Form 8-K - Current report

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(D) OF

THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): August 31, 2023

IF BANCORP, INC.

(Exact Name of Registrant as Specified in Charter)

Maryland		001-35226		45-1834449
(State or Other Jurisdiction of Incorporation)		(Commission File No.)		(I.R.S. Employer Identification No.)

201 East Cherry Street, Watseka, Illinois		60970
(Address of Principal Executive Offices)		(Zip Code)

Registrant's telephone number, including area code: [phone]

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, par value $0.01 per share		IROQ		The NASDAQ Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 Emerging growth company ☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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Item 2.02 Results of Operations and Financial Condition

On August 31, 2023, IF Bancorp, Inc., the holding company for Iroquois Federal Savings and Loan Association, issued a press release announcing its financial results for the quarter and year ended June 30, 2023.  A copy of the press release is included as Exhibit 99.1 to this report.

Item 9.01 Financial Statements and Exhibits

(d)	Exhibits
	Exhibit No.	Description
	99.1	Press release dated August 31, 2023
	104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

		IF BANCORP, INC.
DATE: August 31, 2023	By:	/s/ Pamela J. Verkler
		Pamela J. Verkler
		Senior Executive Vice President and Chief Financial Officer

EXHIBIT 99.1

Contact:   Walter H. Hasselbring, III

[phone]

IF BANCORP, INC. ANNOUNCES RESULTS FOR FOURTH QUARTER AND FISCAL YEAR ENDED JUNE 30, 2023

Watseka, Illinois, August 31, 2023 - IF Bancorp, Inc. (NASDAQ: IROQ) (the “Company”) the holding company for Iroquois Federal Savings and Loan Association (the “Association”), announced net income of $4.7 million, or $1.50 per basic share and $1.46 per diluted share for the fiscal year ended June 30, 2023, compared to $5.8 million, or $1.88 per basic share and $1.84 per diluted share for the fiscal year ended June 30, 2022.  The Company also announced net income of $597,000, or $0.19 per basic share and $0.18 per diluted share for the three months ended June 30, 2023, compared to $1.0 million, or $0.34 per basic share and $0.33 per diluted share for the three months ended June 30, 2022.

Net income decreased $1.1 million, or 19.4%, to $4.7 million for the year ended June 30, 2023, from $5.8 million for the year ended June 30, 2022.  For the year ended June 30, 2023, net interest income was $22.0 million, compared to $22.3 million for the year ended June 30, 2022.  Interest income increased to $32.1 million for the year ended June 30, 2023, from $24.8 million for the year ended June 30, 2022.  Interest expense increased to $10.1 million for the year ended June 30, 2023, from $2.5 million for the year ended June 30, 2022.  Non-interest income decreased to $4.1 million for the year ended June 30, 2023, from $5.5 million for the year ended June 30, 2022.  Non-interest expense increased to $20.0 million for the year ended June 30, 2023, from $19.4 million for the year ended June 30, 2022.  For the year ended June 30, 2023, income tax expense totaled $1.6 million compared to $2.0 million for the year ended June 30, 2022.

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 June 30, 2023 were $849.0 million compared to $857.6 million at June 30, 2022.  Cash and cash equivalents decreased to $11.0 million at June 30, 2023, from $75.8 million at June 30, 2022.  Investment securities decreased to $201.3 million at June 30, 2023, from $220.9 million at June 30, 2022.  Net loans receivable increased to $587.5 million at June 30, 2023, from $518.9 million at June 30, 2022.  Deposits decreased to $735.3 million at June 30, 2023, from $752.0 million at June 30, 2022.  Total borrowings, including repurchase agreements, increased to $30.3 million at June 30, 2023 from $24.2 million at June 30, 2022.   Stockholders’ equity increased to $71.8 million at June 30, 2023 from $71.7 million at June 30, 2022.  Equity increased primarily due to net income of $4.7 million, and ESOP and stock equity plan activity of $1.4 million, partially offset by a decrease of $4.3 million in accumulated other comprehensive income (loss), net of tax, and the accrual of approximately $1.3 million 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.

The allowance for credit losses on loans increased $87,000 and was $7.1 million at both June 30, 2023 and 2022.  The increase was the result of a transition adjustment of $47,000 due to the adoption of ASU 2016-13 and a provision for credit losses of $52,000, partially offset by net charge-offs of $12,000.

As announced on August 9, 2023, IF Bancorp, Inc. will pay a cash dividend of $0.20 per common share on or about October 13, 2023, to stockholders of record as of the close of business on September 22, 2023.

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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.

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Selected Income Statement Data

(Dollars in thousands, except per share data)

	Quarter Ended June 30, 2023	Quarter Ended June 30, 2022			Year Ended June 30, 2023		Year Ended June 30, 2022
	(unaudited)		(unaudited)		(unaudited)
Interest income	$  8,690		$  6,232		$  32,072		$  24,792
Interest expense	4,024		612		10,075		2,529
Net interest income	4,666		5,620		21,997		22,263
Provision (credit) for credit losses	(481)		453		(228)		492
Net interest income after provision (credit) for credit losses	5,147		5,167		22,225		21,771
Noninterest income	1,041		1,065		4,069		5,504
Noninterest expense	5,419		4,848		20,034		19,448
Income before taxes	769		1,384		6,260		7,827
Income tax expense	172		349		1,600		2,043
Net income	$  597		$  1,035		$  4,660		$  5,784
Earnings per share (1):
Basic	$               0.18		$               0.34		$               1.50		$               1.88
Diluted	$               0.19		$               0.33		$               1.46		$               1.84
Weighted average shares outstanding (1):
Basic	3,198,260		3,082,015		3,113,307		3,069,879
Diluted	3,259,085		3,141,056		3,195,029		3,136,091

Performance Ratios

	Year Ended June 30, 2023	Year Ended June 30, 2022
	(unaudited)
Return on average assets	0.56%	0.74%
Return on average equity	6.56%	7.07%
Net interest margin on average interest earning assets	2.80%	2.93%

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Footnotes on following page

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Selected Balance Sheet Data

(Dollars in thousands, except per share data)

			Year Ended June 30, 2023		Year Ended June 30, 2022
			(unaudited)
	Assets		$  848,976		$  857,558
	Cash and cash equivalents		10,988		75,811
	Investment securities		201,299		220,906
	Net loans receivable		587,457		518,931
	Deposits		735,314		752,020
	Total borrowings, including repurchase agreements		30,287		24,244
	Total stockholders’ equity		71,753		71,658
	Book value per share (2)		21.39		22.00
	Average stockholders’ equity to average total assets		8.59%		10.46%

Asset Quality

(Dollars in thousands)

			Year Ended June 30, 2023		Year Ended June 30, 2022
			(unaudited)
	Non-performing assets (3)		$  148		$  1,294
	Allowance for credit losses		7,139		7,052
	Non-performing assets to total assets		0.02%		0.15%
	Allowance for credit losses to total loans		1.20%		1.34%

(1)	Shares outstanding do not include ESOP shares not committed for release.

(2)	Total stockholders’ equity divided by shares outstanding of 3,354,626 and 3,257,626 at June 30, 2023 and 2022, respectively.

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

Document and Entity Information	Aug. 31, 2023
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Aug. 31, 2023
Entity File Number	001-35226
Entity Registrant Name	IF BANCORP, INC.
Entity Central Index Key	0001514743
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	45-1834449
Entity Address, Address Line One	201 East Cherry Street
Entity Address, City or Town	Watseka
Entity Address, State or Province	IL
Entity Address, Postal Zip Code	60970
City Area Code	815
Local Phone Number	432-2476
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	IROQ
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false

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