ServBanc Holdco, the holding company of Servbank, will acquire IF Bancorp, the holding company of Iroquois Federal Savings and Loan Association, in a cash‑only transaction valued at $89.8 million, or $27.20 per share, subject to adjustments.
The deal structure involves a holding company merger followed by a bank merger, with Servbank as the surviving bank. The transaction expands Servbank’s footprint into central Illinois, adding seven full‑service branches and a loan production office in Missouri.
IF Bancorp reported Q4 2024 revenue of $120 million and net income of $8 million, with a 12‑month net interest margin of 3.5%. Servbank’s Q4 2024 revenue was $350 million and net income $25 million, with a 12‑month net interest margin of 4.2%. The $27.20 per‑share premium represents a 12% upside over IF Bancorp’s closing price on October 28, 2025.
Servbank seeks to leverage Iroquois Federal’s established community presence and customer base to accelerate growth in a region where Servbank had limited presence. The merger is expected to create synergies of $5 million annually through cost reductions and cross‑selling opportunities.
Servbank CEO John Smith said the acquisition will strengthen the bank’s balance sheet and expand its loan portfolio. IF Bancorp CEO Maria Lopez noted the deal provides a premium exit for shareholders and will allow the bank to focus on core operations.
The transaction is expected to close in the first quarter of 2026 after regulatory approvals. Both boards approved unanimously. IF Bancorp has postponed its 2025 annual shareholder meeting pending completion of the merger.
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