Name: IF Bancorp, Inc. Q4 2025 Earnings Call
Start: 2025-08-29T20:37:39.000Z

Executive Summary

Q4 FY2025 EPS was $0.45, up 246% year over year; net income rose to $1.4M (+234% YoY) on higher net interest income and a credit for credit losses, with annual NIM improving to 2.47% from 2.10% .
Balance sheet quality remained strong: non-performing assets were 0.02% of total assets at year-end; book value per share reached $24.42 (+10.8% YoY) .
Management reiterated ongoing evaluation of shareholder value initiatives and announced a semiannual cash dividend of $0.20 per share (payable Oct 17, 2025) .
Catalysts: continued NIM recovery, disciplined expense control, and reserve releases supporting earnings; deposit dynamics normalized after tax-related public entity outflows earlier in the year .

What Went Well and What Went Wrong

Net interest income expanded to $5.75M in Q4 (+$1.25M YoY), aided by lower interest expense and improved margin; annual NIM rose to 2.47% from 2.10% .
Provision turned into a credit (Q4: $0.371M), lifting earnings; full-year credit for credit losses was $0.701M versus a $0.032M provision last year .
CEO commentary emphasized margin progress and shareholder focus: “we continued to improve our net interest margin resulting in higher earnings per share and net income... [and] are always evaluating and exploring opportunities to enhance shareholder value” .

Core banking volumes softened YoY: net loans receivable declined to $633.6M (from $639.3M), deposits to $721.3M (from $727.2M) at June 30, 2025 .
Noninterest income dipped slightly in Q4 to $1.103M (from $1.203M YoY), and noninterest expense remains elevated versus FY2024 on an annual basis ($20.5M vs $19.7M) .
Earlier in FY2025, deposits saw a large withdrawal (~$62.7M) tied to tax distributions by a public entity, increasing reliance on borrowings intra-year before normalizing by year-end .

Metric	Q4 2024	Q2 2025	Q3 2025	Q4 2025
EPS ($)	$0.13	$0.38	$0.31	$0.45
Net Income ($M)	$0.431	$1.219	$1.011	$1.441
Interest Income ($M)	$10.661	$11.010	$10.645	$10.849
Interest Expense ($M)	$6.162	$5.993	$6.544	$5.097
Net Interest Income ($M)	$4.499	$5.017	$5.224	$5.752
Provision (Credit) for Credit Losses ($M)	$(0.164)	$(0.450)	$(0.262)	$(0.371)
Noninterest Income ($M)	$1.203	$1.257	$1.176	$1.103
Noninterest Expense ($M)	$5.335	$5.042	$5.271	$5.233

KPIs and Balance Sheet	Q4 2024 (Jun 30)	Q2 2025 (Dec 31)	Q3 2025 (Mar 31)	Q4 2025 (Jun 30)
Book Value/Share ($)	$22.04	$22.66	$23.55	$24.42
Total Assets ($M)	$887.745	$885.149	$879.141	$887.659
Net Loans ($M)	$639.297	$647.664	$638.193	$633.603
Deposits ($M)	$727.177	$682.126	$683.979	$721.258
Borrowings incl. repos ($M)	$76.021	$117.438	$104.909	$72.919
Equity ($M)	$73.916	$75.939	$78.940	$81.837
Non-performing assets ($M)	$0.173	$0.248	$0.377	$0.211
NPA / Total Assets (%)	0.02%	0.03%	0.04%	0.02%
Allowance for Credit Losses ($M)	$7.499	$7.346	$7.094	$6.627
Allowance / Loans (%)	1.16%	1.12%	1.10%	1.04%

Notes:

No Q4 FY2025 earnings call transcript was found in our document catalog; external sources similarly do not list a conference call for Q4 FY2025 [ListDocuments] .

Metric	Period	Previous Guidance	Current Guidance	Change
Dividend per Share ($)	H2 FY2025	$0.20 payable Apr 15, 2025, record Mar 21, 2025	$0.20 payable Oct 17, 2025, record Sep 26, 2025	Maintained amount; updated payment/record dates
Revenue/Margins/OpEx	FY2025/Q4 FY2025	Not provided	Not provided	N/A

Management did not issue formal revenue, margin, OpEx, or tax rate guidance in Q4 FY2025 materials .

Topic	Previous Mentions (Q2 FY2025)	Previous Mentions (Q3 FY2025)	Current Period (Q4 FY2025)	Trend
Interest rate trajectory	“Fed has begun easing short term rates”	“Fed’s easing stalled this quarter”	“Interest rates remained unchanged in the quarter”	Stabilized at higher levels; margin recovery ongoing
Deposit competitive environment	“Competitive environment for deposits remains difficult”	“Competitive environment for deposits remains difficult”	Noted continued margin improvement despite unchanged rates	Improving margins despite competition
Liquidity and borrowings	Borrowings up to $117.4M; cash down to $5.9M	Borrowings at $104.9M; cash at $8.9M	Borrowings down to $72.9M; cash up to $20.1M	Liquidity improved; borrowings normalized
Deposits dynamics	Large withdrawal (~$62.7M) due to tax distributions	Effects of public entity withdrawals noted; deposits at $684.0M	Deposits recovered to $721.3M	Deposits normalization
Credit costs	Credit for credit losses of $0.450M (Q2)	Credit for credit losses of $0.262M (Q3)	Credit for credit losses of $0.371M (Q4)	Continued reserve releases supporting earnings

“We continued to improve our net interest margin resulting in higher earnings per share and net income… Our book value per share finished the June 30, 2025 quarter at $24.42… the Board and management are always evaluating and exploring opportunities to enhance shareholder value.” — Walter H. “Chip” Hasselbring, III, CEO (Aug 29, 2025) .
“The Federal Reserve’s easing of short-term rates stalled this quarter and the competitive environment for deposits remains difficult… our net interest margin continued to improve.” — CEO (Apr 29, 2025) .
“While the Federal Reserve has begun easing short term rates, the competitive environment for deposits remains difficult… Our net interest margin continues to recover.” — CEO (Jan 30, 2025) .

No Q4 FY2025 earnings call transcript or Q&A section was available in company materials or our catalog [ListDocuments].

S&P Global consensus estimates for Q4 FY2025 EPS and revenue were not available in our data pull; comparisons to Street consensus are not applicable in this period. If consensus becomes available, update the beat/miss analysis accordingly.
An AP snapshot indicated net revenue-of-interest (revenue net of interest expense) of $6.9M “topping Street forecasts,” but underlying consensus figures were not disclosed; this is not an S&P Global consensus and is cited for context only .

Earnings quality benefited from margin expansion and reserve releases; watch for sustainability as rates stabilize and deposit competition persists .
Liquidity improved markedly by year-end (cash up to $20.1M; borrowings down to $72.9M), reducing funding risk versus midyear levels .
Book value per share climbed to $24.42; continued capital accretion supports dividend capacity and optionality around shareholder returns .
Core loan and deposit volumes softened YoY; monitoring organic growth and pricing discipline remains critical to medium-term NIM trajectory .
Asset quality remains strong (NPAs 0.02% of assets), but allowance-to-loans declined to 1.04%; assess provisioning trends as credit cycles evolve .
Near-term trading: positive sentiment from margin improvement and dividend continuity; medium-term thesis centers on stable asset quality, disciplined funding, and sustained NIM recovery amid a competitive deposit environment .

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