IROQ 10-Q Quarterly Report Sept. 30, 2025

IROQ 10-Q Quarter ended Sept. 30, 2025

Exhibits

Exhibits

IF BANCORP, INC.

10-Ks and 10-Qs

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10-Q

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM

10-Q

☒	Quarterly Report Pursuant To Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended

September 30

2025

☐	Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from

Commission File

No. 001-35226

IF Bancorp, Inc.

(Exact name of registrant as specified in its charter)


Maryland		45-1834449
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification Number)

201 East Cherry Street , Watseka , Illinois		60970
(Address of Principal Executive Offices)		Zip Code

_( 815 )

432-2476 _

(Registrant’s telephone number)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value	IROQ	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such requirements for the past 90 days.

YES

☒ NO ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation

S-T

during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

YES

☒ NO ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a

non-accelerated

filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule

12b-2

of the Exchange Act. (Check one)

Indicate by check mark whether the registrant is a shell company (as defined in Rule

12b-2

of the Exchange Act). YES ☐ NO ☒

The Registrant had 3,351,526 shares of common stock, par value $0.01 per share, issued and outstanding as of November 5, 2025.

IF Bancorp, Inc.

Form 10-Q

Index


		Page

Part I. Financial Information

Item 1.	Condensed Consolidated Financial Statements	1

	Condensed Consolidated Balance Sheets as of September 30, 2025 (unaudited) and June 30, 2025	1

	Condensed Consolidated Statements of Income for the Three Months Ended September 30, 2025 and 2024 (unaudited)	2

	Condensed Consolidated Statements of Comprehensive Income for the Three Months Ended September 30, 2025 and 2024 (unaudited)	3

	Condensed Consolidated Statements of Stockholders’ Equity for the Three Months Ended September 30, 2025 and 2024 (unaudited)	4

	Condensed Consolidated Statements of Cash Flows for the Three Months Ended September 30, 2025 and 2024 (unaudited)	5

	Notes to Condensed Consolidated Financial Statements (unaudited)	6

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	35

Item 3.	Quantitative and Qualitative Disclosures about Market Risk	46

Item 4.	Controls and Procedures	46

Part II. Other Information

Item 1.	Legal Proceedings	47

Item 1A.	Risk Factors	47

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	47

Item 3.	Defaults upon Senior Securities	47

Item 4.	Mine Safety Disclosures	47

Item 5.	Other Information	47

Item 6.	Exhibits	48

	Signature Page	49

Part I. – Financial Information

Item 1.

Financial Statements

IF Bancorp, Inc.

Condensed Consolidated Balance Sheets

(Dollars in thousands, except per share amount)


	September 30, 2025			June 30, 2025
	(Unaudited)
Assets
Cash and due from banks	$	7,468		$	18,703
Interest-bearing demand deposits		559			1,389

Cash and cash equivalents		8,027			20,092

Interest-bearing time deposits in banks		250			250
Available-for-sale securities		189,824			187,753
Loans, net of allowance for credit losses of $ 6,491 and $ 6,627 at September 30, 2025 and June 30, 2025, respectively		619,282			633,603
Premises and equipment, net of accumulated depreciation of $ 9,662 and $ 9,503 at September 30, 2025 and June 30, 2025, respectively		10,085			10,201
Federal Home Loan Bank stock, at cost		4,844			5,174
Foreclosed assets held for sale		40			165
Accrued interest receivable		3,693			3,545
Bank-owned life insurance		15,466			15,348
Mortgage servicing rights		1,430			1,429
Deferred income taxes		7,904			8,656
Other		1,487			1,443

Total assets	$	862,332		$	887,659

Liabilities and Stockholders’ Equity
Liabilities
Deposits
Demand	$	35,180		$	104,428
Savings, NOW and money market		326,607			303,745
Certificates of deposit		290,260			283,368
Brokered certificates of deposit		28,217			29,717

Total deposits		680,264			721,258

Repurchase agreements		18,130			18,795
Federal Home Loan Bank advances		69,124			54,124
Advances from borrowers for taxes and insurance		681			972
Accrued post-retirement benefit obligation		2,172			2,169
Accrued interest payable		1,812			1,861
Allowance for credit losses on off-balance sheet credit exposures		98			75
Other		5,529			6,568

Total liabilities		777,810			805,822

Commitments and Contingencies
Stockholders’ Equity
Common stock, $ .01 par value per share, 100,000,000 shares authorized, 3,351,526 shares issued and outstanding at both September 30, 2025 and June 30, 2025		33			33
Additional paid-in capital		52,448			52,329
Unearned ESOP shares, at cost, 110,659 and 115,470 shares at September 30, 2025 and June 30, 2025, respectively		( 1,107	)		( 1,155	)
Retained earnings		47,616			46,894
Accumulated other comprehensive loss, net of tax		( 14,468	)		( 16,264	)

Total stockholders’ equity		84,522			81,837

Total liabilities and stockholders’ equity	$	862,332		$	887,659

See accompanying notes to the unaudited condensed consolidated financial statements.

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IF Bancorp, Inc.

Condensed Consolidated Statements of Income (Unaudited)

(Dollars in thousands except per share amounts)


	Three Months Ended September 30,
	2025			2024
Interest and Dividend Income
Interest and fees on loans	$	9,485		$	9,475
Securities:
Taxable		1,344			1,253
Tax-exempt		13			23
Federal Home Loan Bank dividends		123			113
Deposits with other financial institutions		127			49

Total interest and dividend income		11,092			10,913

Interest Expense
Deposits		4,098			4,753
Federal Home Loan Bank advances and repurchase agreements		810			1,033
Line of credit and other borrowings		1			306

Total interest expense		4,909			6,092

Net Interest Income		6,183			4,821
Provision (Credit) for Credit Losses		( 42	)		382

Net Interest Income After Provision (Credit) for Credit Losses		6,225			4,439

Noninterest Income
Customer service fees		132			125
Other service charges and fees		75			61
Insurance commissions		187			184
Brokerage commissions		198			178
Net realized losses on sale of available-for-sale securities		( 114	)		( 71	)
Mortgage banking income (loss), net		86			( 42	)
Gain on sale of loans		116			97
Bank-owned life insurance income, net		118			115
Other		344			761

Total noninterest income		1,142			1,408

Noninterest Expense
Compensation and benefits		3,380			3,068
Office occupancy		286			279
Equipment		603			579
Federal deposit insurance		89			132
Stationary, printing and office		25			22
Advertising		112			101
Professional services		146			136
Supervisory examinations		9			25
Audit and accounting services		90			92
Organizational dues and subscriptions		22			22
Insurance bond premiums		66			64
Telephone and postage		48			46
Loss on sale of foreclosed assets, net		97			—
Other		490			430

Total noninterest expense		5,463			4,996

Income Before Income Tax		1,904			851
Provision for Income Tax		512			218

Net Income	$	1,392		$	633

Earnings Per Share:
Basic	$	0.43		$	0.20
Diluted	$	0.43		$	0.20
Dividends declared per common share	$	0.20		$	0.20

See accompanying notes to the unaudited condensed consolidated financial statements.

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IF Bancorp, Inc.

Condensed Consolidated Statements of Comprehensive Income

(Unaudited)

(Dollars in thousands)


	Three Months Ended September 30,
	2025			2024
Net Income	$	1,392		$	633
Other Comprehensive Income
Unrealized appreciation on available-for-sale securities, net of taxes of $ 684 and $ 1,875 , for 2025 and 2024, respectively		1,713			4,703
Less: reclassification adjustment for realized losses included in net income, net of taxes of $( 32 ) and $( 20 ), for 2025 and 2024, respectively		( 82	)		( 51	)

		1,795			4,754
Change in postretirement health plan gains and losses, net of taxes of $ 0 and $ 0 for 2025 and 2024, respectively		1			( 2	)

Other comprehensive income, net of tax		1,796			4,752

Comprehensive Income	$	3,188		$	5,385

See accompanying notes to the unaudited condensed consolidated financial statements.

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IF Bancorp, Inc.

Condensed Consolidated Statements of Stockholders’ Equity (Unaudited)

(Dollars in thousands, except per share amounts)


	Common Stock		Additional Paid-In Capital		Unearned ESOP Shares			Retained Earnings			Accumulated Other Comprehensive Loss			Total
For the three months ended September 30, 2025
Balance, June 30, 2025	$	33	$	52,329	$	( 1,155	)	$	46,894		$	( 16,264	)	$	81,837
Net income		—		—		—			1,392			—			1,392
Other comprehensive income		—		—		—			—			1,796			1,796
Dividends on common stock, $ 0.20 per share		—		—		—			( 670	)		—			( 670	)
Stock equity plan		—		46		—			—			—			46
ESOP shares earned, 4,811 shares		—		73		48			—			—			121

Balance, September 30, 2025	$	33	$	52,448	$	( 1,107	)	$	47,616		$	( 14,468	)	$	84,522

For the three months ended September 30, 2024
Balance, June 30, 2024	$	33	$	51,913	$	( 1,347	)	$	43,876		$	( 20,559	)	$	73,916
Net income		—		—		—			633			—			633
Other comprehensive income		—		—		—			—			4,752			4,752
Dividends on common stock, $ 0.20 per share		—		—		—			( 670	)		—			( 670	)
Stock equity plan		—		49		—			—			—			49
ESOP shares earned, 4,811 shares		—		37		48			—			—			85

Balance, September 30, 2024	$	33	$	51,999	$	( 1,299	)	$	43,839		$	( 15,807	)	$	78,765

See accompanying notes to the unaudited condensed consolidated financial statements.

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IF Bancorp, Inc.

Condensed Consolidated Statements of Cash Flows (Unaudited)

(Dollars in thousands)


	Three Months Ended September 30,
	2025			2024
Operating Activities
Net income	$	1,392		$	633
Items not requiring (providing) cash
Depreciation		159			154
Provision (credit) for credit losses on loans		( 42	)		377
Accretion of premiums and discounts on securities		( 66	)		( 30	)
Deferred income taxes		36			( 37	)
Net realized gains on loan sales		( 116	)		( 97	)
Net realized losses on sales of available-for-sale securities		114			71
Loss on sale of foreclosed assets, net		97			—
Nontaxable bank-owned life insurance income, net		( 118	)		( 113	)
Originations of loans held for sale		( 5,702	)		( 4,629	)
Proceeds from sales of loans held for sale		5,463			4,851
ESOP compensation expense		121			85
Stock equity plan expense		46			49
Changes in
Accrued interest receivable		( 148	)		( 366	)
Other assets		( 44	)		1,149
Accrued interest payable		( 49	)		( 253	)
Post-retirement benefit obligation		4			—
Other liabilities		( 1,686	)		322

Net cash provided by (used in) operating activities		( 539	)		2,166

Investing Activities
Purchases of available-for-sale securities		( 5,312	)		( 4,353	)
Proceeds from the sales of available-for-sale securities		2,016			4,665
Proceeds from maturities and pay downs of available-for-sale securities		3,688			4,120
Net change in loans		14,717			( 8,144	)
Purchase of premises and equipment		( 43	)		( 72	)
Proceeds from the sale of foreclosed assets		28			—
Purchase of Federal Home Loan Bank stock		—			( 427	)
Redemption of Federal Home Loan Bank stock		330			168

Net cash provided by (used in) investing activities		15,424			( 4,043	)

Financing Activities
Net decrease in demand deposits, money market, NOW and savings accounts		( 46,386	)		( 44,388	)
Net increase (decrease) in certificates of deposit, including brokered certificates		5,392			( 5,630	)
Net decrease in advances from borrowers for taxes and insurance		( 291	)		( 458	)
Proceeds from Federal Home Loan Bank advances		68,500			216,000
Repayments of Federal Home Loan Bank advances		( 53,500	)		( 165,500	)
Proceeds from other borrowings		1,750			23,100
Repayments of other borrowings		( 1,750	)		( 23,175	)
Net increase (decrease) in repurchase agreements		( 665	)		141

Net cash provided by (used in) financing activities		( 26,950	)		90

Net Decrease in Cash and Cash Equivalents		( 12,065	)		( 1,787	)
Cash and Cash Equivalents, Beginning of Period		20,092			9,571

Cash and Cash Equivalents, End of Period	$	8,027		$	7,784

Supplemental Cash Flows Information
Interest paid	$	4,958		$	6,345
Income taxes paid (net of refunds)	$	230		$	—
Dividends payable	$	670		$	670

See accompanying notes to the unaudited condensed consolidated financial statements.

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IF Bancorp, Inc.

Form

10-Q

(Unaudited)

(Table dollar amounts in thousands)

Notes to Condensed Consolidated Financial Statements

Note 1:

Basis of Financial Statement Presentation

IF Bancorp, Inc., (“IF Bancorp” or the “Company”) is a Maryland corporation whose principal activity is the ownership and management of its wholly owned subsidiary, Iroquois Federal Savings and Loan Association (“Iroquois Federal” or the “Association”). The unaudited condensed consolidated financial statements include the accounts of the Company, the Association, and the Association’s wholly owned subsidiary, L.C.I. Service Corporation. All significant intercompany accounts and transactions have been eliminated in consolidation.

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial reporting and with instructions for Form

10-Q

and Regulation

S-X.

Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. The preparation of consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the balance sheet date and revenues and expenses for the period. Actual results could differ from these estimates. In the opinion of management, the preceding unaudited condensed consolidated financial statements contain all adjustments (consisting only of normal recurring accruals) necessary for a fair presentation of the financial condition of the Company as of September 30, 2025 and June 30, 2025, and the results of its operations for the three-month periods ended September 30, 2025 and 2024. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form

10-K

for the year ended June 30, 2025. The results of operations for the three-month period ended September 30, 2025 are not necessarily indicative of the results that may be expected for the entire year.

Revenue Recognition

Accounting Standards Codification (“ASC”) 606,

Revenue from Contracts with Customers

(“ASC 606”), establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied.

The majority of our revenue-generating transactions are not subject to ASC 606, including revenue generated from financial instruments, such as our loans, letters of credit and investments securities, as well as revenue related to our mortgage servicing activities and bank owned life insurance, as these activities are subject to other GAAP discussed elsewhere within our disclosures. Descriptions of our revenue-generating activities that are within the scope of ASC 606, and which are presented in our income statements as components of noninterest income are as follows:

•

Customer Service Fees - The Company generates revenue from fees charged for deposit account maintenance, overdrafts, wire transfers, and check fees. The revenue related to deposit fees is recognized at the time the performance obligation is satisfied.

•

Insurance Commissions - The Company’s insurance agency, IF Insurance Agency, receives commissions on premiums of new and renewed business policies. IF Insurance Agency records commission revenue on direct bill policies as the cash is received. For agency bill policies, IF Insurance Agency retains its commission portion of the customer premium payment and remits the balance to the carrier. In both cases, the carrier holds the performance obligation.

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•

Brokerage Commissions - The primary brokerage revenue is recorded at the beginning of each quarter through billing to customers based on the account asset size on the last day of the previous quarter. If a withdrawal of funds takes place, a prorated refund may occur; this is reflected within the same quarter as the original billing occurred. All performance obligations are met within the same quarter that the revenue is recorded.

•

Other - The Company generates revenue through service charges from the use of its ATM machines and interchange income from the use of Company issued credit and debit cards. The revenue is recognized at the time the service is used, and the performance obligation is satisfied.

Segment Reporting

The Company operates as a single segment entity for financial reporting purposes and has adopted ASU

2023-07

during the fiscal year ended June 30, 2025. The Chief Executive Officer, Walter H. Hasselbring, III, serves as the Company’s chief operating decision maker (“CODM”). The CODM allocates resources and assesses the performance of the Company based on the consolidated performance, excluding all significant intercompany balances and transactions, of the Company and its wholly owned subsidiaries and does not significantly utilize disaggregated segment financial information for decision making and resource allocation. Management has reviewed the requirements of ASU

2023-07

and has determined that no additional segment disclosures are required. Specifically,

•

the Company does not use the tracked performance on the disaggregated segment level for decision-making or resource allocation purposes,

•

no significant segment-specific expenses or performance metrics are used internally for decision-making or resource allocation purposes, and

•

the level of financial consolidation presented in these financial statements aligns with the CODM’s internal reporting and decision-making process.

Based on this assessment, the Company’s financial statement disclosures fully comply with ASC

2023-07,

and no additional qualitative segment disclosures are necessary.

Note 2:

New Accounting Pronouncements

In December 2023, the FASB issued ASU

2023-09,

Income Tax (Topic 740):

Improvements to Income Tax Disclosures.

The amendments expand the disclosure requirements of income taxes, primarily related to the income tax rate reconciliation and income taxes paid. The guidance also eliminates certain existing disclosure requirements related to uncertain tax positions and unrecognized deferred income tax liabilities. The amendments are effective for fiscal years beginning after December 15, 2024, and interim periods within fiscal years beginning after December 15, 2025. Earlier adoption is permitted. The adoption of the guidance is not expected to have a material impact on the Company’s consolidated financial statements.

Note 3:

Stock-based Compensation

In connection with the conversion to stock form, the Association established an employee stock ownership plan (“ESOP”) for the exclusive benefit of eligible employees (all salaried employees who have completed at least

1,000

hours of service in a twelve-month period and have attained the age of 21 ). The ESOP borrowed funds from the Company in an amount sufficient to purchase 384,900 shares (approximately 8 % of the common stock issued in the stock offering). The loan is

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secured by the shares purchased and will be repaid by the ESOP with funds from contributions made by the Association and dividends received by the ESOP. Contributions will be applied to repay interest on the loan first, and then the remainder will be applied to principal. The loan is expected to be repaid over a period of up to 20 years. Shares purchased with the loan proceeds are held in a suspense account for allocation among participants as the loan is repaid. Contributions to the ESOP and shares released from the suspense account are allocated among participants in proportion to their compensation, relative to total compensation of all active participants. Participants will vest 100 % in their accrued benefits under the employee stock ownership plan after

six

vesting years, with prorated vesting in years

two

through

five

. Vesting is accelerated upon retirement, death or disability of the participant or a change in control of the Association. Forfeitures will be reallocated to remaining plan participants. Benefits may be payable upon retirement, death, disability, separation from service, or termination of the ESOP. Since the Association’s annual contributions are discretionary, benefits payable under the ESOP cannot be estimated. Participants receive the shares at the end of employment.

The Company is accounting for its ESOP in accordance with ASC Topic 718,

Employers Accounting for Employee Stock Ownership Plans

. Accordingly, the debt of the ESOP is eliminated in consolidation and the shares pledged as collateral are reported as unearned ESOP shares in the consolidated balance sheets. Contributions to the ESOP shall be sufficient to pay principal and interest currently due under the loan agreement. As shares are committed to be released from collateral, the Company reports compensation expense equal to the average market price of the shares for the respective period, and the shares become outstanding for earnings per share computations. Dividends, if any, on unallocated ESOP shares are recorded as a reduction of debt and accrued interest.

A summary of ESOP shares at September 30, 2025 and June 30, 2025 are as follows (dollars in thousands):


	September 30, 2025		June 30, 2025
Allocated shares		198,743		179,498
Shares committed for release		4,811		19,245
Unearned shares		110,659		115,470

Total ESOP shares		314,213		314,213

Fair value of unearned ESOP shares (1)	$	2,864	$	2,812

(1)	Based on closing price of $ 25.88 and $ 24.35 per share on September 30, 2025, and June 30, 2025, respectively.

During the three months ended September 30, 2025 and 2024, no ESOP shares were paid to ESOP participants due to separation from service or transferred out as a result of participant diversification.

The IF Bancorp, Inc. 2012 Equity Incentive Plan (the “Equity Incentive Plan”) was approved by stockholders in 2012 for a

ten-year

period which ended in November 2022. The purpose of the Equity Incentive Plan was to promote the long-term financial success of the Company and its Subsidiaries by providing a means to attract, retain and reward individuals who contribute to such success and to further align their interests with those of the Company’s stockholders. The Equity Incentive Plan authorized the issuance or delivery to participants of up to 673,575 shares of the Company common stock pursuant to grants of incentive and

non-qualified

stock options, restricted stock awards and restricted stock unit awards, provided that the maximum number of shares of Company common stock that may be delivered pursuant to the exercise of stock options (all of which may be granted as incentive stock options) was 481,125 and the maximum number of shares of Company stock that may be issued as restricted stock awards or restricted stock units was 192,450 . This plan was replaced by the 2022 Equity Incentive Plan when the stockholders approved the new plan on November 21, 2022. The new plan authorizes the issuance or delivery to participants of up to 264,850 shares of the Company common stock pursuant to grants of incentive and

non-qualified

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On September 9, 2022, 53,000 shares of restricted stock were awarded to senior officers and directors of the Association. These shares of restricted stock will vest in equal installments over 5 years, starting in September 2023. No shares have been granted from the 2022 Equity Incentive Plan as of September 30, 2025, so there are 211,880 shares of restricted stock and 52,970 stock option shares available for future grants under this plan.

No stock options were outstanding at September 30, 2025 or June 30, 2025. No stock options were granted or vested during the three months ended September 30, 2025 and 2024.

The following table summarizes

non-vested

restricted stock activity for the three months ended September 30, 2025:


	Shares		Weighted-Average Grant- Date Fair Value
Balance, June 30, 2025		29,100	$	19.10
Granted		—		—
Forfeited		—		—
Earned and issued		9,700		19.10

Balance, September 30, 2025		19,400	$	19.10

The fair value of the restricted stock awards is amortized to compensation expense over the vesting period and is based on the market price of the Company’s common stock at the date of grant multiplied by the number of shares granted that are expected to vest. At the date of grant the par value of the shares granted was recorded in equity as a credit to common stock and a debit to

paid-in

capital. Stock-based compensation expense and related tax benefit for restricted stock, which was recognized in

non-interest

expense, was $ 46,000 and $ 13,000 , respectively, for the three months ended September 30, 2025, and was $ 49,000 and $ 14,000 , respectively, for the three months ended September 30, 2024. Unrecognized compensation expense for

non-vested

restricted stock awards was $ 355,000 and is expected to be recognized over 1.9 years with a corresponding credit to

paid-in

capital.

Note 4:

Earnings Per Common Share (“EPS”)

Basic and diluted earnings per common share are presented for the three-month periods ended September 30, 2025 and 2024. The factors used in the earnings per common share computation are as follows:


	Three Months Ended			Three Months Ended
	September 30, 2025			September 30, 2024
Net income	$	1,392		$	633
Basic weighted average shares outstanding		3,351,526			3,353,026
Less: Average unallocated ESOP shares		( 113,064	)		( 132,309	)

Basic average shares outstanding		3,238,462			3,220,717

Diluted effect of restricted stock awards and stock options		—			—

Diluted average shares outstanding		3,238,462			3,220,717

Basic earnings per common share	$	0.43		$	0.20

Diluted earnings per common share	$	0.43		$	0.20

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Note 5:

Securities

The amortized cost and approximate fair value of securities, together with gross unrealized gains and losses, on securities are as follows:


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available-for-sale securities:
September 30, 2025:
U.S. Government and federal agency	$	993	$	—	$	( 77	)	$	916
Mortgage-backed:
GSE residential		193,235		221		( 19,111	)		174,345
Small Business Administration		14,473		—		( 1,658	)		12,815
State and political subdivisions		1,748		—		—			1,748

	$	210,449	$	221	$	( 20,846	)	$	189,824

June 30, 2025:
U.S. Government and federal agency		1,986		—		( 174	)		1,812
Mortgage-backed:
GSE residential		192,261		70		( 21,252	)		171,079
Small Business Administration		14,894		—		( 1,780	)		13,114
State and political subdivisions		1,748		—		—			1,748

	$	210,889	$	70	$	( 23,206	)	$	187,753

Available for sale securities (“AFS”), which include any security for which the Company has no immediate plan to sell but which may be sold in the future, are carried at fair value. Unrealized gains and losses, net of tax, are reported in accumulated other comprehensive loss, a component of stockholders’ equity. All securities have been classified as available for sale.

Premiums and discounts on debt securities are amortized or accreted as adjustments to income over the estimated life of the security using the level yield method or to the earlier of call or maturity date. Realized gains or losses on the sale of securities is based on the specific identification method. The fair value of securities is based on quoted market prices or dealer quotes. If a quoted market price is not available, fair value is estimated using quoted market prices for similar securities.

For AFS securities with fair value less than amortized cost that management has no intent to sell and believes that it more likely than not will not be required to sell prior to recovery, only the credit loss component of the impairment is recognized in earnings, while the noncredit loss is recognized in accumulated other comprehensive loss. The credit loss component recognized in earnings is identified as the amount of principal cash flows not expected to be received over the remaining term of the security as projected based on cash flow projections, and is recorded to the allowance for credit losses (“ACL”) on investments, by a charge to provision for credit losses.

Accrued

interest receivable of $ 483 ,000 is included in the accrued interest receivable on the Company’s Consolidated Balance Sheets. The total amount of accrued interest is excluded from the estimate of credit losses. Both the ACL and the adjustment to net income may be reversed if conditions change.

The Company evaluates impaired AFS securities at the individual level on a quarterly basis, and will consider such factors including, but not limited to: the extent to which the fair value of the security is less than the amortized cost basis; adverse conditions specifically related to the security, an industry, or geographic area; the payment structure of the security and likelihood of the issuer to be able to make payments that may increase in the future; failure of the issuer to make scheduled interest or principal payments; any changes to the rating of the security by a rating agency; and the ability and intent to hold the security until maturity. A qualitative determination as to whether any portion of the impairment is attributable to credit risk is acceptable. There were no credit related factors underlying unrealized losses on AFS securities at September 30, 2025, and June 30, 2025.

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Changes in the ACL are recorded as expense. Losses are charged against the ACL when management believes the collectability of an AFS debt security is confirmed or when either of the criteria regarding intent or requirement to sell is met.

The Company did not hold securities of any one issuer at September 30, 2025 or June 30, 2025 with a book value that exceeded 10 % of the Company’s total equity except for mortgage-backed government-sponsored enterprise (“GSE”) residential securities and Small Business Administration securities with an amortized cost of approximately $ 193,235,000 and $ 14,473,000 , respectively, and a market value of approximately $ 174,345,000 and $ 12,815,000 , respectively, at September 30, 2025, and with an amortized cost of approximately $ 192,261,000 and $ 14,894,000 respectively, and a market value of approximately $ 171,079,000 and $ 13,114,000 , respectively at June 30, 2025.

All mortgage-backed securities at September 30, 2025, and June 30, 2025 were issued by GSEs.

The amortized cost and fair value of

available-for-sale

securities at September 30, 2025, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.


	Available-for-sale Securities
	Amortized Cost		Fair Value
Within one year	$	—	$	—
One to five years		2,642		2,536
Five to ten years		5,949		5,603
After ten years		8,623		7,340

		17,214		15,479
Mortgage-backed securities		193,235		174,345

Totals	$	210,449	$	189,824

The carrying value of securities pledged as collateral to secure public deposits and for other purposes was $ 70,859,000 and $ 102,268,000 as of September 30, 2025 and June 30, 2025, respectively.

The carrying value of securities sold under agreement to repurchase amounted to $ 18.1 million at September 30, 2025 and $ 18.8 million at June 30, 2025. At September 30, 2025, all $ 18.1 million of our repurchase agreements had an overnight maturity, and all were secured by U.S. Government, federal agency and GSE securities. The right of offset for a repurchase agreement resembles a secured borrowing, whereby the collateral pledged by the Company would be used to settle the fair value of the repurchase agreement should the Company be in default. The collateral is held by the Company in a segregated custodial account. In the event the collateral fair value falls below stipulated levels, the Company will pledge additional securities. The Company closely monitors collateral levels to ensure adequate levels are maintained.

Gross gains of $ 0 and $ 30,000 and gross losses of $ 114,000 and $ 101,000 resulting from sales of

available-for-sale

securities were realized for the three months ended September 30, 2025, and 2024, respectively. The tax credit applicable to these net realized losses amounted to approximately $ 32,000 and $ 20,000 for the three months ended September 30, 2025, and 2024, respectively.

Certain investments in debt securities are reported in the condensed consolidated financial statements at an amount less than their historical cost. Total fair value of these investments at September 30, 2025 and June 30, 2025, was $ 170,989,000 and $ 173,405,000 , respectively, which is approximately 90 % and 92 % of the Company’s

available-for-sale

investment portfolio.

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The following table shows the Company’s gross unrealized investment losses and the fair value of the Company’s investments, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at September 30, 2025 and June 30, 2025:


	Less Than 12 Months					12 Months or More					Total
Description of Securities	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
September 30, 2025:
U.S. Government and federal agency	$	—	$	—		$	916	$	( 77	)	$	916	$	( 77	)
Mortgage-backed:
GSE residential		8,387		( 68	)		148,871		( 19,043	)		157,258		( 19,111	)
Small Business Administration		1,220		( 17	)		11,595		( 1,641	)		12,815		( 1,658	)

Total	$	9,607	$	( 85	)	$	161,382	$	( 20,761	)	$	170,989	$	( 20,846	)

June 30, 2025:
U.S. Government and federal agency		—		—			1,812		( 174	)		1,812		( 174	)
Mortgage-backed:
GSE residential		7,887		( 100	)		150,592		( 21,152	)		158,479		( 21,252	)
Small Business Administration		1,242		( 13	)		11,872		( 1,767	)		13,114		( 1,780	)

Total	$	9,129	$	( 113	)	$	164,276	$	( 23,093	)	$	173,405	$	( 23,206	)

As of September 30, 2025, the Company’s

available-for-sale

securities portfolio consisted of 183 securities, of which 166 were in an unrealized loss position.

The unrealized losses on the Company’s investment in U.S. Government and federal agency, mortgage-backed GSEs, and Small Business Administration securities at September 30, 2025 and June 30, 2025, were mostly the result of a decline in market value that was attributable to changes in interest rates and not credit quality, and the Company does not consider those investments to need an allowance for credit losses at September 30, 2025 and June 30, 2025.

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Note 6:

Loans and Allowance for Credit Losses


	September 30, 2025			June 30, 2025
Segments of loans include:
Real estate loans:
One- to four-family	$	181,617		$	178,979
Multi-family		118,318			126,127
Commercial		196,022			201,550
Home equity lines of credit		10,359			10,487
Construction		20,015			22,927
Commercial		93,243			93,961
Consumer		5,864			5,855

Total loans		625,438			639,886
Less:
Unearned fees and discounts, net		( 335	)		( 344	)
Allowance for credit losses		6,491			6,627

Loans, net	$	619,282		$	633,603

The Company had three loans totaling $ 353,500 held for sale included in

one-

to four-family real estate loans as of September 30, 2025 and no loans held for sale at June 30, 2025.

The Company believes that sound loans are a necessary and desirable means of employing funds available for investment. Recognizing the Company’s obligations to its depositors and to the communities it serves, authorized personnel are expected to seek to develop and make sound, profitable loans that resources permit and that opportunity affords. The Company maintains lending policies and procedures in place designed to focus our lending efforts on the types, locations, and duration of loans most appropriate for our business model and markets. The Company’s principal lending activity is the origination of

one-

to four-family residential mortgage loans but also includes multi-family loans, commercial real estate loans, home equity lines of credits, commercial business loans, consumer (consisting primarily of automobile loans), and, to a much lesser extent, construction loans and land loans. The primary lending market includes the Illinois counties of Vermilion, Iroquois, Champaign and Kankakee, as well as the adjacent counties in Illinois and Indiana. The Company also has a loan production office in Osage Beach, Missouri, which serves the Missouri counties of Camden, Miller, and Morgan. Generally, loans are collateralized by assets, primarily real estate, of the borrowers and guaranteed by individuals. The loans are expected to be repaid from cash flows of the borrowers or from proceeds from the sale of selected assets of the borrowers.

Management reviews and approves the Company’s lending policies and procedures on a routine basis. Management routinely (at least quarterly) reviews our allowance for credit losses and reports related to loan production, loan quality, concentrations of credit, loan delinquencies and

non-performing

and potential problem loans. Our underwriting standards are designed to encourage relationship banking rather than transactional banking. Relationship banking implies a primary banking relationship with the borrower that includes, at a minimum, an active deposit banking relationship in addition to the lending relationship. The integrity and character of the borrower are significant factors in our loan underwriting. As a part of underwriting, tangible positive or negative evidence of the borrower’s integrity and character are sought out. Additional significant underwriting factors beyond location, duration, the sound and profitable cash flow basis underlying the loan and the borrower’s character are the quality of the borrower’s financial history, the liquidity of the underlying collateral and the reliability of the valuation of the underlying collateral.

The Company’s policies and loan approval limits are established by the Board of Directors. The structure of the Company’s loan approval process is based on progressively larger lending authorities granted to loan officers, loan committees, and ultimately the Board of Directors through its Operating Committee, consisting of the Chairman and up to four other Board members. At no time is a borrower’s total borrowing relationship to exceed our regulatory lending limit. Loans to related parties, including executive officers and the Company’s directors, are reviewed for compliance with regulatory guidelines and the Board of Directors at least annually.

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The Company conducts internal loan reviews that validate the loans against the Company’s loan policy quarterly for mortgage, consumer, and small commercial loans on a sample basis, and all larger commercial loans on an annual basis. The Company also receives independent loan reviews performed by a third party on larger commercial loans to be performed semi-annually. In addition to compliance with our policy, the third-party loan review process reviews the risk assessments made by our credit department, lenders and loan committees. Results of these reviews are presented to management and the Board of Directors.

The Company’s lending can be summarized into six primary areas:

one-

to four-family residential mortgage loans, commercial real estate and multi-family real estate loans, home equity lines of credit, real estate construction, commercial business loans, and consumer loans.

One-

to four-family Residential Mortgage Loans

The Company offers

one-

to four-family residential mortgage loans that conform to Fannie Mae and Freddie Mac underwriting standards (conforming loans) as well as

non-conforming

loans. The Company has sold a substantial portion of the fixed-rate

one-

to four-family residential mortgage loans with terms of 15 years or greater. Generally, the Company retains fixed-rate

one-

to four-family residential mortgage loans with terms of less than 15 years, although this has represented a small percentage of the fixed-rate loans originated in recent years due to the favorable long-term rates for borrowers.

The Company also offers United States Department of Agriculture (USDA Rural Development), Federal Housing Administration and Veterans Affairs loans that are originated through a nationwide wholesale lender.

In addition, the Company also offers home equity loans that are secured by a second mortgage on the borrower’s primary or secondary residence. Home equity loans are generally underwritten using the same criteria used to underwrite

one-

to four-family residential mortgage loans.

one-

to four-family residential mortgage and home equity loan underwriting are subject to specific regulations, the Company typically underwrites its

one-

to four-family residential mortgage and home equity loans to conform to widely accepted standards. Several factors are considered in underwriting including the value of the underlying real estate and the

debt-to-income

ratio and credit history of the borrower.

Commercial Real Estate and Multi-Family Real Estate Loans

Commercial real estate mortgage loans are primarily secured by owner-occupied businesses, retail rentals, churches, office buildings, and farm loans secured by real estate. In underwriting commercial real estate and multi-family real estate loans, the Company considers a number of factors, which include the projected net cash flow to the loan’s debt service requirement, the age and condition of the collateral, the financial resources and income level of the borrower and the borrower’s experience in owning or managing similar properties. Personal guarantees are typically obtained from commercial real estate and multi-family real estate borrowers. In addition, the borrower’s financial information on such loans is monitored on an ongoing basis by requiring periodic financial statement updates. The repayment of these loans is primarily dependent on the cash flows of the underlying property. However, the commercial real estate loan generally must be supported by an adequate underlying collateral value. The performance and the value of the underlying property may be adversely affected by economic factors or geographical and/or industry specific factors. These loans are subject to other industry guidelines that are closely monitored by the Company.

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Home Equity Lines of Credit

In addition to traditional

one-

to four-family residential mortgage loans and home equity loans, the Company offers home equity lines of credit that are secured by the borrower’s primary or secondary residence. Home equity lines of credit are generally underwritten using the same criteria used to underwrite

one-

to four-family residential mortgage loans. As home equity lines of credit underwriting is subject to specific regulations, the Company typically underwrites its home equity lines of credit to conform to widely accepted standards. Several factors are considered in underwriting including the value of the underlying real estate and the

debt-to-income

ratio and credit history of the borrower.

Commercial Business Loans

The Company originates commercial

non-mortgage

business (term) loans and adjustable lines of credit. These loans are generally originated to small- and

medium-sized

companies in the Company’s primary market area. Commercial business loans are generally used for working capital purposes or for acquiring equipment, inventory, or furniture, and are primarily secured by business assets other than real estate, such as business equipment and inventory, accounts receivable or stock. The Company also offers agriculture loans that are not secured by real estate.

The commercial business loan portfolio consists primarily of secured loans. When making commercial business loans, the Company considers the financial statements, lending history and debt service capabilities of the borrower, the projected cash flows of the business and the value of any collateral. The cash flows of the underlying borrower, however, may not perform consistently with historical or projected information. Further, the collateral securing loans may fluctuate in value due to individual economic or other factors. Loans are typically guaranteed by the principals of the borrower. The Company has established minimum standards and underwriting guidelines for all commercial loan types.

Real Estate Construction Loans

The Company originates construction loans for

one-

to four-family residential properties and commercial real estate properties, including multi-family properties. The Company generally requires that a commitment for permanent financing be in place prior to closing the construction loan. The repayment of these loans is typically through permanent financing following completion of the construction. Real estate construction loans are inherently riskier than loans on completed properties as the unimproved nature and the financial risks of construction significantly enhance the risks of commercial real estate loans. These loans are closely monitored and subject to other industry guidelines.

Consumer Loans

Consumer loans consist of installment loans to individuals, primarily automotive loans. These loans are underwritten utilizing the borrower’s financial history, including the Fair Isaac Corporation (“FICO”)

credit scoring and information as to the underlying collateral. Repayment is expected from the cash flow of the borrower. Consumer loans may be underwritten with terms up to seven years, fully amortized. Unsecured loans are limited to twelve months.

Loan-to-value

ratios vary based on the type of collateral. The Company has established minimum standards and underwriting guidelines for all consumer loan collateral types.

Loan Concentrations

The loan portfolio includes a concentration of loans secured by commercial real estate properties, including real estate construction loans, amounting to $ 326,254,000 and $ 339,861,000 as of September 30, 2025 and June 30, 2025, respectively. Generally, these loans are collateralized by multi-family and nonresidential properties. The loans are expected to be repaid from cash flows or from proceeds from the sale of the properties of the borrower.

Purchased Loans and Loan Participations

The Company’s loans receivable included purchased loans of $ 226,000 and $ 198,000 at September 30, 2025 and June 30, 2025, respectively. All these purchased loans are secured by single family homes located out of our primary market area, primarily in the Midwest. The Company’s loans receivable also included commercial loan participations of $ 47,888,000 and $ 55,849,000 at September 30, 2025 and June 30, 2025, respectively, of which $ 44,681,000 and $ 38,860,000 , at September 30, 2025 and June 30, 2025 were outside our primary market area. These participation loans are secured by real estate and other business assets.

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Allowance for Credit Losses

The following tables present the activity in the allowance for credit losses for the three-month periods ended September 30, 2025 and 2024 and the year ended June 30, 2025:


	Three Months Ended September 30, 2025 Real Estate Loans
	One- to Four- Family		Multi-Family			Commercial			Home Equity Lines of Credit
Allowance for credit losses:
Balance, beginning of period	$	1,475	$	1,513		$	2,252		$	144
Provision (credit) charged to expense		75		( 153	)		( 135	)		( 8	)
Losses charged off		—		—			—			—
Recoveries		2		—			—			—

Balance, end of period	$	1,552	$	1,360		$	2,117		$	136

Loans:
Ending balance	$	181,617	$	118,318		$	196,022		$	10,359


	Three Months Ended September 30, 2025 (Continued)
	Construction			Commercial			Consumer			Total
Allowance for credit losses:
Balance, beginning of period	$	206		$	985		$	52		$	6,627
Provision (credit) charged to expense		( 26	)		174			8			( 65	)
Losses charged off		—			( 70	)		( 9	)		( 79	)
Recoveries		—			2			4			8

Balance, end of period	$	180		$	1,091		$	55		$	6,491

Loans:
Ending balance	$	20,015		$	93,243		$	5,864		$	625,438


	Year Ended June 30, 2025 Real Estate Loans
	One- to Four- Family			Multi-Family			Commercial			Home Equity Lines of Credit
Allowance for credit losses:
Balance, beginning of period	$	1,774		$	1,764		$	2,358		$	148
Provision (credit) charged to expense		( 222	)		( 121	)		( 106	)		( 4	)
Losses charged off		( 79	)		( 350	)		—			—
Recoveries		2			220			—			—

Balance, end of period	$	1,475		$	1,513		$	2,252		$	144

Loans:
Ending balance	$	178,979		$	126,127		$	201,550		$	10,487

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	Year Ended June 30, 2025 (Continued)
	Construction			Commercial			Consumer			Total
Allowance for credit losses:
Balance, beginning of period	$	337		$	1,053		$	65		$	7,499
Provision (credit) charged to expense		( 131	)		( 131	)		37			( 678	)
Losses charged off		—			( 50	)		( 70	)		( 549	)
Recoveries		—			113			20			355

Balance, end of period	$	206		$	985		$	52		$	6,627

Loans:
Ending balance	$	22,927		$	93,961		$	5,855		$	639,886


	Three Months Ended September 30, 2024
	Real Estate Loans
	One- to Four- Family			Multi-Family			Commercial		Home Equity Lines of Credit
Allowance for credit losses:
Balance, beginning of period	$	1,774		$	1,764		$	2,358	$	148
Provision (credit) charged to expense		( 147	)		348			4		( 1	)
Losses charged off		—			( 350	)		—		—
Recoveries		1			—			—		—

Balance, end of period	$	1,628		$	1,762		$	2,362	$	147

Loans:
Ending balance	$	176,334		$	125,906		$	205,103	$	9,927


	Three Months Ended September 30, 2024 (Continued)
	Construction			Commercial			Consumer			Total
Allowance for credit losses:
Balance, beginning of period	$	337		$	1,053		$	65		$	7,499
Provision (credit) charged to expense		( 59	)		231			1			377
Losses charged off		—			( 50	)		( 9	)		( 409	)
Recoveries		—			2			2			5

Balance, end of period	$	278		$	1,236		$	59		$	7,472

Loans:
Ending balance	$	30,839		$	98,894		$	7,186		$	654,189

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Management’s opinion as to the ultimate collectability of loans is subject to estimates regarding future cash flows from operations and the value of property, real and personal, pledged as collateral. These estimates are affected by changing economic conditions and the economic prospects of borrowers.

The allowance for credit losses represents the Company’s best estimate of the reserve necessary to adequately account for probable losses expected over the remaining contractual life of the assets. The provision for credit losses is the charge against current earnings that is determined by the Company as the amount needed to maintain an adequate allowance for credit losses. In determining the adequacy of the allowance for credit losses, and therefore the provision to be charged to current earnings, the Company relies on a sound credit review and approval process. The review process is directed by the overall lending policy and is intended to identify, at the earliest possible stage, borrowers who might be facing financial difficulty.

The Company utilizes the CECL cohort methodology analysis which relies on segmenting the loan portfolio into pools with similar risks, tracking the performance of the pools over time, and using the data to determine pool loss experience.

The ACL is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans and is established through provision for credit losses charged to current earnings. The ACL is increased by the provision for losses on loans charged to expense and reduced by loans charged off, net of recoveries. Loans are charged off in the period deemed uncollectible, based on management’s analysis of expected cash flows (for

non-collateral

dependent loans) or collateral value (for collateral-dependent loans). Subsequent recoveries of loans previously charged off, if any, are credited to the allowance when received.

Management estimates the ACL balance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Adjustments may be made to historical loss information for differences identified in current loan-specific risk characteristics, such as differences in underwriting standards or terms; lending review systems; experience, ability, or depth of lending management and staff; portfolio growth and mix; delinquency levels and trends; as well as for changes in environmental conditions, such as changes in economic activity or employment, industry economic conditions, property values, or other relevant factors.

The allowance for credit losses on most loans is measured on a collective (pool) basis for loans with similar risk characteristics. The Company estimates the appropriate level of allowance for credit losses for specifically identified loans by evaluating them individually. Accrued interest receivable of $ 3.2 million is included in the accrued interest receivable on the Company’s Consolidated Balance Sheets. The total amount of the accrued interest is excluded from the estimate of credit losses. Both the ACL and the adjustments to net income may be reversed if conditions change.

The specific allowance for collateral-dependent loans that are evaluated separately is measured by determining the fair value of the collateral adjusted for market conditions and selling expense. Factors used in identifying a specific problem loan include: (1) the strength of the customer’s personal or business cash flows; (2) the availability of other sources of repayment; (3) the amount due or past due; (4) the type and value of collateral; (5) the strength of the collateral position; (6) the estimated cost to sell the collateral; and (7) the borrower’s effort to cure the delinquency. In addition, for loans secured by real estate, the Company also considers the extent of any past due and unpaid property taxes applicable to the property serving as collateral on the mortgage.

The Company establishes a general allowance for loans that are not individually evaluated to recognize the inherent losses associated with lending activities, but which, unlike specific allowances, has not been allocated to particular problem assets. The general valuation allowance is determined by segmenting the loan portfolio into pools with similar risks and collecting data to determine pool loss experience. Factors considered by the Company in evaluating the overall adequacy of the allowance include historical net loan losses, the level and composition of nonaccrual, past due and loan modifications for borrowers with financial difficulties, trends in volumes and terms of loans, effects of changes in risk selection and underwriting standards or lending practices, lending staff changes, concentrations of credit, industry conditions and the current economic conditions in the region where the Company operates. In addition, a forecast, using reasonable and supportable future conditions, is prepared that is used to estimate expected changes to existing and historical conditions in the current period.

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The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. All loans are graded at inception of the loan. Subsequently, analyses are performed on an annual basis and grade changes are made as necessary. Interim grade reviews may take place if the circumstances of the borrower warrant a timelier review. The Company utilizes an internal asset classification system as a means of reporting problem and potential problem loans. Under the Company’s risk rating system, the Company classifies problem and potential problem loans as “Watch,” “Substandard,” “Doubtful,” and “Loss.” The Company uses the following definitions for risk ratings:

Pass –

Loans classified as pass are well protected by the ability of the borrower to pay or by the value of the asset or underlying collateral.

Watch –

Loans classified as watch have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the Company’s credit position at some future date.

Substandard –

Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of any pledged collateral. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

Doubtful –

Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable.

Loss –

Loans classified as loss are the portion of the loan that is considered uncollectible so that its continuance as an asset is not warranted. The amount of the loss determined will be charged off.

Risk characteristics applicable to each segment of the loan portfolio are described as follows.

Residential

One-

to Four-Family and Equity Lines of Credit Real Estate:

The residential

one-

to four-family real estate loans are generally secured by owner-occupied

one-

to four-family residences. Repayment of these loans is primarily dependent on the personal income and credit rating of the borrowers. Credit risk in these loans can be impacted by economic conditions within the Company’s market areas that might impact either property values or a borrower’s personal income. Risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers.

Commercial and Multi-family Real Estate:

Commercial and multi-family real estate loans typically involve larger principal amounts, and repayment of these loans is generally dependent on the successful operations of the property securing the loan or the business conducted on the property securing the loan. These loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Credit risk in these loans may be impacted by the creditworthiness of a borrower, property values and the local economies in the Company’s market areas.

Construction Real Estate:

Construction real estate loans are usually based upon estimates of costs and estimated value of the completed project and include independent appraisal reviews and a financial analysis of the developers and property owners. Sources of repayment of these loans may include permanent loans, sales of developed property, or an interim loan commitment from the Company until permanent financing is obtained. These loans are considered to be higher risk than other real estate loans due to their ultimate repayment being sensitive to interest rate changes, general economic conditions and the availability of long-term financing. Credit risk in these loans may be impacted by the creditworthiness of a borrower, property values and the local economies in the Company’s market areas.

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Commercial Business:

The commercial portfolio includes loans to commercial customers for use in financing working capital needs, equipment purchases and expansions. The loans in this category are repaid primarily from the cash flow of a borrower’s principal business operation. Credit risk in these loans is driven by creditworthiness of a borrower and the economic conditions that impact the cash flow stability from business operations.

Consumer:

The consumer loan portfolio consists of various term loans such as automobile loans and loans for other personal purposes. Repayment for these types of loans will come from a borrower’s income sources that are typically independent of the loan purpose. Credit risk is driven by consumer economic factors (such as unemployment and general economic conditions in the Company’s market area) and the creditworthiness of a borrower.

The following tables present the credit risk profile of the Company’s loan portfolio based on risk rating category and calendar year of origination as of both September 30, 2025 and June 30, 2025 (in thousands):


September 30, 2025
Risk Rating	2025			2024			2023		2022		2021		Prior Years		Total
One- to Four-Family
Pass	$	25,196		$	23,827		$	30,970	$	43,951	$	18,951	$	37,950	$	180,845
Watch		—			34			274		—		—		40		348
Substandard		—			254			—		3		5		162		424

Total	$	25,196		$	24,115		$	31,244	$	43,954	$	18,956	$	38,152	$	181,617

Current period recoveries	$	—		$	—		$	—	$	—	$	—	$	2	$	2
Multi-Family
Pass	$	7,326		$	15,562		$	10,322	$	38,340	$	19,684	$	26,861	$	118,095
Watch		—			—			—		—		—		—		—
Substandard		—			—			—		—		—		223		223

Total	$	7,326		$	15,562		$	10,322	$	38,340	$	19,684	$	27,084	$	118,318

Commercial Real Estate
Pass	$	10,943		$	14,199		$	25,985	$	49,163	$	28,706	$	64,903	$	193,899
Watch		—			—			—		170		—		—		170
Substandard		—			123			—		503		829		498		1,953

Total	$	10,943		$	14,322		$	25,985	$	49,836	$	29,535	$	65,401	$	196,022

Home Equity Line of Credit
Pass	$	1,778		$	2,570		$	1,788	$	1,512	$	1,208	$	1,503	$	10,359
Watch		—			—			—		—		—		—		—
Substandard		—			—			—		—		—		—		—

Total	$	1,778		$	2,570		$	1,788	$	1,512	$	1,208	$	1,503	$	10,359

Construction
Pass	$	6,367		$	1,476		$	12,050	$	122	$	—	$	—	$	20,015
Watch		—			—			—		—		—		—		—
Substandard		—			—			—		—		—		—		—

Total	$	6,367		$	1,476		$	12,050	$	122	$	—	$	—	$	20,015

Commercial Business
Pass	$	14,119		$	20,747		$	31,849	$	3,249	$	5,432	$	14,403	$	89,799
Watch		—			—			—		49		—		17		66
Substandard		—			—			3,067		—		100		211		3,378

Total	$	14,119		$	20,747		$	34,916	$	3,298	$	5,532	$	14,631	$	93,243

Current period charge-offs	$	—		$	( 70	)	$	—	$	—	$	—	$	—	$	( 70	)
Current period recoveries	$	—		$	—		$	—	$	—	$	—	$	2	$	2
Consumer
Pass	$	2,184		$	1,376		$	1,207	$	775	$	230	$	77	$	5,849
Watch		—			—			—		—		—		—		—
Substandard		—			—			15		—		—		—		15

Total	$	2,184		$	1,376		$	1,222	$	775	$	230	$	77	$	5,864

Current period charge-offs	$	( 9	)	$	—		$	—	$	—	$	—	$	—	$	( 9	)
Current period recoveries	$	4		$	—		$	—	$	—	$	—	$	—	$	4
Total Loans
Pass	$	67,913		$	79,757		$	114,171	$	137,112	$	74,211	$	145,697	$	618,861
Watch		—			34			274		219		—		57		584
Substandard		—			377			3,082		506		934		1,094		5,993

Total	$	67,913		$	80,168		$	117,527	$	137,837	$	75,145	$	146,848	$	625,438

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June 30, 2025
Risk Rating	2025			2024			2023		2022			2021		Prior Years			Total
One- to Four-Family
Pass	$	16,760		$	23,826		$	32,946	$	45,173		$	19,879	$	40,102		$	178,686
Watch		—			—			—		—			51		40			91
Substandard		—			—			—		3			5		194			202

Total	$	16,760		$	23,826		$	32,946	$	45,176		$	19,935	$	40,336		$	178,979

Current period charge-offs	$	—		$	—		$	—	$	—		$	—	$	( 79	)	$	( 79	)
Current period recoveries	$	—		$	—		$	—	$	—		$	—	$	2		$	2
Multi-Family
Pass	$	4,517		$	15,648		$	10,379	$	39,148		$	19,827	$	36,383		$	125,902
Watch		—			—			—		—			—		—			—
Substandard		—			—			—		—			—		225			225

Total	$	4,517		$	15,648		$	10,379	$	39,148		$	19,827	$	36,608		$	126,127

Current period charge-offs	$	—		$	( 350	)	$	—	$	—		$	—	$	—		$	( 350	)
Current period recoveries	$	—		$	220		$	—	$	—		$	—	$	—		$	220
Commercial Real Estate
Pass	$	9,649		$	14,724		$	26,490	$	50,471		$	28,946	$	69,788		$	200,068
Watch		—			—			—		—			135		—			135
Substandard		—			—			—		—			846		501			1,347

Total	$	9,649		$	14,724		$	26,490	$	50,471		$	29,927	$	70,289		$	201,550

Home Equity Line of Credit
Pass	$	1,004		$	2,884		$	1,851	$	1,616		$	1,230	$	1,902		$	10,487
Watch		—			—			—		—			—		—			—
Substandard		—			—			—		—			—		—			—

Total	$	1,004		$	2,884		$	1,851	$	1,616		$	1,230	$	1,902		$	10,487

Construction
Pass	$	2,165		$	8,574		$	12,062	$	123		$	—	$	3		$	22,927
Watch		—			—			—		—			—		—			—
Substandard		—			—			—		—			—		—			—

Total	$	2,165		$	8,574		$	12,062	$	123		$	—	$	3		$	22,927

Commercial Business
Pass	$	10,266		$	23,374		$	31,068	$	4,070		$	5,209	$	14,493		$	88,480
Watch		—			—			—		—			—		—			—
Substandard		—			—			3,355		3			197		1,926			5,481

Total	$	10,266		$	23,374		$	34,423	$	4,073		$	5,406	$	16,419		$	93,961

Current period charge-offs	$	—		$	( 50	)	$	—	$	—		$	—	$	—		$	( 50	)
Current period recoveries	$	—		$	50		$	—	$	—		$	—	$	63		$	113
Consumer
Pass	$	1,489		$	1,583		$	1,430	$	883		$	304	$	149		$	5,838
Watch		—			—			—		—			—		—			—
Substandard		—			—			17		—			—		—			17

Total	$	1,489		$	1,583		$	1,447	$	883		$	304	$	149		$	5,855

Current period charge-offs	$	( 28	)	$	( 41	)	$	—	$	( 1	)	$	—	$	—		$	( 70	)
Current period recoveries	$	7		$	13		$	—	$	—		$	—	$	—		$	20
Total Loans
Pass	$	45,850		$	90,613		$	116,226	$	141,484		$	75,395	$	162,820		$	632,388
Watch		—			—			—		—			186		40			226
Substandard		—			—			3,372		6			1,048		2,846			7,272

Total	$	45,850		$	90,613		$	119,598	$	141,490		$	76,629	$	165,706		$	639,886

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The following tables present the Company’s loan portfolio aging analysis:


	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Loans Receivable		Total Loans > 90 Days & Accruing
September 30, 2025:
Real estate loans:
One- to four-family	$	636	$	479	$	254	$	1,369	$	180,248	$	181,617	$	—
Multi-family		113		—		—		113		118,205		118,318		—
Commercial		583		415		626		1,624		194,398		196,022		—
Home equity lines of credit		14		—		—		14		10,345		10,359		—
Construction		—		—		—		—		20,015		20,015		—
Commercial		20		—		122		142		93,101		93,243		—
Consumer		8		62		—		70		5,794		5,864		—

Total	$	1,374	$	956	$	1,002	$	3,332	$	622,106	$	625,438	$	—


	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Loans Receivable		Total Loans > 90 Days & Accruing
June 30, 2025:
Real estate loans:
One- to four-family	$	866	$	307	$	29	$	1,202	$	177,777	$	178,979	$	29
Multi-family		25		—		—		25		126,102		126,127		—
Commercial		1,049		249		—		1,298		200,252		201,550		—
Home equity lines of credit		—		—		—		—		10,487		10,487		—
Construction		—		—		—		—		22,927		22,927		—
Commercial		256		300		—		556		93,405		93,961		—
Consumer		56		—		17		73		5,782		5,855		—

Total	$	2,252	$	856	$	46	$	3,154	$	636,732	$	639,886	$	29

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The allowance for credit losses on most loans is measured on a collective (pool) basis for loans with similar risk characteristics, while some loans are selected to be evaluated individually. At September 30, 2025, six loans were individually evaluated and three of these loans required specific reserves totaling $ 122,000 . At June 30, 2025, no

non-performing

loans were individually evaluated and no specific reserve was established.

The following table presents the amortized cost basis of loans on nonaccrual status and of nonaccrual loans individually evaluated for which no allowance was recorded at September 30, 2025 and June 30, 2025:


	September 30, 2025				June 30, 2025
	Nonaccrual with no Allowance for Credit Losses		Nonaccrual		Nonaccrual with no Allowance for Credit Losses		Nonaccrual
Mortgages on real estate:
One- to four-family	$	254	$	254	$	—	$	—
Multi-family		—		—		—		—
Commercial		626		626		—		—
Home equity lines of credit		—		—		—		—
Construction loans		—		—		—		—
Commercial business loans		—		—		—		—
Consumer loans		—		15		—		17

Total	$	880	$	895	$	—	$	17

Loan Modifications with Borrowers Experiencing Financial Difficulty

The Company modified no loans for borrowers experiencing financial difficulty in the three months ended September 30, 2025 or in the year ended June 30, 2025.

Loan Modifications with Defaults

The Company had no loan modifications for borrowers experiencing financial difficulty in default or in foreclosure as of September 30, 2025 or June 30, 2025. The Company defines a default as any loan that becomes 90 days or more past due.

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Management considers the level of defaults within the various portfolios, as well as the current adverse economic environment and negative outlook in the real estate and collateral markets when evaluating qualitative adjustments used to determine the adequacy of the allowance for credit losses. The Company believes the qualitative adjustments more accurately reflect collateral values considering the sales and economic conditions that the Company has recently observed.

The Company may obtain physical possession of real estate collateralizing a residential mortgage loan or home equity loan via foreclosure or

in-substance

repossession. As of September 30, 2025 and June 30, 2025, the carrying value of foreclosed residential real estate properties as a result of obtaining physical possession was $ 40,000 and $ 165,000 , respectively. As of September 30, 2025 and June 30, 2025, the Company had no residential mortgage loans or home equity loans collateralized by residential real estate property for which formal foreclosure proceedings were in process.

Note 7:

Federal Home Loan Bank Stock

Federal Home Loan Bank (“FHLB”) stock is a required investment for institutions that are members of the FHLB system. The required investment in the common stock is based on a predetermined formula. The Company owned approximately $ 4,844 ,000 and $ 5,174 ,000 of FHLB stock as of September 30, 2025 and June 30, 2025, respectively. The FHLB provides

liquidity

and funding through advances.

Note 8:

Federal Home Loan Bank Advances and Other Borrowings

The FHLB advances totaled $ 69,124 ,000 and $ 54,124 ,000 as of September 30, 2025 and June 30, 2025, respectively. The FHLB advances are secured by mortgage, multi-family, commercial real estate and home equity line of credit (“HELOC”) loans totaling $ 422,701 ,000 at September 30, 2025 and $ 415,223 ,000 at June 30, 2025, and are subject to restrictions or penalties in the event of prepayment. Interest rates on advances were from 0.00 to 4.93 percent with maturities from 2025 to 2032 at September 30, 2025, while interest rates on advances were from 0.00 to 4.93 percent with maturities from 2025 to 2032 at June 30, 2025. At September 30, 2025, the Company’s advances included 12 advances at a rate of 0 % totaling $ 3,624,000 as part of the FHLB Community Small Business Advance program.

Other borrowings include borrowings from the Federal Reserve Bank of Chicago. The Company utilizes the Federal Reserve Bank Discount Window periodically for overnight funding. At September 30, 2025, the collateral value of loans pledged at the Federal Reserve Bank was $ 33,802,000 at September 30, 2025 and $ 35,251,000 at June 30, 2025. The Company had no borrowings from the Federal Reserve Bank at September 30, 2025 or June 30, 2025.

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Note 9:

Accumulated Other Comprehensive Income (Loss)

The following tables present changes in accumulated other comprehensive income (loss), by component, net of tax, for the three months ended September 30, 2025 and 2024:


	Unrealized Gains and Losses on Available-for- Sale Securities			Defined Benefit Pension Items			Total
September 30, 2025:
Beginning balance	$	( 16,541	)	$	277		$	( 16,264	)
Other comprehensive income before reclassification		1,713			—			1,713
Amounts reclassified from accumulated other comprehensive loss		82			—			82
Net current period other comprehensive income		—			1			1

Ending balance	$	( 14,746	)	$	278		$	( 14,468	)

September 30, 2024:
Beginning balance	$	( 20,768	)	$	209		$	( 20,559	)
Other comprehensive income before reclassification		4,703			—			4,703
Amounts reclassified from accumulated other comprehensive loss		51			—			51
Net current period other comprehensive loss		—			( 2	)		( 2	)

Ending balance	$	( 16,014	)	$	207		$	( 15,807	)

Note 10:

Changes in Accumulated Other Comprehensive Income (Loss) (AOCI) by Component

Amounts reclassified from AOCI and the affected line items in the statements of income during the quarters ended September 30, 2025 and 2024, were as follows:


	Amounts Reclassified from AOCI
	2025			2024			Affected Line Item in the Condensed Consolidated Statements of Income
Realized gains (losses) on available-for-sale securities	$	( 114	)	$	( 71	)	Net realized gains (losses) on sale of available-for-sale securities
Amortization of defined benefit pension items: Actuarial losses	$	1		$	( 2	)	Components are included in computation of net periodic pension cost

Total reclassified amount before tax	$	( 113	)	$	( 73	)
Tax expense (credit)	$	( 32	)	$	( 20	)	Provision (credit) for Income Tax

Total reclassification out of AOCI	$	( 81	)	$	( 53	)	Net Income

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Note 11:

Income Taxes

A reconciliation of income tax expense at the statutory rate to the Company’s actual income tax expense is shown below:


	Three Months Ended September 30,
	2025			2024
Computed at the statutory rate	$	400		$	179
Increase resulting from
Tax exempt interest		( 8	)		( 8	)
Cash surrender value of life insurance		( 25	)		( 24	)
State income taxes		148			58
Other		( 3	)		13

Actual expense	$	512		$	218

Note 12:

Regulatory Capital

off-balance-sheet

items as calculated under regulatory accounting practices. The Association’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk-weightings and other factors.

The Basel III regulatory capital framework (the “Basel III Capital Rules”) adopted by U.S. federal regulatory authorities, among other things, (i) establish the capital measure called “Common Equity Tier 1” (“CET1”), (ii) specify that Tier 1 capital consist of CET1 and “Additional Tier 1 Capital” instruments meeting stated requirements, (iii) define CET1 narrowly by requiring that most deductions/adjustments to regulatory capital measures be made to CET1 and not to the other components of capital and (iv) set forth the acceptable scope of deductions/adjustments to the specified capital measures.

In addition, to avoid restrictions on capital distributions, including dividend payments and stock repurchases, or discretionary bonus payments to executives, a covered banking organization must maintain a “capital conservation buffer” of 2.5 % on top of its minimum risk-based capital requirements. This buffer must consist solely of Tier 1 Common Equity and the buffer applies to all three measurements: Common Equity Tier 1, Tier 1 capital and total capital.

As a result of the Economic Growth, Regulatory Relief, and Consumer Protection Act, the federal banking agencies were required to develop a “Community Bank Leverage Ratio” (the ratio of a bank’s tangible equity capital to average total consolidated assets) for financial institutions with assets of less than $ 10 billion. A “qualifying community bank” that exceeds this ratio will be deemed to be in compliance with all other capital and leverage requirements, including the capital requirements to be considered “well capitalized” under Prompt Corrective Action statutes. The Community Bank Leverage Ratio is currently set at 9 %. The Association opted into the Community Bank Leverage Ratio in 2020.

As of September 30, 2025 and June 30, 2025, the Association met all capital adequacy requirements to which it is subject and was categorized as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events that management believes have changed the Association’s prompt corrective action category.

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Note 13:

Disclosures About Fair Value of Assets

Fair value is the price that would be received to sell an asset in an orderly transaction between market participants at the measurement date. Fair value measurements must maximize the use of observable inputs and minimize the use of unobservable inputs. There is a hierarchy of three levels of inputs that may be used to measure fair value:


Level 1		Quoted prices in active markets for identical assets

Level 2		Observable inputs other than Level 1 prices, such as quoted prices for similar assets; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets

Level 3		Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets

Recurring Measurements

The following table presents the fair value measurements of assets recognized in the accompanying condensed consolidated balance sheets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fell at September 30, 2025 and June 30, 2025:


			Fair Value Measurements Using
	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
September 30, 2025:
Available-for-sale securities:
U.S. Government and federal agency and Government sponsored enterprises (GSE’s)	$	916	$	—	$	916	$	—
Mortgage-backed: GSE residential		174,345		—		174,345		—
Small Business Administration		12,815		—		12,815		—
State and political subdivisions		1,748		—		—		1,748
Mortgage servicing rights		1,430		—		—		1,430

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			Fair Value Measurements Using
	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
June 30, 2025:
Available-for-sale securities:
U.S. Government and federal agency and Government sponsored enterprises (GSE’s)		1,812		—		1,812		—
Mortgage-backed: GSE residential		171,079		—		171,079		—
Small Business Administration		13,114		—		13,114		—
State and political subdivisions		1,748		—		—		1,748
Mortgage servicing rights		1,429		—		—		1,429

Following is a description of the valuation methodologies and inputs used for assets measured at fair value on a recurring basis and recognized in the accompanying condensed consolidated balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy. There have been no significant changes in the valuation techniques during the period ended September 30, 2025. For assets classified within Level 3 of the fair value hierarchy, the process used to develop the reported fair value is described below.

Available-for-sale

Securities

Where quoted market prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics or discounted cash flows. For these investments, the inputs used by the pricing service to determine fair value may include one, or a combination of, observable inputs such as benchmark yields, reported trades, broker/dealer quotes, issuer spreads,

two-sided

markets, benchmark securities, bid, offers and reference data market research publications and are classified within Level 2 of the valuation hierarchy. Level 2 securities include U.S. Treasury, U.S. Government and federal agency, mortgage-backed securities (GSE—residential), Small Business Administration and state and political subdivisions. In certain cases where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy.

Mortgage Servicing Rights

Mortgage servicing rights do not trade in an active, open market with readily observable prices. Accordingly, fair value is estimated using discounted cash flow models. Due to the nature of the valuation inputs, mortgage servicing rights are classified within Level 3 of the hierarchy.

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Level 3 Reconciliation

The following is a reconciliation of the beginning and ending balances of recurring fair value measurements recognized in the accompanying balance sheet using significant unobservable (Level 3) inputs:


	Three months ended September 30, 2025
	Obligations of State and Political Subdivisions		Mortgage Servicing Rights			Total
Beginning balance	$	1,748	$	1,429		$	3,177
Transfers into Level 3		—		60			60
Transfers out of Level 3		—		( 44	)		( 44	)
Total realized and unrealized gains and losses included in net income		—		( 15	)		( 15	)
Purchases		—		—			—
Sales		—		—			—
Settlements		—		—			—

Ending balance	$	1,748	$	1,430		$	3,178

Total gains or losses for the period included in net income attributable to the change in unrealized gains or losses related to assets and liabilities still held at the reporting date	$	—	$	( 15	)	$	( 15	)


	Year ended June 30, 2025
	Obligations of State and Political Subdivisions			Mortgage Servicing Rights			Total
Beginning balance	$	2,057		$	1,491		$	3,548
Transfers into Level 3		—			130			130
Transfers out of Level 3		—			( 122	)		( 122	)
Total realized and unrealized gains and losses included in net income		—			( 70	)		( 70	)
Purchases		—			—			—
Sales		—			—			—
Settlements		( 309	)		—			( 309	)

Ending balance	$	1,748		$	1,429		$	3,177

Total gains or losses for the period included in net income attributable to the change in unrealized gains or losses related to assets and liabilities still held at the reporting date	$	—		$	( 70	)	$	( 70	)

Realized and unrealized gains and losses for items reflected in the table above are included in net income in the condensed consolidated statements of income as noninterest income.

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Nonrecurring Measurements

The following table presents the fair value measurement of assets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at September 30, 2025 and June 30, 2025:


			Fair Value Measurements Using
	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
September 30, 2025:
Foreclosed assets	$	40	$	—	$	—	$	40
June 30, 2025:
Foreclosed assets	$	—	$	—	$	—	$	—

The following table presents losses recognized on assets measured on a

non-recurring

basis for the three months ended September 30, 2025 and 2024:


	Three Months Ended September 30,
	2025			2024
Individually evaluated collateral-dependent loans	$	( 122	)	$	—
Foreclosed assets	$	( 104	)	$	—

Following is a description of the valuation methodologies used for assets measured at fair value on a nonrecurring basis and recognized in the accompanying balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy. For assets classified within Level 3 of the fair value hierarchy, the process used to develop the reported fair value is described below.

Foreclosed Assets

Foreclosed assets consist primarily of real estate owned. Real estate owned (“OREO”) is carried at the lower of fair value at acquisition date or current estimated fair value, less estimated cost to sell when the real estate is acquired. Estimated fair value of OREO is based on appraisals or evaluations. OREO is classified within Level 3 of the fair value hierarchy.

Appraisals of OREO are obtained when the real estate is acquired and subsequently as deemed necessary by the senior lending officer. Appraisals are reviewed for accuracy and consistency by the senior lending officer. Appraisers are selected from the list of approved appraisers maintained by management.

Individually Evaluated Collateral-dependent Loans, Net of the Allowance for Credit Losses on Loans

The estimated fair value of individually evaluated collateral-dependent loans is based on the appraised fair value of the collateral, less estimated cost to sell. Individually evaluated collateral-dependent loans are classified within Level 3 of the fair value hierarchy.

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The Company considers the appraisal or evaluation as the starting point for determining fair value and then considers other factors and events in the environment that may affect the fair value. Appraisals of the collateral underlying collateral-dependent loans are obtained when the loan is determined to be collateral-dependent and subsequently as deemed necessary by the senior lending officer. Appraisals are reviewed for accuracy and consistency by the senior lending officer. Appraisers are selected from the list of approved appraisers maintained by management. The appraised values are reduced by discounts to consider lack of marketability and estimated cost to sell if repayment or satisfaction of the loan is dependent on the sale of the collateral. These discounts and estimates are developed by the senior lending officer by comparison to historical results.

Unobservable (Level 3) Inputs

The following tables present quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements at September 30, 2025 and June 30, 2025.


	Fair Value at September 30, 2025		Valuation Technique	Unobservable Inputs	Range (Weighted Average)
Mortgage servicing rights	$	1,430	Discounted cash flow	Discount rate Constant prepayment rate Probability of default	9.5 % ( 9.5 %) 5.0 % - 11.1 % ( 10.3 %) 0.07 % - 0.12 % ( 0.12 %)
State and political subdivision		1,748	Discounted cash flow	Maturity/Call Date Weighted average coupon Marketability yield adjustment	1 month – 6 years 2.97 % - 3.08 % ( 3.04 %) 1.0 % - 2.0 % ( 1.6 %)
Foreclosed assets		40	Market comparable properties	Comparability adjustments (%)	0 % ( 0 %)


	Fair Value at June 30, 2025		Valuation Technique	Unobservable Inputs	Range (Weighted Average)
Mortgage servicing rights	$	1,429	Discounted cash flow	Discount rate Constant prepayment rate Probability of default	9.5 % ( 9.5 %) 4.9 % - 9.8 % ( 9.2 %) 0.07 % - 0.12 % ( 0.12 %)
State and political subdivision		1,748	Discounted cash flow	Maturity/Call Date Weighted average coupon Marketability yield adjustment	1 month – 6 years 2.97 % - 3.08 % ( 3.04 %) 1.0 % - 2.0 % ( 1.6 %)

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Fair Value of Financial Instruments

The following tables present estimated fair values of the Company’s financial instruments and the level within the fair value hierarchy in which the fair value measurements fell at September 30, 2025 and June 30, 2025.


	Carrying Amount		Fair Value Measurements Using Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
September 30, 2025:
Financial assets
Cash and cash equivalents	$	8,027	$	8,027	$	—	$	—
Interest-bearing time deposits in banks		250		250		—		—
Loans, net of allowance for credit losses		619,282		—		—		598,392
Federal Home Loan Bank stock		4,844		—		4,844		—
Accrued interest receivable		3,693		—		3,693		—
Financial liabilities
Deposits		680,264		—		361,787		318,241
Repurchase agreements		18,130		—		18,130		—
Federal Home Loan Bank advances		69,124		—		68,007		—
Advances from borrowers for taxes and insurance		681		—		681		—
Accrued interest payable		1,812		—		1,812		—
Unrecognized financial instruments (net of contract amount)		—		—		—		—
Commitments to originate loans		—		—		—		—


	Carrying Amount		Fair Value Measurements Using Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
June 30, 2025:
Financial assets
Cash and cash equivalents	$	20,092	$	20,092	$	—	$	—
Interest-bearing time deposits in banks		250		250		—		—
Loans, net of allowance for credit losses		633,603		—		—		610,986
Federal Home Loan Bank stock		5,174		—		5,174		—
Accrued interest receivable		3,545		—		3,545		—
Financial liabilities
Deposits		721,258		—		408,173		312,719
Repurchase agreements		18,795		—		18,795		—
Federal Home Loan Bank advances		54,124		—		52,892		—
Advances from borrowers for taxes and insurance		972		—		972		—
Accrued interest payable		1,861		—		1,861		—
Unrecognized financial instruments (net of contract amount)
Commitments to originate loans		—		—		—		—

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The methods utilized to measure the fair value of financial instruments at September 30, 2025, represent an approximation of exit price; however, an actual exit price may

differ

Note 14:

Commitments

Commitments to Originate Loans

Commitments to extend credit are agreements to lend to a customer if there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since a portion of the commitments may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Each customer’s creditworthiness is evaluated on a

case-by-case

basis. The amount of collateral obtained, if deemed necessary, is based on management’s credit evaluation of the counterparty. Collateral held varies, but may include accounts receivable, inventory, property, plant and equipment, commercial real estate and residential real estate.

Lines of Credit

Lines of credit are agreements to lend to a customer if there is no violation of any condition established in the contract. Lines of credit generally have fixed expiration dates. Since a portion of the line may expire without being drawn upon, the total unused lines do not necessarily represent future cash requirements. Each customer’s creditworthiness is evaluated on a

case-by-case

basis. The amount of collateral obtained, if deemed necessary, is based on management’s credit evaluation of the counterparty. Collateral held varies but may include accounts receivable, inventory, property, plant and equipment, commercial real estate and residential real estate. Management uses the same credit policies in granting lines of credit as it does for

on-balance-sheet

instruments.

Off-Balance

Sheet Credit Exposures

Off-balance

sheet credit instruments include commitments to make loans, and commercial letters of credit, issued to meet customer financing needs. The Company’s exposure to credit loss in the event of

non-performance

by the other party to the financial instrument for

off-balance

sheet loan commitments is represented by the contractual amount of those instruments. Such financial instruments are recorded when they are funded. The ACL on

off-balance

sheet credit exposures is estimated by loan pool on a quarterly basis under the current CECL model using the same methodologies as portfolio loans, taking into consideration the likelihood that funding will occur and is included in other liabilities on the Company’s consolidated balance sheets. The Company records an ACL on

off-balance

sheet credit exposures, unless the commitments to extend credit are unconditionally cancelable. During the three months ended September 30, 2025, the Company recorded a provision for credit losses on

off-balance

sheet credit exposures of $ 23,000 compared to a provision for credit losses of $ 5,000 for the three months ended September 30, 2024. Our allowance for credit losses (ACL) on

off-balance

sheet credit exposures was $ 98 ,000 and $ 75 ,000 at September 30, 2025 and June 30, 2025, respectively. This increase was primarily due to an increase in loans with unfunded balances without the Company’s ability to cancel on demand.

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Note 15:

Subsequent

Events

On October 29, 2025, the Company entered into an agreement to merge with and into ServBanc Holdco, Inc. (“ServBanc”) with the Association merging into ServBank, the wholly owned subsidiary of ServBanc. The Company’s shareholders will receive approximately $ 89.8 million, or $ 27.20 in cash for each share of Company common stock, subject to certain potential adjustments described in the merger agreement. The transaction has been unanimously approved by the boards of both the Company and ServBanc and is subject to regulatory approval, Company shareholder approval and other conditions set forth in the merger agreement. The transaction is anticipated to close in the first calendar quarter of 2026.

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Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Cautionary Note Regarding Forward-Looking Statements

This Quarterly Report on Form 10-Q may contain forward-looking statements within the meaning of the federal securities laws. These statements are not historical facts, but rather are statements based on management’s current expectations regarding its business strategies and their intended results and IF Bancorp, Inc.’s (“the Company”) future performance.

Forward-looking statements are preceded by terms such as “expects,” “believes,” “anticipates,” “intends” and similar expressions.

Management’s ability to predict results or the effect of future plans or strategies is inherently uncertain. Factors that could have a material adverse effect on our actual results include, but are not limited to, general economic conditions, changes in the interest rate environment, the imposition of tariffs or other domestic or international governmental policies and retaliatory responses, legislative or regulatory changes that may adversely affect our business, the effects of the federal government shutdown, changes in accounting policies and practices, changes in competition and demand for financial services, adverse changes in the securities markets and changes in the quality or composition of the Association’s loan or investment portfolios.

Additional factors that may affect our results are discussed under “Item 1A.—Risk Factors”, in the Company’s Annual Report on Form 10-K for the year ended June 30, 2025, and the Company’s other filings with the Securities and Exchange Commission (“SEC”). These factors should be considered in evaluating the forward-looking statements and undue reliance should not be placed on such statements. IF Bancorp, Inc. assumes no obligation to update any forward-looking statement, except as may be required by law.

Overview

On July 7, 2011, we completed our initial public offering of common stock in connection with the Association’s mutual-to-stock conversion, selling 4,496,500 shares of common stock at $10.00 per share, including 384,900 shares sold to the Association’s employee stock ownership plan, and raising approximately $45.0 million of gross proceeds. We also established a charitable foundation, Iroquois Federal Foundation, to which we contributed 314,755 shares of our common stock. As of September 30, 2025, the Company had repurchased 1,674,479 shares of common stock under stock repurchase plans.

The Company is a savings and loan holding company and is subject to regulation by the Board of Governors of the Federal Reserve System. The Company’s business activities are limited to oversight of its investment in the Association.

The Association is primarily engaged in providing a full range of banking and mortgage services to individual and corporate customers within a 100-mile radius of its locations in Watseka, Danville, Clifton, Hoopeston, Savoy, Champaign, and Bourbonnais, Illinois and 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. The Association is subject to regulation by the Office of the Controller of the Currency and the Federal Deposit Insurance Corporation.

Our results of operations depend primarily on our net interest income. Net interest income is the difference between the interest income we earn on our interest-earning assets, consisting primarily of loans, investment securities and other interest-earning assets, and the interest paid on our interest-bearing liabilities, consisting primarily of savings and transaction accounts, certificates of deposit, and Federal Home Loan Bank of Chicago (“FHLB Chicago”) advances. Our results of operations also are affected by our provision for credit losses, noninterest income and noninterest expense. Noninterest income consists primarily of customer service fees, brokerage commission income, insurance commission income, net realized gains on loan sales, mortgage banking income, and income on bank-owned life insurance. Noninterest expense consists primarily of compensation and benefits, occupancy and equipment, data processing, professional fees, marketing, office supplies, federal deposit insurance premiums, and foreclosed assets. Our results of operations also may be affected significantly by general and local economic and competitive conditions, changes in market interest rates, governmental policies and actions of regulatory authorities.

Our net interest rate spread (the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities) was 2.64% and 1.93% for the three months ended September 30, 2025 and 2024, respectively. Net interest income increased to $6.2 million for the three months ended September 30, 2025 from $4.8 million for the three months ended September 30, 2024.

Our emphasis on conservative loan underwriting has historically resulted in relatively low levels of non-performing assets. Our non-performing loans totaled $1.0 million, or 0.2% of total loans at September 30, 2025 and $46,000, or less than 0.1% of total loans at June 30, 2025. Our non-performing assets totaled $1.1 million, or 0.1% of total assets at September 30, 2025, and $211,000, or less than 0.1% of total assets at June 30, 2025.

At September 30, 2025, the Association was categorized as “well capitalized” under federal regulations.

Our net income for the three months ended September 30, 2025 was $1.4 million, compared to a net income of $633,000 for the three months ended September 30, 2024. The increase in net income was due to an increase in net interest income and a decrease in provision for credit losses, partially offset by a decrease in noninterest income and an increase in noninterest expense.

Management’s discussion and analysis of the financial condition and results of operations at and for three months ended September 30, 2025 and 2024 is intended to assist in understanding the financial condition and results of operations of the Association. The information contained in this section should be read in conjunction with the unaudited financial statements and the notes thereto, appearing in Part I, Item 1 of this Quarterly Report on Form 10-Q.

Critical Accounting Policies

We define critical accounting policies as those policies that require management to exercise significant judgment or discretion or make significant assumptions that have, or could have, a material impact on the carrying value of certain assets or on income. We consider the following to be our critical accounting policies.

Allowance for Credit Losses. The Company believes the allowance for credit losses for loans is the critical accounting policy that requires the most significant judgments and assumptions used in the preparation of the consolidated financial statements. The allowance for credit losses for loans represents the best estimate of losses inherent in the existing loan portfolio. An estimate of potential losses inherent in the loan portfolio are determined and an allowance for those losses is established by factors considered by the Company during the evaluation of the overall adequacy of the allowance which include historical net loan losses, the level and composition of nonaccrual, past due and loan modifications with borrowers experiencing financial difficulty, trends in volumes and terms of loans, effects of changes in risk selection and underwriting standards or lending practices, lending staff changes, concentrations of credit, industry conditions and the current economic conditions in the region where the Company operates. In addition, a forecast, using reasonable and supportable future conditions, is prepared that is used to estimate expected changes to existing and historical conditions in the current period.

The Company utilizes a current expected credit loss (“CECL”) methodology which relies on segmenting the loan portfolio into pools with similar risks, tracking the performance of the pools over time, and using the data to determine pool loss experience. Based on our estimate of the level of allowance for credit losses required, we record a provision for credit losses as a charge to earnings to maintain the allowance for credit losses at an appropriate level. The allowance for credit losses on most loans is measured on a collective (pool) basis for loans with similar risk characteristics. The Company estimates the appropriate level of allowance for credit losses for certain collateral-dependent loans by evaluating them individually. The Company also uses the CECL model to calculate the allowance for credit losses on off-balance sheet credit exposures, such as undrawn amounts on lines of credit. While the allowance for credit losses on loans is reported as a contra-asset asset for loans, the allowance for credit losses on off-balance sheet credit exposures is reported as a liability.

The allowance for credit losses is evaluated on a regular basis by management and reflects consideration of all significant factors that affect the collectability of the loan portfolio. This evaluation is inherently subjective as it requires estimates that are subject to significant revision as more information becomes available. Actual loan losses may be significantly more than the allowance for credit losses we have established which could have a material negative effect on our financial results.

Income Tax Accounting. The provision for income taxes is based upon income in our condensed consolidated financial statements, rather than amounts reported on our income tax return. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on our deferred tax assets and liabilities is recognized as income or expense in the period that includes the enactment date. Under U.S. generally accepted accounting principles, a valuation allowance is required to be recognized if it is more likely than not that a deferred tax asset will not be realized. The determination as to whether we will be able to realize the deferred tax assets is highly subjective and dependent upon judgment concerning our evaluation of both positive and negative evidence, our forecasts of future income, applicable tax planning strategies, and assessments of current and future economic and business conditions. Positive evidence includes the existence of taxes paid in available carryback years as well as the probability that taxable income will be generated in future periods, while negative evidence includes any cumulative losses in the current year and prior two years and general business and economic trends. Any reduction in estimated future taxable income may require us to record a valuation allowance against our deferred tax assets. Any required valuation allowance would result in additional income tax expense in the period and could have a significant impact on our future earnings. Positions taken in our tax returns may be subject to challenge by the taxing authorities upon examination. The benefit of an uncertain tax position is initially recognized in the financial statements only when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions are both initially and subsequently measured as the largest amount of tax benefit that is greater than 50% likely of being realized upon settlement with the tax authority, assuming full knowledge of the position and all relevant facts. Differences between our position and the position of tax authorities could result in a reduction of a tax benefit or an increase to a tax liability, which could adversely affect our future income tax expense.

The One Big Beautiful Bill Act (“OBBBA”) was enacted on July 4, 2025. Among other things, the new law makes permanent certain expiring business tax provisions of the Tax Cuts and Jobs Act. These include provisions which allow businesses to immediately expense, for tax purposes, the cost of new investments in certain qualified depreciable assets and the cost of qualified domestic research and development. The OBBBA also imposes a floor on tax deductions taken on charitable contributions. Further, the OBBBA significantly changes U.S. tax law related to foreign operations and certain tax credits. The full impact of the bill is being analyzed by the Company and could have an impact on income tax expense in future periods .

There were no material changes to the critical accounting policies disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2025.

Comparison of Financial Condition at September 30 and June 30, 2025

Total assets decreased $25.3 million, or 2.9%, to $862.3 million at September 30, 2025 from $887.7 million at June 30, 2025. The decrease was primarily due to a $14.3 million decrease in net loans and a $12.1 million decrease in cash and cash equivalents, partially offset by a $2.1 million increase in investment securities.

Net loans receivable decreased by $14.3 million, or 2.3%, to $619.3 million at September 30, 2025, from $633.6 million at June 30, 2025. The decrease in net loans receivable during this period was due primarily to a $7.8 million, or 6.2% decrease in multi-family loans, a $5.5 million, or 2.7%, decrease in commercial real estate loans, a $2.9 million, or 12.7%, decrease in construction loans, a $718,000, or 0.8%, decrease in commercial business loans, and a $128,000, or 1.2%, decrease in home equity lines of credit, partially offset by a $2.6 million, or 1.5%, increase in one- to four-family mortgage loans, and a $9,000, or 0.2%, increase in consumer loans.

Investment securities, consisting entirely of available-for-sale securities, increased $2.1 million, or 1.1%, to $189.8 million at September 30, 2025 from $187.8 million at June 30, 2025. We had no securities held to maturity at September 30, 2025 or June 30, 2025.

Between June 30, 2025, and September 30, 2025, accrued interest receivable increased $148,000 to $3.7 million, while deferred income taxes decreased $752,000 to $7.9 million, Federal Home Loan Bank (“FHLB”) stock decreased $330,000 to $4.8 million, premises and equipment decreased $116,000 to $10.1 million, and foreclosed assets held for sale decreased $125,000 to $40,000. The increase in accrued interest receivable was the result of an increase in average yield on interest earning assets while the decrease in deferred income taxes was mostly due to a decrease in unrealized losses on available-for-sale securities. The decrease in FHLB stock was due to a repurchase of excess stock by FHLB Chicago. The decrease in premises and equipment was the result of ordinary depreciation and the decrease in foreclosed assets held for sale was the result of the sale of property.

At September 30, 2025, our investment in bank-owned life insurance was $15.5 million, an increase of $118,000 from $15.3 million at June 30, 2025. We invest in bank-owned life insurance to provide us with a funding source for our benefit plan obligations. Bank-owned life insurance also generally provides us with noninterest income that is non-taxable. Federal regulations generally limit our investment in bank-owned life insurance to 25% of our Tier 1 capital plus our allowance for credit losses, which totaled $24.9 million at September 30, 2025.

Deposits decreased $41.0 million, or 5.7%, to $680.3 million at September 30, 2025 from $721.3 million at June 30, 2025. Noninterest bearing demand accounts decreased $69.2 million, or 66.3%, to $35.2 million, while certificates of deposit, excluding brokered certificates of deposit, increased $6.9 million, or 2.4%, to $290.3 million, savings, NOW, and money market accounts combined increased $22.9 million, or 7.5%, to $326.6 million, and brokered certificates of deposit decreased $1.5 million, or 5.0%, to $28.2 million. The large decrease in noninterest bearing demand accounts was mostly due to approximately $59.3 million in deposits from a public entity that collects real estate taxes that were withdrawn during the three months ended September 30, 2025, when tax monies were distributed. Repurchase agreements decreased $665,000, or 3.5%, to $18.1 million at September 30, 2025 from $18.8 million at June 30, 2025. Borrowings consisted of advances from the Federal Home Loan Bank of Chicago, which increased $15.0 million to $69.1 million at September 30, 2025 from $54.1 million at June 30, 2025.

Accrued interest payable decreased $49,000, or 2.6%, to $1.8 million at September 30, 2025 from $1.9 million at June 30, 2025, while advances from borrowers for taxes and insurance decreased $291,000, or 29.9%, to $681,000 at September 30, 2025 from $972,000 at June 30, 2025, allowance for credit losses on off-balance sheet credit exposures increased $23,000 to $98,000 at September 30, 2025 from $75,000 at June 30, 2025, and other liabilities decreased $1.0 million, or 15.8%, to $5.5 million at September 30, 2025 from $6.6 million at June 30, 2025. The decrease in accrued interest payable was mostly due to a decrease in both the yield and average balance of interest-bearing liabilities. The decrease in advances from borrowers for taxes and insurance was attributable to the timing of the payment of real estate taxes and insurance, the increase in the allowance for credit losses on off-balance sheet credit exposures was due to increases in loans with unfunded balances without the Bank’s ability to cancel on demand, and the increase in other liabilities was mostly due to a fluctuation in items in process.

Total equity increased $2.7 million, or 3.3%, to $84.5 million at September 30, 2025 from $81.8 million at June 30, 2025. Equity increased primarily due to an increase of $1.8 million in accumulated other comprehensive income (loss), net of tax, net income of $1.4 million and ESOP and stock equity plan activity of $167,000, partially offset by the accrual of approximately $670,000 in dividends to our stockholders. The increase in accumulated other comprehensive income (loss) was primarily due to decrease in unrealized depreciation on available-for-sale securities, net of tax.

Comparison of Operating Results for the Three Months Ended September 30, 2025 and 2024

General. Net income increased $759,000 to $1.4 million for the three months ended September 30, 2025 from $633,000 for the three months ended September 30, 2024. The increase was primarily due to an increase in net interest income and a credit to the provision for credit losses, partially offset by a decrease in noninterest income, and an increase in noninterest expenses.

Net Interest Income. Net interest income increased by $1.4 million, or 28.3%, to $6.2 million for the three months ended September 30, 2025 from $4.8 million for the three months ended September 30, 2024. The increase was due to an increase of $179,000 in interest income and a decrease of $1.2 million in interest expense. Our net interest margin increased by 70 basis points to 2.97% for the three months ended September 30, 2025 compared to 2.27% for the three months ended September 30, 2024, while our interest rate spread increased by 71 basis points to 2.64% for the three months ended September 30, 2025 compared to 1.93% for the three months ended September 30, 2024. A $28.7 million, or 3.8%, decrease in the average balance of interest-bearing liabilities was partially offset by a $16.5 million, or 2.0%, decrease in the average balance of interest-earning assets.

Interest and Dividend Income. Interest income increased by $179,000, or 1.6%, to $11.1 million for the three months ended September 30, 2025, from $10.9 million for the three months ended September 30, 2024. The increase in interest income was primarily due to a $10,000 increase in interest income on loans, a $81,000 increase in interest income on securities and an $88,000 increase in other interest income. The increase in interest income on loans resulted from a 19 basis point, or 3.2%, increase in the average yield on loans to 6.02% for the three months ended September 30, 2025, from 5.83% for the three months ended September 30, 2024, mostly offset by a $19.7 million, or 3.0%, decrease in the average balance of loans to $630.1 million for the three months ended September 30, 2025, from $649.8 million for the three months ended September 30, 2024. Interest on securities increased $81,000, or 6.4%, as a result of a 17 basis point, or 6.4%, increase in the average yield on securities to 2.86% for the three months ended September 30, 2025 from 2.69% for the three months ended September 30, 2024, while the average balance of securities was $189.8 million for both the three months ended September 30, 2025 and 2024.

Interest Expense. Interest expense decreased $1.2 million, or 19.4%, to $4.9 million for the three months ended September 30, 2025, from $6.1 million for the three months ended September 30, 2024. The decrease was due to both a decrease in the average cost of interest-bearing liabilities and by a decrease in the average balance of interest-bearing liabilities.

Interest expense on interest-bearing deposits decreased by $655,000, or 13.8%, to $4.1 million for the three months ended September 30, 2025 from $4.8 million for the three months ended September 30, 2024. This decrease was due to a 42 basis point, or 14.1%, decrease in the average cost of interest bearing deposits to 2.56% for the three months ended September 2025, from 2.98% for the three months ended September 30, 2024, partially offset by a $302,000, or 0.1% increase in the average balance of interest-bearing deposits to $639.3 million for the three months ended September 30, 2025 from $639.0 million for the three months ended September 30, 2024.

Interest expense on borrowings, including FHLB advances, repurchase agreements and other borrowings, decreased $528,000, or 39.4%, to $811,000 for the three months ended September 30, 2025, from $1.3 million for the three months ended September 30, 2024. This decrease was due to a decrease in the average balance of borrowings to $90.7 million for the three months ended September 30, 2025 from $119.7 million for the three months ended September 30, 2024, and an 89 basis point decrease in the average cost of such borrowings to 3.58% for the three months ended September 30, 2025 from 4.47% for the three months ended September 30, 2024.

Provision (Credit) for Credit Losses. We establish provisions for credit losses, which are charged to operations in order to maintain the allowance for credit losses at a level we consider necessary to absorb potential credit losses inherent in our loan portfolio. We recorded a credit for credit losses of $42,000 for the three months ended September 30, 2025, which includes a credit for credit losses on loans of $65,000 and a provision for credit losses on off-balance sheet credit exposures of $23,000, compared to a provision for credit losses of $382,000 for the three months ended September 30, 2024, which includes a provision for credit losses on loans of $377,000 and a provision for credit losses on off-balance

sheet credit exposures of $5,000. The allowance for credit losses on loans was $6.5 million, or 1.04% of total loans, at September 30, 2025, compared to $7.5 million, or 1.14% of total loans at September 30, 2024, and $6.6 million, or 1.04% of total loans, at June 30, 2025. During the three months ended September 30, 2025, a net loss of $71,000 was recorded, while during the three months ended September 30, 2024, a net loss of $404,000 was recorded.

The following table sets forth information regarding the allowance for credit losses and nonperforming assets at the dates indicated:


	Three Months Ended September 30, 2025			Year Ended June 30, 2025
Allowance to non-performing loans		638.25	%		14406.52	%
Allowance to total loans outstanding at the end of the period		1.04	%		1.04	%
Net charge-offs (recoveries) to average total loans outstanding during the period, annualized		0.05	%		0.03	%
Total non-performing loans to total loans		0.16	%		0.01	%
Total non-performing assets to total assets		0.12	%		0.02	%

Noninterest Income. Noninterest income decreased $266,000, or 18.9%, to $1.1 million for the three months ended September 30, 2025 from $1.4 million for the three months ended September 30, 2024. The decrease was primarily due to an increase in net realized loss on sale of available-for-sale securities and a decrease in other noninterest income, partially offset by an increase in brokerage commissions, an increase in mortgage banking income (loss), net, and an increase in gain on sale of loans. For the three months ended September 30, 2025, net realized losses on sale of available-for-sale securities increased by $43,000 to a loss of $114,000, and other noninterest income decreased by $417,000 to $344,000, while brokerage commissions increased by $20,000 to $198,000, mortgage banking income (loss), net increased $128,000 to $86,000 and gain (loss) on sale of loans increased by $19,000 to $116,000 from the three months ended September 30, 2024. The increase in net realized loss on sale of available-for-sale securities was due to more securities sold at a net loss in the three months ended September 30, 2025, while the decrease in other income was due to the receipt of an insurance settlement filed as a result of HELOC check fraud in the three months ended September 30 2024. The increase in mortgage banking income (loss), net and the gain on sale of loans was a result of an increase in the valuation of mortgage servicing rights and an increase in loan servicing fees in the three months ended September 30, 2025, while the increase in brokerage commissions was due to the result of an increase in mutual fund commissions and management fees.

Noninterest Expense. Noninterest expense increased $467,000, or 9.3%, to $5.5 million for three months ended September 30, 2025 from $5.0 million for the three months ended September 30, 2024. Compensation and benefits increased $312,000, or 10.2%, equipment expense increased $24,000, or 4.1%, and loss on sale of foreclosed assets, net increased $97,000. These increases were partially offset by a $43,000, or 32.6%, decrease in federal deposit insurance. Compensation and benefits increased due to normal salary increases, annual incentive plan increases and increased medical costs, equipment expense increased due to an increase in the cost of core processing, and the loss on sale of foreclosed assets, net increased since we sold property at a loss in the three months ended September 30, 2025. Our federal deposit insurance premium decreased due to a decrease in the quarterly assessment multiplier as a result of improvement in the sum of financial ratio contributions to assessment rate.

Income Tax Expense . We recorded a provision for income tax of $512,000 for the three months ended September 30, 2025, compared to a provision for income tax of $218,000 for the three months ended September 30, 2024, reflecting effective tax rates of 26.9% and 25.6%, respectively.

Asset Quality

At September 30, 2025, our non-accrual loans totaled $1.0 million, which consisted of one- to four-family loan in the amount of $254,000, two commercial real estate loans totaling $626,000, three commercial loans totaling $122,000, and one consumer loan for $15,000.

At September 30, 2025 we had no loans that were delinquent 90 days or greater and still accruing interest.

At September 30, 2025, loans classified as substandard equaled $6.0 million. Loans classified as substandard consisted of $424,000 in one- to four-family loans, $223,000 in multi-family loans, $2.0 million in commercial real estate loans, $3.4 million in commercial business loans and $15,000 in consumer loans. No loans were classified as doubtful or loss at September 30, 2025.

At September 30, 2025, loans designated as watch equaled $584,000 and consisted of $348,000 in one- to four-family loans, $170,000 in commercial real estate loans, and $66,000 in commercial business loans.

Loan Modifications with Borrowers Experiencing Financial Difficulty . The Company made no loan modifications for borrowers with financial difficulties in the three months ended September 30, 2025 or 2024.

Foreclosed Assets. At September 30 2025, we had $40,000 in foreclosed assets and at June 30, 2025, we had $165,000 in foreclosed assets. Foreclosed assets at both September 30 2025 and June 30, 2025 consisted of one- to four-family residential real estate.

Allowance for Credit Loss Activity

The Company regularly reviews its allowance for credit losses and adjusts its balance based on management’s analysis of the loan portfolio, the amount of non-performing and classified loans, as well as general economic conditions. Although the Company maintains its allowance for credit losses at a level that it considers sufficient to provide for losses, there can be no assurance that future losses will not exceed internal estimates. In addition, the amount of the allowance for credit losses is subject to review by regulatory agencies, which can order the establishment of additional loss provisions. The following table summarizes changes in the allowance for credit losses over the three-month periods ended September 30, 2025 and 2024:


	Three months ended September 30,
	2025			2024
Balance, beginning of period	$	6,627		$	7,499
Loans charged off:
Real estate loans:
One- to four-family		—			—
Multi-family		—			(350	)
Commercial		—			—
HELOC		—			—
Construction		—			—
Commercial business		(70	)		(50	)
Consumer		(9	)		(9	)

Gross charged off loans		(79	)		(409	)

Recoveries of loans previously charged off:
Real estate loans:
One- to four-family		2			1
Multi-family		—			—
Commercial		—			—
HELOC		—			—
Construction		—			—
Commercial business		2			2
Consumer		4			2

Gross recoveries of charged off loans		8			5

Net (charge-offs) recoveries		(71	)		(404	)

Provision (credit) charged to expense		(65	)		377

Balance, end of period	$	6,491		$	7,472

The allowance for credit losses has been calculated based upon an evaluation of pertinent factors underlying the various types and quality of the Company’s loans. Management considers such factors as the repayment status of a loan, the estimated net fair value of the underlying collateral, the borrower’s intent and ability to repay the loan, local economic conditions, and the Company’s historical loss ratios. We maintain the allowance for credit losses through the provisions for credit losses that we charge to income. We charge losses on loans against the allowance for credit losses when we believe the collection of loan principal is unlikely. The allowance for credit losses decreased $136,000, or 2.1%, to $6.5 million at September 30, 2025 from $6.6 million at June 30, 2025. This slight decrease in the allowance for credit losses on loans was made to bring the allowance for credit losses on loans to a level that represents the Company’s best estimate of the reserve necessary to adequately account for probable losses expected over the remaining contractual life of the loans.

Within each pool, risk elements are evaluated that have specific impacts to the borrowers within the pool. These, along with the general risks and events, and the specific lending policies and procedures by loan type, are analyzed to estimate the qualitative factors used to adjust the historical loss rates. Factors considered by the Company during the evaluation of the overall adequacy of the allowance include historical net loan losses, the level and composition of nonaccrual, past due and troubled debt restructurings, trends in volumes and terms of loans, effects of changes in risk selection and underwriting standards or lending practices, lending staff changes, concentrations of credit, industry conditions and the current economic conditions in the region where the Company operates. Management reviews economic factors including the potential for reduced cash flow for commercial operating loans from reduction in sales or increased operating costs, decreased occupancy rates for commercial buildings, reduced levels of home sales for commercial land developments, increased operating costs for businesses, and increased levels of unemployment and bankruptcy impacting consumer’s ability to pay. Each of these economic uncertainties was taken into consideration in developing the level of the reserve, and management has included a qualitative factor within the ACL. In addition, a forecast, using reasonable and supportable future conditions, is prepared that is used to estimate expected changes to existing and historical conditions in the current period.

While management believes that our asset quality remains strong, it recognizes that, due to the continued growth in the loan portfolio and the potential changes in market conditions, our level of nonperforming assets and resulting charge-offs may fluctuate. Higher levels of net charge-offs requiring additional provisions for credit losses could result. Although management uses the best information available, the level of the allowance for credit losses remains an estimate that is subject to significant judgment and short-term change.

Liquidity and Capital Resources

Liquidity is the ability to meet current and future financial obligations of a short-term nature. Our primary sources of funds consist of deposit inflows, loan sales and repayments, advances from the Federal Home Loan Bank of Chicago, and maturities of securities. While maturities and scheduled amortization of loans and securities are predictable sources of funds, deposit flows and mortgage prepayments are greatly influenced by general interest rates, economic conditions and competition. Our Asset/Liability Management Committee is responsible for establishing and monitoring our liquidity targets and strategies in order to ensure that sufficient liquidity exists to meet the borrowing needs and deposit withdrawals of our customers as well as unanticipated contingencies. For the three months ended September 30, 2025 and the year ended June 30, 2025, our liquidity ratio averaged 25.0% and 24.1% of our total assets, respectively. We believe that we had enough sources of liquidity to satisfy our short- and long-term liquidity needs as of September 30, 2025.

We regularly monitor and adjust our investments in liquid assets based upon our assessment of: (i) expected loan demand; (ii) expected deposit flows; (iii) yields available on interest-earning deposits and securities; and (iv) the objectives of our asset/liability management program. Excess liquid assets are invested generally in interest-earning deposits and short- and medium-term securities.

Our most liquid assets are cash and cash equivalents. The levels of these assets are affected by our operating, financing, lending and investing activities during any given period. At September 30, 2025, cash and cash equivalents totaled $8.0 million. Interest-earning time deposits which can offer additional sources of liquidity, totaled $250,000 at September 30, 2025.

Our cash flows are derived from operating activities, investing activities and financing activities as reported in our Condensed Consolidated Statement of Cash Flows included in our financial statements. Net cash provided by (used in) operating activities was $(539,000) and $2.2 million for the three months ended September 30, 2025 and 2024, respectively. Net cash provided by (used in) investing activities consisted primarily of proceeds from the sales, maturities, pay downs of available-for-sale securities, partially offset by disbursements for loan originations and the purchase of securities. Net cash provided by (used in) investing activities was $15.4 million and $(4.0) million for the three months ended September 30, 2025 and 2024, respectively. Net cash provided by (used in) financing activities consisted primarily of the activity in deposit accounts, FHLB advances and other borrowings. The net cash provided by (used in) financing activities was $(27.0) million and $90,000 for the three months ended September 30, 2025 and 2024, respectively.

The Company must also maintain adequate levels of liquidity to ensure the availability of funds to satisfy loan commitments. The Company anticipates that it will have sufficient funds available to meet its current commitments principally through the use of current liquid assets and through its borrowing capacity discussed above. The following table summarizes these commitments at September 30, 2025 and June 30, 2025.


	September 30, 2025		June 30, 2025
	(Dollars in thousands)
Commitments to fund loans	$	6,617	$	7,631
Lines of credit		74,464		69,658

At September 30, 2025, certificates of deposit due within one year of September 30, 2025 totaled $284.4 million, or 41.8% of total deposits. Depending on market conditions, we may be required to pay higher rates on such deposits or other borrowings than we currently pay on the certificates of deposit due on or before September 30, 2026. It is our intention as we continue to grow our commercial real estate portfolio, to emphasize lower cost deposit relationships with these commercial loan customers and thereby replace the higher cost certificates with lower cost deposits. We have the ability to attract and retain deposits by adjusting the interest rates offered.

Liquidity management is both a daily and long-term function of business management. If we require funds beyond our ability to generate them internally, borrowing agreements, which provide an additional source of funds, exist with FHLB Chicago, the Federal Reserve Discount Window, and CIBC Bank USA. At September 30, 2025, our borrowings consisted of $69.1 million in FHLB advances. At September 30, 2025, we had the ability to borrow up to an additional $52.1 million from FHLB Chicago, we had $14.0 million available from CIBC Bank, and also had the ability to borrow $33.8 million from the Federal Reserve Bank of Chicago based on current collateral pledged.

The Association is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and discretionary actions by regulators that if undertaken, could have a direct material effect on the Association’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Association must meet specific capital guidelines involving quantitative measures of the Association’s assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The Association’s capital amounts, and classification are also subject to qualitative judgments by the regulators about components, risk-weightings and other factors.

In addition, to avoid restrictions on capital distributions, including dividend payments and stock repurchases, or discretionary bonus payments to executives, a covered banking organization must maintain a “capital conservation buffer” of 2.5% on top of its minimum risk-based capital requirements. This buffer must consist solely of Tier 1 Common Equity and the buffer applies to all three measurements: Common Equity Tier 1, Tier 1 capital and total capital.

As a result of the Economic Growth, Regulatory Relief, and Consumer Protection Act, the federal banking agencies were required to develop a “Community Bank Leverage Ratio” (the ratio of a bank’s tangible equity capital to average total consolidated assets) for financial institutions with assets of less than $10 billion. A “qualifying community bank” that exceeds this ratio will be deemed to be in compliance with all other capital and leverage requirements, including the capital requirements to be considered “well capitalized” under Prompt Corrective Action statutes. The Community Bank Leverage Ratio is currently set at 9%. The Association opted into the Community Bank Leverage Ratio in 2020.

As of September 30, 2025, the Association met all capital adequacy requirements to which it is subject and was categorized as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events that management believes have changed the Association’s prompt corrective action category. The Association’s Community Bank Leverage Ratio is presented in the table below.


	September 30, 2025			June 30, 2025			Minimum to Be Well
	Actual			Actual			Capitalized
Community Bank Leverage Ratio		10.2	%		10.0	%		9.0	%

Average Balances and Yields

The following tables set forth average balance sheets, average yields and costs, and certain other information at and for the periods indicated. Yields and costs are annualized. Tax-equivalent yield adjustments have not been made for tax-exempt securities. All average balances are based on month-end balances, which management deems to be representative of the operations of the Company. Non-accrual loans were included in the computation of average balances but have been reflected in the table as loans carrying a zero yield. The yields set forth below include the effect of deferred fees, discounts and premiums that are amortized or accreted to interest income or expense.


	For the Three Months Ended September 30,
	2025									2024
	Average Balance		Interest Income/ Expense		Yield/Cost			Average Balance		Interest Income/ Expense		Yield/Cost
	(Dollars in thousands)
Assets
Loans	$	630,066		9,485		6.02	%	$	649,753		9,475		5.83	%
Securities:
U.S. Government and federal agency		913		5		2.19	%		5,732		35		2.44	%
Mortgage-backed:
GSE residential		174,116		1,255		2.88	%		166,750		1,122		2.69	%
Small Business Administration		12,975		84		2.59	%		14,267		96		2.69	%
State and political subdivisions		1,748		13		2.97	%		3,099		23		2.97	%

Total securities		189,752		1,357		2.86	%		189,848		1,276		2.69	%
Other		13,320		250		7.51	%		10,074		162		6.43	%

Total interest-earning assets		833,138		11,092		5.33	%		849,675		10,913		5.14	%
Non-interest earning assets		38,153									38,980

Total assets	$	871,291							$888,655


	For the Three Months Ended September 30,
	2025											2024
	Average Balance			Interest Income/ Expense		Yield/Cost			Average Balance			Interest Income/ Expense		Yield/Cost
	(Dollars in thousands)
Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Interest-bearing checking or NOW	$	104,754			43		0.16	%	$	100,193			40		0.16	%
Savings accounts		57,271			40		0.28	%		54,365			42		0.31	%
Money market accounts		159,597			1,022		2.56	%		167,690			1,208		2.88	%
Certificates of deposit		317,697			2,993		3.77	%		316,769			3,463		4.37	%

Total interest-bearing deposits		639,319			4,098		2.56	%		639,017			4,753		2.98	%
Borrowings and repurchase agreements		90,705			811		3.58	%		119,711			1,339		4.47	%

Total interest-bearing liabilities		730,024			4,909		2.69	%		758,728			6,092		3.21	%
Noninterest-bearing liabilities		49,984								46,165
Other Noninterest-bearing liabilities		8,021								6,602

Total liabilities		788,029								811,495
Stockholders’ equity		83,262								77,160

Total liabilities and stockholders’ equity	$	871,291							$	888,655

Net interest income				$	6,183							$	4,821

Interest rate spread (1)							2.64	%							1.93	%
Net interest margin (2)							2.97	%							2.27	%
Net interest-earning assets (3)	$	103,114							$	90,947

Average interest-earning assets to interest-bearing liabilities		1.14	%							1.12	%

(1)	Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.

(2)	Net interest margin represents net interest income divided by average total interest-earning assets.

(3)	Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities.

Rate/Volume Analysis

The following table presents the effects of changing rates and volumes on our net interest income for the periods indicated. The rate column shows the effects attributable to changes in rate (changes in rate multiplied by prior volume). The volume column shows the effects attributable to changes in volume (changes in volume multiplied by prior rate). The net column represents the sum of the prior columns. For purposes of this table, changes attributable to both rate and volume, which cannot be segregated, have been allocated to the changes due to rate and the changes due to volume in proportion to the relationship of the absolute dollar amounts of change in each.


	Three Months Ended September 30, 2025 vs. 2024
	Increase (Decrease) Due to						Total Increase (Decrease)
	Volume			Rate			Total Increase (Decrease)
Interest-earning assets:
Loans	$	(1,185	)	$	1,195		$	10
Securities		(5	)		86			81
Other		58			30			88

Total interest-earning assets	$	(1,132	)	$	1,311		$	179

Interest-bearing liabilities:
Interest-bearing checking or NOW	$	3		$	—		$	3
Savings accounts		11			(13	)		(2	)
Certificates of deposit		70			(540	)		(470	)
Money market accounts		(56	)		(130	)		(186	)

Total interest-bearing deposits		28			(683	)		(655	)
Federal Home Loan Bank advances, other borrowings and repurchase agreements		(290	)		(238	)		(528	)

Total interest-bearing liabilities	$	(262	)	$	(921	)	$	(1,183	)

Change in net interest income	$	(870	)	$	2,232		$	1,362

Item 3.

Quantitative and Qualitative Disclosures about Market Risk

An internal interest rate risk analysis is performed at least quarterly to assess the Company’s Earnings at Risk and Value at Risk. As of September 30, 2025, there were no material changes in interest rate risk from the analysis disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2025, as filed with the SEC.

Item 4.

Controls and Procedures

An evaluation was performed under the supervision and with the participation of the Company’s management, including the Company’s principal executive officer and principal financial officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) promulgated under the Securities and Exchange Act of 1934, as amended) as of September 30, 2025. Based upon such evaluation, the principal executive officer and principal financial officer concluded that, as of the end of the period covered by this report, the Company’s disclosure controls and procedures were effective for the purpose of ensuring that the information required to be disclosed in the reports that the Company files or submits under the Exchange Act with the SEC (1) is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and (2) is accumulated and communicated to the Company’s management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.

During the quarter ended September 30, 2025, there have been no changes in the Company’s internal controls over financial reporting that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

Part II – Other Information

Item 1.

Legal Proceedings

The Association and Company are subject to various legal actions arising in the normal course of business. In the opinion of management, the resolution of these legal actions is not expected to have a material adverse effect on the Association’s or the Company’s financial condition or results of operations.

Item 1A.

Risk Factors

In addition to the other information set forth in this report, you should carefully consider the factors discussed in “Item1A.- Risk Factors” in our Annual Report on Form

10-K

for the fiscal year ended June 30, 2025, which could materially affect our business, financial condition or future results of operations. The risks described in our Annual Report on Form

10-K

are not the only risks that we face. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition or results of operations.

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 3.

Defaults Upon Senior Securities

None.

Item 4.

Mine Safety Disclosures

None.

Item 5.

Other Information

During the three months ended September 30, 2025, none of the Company’s directors or executive officers adopted or terminated any contract, instruction or written plan for the purchase or sale of Company securities that was intended to satisfy the affirmative defense conditions of Rule

10b5-1(c)

or any

“non-Rule

10b5-1

trading arrangement,” as that term is used in SEC regulations.

Item 6.

Exhibits


31.1		Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2		Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32		Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*

101		Interactive data files pursuant to Rule 405 of Regulation S-T: (i) the Condensed Consolidated Balance Sheets as of September 30 and June 30, 2025, (ii) the Condensed Consolidated Statements of Income for the three months ended September 30, 2025 and 2024, (iii) the Condensed Consolidated Statements of Comprehensive Income for the three months ended September 30, 2025 and 2024, (iv) the Condensed Consolidated Statements of Stockholders’ Equity for the three months ended September 30, 2025 and 2024, (v) the Condensed Consolidated Statements of Cash Flows for the three months ended September 30, 2025 and 2024, and (vi) the notes to the Condensed Consolidated Financial Statements.

104		Cover Page Interactive Data File (embedded within the Inline XBRL document and included in Exhibit 101)

*	This information is furnished and not filed for purposes of Section 11 and 12 of the Securities Act of 1933 and Section 18 of the Securities Exchange Act of 1934.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


						IF BANCORP, INC.

Date: November 12, 2025						/s/ Walter H. Hasselbring III
						Walter H. Hasselbring III
						Chairman and Chief Executive Officer

Date: November 12, 2025						/s/ Pamela J. Verkler
						Pamela J. Verkler
						Senior Executive Vice President and Chief Financial Officer (Principal Financial Officer)

TABLE OF CONTENTS

Part I. Financial Information Item 1. Financial Statements Note 1: Basis Of Financial Statement Presentation Note 2: New Accounting Pronouncements Note 3: Stock-based Compensation Note 4: Earnings Per Common Share ( Eps )Note 5: Securities Note 6: Loans and Allowance For Credit Losses Note 7: Federal Home Loan Bank Stock Note 8: Federal Home Loan Bank Advances and Other Borrowings Note 9: Accumulated Other Comprehensive Income (loss)Note 10: Changes in Accumulated Other Comprehensive Income (loss) (aoci) By Component Note 11: Income Taxes Note 12: Regulatory Capital Note 13: Disclosures About Fair Value Of Assets Note 14: Commitments Note 15: Subsequent Events Item 2. Management S Discussion and Analysis Of Financial Condition and Results Of Operations Item 3. Quantitative and Qualitative Disclosures About Market Risk Item 4. Controls and Procedures Part II Other Information Item 1. Legal Proceedings Item 1A. Risk Factors Item 2. Unregistered Sales Of Equity Securities and Use Of Proceeds Item 3. Defaults Upon Senior Securities Item 4. Mine Safety Disclosures Item 5. Other Information Item 6. Exhibits

31.1 Certification of Chief Executive Officer pursuant to Section302 of the Sarbanes-Oxley Act of 2002. 31.2 Certification of Chief Financial Officer pursuant to Section302 of the Sarbanes-Oxley Act of 2002. 32 Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section906 of the Sarbanes-Oxley Act of 2002.*

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company