IROQ IF Bancorp Inc

IF Bancorp, Inc. (NASDAQ: IROQ) (the “Company”) the holding company for Iroquois Federal Savings and Loan Association (the “Association”), announced unaudited net income of $708,000, or $0.22 per basic and diluted share, for the three months ended March 31, 2024, compared to net income of $690,000, or $0.22 per basic share and $0.21 per diluted share, for the three months ended March 31, 2023.

“The uncertain interest rate environment continues to be a challenge for the banking industry. Our executive team and board remain focused on giving their full attention and effort to maximize the efficiencies and strategies necessary to navigate the current economic and interest rate environment successfully and responsibly. Our board recently completed a “360-review” of current bank market positions as part of our ongoing commitment to reviewing how current markets relate to our shareholders and business strategies. A review process we intend to continue,” said Walter H. “Chip” Hasselbring III, President and CEO.

For the three months ended March 31, 2024, net interest income was $4.3 million compared to $5.0 million for the three months ended March 31, 2023. We recorded a credit for credit losses of $(390,000) for the three months ended March 31, 2024, compared to a provision for credit losses of $240,000 for the three months ended March 31, 2023. For the three months ended March 31, 2024, a credit for credit losses on loans was necessary as a result of a net recovery of $168,000 and a decrease in the loan portfolio during the period. Interest income increased to $10.8 million for the three months ended March 31, 2024, from $8.2 million for the three months ended March 31, 2023. Interest expense increased to $6.5 million for the three months ended March 31, 2024, from $3.2 million for the three months ended March 31, 2023. Non-interest income increased to $1.1 million for the three months ended March 31, 2024, from $942,000 for the three months ended March 31, 2023. Non-interest expense was $4.8 million for both the three months ended March 31, 2024 and for the three months ended March 31, 2023. Provision for income tax increased to $243,000 for the three months ended March 31, 2024, from $202,000 for the three months ended March 31, 2023.

The Company announced unaudited net income of $1.4 million, or $0.42 per basic and diluted share for the nine months ended March 31, 2024, compared to $4.1 million, or $1.29 per basic share and $1.25 per diluted share for the nine months ended March 31, 2023. For the nine months ended March 31, 2024, net interest income was $13.2 million compared to $17.3 million for the nine months ended March 31, 2023. We recorded a provision for credit losses of $196,000 for the nine months ended March 31, 2024, compared to a provision for credit losses of $253,000 for the nine months ended March 31, 2023. Interest income increased to $30.3 million for the nine months ended March 31, 2024, from $23.4 million for the nine months ended March 31, 2023. Interest expense increased to $17.1 million for the nine months ended March 31, 2024 from $6.1 million for the nine months ended March 31, 2023. Non-interest income increased to $3.2 million for the nine months ended March 31, 2024, from $3.0 million for the nine months ended March 31, 2023. Non-interest expense decreased to $14.4 million for the nine months ended March 31, 2024, from $14.6 million for the nine months ended March 31, 2023. Provision for income tax decreased to $465,000 for the nine months ended March 31, 2024, from $1.4 million for the nine months ended March 31, 2023.

Total assets at March 31, 2024 were $905.0 million compared to $849.0 million at June 30, 2023. Cash and cash equivalents increased to $16.1 million at March 31, 2024, from $11.0 million at June 30, 2023. Investment securities decreased to $195.3 million at March 31, 2024, from $201.3 million at June 30, 2023. Net loans receivable increased to $643.3 million at March 31, 2024, from $587.5 million at June 30, 2023. Deposits decreased to $681.8 million at March 31, 2024, from $735.3 million at June 30, 2023. The large decrease in deposits was partially due to approximately $62.1 million in deposits from a public entity that collects real estate taxes that were on deposit at June 30, 2023 and withdrawn in the nine months ended March 31, 2024, when tax monies were distributed. Total borrowings, including repurchase agreements, FHLB advances, and borrowings from the Federal Reserve Bank Term Funding Program (BTFP), increased to $139.5 million at March 31, 2024 from $30.3 million at June 30, 2023. Stockholders’ equity increased to $72.4 million at March 31, 2024 from $71.8 million at June 30, 2023. Equity increased primarily due to net income of $1.4 million, an increase of $147,000 in accumulated other comprehensive income (loss), net of tax, and ESOP and stock equity plan activity of $435,000, partially offset by the accrual of approximately $1.3 million in dividends to our shareholders, of which about half were still payable as of March 31, 2024, and were subsequently paid on April 15, 2024.

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 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.

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." For these statements, the Company claims the protection of the safe harbor for forward-looking statements contained in the PSLRA.

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, including as a result of the COVID-19 pandemic; 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 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. 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) 

 

 

For the Three Months

Ended March 31,

 

For the Nine Months

Ended March 31,

 

2024

 

2023

 

2024

 

2023

 

(unaudited)

Interest and dividend income

$

10,803

 

 

$

8,198

 

$

30,323

 

$

23,382

Interest expense

 

6,544

 

 

 

3,162

 

 

17,093

 

 

6,051

Net interest income

 

4,259

 

 

 

5,036

 

 

13,230

 

 

17,331

Provision (credit) for credit losses

 

(390

)

 

 

240

 

 

196

 

 

253

Net interest income after provision (credit) for credit losses

 

4,649

 

 

 

4,796

 

 

13,034

 

 

17,078

Noninterest income

 

1,140

 

 

 

942

 

 

3,183

 

 

3,028

Noninterest expense

 

4,838

 

 

 

4,846

 

 

14,393

 

 

14,615

Income before taxes

 

951

 

 

 

892

 

 

1,824

 

 

5,491

Income tax expense

 

243

 

 

 

202

 

 

465

 

 

1,428

 

 

 

 

 

 

 

 

Net income

$

708

 

 

$

690

 

$

1,359

 

$

4,063

 

 

 

 

 

 

 

 

Earnings per share (1) Basic

$

0.22

 

 

$

0.22

 

$

0.42

 

$

1.29

Diluted

$

0.22

 

 

$

0.21

 

$

0.42

 

$

1.25

Weighted average shares outstanding (1)

 

 

 

 

 

 

 

Basic

 

3,211,094

 

 

 

3,182,493

 

 

3,207,354

 

 

3,152,821

Diluted

 

3,211,094

 

 

 

3,264,596

 

 

3,207,354

 

 

3,239,785

     

 

 

 

 

 

see footnotes at end of financials

       

Performance Ratios 

 

 

For the Nine Months

Ended

March 31, 2024

 

For the Year

Ended

June 30, 2023

 

(unaudited)

 

 

Return on average assets

0.21

%

 

0.56

%

Return on average equity

2.58

%

 

6.56

%

Net interest margin on average interest earning assets

2.10

%

 

2.80

%

       

Selected Balance Sheet Data (Dollars in thousands, except per share data) 

 

 

At

March 31, 2024

 

At

June 30, 2023

 

(unaudited)

 

 

Assets

$

904,989

 

 

$

848,976

 

Cash and cash equivalents

 

16,060

 

 

 

10,988

 

Investment securities

 

195,257

 

 

 

201,299

 

Net loans receivable

 

643,326

 

 

 

587,457

 

Deposits

 

681,788

 

 

 

735,314

 

Federal Home Loan Bank borrowings, repurchase agreements and other borrowings

 

139,481

 

 

 

30,287

 

Total stockholders’ equity

 

72,384

 

 

 

71,753

 

Book value per share (2)

 

21.59

 

 

 

21.39

 

Average stockholders’ equity to average total assets

 

7.97

%

 

 

8.59

%

       

Asset Quality (Dollars in thousands)  

 

 

At

March 31, 2024

 

At

June 30, 2023

 

(unaudited)

 

 

Non-performing assets (3)

$

259

 

 

$

148

 

Allowance for credit losses

 

7,725

 

 

 

7,139

 

Non-performing assets to total assets

 

0.03

%

 

 

0.02

%

Allowance for credit losses to total loans

 

1.19

%

 

 

1.20

%

(1)

Shares outstanding do not include ESOP shares not committed for release.

(2)

Total stockholders’ equity divided by shares outstanding of 3,353,026 at March, 31, 2024 and 3,354,626 at June 30, 2023.

(3)

Non-performing assets include non-accrual loans, loans past due 90 days or more and accruing, and foreclosed assets held for sale.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240430277537/en/

Walter H. Hasselbring, III (815) 432-2476