IF Bancorp(IROQ) - 2025 Q3 - Quarterly Report

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].