IF Bancorp(IROQ) - 2026 Q2 - Quarterly Report

Financial Performance - Net interest income increased to $12.2 million for the six months ended December 31, 2025, compared to $9.8 million for the same period in 2024, representing a 24.5% increase[158] - Net income increased by $868,000, or 45.7%, to $2.7 million for the six months ended December 31, 2025, compared to $1.9 million for the same period in 2024[178] - Noninterest income decreased by $163,000, or 6.1%, to $2.5 million for the six months ended December 31, 2025, primarily due to lower net realized gains on securities[187] - Noninterest income increased by $103,000, or 8.2%, to $1.4 million for the three months ended December 31, 2025, driven by gains on loan sales and customer service fees[197] - Net interest margin increased by 66 basis points to 2.98% for the six months ended December 31, 2025, compared to 2.32% for the same period in 2024[179] - Net interest margin for Q4 2025 improved to 2.99% from 2.37% in Q4 2024, indicating better efficiency in generating income from interest-earning assets[226] Asset and Loan Management - Total assets decreased by $57.3 million, or 6.5%, to $830.4 million at December 31, 2025, from $887.7 million at June 30, 2025[169] - Net loans receivable decreased by $41.3 million, or 6.5%, to $592.3 million at December 31, 2025, primarily due to a 14.5% decrease in multi-family loans[170] - Average loans for Q4 2025 were $601,355 thousand with an interest income of $9,026 thousand, yielding 6.00%, compared to $651,697 thousand and $9,564 thousand at 5.87% in Q4 2024[225] - Total interest-earning assets for Q4 2025 were $799,334 thousand, generating interest income of $10,535 thousand, resulting in a yield of 5.27%, slightly up from $845,655 thousand and $11,010 thousand at 5.21% in Q4 2024[225] Credit Quality - Non-performing loans totaled $2.0 million, or 0.3% of total loans, at December 31, 2025, compared to $46,000, or 0.1% of total loans, at June 30, 2025[159] - The allowance for credit losses was $6.5 million, or 1.09% of total loans, at December 31, 2025, down from $7.3 million, or 1.12% of total loans, at December 31, 2024[185] - The provision for credit losses was recorded at $28,000 for the six months ended December 31, 2025, compared to a credit of $68,000 for the same period in 2024[185] - As of December 31, 2025, non-accrual loans totaled $2.0 million, with no loans delinquent for 90 days or more[201] Expenses and Liabilities - Interest expense decreased by $2.6 million, or 21.6%, to $9.5 million for the six months ended December 31, 2025, due to a reduction in interest on deposits and borrowings[182] - Noninterest expense increased by $900,000, or 9.0%, to $10.9 million for the six months ended December 31, 2025, with significant increases in professional services and compensation[187] - Noninterest expense rose by $433,000, or 8.6%, to $5.5 million for the same period, primarily due to a significant increase in professional services costs, which surged by $510,000, or 312.9%[198] Capital and Liquidity - Total equity increased by $5.5 million, or 6.8%, to $87.4 million at December 31, 2025, driven by a net income of $2.7 million[177] - The company was categorized as "well capitalized" under regulatory capital requirements at December 31, 2025[160] - The liquidity ratio averaged 25.1% of total assets for the three months ended December 31, 2025, indicating sufficient liquidity to meet obligations[210] - Cash and cash equivalents totaled $8.8 million at December 31, 2025, with interest-earning time deposits at $250,000[212] - The Community Bank Leverage Ratio was 10.9% as of December 31, 2025, exceeding the minimum requirement of 9.0%[223] - The company anticipates sufficient funds to meet current commitments, with commitments to fund loans at $2.7 million as of December 31, 2025[215]