Executive Summary
Executive Summary – QQ2 2025 highlights for IF Bancorp Inc show a strong top-line expansion driven by discretionary growth in revenue to 11.01 million, a 107.7% year-over-year rise and a 76.8% quarter-over-quarter gain. Despite a near-1.0x operating income margin, the net income collapses to 1.22 million after a substantial negative other income/expenses line (-9.24 million), yielding a net margin of ~11.1% and an EPS of 0.38. The disparity between operating income and bottom-line earnings points to non-operating headwinds that investors should monitor closely, including potential one-offs or impairment-related items embedded in other income/expenses.
On the balance sheet, IF Bancorp presents a robust liquidity profile with cash and short-term investments of roughly 188.6 million against total liabilities of 809.2 million and equity of 75.9 million. The company carries a meaningful long-term debt load (approximately 99.0 million) and a net debt position around 111.3 million, but liquidity cushions are substantial given the securities and cash buffer. Revenue growth is accompanied by a lean net income margin and a modest ROE (~1.6%) and ROA (~0.14%), underscoring a bank with potential leverage and efficiency upside but also sensitivity to non-interest income volatility and rate environment.
Compared with regional peers, the stock trades near book value (price-to-book ~0.99) with a trailing P/E around the mid-teens. The combination of strong liquidity, sizable investment securities, and a growth-heavy revenue profile supports an outlook of stabilization in profitability if non-operating headwinds moderate. The investment thesis remains cautious-to-positive: leverage near peers, solid liquidity, and potential for continued revenue growth, but downside risks include volatility of other income, credit quality swings in a rising-rate environment, and regulatory shifts affecting fee-based and investment income streams.
Key Performance Indicators
QoQ: 76.75% | YoY:107.70%
QoQ: 1 183.67% | YoY:4 608.62%
QoQ: 92.58% | YoY:558.92%
QoQ: 90.00% | YoY:558.58%
Key Insights
Revenue: 11,010,000; YoY +107.70%; QoQ +76.75%; Gross Profit: 6,274,000; YoY +18.36%; QoQ +0.72%; Operating Income: 10,924,000; YoY +4,608.62%; QoQ +1,183.67%; Net Income: 1,219,000; YoY +558.92%; QoQ +92.58%; EPS: 0.38; YoY +558.58%; QoQ +90.00%; Gross Margin: 0.569,8; Operating Margin: 0.992; Net Margin: 0.111; Revenue mix and profitability signals: The company reports an exceptionally high operating income margin (approximately 99.22%), reflecting a strong operating base on revenue; however, ...
Financial Highlights
Revenue: 11,010,000; YoY +107.70%; QoQ +76.75%; Gross Profit: 6,274,000; YoY +18.36%; QoQ +0.72%; Operating Income: 10,924,000; YoY +4,608.62%; QoQ +1,183.67%; Net Income: 1,219,000; YoY +558.92%; QoQ +92.58%; EPS: 0.38; YoY +558.58%; QoQ +90.00%; Gross Margin: 0.569,8; Operating Margin: 0.992; Net Margin: 0.111; Revenue mix and profitability signals: The company reports an exceptionally high operating income margin (approximately 99.22%), reflecting a strong operating base on revenue; however, the substantial negative total other income/expenses (-9,242,000) drives net income to a modest level and explains the wide gap between operating and net results. The net income margin (~11.07%) aligns with a small-cap regional bank profile where non-interest income and non-operating items can materially swing quarterly results. Basic and diluted EPS: 0.38 on ~3.23 million weighted shares.
Balance Sheet Strength and Leverage: Total assets 885.15 million; total liabilities 809.21 million; total stockholders’ equity 75.94 million; cash and cash equivalents 6.16 million; short-term investments 182.89 million; long-term investments 647.66 million. Debt profile shows short-term debt 18.44 million and long-term debt 98.99 million. Net debt stands at 111.28 million. Liquidity ratios presented as current and quick ratios of 87.48 appear anomalously high (likely reflecting treatment of securities holdings and cash equivalents in current assets); nonetheless, the balance sheet demonstrates significant liquid and marketable securities buffers contrasted with a sizable investment securities portfolio. Free cash flow for QQ2 2025 was negative (-226,000), with operating cash flow also negative (-155,000) but investing activities contributing positive cash (2.83 million) and financing activities consuming cash (-4.55 million).
Capital Efficiency and Returns: Return on assets ~0.14% and return on equity ~1.61% indicate the bank is generating modest earnings relative to asset and equity bases. The company’s price-to-book around 0.99x and price-to-earnings around 15.4x place IROQ near book value with a reasonable earnings multiple for a small regional bank with a high liquidity buffer and investment securities footprint.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
11.01M |
107.70% |
76.75% |
| Gross Profit |
6.27M |
18.36% |
0.72% |
| Operating Income |
10.92M |
4 608.62% |
1 183.67% |
| Net Income |
1.22M |
558.92% |
92.58% |
| EPS |
0.38 |
558.58% |
90.00% |
Key Financial Ratios
operatingProfitMargin
99.2%
operatingCashFlowPerShare
$-0.05
freeCashFlowPerShare
$-0.07
dividendPayoutRatio
2.21%
Management Commentary
No earnings call transcript data provided in the input. As a result, management commentary and qualitative signals from a live call are not available in this dataset. If/when transcript access is provided, highlights would be organized by themes such as strategy (growth initiatives and product mix), operations (cost discipline, efficiency improvements), and market conditions (regional banking outlook, regulatory environment).
Forward Guidance
Management guidance is not embedded in the provided data. In a conservatively constructive scenario, IF Bancorp could sustain revenue growth through loan originations, fee-based services, and continued securities activity, with an emphasis on stabilizing non-interest income to reduce earnings volatility. Key factors to monitor include: (1) net interest income sensitivity to rate changes and asset mix (loans vs. securities), (2) credit quality indicators and charge-offs, (3) deposit growth and funding costs, (4) efficiency gains that could translate into a higher operating margin absent one-off items, and (5) the trajectory of non-operating income/expense items that currently weigh on net income. If macro conditions stabilize and non-operating headwinds moderate, the company could realize meaningful upside in earnings power and ROE toward peer levels over 2H 2025 and into 2026. Downside risks include more pronounced volatility in other income, tighter credit environment, and interest-rate volatility affecting gains/losses on investments.