IF Bancorp(IROQ) - 2024 Q1 - Quarterly Report

Financial Performance - Net interest income decreased to $4.6 million for the three months ended September 30, 2023, down from $6.3 million for the same period in 2022[157]. - Net income for the three months ended September 30, 2023, was $466,000, compared to $2.0 million for the same period in 2022, reflecting a decrease due to lower net interest income and increased provision for credit losses[159]. - Net income for the three months ended September 30, 2023, decreased by $1.5 million to $466,000, compared to $2.0 million for the same period in 2022[177]. - Noninterest income decreased by $90,000, or 7.4%, to $1.1 million for the three months ended September 30, 2023, from $1.2 million for the same period in 2022[186]. - Noninterest expense remained unchanged at $4.8 million for both the three months ended September 30, 2023, and September 30, 2022[187]. Asset and Liability Management - Total assets increased by $21.7 million, or 2.6%, to $870.7 million at September 30, 2023, primarily due to a $27.1 million increase in net loans[168]. - Total liabilities were $783.3 million as of September 30, 2023, compared to $733.9 million as of June 30, 2023[214]. - Total interest-earning assets amounted to $811.6 million for the three months ended September 30, 2023, with a net interest income of $4.6 million[214]. - Total interest-earning assets increased by $2,213 million, with loans contributing $2,133 million to this increase[217]. - Total interest-bearing liabilities rose to $3,880 million, with certificates of deposit accounting for $2,081 million of the total[217]. Loan and Deposit Activity - Net loans receivable increased by $27.1 million, or 4.6%, to $614.6 million at September 30, 2023, driven by a 42.8% increase in construction loans[169]. - Deposits decreased by $48.2 million, or 6.6%, to $687.1 million at September 30, 2023, with a significant drop in noninterest bearing demand accounts[174]. - Interest-bearing checking or NOW accounts saw a decrease of $6 million, while savings accounts increased by $61 million[217]. - Commitments to fund loans increased to $15.5 million as of September 30, 2023, from $5.1 million as of June 30, 2023[204]. Interest Income and Expense - Interest income increased by $2.2 million, or 31.3%, to $9.3 million for the three months ended September 30, 2023, from $7.1 million for the same period in 2022[180]. - Interest expense increased by $3.9 million, or 468.6%, to $4.7 million for the three months ended September 30, 2023, from $828,000 for the same period in 2022[181]. - The net interest margin decreased to 2.26% for the three months ended September 30, 2023, down from 3.26% in the same period of 2022[214]. Credit Quality - The allowance for credit losses on off-balance sheet credit exposures decreased to $129,000 at September 30, 2023, from $216,000 at June 30, 2023[175]. - Non-performing loans totaled $136,000, or 0.1% of total loans, at September 30, 2023, consistent with the previous quarter[158]. - The allowance for credit losses increased by $311,000 to $7.5 million at September 30, 2023, from $7.1 million at June 30, 2023[196]. - At September 30, 2023, total non-performing loans to total loans was 0.02%[186]. - Provision for credit losses recorded was $222,000 for the three months ended September 30, 2023, compared to a credit for credit losses of $(88,000) for the same period in 2022[184]. Capital and Liquidity - The Association was categorized as "well capitalized" under federal regulations as of September 30, 2023[159]. - The Community Bank Leverage Ratio was 9.5% as of September 30, 2023, meeting the minimum requirement of 9.0%[212]. - As of September 30, 2023, the liquidity ratio averaged 27.2% of total assets, compared to 29.3% for the year ended June 30, 2023[199]. - Cash and cash equivalents totaled $13.6 million, with interest-earning time deposits at $1.3 million as of September 30, 2023[201]. - The company anticipates sufficient funds to meet current commitments through liquid assets and borrowing capacity[203]. Risk Management - The company performed an internal interest rate risk analysis, with no material changes in interest rate risk as of September 30, 2023[218]. - The analysis of Earnings at Risk and Value at Risk was conducted at least quarterly, ensuring ongoing risk assessment[218].