IF Bancorp(IROQ) - 2025 Q1 - Quarterly Report

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].