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IF Bancorp, Inc. announced unaudited net income of $708,000 for Q3 FY 2024, with net interest income at $4.3 million. The Company reported a decrease in net income and interest income compared to the same period in 2023. However, interest expense and non-interest income increased. Total assets, loans receivable, and stockholders' equity saw an increase, while deposits decreased. The Company remains focused on navigating the challenging interest rate environment.
IF Bancorp, Inc. ha annunciato un reddito netto non revisionato di $708.000 per il terzo trimestre dell'anno fiscale 2024, con un reddito netto da interessi di $4,3 milioni. La società ha registrato una diminuzione del reddito netto e del reddito da interessi rispetto allo stesso periodo del 2023. Tuttavia, le spese per interessi e i redditi non derivanti da interessi sono aumentati. Gli attivi totali, i prestiti ricevibili e il patrimonio netto degli azionisti hanno mostrato un incremento, mentre i depositi sono diminuiti. La società rimane concentrata nel gestire l'ambiente difficile dei tassi di interesse.
IF Bancorp, Inc. anunció un ingreso neto no auditado de $708.000 para el tercer trimestre del año fiscal 2024, con un ingreso neto por intereses de $4,3 millones. La compañía informó una disminución en el ingreso neto e ingresos por intereses en comparación con el mismo periodo de 2023. Sin embargo, los gastos por intereses y los ingresos por actividades no financieras aumentaron. Los activos totales, los préstamos por cobrar y el patrimonio de los accionistas han visto un aumento, mientras que los depósitos disminuyeron. La compañía sigue enfocada en navegar el desafiante entorno de tasas de interés.
IF Bancorp, Inc.는 2024년 회계연도 3분기에 708,000달러의 미감사 순수익과 4.3백만 달러의 순이자 수입을 발표했습니다. 회사는 2023년 같은 기간에 비해 순수익과 이자 수입이 감소했습니다. 그러나 이자 비용과 비이자 수입은 증가했습니다. 총 자산, 대출 수취권 및 주주 자본금은 증가했으며, 예금은 감소했습니다. 회사는 여전히 어려운 이자율 환경을 헤쳐나가는 데 집중하고 있습니다.
IF Bancorp, Inc. a annoncé un bénéfice net non audité de 708 000 dollars pour le troisième trimestre de l'exercice fiscal 2024, avec un revenu net d'intérêts de 4,3 millions de dollars. La société a rapporté une baisse du bénéfice net et des revenus d'intérêts comparés à la même période en 2023. Cependant, les dépenses d'intérêts et les revenus non issus des intérêts ont augmenté. Les actifs totaux, les créances sur prêts et les fonds propres des actionnaires ont augmenté, tandis que les dépôts ont diminué. La société reste concentrée sur la navigation dans l'environnement difficile des taux d'intérêt.
IF Bancorp, Inc. hat einen unauditierten Nettogewinn von 708.000 Dollar für das dritte Quartal des Geschäftsjahres 2024 bekanntgegeben, mit einem Nettozinsertrag von 4,3 Millionen Dollar. Das Unternehmen verzeichnete einen Rückgang des Nettogewinns und des Zinsertrags im Vergleich zum gleichen Zeitraum 2023. Die Zinskosten und das Nichtzinsnseinkommen stiegen jedoch. Die Gesamtaktiva, die Forderungen aus Darlehen und das Eigenkapital der Aktionäre nahmen zu, während die Einlagen abnahmen. Das Unternehmen bleibt darauf konzentriert, die herausfordernde Zinsumgebung zu navigieren.
Positive
Net income for Q3 FY 2024 was $708,000.
Net interest income was $4.3 million for Q3 FY 2024.
Total assets increased to $905.0 million at the end of March 31, 2024.
Net loans receivable increased to $643.3 million at the end of March 31, 2024.
Negative
Net income decreased compared to the same period in 2023.
Net interest income decreased from $5.0 million in Q3 FY 2023 to $4.3 million in Q3 FY 2024.
Deposits decreased to $681.8 million at the end of March 31, 2024.
Insights
IF Bancorp's recent earnings report indicates a mixed financial performance. Net income for the quarter remained relatively stable year-over-year, suggesting operational consistency, but a closer look reveals challenges. Net interest income, a key revenue source for banks, dropped significantly from $5.0 million to $4.3 million. This decline is concerning given that it directly impacts profitability. The bank's interest expense almost doubled, indicating rising rates are increasing the cost of borrowing, which narrows the net interest margin. For retail investors, these dynamics imply a tougher interest rate environment that could pressure the bank's margins going forward. On a positive note, the bank recorded a credit for credit losses, showing improved credit quality or recovery of previous charge-offs, which can be a good sign of asset quality. However, a substantial decrease in deposits, particularly from a public entity, could indicate liquidity concerns that need to be monitored. The rising interest expense and lower net interest income are red flags that require vigilant investor scrutiny.
The banking sector is heavily influenced by interest rates and IF Bancorp's report showcases the impact of the current economic climate. The bank's dip in net interest income and the spike in interest expense are reflective of broader market trends where financial institutions are grappling with rate hikes. This scenario could make it challenging for IF Bancorp to sustain its profit margins if the trend continues. For investors, it's important to understand that bank stocks are interest-rate sensitive and their performance is linked to the Federal Reserve's monetary policy. Investors should also consider the bank's activities, like the '360-review', which demonstrates a proactive approach to strategy and market positioning. Understanding the bank's strategic moves can provide insights into its resilience and adaptability in a shifting economic landscape. Moreover, IF Bancorp's geographical focus and subsidiary activities, such as insurance sales, add diversification to its revenue, potentially offsetting some of the interest rate risks.
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 $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.
