UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Exact name of registrant as specified in its charter) Maryland 45-1834449 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended June 30, 2025 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: 001-35226 IF BANCORP, INC. (State or other jurisdiction of incorporation or ...

[Financial Highlights and Executive Summary](index=1&type=section&id=Financial%20Highlights%20and%20Executive%20Summary) IF Bancorp, Inc. reported strong financial performance for FY2025, with significant increases in net income and EPS, and announced a cash dividend [Fiscal Year 2025 and Fourth Quarter Financial Performance](index=1&type=section&id=1.1.%20Fiscal%20Year%202025%20and%20Fourth%20Quarter%20Financial%20Performance) IF Bancorp, Inc. reported significant increases in net income and earnings per share for both the fourth quarter and the full fiscal year ended June 30, 2025, driven by improved financial performance Net Income and EPS Overview | Metric | Q4 2025 ($M) | Q4 2024 ($M) | FY 2025 ($M) | FY 2024 ($M) | Change (FY YoY) | | :--------------------- | :------ | :------ | :------ | :------ | :-------------- | | Net Income | $1.4 | $0.431 | $4.3 | $1.8 | +140.4% | | Basic EPS | $0.45 | $0.13 | $1.37 | $0.57 | +140.4% | | Diluted EPS | $0.45 | $0.13 | $1.37 | $0.57 | +140.4% | [Management Commentary and Key Financial Drivers](index=1&type=section&id=1.2.%20Management%20Commentary) Chairman and CEO Walter H. Hasselbring, III highlighted improved net interest margin and higher earnings, affirming the company's focus on enhancing shareholder value - Chairman and CEO Walter H. Hasselbring, III noted continued improvement in **net interest margin**, leading to **higher earnings per share** and **net income**, and stated that the Board and management are actively evaluating opportunities to **enhance shareholder value**[2](index=2&type=chunk) Key Income Statement Changes (FY2025 vs. FY2024) | Metric | FY 2025 ($M) | FY 2024 ($M) | Change ($M) | Change (%) | | :--------------------------- | :----------- | :----------- | :---------- | :--------- | | Net Income | 4.3 | 1.8 | +2.5 | +140.4% | | Net Interest Income | 20.8 | 17.7 | +3.1 | +17.5% | | Interest Income | 43.4 | 41.0 | +2.4 | +5.9% | | Interest Expense | 22.6 | 23.3 | -0.7 | -3.0% | | Credit for Credit Losses | (0.701) | 0.032 | -0.733 | N/A | | Noninterest Income | 4.9 | 4.4 | +0.5 | +11.4% | | Noninterest Expense | 20.5 | 19.7 | +0.8 | +4.1% | | Income Tax Expense | 1.6 | 0.565 | +1.035 | +183.2% | Book Value Per Share | Period | Book Value Per Share | | :----------- | :------------------- | | June 30, 2025 | $24.42 | [Dividend Announcement](index=1&type=section&id=1.3.%20Dividend%20Announcement) IF Bancorp, Inc. announced a cash dividend of $0.20 per common share, payable in October 2025 Cash Dividend Details | Detail | Value | | :-------------- | :--------------------- | | Dividend Amount | $0.20 per common share | | Payment Date | On or about Oct 17, 2025 | | Record Date | Sep 26, 2025 | [Company Information](index=1&type=section&id=Company%20Information) This section describes IF Bancorp, Inc.'s business operations, including its banking services and insurance subsidiary, and outlines important forward-looking statement disclaimers [Business Description](index=1&type=section&id=2.1.%20Business%20Description) IF Bancorp, Inc. operates as the holding company for Iroquois Federal Savings and Loan Association, providing banking services through multiple offices in Illinois and a loan production office in Missouri, with a subsidiary focused on property and casualty insurance - IF Bancorp, Inc. is the holding company for **Iroquois Federal Savings and Loan Association**, operating **seven full-service banking offices** in Illinois and a loan production office in Missouri, with its wholly-owned subsidiary, **L.C.I. Service Corporation**, specializing in the sale of **property and casualty insurance**[5](index=5&type=chunk) [Forward-Looking Statements and Risk Factors](index=2&type=section&id=2.2.%20Forward-Looking%20Statements%20and%20Risk%20Factors) The report includes standard forward-looking statements, cautioning investors about various factors that could cause actual results to differ materially, such as economic conditions, interest rate changes, and regulatory policies - The press release contains **'forward-looking statements'** as defined by the **PSLRA**, identified by specific keywords, for which the Company claims **safe harbor protection**[6](index=6&type=chunk) - Important factors that could cause actual results to differ materially include prevailing **economic and geopolitical conditions** (e.g., **interest rates**, **loan demand**, **real estate values**), changes in **accounting principles**, and changes in **applicable laws or regulations**[7](index=7&type=chunk) [Detailed Financial Statements and Ratios](index=3&type=section&id=Detailed%20Financial%20Statements%20and%20Ratios) This section presents comprehensive income statement, balance sheet, and performance ratio data, highlighting the company's financial position and operational efficiency [Selected Income Statement Data](index=3&type=section&id=3.1.%20Selected%20Income%20Statement%20Data) The detailed income statement shows strong year-over-year growth in net interest income and net income for both the fourth quarter and the full fiscal year 2025, supported by increased interest income and reduced interest expense Selected Income Statement Data | Metric | Q4 2025 ($M) | Q4 2024 ($M) | FY 2025 ($M) | FY 2024 ($M) | | :------------------------------------------------ | :----------- | :----------- | :----------- | :----------- | | Interest income | $10.849 | $10.661 | $43.417 | $40.984 | | Interest expense | 5.097 | 6.162 | 22.603 | 23.255 | | Net interest income | 5.752 | 4.499 | 20.814 | 17.729 | | Provision (credit) for credit losses | (0.371) | (0.164) | (0.701) | 0.032 | | Net interest income after provision (credit) for credit losses | 6.123 | 4.663 | 21.515 | 17.697 | | Noninterest income | 1.103 | 1.203 | 4.944 | 4.386 | | Noninterest expense | 5.233 | 5.335 | 20.542 | 19.728 | | Income before taxes | 1.993 | 0.531 | 5.917 | 2.355 | | Income tax expense | 0.552 | 0.100 | 1.613 | 0.565 | | Net income | $1.441 | $0.431 | $4.304 | $1.790 | | Basic EPS | $0.45 | $0.13 | $1.37 | $0.57 | | Diluted EPS | $0.45 | $0.13 | $1.37 | $0.57 | | Weighted average shares outstanding (Basic) | 3,233,650 | 3,215,905 | 3,151,025 | 3,132,153 | | Weighted average shares outstanding (Diluted) | 3,233,650 | 3,215,905 | 3,151,025 | 3,132,153 | [Performance Ratios](index=3&type=section&id=3.2.%20Performance%20Ratios) Key performance ratios for fiscal year 2025 demonstrate improved profitability and efficiency, with significant increases in return on average assets, return on average equity, and net interest margin compared to the prior year Performance Ratios (Fiscal Year Ended June 30) | Ratio | FY 2025 | FY 2024 | | :---------------------------------------- | :------ | :------ | | Return on average assets | 0.49% | 0.20% | | Return on average equity | 5.52% | 2.54% | | Net interest margin on average interest earning assets | 2.47% | 2.10% | [Selected Balance Sheet Data](index=4&type=section&id=3.3.%20Selected%20Balance%20Sheet%20Data) The balance sheet at June 30, 2025, shows stable total assets, an increase in cash and cash equivalents, and a notable increase in total stockholders' equity, primarily driven by net income and accumulated other comprehensive income Selected Balance Sheet Data | Metric | June 30, 2025 | June 30, 2024 | | :----------------------------------------- | :------------ | :------------ | | Assets ($M) | $887.659 | $887.745 | | Cash and cash equivalents ($M) | 20.092 | 9.571 | | Investment securities ($M) | 187.753 | 190.475 | | Net loans receivable ($M) | 633.603 | 639.297 | | Deposits ($M) | 721.258 | 727.177 | | Total borrowings, including repurchase agreements ($M) | 72.919 | 76.021 | | Total stockholders' equity ($M) | 81.837 | 73.916 | | Book value per share | $24.42 | $22.04 | | Average stockholders' equity to average total assets | 8.83% | 7.99% | - The increase in **stockholders' equity to $81.8 million** at June 30, 2025, from **$73.9 million** at June 30, 2024, was primarily driven by **net income of $4.3 million**, a **$4.3 million increase in accumulated other comprehensive income (loss) net of tax**, and **ESOP and stock equity plan activity of $608 thousand**, partially offset by **$1.3 million in dividends**[3](index=3&type=chunk) [Asset Quality](index=4&type=section&id=3.4.%20Asset%20Quality) Asset quality metrics remained stable with a slight increase in non-performing assets, while the allowance for credit losses decreased, maintaining a low non-performing assets to total assets ratio Asset Quality Metrics | Metric | June 30, 2025 | June 30, 2024 | | :-------------------------------------- | :------------ | :------------ | | Non-performing assets ($M) | $0.211 | $0.173 | | Allowance for credit losses ($M) | 6.627 | 7.499 | | Non-performing assets to total assets | 0.02% | 0.02% | | Allowance for credit losses to total loans | 1.04% | 1.16% | - **Non-performing assets** include **non-accrual loans**, **loans past due 90 days or more and accruing**, and **foreclosed assets held for sale**[12](index=12&type=chunk)

Financial Performance - Net income for the nine months ended March 31, 2025, was $2.9 million, an increase from $1.4 million for the same period in 2024[156]. - Net income for the three months ended March 31, 2025, increased by $303,000 to $1.0 million, compared to $708,000 for the same period in 2024[186]. - Net income for the nine months ended March 31, 2025, increased by $1.5 million to $2.9 million, compared to $1.4 million for the same period in 2024[174]. - Total equity increased by $5.0 million, or 6.8%, to $78.9 million at March 31, 2025, from $73.9 million at June 30, 2024, primarily due to net income of $2.9 million[173]. Interest Income and Expenses - Net interest income increased to $15.1 million for the nine months ended March 31, 2025, up from $13.2 million for the same period in 2024, reflecting a net interest rate spread of 2.06% compared to 1.80% in the prior year[154]. - Interest and dividend income increased by $2.2 million, or 7.4%, to $32.6 million for the nine months ended March 31, 2025[176]. - Interest expense decreased by $1.1 million, or 17.2%, to $5.4 million for the three months ended March 31, 2025, primarily due to a decrease in the average cost of interest-bearing liabilities[190]. - Net interest income for the three months ended March 31, 2025, was $5,224 thousand, resulting in a net interest margin of 2.49% compared to 1.96% in the same period of 2024[225]. - The interest rate spread for the three months ended March 31, 2025, was 2.20%, an increase from 1.65% in the same period of 2024[225]. Loans and Credit Quality - Non-performing loans totaled $337,000, or less than 0.1% of total loans, at March 31, 2025, compared to $173,000, or less than 0.1%, at June 30, 2024[155]. - The allowance for credit losses was $7.1 million, or 1.10% of total loans at March 31, 2025, down from $7.7 million, or 1.19% at March 31, 2024[182]. - As of March 31, 2025, the company had $9.9 million in loans classified as substandard, with no loans classified as doubtful or loss[199]. - The company recorded a total credit for credit losses of $262,000 for the three months ended March 31, 2025, down from $390,000 for the same period in 2024, reflecting a decrease of 32.8%[193]. Assets and Liabilities - Total assets decreased by $8.6 million, or 1.0%, to $879.1 million at March 31, 2025, from $887.7 million at June 30, 2024[165]. - Net loans receivable decreased by $1.1 million, or 0.2%, to $638.2 million at March 31, 2025, primarily due to a 19.3% decrease in construction loans[166]. - Deposits decreased by $43.2 million, or 5.9%, to $684.0 million at March 31, 2025, with noninterest bearing demand accounts decreasing by 61.6%[171]. - Federal Home Loan Bank advances were $86.0 million at March 31, 2025, with additional borrowing capacity of $58.7 million available[216]. - Total interest-bearing liabilities decreased by $131 million, primarily due to a decrease in certificates of deposit by $38 million and federal home loan bank advances by $364 million for the same period[232]. Noninterest Income and Expenses - Noninterest income increased by $658,000, or 20.7%, to $3.8 million for the nine months ended March 31, 2025, driven by higher customer service fees and insurance commissions[183]. - Noninterest income increased by $36,000, or 3.2%, to $1.2 million for the three months ended March 31, 2025, primarily due to a $115,000 increase in insurance commissions[194]. - Noninterest expense increased by $916,000, or 6.4%, to $15.3 million for the nine months ended March 31, 2025, with compensation and benefits being the largest component of the increase[184]. - Noninterest expense rose by $433,000, or 9.0%, to $5.3 million for the three months ended March 31, 2025, with compensation and benefits accounting for a $366,000 increase[195]. Capital and Regulatory Compliance - The Association was categorized as "well capitalized" under regulatory capital requirements as of March 31, 2025[156]. - As of March 31, 2025, the Community Bank Leverage Ratio was 9.79%, an increase from 9.23% on June 30, 2024, exceeding the minimum requirement of 9.00%[222]. - The company opted into the Community Bank Leverage Ratio in 2020, which is designed to simplify capital requirements for qualifying community banks[220]. Liquidity - The liquidity ratio averaged 24.0% of total assets for the three months ended March 31, 2025, indicating sufficient liquidity to meet obligations[209]. - At March 31, 2025, cash and cash equivalents totaled $8.9 million, with interest-bearing time deposits amounting to $250,000[211].

Financial Performance - For the three months ended March 31, 2025, IF Bancorp, Inc. reported net income of $1.0 million, or $0.31 per share, compared to $708,000, or $0.22 per share for the same period in 2024, representing a 41.2% increase in net income year-over-year [2][9]. - Net interest income for the three months ended March 31, 2025, was $5.2 million, an increase of 22.5% from $4.3 million for the same period in 2024 [3][9]. - Non-interest income increased to $1.2 million for the three months ended March 31, 2025, compared to $1.1 million for the same period in 2024, marking an increase of 9.1% [3][9]. - The provision for income tax increased to $380,000 for the three months ended March 31, 2025, from $243,000 for the same period in 2024, indicating a rise of 56.3% [3][9]. - Return on average assets improved to 0.43% for the nine months ended March 31, 2025, compared to 0.20% for the same period in 2024 [10]. Asset and Equity Changes - Total assets decreased to $879.1 million at March 31, 2025, from $887.7 million at June 30, 2024, reflecting a decline of 1.5% [5][11]. - Total stockholders' equity increased to $78.9 million at March 31, 2025, from $73.9 million at June 30, 2024, driven by net income and other comprehensive income [5][11]. - The book value per share increased to $23.55 at March 31, 2025, up from $22.04 at June 30, 2024, reflecting a growth of 6.8% [3][11]. Deposit and Asset Quality - Deposits decreased significantly to $684.0 million at March 31, 2025, from $727.2 million at June 30, 2024, primarily due to the withdrawal of approximately $62.7 million in deposits from a public entity [5][11]. - Non-performing assets increased to $377,000 at March 31, 2025, from $173,000 at June 30, 2024, resulting in a non-performing assets to total assets ratio of 0.04% [12].

Financial Performance - Net income for the six months ended December 31, 2024, was $1.9 million, up from $651,000 for the same period in 2023[160]. - Net income increased by $1.2 million to $1.9 million for the six months ended December 31, 2024, compared to $651,000 for the same period in 2023[178]. - Net income for the three months ended December 31, 2024, increased by $1.0 million to $1.2 million, driven by higher net interest income and a decrease in provision for credit losses[190]. Interest Income and Expense - Net interest income increased to $9.8 million for the six months ended December 31, 2024, compared to $9.0 million for the same period in 2023, representing an annualized increase from $18.0 million to $19.6 million[157]. - Net interest income rose by $867,000, or 9.7%, to $9.8 million for the six months ended December 31, 2024, driven by a $2.4 million increase in interest and dividend income[179]. - Interest and dividend income increased by $2.4 million, or 12.3%, to $21.9 million for the six months ended December 31, 2024, primarily due to a $2.6 million increase in interest income on loans[180]. - Interest expense increased by $1.5 million, or 14.6%, to $12.1 million for the six months ended December 31, 2024, mainly due to a $1.3 million increase in interest on deposits[182]. - Net interest income for the three months ended December 31, 2024, increased by $629,000 to $5.0 million, with an interest rate spread increase of 29 basis points to 2.07%[192]. - The interest rate spread for the six months ended December 31, 2024, was 1.99%, an increase from 1.88% in the same period of 2023[228]. Asset and Liability Management - Total assets decreased by $2.6 million, or 0.3%, to $885.1 million at December 31, 2024, primarily due to a $7.6 million decrease in investment securities[169]. - Total liabilities as of December 31, 2024, were $808,138,000, with stockholders' equity of $76,085,000, compared to total liabilities of $815,690,000 and equity of $69,277,000 in 2023[226]. - The total interest-bearing liabilities for the three months ended December 31, 2024, were $762,473,000, with interest expense of $5,993,000, resulting in a cost of 3.14% compared to 3.05% in 2023[226]. - The average interest-earning assets to interest-bearing liabilities ratio remained stable at 111% for both the three and six months ended December 31, 2024[228]. Loan and Credit Quality - Non-performing loans totaled $248,000, or 0.1% of total loans, at December 31, 2024, unchanged from June 30, 2024[159]. - The allowance for credit losses on off-balance sheet credit exposures decreased to $64,000 at December 31, 2024, from $98,000 at June 30, 2024[176]. - At December 31, 2024, non-accrual loans totaled $196,000, with a breakdown of $37,000 in one- to four-family loans, $139,000 in commercial real estate loans, and $20,000 in consumer loans[202]. - Loans classified as substandard amounted to $3.0 million at December 31, 2024, with $1.2 million in commercial real estate loans and $1.4 million in commercial business loans[203]. - Watch rated assets totaled $7.1 million at December 31, 2024, primarily consisting of $6.2 million in commercial business loans[204]. Equity and Capitalization - Total equity increased by $2.0 million, or 2.7%, to $75.9 million at December 31, 2024, primarily due to net income and changes in accumulated other comprehensive income[177]. - The Association was categorized as "well capitalized" under regulatory capital requirements as of December 31, 2024[160]. - As of December 31, 2024, the Community Bank Leverage Ratio was 9.6%, up from 9.2% as of June 30, 2024, exceeding the minimum requirement of 9.0%[224]. Noninterest Income and Expense - Noninterest income increased by $622,000, or 30.4%, to $2.7 million for the six months ended December 31, 2024, driven by increases in mortgage banking income and customer service fees[188]. - Noninterest income increased by $342,000, or 37.4%, to $1.3 million for the three months ended December 31, 2024, driven by increases in mortgage banking income, gain on sale of loans, and brokerage commissions[198]. - Noninterest expense rose by $483,000, or 5.1%, to $10.0 million for the six months ended December 31, 2024, with compensation and benefits being the largest component of the increase[188]. - Noninterest expense rose by $335,000, or 7.1%, to $5.0 million for the three months ended December 31, 2024, with compensation and benefits accounting for a $352,000 increase[200]. Taxation - Effective tax rate for the six months ended December 31, 2024, was 26.9%, compared to 25.4% for the same period in 2023, resulting in a provision for income tax of $681,000[189]. - Provision for income tax was $463,000 for the three months ended December 31, 2024, compared to $47,000 for the same period in 2023, reflecting an effective tax rate increase from 20.3% to 27.5%[201]. Cash Flow - Net cash provided by operating activities was $2.0 million for the six months ended December 31, 2024, compared to $1.1 million for the same period in 2023[214]. - Commitments to fund loans increased to $10.3 million at December 31, 2024, up from $8.3 million at June 30, 2024[216].

Financial Performance - For the three months ended December 31, 2024, net income was $1.2 million, or $0.38 per share, compared to $185,000, or $0.06 per share for the same period in 2023, representing a significant increase [2][3]. - Net interest income for the three months ended December 31, 2024, was $5.0 million, up from $4.4 million in the same period of 2023, indicating a growth of approximately 14% [3][9]. - Interest income increased to $11.0 million for the three months ended December 31, 2024, compared to $10.2 million for the same period in 2023, reflecting an increase of about 7.8% [3][9]. - Noninterest income rose to $1.3 million for the three months ended December 31, 2024, from $915,000 in the same period of 2023, marking an increase of approximately 38% [3][9]. Assets and Equity - Total assets at December 31, 2024, were $885.1 million, a slight decrease from $887.7 million at June 30, 2024 [5][11]. - Stockholders' equity increased to $75.9 million at December 31, 2024, from $73.9 million at June 30, 2024, driven by net income and other comprehensive income [5][11]. - The book value per share at the end of the quarter was $22.66, up from $22.04 at June 30, 2024 [5][11][13]. Deposits and Withdrawals - Deposits decreased to $682.1 million at December 31, 2024, down from $727.2 million at June 30, 2024, primarily due to a withdrawal of $62.7 million from a public entity [5][11]. Asset Quality - The return on average assets for the six months ended December 31, 2024, was 0.42%, compared to 0.20% for the year ended June 30, 2024 [10]. - Non-performing assets increased to $248,000 at December 31, 2024, from $173,000 at June 30, 2024, with non-performing assets to total assets ratio at 0.03% [12].

Group 1 - Stilwell Activist Investments, L.P. is one of the largest stockholders of IF Bancorp, Inc. and has called for a prompt sale of the company, which was approved by stockholders at the recent Annual Meeting by a 3:2 margin [1][4] - The Proposal for the sale of IF Bancorp is non-binding, but stockholders are urging the Board of Directors to act quickly [1][4] - If the sale does not occur promptly, Stilwell intends to seek board representation at the 2025 annual meeting of stockholders [2] Group 2 - The Proposal states that stockholders recommend the Board of Directors take necessary steps to effectuate a sale of the Company [3] - Stilwell believes that the returns on IF Bancorp's assets have been subpar for many years, and that stockholders would benefit from a sale at the earliest opportunity for the highest price available [4]

Financial Performance - Net interest income increased to $4.8 million for the three months ended September 30, 2024, from $4.6 million for the same period in 2023[135]. - Net income for the three months ended September 30, 2024, was $633,000, compared to $466,000 for the same period in 2023, reflecting an increase due to higher net interest income and noninterest income[137]. - Net income for the three months ended September 30, 2024, increased by $167,000 to $633,000, compared to $466,000 for the same period in 2023[155]. - Noninterest income increased by $280,000, or 24.8%, to $1.4 million for the three months ended September 30, 2024, mainly from customer service fees and other income[165]. Asset and Liability Management - Total assets increased by $5.7 million, or 0.6%, to $893.4 million at September 30, 2024, from $887.7 million at June 30, 2024[146]. - Net loans receivable increased by $7.8 million, or 1.2%, to $647.1 million at September 30, 2024, driven by a $5.1 million increase in commercial real estate loans and a $7.1 million increase in commercial business loans[147]. - Investment securities increased by $2.2 million, or 1.1%, to $192.7 million at September 30, 2024[148]. - Deposits decreased by $50.0 million, or 6.9%, to $677.2 million at September 30, 2024, primarily due to a $66.5 million decrease in noninterest bearing demand accounts[152]. - Advances from the Federal Home Loan Bank of Chicago increased by $50.5 million to $83.5 million at September 30, 2024[152]. Credit Quality - Non-performing assets totaled $201,000, or 0.1% of total loans, at September 30, 2024, remaining stable compared to previous periods[136]. - The allowance for credit losses on off-balance sheet credit exposures increased to $103,000 at September 30, 2024, from $98,000 at June 30, 2024[153]. - Provision for credit losses was $382,000 for the three months ended September 30, 2024, compared to $222,000 for the same period in 2023[162]. - The allowance for credit losses on loans was $7.5 million, or 1.14% of total loans, at September 30, 2024, compared to $7.4 million, or 1.20% at September 30, 2023[162]. - At September 30, 2024, non-accrual loans totaled $163,000, consisting of one commercial real estate loan and one consumer loan[167]. Capital and Liquidity - The company was categorized as "well capitalized" under federal regulations as of September 30, 2024[136]. - Total equity increased by $4.8 million, or 6.6%, to $78.8 million at September 30, 2024, from $73.9 million at June 30, 2024[154]. - As of September 30, 2024, the liquidity ratio averaged 24.3% of total assets, indicating strong liquidity management[176]. - Cash and cash equivalents totaled $7.8 million, with interest-earning time deposits at $250,000 as of September 30, 2024[178]. - The Community Bank Leverage Ratio was 9.5% as of September 30, 2024, exceeding the minimum requirement of 9.0%[190]. Interest Income and Expense - Interest income increased by $1.6 million, or 17.5%, to $10.9 million for the three months ended September 30, 2024, primarily due to a $1.7 million increase in interest income on loans[158]. - Interest expense increased by $1.4 million, or 29.4%, to $6.1 million for the three months ended September 30, 2024, due to higher average costs and balances of interest-bearing liabilities[159]. - Total interest-earning assets amounted to $849.675 million, with a net interest margin of 2.27% for the three months ended September 30, 2024[193]. - The average balance of loans was $649.753 million, generating interest income of $9.475 million at a yield of 5.83%[192]. - Total interest-bearing liabilities were $758.728 million, with a cost of $6.092 million, resulting in an interest rate spread of 1.93%[193]. Future Outlook - The Company anticipates sufficient funds to meet current commitments through liquid assets and borrowing capacity[182]. - The level of nonperforming assets may fluctuate due to growth in the loan portfolio and changes in market conditions[175]. - As of September 30, 2024, there were no material changes in interest rate risk compared to the previous fiscal year[197].

Financial Performance - For the three months ended September 30, 2024, net income was $633,000, or $0.20 per share, compared to $466,000, or $0.15 per basic share for the same period in 2023, representing a 35.8% increase in net income [1][2]. - Net interest income increased to $4.8 million for the three months ended September 30, 2024, from $4.6 million in the same period of 2023, reflecting a growth of 4.3% [2]. - Interest income rose to $10.9 million for the three months ended September 30, 2024, up from $9.3 million in 2023, marking an increase of 17.3% [2][8]. - Noninterest income rose to $1.4 million for the three months ended September 30, 2024, compared to $1.1 million in 2023, an increase of 27.0% [2][8]. - The return on average assets for the three months ended September 30, 2024, was 0.28%, up from 0.20% for the year ended June 30, 2024 [9]. - The net interest margin on average interest-earning assets was 2.27% for the three months ended September 30, 2024, compared to 2.10% for the year ended June 30, 2024 [9]. Assets and Equity - Total assets at September 30, 2024, were $893.4 million, an increase from $887.7 million at June 30, 2024, indicating a growth of 0.8% [3][10]. - Stockholders' equity increased to $78.8 million at September 30, 2024, from $73.9 million at June 30, 2024, representing a growth of 6.6% [3][10]. Deposits and Credit Losses - Deposits decreased significantly to $677.2 million at September 30, 2024, from $727.2 million at June 30, 2024, a decline of 6.9% due to the withdrawal of $62.7 million in deposits from a public entity [3][10]. - The provision for credit losses was $382,000 for the three months ended September 30, 2024, compared to $222,000 for the same period in 2023, reflecting a 72.1% increase [2][8].

Loan Portfolio and Credit Risk - As of June 30, 2024, the company's total loan portfolio included $200.0 million (30.9%) in commercial real estate loans, $126.0 million (19.5%) in multi-family loans, and $91.8 million (14.2%) in commercial business loans[164]. - The company's non-performing assets totaled $173,000 as of June 30, 2024, which includes non-accrual loans and loans 90 days or more delinquent[168]. - The allowance for credit losses was 1.16% of total loans as of June 30, 2024, indicating potential risks in loan repayment[171]. - Loan participations accounted for $51.8 million (8.0%) of the company's gross loans as of June 30, 2024, with most being within 100 miles of the primary lending market[167]. - The company faces increased credit risk as it continues to grow its commercial real estate, multi-family, and commercial business loans, which generally have higher risk than residential loans[164]. - The company adopted the CECL model for measuring credit losses effective July 1, 2023, which may impact the calculation of its allowance for credit losses[172]. - The allowance for credit losses is evaluated regularly and reflects significant judgment, impacting financial results[221]. - The company utilizes a current expected credit loss (CECL) methodology for estimating credit losses, focusing on pools of loans with similar risks[220]. - The consolidated allowance for credit losses (ACL) was $7.5 million as of June 30, 2024, reflecting management's estimates to cover potential credit losses[294]. - The company recorded a provision for credit losses on loans of $150,000 in 2024, compared to a credit of $(228,000) in 2023, indicating a shift in credit quality assessment[309]. Financial Performance - Net income for the year ended June 30, 2024, was $1.8 million, a decline from $4.7 million in 2023[214]. - Net income decreased by $2.9 million, or 61.6%, to $1.8 million for the year ended June 30, 2024, from $4.7 million for the year ended June 30, 2023[235]. - The efficiency ratio increased to 89.21% for the year ended June 30, 2024, compared to 76.86% for the year ended June 30, 2023[236]. - Return on average assets decreased to 0.20% for the year ended June 30, 2024, from 0.56% for the year ended June 30, 2023[235]. - Noninterest income increased by $317,000, or 7.8%, to $4.4 million for the year ended June 30, 2024, driven by gains on the sale of loans and insurance commissions[243]. - Noninterest expense decreased by $306,000, or 1.5%, to $19.7 million for the year ended June 30, 2024, with significant reductions in compensation and benefits[244]. - The company reported a comprehensive income of $2,879,000 in 2024, significantly higher than $358,000 in 2023[305]. Interest Income and Expenses - Net interest income decreased to $17.7 million for the year ended June 30, 2024, down from $22.0 million in 2023, with a net interest rate spread of 1.78% compared to 2.62% in the previous year[214]. - Interest and dividend income increased by $8.9 million, or 27.8%, to $41.0 million for the year ended June 30, 2024, from $32.1 million for the year ended June 30, 2023[237]. - Interest expense increased by $13.2 million, or 130.8%, to $23.3 million for the year ended June 30, 2024, from $10.1 million for the year ended June 30, 2023[238]. - The net interest margin fell to 2.10% in 2024, down from 2.80% in 2023, reflecting a decrease of 0.70%[247]. Asset and Equity Management - Total assets increased to $887.7 million as of June 30, 2024, from $848.976 million in 2023, reflecting growth from $377.2 million in 2009[212]. - Total equity rose to $73.9 million as of June 30, 2024, compared to $71.8 million in 2023[226]. - Total liabilities increased to $813,829,000 in 2024 from $777,223,000 in 2023, an increase of approximately 4.7%[299]. - The total amount of loans originated held for sale was $13,531,000 in 2024, compared to $7,554,000 in 2023, reflecting an increase of 79.5%[309]. Market and Economic Conditions - The State of Illinois faces significant financial difficulties, including pension funding shortfalls, which could adversely affect borrowers and the company's business operations[188]. - A deterioration in local economic conditions could lead to reduced demand for products and services, increased non-performing loans, and declining collateral values[190]. - Monetary policies and regulations from the Federal Reserve Board could adversely affect the company's financial condition and results of operations[192]. - The company operates in a highly competitive environment, which may limit growth and profitability due to aggressive pricing from competitors[194]. Regulatory and Compliance Issues - Regulatory changes from the Dodd-Frank Act may restrict business activities and adversely affect the performance of the company's loan and investment portfolios[195]. - The audit identified the valuation of the ACL as a critical audit matter due to the significant judgment required in estimating credit losses[295]. - The company’s management is responsible for the determination of the ACL, which involves subjective factors such as historical loss rates and risk grading[294]. Operational and Technological Risks - The company may face operational risks due to high transaction volumes and reliance on technology systems, which could impact financial performance[175]. - The company has established an Information Security Program to mitigate cybersecurity risks, which is reviewed and modified annually[201]. Dividends and Shareholder Returns - The company paid dividends of $0.20 per share in October 2023 and April 2024, with future payments dependent on various financial factors[210]. - The company paid dividends of $1,279,000 in 2024, slightly increasing from $1,269,000 in 2023[311]. Cash and Liquidity Management - Cash and cash equivalents totaled $9.6 million as of June 30, 2024[258]. - The liquidity ratio averaged 25.9% of total assets, down from 29.3% in 2023[257]. - The company has approximately $350,000 in cash exceeding federally insured limits, highlighting potential liquidity risks[318].