Executive Summary

Q2 2025 EPS was $0.38 and net income was $1.219M, a sharp improvement from $0.06 and $0.185M YoY; net interest income rose to $5.017M and the company recorded a $0.450M credit for credit losses .
Interest and dividend income increased to $11.010M, while interest expense rose modestly to $5.993M; noninterest income rose to $1.257M and noninterest expense to $5.042M .
Deposits declined to $682.1M due to the seasonal withdrawal of ~$62.7M of tax-related public funds; borrowings increased to $117.4M to fund the balance sheet, while book value per share rose to $22.66 .
Management emphasized disciplined loan balances and recovering net interest margin amid a difficult deposit environment; Board declared a $0.20 dividend (payable April 15, 2025) supporting shareholder returns .

What Went Well and What Went Wrong

Earnings inflected: Q2 net income of $1.219M and EPS $0.38, up sharply from $0.185M and $0.06 YoY; net interest income improved to $5.017M and a $0.450M credit for credit losses aided results .
Noninterest income strength: Noninterest income grew to $1.257M from $0.915M YoY, adding to top-line resilience outside of spread income .
Management tone on NIM recovery: “Our net interest margin continues to recover and our book value per share finished the December 31, 2024 quarter at $22.66.” – Walter H. “Chip” Hasselbring, III, CEO .

Deposit outflow: Deposits fell to $682.1M, driven by ~$62.7M withdrawal of public tax-collection funds; reliance on borrowings rose to $117.4M .
Funding costs remain elevated: Interest expense increased to $5.993M (from $5.841M YoY), reflecting competitive deposit pricing and mix shift toward higher-cost funding .
Operating expenses up: Noninterest expense increased to $5.042M (from $4.707M YoY), pressuring pre-tax income despite improvements elsewhere .

Metric	Q4 2024 (Jun 30, 2024)	Q1 2025 (Sep 30, 2024)	Q2 2025 (Dec 31, 2024)
Interest & Dividend Income ($USD Millions)	$10.661	$10.913	$11.010
Interest Expense ($USD Millions)	$6.162	$6.092	$5.993
Net Interest Income ($USD Millions)	$4.499	$4.821	$5.017
Provision (Credit) for Credit Losses ($USD Millions)	$(0.164)	$0.382	$(0.450)
Noninterest Income ($USD Millions)	$1.203	$1.408	$1.257
Noninterest Expense ($USD Millions)	$5.335	$4.996	$5.042
Pre-tax Income ($USD Millions)	$0.531	$0.851	$1.682
Net Income ($USD Millions)	$0.431	$0.633	$1.219
Diluted EPS ($USD)	$0.13	$0.20	$0.38

Metric	Q2 2024 (Dec 31, 2023)	Q2 2025 (Dec 31, 2024)
Interest & Dividend Income ($USD Millions)	$10.229	$11.010
Interest Expense ($USD Millions)	$5.841	$5.993
Net Interest Income ($USD Millions)	$4.388	$5.017
Provision (Credit) for Credit Losses ($USD Millions)	$0.364	$(0.450)
Noninterest Income ($USD Millions)	$0.915	$1.257
Noninterest Expense ($USD Millions)	$4.707	$5.042
Pre-tax Income ($USD Millions)	$0.232	$1.682
Net Income ($USD Millions)	$0.185	$1.219
Diluted EPS ($USD)	$0.06	$0.38

Metric	FY 2024	Q1 2025 (Quarter)	6M FY2025 (YTD)
Net Interest Margin (%)	2.10%	2.27%	2.32%
ROA (%)	0.20%	0.28%	0.42%
ROE (%)	2.54%	3.28%	4.82%

KPI	Jun 30, 2024	Sep 30, 2024	Dec 31, 2024
Assets ($USD Millions)	$887.745	$893.425	$885.149
Cash & Equivalents ($USD Millions)	$9.571	$7.784	$5.906
Investment Securities ($USD Millions)	$190.475	$192.651	$182.890
Net Loans Receivable ($USD Millions)	$639.297	$647.064	$647.664
Deposits ($USD Millions)	$727.177	$677.159	$682.126
Borrowings incl. Repos ($USD Millions)	$76.021	$126.587	$117.438
Stockholders’ Equity ($USD Millions)	$73.916	$78.765	$75.939
Book Value per Share ($USD)	$22.04	$23.49	$22.66
Non-performing Assets ($USD Thousands)	$173	$201	$248
NPA/Assets (%)	0.02%	0.02%	0.03%
Allowance for Credit Losses ($USD Thousands)	$7,499	$7,472	$7,346
Allowance to Loans (%)	1.16%	1.14%	1.12%

Metric	Period	Previous Guidance	Current Guidance	Change
Dividend per Share ($USD)	Payable Apr 15, 2025; record Mar 21, 2025	Semiannual dividend (prior practice)	$0.20 declared; intent to continue semiannual dividend, subject to conditions	Maintained/Confirmed

Note: The company did not provide quantitative forward guidance for revenue, margins, OpEx, OI&E, or tax rate in Q2 2025 materials .

No earnings call transcript was available for Q2 2025. Themes below reflect management commentary from press releases.

Topic	Previous Mentions (Q4 FY2024 & Q1 FY2025)	Current Period (Q2 FY2025)	Trend
Deposit competition & funding costs	“Biggest challenge remains managing the cost of funding our assets” (Q4 FY2024) ; competitive pricing pressured interest expense (Q1 FY2025)	“Competitive environment for deposits remains difficult”; disciplined on loan balances given funding	Unchanged to improving as rates ease
Net interest margin (NIM)	FY2024 NIM 2.10%; Q1 NIM 2.27%	YTD NIM improved to 2.32%; management says NIM “continues to recover”	Improving
Asset quality	Low NPAs (0.02% at FY2024 and Q1); adequate allowance	NPAs modestly higher to 0.03%; allowance ratio at 1.12%	Stable/benign
Balance sheet mix	Deposits decreased due to $62.7M seasonal public-fund withdrawals (Q1)	Same driver cited for YTD decrease; borrowings used to fund assets	Seasonal effect persists
Capital & book value	BVPS $22.04 (FY2024) rising to $23.49 (Q1)	BVPS $22.66 (Q2); equity up to $75.9M	Solid capital

“While the Federal Reserve has begun easing short term rates, the competitive environment for deposits remains difficult. We held the balances in our loan portfolio steady as we were disciplined based on the funding environment. Our net interest margin continues to recover and our book value per share finished the December 31, 2024 quarter at $22.66.” – Walter H. “Chip” Hasselbring, III, Chairman & CEO .
Q1 tone: “We were pleased to see earnings improvement… Our capital ratios and asset quality remain strong.” – Walter H. “Chip” Hasselbring, President & CEO .

No earnings call transcript or Q&A session was available for Q2 2025 based on company materials reviewed [ListDocuments: earnings-call-transcript none for Q2 window].

Wall Street consensus estimates via S&P Global were unavailable for IROQ during this session; therefore, comparisons to consensus could not be made. Values would normally be sourced from S&P Global’s analyst consensus; note explicitly that estimates were unavailable.

Earnings inflection: Strong YoY improvement to $0.38 EPS on higher net interest income and a $0.450M credit for credit losses; watch sustainability of credit releases and NIM recovery trajectory .
Funding dynamics remain pivotal: Deposits decreased due to seasonal tax-related public fund outflows; elevated borrowings substituted for funding, impacting interest expense and risk profile .
NIM tailwind: Management cites ongoing NIM recovery amid a gradually easing rate backdrop; monitor pace and durability as deposit pricing competition persists .
Asset quality stable: NPAs remain very low (0.03% of assets), allowance ratio 1.12%; benign credit supports earnings resiliency .
Capital and book value: Equity increased to $75.9M; BVPS at $22.66 underscores capital strength, providing downside support .
Dividend continuity: $0.20 dividend declared, intent to continue semiannual payouts, supporting total shareholder return .
Near-term trading lens: Stock narrative likely hinges on NIM progression vs. funding costs and normalization of public-fund deposit seasonality; absence of consensus estimates limits beat/miss framing this quarter .