Provision for credit losses is an amount set aside by a financial institution to cover potential future losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution manage risks and stay financially healthy. For investors, it signals how cautious a lender is about potential loan defaults and can impact the company's profitability and financial stability.
noninterest incomefinancial
Noninterest income is the money a bank or financial firm earns from activities other than charging interest on loans, such as account fees, transaction charges, advisory and underwriting fees, trading gains, and service income — like a store making extra money from repairs, warranties or delivery charges rather than product sales. It matters to investors because it shows how diversified a company’s revenue is and whether it can withstand changes in interest rates; a strong noninterest income stream can stabilize profits but may also be more variable than steady loan interest.
noninterest expensefinancial
Costs a company incurs that are not tied to borrowing or lending, such as employee pay, rent, technology, marketing, and office supplies. Think of a household: noninterest expense is everything you pay for living and running the home except mortgage or loan interest; for investors, it shows how efficiently a company runs its core operations and directly affects profit margins and the cash available for growth or dividends.
allowance for credit lossesfinancial
Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.
non-performing assetsfinancial
Loans or other credit exposures that are not producing expected income because borrowers have stopped making scheduled payments for a significant period (commonly around 90 days). Think of it like a business lending money that has gone quiet — the cash flow stops while the lender still carries the debt on its books. High levels of non-performing assets matter to investors because they reduce a lender’s earnings, tie up capital that could be used for growth, and signal higher risk of future losses.
return on average assetsfinancial
Return on average assets (ROAA) measures how efficiently a company turns its assets into profit by comparing profit after expenses to the average value of its assets over a period (usually the average of beginning and ending assets). It matters to investors because it shows how well management uses the company’s resources to generate returns—think of it as how much profit a baker earns from the oven space they actually used over time.
return on average equityfinancial
Return on average equity (ROAE) measures how much profit a company generates for its shareholders’ invested capital over a period, calculated by dividing net profit by the average shareholder equity during that period. It matters to investors because it shows how efficiently management turns owners’ money into earnings—like how much bread a baker bakes from the same oven space—helping compare profitability across companies and track performance over time.
net interest marginfinancial
Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.
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 $1.3 million, or $0.41 per basic and diluted share, for the three months ended December 31, 2025, compared to net income of $1.2 million, or $0.38 per basic and diluted share, for the three months ended December 31, 2024.
Walter H. “Chip” Hasselbring, III, Chairman and Chief Executive Officer, commented, “We continue to execute on our business plan and are pleased with our results for the quarter. As previously announced, we are excited about our pending merger with ServBanc. The transaction remains on track for a first quarter close as previously reported.”
For the three months ended December 31, 2025, net interest income was $6.0 million compared to $5.0 million for the three months ended December 31, 2024. We recorded a provision for credit losses of $34,000 for the three months ended December 31, 2025, compared to a credit for credit losses of $450,000 for the three months ended December 31, 2024. Interest income decreased to $10.5 million for the three months ended December 31, 2025, from $11.0 million for the three months ended December 31, 2024. Interest expense decreased to $4.6 million for the three months ended December 31, 2025, from $6.0 million for the three months ended December 31, 2024. Noninterest income increased to $1.4 million for the three months ended December 31, 2025, from $1.3 million for the three months ended December 31, 2024. Noninterest expense increased to $5.5 million for the three months ended December 31, 2025, from $5.0 million for the three months ended December 31, 2024. The largest component of this increase was professional services, which increased primarily due to additional legal and consulting services received as a result of the pending merger with ServBanc Holdco, Inc. Provision for income tax increased to $494,000 for the three months ended December 31, 2025, from $463,000 for the three months ended December 31, 2024.
The Company announced unaudited net income of $2.7 million, or $0.84 per basic and diluted share for the six months ended December 31, 2025, compared to $1.9 million, or $0.57 per basic and diluted share for the six months ended December 31, 2024. For the six months ended December 31, 2025, net interest income was $12.2 million compared to $9.8 million for the six months ended December 31, 2024. We recorded a credit for credit losses of $8,000 for the six months ended December 31, 2025, compared to a credit for credit losses of $68,000 for the six months ended December 31, 2024. Interest income decreased to $21.6 million for the six months ended December 31, 2025, from $21.9 million for the six months ended December 31, 2024. Interest expense decreased to $9.5 million for the six months ended December 31, 2025 from $12.1 million for the six months ended December 31, 2024. Non-interest income decreased to $2.5 million for the six months ended December 31, 2025, from $2.7 million for the six months ended December 31, 2024. Non-interest expense increased to $10.9 million for the six months ended December 31, 2025, from $10.0 million for the six months ended December 31, 2024. Provision for income tax increased to $1.0 million for the six months ended December 31, 2025, from $681,000 for the six months ended December 31, 2024.
Total assets at December 31, 2025 were $830.4 million compared to $887.7 million at June 30, 2025. Cash and cash equivalents decreased to $8.8 million at December 31, 2025, from $20.1 million at June 30, 2025. Investment securities decreased to $184.8 million at December 31, 2025, from $187.8 million at June 30, 2025. Net loans receivable decreased to $592.3 million at December 31, 2025, from $633.6 million at June 30, 2025. Deposits decreased to $649.6 million at December 31, 2025, from $721.3 million at June 30, 2025. The large decrease in deposits was due to approximately $59.3 million in deposits from a public entity that collects real estate taxes that were withdrawn in the six months ended December 31, 2025, when tax monies were distributed. Total borrowings, including repurchase agreements, increased to $83.6 million at December 31, 2025 from $72.9 million at June 30, 2025. Stockholders’ equity increased to $87.4 million at December 31, 2025 from $81.8 million at June 30, 2025. Equity increased primarily due to net income of $2.7 million, an increase of $3.1 million in accumulated other comprehensive income (loss), net of tax, and employee stock ownership plan (“ESOP”) and stock equity plan activity of $339,000, partially offset by the accrual of approximately $647,000 in dividends to our shareholders.
On October 29, 2025, the Company announced the signing of a merger agreement under which ServBanc Holdco, Inc. will acquire the Company in an all-cash transaction for total consideration valued at approximately $89.8 million, subject to certain potential adjustments described in the merger agreement. Subject to the satisfaction or waiver of the closing conditions contained in the merger agreement, including the approval of the merger agreement by the Company’s shareholders, it is expected that the merger will be completed during the first quarter of 2026. However, it is possible that factors outside the control of both companies could result in the merger being completed at a different time or not at all.
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, 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 changes in interest rates, the imposition of tariffs or other domestic or international governmental policies and retaliatory responses, 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
December 31,
For the Six Months Ended
December 31,
2025
2024
2025
2024
(unaudited)
Interest and dividend income
$
10,535
$
11,010
$
21,627
$
21,923
Interest expense
4,564
5,993
9,473
12,085
Net interest income
5,971
5,017
12,154
9,838
Provision (credit) for credit losses
34
(450
)
(8
)
(68
)
Net interest income after provision (credit) for credit losses
5,937
5,467
12,162
9,906
Noninterest income
1,360
1,257
2,502
2,665
Noninterest expense
5,475
5,042
10,938
10,038
Income before taxes
1,822
1,682
3,726
2,533
Income tax expense
494
463
1,006
681
Net income
$
1,328
$
1,219
$
2,720
$
1,852
Earnings per share (1) Basic
$
0.41
$
0.38
$
0.84
$
0.57
Diluted
$
0.41
$
0.38
$
0.84
$
0.57
Weighted average shares outstanding (1)
Basic
3,243,273
3,225,512
3,240,867
3,223,114
Diluted
3,243,273
3,225,512
3,240,867
3,223,114
footnotes on following page
Performance Ratios
For the Six Months Ended
December 31, 2025
For the Year Ended
June 30, 2025
(unaudited)
Return on average assets
0.64%
0.49%
Return on average equity
6.39%
5.52%
Net interest margin on average interest earning assets
2.98%
2.47%
Selected Balance Sheet Data
(Dollars in thousands, except per share data)
At
December 31, 2025
At
June 30, 2025
(unaudited)
Assets
$
830,382
$
887,659
Cash and cash equivalents
8,791
20,092
Investment securities
184,755
187,753
Net loans receivable
592,281
633,603
Deposits
649,561
721,258
Federal Home Loan Bank borrowings, repurchase agreements and other borrowings
83,609
72,919
Total stockholders’ equity
87,367
81,837
Book value per share (2)
26.07
24.42
Average stockholders’ equity to average total assets
9.97
%
8.83
%
Asset Quality
(Dollars in thousands)
At
December 31, 2025
At
June 30, 2025
(unaudited)
Non-performing assets (3)
$
1,979
$
211
Allowance for credit losses
6,526
6,627
Non-performing assets to total assets
0.24
%
0.02
%
Allowance for credit losses to total loans
1.09
%
1.04
%
(1)
Shares outstanding do not include ESOP shares not committed for release.
(2)
Total stockholders’ equity divided by shares outstanding of 3,351,526 at both December 31, 2025 and June 30, 2025.
(3)
Non-performing assets include non-accrual loans, loans past due 90 days or more and accruing, and foreclosed assets held for sale.
