IF Bancorp, Inc. reported unaudited net income of $1.4 million, or $0.43 per basic and diluted share, for the three months ended September 30, 2025. The result represents a 120% increase from the $633,000 net income reported for the same period a year earlier and a turnaround from the $0.5 million net loss recorded in the fourth quarter of fiscal 2025. Total assets stood at $862.3 million, down from $887.7 million at the end of June, while deposits were $680.3 million, a decline from $721.3 million.
The company attributed the earnings improvement to a continued repricing of its loan portfolio and a reduction in funding costs. Interest income rose modestly, while interest expense fell significantly, widening the net interest margin. Additionally, the credit‑loss provision shifted from an expense in the prior year to a credit in the current quarter, further boosting net income.
IF Bancorp is being acquired by ServBanc Holdco, Inc. for approximately $89.8 million in cash, or $27.20 per share. The transaction is expected to close in the first quarter of 2026 and has led to the postponement of IF Bancorp’s 2025 annual shareholder meeting.
The earnings release highlighted that commercial lending and multi‑family real estate loans are the primary drivers of net interest income. While deposits and total assets declined, the merger expands IF Bancorp’s commercial lending footprint and product offerings in the Midwest. Management noted that deposit outflows and a competitive banking environment present short‑term headwinds, but the strategic alliance positions the company for continued growth.
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