% from $57,000 in the fourth quarter of 2022 to $627,000 for the same period in 2023.

The result of the decrease in total noninterest expense was a significant improvement in the efficiency ratio, which decreased from 83.5% during the fourth quarter of 2022 to 63.7% for the same period in 2023.

On a year-to-date basis, noninterest expenses decreased from $50.8 million for the twelve months ended December 32, 2022 to $31.3 million for the same period in 2023, a decrease of $19.5 million or 38%. Other operating expenses was the biggest driver in the overall decrease, which declined by $11.1 million period-over-period again reflecting the impact of the litigation expense recognized in the third quarter of 2022. Compensation expense was a secondary driver of the decrease in total noninterest expenses, declining to $19.9 million for the year ended December 31, 2023 from $26.4 million in the same period in 2022, a decrease of $6.4 million or 24%.

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; that the value realized upon the sale of any foreclosed assets may be less than anticipated, whether due to change in collateral value, inaccurate valuation assumptions or otherwise; 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 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; recent adverse developments in the banking industry highlighted by high-profile bank failures and the potential impact of such developments on customer confidence, liquidity, our strategic initiatives, and regulatory response to these developments; 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.

Consolidated Balance Sheets
				Ending Balance
(In thousands, unaudited)				12/31/23			9/30/23			6/30/23			3/31/23			12/31/22
Assets
Cash and due from banks				$	3,541		$	5,019		$	3,582		$	6,986		$	7,553
Interest-bearing deposits					60,166			28,746			39,258			21,224			26,430
	Total cash and cash equivalents				63,707			33,765			42,840			28,210			33,983
Interest-bearing time deposits					-			-			750			999			999
Available-for-sale securities					22,668			17,827			18,977			17,504			17,712
Marketable equity securities					19,597			19,980			19,980			19,980			17,982
Loans held for sale					40,424			37,857			33,232			39,088			34,302
Loans held for investment					359,729			346,842			325,673			319,465			300,764
	Allowance for credit losses				(6,936	)		(6,128	)		(6,086	)		(6,011	)		(6,709	)
		Loans held for investment, net			352,793			340,714			319,587			313,454			294,055
Premises and equipment, net					3,756			3,910			3,960			4,041			4,098
Foreclosed assets					101			101			315			315			101
Loan servicing assets					3,966			3,813			3,717			3,604			3,715
Bank-owned life insurance					4,688			4,663			5,087			5,053			5,357
Accrued interest receivable					3,754			3,664			3,280			3,090			2,997
Goodwill					13,161			13,161			13,161			13,161			13,161
Other intangible assets, net					5,018			5,184			5,350			5,517			5,682
Other assets					13,930			14,570			11,872			13,243			13,719
			Total assets	$	547,563		$	499,209		$	482,108		$	467,259		$	447,863
Liabilities and Shareholders' Equity
Liabilities
Deposits:
	Noninterest-bearing			$	90,194		$	84,901		$	82,272		$	76,554		$	106,255
	Interest-bearing				345,483			307,467			296,805			279,735			206,872
		Total deposits			435,677			392,368			379,077			356,289			313,127
Borrowings					-			-			-			10,000			30,000
Accrued interest payable					1,346			1,042			1,014			806			379
Other liabilities					10,209			9,409			7,655			10,101			17,600
	Total liabilities				447,232			402,819			387,746			377,196			361,106
Shareholders' equity:
Common stock, voting					2,273			2,275			2,231			2,231			2,239
Common stock, non-voting					22			22			22			22			22
Additional paid in capital					25,809			25,503			25,253			25,137			24,916
Retained earnings					74,347			71,565			69,165			65,570			62,611
Accumulated other comprehensive loss					(2,120	)		(2,975	)		(2,309	)		(2,198	)		(2,301	)
	Total IFH, Inc. shareholders' equity				100,331			96,390			94,362			90,762			87,487
Noncontrolling interest					-			-			-			(699	)		(730	)
	Total shareholders' equity				100,331			96,390			94,362			90,063			86,757
			Total liabilities and shareholders' equity	$	547,563		$	499,209		$	482,108		$	467,259		$	447,863

Consolidated Statements of Income
(In thousands except per	Three Months Ended														Year-To-Date
share data; unaudited)	12/31/23			9/30/23		6/30/23			3/31/23		12/31/22				12/31/23		12/31/22
Interest income
Loans	$	8,623		$	7,877	$	7,511		$	6,997	$	6,422			$	31,008	$	23,479
Available-for-sale securities and other		641			491		525			439		321				2,096		919
Total interest income		9,264			8,368		8,036			7,436		6,743				33,104		24,398
Interest expense
Interest on deposits		3,243			2,743		2,445			1,696		735				10,127		2,312
Interest on borrowings		110			10		56			85		93				261		130
Total interest expense		3,353			2,753		2,501			1,781		828				10,388		2,442
Net interest income		5,911			5,615		5,535			5,655		5,915				22,716		21,956
Provision for credit losses		500			50		130			565		(150	)			1,245		810
Noninterest income
Loan processing and servicing
revenue		3,180			2,779		2,660			2,439		2,849				11,058		9,592
Mortgage		-			-		-			-		99				-		1,815
Government guaranteed lending		1,313			1,953		3,576			904		2,095				7,746		8,199
SBA documentation preparation fees		-			-		-			-		2				-		352
Service charges on deposits		35			41		52			133		240				261		644
Bank-owned life insurance		25			128		34			555		26				742		111
Change in fair value of marketable
equity securities		578			-		-			1,998		-				2,576		5,994
Other noninterest income		231			152		1,434			566		549				2,383		1,576
Total noninterest income		5,362			5,053		7,756			6,595		5,860		-		24,766		28,283
Noninterest expense
Compensation		4,583			4,403		5,379			5,581		6,168				19,946		26,380
Occupancy and equipment		355			314		318			344		303				1,331		1,303
Loan and special asset expenses		627			664		346			293		57				1,930		2,155
Professional services		(161	)		433		446			448		676				1,166		1,925
Data processing		252			233		247			265		272				997		1,055
Software		492			446		469			469		467				1,876		1,778
Communications		50			65		68			78		83				261		349
Advertising		99			108		174			248		211				629		998
Amortization of intangibles		166			166		166			166		169				664		679
Merger related expenses		-			-		61			116		192				177		753
Other operating expenses		720			591		486			489		1,236				2,286		13,396
Total noninterest expense		7,183			7,423		8,160			8,497		9,834				31,263		50,771
Income (loss) before income taxes		3,590			3,195		5,001			3,188		2,091				14,974		(1,342	)
Income tax expense (benefit)		808			795		1,416			778		(454	)			3,797		(1,205	)
Net income (loss)		2,782			2,400		3,585			2,410		2,545				11,177		(137	)
Noncontrolling interest		-			-		(10	)		58		182				48		62
Net income (loss) attributable
to IFH, Inc.	$	2,782		$	2,400	$	3,595		$	2,352	$	2,363			$	11,129	$	(199	)
Basic earnings (loss) per common share	$	1.24		$	1.08	$	1.62		$	1.06	$	1.08			$	5.00	$	(0.09	)
Diluted earnings (loss) per common share	$	1.22		$	1.06	$	1.60		$	1.04	$	1.04			$	4.91	$	(0.09	)
Weighted average common shares
outstanding		2,244			2,224		2,220			2,211		2,194				2,225		2,178
Diluted average common shares
outstanding		2,284			2,265		2,252			2,265		2,267				2,266		2,257

Performance Ratios
		Three Months Ended																Year-To-Date
		12/31/23			9/30/23			6/30/23			3/31/23			12/31/22				12/31/23			12/31/22
PER COMMON SHARE
	Basic earnings (loss) per common share	$	1.24		$	1.08		$	1.62		$	1.06		$	1.08			$	5.00		$	(0.09	)
	Diluted earnings (loss) per common share		1.22			1.06			1.60			1.04			1.04				4.91			(0.09	)
	Book value per common share		43.72			41.98			41.90			40.28			38.69				43.72			38.69
	Tangible book value per common share (2)		35.80			33.99			33.68			31.99			30.36				35.80			30.36
FINANCIAL RATIOS (ANNUALIZED)
	Return on average assets		2.16	%		1.97	%		3.05	%		2.07	%		2.15	%			2.31	%		-0.05	%
	Return on average common shareholders'
	equity		11.34	%		9.98	%		15.80	%		10.77	%		11.05	%			11.95	%		-0.22	%
	Return on average tangible common
	equity (2)		13.97	%		12.38	%		19.84	%		13.67	%		14.23	%			14.92	%		-0.29	%
	Net interest margin		5.26	%		5.32	%		5.48	%		5.85	%		6.35	%			5.47	%		5.94	%
	Efficiency ratio (1)		63.7	%		69.6	%		61.4	%		69.4	%		83.5	%			65.8	%		101.1	%
	(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, 2023, were as follows:

			% of
			Commercial
(Dollars in millions)	Amount		Loans
Solar electric power generation	$	84.8	27%
Power and communication line and related structures construction		65.6	21%
Lessors of nonresidential buildings (except miniwarehouses)		15.2	5%
Other activities related to real estate		11.9	4%
Postharvest Crop Activities		8.6	3%
Biomass electric power generation		8.2	3%
Colleges, universities and professional schools		7.5	2%
Lessors of other real estate property		7.4	2%
Lessors of residential buildings and dwellings		6.6	2%
Assisted living facilities for the elderly		5.7	2%
	$	221.5	71%

Reconciliation of Non-GAAP Measures

	12/31/23			9/30/23			6/30/23			3/31/23			12/31/22
	(Dollars in thousands except book value per share)
Tangible book value per common share
Total IFH, Inc. shareholders' equity	$	100,331		$	96,390		$	94,362		$	90,762		$	87,487
Less: Goodwill		13,161			13,161			13,161			13,161			13,161
Less Other intangible assets, net		5,018			5,184			5,350			5,517			5,682
Total tangible common equity	$	82,152		$	78,045		$	75,851		$	72,084		$	68,644
Ending common shares outstanding		2,295			2,296			2,252			2,253			2,261
Tangible book value per common share	$	35.80		$	33.99		$	33.68		$	31.99		$	30.36
	Three Months Ended																Year-To-Date
(Dollars in thousands)	12/31/23			9/30/23			6/30/23			3/31/23			12/31/22				12/31/23			12/31/22
Return on average tangible common equity
Average IFH, Inc. shareholders' equity	$	97,314		$	95,362		$	91,281		$	88,574		$	84,831			$	93,133		$	88,509
Less: Average goodwill		13,161			13,161			13,161			13,161			13,161				13,161			13,161
Less Average other intangible assets, net		5,127			5,294			5,459			5,625			5,791				5,376			6,053
Average tangible common equity	$	79,026		$	76,907		$	72,661		$	69,788		$	65,879			$	74,596		$	69,295
Net income (loss) attributable to IFH, Inc.	$	2,782		$	2,400		$	3,595		$	2,352		$	2,363			$	11,129		$	(199	)
Return on average tangible common equity		13.97	%		12.38	%		19.84	%		13.67	%		14.23	%			14.92	%		-0.29	%

Contact: Steve Crouse, 919-861-8018