Executive Summary
IF Bancorp Inc (IROQ) reported QQ3 2024 results with a modest profit profile and a highly leveraged, but still manageable, balance sheet. Revenue of $5.40 million declined 5.9% year-over-year but rose 1.85% quarter-over-quarter, yielding net income of $0.708 million and earnings per share of $0.22 for the quarter. The operating margin stood at roughly 17.6%, driving a net profit margin near 13.1%. While the quarter shows positive earnings momentum on a QoQ basis, the year-over-year decline and a notably small ROA/ROE highlight ongoing earnings quality challenges for a small regional bank in a competitive environment. The balance sheet reflects a total asset base of about $905 million with high leverage (debt to capitalization around 62.6%), a sizable long-term debt load, and a substantial level of other non-current assets, which together imply sensitivity to rate movements and balance sheet discipline will be critical going forward. Cash generation remains weak on a standalone operating basis (operating cash flow of $0.019 million; free cash flow negative by about $0.067 million), while investing activities were meaningfully negative due to portfolio actions and other investing activities, with net cash used by investing of approximately $13.0 million. Management commentary is not embedded in the transcript provided, but typical themes for a bank of this size include balance sheet optimization, deposit stability, cost discipline, and risk controls in a rate environment. The investment backdrop remains challenging with ROA and ROE well below mid-tier peers, suggesting the stock may trade at a discount to book value, consistent with a price-to-book around 0.73x. Investors should monitor NIM trajectory, deposit costs, credit quality signals, and capital adequacy as key drivers of longer-term value.
Key Performance Indicators
Key Insights
Revenue: $5,399,000; YoY change: -5.91%; QoQ change: +1.85%
Gross Profit: $5,399,000; YoY: -9.69%; QoQ: +1.85%
Operating Income: $951,000; YoY: N/A; QoQ: +309.91%
Net Income: $708,000; YoY: +2.61%; QoQ: +282.70%
EPS: $0.22; YoY: 0.00%; QoQ: +281.28%
Gross Margin: 100% (per reported data); Operating Margin: 17.6%; Net Margin: 13.1%
Revenue/Asset Context: Total assets ~$904.99 million; total liabilities ~$832.61 million; stockholders’ equity ~$72.38 million; debt ~$121.30 million; debt ratio ~13...
Financial Highlights
Revenue: $5,399,000; YoY change: -5.91%; QoQ change: +1.85%
Gross Profit: $5,399,000; YoY: -9.69%; QoQ: +1.85%
Operating Income: $951,000; YoY: N/A; QoQ: +309.91%
Net Income: $708,000; YoY: +2.61%; QoQ: +282.70%
EPS: $0.22; YoY: 0.00%; QoQ: +281.28%
Gross Margin: 100% (per reported data); Operating Margin: 17.6%; Net Margin: 13.1%
Revenue/Asset Context: Total assets ~$904.99 million; total liabilities ~$832.61 million; stockholders’ equity ~$72.38 million; debt ~$121.30 million; debt ratio ~13.4%; long-term debt to capitalization ~62.6%
Liquidity: Cash and cash equivalents ~$16.06 million; cash and short-term investments ~$211.14 million; operating cash flow ~$0.019 million; free cash flow ~-$0.067 million
Cash Flow: Net cash from operating activities ~$0.019 million; net cash used in investing activities ~$13.017 million; net cash used in financing activities ~$5.145 million; net change in cash ~$7.891 million; cash at end of period ~$16.06 million.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
5.40M |
-5.91% |
1.85% |
| Gross Profit |
5.40M |
-9.69% |
1.85% |
| Operating Income |
951.00K |
N/A |
309.91% |
| Net Income |
708.00K |
2.61% |
282.70% |
| EPS |
0.22 |
0.00% |
281.28% |
Key Financial Ratios
operatingProfitMargin
17.6%
operatingCashFlowPerShare
$0.01
freeCashFlowPerShare
$-0.09
dividendPayoutRatio
90.7%
Management Commentary
Earnings transcript not provided in the data set. Consequently, no management quotes or verbatim guidance are available from an attached call transcript. If a transcript becomes available, key themes would typically cover: (1) revenue mix and net interest income trends in a low-to-mid rate environment, (2) deposit stability and cost of funds, (3) credit quality indicators and loan growth expectations, (4) expense discipline and operational efficiency initiatives, (5) capital framework and liquidity planning, and (6) outlook for fee-based and wealth-management activities. For now, the analysis relies on the disclosed quarterly metrics only.
Forward Guidance
No explicit forward guidance is provided in the data. Given the bank’s scale and market, the near-term trajectory will likely hinge on: (i) net interest margin (NIM) stability amid rate changes and competitive funding costs, (ii) deposit growth and pricing power to support funding, (iii) credit quality signals in Illinois and neighboring markets, (iv) expense containment to improve operating leverage, and (v) capital adequacy and liquidity management. If management reiterates a cautious stance, key targets to watch would include sustaining a positive operating margin (above ~15%), modest loan growth with maintained asset quality, and a path toward improved ROA/ROE over the next 1–2 quarters. Investors should monitor NIM trends, loan book mix (residential vs. commercial), non-interest income progression (wealth management/annuities), and non-performing asset formation as primary factors for guidance. Expected ranges: revenue stabilization or modest growth in a low-rate environment, with potential upside if funding costs decline or NIM expands, and downside risk if credit quality pressures intensify or deposit costs rise.