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OSWEGO, Ill. & WATSEKA, Ill. - ServBanc Holdco, Inc., the parent company of Servbank, National Association, has entered into a definitive agreement to acquire IF Bancorp, Inc. (NASDAQ:IROQ) and its subsidiary Iroquois Federal Savings and Loan Association for approximately $89.8 million in cash, according to a press release statement.
Under the terms of the agreement, IF Bancorp shareholders will receive $27.20 per share in cash, subject to potential adjustments outlined in the definitive agreement. The boards of directors of both companies have unanimously approved the transaction. The offer price represents a 7.5% premium to IROQ’s current trading price and sits just 3.8% above its 52-week high of $26.21.
The acquisition represents a strategic expansion for Servbank into central Illinois markets. Iroquois Federal, originally chartered in 1883, operates seven full-service banking offices across Illinois in Watseka, Danville, Clifton, Hoopeston, Savoy, Bourbonnais, and Champaign, plus a loan production office in Osage Beach, Missouri.
Walter H. "Chip" Hasselbring, III, Chairman and Chief Executive Officer of IF Bancorp and Iroquois Federal, said, "We recognize the great opportunity this strategic affiliation with Servbank provides for our clients, customers, communities and employees while satisfying our responsibilities to current shareholders."
Stavros Papastavrou, Chairman of ServBanc Holdco and Servbank, stated that the combination "presents compelling opportunities for our communities, customers, employees and shareholders."
The transaction requires regulatory approval and IF Bancorp shareholder approval. IF Bancorp has indefinitely postponed its 2025 annual shareholder meeting in light of the pending merger.
The acquisition is expected to close in the first quarter of 2026.
Performance Trust Capital Partners, LLC served as financial advisor to ServBanc Holdco, while Keefe Bruyette & Woods, Inc. advised IF Bancorp on the transaction.
In other recent news, IF Bancorp, Inc. has declared a cash dividend of $0.20 per common share. This dividend will be distributed on October 17, 2025, to shareholders recorded as of September 26, 2025. In addition to the dividend announcement, IF Bancorp has entered into an agreement with Stilwell Activist Fund, L.P., and related entities, appointing Scott J. Dworschak to its board of directors. Mr. Dworschak will also join the board of the company’s subsidiary, Iroquois Federal Savings and Loan Association, and will serve until the 2026 annual meeting of stockholders. The agreement with Stilwell Group is set to last until March 31, 2026, or until a defined company transaction occurs. Furthermore, Mr. Dworschak’s appointment was made effective immediately, though his specific committee assignments are yet to be finalized.
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