IF Bancorp(IROQ) - 2025 Q2 - Quarterly Report

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].