IF Bancorp, Inc. (NASDAQ: IROQ) (the “Company”) the holding
company for Iroquois Federal Savings and Loan Association (the
“Association”), announced net income of $5.3 million, or $1.76 per
basic share and $1.74 per diluted share for the fiscal year ended
June 30, 2021, compared to $4.2 million, or $1.37 per basic share
and $1.35 per diluted share for the fiscal year ended June 30,
2020. The Company also announced net income of $993,000, or $0.33
per basic share and $0.32 per diluted share for the three months
ended June 30, 2021, compared to $1.4 million, or $0.45 per basic
share and diluted share for the three months ended June 30,
2020.
Net income increased $1.1 million, or 26.0%, to $5.3 million for
the year ended June 30, 2021, from $4.2 million for the year ended
June 30, 2020. As of June 30, 2021, the COVID-19 pandemic has not
had a significant negative impact on our financial condition and
results of operations. While the general element of our allowance
for loan losses increased in our prior fiscal year due to
COVID-related changes in the economic forecast, the majority of our
provisions for loan losses in the year ended June 30, 2021, were
due to loan growth, a change in loan portfolio mix, and to a lesser
extent, additional reserves for all loans that remain under
temporary COVID-19 modifications.
For the year ended June 30, 2021, net interest income was $20.2
million, compared to $18.3 million for the year ended June 30,
2020. Interest income decreased to $24.4 million for the year ended
June 30, 2021, from $27.0 million for the year ended June 30, 2020.
Interest expense decreased to $4.2 million for the year ended June
30, 2021, from $8.7 million for the year ended June 30, 2020. Our
interest income could be reduced in the future due to COVID-19. In
keeping with guidance from regulators, we are executing payment
deferrals for our lending clients that are adversely affected by
the pandemic. A total of 139 loans with current balances of $72.1
million have received COVID-19 modifications. These modifications
allowed borrowers to defer the principal component of loan payments
for up to six months, and in certain circumstances additional
modifications were allowed. As of June 30, 2021, 132 of these loans
totaling $66.1 million have returned to principal and interest
payments, leaving 7 loans for $6.0 million still under temporary
modifications.
Non-interest income increased to $6.3 million for the year ended
June 30, 2021, from $4.8 million for the year ended June 30, 2020.
Our fee income could be reduced due to the effects of COVID-19. We
are working with COVID-19 affected customers by temporarily waiving
fees when appropriate, including insufficient funds and overdraft
fees, and ATM fees. At this time, we do not anticipate that
decreases in our fee income will have a material impact on our net
income.
Non-interest expense increased to $18.2 million for the year
ended June 30, 2021, from $17.1 million for the year ended June 30,
2020. For the year ended June 30, 2021, income tax expense totaled
$2.0 million compared to $1.6 million for the year ended June 30,
2020.
Total assets at June 30, 2021 were $797.3 million compared to
$735.5 million at June 30, 2020. Cash and cash equivalents
increased to $62.7 million at June 30, 2021, from $33.5 million at
June 30, 2020. This increase was primarily due to an increase in
deposits from public entities. One public entity collects real
estate taxes in two installments, due in June and September, and
then makes distributions from the account in early July and
September. Amounts received prior to June 30, and subsequently
distributed the first week of July were $55.6 million and $45.3
million in 2021 and 2020, respectively.
Investment securities increased to $189.9 million at June 30,
2021, from $162.4 million at June 30, 2020. Net loans receivable
increased to $513.4 million at June 30, 2021, from $509.8 million
at June 30, 2020. While we closed 666 loans for a total of $44.8
million through the Paycheck Protection Program (“PPP”), after SBA
forgiveness to date, we have 364 loans totaling $20.6 million
remaining in our portfolio as of June 30, 2021. Deposits increased
to $667.6 million at June 30, 2021, from $601.7 million at June 30,
2020. Total borrowings, including repurchase agreements, decreased
to $34.2 million at June 30, 2021 from $41.2 million at June 30,
2020. Stockholders’ equity increased to $85.3 million at June 30,
2021 from $82.6 million at June 30, 2020.
The allowance for loan losses increased $365,000 to $6.6 million
at June 30, 2021, from $6.2 million at June 30, 2020. The increase
was the result of a provision for loan losses of $844,000,
partially offset by net charge-offs of $479,000.
As announced on August 11, 2021, IF Bancorp, Inc. will pay a
cash dividend of $0.175 per common share on or about October 15,
2021, to stockholders of record as of the close of business on
September 24, 2021.
IF Bancorp, Inc. is the savings and loan holding company for
Iroquois Federal Savings and Loan Association (the “Association”).
The Association, originally chartered in 1883 and headquartered in
Watseka, Illinois, conducts its operations from seven full-service
banking offices located in Watseka, Danville, Clifton, Hoopeston,
Savoy, Bourbonnais, and Champaign, Illinois and a loan production
and wealth management office in Osage Beach, Missouri. The
principal activity of the Association’s wholly-owned subsidiary,
L.C.I. Service Corporation, is the sale of property and casualty
insurance.
Cautionary Note Regarding Forward-Looking
Statements
This press release may contain statements relating to the future
results of the Company (including certain projections and business
trends) that are considered "forward-looking statements" as defined
in the Private Securities Litigation Reform Act of 1995 (the
“PSLRA”). Such forward-looking statements may be identified by the
use of such words as "believe," "expect," "anticipate," "should,"
"planned," "estimated," "intend" and "potential." These
forward-looking statements include, but are not limited to:
- statements of our goals, intentions and expectations;
- statements regarding our business plans, prospects, growth and
operating strategies;
- statements regarding the asset quality of our loan and
investment portfolios; and
- estimates of our risks and future costs and benefits.
The Company cautions you that a number of important factors
could cause actual results to differ materially from those
currently anticipated in any forward-looking statement. Such
factors include, but are not limited to: prevailing economic and
geopolitical conditions; changes in interest rates, loan demand,
real estate values and competition; changes in accounting
principles, policies, and guidelines; changes in any applicable
law, rule, regulation or practice with respect to tax or legal
issues; and other economic, competitive, governmental, regulatory
and technological factors affecting the Company's operations,
pricing, products and services and other factors (“Risk Factors”)
that may be described in the Company’s annual report on Form 10-K
and quarterly reports on Form 10-Q as filed with the Securities and
Exchange Commission.
Given the ongoing and dynamic nature of the circumstances, it is
difficult to predict the full impact of the COVID-19 outbreak on
our business. The extent of such impact will depend on future
developments, which are highly uncertain, including when the
coronavirus can be controlled and abated and when and how the
economy may be reopened. As the result of the COVID-19 pandemic and
the related adverse local and national economic consequences, we
could be subject to any of the following risks, any of which could
have a material, adverse effect on our business, financial
condition, liquidity, and results of operations:
- demand for our products and services may be negatively impacted
as a result of the COVID-19 pandemic;
- the COVID-19 pandemic may continue to have a negative impact on
the economy and overall financial stability of us, the communities
where we have our branches, the state of Illinois and the United
States, and may also exacerbate the effects of the other Risk
Factors;
- if the economy is unable to fully reopen, and increased levels
of unemployment continue for an extended period of time, loan
delinquencies, problem assets, and foreclosures may increase;
- limitations may be placed on our ability to foreclose on
properties during the pandemic;
- we have continued to accrue interest and fees on loans to
customers that have been negatively impacted by COVID-19 and who
have been permitted to defer payments in accordance with regulatory
guidance. Should eventual credit losses on these loans with
deferred payments emerge, interest income and fees accrued would
need to be reversed;
- litigation, regulatory enforcement risk and reputation risk
regarding our participation in the PPP and the risk that the SBA
may not fund some or all PPP loan guaranties;
- collateral for loans, especially real estate, may decline in
value;
- our allowance for loan losses may have to be increased if
borrowers experience financial difficulties;
- the net worth and liquidity of loan guarantors may
decline;
- as the result of the decline in the Federal Reserve Board’s
target federal funds rate to near 0%, the yield on our assets may
decline to a greater extent than the decline in our cost of
interest-bearing liabilities;
- a material decrease in net income or a net loss over several
quarters could result in a decrease in the rate of our semi-annual
cash dividend;
- actions taken by the federal, state or local governments to
cushion the impact of COVID-19 on consumers and businesses may have
a negative impact on us and our business;
- changes in accounting policies and practices, as may be adopted
by the bank regulatory agencies, the Financial Accounting Standards
Board, the Securities and Exchange Commission and the Public
Company Accounting Oversight Board;
- our wealth management revenues may decline with continuing
market turmoil;
- the unanticipated loss or unavailability of key employees due
to the outbreak, which could harm our ability to operate our
business or execute our business strategy, especially as we may not
be successful in finding and integrating suitable successors;
- we rely on third party vendors for certain services and the
unavailability of a critical service due to the COVID-19 outbreak
could have an adverse effect on us;
- our cyber security risks are increased by the COVID-19 pandemic
as the result of an increase in the number of employees working
remotely; and
- FDIC premiums may increase if the agency experience additional
resolution costs.
The forward-looking statements are made as of the date of this
release, and, except as may be required by applicable law or
regulation, the Company assumes no obligation to update the
forward-looking statements or to update the reasons why actual
results could differ from those projected in the forward-looking
statements.
Selected Income Statement Data
(Dollars in thousands, except per share
data)
Quarter Ended June 30,
2021
Quarter Ended June 30,
2020
Year Ended June 30,
2021
Year Ended June 30,
2020
(unaudited)
(unaudited)
(unaudited)
Interest income
$
5,928
$
6,386
$
24,357
$
26,982
Interest expense
711
1,615
4,178
8,694
Net interest income
5,217
4,771
20,179
18,288
Provision for loan losses
679
(70
)
844
128
Net interest income after provision for
loan losses
4,538
4,841
19,335
18,160
Non-interest income
1,397
1,349
6,258
4,810
Non-interest expense
4,591
4,283
18,212
17,086
Income before taxes
1,344
1,907
7,381
5,884
Income tax expense
351
536
2,034
1,639
Net income
$
993
$
1,371
$
5,347
$
4,245
Earnings per share (1):
Basic
$
0.33
$
0.45
$
1.76
$
1.37
Diluted
$
0.32
$
0.45
$
1.74
$
1.35
Weighted average shares outstanding
(1):
Basic
3,045,520
3,026,275
3,038,303
3,103,339
Diluted
3,103,955
3,036,033
3,078,867
3,148,032
Performance Ratios
Year Ended June 30,
2021
Year Ended June 30,
2020
(unaudited)
Return on average assets
0.72
%
0.61
%
Return on average equity
6.34
%
5.30
%
Net interest margin on average interest
earning assets
2.86
%
2.75
%
________________________
Footnotes on following page
Selected Balance Sheet Data
(Dollars in thousands, except per share
data)
Year Ended June 30,
2021
Year Ended June 30,
2020
(unaudited)
Assets
$
797,341
$
735,517
Cash and cash equivalents
62,735
33,467
Investment securities
189,891
162,394
Net loans receivable
513,371
509,817
Deposits
667,632
601,700
Total borrowings, including repurchase
agreements
34,245
41,238
Total stockholders’ equity
85,304
82,564
Book value per share (2)
26.33
25.48
Average stockholders’ equity to average
total assets
11.40
%
11.55
%
Asset Quality
(Dollars in thousands)
Year Ended June 30,
2021
Year Ended June 30,
2020
(unaudited)
Non-performing assets (3)
$
411
$
1,095
Allowance for loan losses
6,599
6,234
Non-performing assets to total assets
0.05
%
0.15
%
Allowance for losses to total loans
1.27
%
1.21
%
Allowance for losses to total loans
excluding PPP loans (4)
1.32
%
1.27
%
(1)
Shares outstanding do not include ESOP
shares not committed for release.
(2)
Total stockholders’ equity divided by
shares outstanding of 3,240,376 at both June 30, 2021 and 2020,
respectively.
(3)
Non-performing assets include non-accrual
loans, loans past due 90 days or more and accruing, and foreclosed
assets held for sale.
(4)
Paycheck Protection Program (PPP) loans
are administered by the SBA and are fully guaranteed by the U.S.
government.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210831005766/en/
Walter H. Hasselbring, III (815) 432-2476
IF Bancorp (NASDAQ:IROQ)
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