IF Bancorp(IROQ) - 2026 Q1 - Quarterly Report

Financial Performance - Net interest income increased to $6.2 million for the three months ended September 30, 2025, up from $4.8 million for the same period in 2024[149] - Net income for the three months ended September 30, 2025, was $1.4 million, compared to $633,000 for the same period in 2024, driven by increased net interest income and decreased provision for credit losses[151] - Net income increased by $759,000, or 119.9%, to $1.4 million for the three months ended September 30, 2025, compared to $633,000 for the same period in 2024[171] - Noninterest income decreased by $266,000, or 18.9%, to $1.1 million for the three months ended September 30, 2025, from $1.4 million in the prior year[179] - Noninterest expense increased by $467,000, or 9.3%, to $5.5 million for the three months ended September 30, 2025, from $5.0 million for the same period in 2024[180] Asset and Loan Management - Total assets decreased by $25.3 million, or 2.9%, to $862.3 million at September 30, 2025, primarily due to a $14.3 million decrease in net loans[161] - Net loans receivable decreased by $14.3 million, or 2.3%, to $619.3 million at September 30, 2025, with significant declines in multi-family loans and commercial real estate loans[162] - Total interest-earning assets decreased by $1,132 million compared to the previous year, with a net increase of $1,311 million in volume[209] - Commitments to fund loans decreased to $6.6 million as of September 30, 2025, from $7.6 million in June 2025[195] Deposits and Borrowings - Deposits decreased by $41.0 million, or 5.7%, to $680.3 million at September 30, 2025, largely due to a withdrawal of approximately $59.3 million from a public entity[167] - Borrowings from the Federal Home Loan Bank of Chicago increased by $15.0 million to $69.1 million at September 30, 2025[167] - The company had $69.1 million in borrowings from FHLB advances as of September 30, 2025, with additional borrowing capacity of $52.1 million[196] Credit Quality - Non-performing loans totaled $1.0 million, or 0.2% of total loans at September 30, 2025, compared to $46,000, or less than 0.1% at June 30, 2025[150] - The allowance for credit losses on loans was $6.5 million, or 1.04% of total loans, at September 30, 2025, compared to $7.5 million, or 1.14% at the same date in 2024[178] - The provision for credit losses recorded a credit of $42,000 for the three months ended September 30, 2025, compared to a provision of $382,000 for the same period in 2024[177] - Total non-performing loans to total loans was 0.16% at September 30, 2025, compared to 0.01% at June 30, 2025[179] - The level of nonperforming assets may fluctuate due to growth in the loan portfolio and changes in market conditions[189] Interest Rates and Margins - The net interest rate spread was 2.64% for the three months ended September 30, 2025, compared to 1.93% for the same period in 2024[149] - The average yield on loans increased by 19 basis points, or 3.2%, to 6.02% for the three months ended September 30, 2025, from 5.83% for the same period in 2024[173] - Total interest-bearing liabilities decreased by $262 million, with a significant drop in certificates of deposit by $470 million[209] - Interest-bearing deposits saw a total decrease of $683 million, primarily driven by a decline in money market accounts by $186 million[209] - The company performed an internal interest rate risk analysis, with no material changes in interest rate risk as of September 30, 2025, compared to the previous fiscal year[210] Equity and Capitalization - Total equity increased by $2.7 million, or 3.3%, to $84.5 million at September 30, 2025, from $81.8 million at June 30, 2025[169] - The Association was categorized as "well capitalized" under federal regulations as of September 30, 2025[151] - The Community Bank Leverage Ratio was 10.2% as of September 30, 2025, exceeding the minimum requirement of 9.0%[203] Liquidity - As of September 30, 2025, the liquidity ratio averaged 25.0% of total assets, indicating strong liquidity management[190] - Cash and cash equivalents totaled $8.0 million, with interest-earning time deposits at $250,000 as of September 30, 2025[192] - Net cash provided by investing activities was $15.4 million for the three months ended September 30, 2025, compared to $(4.0) million in the same period of 2024[193] Investment Securities - Investment securities increased by $2.1 million, or 1.1%, to $189.8 million at September 30, 2025[164] - Total interest-earning assets amounted to $833.1 million, with a net interest margin of 2.97% for the three months ended September 30, 2025[206]