SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT PURSUANT TO SECTION 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the Quarter Ended December 31, 1996
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OF 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from -------- to --------
Commission File Number 0-21687
IFB HOLDINGS, INC.
--------------------------------------
(Exact name of Registrant as specified in its Charter)
Delaware 43-1760023
------------------ ------------------------------
(State or other (I.R.S. Employer Incorporation
jurisdiction of or Identification Number)
organization)
522 Washington Street, Chillicothe, Missouri 64601
- -------------------------------------------- ----------
(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 ( ) No (X)1
Indicate the number of shares outstanding of each of the issuer's
common stock as of the latest practicable date.
Class Outstanding at December 31, 1996
- --------------------------- --------------------------------
Common stock, $01 par value 592,523
1 Registrant became subject to filing requirements in
connection with a conversion to a stock institution
completed on December 30, 1996.
IFB HOLDINGS, INC. AND SUBSIDIARY
FORM 10-QSB
Index
Part I. Financial Information
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Page
----
Item 1 Financial Statements
Consolidated Statements of Financial Condition
as of December 31, 1996 (unaudited) and
June 30, 1996 2
Consolidated Statements of Income for the
Three Months ended December 31, 1996 and
1995 and for the Six Months ended
December 31, 1996 and 1995 (unaudited) 3
Consolidated Statements of Changes in
Stockholders' Equity for the Six Months
ended December 31, 1996 (unaudited) 4
Consolidated Statements of Cash Flows for
the Six Months ended December 31, 1996 and
1995 (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 15
Item 2 Changes in Securities 15
Item 3 Default upon Senior Securities 15
Item 4 Submission of Matters to a Vote of Security
Holders 15
Item 5 Other Information 15
Item 6 Exhibits and Reports on Form 8-K 15
Signature Page 16
IFB HOLDINGS, INC.
Consolidated Statements of Financial Condition
December 31, June 30,
1996 1996
Assets (unaudited)
- ------- ------------ ---------
Cash on hand and noninterest-earning deposits 401 471
Interest-earning deposits in other institutions 4,893 1,609
Investment securities
Securities available-for-sale at fair value 3,456 3,264
Securities held-to-maturity at amortized cost 215 215
Mortgage-backed and related securities
available-for-sale, at fair value 15,148 16,971
Loans receivable, net 28,690 28,429
FHLB stock 774 724
Accrued interest receivable 379 457
Real estate owned - -
Premises and equipment 347 373
Other assets 43 74
------- -------
Total assets $54,346 $52,587
------- -------
------- -------
Liabilities and Stockholders' Equity
- ------------------------------------
Deposits $34,422 $35,495
Advances from Federal Home Loan Bank 11,197 13,474
Advances from borrowers for taxes and insurance 8 35
Income taxes payable 82 118
Dividends payable - -
Accrued expenses and other liabilities 237 197
------- -------
Total liabilities $45,946 $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
December 31, 1996 and 0 shares at
June 30, 1996 59 -
Additional paid-in capital 5,469 -
Retained earnings, substantially restricted 3,382 3,339
Less:
Common stock acquired by the ESOP (452) -
Unrealized loss on securities available-for-sale,
net of applicable deferred income taxes (58) (71)
------- -------
Total stockholders' equity $ 8,400 $ 3,268
------- -------
Total liabilities and stockholders' equity $54,346 $52,587
------- -------
------- -------
See accompanying Notes to Unaudited Consolidated Financial Statements
IFB HOLDINGS, INC.
Consolidated Statements of Income
Three Months Ended Six Months Ended
December 31 December 31
----------------------- ---------------------
1996 1995 1996 1995
----------------------- ---------------------
(In thousands except (In thousands except
share data) share data)
Interest income:
Loans receivable $ 595 $580 $ 1,181 $1,088
Investment securities 57 40 119 80
Mortgage-backed and
related securities 272 195 582 504
Other interest-earning
assets 22 8 31 16
------- ---- ------- ------
Total interest income 946 823 1,913 1,688
Interest expense:
Deposits 414 410 824 823
FHLB Advances 188 108 398 232
------- ---- ------- ------
Total interest expense 602 518 1,222 1,055
Net interest income 344 305 691 633
Provision for loan losses - - - 4
------- ---- ------- ------
Net interest income after
provision for loan losses 344 305 691 629
Noninterest income:
Fees and service charges 57 62 110 146
Gains on sales of
mortgage-backed securities 9 35 9 39
Other 10 1 22 2
------- ---- ------- ------
Total noninterest income 76 98 141 187
------- ---- ------- ------
Noninterest expense:
Compensation and benefits 191 129 327 281
Occupancy and equipment 34 15 53 30
SAIF deposit insurance
premiums 25 23 275 47
Other 52 63 105 135
------- ---- ------- ------
Total noninterest expense 302 230 760 493
------- ---- ------- ------
Income before income taxes 118 173 72 323
Income tax expense 51 52 29 115
------- ---- ------- ------
Net income $ 67 $121 $ 43 $208
------- ---- ------- ------
------- ---- ------- ------
Pro forma earnings per share:
Primary and fully diluted $ 0.12 n/a $ 0.08 n/a
Pro forma weighted average
number of shares
outstanding:
Primary and fully
diluted 547,333 n/a 547,333 n/a
See accompanying Notes Unaudited Consolidated Financial Statements
PAGE
IFB HOLDINGS, INC.
Consolidated Statements of Changes in Stockholders Equity
(Unaudited)
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
------ ---------- -------- -------- ---------- -----
Balance at June 30, 1996 $ - $ - $3,339 $ - ($71) $3,268
Additions (deductions) for the six
months ended December 31, 1996:
Net income - - 43 - - 43
Net proceeds from sale of common stock 59 5,463 - (474) - 5,048
Compensation expense related to ESOP - 6 - - - 6
Reduction of ESOP obligation - - - 22 - 22
Unrealized gain (loss) on securities
available-for-sale, net of deferred
income tax of $6,000 - - - - $ 13 $ 13
--- ------ ------ ------ ----- ------
Balance, December 31, 1996 $59 $5,469 $3,382 ($452) ($58) $8,400
See accompanying Notes to Unaudited Consolidated Financial Statements
PAGE
IFB HOLDINGS, INC.
Consolidated Statements of Cash Flows
Six Months Ended
December 31,
1996 1995
----------- -------
Cash flows from operating activities:
Net income $ 43 $ 208
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 30 15
Amortization of premiums and discounts 24 9
Excess of fair value over cost of ESOP shares 6 -
ESOP shares allocated 22 -
FHLB stock dividend - (9)
Decrease (increase) in interest receivable 78 (31)
Decrease (increase) in other assets 31 22
Increase (decrease) in income tax payable (36) 114
Increase (decrease) in other liabilities 40 11
------------ ----------
Net cash provided by operating activities $ 229 $ 304
------------ ----------
Cash flow from investing activities:
Loans purchased (626) (2,387)
(Increase) decrease in loans, net 342 (605)
Proceeds from sales of available-for-sale
mortgage-backed securities 1,857 1,214
Proceeds from maturities of certificates of
deposit - 100
Purchase of available-for-sale investments
securities and certificates of deposit (138) (539)
Principal collected on repayments and
maturities of available-for-sale
mortgage-backed and related securities 1,418 1,128
Purchase of available-for-sale mortgage-
backed and related securities (1,485) (4,770)
Purchase of FHLB stock (50) (251)
Purchase of equipment (4) (134)
------------ ----------
Net cash provided (used) by investing
activities $ 1,314 ($6,244)
------------ ----------
Cash flows from financing activities:
Net proceeds from issuance of common stock 5,048 -
Net increase (decrease) in deposits (1,073) (357)
Net increase (decrease) in advances from
borrowers for taxes and insurance (27) (27)
Proceeds from FHLB advances 9,450 11,700
Principal payments on FHLB advances (11,727) (6,119)
------------ ----------
Net cash provided (used) by financing activities $ 1,671 $ 5,197
------------ ----------
Increase (decrease) in cash and cash equivalents $ 3,214 ($743)
Cash and cash equivalents at beginning of period 2,080 2,300
------------ ----------
Cash and cash equivalents at end of period $ 5,294 $ 1,557
------------ ----------
------------ ----------
IFB HOLDINGS, INC.
Consolidated Statements of Cash Flows
(Continued)
Six Months Ended
December 31,
1996 1995
----------- -------
Supplemental cash flow disclosures:
Cash paid for:
Interest $ 681 $ 443
------------ ----------
------------ ----------
Income Taxes $ 72 $ 41
------------ ----------
------------ ----------
Noncash activity:
Loans transferred to real estate owned - -
------------ ----------
------------ ----------
See accompanying Notes to Unaudited Consolidated Financial Statements
IFB HOLDINGS, INC. AND SUBSIDIARY
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 six month period ended December 31, 1996 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 and
Savings Association, (the "Association"), and the
Association's wholly-owned subsidiary, Investors Federal
Service Corporation for the six months ended December 31,
1996. The consolidated financial statements for the prior
periods include accounts of the Association 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 Association, on September 23,
1996, unanimously adopted a Plan of Conversion pursuant to
which the Association 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 Association.
The Association 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 Association is making the scheduled
discretionary cash contributions to the ESOP sufficient to
service the amount borrowed. To date, the Association has
made a discretionary principal payment of $22,110 to the
Holding Company. The $451,900 ESOP obligation ($474,010 in
stock issued by the Holding Company on December 30, 1996
less the principal payments made by the Association) 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.
On January 30, 1997, the Association converted to a National
Bank.
(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 six month
periods ended December 31, 1996 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 three and
six month periods.
(4) Commitments and Contingencies
Commitments to originate and purchase mortgage loans of
$299,000 at December 31, 1996, represent amounts which the
Association plans to fund within the normal commitment
period of sixty to ninety days. As of December 31, 1996,
the Association had no commitments to purchase mortgage-
backed securities, CMOs or investment securities. The
Association had no commitments outstanding to sell mortgage
loans, mortgage-backed securities, CMOs or investment
securities at December 31, 1996.
(6) Reclassifications
None.
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 and Savings 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. 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 is dependent 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
non-interest 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 December 31,
1996 and June 30, 1996, cash and cash equivalents totalled $5.3
million and $2.1 mission, 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 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 Bank is required to maintain minimum levels of liquid
assets as defined by OTS regulations. The current required
liquidity ratio is 5%. The Bank historically has maintained a
level of liquid assets in excess of this regulatory requirement.
The Bank's liquidity ratio was 14.08% at December 31, 1996.
Liquidity management for the Bank is both a daily and long term
function of the Bank's management strategy. In the event that
the Bank should require funds beyond its ability to generate
internally, additional sources of funds are available through the
use of Federal Home Loan Bank advances.
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 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 December 31, 1996, the Bank had outstanding loan
commitments of $299,000. The Bank anticipates it will have
sufficient funds available to meet its commitments. Certificates
of deposit which are scheduled to mature in one year or less at
December 31, 1996 were $13.1 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
tangible, core, and risk based capital requirements. At December
31, 1996, the Bank exceeded each of the three OTS capital
requirements. The Bank's capital ratios were: 10.88% tangible
capital; 10.88% core capital; and 28.61% risk based capital.
The Bank had tangible and core capital of $5.7 million at
December 31, 1996 and risk based capital of $6 million.
Financial Condition
Total assets increased $1.8 million, or 3.3%, to $54.3
million at December 31, 1996 from $52.6 million at June 30, 1996.
This was primarily the result of increases of $3.3 million, or
204.1%, in interest-earning deposits, $261,000, or 0.9%, in
loans receivable, and $192,000, or 5.9%, in investment
securities. Mortgage-backed securities decreased $1.8 million,
or 10.7%. The increase in interest-earning deposits 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. The net proceeds
were temporarily invested in interest-earning deposits in other
institutions.
Deposits decreased $1 million, or 3.02%, to $34.4 million at
December 31, 1996 from $35.5 million at June 30, 1996. Included
in the decrease was $827,000 representing withdrawals for the
purchase of common stock in IFB Holdings, Inc. on December 30,
1996.
FHLB Advances decreased $2.3 million, or 16.9%, to $11.2
million at December 31, 1996 from $13.5 million at June 30,
1996. Proceeds from the sales of mortgage-backed securities were
used to pay down the advances.
Total equity increased $5.1 million, or 157%, from $3.3
million at June 30, 1996 to $8.4 million at December 31, 1996.
The increase was primarily due to the sale of IFB Holdings, Inc.
common stock. In addition, net income during the six months
ended December 31, 1996 was $43,000 and net unrealized loss on
investment securities available-for-sale, net of taxes, decreased
$13,000.
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 $13,000 at December 31, 1996.
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
December 31, 1996, the Bank has no restructured loans within the
meaning of Financial Accounting Standards Board Statement of
Financial Accounting Standards No. 15.
IFB HOLDINGS, INC.
Asset Quality
December 31, June 30,
1996 1996
------------ --------
(Dollars in thousands)
Non-accrual mortgage loans
delinquent more than 90 days $ 13 $ 118
Non-accrual other loans
delinquent more than 90 days 0 10
Total non-performing loans 13 128
Real estate owned and in-
substance foreclosed loans
net of related allowance 0 0
Total non-performing assets $ 13 $ 128
Non-performing loans to total
loans 0.05% 0.45%
Non-performing assets to
total assets 0.02% 0.24%
Allowance for loan losses to
non-performing loans 2214.05% 220.79%
Results of Operations
Comparison of quarterly results in this section are between
the three month periods ended December 31, 1996, and December 31,
1995 and between the six month periods then ended.
General
Net income for the second quarter ended December 31, 1996
was $67,000, a decrease of $54,000 or 44.6% from the $121,000 net
income for the second quarter ended December 31, 1995. Net
income for the six months ended December 31, 1996, was $43,000, a
decrease of $165,000 or 79.3% from the $208,000 net income for
the comparable period ended December 31, 1995.
Interest Income
Interest income increased $123,000 or 14.95% to $946,000 for
the quarter ended December 31, 1996 from $823,000 for the quarter
ended December 31, 1995. Interest income for the six months
ended December 31, 1996 was $1.9 million, and increase of
$225,000, or 13.33% over the same period ended December 31, 1995.
These increases resulted primarily from an increase in interest
on loan receivable and mortgage-backed and related securities.
Interest on mortgage-backed and related securities increased
$77,000 for the quarter ended December 31, 1996 and $78,000 for
the six months ended December 31, 1996. Interest on mortgage
loans increased $15,000 for the three months ended December 31,
1996 and $93,000 for the six months ended December 31, 1996 as
compared to the same period ended December 31, 1995.
Interest Expense
Interest expense for the quarter ended December 31, 1996 was
$602,000 as compared to $518,000 for the quarter ended December
31, 1995, an increase of $16.22%. Interest expense for the six
months ended December 31, 1996 was $1.2 million as compared to
$1.1 million for the six months ended December 31, 1995, an
increase of $15.83%. These increases are 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
$344,000 for the quarter ended December 31, 1996 as compared to
$305,000 for the quarter ended December 31, 1995, an increase of
$39,000 or 12.79%. Net interest income before provisions for
loan losses was $691,000 for the six months ended December 31,
1996, as compared to $633,000 for the six months ended December
31, 1995, an increase of $58,000 or 9.16%.
Noninterest Income
Noninterest income was $76,000 for the quarter ended
December 31, 1996 as compared to $98,000 for the quarter ended
December 31, 1995, a decrease of $22,000 or 22.45%. Noninterest
income was $141,000 for the six months ended December 31, 1996 as
compared to $187,000 for the six months ended December 31, 1995,
a decease of $46,000 or 24.60%. The decrease was due primarily
to a decrease in the amount of gains on the sales of mortgage-
backed and related securities. In addition, income from fees and
service charges decreased $5,000 or 8.06% from $62,000 for the
three months ended December 31, 1995, to $57,000 for the three
months ended December 31, 1996. For the six months ended
December 31, 1996, income from service charges and fees was
$110,000, a decrease of $36,000 or 24.7% as compared to the same
period ended December 31, 1995.
Noninterest Expense
Noninterest expense for the quarter ended December 31, 1996
increased $72,000, from $230,000 for the quarter ended December
31, 1995 to $302,000 for the quarter ended December 31, 1996.
Noninterest expenses for the six months ended December 31, 1996
was $760,000 as compared to $493,000 for the six months ended
December 31, 1995, an increase of $267,000 or 54.16%. The
increase is due to an increase of compensation and benefits as
well as a principal payment made on the ESOP loan on December 30,
1996. In addition, for the six months ended December 31, 1996,
SAIF insurance premiums increased $228,000 or 485.11% as compared
to the six months ended December 31, 1995, due to a special one-
time SAIF assessment incurred on September 30, 1996.
Provision for Loan Losses
For the three months ended December 31, 1996 and 1995, the
provision for loan losses was not increased. For the six months
ended December 31, 1996, the provision was not increased as
compared to an increase of $4,000 for the six months ended
December 31, 1995.
Income Tax
The provision for federal and state income taxes decreased
$86,000 to $29,000 for the six months ended December 31, 1996 as
compared to $115,000 for the six months ended December 31, 1995.
The decrease in income tax expense is due to a decrease in
taxable income for the period.
IFB HOLDINGS, INC. AND SUBSIDIARY
Part II -- Other Information
Item 1 Legal Proceedings
The Holding Company and the Association are not
involved in any pending legal proceedings other than
legal proceedings incident to the business of the
Holding Company and the Association, 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 Association.
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
On January 30, 1997, Investors Federal Bank and Savings
Association, the wholly-owned subsidiary of IFB
Holdings, Inc. (the "Registrant"), completed its
conversion to a national bank, which will operate under
the name Investors Federal Bank, National Association.
Item 6 Exhibits and Reports on Form 8-K
None.
IFB HOLDINGS, INC. AND SUBSIDIARY
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 February 10, 1997 /s/ Earle S. Teegarden, Jr.
----------------------------------
Earle S. Teegarden, Jr.
President and Chief Executive
Officer
(Duly Authorized Officer)
Dated February 10, 1997 /s/ Sherri Williams
----------------------------------
Sherri Williams
Vice President and Controller
(Principal Financial Officer)
PAGE