IF Bancorp(IROQ) - 2024 Q2 - Quarterly Report

Financial Performance - The Company reported a net income of $651,000 for the six months ended December 31, 2023, compared to $3.4 million for the same period in 2022[165]. - Net income decreased by $2.7 million to $651,000 for the six months ended December 31, 2023, compared to $3.4 million for the same period in 2022[184]. - Noninterest income decreased by $43,000, or 2.1%, to $2.0 million for the six months ended December 31, 2023, primarily due to a decrease in mortgage banking income[193]. - Noninterest expense decreased by $214,000, or 2.2%, to $9.6 million for the six months ended December 31, 2023, with the largest components being a decrease in compensation and benefits[194]. - Income tax expense provision was $222,000 for the six months ended December 31, 2023, compared to $1.2 million for the same period in 2022, reflecting effective tax rates of 25.4% and 26.7% respectively[195]. Asset and Loan Growth - Total assets increased by $61.8 million, or 7.3%, to $910.8 million at December 31, 2023, from $849.0 million at June 30, 2023[174]. - Net loans receivable increased by $66.1 million, or 11.3%, to $653.6 million at December 31, 2023, driven by a 43.5% increase in multi-family loans[175]. - Total interest-earning assets increased by $745 million to $4,336 million for the six months ended December 31, 2023, compared to the same period in 2022[241]. - Loans increased by $1,084 million for the three months ended December 31, 2023, compared to $1,019 million in the same period of 2022[241]. Interest Income and Expense - Net interest income decreased to $9.0 million for the six months ended December 31, 2023, down from $12.3 million for the same period in 2022[163]. - Interest and dividend income increased by $4.3 million, or 28.6%, to $19.5 million for the six months ended December 31, 2023, driven by a $4.2 million increase in interest income on loans[187]. - Interest expense increased by $7.7 million, or 265.1%, to $10.5 million for the six months ended December 31, 2023, primarily due to an increase in interest on deposits[188]. - The average balance of total interest-bearing deposits for the three months ended December 31, 2023, was $634,795 thousand, with an interest expense of $4,336 thousand and a cost of 2.73%[235]. Capital and Regulatory Compliance - The Association was categorized as "well capitalized" under regulatory capital requirements as of December 31, 2023[165]. - As of December 31, 2023, the Community Bank Leverage Ratio was 9.2%, above the minimum requirement of 9.0%[232]. - The Community Bank Leverage Ratio was opted into by the Association in 2020, currently set at 9%[230]. Deposits and Borrowings - Deposits decreased by $57.3 million, or 7.8%, to $678.0 million at December 31, 2023, primarily due to a significant withdrawal from a public entity[181]. - Borrowings from the Federal Home Loan Bank increased by $78.6 million to $98.1 million at December 31, 2023, from $19.5 million at June 30, 2023[181]. - Federal Home Loan Bank advances were $98.1 million as of December 31, 2023, with additional borrowing capacity of up to $8.5 million available[226]. Credit Quality - Non-performing loans totaled $29,000, or 0.1% of total loans, at December 31, 2023, consistent with the previous quarter[164]. - The allowance for credit losses increased by $796,000 to $7.9 million at December 31, 2023, primarily due to an increase in the loan portfolio[214]. - Provision for credit losses totaled $586,000 for the six months ended December 31, 2023, compared to $13,000 for the same period in 2022[191]. - Provision for credit losses totaled $364,000 for the three months ended December 31, 2023, compared to $101,000 for the same period in 2022, reflecting a significant increase in provisions[203]. Cash Flow - Net cash provided by operating activities was $1.1 million for the six months ended December 31, 2023, compared to $551,000 for the same period in 2022[221]. - Cash and cash equivalents totaled $8.2 million at December 31, 2023, with interest-earning time deposits amounting to $750,000[220].