<PAGE>

                       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 December 31, 1999

                                       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.
--------------------------------------------------------------------------------
             (Exact name of Registrant as specified in its Charter)


          Delaware                                   43-1760023
-------------------------------                   -----------------
(State or other jurisdiction of                   (I.R.S. employer
incorporation or organization)                 Identification Number)

522 Washington Street, Chillicothe, Missouri            64601
--------------------------------------------            -----
(Address of principal executive offices)              (Zip Code)

Registrant's telephone number, including area code: (660) 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 December 31, 1999
-------------------------------              --------------------------------
Common stock, $.01 par value                              474,019
<PAGE>

                               IFB HOLDINGS, INC.
                                   FORM 10-QSB



                                      Index

<TABLE>
<S>       <C>                                                                       <C>
Part I. Financial Information
-----------------------------

Item 1    Financial Statements                                                      Page
                                                                                    ----
          Consolidated Statements of Financial Condition as of December 31,
          1999 (Unaudited) and June 30, 1999....................................       2

          Consolidated Statements of Income for the Three and Six months
          ended December 31, 1999 and 1998 (Unaudited)..........................       3

          Consolidated Statements of Comprehensive Income for the Three
          and Six months ended December 31, 1999 and 1998 (Unaudited)...........       4

          Consolidated Statements of Changes in Stockholders' Equity
          for the Six months ended December 31, 1999 (unaudited)................       5

          Consolidated Statements of Cash Flows for the Six months
          ended December 31, 1999 and 1998 (Unaudited)..........................       6

          Notes to Unaudited Consolidated Financial Statements..................       8

Item 2    Management's Discussion and Analysis of Financial Condition
          and Results of Operations.............................................      11


Part II.   Other Information
----------------------------

Item 1    Legal Proceedings.....................................................      18

Item 2    Changes in Securities.................................................      18

Item 3    Default upon Senior Securities........................................      18

Item 4    Submission of Matters to a Vote of Security Holders...................      18

Item 5    Other Information.....................................................      18

Item 6    Exhibits and Reports on Form 8-K......................................      18

Signature Page .................................................................      19
</TABLE>
<PAGE>

                        IFB HOLDINGS, INC. AND SUBSIDIARY
                 Consolidated Statements of Financial Condition
<TABLE>
<CAPTION>

                                                                     At             At
                                                                December 31,      June 30,
                                                                    1999           1999
                                                                -----------      ----------
                                                                (Unaudited)
                                                                       (In Thousands)
<S>                                                             <C>              <C>
                   ASSETS

Cash on hand and noninterest-earning deposits                    $  1,018        $    551
Interest-earning deposits in other institutions                       922           1,325
Investment securities:
 Securities available-for-sale at fair value                        8,792          10,104
 Securities held-to-maturity at amortized cost                         30              30
Mortgage-backed and related securities
 available-for-sale, at fair value                                 18,201          21,134
Loans receivable, net                                              32,482          34,129
Accrued interest receivable                                           466             564
Investment required by law:
 FHLB and FRB stock, at cost                                        1,321           1,771
Premises and equipment                                                374             368
Other assets                                                           40              34
                                                                 --------        --------
       Total assets                                              $ 63,646        $ 70,010
                                                                 ========        ========

                      LIABILITIES AND STOCKHOLDERS' EQUITY

Deposits                                                         $ 34,560        $ 35,539
Federal Home Loan Bank advances                                    21,650          26,674
Advances from borrowers for taxes and insurance                         7              31
Income taxes payable                                                 (131)            (31)
Accrued expenses and other liabilities                                136             213
                                                                 --------        --------
       Total liabilities                                           56,192          62,426
                                                                 --------        --------
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, 1999
 and at June 30, 1999                                                   6               6
Additional paid-in capital                                          5,582           5,575
Retained earnings, substantially restricted                         4,465           4,309
Less:
 Common stock acquired by the ESOP                                   (292)           (315)
 Treasury stock, 118,504 shares at December 31, 1999
   and 118,504 at June 30, 1999, at cost                           (1,822)         (1,822)
 Accumulated other comprehensive income                              (485)           (169)
                                                                 --------        --------
       Total stockholders' equity                                   7,454           7,584
                                                                 --------        --------
       Total liabilities and stockholders' equity                $ 63,646        $ 70,010
                                                                 ========        ========
</TABLE>

      See accompanying Notes to Unaudited Consolidated Financial Statements

                                       2
<PAGE>

                        IFB HOLDINGS, INC. AND SUBSIDIARY
                        Consolidated Statements of Income
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                                  Three Months Ended            Six Months Ended
                                                                     December 31,                 December 31,
                                                                 1999           1998           1999          1998
                                                                 ----           ----           ----          ----
                                                                    (In thousands                 (In thousands
                                                                  except share data)            except share data)
<S>                                                            <C>            <C>            <C>            <C>
Interest income:
 Loans receivable                                              $    662       $    711       $  1,330       $  1,444
 Investment securities                                              163            135            338            248
 Mortgage-backed and related securities                             289            408            558            859
 Other interest-earning assets                                        4             12             10             32
                                                               --------       --------       --------       --------
    Total interest income                                         1,118          1,266          2,236          2,583
                                                               --------       --------       --------       --------
Interest expense:
 Deposits                                                           373            394            752            795
 FHLB Advances                                                      352            417            683            893
                                                               --------       --------       --------       --------
     Total interest expense                                         725            811          1,435          1,688
                                                               --------       --------       --------       --------

      Net interest income                                           393            455            801            895

Provision for loan losses                                             9            147              9            240
                                                               --------       --------       --------       --------
     Net interest income after provision for loan losses            384            308            792            655
                                                               --------       --------       --------       --------
Noninterest income:
 Fees and service charges                                            53             51            107            104
 Gain on sales of mortgage-backed securities                         --             19              9             28
 Other                                                               12             18             27             31
                                                               --------       --------       --------       --------
     Total noninterest income                                        65             88            143            163
                                                               --------       --------       --------       --------
Noninterest expense:
 Compensation and benefits                                          152            145            310            320
 Occupancy and equipment                                             30             30             59             65
 SAIF deposit insurance premiums                                      5              5             10             10
 Loss on sales of mortgage-backed securities                         --              4              4              4
 Other                                                              109             92            195            167
                                                               --------       --------       --------       --------
      Total noninterest expense                                     296            276            578            566
                                                               --------       --------       --------       --------

Income before income taxes                                          153            120            357            252

Income tax expense                                                   52             56            130            106
                                                               --------       --------       --------       --------
Net income                                                     $    101       $     64       $    227       $    146
                                                               ========       ========       ========       ========
Earnings per share:
     Basic                                                     $    .23       $    .15       $    .51       $    .31
                                                               ========       ========       ========       ========
Weighted average number of
 shares outstanding:
      Basic                                                     443,677        438,421        443,084        477,131
</TABLE>

      See accompanying Notes to Unaudited Consolidated Financial Statements

                                       3
<PAGE>

                        IFB HOLDINGS, INC. AND SUBSIDIARY
                 Consolidated Statements of Comprehensive Income
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                    Three Months               Six Months
                                                       Ended                     Ended
                                                    December 31,              December 31,
                                                 1999         1998         1999         1998
                                                 ----         ----         ----         ----
                                                  (In thousands)             (In thousands)

<S>                                             <C>          <C>          <C>          <C>
Net income                                      $ 101        $  64        $ 227        $ 146

Other comprehensive income (loss),
  net of income tax:
    Unrealized gain (loss) on securities:
      Unrealized holding gains (losses)
      arising during the period                   (93)         (20)        (315)         (51)
    Less reclassification adjustment for
      gains included in net income                 (1)          --            1           --
                                                -----        -----        -----        -----
Other comprehensive income                        (94)         (20)        (315)         (51)
                                                -----        -----        -----        -----
Comprehensive income                            $   7        $  44        $ (89)       $  95
                                                =====        =====        =====        =====
</TABLE>

                                       4
<PAGE>

                        IFB HOLDINGS, INC. AND SUBSIDIARY
           Consolidated Statements of Changes in Stockholders' Equity
                                   (Unaudited)
<TABLE>
<CAPTION>

                                                                                            Common     Accumulated
                                                 Additional                                  Stock        Other
                                     Common       Paid-In      Retained     Treasury        Acquired  Comprehensive
                                      Stock       Capital      Earnings       Stock         by ESOP       Income        Total
                                      -----       -------      --------       -----         -------       ------        -----
                                                     (In thousands)
Six  Months Ended
-----------------
  December 31, 1999
  -----------------
<S>                                  <C>         <C>           <C>          <C>            <C>        <C>              <C>
Balance at June 30, 1999             $     6      $ 5,575      $ 4,309       $(1,822)      $  (315)      $  (169)      $ 7,584

Additions (deductions) for
   the six months ended
     December 31, 1999
   Net income                             --           --          227            --            --            --           227
   Dividends declared                     --           --          (71)           --            --            --           (71)
   Reduction of ESOP
      obligation                          --           --           --            --            23            --            23
   Compensation Expense
      related to ESOP                     --            7           --            --            --            --             7
   Purchase of Treasury Stock             --           --           --            --            --            --            --
   Unrealized gain on
      securities available-for-
      sale, net of deferred
      Income tax of $163,000              --           --           --            --            --          (316)         (316)
                                     -------      -------      -------       -------       -------       -------       -------
Balance, December 31, 1999           $     6      $ 5,582      $ 4,465       $(1,822)      $  (292)      $  (485)      $ 7,454
                                     =======      =======      =======       =======       =======       =======       =======
</TABLE>

      See accompanying Notes to Unaudited Consolidated Financial Statements

                                       5
<PAGE>

                      Consolidated Statements of Cash Flows
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                                                 Six Months Ended
                                                                                   December 31,
                                                                             1999               1998
                                                                             ----               ----
                                                                                  (In thousands)
<S>                                                                       <C>                 <C>
Cash flow from operating activities:
 Net income (loss)                                                        $     227           $     146

 Adjustments to reconcile net earnings to
 net cash provided by operating activities:
   Net loss (gain) on sale of investments                                        (5)                (28)

   Depreciation                                                                  29                  29
   Provision for loan loss                                                        9                 240

   Amortization of premiums and discounts                                        40                  59
   Compensation expense related to ESOP                                          30                  41
   Decrease (increase) in interest receivable                                    98                  14
   Decrease (increase) in other assets                                           (6)                 11
   Increase (decrease) in income tax payable                                   (100)                (54)
   Increase (decrease) in other liabilities                                     (77)                 43
                                                                          ---------           ---------
        Net cash provided by operating activities                               245                 501
                                                                          ---------           ---------
Cash flow from investing activities:
 Loans purchased                                                                 --                (229)
 (Increase) decrease in loans, net                                            1,638               1,215
 Proceeds from sales of available-for-sale mortgage-backed and
    related securities                                                           --               1,361
 Proceeds from sales of available-for-sale investment securities                991               2,014
 Proceeds from maturities/calls of investment securities                         --               1,660
 Purchase of available-for-sale investment securities                           (26)             (6,535)
 Purchase of available-for-sale mortgage-backed
  and related securities                                                         --              (2,702)
 Principal collected on repayments and maturities of
  available-for-sale mortgage-backed and related securities                   2,899               7,308
 Sale (Purchase) of FHLB and FRB stock                                          450                (132)
 Purchase of equipment                                                          (35)                 (8)
                                                                          ---------           ---------
        Net cash provided (used) by investing activities                      5,917               3,952
                                                                          ---------           ---------
Cash flows from financing activities:
 Dividends paid                                                                 (71)                (71)
 Net increase (decrease) in deposits                                           (979)                438
 Net increase (decrease) in advances from
    borrowers for taxes and insurance                                           (24)                (27)
 Proceeds from FHLB advances                                                133,800              28,378
 Principal payments on FHLB advances                                       (138,824)            (32,821)
 Purchase of treasury stock                                                      --              (1,822)
                                                                          ---------           ---------
        Net cash provided (used) by financing activities                     (6,098)             (5,925)
                                                                          ---------           ---------

        Increase (decrease) in cash and cash equivalents                         64              (1,472)

Cash and cash equivalents at beginning of period                              1,876               3,541
                                                                          ---------           ---------
Cash and cash equivalents at end of period                                $   1,940           $  2, 069
                                                                          =========           =========
</TABLE>

                                       6
<PAGE>

                               IFB HOLDINGS, INC.
                      Consolidated Statements of Cash Flows
                                   (Unaudited)

                                                   Six Months Ended
                                                     December 31,
                                                 1999            1998
                                                 ----            ----
                                                    (In Thousands)
Supplemental cash flow disclosures:
 Cash paid for:
   Interest                                     $  933          $1,165
                                                ======          ======

   Income Taxes                                 $  122          $  122
                                                ======          ======
Noncash activity:
Loans transferred to real estate owned          $   --          $   --
                                                ======          ======

      See accompanying Notes to Unaudited Consolidated Financial Statements

                                       7
<PAGE>

                        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 three and six
     month periods ended December 31, 1999 are not necessarily indicative of
     results that may be expected for the entire fiscal year ending June 30,
     2000.

     The unaudited consolidated financial statements include the accounts 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 six
     months ended December 31, 1999. 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 $276,155 ($182,313 principal) to the
     Holding Company. The $291,697 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.

(3)  Earnings Per Share

     Earnings per share (EPS) computations follow SFAS No. 128 which is
     effective for financial statements issued for periods ending after December
     15, 1997. Basic EPS have been determined by dividing net income for the
     period (numerator) by the

                                       8
<PAGE>

     weighted-average number of common shares outstanding during the period
     (denominator). Weighted-average common shares include allocated ESOP
     shares. Unallocated ESOP shares are not used in basic EPS calculations.

(4)  Stock Repurchase Program

     During the quarter ended September 30, 1998, the Company repurchased
     118,125 shares of its common stock. The Company repurchased an additional
     379 shares of its common stock during the quarter ended December 31, 1998.
     As of December 31,1999, IFB Holdings, Inc. has repurchased a total of
     118,504 shares of its common stock.

(5)  Commitments and Contingencies

     Commitments to originate and purchase mortgage loans of $644,000 at
     December 31, 1999, represent amounts which the Bank plans to fund within
     the normal commitment period of thirty to ninety days. As of December 31,
     1999, 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 December 31, 1999.


(6)  Recent Accounting Developments

     SFAS No. 130 "Reporting Comprehensive Income," was adopted July 1, 1998.
     This statement provides accounting and reporting standards to report a
     measure of all changes in equity of an enterprise that results from
     recognized transactions and economic events of the period. The major
     component of comprehensive income for the Company will be unrealized gains
     and losses on certain investments in debt and equity securities.

     SFAS No. 133, " Accounting for Derivative Instruments and Hedging
     Activities," establishes accounting and reporting standards for derivative
     instruments, including certain derivative instruments embedded in other
     contracts, (collectively referred to as derivatives) and for hedging
     activities. It requires that an entity recognize all derivatives as either
     assets or liabilities in the statement of financial position and measure
     those instruments at fair value. If certain conditions are met, a
     derivative may be specifically designated as (a) a hedge of the exposure to
     changes in the fair value of a recognized asset or liability or an
     unrecognized firm commitment, (b) a hedge of the exposure to variable cash
     flows of a forecasted transaction, or (c) hedge of the foreign currency
     exposure of a net investment in a foreign operation, an unrecognized firm
     commitment, an available-for-sale security, or a foreign-currency-
     denominated forecasted transaction. This statement is effective for all
     fiscal quarters of fiscal years beginning after June 15, 2000, as amended
     by SFAS No. 137.

     Management believes adoption of SFAS Nos. 130 and 133 does not, or will
     not, have a material effect on the financial position or results of
     operations, nor will adoption require additional capital resources.

     The foregoing does not constitute a comprehensive summary of all material
     changes or developments affecting the manner in which the Company keeps
     its books and records and performs its financial accounting
     responsibilities. It is intended only as a summary of some of the recent
     pronouncements made by the FASB which are of particular interest to
     financial institutions.

                                       9
<PAGE>

(7)  Director and Employee Plans

     The Company's Board of Directors has approved a stock option and incentive
     plan and a recognition and retention plan (RRP) which were approved by the
     Company's shareholders at the Annual meeting in November, 1997.

     Stock Option and Incentive Plan
     -------------------------------

     The plan will be implemented for the benefit of directors, officers and
     employees of the Company and its affiliates. The maximum number of shares
     to be issued from authorized but not currently outstanding shares under the
     plan is 59,252 or 10% of the total shares issued in the conversion. The
     exercise price of the options shall not be less than the common stock
     market value at the date the options are granted.


     Recognition and Retention Plan
     ------------------------------

     The RRP would award shares authorized but not currently outstanding to
     directors and to employees in key management positions in order to provide
     them with a proprietary interest in the Company in a manner designed to
     encourage such employees to remain with the Company. The maximum number of
     shares authorized under the plan is 23,700 or 4% of the total shares issued
     in the conversion.

     Under the terms of the stock option and incentive plan, the effective date
     of the plan was January 1, 1998. The term of the plan would be ten years.
     The future impact of the plan would be to increase (1) the number of
     outstanding shares of common stock, and (2) compensation expense, and
     decrease (1) net income per share, and (2) book value per share. It is not
     possible to quantify the effect on the financial position or results of
     operations from implementing the plan at this time.

     As of December 31, 1999, no stock options or RRP award shares had been
     granted.

                                      10
<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; and (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.

     This Quarterly Report on Form 10-QSB may contain certain forward-looking
statements consisting of estimates with respect to the financial condition,
results of operations and business of the Company that are subject to various
factors which could cause actual results to differ materially from these
estimates. These factors include, but are not limited to, general economic
competition; changes in accounting principles, policies, or guidelines; changes
in legislation or regulation; and other economic, competitive, governmental,
regulatory, and technological factors affecting the Company's operations,
pricing, products and services.

Year 2000 Issue

     The Bank has not experienced any problems relating to the year 2000,
however the Bank will continue to monitor the situation.

                                      11
<PAGE>

Liquidity and Capital Resources

     The Company'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, 1999 and June 30, 1999, cash and cash equivalents
totaled $1.9 million and $1.9 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 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 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, 1999, the Bank had outstanding loan commitments of
$644,000. 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 December 31, 1999 were $14.4 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 December 31, 1999, the Bank
exceeded both of the capital requirements. The Bank's capital ratios were: 9.93%
leverage capital and 23.00% risk-based capital. The Bank had "Tier 1 capital" of
$6.4 million at December 31, 1999 and risk-based capital of $6.8 million.

                                      12
<PAGE>

Financial Condition

     Total assets decreased $6.4 million, or 9.1%, to $63.6 million at December
31, 1999, from $70.0 million at June 30, 1999. Investment securities decreased
$1.3 million, or 12.9% from $10.1 million at June 30, 1999, to $8.8 million at
December 31, 1999. FHLB and FRB stock decreased $450,000, or 25.4%, from $1.8
million at June 30, 1999, to $1.3 million at December 31, 1999. Mortgage-backed
and related securities decreased $2.9 million, or 13.7%, from $21.1 million at
June 30, 1999, to $18.2 million at December 31, 1999. Loans receivable decreased
$1.6 million, or 4.7%, from $34.1 million at June 30, 1999, to $32.5 million at
December 31, 1999. Interest-earning deposits in other institutions decreased
$403,000, or 30.4%, from $1.3 million at June 30, 1999, to $922,000 at December
31, 1999. The decrease in assets is consistent with the Board's decision to
reduce the level of FHLB borrowings. As securities continue to mature and pay
down, the funds will be used to repay borrowings. It is expected that the asset
size of the Bank will continue to decrease.

     Total liabilities decreased $6.2 million, or 9.9%, from $62.4 million at
June 30, 1999, to $56.2 million at December 31, 1999. The decrease was primarily
the result of the decrease in FHLB advances of $5.0 million or 18.7%, from $26.7
million at June 30, 1999, to $21.7 million at December 31, 1999. Proceeds from
mortgage backed and related security payments were used to pay down the
advances. In addition, deposits decreased $979,000 or 2.8%, from $35.5 million
at June 30, 1999, to $34.6 million at December 31, 1999.

     Total equity decreased $130,000, or 1.7 %, from $7.6 million at June 30,
1999 to $7.5 million at December 31, 1999. Unrealized loss on securities
available-for-sale, net of deferred income tax increased $316,000 for the six
months ended December 31, 1999. In addition, net income for the six months ended
December 31, 1999 was $227,000.

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 Bank's non-accrual loans increased from $356,000 at June 30,
1999 to $372,000 at December 31, 1999.

     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, 1999, the Bank had no restructured loans within the
meaning of Financial Accounting Standards Board Statement of Financial
Accounting Standards No. 15.

                                      13
<PAGE>

                               IFB HOLDINGS, INC.
                                  Asset Quality


                                            December 31,         June 30,
                                               1999               1999
                                               ----               ----
                                                   (In thousands)
Non-accrual mortgage loans
 delinquent more than 90 days                $  310             $  318
Non-accrual other loans
 delinquent more than 90 days                    62                 38
                                             ------             ------
Total non-performing loans                   $  372             $  356

 Real estate owned and in-
   substance foreclosed loans,
   net of allowance                               -                  -
                                             ------             ------

   Total non-performing assets               $  372             $  356
                                             ======             ======
Non-performing loans to
 total loans                                   1.13%              1.03%
                                             ======             ======
Non-performing assets to
 total assets                                  0.58%              0.51%
                                             ======             ======
Allowance for loan losses
 to non-performing loans                     106.72%            111.80%
                                             ======             ======

                                      14
<PAGE>

Results of Operations

     Comparisons of interim results in this section are between the three month
periods ended December 31, 1999, and December 31, 1998 and between the six month
periods then ended.

General

     Net income for the quarter ended December 31, 1999 was $101,000, an
increase of $37,000 from the $64,000 net income for the quarter ended December
31, 1998. Net income for the six months ended December 31, 1999, was $227,000,
an increase of $81,000, or 55.5% from the $146,000 net income for the comparable
period ended December 31, 1998. The increase was due primarily to the decreases
in interest expense and provision for loan losses. In addition, interest income
decreased for the three and six month periods ended December 31, 1999, as
compared to the three and six month periods ended December 31, 1998.

Interest Income

     Interest income for the quarter ended December 31, 1999, was $1.1 million,
a decrease of $148,000 or 11.7%, compared to $1.3 million for the quarter ended
December 31, 1998. Interest income for the six months ended December 31, 1999,
was $2.2 million , a decrease of $347,000, or 13.4% compared to $2.6 million for
the six months ended December 31, 1998. Interest on loans receivable decreased
$49,000, or 6.9%, from $711,000 for the quarter ended December 31, 1998, to
$662,000 for the quarter ended December 31, 1999. Interest on loans receivable
decreased $114,000, or 7.9%, from $1.4 million for the six months ended December
31, 1998, to $1.3 million for the six months ended December 31, 1999. Interest
on investment securities increased $28,000, or 20.7%, from $135,000 for the
three months ended December 31, 1998, to $163,000 for the three months ended
December 31, 1999. Interest on investment securities increased $90,000, or 36.3%
from $248,000 for the six months ended December 31, 1998, to $338,000 for the
six months ended December 31, 1999. Interest on mortgage-backed and related
securities decreased $119,000, or 29.2%, from $408,000 for the quarter ended
December 31, 1998, to $289,000 for the quarter ended December 31, 1999. Interest
on mortgage-backed and related securities decreased $301,000, or 35.0%, from
$859,000 for the six months ended December 31, 1998, to $558,000 for the six
months ended December 31, 1999. The decreases are primarily the result of the
decreases in the average balances of mortgage-backed and related securities and
loans receivable outstanding during the three and six month periods ended
December 31, 1999, as compared to the quarter ended December 31, 1998. The
decrease in interest income on investment securities is primarily the result of
a decrease in the average balance of investment securities outstanding during
the three and six month periods ended December 31, 1999, as compared to the
three and six month periods ended December 31, 1998.

Interest Expense

     Interest expense for the quarter ended December 31, 1999 was $725,000 as
compared to $811,000 for the quarter ended December 31, 1998, a decrease of
$86,000, or 10.6%. Interest expense for the six months ended December 31, 1999,
was $1.4 million as compared to $1.7 million for the six months ended December
31, 1998, a decrease of $253,000, or 15.0%. Interest on advances from FHLB was
$352,000 for the three months ended December 31, 1999, as compared to $417,000
for the same period ended December 31, 1998, a decrease of $65,000 or 15.6%.
Interest on advances decreased $210,000, or 23.5%, from $893,000 for the six
months ended December 31, 1998 to $683,000 for the six months ended December 31,
1999. The decrease was due primarily to a decrease in the average balance of
advances outstanding during the three and six month periods ended December 31,
1999, as compared to the three and six month periods ended December 31, 1998.
Interest on deposits was $373,000 for the three month period ended December 31,
1999, as compared to $394,000 for the same period ended December 31, 1998, a
decrease of $21,000, or 5.3%. Interest on deposits was $752,000 for the six
months ended December 31, 1999, as compared to $795,000 for the same period
ended December 31, 1998, a decrease of $43,000, or 5.4%. The decrease was due to
a decrease in the average balance of deposits outstanding during the three and
six month periods ended December 31, 1999, as

                                      15
<PAGE>

compared to the three and six month periods ended December 31, 1998.

Net Interest Income

     Net interest income before provisions for loan losses was $393,000 for the
quarter ended December 31, 1999, as compared to $455,000 for the quarter ended
December 31, 1998, a decrease of $62,000, or 13.6%. Net interest income before
provisions for loan losses was $801,000 for the six months ended December 31,
1999, a decrease of $94,000, or 10.5%, as compared to $895,000 for the six
months ended December 31, 1998.

Provision for Loan Losses

     The provision for loan losses decreased $138,000 for the three months ended
December 31, 1999, as compared to the three months ended December 31, 1998. The
provision for loan losses decreased $231,000 for the six months ended December
31, 1999, as compared to the six months ended December 31, 1998. Provisions were
made during the quarter ended September 30, 1998 due to FHA Title 1 Home loans
with inadequate FHA reserves. These loans were sold during the quarter ended
September 30, 1999, resulting in a decrease to provision for loan losses.

Noninterest Income

     Noninterest income was $65,000 for the quarter ended December 31, 1999, as
compared to $88,000 for the quarter ended December 31, 1998, a decrease of
$23,000, or 26.1%. Noninterest income was $143,000 for the six months ended
December 31, 1999, as compared to $163,000 for the six months ended December 31,
1998, a decrease of $20,000, or 12.3%. For the six months ended December 31,
1998, gain on sales of mortgage-backed securities was $28,000 as compared to
$9,000 for the six months ended December 31, 1999, a decrease of $19,000, or
67.9%. In addition, other noninterest income decreased $6,000, or 33.3%, from
$18,000 for the quarter ended December 31, 1998, to $12,000 for the quarter
ended December 31, 1999. For the six months ended December 31, 1999, other
noninterest income was $27,000 as compared to $31,000 for the six months ended
December 31, 1998, a decrease of $4,000, or 12.9%. The decrease in noninterest
income was due primarily to a decrease in gain on sales of mortgage-backed
securities during the six months ended December 31, 1999, as compared to the six
months ended December 31, 1998.

Noninterest Expense

     Noninterest expense was $296,000 for the quarter ended December 31, 1999,
an increase of $20,000, or 7.2%, compared to $276,000 for the quarter ended
December 31, 1998. For the six months ended December 31, 1999, noninterest
expense was $578,000 compared to $566,000 for the six months ended December 31,
1998, an increase of $12,000, or 2.1%. Compensation and benefits expense
increased $7,000, or 4.8%, from $145,000 for the quarter ended December 31,
1998, to $152,000 for the quarter ended December 31, 1999. For the six months
ended December 31, 1999, compensation and benefits expense was $310,000 as
compared to $320,000 for the same period ended December 31, 1998, a decrease of
$10,000, or 3.1%. Other noninterest expense increased $17,000, or 18.5%, from
$92,000 for the quarter ended December 31, 1998, to $109,000 for the quarter
ended December 31, 1999. Other noninterest expense increased $28,000, or 16.8%,
from $167,000 for the six months ended Decmember 31, 1998, to $195,000 for the
six months ended December 31, 1999. The increase in other noninterest expense is
due primarily to the increase in legal, printing and filing fees associated with
meeting the requirements of being a publicly traded company. In addition,
charged off service fee income and postage expense increased for the six month
period ended December 31, 1999.

Income Tax

     The provision for income taxes decreased $4,000, or 7.1%, from $56,000 for
the quarter ended December 31, 1998, to $52,000 for the quarter ended December
31, 1999. The provision for income taxes increased $24,000, or 22.6%, from
$106,000 for the six months ended December 31, 1998,

                                      16
<PAGE>

to $130,000 for the six months ended December 31, 1999. The increase is due to
an increase in income for the six months ended December 31, 1999.

                                      17
<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
          None

Item 5    Other Information
          Investors Federal Bank has named Douglas W. Ayers as its new President
          and Chief Executive Officer beginning November 8, 1999. Mr Ayers
          brings over 20 years of banking and business experience to the
          organization, having been Community President for a Brookfield,
          Missouri financial institution for the past seven years.

          On July 22, 1999, the Bank entered into a Memorandum of Understanding
          (the "MOU") with the Office of the Comptroller of the Currency (the
          "OCC"), whereby the Bank agreed to take certain actions in response to
          concerns raised by the OCC. The Bank agreed, within 90 days after the
          date of the MOU, to appoint a new chief executive officer, and to have
          that chief executive officer prepare a report to the board of
          directors regarding the Bank's management structure. The appointment
          of the new chief executive officer was subject to the review and
          possible disapproval of the OCC. The Bank submitted a form of
          notification to the OCC, and the Bank has received a letter from the
          OCC stating that the OCC is aware of no basis to disapprove the
          appointment of Mr. Ayers.

          The Board is pleased with its selection of Mr. Ayers to lead the
          organization. A formal Strategic Plan will be prepared to ensure that
          clear objectives are established for achievement. Mr. Ayers' banking
          experience will aid in expanding services and products to the Bank's
          existing customers. A more complete offering of products and services
          will be used to attract new customers.

Item 6    Exhibits and Reports on Form 8-K

          (A) Exhibits;  Statement re: Computation of Per Share
                Earnings-Exhibit 11
                Financial Data Schedule-Exhibit 27

          (B) Reports on Form 8-K; No reports on Form 8-K have been filed during
                the quarter for which this report is filed.

                                      18
<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 February 11, 2000                   /s/ Douglas W. Ayers
                                          --------------------------------------
                                                Douglas W. Ayers, President
                                          (Chief Executive Officer and Director)



Dated February 11, 2000                   /s/ Larry Johnson
                                          --------------------------------------
                                             Larry Johnson
                                             (Senior Executive Vice President
                                                and Director)

                                      19