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].

Financial Performance - Net income for the fiscal year ended June 30, 2024, was $1.8 million, a decrease of $2.9 million or 61.6% from $4.7 million in the previous year[3] - Net interest income decreased to $17.7 million for the year ended June 30, 2024, down from $22.0 million for the year ended June 30, 2023[3] - Noninterest income rose to $4.4 million for the year ended June 30, 2024, compared to $4.1 million for the year ended June 30, 2023[3] - Return on average assets decreased to 0.20% for the year ended June 30, 2024, down from 0.56% for the previous year[10] Interest and Loans - Interest income increased to $41.0 million for the year ended June 30, 2024, compared to $32.1 million for the year ended June 30, 2023[3] - Net loans receivable rose to $639.3 million at June 30, 2024, up from $587.5 million at June 30, 2023[4] Assets and Borrowings - Total assets increased to $887.7 million at June 30, 2024, from $849.0 million at June 30, 2023[4] - Total borrowings increased significantly to $76.0 million at June 30, 2024, from $30.3 million at June 30, 2023[4] Credit Losses and Dividends - The allowance for credit losses on loans increased to $7.5 million at June 30, 2024, from $7.1 million at June 30, 2023[5] - The company plans to pay a cash dividend of $0.20 per common share on or about October 18, 2024[5]

Financial Performance - Net income for the nine months ended March 31, 2024, was $1.4 million, compared to $4.1 million for the same period in 2023[163]. - Net income decreased by $2.7 million to $1.4 million for the nine months ended March 31, 2024, compared to $4.1 million for the same period in 2023[181]. - Net income for the three months ended March 31, 2024, increased by $18,000 to $708,000 compared to $690,000 for the same period in 2023[193]. Assets and Loans - Total assets increased by $56.0 million, or 6.6%, to $905.0 million at March 31, 2024, from $849.0 million at June 30, 2023[172]. - Net loans receivable increased by $55.9 million, or 9.5%, to $643.3 million at March 31, 2024, primarily driven by a $38.1 million, or 42.5%, increase in multi-family loans[173]. - Total loans for the three months ended March 31, 2024, amounted to $661,492 thousand, generating interest income of $9,273 thousand with a yield of 5.61%, compared to $581,600 thousand in loans and $6,690 thousand in interest income at a yield of 4.60% for the same period in 2023[231]. Interest Income and Expense - Net interest income decreased to $13.2 million for the nine months ended March 31, 2024, from $17.3 million for the same period in 2023[161]. - Interest and dividend income increased by $6.9 million, or 29.7%, to $30.3 million for the nine months ended March 31, 2024, driven by a $6.8 million increase in interest on loans[184]. - Interest expense increased by $11.0 million, or 182.5%, to $17.1 million for the nine months ended March 31, 2024, primarily due to an $8.4 million increase in interest on deposits[185]. Credit Losses and Allowance - The allowance for credit losses is evaluated regularly and reflects significant judgments and assumptions regarding the collectability of the loan portfolio[168]. - Provision for credit losses totaled $196,000 for the nine months ended March 31, 2024, compared to $253,000 for the same period in 2023, with an allowance for credit losses at $7.7 million, or 1.19% of total loans[188]. - The company recorded a provision (credit) for credit losses of $(390,000) for the three months ended March 31, 2024, compared to a provision of $240,000 for the same period in 2023, reflecting a significant recovery in the loan portfolio[200]. Deposits and Equity - Deposits decreased by $53.5 million, or 7.3%, to $681.8 million at March 31, 2024, primarily due to a significant withdrawal from a public entity[178]. - Total equity increased by $631,000, or 0.9%, to $72.4 million as of March 31, 2024, from $71.8 million at June 30, 2023, primarily due to net income of $1.4 million[180]. Noninterest Income and Expense - Noninterest income increased by $155,000, or 5.1%, to $3.2 million for the nine months ended March 31, 2024, primarily due to gains on the sale of loans and securities[190]. - Noninterest expense decreased by $222,000, or 1.5%, to $14.4 million for the nine months ended March 31, 2024, with notable decreases in compensation and benefits[191]. - Noninterest income increased by $198,000, or 21.0%, to $1.1 million for the three months ended March 31, 2024, driven by increases in mortgage banking income, insurance commissions, and gains on loan sales[201]. Regulatory and Capital Ratios - As of March 31, 2024, the Community Bank Leverage Ratio was 9.03%, slightly down from 9.51% on June 30, 2023, and above the minimum requirement of 9.00%[229]. - The Association maintained a well-capitalized status under the regulatory framework for prompt corrective action, with no changes in conditions or events affecting this status[228]. Cash Flow and Commitments - Net cash provided by operating activities was $1.1 million for the nine months ended March 31, 2024, compared to $1.7 million for the same period in 2023[219]. - The company had commitments to fund loans of $9.1 million and lines of credit totaling $75.9 million as of March 31, 2024[221].

Financial Performance - For the three months ended March 31, 2024, net income was $708,000, or $0.22 per basic and diluted share, compared to $690,000, or $0.22 per basic share and $0.21 per diluted share for the same period in 2023[2] - Net interest income decreased to $4.3 million for the three months ended March 31, 2024, down from $5.0 million for the same period in 2023[4] - Interest income increased to $10.8 million for the three months ended March 31, 2024, compared to $8.2 million for the same period in 2023[4] - Non-interest income increased to $1.1 million for the three months ended March 31, 2024, from $942,000 for the same period in 2023[4] - Provision for income tax increased to $243,000 for the three months ended March 31, 2024, from $202,000 for the same period in 2023[4] Asset and Liability Management - Total assets increased to $905.0 million at March 31, 2024, from $849.0 million at June 30, 2023[6] - Deposits decreased to $681.8 million at March 31, 2024, from $735.3 million at June 30, 2023, largely due to a withdrawal of approximately $62.1 million in deposits from a public entity[6] - The allowance for credit losses was $7.7 million at March 31, 2024, compared to $7.1 million at June 30, 2023[14] Performance Ratios - Return on average assets was 0.21% for the nine months ended March 31, 2024, down from 0.56% for the same period in 2023[12] - Book value per share increased to $21.59 at March 31, 2024, from $21.39 at June 30, 2023[13]

Financial Performance - The Company reported a net income of $651,000 for the six months ended December 31, 2023, compared to $3.4 million for the same period in 2022[165]. - Net income decreased by $2.7 million to $651,000 for the six months ended December 31, 2023, compared to $3.4 million for the same period in 2022[184]. - Noninterest income decreased by $43,000, or 2.1%, to $2.0 million for the six months ended December 31, 2023, primarily due to a decrease in mortgage banking income[193]. - Noninterest expense decreased by $214,000, or 2.2%, to $9.6 million for the six months ended December 31, 2023, with the largest components being a decrease in compensation and benefits[194]. - Income tax expense provision was $222,000 for the six months ended December 31, 2023, compared to $1.2 million for the same period in 2022, reflecting effective tax rates of 25.4% and 26.7% respectively[195]. Asset and Loan Growth - Total assets increased by $61.8 million, or 7.3%, to $910.8 million at December 31, 2023, from $849.0 million at June 30, 2023[174]. - Net loans receivable increased by $66.1 million, or 11.3%, to $653.6 million at December 31, 2023, driven by a 43.5% increase in multi-family loans[175]. - Total interest-earning assets increased by $745 million to $4,336 million for the six months ended December 31, 2023, compared to the same period in 2022[241]. - Loans increased by $1,084 million for the three months ended December 31, 2023, compared to $1,019 million in the same period of 2022[241]. Interest Income and Expense - Net interest income decreased to $9.0 million for the six months ended December 31, 2023, down from $12.3 million for the same period in 2022[163]. - Interest and dividend income increased by $4.3 million, or 28.6%, to $19.5 million for the six months ended December 31, 2023, driven by a $4.2 million increase in interest income on loans[187]. - Interest expense increased by $7.7 million, or 265.1%, to $10.5 million for the six months ended December 31, 2023, primarily due to an increase in interest on deposits[188]. - The average balance of total interest-bearing deposits for the three months ended December 31, 2023, was $634,795 thousand, with an interest expense of $4,336 thousand and a cost of 2.73%[235]. Capital and Regulatory Compliance - The Association was categorized as "well capitalized" under regulatory capital requirements as of December 31, 2023[165]. - As of December 31, 2023, the Community Bank Leverage Ratio was 9.2%, above the minimum requirement of 9.0%[232]. - The Community Bank Leverage Ratio was opted into by the Association in 2020, currently set at 9%[230]. Deposits and Borrowings - Deposits decreased by $57.3 million, or 7.8%, to $678.0 million at December 31, 2023, primarily due to a significant withdrawal from a public entity[181]. - Borrowings from the Federal Home Loan Bank increased by $78.6 million to $98.1 million at December 31, 2023, from $19.5 million at June 30, 2023[181]. - Federal Home Loan Bank advances were $98.1 million as of December 31, 2023, with additional borrowing capacity of up to $8.5 million available[226]. Credit Quality - Non-performing loans totaled $29,000, or 0.1% of total loans, at December 31, 2023, consistent with the previous quarter[164]. - The allowance for credit losses increased by $796,000 to $7.9 million at December 31, 2023, primarily due to an increase in the loan portfolio[214]. - Provision for credit losses totaled $586,000 for the six months ended December 31, 2023, compared to $13,000 for the same period in 2022[191]. - Provision for credit losses totaled $364,000 for the three months ended December 31, 2023, compared to $101,000 for the same period in 2022, reflecting a significant increase in provisions[203]. Cash Flow - Net cash provided by operating activities was $1.1 million for the six months ended December 31, 2023, compared to $551,000 for the same period in 2022[221]. - Cash and cash equivalents totaled $8.2 million at December 31, 2023, with interest-earning time deposits amounting to $750,000[220].