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].

Financial Performance - Net interest income decreased to $4.6 million for the three months ended September 30, 2023, down from $6.3 million for the same period in 2022[157]. - Net income for the three months ended September 30, 2023, was $466,000, compared to $2.0 million for the same period in 2022, reflecting a decrease due to lower net interest income and increased provision for credit losses[159]. - Net income for the three months ended September 30, 2023, decreased by $1.5 million to $466,000, compared to $2.0 million for the same period in 2022[177]. - Noninterest income decreased by $90,000, or 7.4%, to $1.1 million for the three months ended September 30, 2023, from $1.2 million for the same period in 2022[186]. - Noninterest expense remained unchanged at $4.8 million for both the three months ended September 30, 2023, and September 30, 2022[187]. Asset and Liability Management - Total assets increased by $21.7 million, or 2.6%, to $870.7 million at September 30, 2023, primarily due to a $27.1 million increase in net loans[168]. - Total liabilities were $783.3 million as of September 30, 2023, compared to $733.9 million as of June 30, 2023[214]. - Total interest-earning assets amounted to $811.6 million for the three months ended September 30, 2023, with a net interest income of $4.6 million[214]. - Total interest-earning assets increased by $2,213 million, with loans contributing $2,133 million to this increase[217]. - Total interest-bearing liabilities rose to $3,880 million, with certificates of deposit accounting for $2,081 million of the total[217]. Loan and Deposit Activity - Net loans receivable increased by $27.1 million, or 4.6%, to $614.6 million at September 30, 2023, driven by a 42.8% increase in construction loans[169]. - Deposits decreased by $48.2 million, or 6.6%, to $687.1 million at September 30, 2023, with a significant drop in noninterest bearing demand accounts[174]. - Interest-bearing checking or NOW accounts saw a decrease of $6 million, while savings accounts increased by $61 million[217]. - Commitments to fund loans increased to $15.5 million as of September 30, 2023, from $5.1 million as of June 30, 2023[204]. Interest Income and Expense - Interest income increased by $2.2 million, or 31.3%, to $9.3 million for the three months ended September 30, 2023, from $7.1 million for the same period in 2022[180]. - Interest expense increased by $3.9 million, or 468.6%, to $4.7 million for the three months ended September 30, 2023, from $828,000 for the same period in 2022[181]. - The net interest margin decreased to 2.26% for the three months ended September 30, 2023, down from 3.26% in the same period of 2022[214]. Credit Quality - The allowance for credit losses on off-balance sheet credit exposures decreased to $129,000 at September 30, 2023, from $216,000 at June 30, 2023[175]. - Non-performing loans totaled $136,000, or 0.1% of total loans, at September 30, 2023, consistent with the previous quarter[158]. - The allowance for credit losses increased by $311,000 to $7.5 million at September 30, 2023, from $7.1 million at June 30, 2023[196]. - At September 30, 2023, total non-performing loans to total loans was 0.02%[186]. - Provision for credit losses recorded was $222,000 for the three months ended September 30, 2023, compared to a credit for credit losses of $(88,000) for the same period in 2022[184]. Capital and Liquidity - The Association was categorized as "well capitalized" under federal regulations as of September 30, 2023[159]. - The Community Bank Leverage Ratio was 9.5% as of September 30, 2023, meeting the minimum requirement of 9.0%[212]. - As of September 30, 2023, the liquidity ratio averaged 27.2% of total assets, compared to 29.3% for the year ended June 30, 2023[199]. - Cash and cash equivalents totaled $13.6 million, with interest-earning time deposits at $1.3 million as of September 30, 2023[201]. - The company anticipates sufficient funds to meet current commitments through liquid assets and borrowing capacity[203]. Risk Management - The company performed an internal interest rate risk analysis, with no material changes in interest rate risk as of September 30, 2023[218]. - The analysis of Earnings at Risk and Value at Risk was conducted at least quarterly, ensuring ongoing risk assessment[218].

Financial Position - As of June 30, 2023, consolidated assets were $849.0 million, a decrease from $857.6 million in 2022, while consolidated deposits decreased from $752.0 million to $735.3 million[15]. - The company’s total loans, net of allowance for credit losses, were $587.5 million as of June 30, 2023, compared to $518.9 million in 2022[34]. - Total deposits amounted to $683.7 million as of June 30, 2023, with an average interest rate of 1.17%, compared to $660.7 million and 0.31% in 2022[141]. - The aggregate amount of uninsured deposits was $312.3 million at June 30, 2023, down from $333.9 million in 2022[141]. - Iroquois Federal's capital exceeded all applicable requirements as of June 30, 2023[164]. - As of June 30, 2023, Iroquois Federal was classified as "well-capitalized" with a total risk-based capital ratio exceeding 10.0%[179]. Loan Portfolio Composition - The loan portfolio composition as of June 30, 2023, included one- to four-family residential loans at $163.9 million (27.57%), multi-family loans at $89.6 million (15.08%), and commercial loans at $193.7 million (32.59%)[34]. - As of June 30, 2023, one- to four-family residential mortgage loans accounted for $163.9 million, or 27.6% of the total loan portfolio[40]. - Commercial real estate loans comprised $193.7 million, or 32.6% of the loan portfolio, while multi-family loans accounted for $89.6 million, or 15.1%[52]. - At June 30, 2023, commercial business loans outstanding were $79.7 million, representing 13.4% of the total loan portfolio, with $44.9 million in unfunded commitments[62]. - Construction loans made up $51.0 million, or 8.6% of the total loan portfolio, secured by various real estate properties[66]. Loan Performance and Credit Quality - Non-performing loans to total loans ratio improved to 0.02% at June 30, 2023, compared to 0.22% at June 30, 2022[82]. - Non-performing loans decreased to $117,000 at June 30, 2023, down from $1.2 million at June 30, 2022[122]. - Total delinquent loans decreased by $1.1 million to $202,000 at June 30, 2023, from $1.3 million at June 30, 2022[90]. - Troubled debt restructurings amounted to approximately $215,000 at June 30, 2023, down from $998,000 at June 30, 2022[86]. - The allowance for credit losses increased by $87,000 to $7.1 million at June 30, 2023, compared to $7.1 million at June 30, 2022[114]. Regulatory Compliance and Capital Requirements - The risk-based capital standards require a minimum common equity Tier 1 capital ratio of 4.5%, Tier 1 capital ratio of 6%, and total capital ratio of 8%[158]. - Iroquois Federal opted into the community bank leverage ratio framework effective March 31, 2020, with a required leverage ratio of 9%[163][162]. - The company has sufficient capital to increase purchases of loan participations, which totaled $46.1 million at June 30, 2023, up from $30.0 million at June 30, 2022[74]. - The company’s loan approval limits allow for one- to four-family residential mortgage loans up to $100,000 by loan officers and up to $2 million by the Loan Committee[76]. - The company is required to hold shares of capital stock in the Federal Home Loan Bank, and it was in compliance with this requirement as of June 30, 2023[187]. Market Position and Competition - The company ranked second in Iroquois County with a 19.95% deposit market share and first in Vermilion County with a 25.86% deposit market share as of June 30, 2022[28]. - The primary lending market includes counties with a population decline, except for Champaign County, which saw a 2.7% increase since April 2010[24]. - The company emphasizes the origination of commercial loans, which generally carry higher risks compared to residential real estate loans[202]. Operational Risks and Challenges - The company may face increased cybersecurity risks if employees are required to work remotely due to health crises, potentially disrupting business operations[213]. - The company’s financial condition may be adversely affected by epidemics or pandemics, impacting general commercial activity and economic conditions[212]. - Management's involvement is crucial for resolving non-performing assets, which can distract from overall operations and income-generating activities[208]. Investment and Funding - The company held $3.4 million in municipal securities, all issued by local governments and school districts within its market area[130]. - The company had $3.1 million in Federal Home Loan Bank of Chicago common stock related to borrowing activities totaling $19.5 million as of June 30, 2023[131]. - At June 30, 2023, the company invested $14.8 million in bank-owned life insurance, which was 16.2% of its Tier 1 capital plus allowance for credit losses[132]. - The company is increasingly dependent on external funding sources, which may affect financial flexibility and profitability if access to these sources is constrained[203].

Financial Performance - Net interest income increased to $17.3 million for the nine months ended March 31, 2023, from $16.6 million for the same period in 2022[172]. - The Company’s net income for the nine months ended March 31, 2023, was $4.1 million, compared to $4.7 million for the same period in 2022[174]. - Net income for the nine months ended March 31, 2023, decreased by $686,000 to $4.1 million, compared to $4.7 million for the same period in 2022[198]. - Interest and dividend income rose by $4.8 million, or 26.0%, to $23.4 million for the nine months ended March 31, 2023, compared to $18.6 million for the same period in 2022[200]. - Noninterest income decreased by $1.4 million, or 31.8%, to $3.0 million for the nine months ended March 31, 2023, from $4.4 million for the same period in 2022[206]. - Noninterest income decreased by $512,000, or 35.2%, to $942,000 for the three months ended March 31, 2023, from $1.5 million for the same period in 2022, primarily due to declines in mortgage banking income and brokerage commissions[218]. Loan and Asset Management - Net loans receivable increased by $59.6 million, or 11.5%, to $578.5 million at March 31, 2023, compared to $518.9 million at June 30, 2022[190]. - Non-performing loans totaled $335,000, or 0.1% of total loans, at March 31, 2023, down from $1.2 million, or 0.2%, at June 30, 2022[173]. - Total loans for the three months ended March 31, 2023, amounted to $581.6 million, generating interest income of $6.69 million with a yield of 4.60%[247]. - Commitments to fund loans totaled $16.7 million as of March 31, 2023, down from $28.0 million at June 30, 2022[237]. Capital and Liquidity - The Association was categorized as "well capitalized" under regulatory capital requirements as of March 31, 2023[174]. - The Company maintains total liquidity sources providing $429.5 million of additional capacity as of March 31, 2023[179]. - The allowance for credit losses was $7.5 million, or 1.29% of total loans at March 31, 2023, compared to $6.6 million, or 1.31% of total loans at March 31, 2022[205]. - The allowance for credit losses increased by $483,000 to $7.5 million at March 31, 2023, from $7.1 million at June 30, 2022[226]. - As of March 31, 2023, the Association had Federal Home Loan Bank advances of $56.5 million and the ability to borrow an additional $92.4 million from the Federal Home Loan Bank of Chicago[238]. - The Association's Community Bank Leverage Ratio was 9.8% as of March 31, 2023, exceeding the minimum requirement of 9.0%[245]. Expense Management - Interest expense increased by $4.1 million, or 215.6%, to $6.1 million for the nine months ended March 31, 2023, from $1.9 million for the same period in 2022[201]. - Noninterest expense remained stable at $14.6 million for both the nine months ended March 31, 2023, and 2022[208]. - Noninterest expense decreased by $202,000, or 4.0%, to $4.8 million for the three months ended March 31, 2023, from $5.0 million for the same period in 2022[219]. Asset Composition - Total assets decreased by $14.6 million, or 1.7%, to $843.0 million at March 31, 2023, from $857.6 million at June 30, 2022[189]. - Investment securities decreased by $13.2 million, or 6.0%, to $207.7 million at March 31, 2023, from $220.9 million at June 30, 2022[191]. - The Association's total assets as of March 31, 2023, were $841.351 million, compared to $778.673 million as of March 31, 2022[248]. - Total interest-earning assets increased by $129 million to $2.195 billion for the three months ended March 31, 2023, compared to the same period in 2022[254]. Interest Rate and Yield Analysis - The net interest income for the three months ended March 31, 2023, was $5.036 million, resulting in a net interest margin of 2.52%[248]. - For the nine months ended March 31, 2023, total interest-earning assets were $779.846 million, yielding interest income of $23.382 million at a yield of 4.00%[251]. - The average interest-bearing liabilities for the nine months ended March 31, 2023, were $688.407 million, with total interest expense of $6.051 million, resulting in a cost of 1.17%[251]. - The interest rate spread for the nine months ended March 31, 2023, was 2.83%[251]. - There were no material changes in interest rate risk as of March 31, 2023, compared to the analysis disclosed in the Company's Form 10-K for the fiscal year ended June 30, 2022[255].

Financial Performance - Net income for the six months ended December 31, 2022, was $3.4 million, compared to $3.6 million for the same period in 2021[166]. - Net income decreased by $300,000 to $1.4 million for the three months ended December 31, 2022, compared to $1.7 million for the same period in 2021[206]. - Noninterest income decreased by $899,000, or 30.1%, to $2.1 million for the six months ended December 31, 2022 from $3.0 million for the same period in 2021[202]. - Noninterest income decreased by $572,000, or 39.7%, to $868,000 for the three months ended December 31, 2022, primarily due to a decrease in gain on sale of loans[214]. - Noninterest expense increased by $217,000, or 2.3%, to $9.8 million for the six months ended December 31, 2022 from $9.6 million for the same period in 2021[204]. - Noninterest expense increased by $60,000, or 1.2%, to $4.9 million for the three months ended December 31, 2022, with equipment and advertising expenses being the largest contributors[215]. Asset and Liability Management - Total assets decreased by $33.8 million, or 3.9%, to $823.7 million at December 31, 2022, from $857.6 million at June 30, 2022[185]. - Total assets as of December 31, 2022, were $816.50 million, an increase from $773.80 million as of December 31, 2021[245]. - Net loans receivable increased by $42.3 million, or 8.2%, to $561.3 million at December 31, 2022 from $518.9 million at June 30, 2022[186]. - Investment securities decreased by $12.8 million, or 5.8%, to $208.1 million at December 31, 2022 from $220.9 million at June 30, 2022[187]. - Deposits decreased by $84.7 million, or 11.3%, to $667.3 million at December 31, 2022 from $752.0 million at June 30, 2022[190]. - The total interest-bearing liabilities increased to $689.40 million for the three months ended December 31, 2022, compared to $628.94 million in 2021[245]. Income and Expense Analysis - Net interest income increased to $12.3 million for the six months ended December 31, 2022, compared to $11.3 million for the same period in 2021[164]. - Net interest income for the three months ended December 31, 2022, was $6.045 million, up from $5.679 million in 2021[245]. - Interest and dividend income increased by $2.6 million, or 20.9%, to $15.2 million for the six months ended December 31, 2022 from $12.6 million for the same period in 2021[196]. - Interest and dividend income rose by $1.8 million, or 28.5%, to $8.1 million for the three months ended December 31, 2022, primarily due to a $1.5 million increase in interest income on loans[208]. - Interest expense surged by $1.4 million, or 228.7%, to $2.1 million for the three months ended December 31, 2022, due to an 80 basis point increase in the average cost of interest-bearing liabilities[209]. Credit Quality and Risk Management - Non-performing loans totaled $251,000, or 0.1% of total loans, at December 31, 2022, down from $1.2 million, or 0.2%, at June 30, 2022[165]. - The total non-performing loans to total loans ratio was 0.04% at December 31, 2022, down from 0.22% at June 30, 2022[202]. - The allowance for credit losses was $7.2 million, or 1.26% of total loans, at December 31, 2022[201]. - The provision for credit losses totaled $101,000 for the three months ended December 31, 2022, compared to a credit for credit losses of $(76,000) for the same period in 2021[213]. - The allowance for credit losses increased by $114,000 to $7.2 million at December 31, 2022, reflecting an increase in the loan portfolio[223]. - The Company continues to monitor market risks and assess its earnings at risk and value at risk on a quarterly basis[252]. Capital and Liquidity - As of December 31, 2022, the Association was categorized as "well capitalized" under regulatory capital requirements[166]. - The Community Bank Leverage Ratio was 9.9% as of December 31, 2022, slightly up from 9.8% in June 2022, exceeding the minimum requirement of 9.0%[242]. - The liquidity ratio averaged 30.2% of total assets for the three months ended December 31, 2022, indicating sufficient liquidity to meet financial obligations[227]. - The Company maintains access to multiple sources of liquidity, although elevated funding costs could adversely affect the net interest margin[171]. Shareholder Activity - The Company repurchased 1,674,479 shares of common stock under stock repurchase plans as of December 31, 2022[159].

Table of Contents SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant To Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended September 30, 2022 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 No. 001-35226 IF Bancorp, Inc. (Exact name of registrant as specified in its charter) Maryland 45-1834449 (Sta ...

Financial Position - As of June 30, 2022, IF Bancorp had consolidated assets of $857.6 million, consolidated deposits of $752.0 million, and consolidated equity of $71.7 million[18]. - The company ranked second in Iroquois County with a 20.96% deposit market share and first in Vermilion County with a 25.56% deposit market share as of June 30, 2021[30]. - Total deposits increased to $660.748 million as of June 30, 2022, up from $608.268 million in 2021, representing an increase of 8.5%[143]. - Iroquois Federal's capital exceeded all applicable regulatory requirements as of June 30, 2022[165]. - As of June 30, 2022, Iroquois Federal was classified as "well-capitalized" with a total risk-based capital ratio of 10.0% or greater[181]. Loan Portfolio Composition - The loan portfolio composition as of June 30, 2022, included one- to four-family loans at $132.5 million (25.20%), multi-family loans at $88.2 million (16.78%), and commercial loans at $167.4 million (31.84%)[37]. - As of June 30, 2022, the total loan portfolio included $132.5 million in one- to four-family residential mortgage loans, representing 25.2% of the total[43]. - Commercial real estate loans comprised $167.4 million, or 31.8% of the total loan portfolio, while multi-family real estate loans accounted for $88.2 million, or 16.8%[54]. - At June 30, 2022, commercial business loans outstanding were $80.4 million, representing 15.3% of the total loan portfolio[64]. - Construction loans made up $41.3 million, or 7.9% of the total loan portfolio, as of June 30, 2022[68]. Loan Performance and Risk - The total non-performing loans amounted to $1.174 million, a significant increase from $152,000 in 2021[84]. - The total delinquent loans increased to $1.339 million at June 30, 2022, up from $204,000 at June 30, 2021, primarily due to two purchased loans that received COVID-19 modifications[93]. - At June 30, 2022, troubled debt restructurings were approximately $998,000, down from $1.3 million in 2021[88]. - Non-performing assets totaled $1.294 million at June 30, 2022, compared to $411,000 in 2021[84]. - The ratio of non-performing loans to total loans was 0.22% at June 30, 2022, compared to 0.03% in 2021[85]. Allowance for Loan Losses - The allowance for loan losses increased by $453,000 to $7.1 million at June 30, 2022, compared to $6.6 million at June 30, 2021, due to loan growth and changes in the loan portfolio mix[113]. - The allowance for loan losses methodology includes specific allowances for impaired loans and a general allowance based on estimated credit losses inherent in the loan portfolio[104]. - The allowance for loan losses represented 1.34% of total loans at June 30, 2022, up from 1.27% at June 30, 2021[125]. - The allowance for loan losses to non-performing loans at the end of the period was 600.68% at June 30, 2022, compared to 4341.45% at June 30, 2021[124]. - The company's net charge-offs for the entire portfolio total was 0.04% as of June 30, 2022, down from 0.06% in 2021[116]. Economic and Market Conditions - The unemployment rate in Iroquois County decreased from 4.7% to 3.9%, and in Vermilion County from 7.2% to 5.5% over the past year[26]. - Future growth opportunities will be influenced by economic and demographic characteristics of the primary market area, particularly in Champaign County, which has experienced population growth[26]. - The economic impact of the COVID-19 pandemic has caused significant disruptions, affecting the company's financial condition and operations[203]. - The Federal Reserve Board's target federal funds rate was 1.50% to 1.75% at June 30, 2022, which may impact net interest margin and income[210]. - The company may face challenges in maintaining sufficient funding sources to support future growth, relying on FHLB advances and brokered certificates of deposit[211]. Regulatory Environment - Iroquois Federal received a "satisfactory" rating under the Community Reinvestment Act in its most recent federal examination[171]. - The FDIC insures deposits at Iroquois Federal up to a maximum of $250,000 per depositor[182]. - The OCC has the authority to take enforcement actions against Iroquois Federal for non-compliance with safety and soundness standards[176]. - Federal regulations permit Iroquois Federal to establish branches in any state, subject to OCC approval[179]. - The Dodd-Frank Act requires savings and loan holding companies to act as a source of strength for their subsidiaries, impacting capital management strategies[198].