SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the Quarter Ended March 31, 1997
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from ----- to -----
Commission File Number 0-21687
IFB HOLDINGS, INC.
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(Exact name of Registrant as specified in its Charter)
Delaware 43-1760023
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(State or other jurisdiction of (I.R.S. Employer Identification
incorporation or organization) Number)
522 Washington Street, Chillicothe, Missouri 64601
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:
(816) 646-3733
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes (x) No ( )
Indicate the number of shares outstanding of each of the issuer's
common stock as of the latest practicable date.
Class Outstanding at March 31, 1997
- -----------------------------------------------------------------
Common stock, $01 par value 592,523
<PAGE>
IFB HOLDINGS, INC.
FORM 10-QSB
Index
Part I. Financial Information
<TABLE>
<S> <C> <C>
Item 1 Financial Statements Page
Consolidated Statements of Financial Condition
as of March 31, 1997 (unaudited) and
June 30, 1996 2
Consolidated Statements of Income for the Three
Months ended March 31, 1997 and 1996 and for the
Nine Months ended March 31, 1997 and 1996
(unaudited) 3
Consolidated Statements of Changes in Stockholders'
Equity for the Nine Months ended March 31, 1997
(unaudited) 4
Consolidated Statements of Cash Flows for the
Nine Months ended March 31, 1997 and 1996
(unaudited) 5
Notes to Unaudited Consolidated Financial
Statements 7
Item 2 Management's Discussion and Analysis of
Financial Condition and Results of Operations 9
Part II. Other Information
Item 1 Legal Proceedings 14
Item 2 Changes in Securities 14
Item 3 Default upon Senior Securities 14
Item 4 Submission of Matters to a Vote of Security
Holders 14
Item 5 Other Information 14
Item 6 Exhibits and Reports on Form 8-K 14
Signature Page 15
</TABLE>
<PAGE>
IFB HOLDINGS, INC.
Consolidated Statements of Financial Condition
<TABLE>
March 31, June 30,
1997 1996
(Unaudited)
ASSETS (In thousands)
<S> <C> <C>
Cash on hand and noninterest-earning deposits $ 563 $ 471
Interest-earning deposits in other institutions 1,872 1,609
Investment securities:
Securities available-for-sale at fair value 3,472 3,264
Securities held-to-maturity at amortized cost 2,195 215
Mortgage-backed and related securities
available-for-sale, at fair value 16,499 16,971
Loans receivable, net 28,521 28,429
Accrued interest receivable 416 457
Investment required by law:
FHLB stock, at cost 774 724
FRB stock, at cost 83 -
Premises and equipment 337 373
Other assets 82 74
Total assets $ 54,814 $ 52,587
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits $ 35,315 $ 35,495
Advances from Federal Home Loan Bank 10,681 13,474
Advances from borrowers for taxes and insurance 23 35
Income taxes payable 138 118
Accrued expenses and other liabilities 129 197
Total liabilities $ 46,286 $ 49,319
Preferred stock, $.01 par value;
authorized 100,000 shares; none outstanding $ - $ -
Common stock, $.01 par value; authorized 900,000
shares, issued 592,523 shares at March 31, 1997
and 0 shares at June 30, 1996 59 -
Additional paid-in capital 5,472 -
Retained earnings, substantially restricted 3,512 3,339
Less:
Common stock acquired by the ESOP (440) -
Unrealized loss on securities available-for-sale,
net of applicable deferred income taxes (75) (71)
Total stockholders' equity $ 8,528 $ 3,268
Total liabilities and stockholders' equity $ 54,814 $ 52,587
</TABLE>
See accompanying Notes to Unaudited Consolidated Financial Statements
<PAGE>
IFB HOLDINGS, INC.
Consolidated Statements of Income
(Unaudited)
<TABLE>
Three Months Ended Nine Months Ended
March 31, March 31,
1997 1996 1997 1996
(In thousands (In thousands
except share data) except share data)
<S> <C> <C> <C> <C>
Interest income:
Loans receivable $ 581 $ 586 $ 1,761 $ 1,673
Investment securities 74 53 194 133
Mortgage-backed and related securities 266 312 848 817
Other interest-earning assets 40 12 71 28
Total interest income 961 963 2,874 2,651
Interest expense:
Deposits 393 407 1,217 1,230
FHLB Advances 163 190 560 422
Total interest expense 556 597 1,777 1,652
Net interest income 405 366 1,097 999
Provision for loan losses - - - 4
Net interest income after provision
for loan losses 405 366 1,097 995
Noninterest income:
Fees and service charges 49 58 159 204
Gain on sales or mortgage-backed
securities 5 - 14 39
Other 9 9 31 11
Total noninterest income 63 67 204 254
Noninterest expense:
Compensation and benefits 167 172 493 454
Occupancy and equipment 26 22 79 52
SAIF deposit insurance premiums 1 21 277 68
Other 62 61 167 196
Total noninterest expense 256 276 1,016 770
Income before income taxes 212 157 285 479
Income tax expense 82 55 112 170
Net income 130 102 173 309
Pro form earnings per share:
Primary and fully diluted $0.24 n/a $0.32 n/a
Pro forma weighted average number of
shares outstanding:
Primary and fully diluted 547,333 n/a 547,333 n/a
</TABLE>
See accompanying Notes to Unaudited Consolidated Financial Statements
<PAGE>
IFB HOLDINGS, INC.
Consolidated Statements of Changes in Stockholders' Equity
(Unaudited)
<TABLE>
Unrealized
Gain (Loss)
Securities
Available-
For-Sale,
Net of
Common Applicable
Additional Stock Deferred
Common Paid-In Retained Acquired Income
Stock Capital Earnings by ESOP Taxes Total
(In thousands)
Nine Months Ended
March 31, 1997
<S> <C> <C> <C> <C> <C> <C>
Balance at June 30, 1996 $ - $ - $3,339 $ - ($71) $3,268
Additions (deductions) for
the nine months ended
March 31, 1997
Net income - - 173 - - 173
Net proceeds from sale
of common stock 59 5,463 - (474) - 5,048
Compensation expense
related to ESOP - 9 - - - 9
Reduction of ESOP
obligation - - - 34 - 34
Unrealized gain (loss) on
securities available-for-
sale, net of deferred
Income tax of $2,000 - - - - (4) (4)
Balance, March 31, 1997 $59 $5,472 $3,512 ($440) ($75) $8,528
</TABLE>
See accompanying Notes to Unaudited Consolidated Financial Statements
<PAGE>
IFB HOLDINGS, INC.
Consolidated Statements of Cash Flows
(Unaudited)
<TABLE>
Nine Months Ended
March 31,
1997 1996
(In thousands)
<S> <C> <C>
Cash flow from operating activities:
Net income $ 173 $ 309
Adjustments to reconcile net earnings to
net cash provided by operating activities:
Provision for loan losses - 4
Net loss (gain) on sale of investments (9) (39)
Depreciation 40 21
Amortization of premiums and discounts 13 10
Compensation expense related to ESOP 43 -
FHLB Stock dividend - 9
Decrease (increase) in interest receivable 41 (81)
Decrease (increase) in other assets (8) (6)
Increase (decrease) in income tax payable 20 91
Increase (decrease) in other liabilities (68) 181
Net cash provided by operating activities $ 245 $ 481
Cash flow from investing activities:
Loans purchased (1,313) (2,544)
(Increase) decrease in loans, net 1,224 209
Proceeds from sales of available-for-sale mortgage-
backed securities and related securities 1,857 1,214
Proceeds from maturities of certificates of deposit - 100
Proceeds from maturities of investment securities - 500
Purchase of held-to-maturity investment securities (1,975) -
Purchase of available-for-sale investment securities
and certificates of deposit (159) (1,060)
Principal collected on repayments and maturities of
available-for-sale mortgage-backed securities 2,097 1,880
Purchase of available-for-sale mortgage-backed
and related securities (3,548) (6,834)
Purchase of FHLB and FRB stock (132) (266)
Purchase of equipment (4) (140)
Net cash provided (used) by investing activities ($1,953) ($6,941)
Cash flows from financing activities:
Net proceeds from issuance of common stock 5,048 -
Net increase (decrease) in deposits (180) 63
Net increase (decrease) in advances from
borrowers for taxes and insurance (12) (20)
Proceeds from FHLB advances 12,450 16,400
Principal payments on FHLB advances (15,243) (10,332)
Net cash provided (used) by financing activities 2,063 6,111
Increase (decrease) in cash and cash equivalents 355 (349)
Cash and cash equivalents at beginning of period 2,080 2,300
Cash and cash equivalents at end of period $2,435 $1,951
</TABLE>
<PAGE>
IFB HOLDINGS, INC.
Consolidated Statements of Cash Flows
(Unaudited)
<TABLE>
Nine Months Ended
March 31,
1997 1996
(In thousands)
<S> <C> <C>
Supplemental cash flow disclosures:
Cash paid for:
Interest $924 $720
Income Taxes $ 90 $104
Noncash activity:
Loans transferred to real estate owned
</TABLE>
See accompanying Notes to Unaudited Consolidated Financial Statements
<PAGE>
IFB HOLDINGS, INC.
Notes to Unaudited Consolidated Financial Statements
(1) Basis of Presentation
The accompanying unaudited consolidated financial statements
have been prepared in accordance with Generally Accepted
Accounting Principles (GAAP) for interim financial
information and with the instructions to Form 10-QSB and
Article 10 of Regulation S-X. Accordingly, they do not
include all of the information and footnotes required by
GAAP for complete financial statements. In the opinion of
management, all adjustments (consisting of only normal
recurring accruals) necessary for a fair presentation have
been included. The results of operations and other data for
the nine month period ended March 31, 1997 are not
necessarily indicative of results that may be expected for
the entire fiscal year ending June 30, 1997.
The unaudited consolidated financial statements include the
amounts of IFB Holdings, Inc. (the "Holding Company") and
its wholly-owned subsidiary, Investors Federal Bank,
National Association, (the "Bank"), and the Bank's wholly-
owned subsidiary, Investors Federal Service Corporation for
the nine months ended March 31, 1997. The consolidated
financial statements for the prior periods include accounts
of the Bank and its subsidiaries. Material intercompany
accounts and transactions have been eliminated in
consolidation.
(2) Conversion to Stock Ownership and National Bank
The Board of Directors of the Bank, on September 23, 1996,
unanimously adopted a Plan of Conversion pursuant to which
the Bank converted from a federally chartered mutual savings
bank to a federally chartered stock savings bank, with the
concurrent formation of the Holding Company. The Holding
Company, on December 30, 1996, sold 592,523 shares of
common stock at $10.00 per share during the subscription
offering. The proceeds from the conversion, after
recognizing conversion expenses and underwriting costs of
approximately $403,000, were $5,522,000 and are recorded as
common stock and additional paid in capital on the
accompanying unaudited consolidated statement of financial
condition. The Holding Company utilized approximately
$2,762,000 of the net proceeds to purchase all of the
capital stock of the Bank.
On January 30, 1997, the Bank changed its charter from a
federally chartered savings bank to a national bank.
The Bank has established for eligible employees an Employee
Stock Ownership Plan ("ESOP") in connection with the
conversion. The ESOP borrowed $474,010 from the Holding
Company and purchased 47,401 common shares issued in the
conversion. The Bank is making the scheduled discretionary
cash contributions to the ESOP sufficient to service the
amount borrowed. To date, the Bank has made payments of
$43,255 ($33,960 principal) to the Holding Company. The
$440,050 ESOP obligation ($474,010 in stock issued by the
Holding Company on December 30, 1996 less the principal
payments made by the Bank) is reflected in the accompanying
consolidated financial statements as a charge to unearned
compensation and a credit to common stock and paid-in
capital. The unamortized balance of unearned compensation
is shown as a deduction of stockholders' equity. The unpaid
balance of the ESOP loan is eliminated in consolidation.
<PAGE>
(3) Pro Forma Earnings Per Share
On December 30, 1996, 592,523 shares of the Company's stock
were issued, including 47,401 shares issued to the ESOP.
Earnings per share amounts for the three month and nine
month periods ended March 31, 1997 are based upon 547,333
shares, exclusive of unallocated shares issued to the ESOP,
as though those shares were outstanding for the entire
period. The computation does not reflect the pro forma
effects of the investment income that would have been earned
had the net proceeds from conversion been received at the
beginning of the nine month period.
(4) Commitments and Contingencies
Commitments to originate and purchase mortgage loans of
$859,000 at March 31, 1997, represent amounts which the Bank
plans to fund within the normal commitment period of sixty
to ninety days. As of March 31, 1997, the Bank had no
commitments to purchase mortgage-backed securities, CMOs or
investment securities. The Bank had no commitments
outstanding to sell mortgage loans, mortgage-backed
securities, CMOs or investment securities at March 31,
1997.
(6) Reclassifications
None.
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
General
IFB Holdings, Inc. was organized, as a Delaware corporation,
in October 1996 at the direction of the Bank's Board of Directors
to acquire all of the capital stock that the Bank issued upon its
conversion from mutual to stock form of ownership. The business
of the Holding Company consists primarily of the business of the
Bank. There are no current arrangements, understandings or
agreements to expand its business activities or make any business
acquisitions.
Investors Federal Bank, National Association was originally
founded in 1934 as a federally chartered savings and loan
association located in Chillicothe, Missouri under the name
Chillicothe Federal Savings and Loan Association. In 1974, the
Bank changed its name to Investors Federal Savings and Loan
Association, and in 1988 the Bank changed its name to Investors
Federal Bank and Savings Association. On December 30, 1996, the
Bank completed a conversion from mutual to stock ownership. On
January 30, 1997, the Bank changed its charter to a national bank
charter and its name to Investors Federal Bank, National
Association. Its deposits are insured up to the maximum
allowable amount by the Federal Deposit Insurance Corporation
(the "FDIC"). The Bank serves Livingston, Caldwell, and Daviess
Counties, Missouri. The Bank conducts business through its main
office and two branches located in Hamilton and Gallatin,
Missouri.
The Bank's business strategy is to operate as a well-
capitalized, profitable and independent community financial
institution dedicated to home-mortgage lending and to providing
quality service to its customers. The Bank intends to implement
this strategy by (i) closely monitoring the needs of its
customers and providing quality service; (ii) maintaining asset
quality; (iii) utilizing investments in mortgage-backed
securities and other investment securities to invest excess funds
and to increase net interest income; (iv) maintaining capital in
excess of the regulatory requirements; (v) attempting to increase
the Bank's earnings; (vi) managing interest rate risk by
attempting to match asset and liability maturities and rates.
The earnings of the Bank depend primarily on its net
interest income, which is the difference between interest earned
on its loans and investments and the interest paid on its
interest-bearing liabilities, consisting of deposits and FHLB
advances. The Bank, like other financial institutions, is
subject to interest-rate risk to the degree that its interest-
earning assets mature or reprice at different times, or on
different bases, than its interest-bearing liabilities. The
Bank's operating results are also affected by the amount of its
noninterest income, including gain on the sales of investments,
service charges, and other income. Non-interest expense consists
primarily of employee compensation, occupancy expenses, FDIC
insurance premiums and other general and administrative expenses.
The Bank's operating results are significantly affected by
general economic and competitive conditions, in particular, the
changes in market interest rates, government policies and actions
by regulatory authorities.
Liquidity and Capital Resources
The Bank's most liquid assets are cash and cash equivalents,
which includes short-term investments. The levels of these
assets are dependent on the Bank's lending, investing, operating,
and deposit activities during any given period. At March 31,
1997 and June 30, 1996, cash and cash equivalents totalled $2.4
million and $2.1 million, respectively.
The Bank's primary sources of funds are deposits, FHLB
advances, repayments on loans, the
maturity of investment securities and income from operations.
While maturity and scheduled
<PAGE>
amortization of loans and investment securities are predictable
sources of funds, deposit inflows and mortgage prepayments are
greatly influenced by local conditions, general interest rates
and regulatory changes.
The primary investment activity of the Bank is the
origination and purchase of mortgage loans. Another investment
activity of the Bank is the investment of funds in U.S. agency
bonds, mortgage-backed and related securities, collateralized
mortgage obligations and FHLB overnight funds. During periods
when the Bank's loan demand is limited, the Bank may purchase
short-term investment securities to obtain a higher yield than
otherwise available.
At March 31, 1997, the Bank had outstanding loan commitments
of $859,000. The Bank anticipates it will have sufficient funds
available to meet its commitments. Certificates of deposit that
were scheduled to mature in one year or less at March 31, 1997
were $13.3 million. Management believes that a significant
portion of such deposits will remain with the Bank.
Under federal law, the Bank is required to meet certain
leverage and risk-based capital requirements. The leverage ratio
requires a minimum ratio of "Tier 1 capital" to adjusted total
assets. At March 31, 1997, the Bank exceeded both of the
capital requirements. The Bank's capital ratios were: 11.13%
leverage capital and 27.14% risk-based capital. The Bank had
"Tier 1 capital" of $5.8 million at March 31, 1997 and risk-
based capital of $6 million.
Financial Condition
Total assets increased $2.2 million, or 4.2%, to $54.8
million at March 31, 1997 from $52.6 million at June 30, 1996.
This was primarily the result of increases of $2 million, or
930.2%, in investment securities held-to-maturity. The increase
in investment securities held-to-maturity was due to the sale of
IFB Holdings, Inc. common stock, which generated net proceeds of
$5 million on December 30, 1996, after deducting a $474,010 loan
by IFB Holdings, Inc. for the purchase of common stock by the
Employee Stock Ownership Plan.
FHLB Advances decreased $2.8 million, or 20.7%, to $10.7
million at March 31, 1997, from $13.5 million at June 30, 1996.
Proceeds from the sales of mortgage-backed and related
securities as well as proceeds from the sale of IFB Holdings,
Inc. common stock were used to pay down the advances.
Total equity increased $5.2 million, or 157.6%, from $3.3
million at June 30, 1996 to $8.5 million at March 31, 1997. The
increase was primarily due to the sale of IFB Holdings, Inc.
common stock. In addition, net income during the nine months
ended March 31, 1997 was $173,000 and net unrealized loss on
investment securities available-for-sale, net of taxes, increased
$4,000.
Asset Quality
The Bank regularly reviews interest earning assets to
determine proper valuation. Management's monitoring of the asset
portfolio includes reviews of historical loss experience, known
and inherent risks in the portfolio, the value of any underlying
collateral, prospective economic conditions and the regulatory
environment. The Banks non-accrual mortgage loans decreased from
$118,000 at June 30, 1996 to $90,000 at March 31, 1997.
The table on the following page sets forth information
regarding the Bank's non-accrual loans and foreclosed real estate
at the dates indicated. The Bank discontinues accruing interest
on delinquent loans no later than ninety days past due. At March
31, 1997, the Bank has no restructured loans within the meaning
of Financial Accounting Standards Board Statement of Financial
Accounting Standards No. 15.
<PAGE>
IFB HOLDINGS, INC.
Asset Quality
<TABLE>
March 31, June 30,
1997 1996
<S> <C> <C>
Non-accrual mortgage loans
delinquent more than 90 days $ 90 $118
Non-accrual other loans
delinquent more than 90 days 1 10
Total non-performing loans 91 128
Real estate owned and in-
substance foreclosed loans,
net of allowance 0 0
Total non-performing assets $ 91 $128
Non-performing loans to
total loans 0.32% 0.45%
Non-performing assets to
total assets 0.17% 0.24%
Allowance for loan losses
to non-performing loans 314.29% 220.79%
</TABLE>
<PAGE>
Results of Operations
Comparisons of quarterly results in this section are between
the three month periods ended March 31, 1997, and March 31, 1996
and between the nine month periods then ended.
General
Net income for the third quarter ended March 31, 1997 was
$130,000, an increase of $28,000 or 27.5% from the $102,000 net
income for the third quarter ended March 31, 1996. Net income
for the nine months ended March 31, 1997, was $173,000, a
decrease of $136,000 or 44% from the $309,000 net income for the
comparable period ended March 31, 1996.
Interest Income
There was little change in interest income of $961,000 for
the quarter ended March 31, 1997, as compared to $963,000 for the
quarter ended March 31, 1996. However, interest on investment
securities increased $21,000, or 39.6% from $53,000 for the
quarter ended March 31, 1996, to $74,000 for the quarter ended
March 31, 1997 due to the increase in the amount of investment
securities owned during the period. In addition, interest on
other earning assets increased $28,000, or 233.3% from $12,000
for the quarter ended March 31, 1996, to $40,000 for the quarter
ended March 31, 1997. The increase was a result of the proceeds
from the conversion temporarily being invested in interest
earning deposits in other institutions. Interest income for the
nine months ended March 31, 1997 was $2.9 million, an increase of
$200,000, or 7.4% over the same period ended March 31, 1996.
The increase resulted primarily from an increase in interest on
loans receivable, investment securities, and other interest
earning assets. Interest on mortgage loans increased $88,000, or
5.3% for the nine months ended March 31, 1997 as compared to the
same period ended March 31, 1996. Interest on investment
securities increased $61,000, or 45.9%, from $133,000 to $194,000
for the nine months ended March 31, 1997. Interest on other
interest earning assets increased 43,000, or 153.6% for the nine
months ended March 31, 1997 compared to the same period ending
March 31, 1996.
Interest Expense
Interest expense for the quarter ended March 31, 1997 was
$556,000 as compared to $597,000 for the quarter ended March 31,
1996, a decrease of $41,000, or 6.9%. Interest on advances from
FHLB was $163,000 for the three months ended March 31, 1997, as
compared to $190,000 for the same period ended March 31, 1996, a
decrease of $27,000 or 14.2%. The decrease was due to a decrease
in the amount of advances outstanding during the three month
period. Interest expense for the nine months ended March 31,
1997 was $1.8 million as compared to $1.7 million for the nine
months ended March 31, 1996, an increase of 5.9%. The increase
is the result of increases in Federal Home Loan Bank advances
over the comparable period last year.
Net Interest Income
Net interest income before provisions for loan losses was
$405,000 for the quarter ended March 31, 1997, as compared to
$366,000 for the quarter ended March 31, 1996, an increase of
$39,000 or 10.7%. Net interest income before provisions for loan
losses was $1.1 million for the nine months ended March 31, 1997,
as compared to $999,000 for the nine months ended March 31,
1996, an increase of $101,000 or 10.1%.
Noninterest Income
Noninterest income was $63,000 for the quarter ended March
31, 1997 as compared to $67,000 for the quarter ended March 31,
1996, a decrease of $4,000 or 6%. Noninterest income was
$204,000 for the nine months
<PAGE>
ended March 31, 1997 as compared to $254,000 for the nine months
ended March 31, 1996, a decease of $50,000 or 19.7%. Gains on
the sales of mortgage-backed and related securities increased
$5,000 for the quarter ended March 31, 1997, as compared to the
quarter ended March 31, 1996, but decreased $25,000, or 64.1% for
the nine months ended March 31, 1997 compared to the same period
ended March 31, 1996. In addition, income from fees and service
charges decreased $9,000 or 15.5% from $58,000 for the three
months ended March 31, 1996, to $49,000 for the three months
ended March 31, 1997. For the nine months ended March 31, 1997,
income from service charges and fees was $159,000, a decrease of
$45,000 or 22% as compared to the same period ended March 31,
1996.
Noninterest expense
Noninterest expense for the quarter ended March 31, 1997
decreased $20,000, or 7.3%, from $276,000 for the quarter ended
March 31, 1996 to $256,000 for the quarter ended March 31, 1997.
The decrease for the quarter ended March 31, 1997, was due to a
decrease of $20,000 in the amount of SAIF insurance premiums as
compared to the same period ended March 31, 1996. Noninterest
expenses for the nine months ended March 31, 1997 was $1 million
as compared to $770,000 for the nine months ended March 31, 1996,
an increase of $230,000 or 29.9%. The increase is due to an
increase of compensation and benefits as well as principal
payments made on the ESOP loan . In addition, for the nine
months ended March 31, 1997, SAIF insurance premiums increased
$209,000 or 307.4% as compared to the nine months ended March 31,
1996, due to a special one-time SAIF assessment incurred on
September 30, 1996.
Provision for Loan Losses
For the three months ended March 31, 1997 and 1996, the
provision for loan losses was not increased. For the nine months
ended March 31, 1997, the provision was not increased as compared
to an increase of $4,000 for the nine months ended March 31,
1996.
Income Tax
The provision for federal and sate income taxes increased
$27,000, or 49.1%, from $55,000 for the quarter ended March 31,
1996, to $82,000 for the quarter ended March 31, 1997. The
increase is due to an increase in income for the quarter. The
provision for federal and state income taxes decreased $58,000 to
$112,000 for the nine months ended March 31, 1997 as compared to
$170,000 for the nine months ended March 31, 1996. The decrease
in income tax expense is due to a decrease in taxable income for
the period.
<PAGE>
IFB HOLDINGS, INC.
Part II -- Other Information
Item 1 Legal Proceedings
The Holding Company and the Bank are not involved in
any pending legal proceedings other than legal
proceedings incident to the business of the Holding
Company and the Bank, which involve amounts in the
aggregate which management believes are immaterial to
the financial condition and results of operations
of the Holding Company and the Bank.
Item 2 Changes in Securities
Not applicable.
Item 3 Default upon Senior Securities
Not applicable.
Item 4 Submission of Matters to a Vote of Security Holders
Not applicable.
Item 5 Other Information
None.
Item 6 Exhibits and Reports on Form 8-K
None.
<PAGE>
IFB HOLDINGS, INC.
Signatures
Pursuant to the requirement of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.
IFB Holdings, Inc.
-----------------------------------
(Registrant)
Dated April 22, 1997 /s/ Earle S. Teegarden, Jr.
-----------------------------------
Earle S. Teegarden, Jr.
President and Chief Executive
Officer
(Duly Authorized Officer)
Dated April 22, 1997 /s/ Sherri Williams
-----------------------------------
Sherri Williams
Vice President and Controller
(Principal Financial Officer)
<PAGE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JUN-30-1997
<PERIOD-END> MAR-31-1997
<CASH> 563
<INT-BEARING-DEPOSITS> 1872
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 19971
<INVESTMENTS-CARRYING> 2195
<INVESTMENTS-MARKET> 2195
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0
0
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</TABLE>
