IF Bancorp(IROQ) - 2025 Q4 - Annual Results

Financial Highlights and Executive Summary IF Bancorp, Inc. reported strong financial performance for FY2025, with significant increases in net income and EPS, and announced a cash dividend Fiscal Year 2025 and Fourth Quarter Financial Performance IF Bancorp, Inc. reported significant increases in net income and earnings per share for both the fourth quarter and the full fiscal year ended June 30, 2025, driven by improved financial performance Net Income and EPS Overview | Metric | Q4 2025 ($M) | Q4 2024 ($M) | FY 2025 ($M) | FY 2024 ($M) | Change (FY YoY) | | :--------------------- | :------ | :------ | :------ | :------ | :-------------- | | Net Income | $1.4 | $0.431 | $4.3 | $1.8 | +140.4% | | Basic EPS | $0.45 | $0.13 | $1.37 | $0.57 | +140.4% | | Diluted EPS | $0.45 | $0.13 | $1.37 | $0.57 | +140.4% | Management Commentary and Key Financial Drivers Chairman and CEO Walter H. Hasselbring, III highlighted improved net interest margin and higher earnings, affirming the company's focus on enhancing shareholder value - Chairman and CEO Walter H. Hasselbring, III noted continued improvement in net interest margin, leading to higher earnings per share and net income, and stated that the Board and management are actively evaluating opportunities to enhance shareholder value[2] Key Income Statement Changes (FY2025 vs. FY2024) | Metric | FY 2025 ($M) | FY 2024 ($M) | Change ($M) | Change (%) | | :--------------------------- | :----------- | :----------- | :---------- | :--------- | | Net Income | 4.3 | 1.8 | +2.5 | +140.4% | | Net Interest Income | 20.8 | 17.7 | +3.1 | +17.5% | | Interest Income | 43.4 | 41.0 | +2.4 | +5.9% | | Interest Expense | 22.6 | 23.3 | -0.7 | -3.0% | | Credit for Credit Losses | (0.701) | 0.032 | -0.733 | N/A | | Noninterest Income | 4.9 | 4.4 | +0.5 | +11.4% | | Noninterest Expense | 20.5 | 19.7 | +0.8 | +4.1% | | Income Tax Expense | 1.6 | 0.565 | +1.035 | +183.2% | Book Value Per Share | Period | Book Value Per Share | | :----------- | :------------------- | | June 30, 2025 | $24.42 | Dividend Announcement IF Bancorp, Inc. announced a cash dividend of $0.20 per common share, payable in October 2025 Cash Dividend Details | Detail | Value | | :-------------- | :--------------------- | | Dividend Amount | $0.20 per common share | | Payment Date | On or about Oct 17, 2025 | | Record Date | Sep 26, 2025 | Company Information This section describes IF Bancorp, Inc.'s business operations, including its banking services and insurance subsidiary, and outlines important forward-looking statement disclaimers Business Description IF Bancorp, Inc. operates as the holding company for Iroquois Federal Savings and Loan Association, providing banking services through multiple offices in Illinois and a loan production office in Missouri, with a subsidiary focused on property and casualty insurance - IF Bancorp, Inc. is the holding company for Iroquois Federal Savings and Loan Association, operating seven full-service banking offices in Illinois and a loan production office in Missouri, with its wholly-owned subsidiary, L.C.I. Service Corporation, specializing in the sale of property and casualty insurance[5] Forward-Looking Statements and Risk Factors The report includes standard forward-looking statements, cautioning investors about various factors that could cause actual results to differ materially, such as economic conditions, interest rate changes, and regulatory policies - The press release contains 'forward-looking statements' as defined by the PSLRA, identified by specific keywords, for which the Company claims safe harbor protection[6] - Important factors that could cause actual results to differ materially include prevailing economic and geopolitical conditions (e.g., interest rates, loan demand, real estate values), changes in accounting principles, and changes in applicable laws or regulations[7] Detailed Financial Statements and Ratios This section presents comprehensive income statement, balance sheet, and performance ratio data, highlighting the company's financial position and operational efficiency Selected Income Statement Data The detailed income statement shows strong year-over-year growth in net interest income and net income for both the fourth quarter and the full fiscal year 2025, supported by increased interest income and reduced interest expense Selected Income Statement Data | Metric | Q4 2025 ($M) | Q4 2024 ($M) | FY 2025 ($M) | FY 2024 ($M) | | :------------------------------------------------ | :----------- | :----------- | :----------- | :----------- | | Interest income | $10.849 | $10.661 | $43.417 | $40.984 | | Interest expense | 5.097 | 6.162 | 22.603 | 23.255 | | Net interest income | 5.752 | 4.499 | 20.814 | 17.729 | | Provision (credit) for credit losses | (0.371) | (0.164) | (0.701) | 0.032 | | Net interest income after provision (credit) for credit losses | 6.123 | 4.663 | 21.515 | 17.697 | | Noninterest income | 1.103 | 1.203 | 4.944 | 4.386 | | Noninterest expense | 5.233 | 5.335 | 20.542 | 19.728 | | Income before taxes | 1.993 | 0.531 | 5.917 | 2.355 | | Income tax expense | 0.552 | 0.100 | 1.613 | 0.565 | | Net income | $1.441 | $0.431 | $4.304 | $1.790 | | Basic EPS | $0.45 | $0.13 | $1.37 | $0.57 | | Diluted EPS | $0.45 | $0.13 | $1.37 | $0.57 | | Weighted average shares outstanding (Basic) | 3,233,650 | 3,215,905 | 3,151,025 | 3,132,153 | | Weighted average shares outstanding (Diluted) | 3,233,650 | 3,215,905 | 3,151,025 | 3,132,153 | Performance Ratios Key performance ratios for fiscal year 2025 demonstrate improved profitability and efficiency, with significant increases in return on average assets, return on average equity, and net interest margin compared to the prior year Performance Ratios (Fiscal Year Ended June 30) | Ratio | FY 2025 | FY 2024 | | :---------------------------------------- | :------ | :------ | | Return on average assets | 0.49% | 0.20% | | Return on average equity | 5.52% | 2.54% | | Net interest margin on average interest earning assets | 2.47% | 2.10% | Selected Balance Sheet Data The balance sheet at June 30, 2025, shows stable total assets, an increase in cash and cash equivalents, and a notable increase in total stockholders' equity, primarily driven by net income and accumulated other comprehensive income Selected Balance Sheet Data | Metric | June 30, 2025 | June 30, 2024 | | :----------------------------------------- | :------------ | :------------ | | Assets ($M) | $887.659 | $887.745 | | Cash and cash equivalents ($M) | 20.092 | 9.571 | | Investment securities ($M) | 187.753 | 190.475 | | Net loans receivable ($M) | 633.603 | 639.297 | | Deposits ($M) | 721.258 | 727.177 | | Total borrowings, including repurchase agreements ($M) | 72.919 | 76.021 | | Total stockholders' equity ($M) | 81.837 | 73.916 | | Book value per share | $24.42 | $22.04 | | Average stockholders' equity to average total assets | 8.83% | 7.99% | - The increase in stockholders' equity to $81.8 million at June 30, 2025, from $73.9 million at June 30, 2024, was primarily driven by net income of $4.3 million, a $4.3 million increase in accumulated other comprehensive income (loss) net of tax, and ESOP and stock equity plan activity of $608 thousand, partially offset by $1.3 million in dividends[3] Asset Quality Asset quality metrics remained stable with a slight increase in non-performing assets, while the allowance for credit losses decreased, maintaining a low non-performing assets to total assets ratio Asset Quality Metrics | Metric | June 30, 2025 | June 30, 2024 | | :-------------------------------------- | :------------ | :------------ | | Non-performing assets ($M) | $0.211 | $0.173 | | Allowance for credit losses ($M) | 6.627 | 7.499 | | Non-performing assets to total assets | 0.02% | 0.02% | | Allowance for credit losses to total loans | 1.04% | 1.16% | - Non-performing assets include non-accrual loans, loans past due 90 days or more and accruing, and foreclosed assets held for sale[12]