ServBanc Holdco, Inc. and IF Bancorp, Inc. have secured final regulatory approval for their merger, clearing the last hurdle before the transaction can close in the first quarter of 2026.
The deal values IF Bancorp at $27.20 per share in cash, a 7.5% premium to the stock’s closing price at the time of the agreement and 3.8% above its 52‑week high of $26.21. The transaction is worth approximately $89.8 million and represents roughly 1.02 times IF Bancorp’s tangible book value.
Strategically, the merger expands Servbank’s presence into central Illinois, where IF Bancorp’s Iroquois Federal Savings and Loan Association operates. The combined entity will leverage Servbank’s technology platform and broader service offering to enhance customer experience, while the integration is expected to deliver cost savings and operational synergies through shared back‑office functions and cross‑selling opportunities.
IF Bancorp shareholders will vote on the merger on February 3, 2026. Upon approval, the parties anticipate closing the transaction in the first quarter of 2026, after completing the necessary integration planning and regulatory compliance steps.
Financially, IF Bancorp reported a 24.68% revenue growth over the last twelve months, with total revenue of $26.77 million. The company’s three‑year revenue growth rate is –2.6%, while earnings grew 160.7% over the past year, though the three‑year earnings growth rate is –9.4%. These figures provide context for the premium paid and illustrate the company’s recent profitability momentum despite modest revenue growth.
Analysts have assigned a “Hold” rating to IF Bancorp’s stock, citing strong revenue growth but noting cash‑flow challenges. The market’s cautious stance reflects the premium paid and the need for the combined entity to demonstrate that the projected synergies and cost savings will materialize.
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