IF Bancorp Inc (IROQ, Financial) released its earnings report for the first quarter of the fiscal year 2024 on October 30, 2023. The company reported a significant decrease in net income, which fell to $466,000 from $2.0 million in the same period last year. Earnings per share also decreased to $0.15 per basic share and $0.14 per diluted share, compared to $0.63 per basic share and $0.62 per diluted share in Q1 2023.
Income Statement Highlights
Net interest income for the quarter was $4.6 million, a decrease from $6.3 million in Q1 2023. Interest income increased to $9.3 million from $7.1 million, while interest expense rose significantly to $4.7 million from $828,000 in the same period last year. The company recorded a provision for credit losses of $222,000, compared to a credit for credit losses of $(88,000) in Q1 2023. Noninterest income decreased slightly to $1.1 million from $1.2 million, while noninterest expense remained stable at $4.8 million. Income tax expense for the quarter was $175,000, down from $740,000 in Q1 2023.
Balance Sheet Overview
IF Bancorp Inc (IROQ, Financial)'s total assets increased to $870.7 million at the end of September 2023, up from $849.0 million at the end of June 2023. Cash and cash equivalents increased to $13.6 million from $11.0 million, while investment securities decreased to $191.1 million from $201.3 million. Net loans receivable increased to $614.6 million from $587.5 million. Deposits decreased to $687.1 million from $735.3 million, largely due to the withdrawal of approximately $62.1 million in deposits from a public entity that collects real estate taxes. Total borrowings, including repurchase agreements, increased to $106.5 million from $30.3 million. Stockholders’ equity decreased to $66.6 million from $71.8 million, primarily due to a decrease of $5.1 million in accumulated other comprehensive income (loss), net of tax, and the accrual of approximately $672,000 in dividends to shareholders.
Performance Ratios and Asset Quality
The company's return on average assets for the quarter was 0.22%, down from 0.56% for the year ended June 30, 2023. The return on average equity was 2.69%, a decrease from 6.56% for the year ended June 30, 2023. The net interest margin on average interest earning assets was 2.26%, down from 2.80% for the year ended June 30, 2023. Non-performing assets remained stable at 0.02% of total assets, while the allowance for credit losses on loans to total loans remained at 1.20%.
Explore the complete 8-K earnings release (here) from IF Bancorp Inc for further details.
