IF Bancorp(IROQ) - 2023 Q2 - Quarterly Report

Financial Performance - Net income for the six months ended December 31, 2022, was $3.4 million, compared to $3.6 million for the same period in 2021[166]. - Net income decreased by $300,000 to $1.4 million for the three months ended December 31, 2022, compared to $1.7 million for the same period in 2021[206]. - Noninterest income decreased by $899,000, or 30.1%, to $2.1 million for the six months ended December 31, 2022 from $3.0 million for the same period in 2021[202]. - Noninterest income decreased by $572,000, or 39.7%, to $868,000 for the three months ended December 31, 2022, primarily due to a decrease in gain on sale of loans[214]. - Noninterest expense increased by $217,000, or 2.3%, to $9.8 million for the six months ended December 31, 2022 from $9.6 million for the same period in 2021[204]. - Noninterest expense increased by $60,000, or 1.2%, to $4.9 million for the three months ended December 31, 2022, with equipment and advertising expenses being the largest contributors[215]. Asset and Liability Management - Total assets decreased by $33.8 million, or 3.9%, to $823.7 million at December 31, 2022, from $857.6 million at June 30, 2022[185]. - Total assets as of December 31, 2022, were $816.50 million, an increase from $773.80 million as of December 31, 2021[245]. - Net loans receivable increased by $42.3 million, or 8.2%, to $561.3 million at December 31, 2022 from $518.9 million at June 30, 2022[186]. - Investment securities decreased by $12.8 million, or 5.8%, to $208.1 million at December 31, 2022 from $220.9 million at June 30, 2022[187]. - Deposits decreased by $84.7 million, or 11.3%, to $667.3 million at December 31, 2022 from $752.0 million at June 30, 2022[190]. - The total interest-bearing liabilities increased to $689.40 million for the three months ended December 31, 2022, compared to $628.94 million in 2021[245]. Income and Expense Analysis - Net interest income increased to $12.3 million for the six months ended December 31, 2022, compared to $11.3 million for the same period in 2021[164]. - Net interest income for the three months ended December 31, 2022, was $6.045 million, up from $5.679 million in 2021[245]. - Interest and dividend income increased by $2.6 million, or 20.9%, to $15.2 million for the six months ended December 31, 2022 from $12.6 million for the same period in 2021[196]. - Interest and dividend income rose by $1.8 million, or 28.5%, to $8.1 million for the three months ended December 31, 2022, primarily due to a $1.5 million increase in interest income on loans[208]. - Interest expense surged by $1.4 million, or 228.7%, to $2.1 million for the three months ended December 31, 2022, due to an 80 basis point increase in the average cost of interest-bearing liabilities[209]. Credit Quality and Risk Management - Non-performing loans totaled $251,000, or 0.1% of total loans, at December 31, 2022, down from $1.2 million, or 0.2%, at June 30, 2022[165]. - The total non-performing loans to total loans ratio was 0.04% at December 31, 2022, down from 0.22% at June 30, 2022[202]. - The allowance for credit losses was $7.2 million, or 1.26% of total loans, at December 31, 2022[201]. - The provision for credit losses totaled $101,000 for the three months ended December 31, 2022, compared to a credit for credit losses of $(76,000) for the same period in 2021[213]. - The allowance for credit losses increased by $114,000 to $7.2 million at December 31, 2022, reflecting an increase in the loan portfolio[223]. - The Company continues to monitor market risks and assess its earnings at risk and value at risk on a quarterly basis[252]. Capital and Liquidity - As of December 31, 2022, the Association was categorized as "well capitalized" under regulatory capital requirements[166]. - The Community Bank Leverage Ratio was 9.9% as of December 31, 2022, slightly up from 9.8% in June 2022, exceeding the minimum requirement of 9.0%[242]. - The liquidity ratio averaged 30.2% of total assets for the three months ended December 31, 2022, indicating sufficient liquidity to meet financial obligations[227]. - The Company maintains access to multiple sources of liquidity, although elevated funding costs could adversely affect the net interest margin[171]. Shareholder Activity - The Company repurchased 1,674,479 shares of common stock under stock repurchase plans as of December 31, 2022[159].