Contact:  Walter H. Hasselbring, III

                 (815) 432-2476

IF BANCORP, INC. ANNOUNCES RESULTS FOR FIRST QUARTER

OF FISCAL YEAR 2023 (UNAUDITED)

Watseka, Illinois, November 3, 2022 - IF Bancorp, Inc. (NASDAQ: IROQ) (the “Company”) the holding company for Iroquois Federal Savings and Loan Association (the “Association”), announced unaudited net income of $2.0 million, or $0.63 per basic share and $0.62 per diluted share for the three months ended September 30, 2022, compared to $1.9 million, or $0.62 per basic share and $0.61 per diluted share, for the three months ended September 30, 2021.

For the three months ended September 30, 2022, net interest income was $6.3 million compared to $5.6 million for the three months ended September 30, 2021.  Interest income increased to $7.1 million for the three months ended September 30, 2022, from $6.3 million for the three months ended September 30, 2021.  Interest expense increased to $828,000 for the three months ended September 30, 2022, from $679,000 for the three months ended September 30, 2021.  We recorded a credit for credit losses of $(88,000) in the three months ended September 30, 2022, compared to a credit for credit losses of $(127,000) in the three months ended September 30, 2021.  Noninterest income decreased to $1.2 million for the three months ended September 30, 2022, from $1.5 million for the three months ended September 30, 2021.  Noninterest expense increased to $4.8 million for the three months ended September 30, 2022, from $4.7 million for the three months ended September 30, 2021.  For the three months ended September 30, 2022, income tax expense totaled $740,000 compared to $663,000 for the three months ended September 30, 2021.

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 September 30, 2022 were $806.9 million compared to $857.6 million at June 30, 2022.  Cash and cash equivalents decreased to $11.4 million at September 30, 2022, from $75.8 million at June 30, 2022.  Investment securities decreased to $206.6 million at September 30, 2022, from $220.9 million at June 30, 2022.  Net loans receivable increased to $544.1 million at September 30, 2022, from $518.9 million at June 30, 2022.  Deposits decreased to $657.4 million at September 30, 2022, from $752.0 million at June 30, 2022.  The large decrease in deposits and cash and cash equivalents was due to approximately $57.6 million in deposits from a public entity that collects real estate taxes that were on deposit at June 30, 2022 and withdrawn in the three months ended September 30, 2022, when tax monies were distributed.  Total borrowings, including repurchase agreements, increased to $72.7 million at September 30, 2022 from $24.2 million at June 30, 2022.  Stockholders’ equity decreased to $67.5 million at September 30, 2022 from $71.7 million at June 30, 2022.   Equity decreased primarily due to a decrease of $5.7 million in accumulated other comprehensive income (loss), net of tax, and the accrual of approximately $667,000 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.  These decreases were partially offset by net income of $2.0 million, and ESOP and stock equity plan activity of $596,000. 

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, Champaign and Bourbonnais, 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.

Selected Income Statement Data

(Dollars in thousands, except per share data)

(Dollars in thousands, except per share data)

Asset Quality

(Dollars in thousands)

(1)	Shares outstanding do not include ESOP shares not committed for release.
(2)	Total stockholders’ equity divided by shares outstanding of 3,337,626 at September 30, 2022, and 3,257,626 at June 30, 2022.
(3)	Non-performing assets include non-accrual loans, loans past due 90 days or more and accruing, and foreclosed assets held for sale.