Press Release

IF Bancorp, Inc. Announces Results for Second Quarter of Fiscal Year 2020

Company Release - 1/30/2020 4:15 PM ET

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 $964,000, or $0.32 per basic share and $0.31 per diluted share, for the three months ended December 31, 2019, compared to net income of $787,000, or $0.22 per basic and diluted share, for the three months ended December 31, 2018.

For the three months ended December 31, 2019, net interest income was $4.3 million compared to $4.5 million for the three months ended December 31, 2018. We recorded a reduction to the provision for loan losses of $(30,000) for the three months ended December 31, 2019, compared to a provision for loan losses of $138,000 for the three months ended December 31, 2018. Interest and dividend income increased to $6.8 million for the three months ended December 31, 2019, from $6.7 million for the three months ended December 31, 2018. Interest expense increased to $2.4 million for the three months ended December 31, 2019, from $2.2 million for the three months ended December 31, 2018. Non-interest income increased to $1.2 million for the three months ended December 31, 2019, from $1.0 million for the three months ended December 31, 2018. Non-interest expense was $4.3 million for both the three months ended December 31, 2019, and the three months ended December 31, 2018. Provision for income tax increased to $372,000 for the three months ended December 31, 2019, from $279,000 for the three months ended December 31, 2018.

The Company announced unaudited net income of $2.1 million, or $0.65 per basic share and $0.64 per diluted share for the six months ended December 31, 2019, compared to $1.7 million, or $0.48 per basic share and $0.47 per diluted share for the six months ended December 31, 2018. For the six months ended December 31, 2019, net interest income was $8.9 million compared to $9.0 million for the six months ended December 31, 2018. We recorded a reduction to the provision for loan losses of $(84,000) for the six months ended December 31, 2019, compared to a provision for loan losses of $375,000 for the six months ended December 31, 2018. Interest and dividend income increased to $13.8 million for the six months ended December 31, 2019, from $13.1 million for the six months ended December 31, 2018. Interest expense increased to $4.9 million for the six months ended December 31, 2019 from $4.1 million for the six months ended December 31, 2018. Non-interest income was $2.3 million for both the six months ended December 31, 2019, and the six months ended December 31, 2018. Non-interest expense decreased to $8.5 million for the six months ended December 31, 2019 from $8.6 million for the six months ended December 31, 2018. Provision for income tax increased to $787,000 for the six months ended December 31, 2019, from $624,000 for the six months ended December 31, 2018.

Total assets at December 31, 2019 were $678.2 million compared to $723.9 million at June 30, 2019. Cash and cash equivalents decreased to $10.8 million at December 31, 2019, from $59.6 million at June 30, 2019. Investment securities increased to $146.8 million at December 31, 2019, from $146.3 million at June 30, 2019. Net loans receivable increased to $490.5 million at December 31, 2019, from $487.8 million at June 30, 2019. Deposits decreased to $549.3 million at December 31, 2019, from $607.0 million at June 30, 2019. The large decreases in total assets, cash and cash equivalents, and deposits were due to approximately $55.3 million in deposits from a public entity that collects real estate taxes that was included in deposits at June 30, 2019 and then subsequently withdrawn when tax monies were distributed. Total borrowings, including repurchase agreements, increased to $41.8 million at December 31, 2019 from $26.0 million at June 30, 2019. Stockholders’ equity decreased to $77.7 million at December 31, 2019 from $82.5 million at June 30, 2019. Equity decreased due to the repurchase of 315,081 shares of common stock at an aggregate cost of approximately $7.0 million and the payment of approximately $487,000 in dividends to our shareholders, partially offset by net income of $2.1 million, an increase of $382,000 in accumulated other comprehensive income, net of tax, and ESOP and stock equity plan activity of $324,000.

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 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; 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

 

 

For the Six Months

Ended December 31,

Ended December 31,

 

 

2019

 

 

2018

 

2019

 

 

2018

 

(unaudited)

Interest and dividend income

$

6,789

 

$

6,658

$

13,797

 

$

13,077

Interest expense

 

2,448

 

 

2,167

 

4,870

 

 

4,124

Net interest income

 

4,341

 

 

4,491

 

8,927

 

 

8,953

Provision (credit) for loan losses

 

(30

)

 

138

 

(84

)

 

375

Net interest income after provision for loan losses

 

4,371

 

 

4,353

 

9,011

 

 

8,578

Non-interest income

 

1,231

 

 

1,043

 

2,296

 

 

2,321

Non-interest expense

 

4,266

 

 

4,330

 

8,456

 

 

8,554

Income before taxes

 

1,336

 

 

1,066

 

2,851

 

 

2,345

Income tax expense

 

372

 

 

279

 

787

 

 

624

 

 

 

 

 

Net income (loss)

$

964

 

$

787

$

2,064

 

$

1,721

 

 

 

 

 

Earnings (loss) per share (1)

Basic

$

0.32

 

$

0.22

$

0.65

 

$

0.48

Diluted

$

0.31

 

$

0.22

$

0.64

 

$

0.47

Weighted average shares outstanding (1)

 

 

 

 

Basic

 

3,042,630

 

 

3,570,668

 

3,173,685

 

 

3,597,148

Diluted

 

3,099,912

 

 

3,624,143

 

3,228,463

 

 

3,659,831

footnotes on following page

Performance Ratios

 

 

For the Six Months Ended
December 31, 2019

 

For the Year Ended
June 30, 2019

 

 

(unaudited)

 

 

Return on average assets

 

0.61%

 

0.53%

Return on average equity

 

5.20%

 

4.41%

Net interest margin on average interest earning assets

 

2.73%

 

2.78%

  

 

Selected Balance Sheet Data

(Dollars in thousands, except per share data)

 

At

December 31, 2019

At

June 30, 2019

 

 

(unaudited)

 

 

 

Assets

$

678,216

 

$

723,870

 

 

 

Cash and cash equivalents

 

10,844

 

 

59,600

 

 

 

Investment securities

 

146,807

 

 

146,291

 

 

 

Net loans receivable

 

490,481

 

 

487,774

 

 

 

Deposits

 

549,326

 

 

607,023

 

 

 

Borrowings and repurchase agreements

 

41,840

 

 

26,015

 

 

 

Total stockholders’ equity

 

77,728

 

 

82,461

 

 

 

Book value per share (2)

 

23.82

 

 

23.05

 

 

 

Average stockholders’ equity to average total assets

 

11.66

%

 

12.10

%

 

 

Asset Quality

(Dollars in thousands)

 

At

December 31, 2019

 

At

June 30, 2019

 

(unaudited)

 

Non-performing assets (3)

$

1,031

 

$

1,545

 

Allowance for loan losses

 

6,222

 

 

6,328

 

Non-performing assets to total assets

 

0.15

%

 

0.21

%

Allowance for losses to total loans

 

1.25

%

 

1.28

%

 

(1)

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

(2)

Total stockholders’ equity divided by shares outstanding of 3,263,171 at December 31, 2019, and 3,578,252 at June 30, 2019.

(3)

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

 

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

Source: IF Bancorp, Inc.

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