IF Bancorp, Inc. Announces Results for First Quarter of Fiscal Year 2023 (Unaudited)

Rhea-AI Summary

IF Bancorp, Inc. (NASDAQ: IROQ) reported unaudited net income of $2.0 million for Q3 2022, a slight increase from $1.9 million in Q3 2021. Basic earnings per share were $0.63, up from $0.62 year-over-year. Net interest income rose to $6.3 million from $5.6 million. However, noninterest income fell to $1.2 million from $1.5 million, and noninterest expenses increased to $4.8 million. Total assets decreased to $806.9 million from $857.6 million, with a significant decline in cash and cash equivalents. Stockholders’ equity also dropped to $67.5 million.

Positive

• Net income increased to $2.0 million in Q3 2022 from $1.9 million in Q3 2021.
• Basic earnings per share rose to $0.63 in Q3 2022, up from $0.62 year-over-year.
• Net interest income improved to $6.3 million, increasing from $5.6 million.

Negative

• Noninterest income decreased to $1.2 million from $1.5 million.
• Total assets declined to $806.9 million, down from $857.6 million.
• Cash and cash equivalents fell sharply to $11.4 million from $75.8 million.
• Deposits decreased to $657.4 million from $752.0 million.

WATSEKA, Ill.--(BUSINESS WIRE)-- IF Bancorp, Inc. (NASDAQ: IROQ) (the “Company”) the holding company for Iroquois Federal Savings and Loan Association (the “Association”), announced unaudited net income of $2.0 million, or $0.63 per basic share and $0.62 per diluted share for the three months ended September 30, 2022, compared to $1.9 million, or $0.62 per basic share and $0.61 per diluted share, for the three months ended September 30, 2021.

For the three months ended September 30, 2022, net interest income was $6.3 million compared to $5.6 million for the three months ended September 30, 2021. Interest income increased to $7.1 million for the three months ended September 30, 2022, from $6.3 million for the three months ended September 30, 2021. Interest expense increased to $828,000 for the three months ended September 30, 2022, from $679,000 for the three months ended September 30, 2021. We recorded a credit for credit losses of $(88,000) in the three months ended September 30, 2022, compared to a credit for credit losses of $(127,000) in the three months ended September 30, 2021. Noninterest income decreased to $1.2 million for the three months ended September 30, 2022, from $1.5 million for the three months ended September 30, 2021. Noninterest expense increased to $4.8 million for the three months ended September 30, 2022, from $4.7 million for the three months ended September 30, 2021. For the three months ended September 30, 2022, income tax expense totaled $740,000 compared to $663,000 for the three months ended September 30, 2021.

Effective July 1, 2022, the Company early adopted Accounting Standards Update 2016-13 which requires an entity to use the new impairment model known as the current expected credit loss (“CECL”) to calculate the allowance for credit losses. The Company recorded a reduction to retained earnings of approximately $388,000 upon the adoption of ASU 2016-13. The transition adjustment included an increase in the allowance for credit losses on loans of $47,000 and an increase to the allowance for credit losses on off-balance sheet credit exposures of $496,000. The transition adjustment included a corresponding increase in deferred tax assets.

Total assets at September 30, 2022 were $806.9 million compared to $857.6 million at June 30, 2022. Cash and cash equivalents decreased to $11.4 million at September 30, 2022, from $75.8 million at June 30, 2022. Investment securities decreased to $206.6 million at September 30, 2022, from $220.9 million at June 30, 2022. Net loans receivable increased to $544.1 million at September 30, 2022, from $518.9 million at June 30, 2022. Deposits decreased to $657.4 million at September 30, 2022, from $752.0 million at June 30, 2022. The large decrease in deposits and cash and cash equivalents was due to approximately $57.6 million in deposits from a public entity that collects real estate taxes that were on deposit at June 30, 2022 and withdrawn in the three months ended September 30, 2022, when tax monies were distributed. Total borrowings, including repurchase agreements, increased to $72.7 million at September 30, 2022 from $24.2 million at June 30, 2022. Stockholders’ equity decreased to $67.5 million at September 30, 2022 from $71.7 million at June 30, 2022. Equity decreased primarily due to a decrease of $5.7 million in accumulated other comprehensive income (loss), net of tax, and the accrual of approximately $667,000 in dividends to our shareholders. The decrease in accumulated other comprehensive income (loss) was primarily due to unrealized depreciation on available-for-sale securities, net of tax, as a result of a decline in market value that was attributable to changes in interest rates and not credit quality. These decreases were partially offset by net income of $2.0 million, and ESOP and stock equity plan activity of $596,000.

IF Bancorp, Inc. is the savings and loan holding company for Iroquois Federal Savings and Loan 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, Champaign and Bourbonnais, 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.

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 forward-looking statements.

Selected Income Statement Data
(Dollars in thousands, except per share data)
	For the Three Months Ended September 30,
		2022				2021
	(unaudited)
Interest income	$	7,078			$	6,251
Interest expense		828				679
Net interest income		6,250				5,572
Provision (credit) for credit losses		(88	)			(127	)
Net interest income after provision (credit) for credit losses		6,338				5,699
Noninterest income		1,218				1,545
Noninterest expense		4,847				4,690
Income before taxes		2,709				2,554
Income tax expense		740				663
Net income	$	1,969			$	1,891
Earnings per share (1)
Basic	$	0.63			$	0.62
Diluted		0.62				0.61
Weighted average shares outstanding (1)
Basic		3,105,077				3,050,620
Diluted		3,181,412				3,114,615

footnotes on following page

 

Performance Ratios
	For the Three Months Ended September 30, 2022			For the Year Ended June 30, 2022
	(unaudited)
Return on average assets	0.98	%		0.74	%
Return on average equity	10.94	%		7.07	%
Net interest margin on average interest earning assets	3.26	%		2.93	%

Selected Balance Sheet Data
(Dollars in thousands, except per share data)
	At September 30, 2022				At June 30, 2022
	(unaudited)
Assets	$	806,868			$	857,558
Cash and cash equivalents		11,386				75,811
Investment securities		206,619				220,906
Net loans receivable		544,107				518,931
Deposits		657,405				752,020
Federal Home Loan Bank borrowings, repurchase agreements and other borrowings		72,720				24,244
Total stockholders’ equity		67,479				71,658
Book value per share (2)		20.22				22.00
Average stockholders’ equity to average total assets		8.93	%			10.46	%

Asset Quality
(Dollars in thousands)
	At September 30, 2022				At June 30, 2022
	(unaudited)
Non-performing assets (3)	$	1,188			$	1,294
Allowance for loan losses		7,023				7,052
Non-performing assets to total assets		0.15	%			0.15	%
Allowance for credit losses on loans to total loans		1.27	%			1.34	%

(1)		Shares outstanding do not include ESOP shares not committed for release.
(2)		Total stockholders’ equity divided by shares outstanding of 3,337,626 at September 30, 2022, and 3,257,626 at June 30, 2022.
(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/20221103006226/en/

Walter H. Hasselbring, III

(815) 432-2476

Source: IF Bancorp, Inc.

FAQ

What were IF Bancorp's financial results for Q3 2022?

IF Bancorp reported a net income of $2.0 million for Q3 2022, with basic earnings per share at $0.63.

How did net interest income change for IF Bancorp in Q3 2022?

Net interest income increased to $6.3 million in Q3 2022 from $5.6 million in Q3 2021.

What was the trend in noninterest income for IF Bancorp in Q3 2022?

Noninterest income decreased to $1.2 million in Q3 2022, down from $1.5 million in the same quarter last year.

What was the status of total assets for IF Bancorp as of September 30, 2022?

Total assets for IF Bancorp decreased to $806.9 million as of September 30, 2022.

How much did stockholders' equity change for IF Bancorp in Q3 2022?

Stockholders' equity fell to $67.5 million in Q3 2022, down from $71.7 million.