Savings Institution, Federally CharteredIFRS · EUR

IF Bancorp, Inc.

IF Bancorp, Inc. is the holding company for Iroquois Federal, a federally chartered savings institution based in Watseka, Illinois. It gathers deposits, makes consumer and commercial loans, and supplements traditional banking with insurance, brokerage, annuity, and wealth-management services through affiliated and third-party channels.

Net income4.3m EUR
+140.4 %y/y
Free cash flow6.5m EUR
+220.2 %y/y

Fiscal year 2025 · change from previous year

Development 2020–2025

01m EUR202020212022202320242025
RevenueOperating profit (EBIT)

Business

Share of revenue
Deposit accounts35 %

Core funding products including savings, checking, money market and CDs.

Lending45 %

Consumer, mortgage and commercial loans that generate net interest income.

Fee-based banking services7 %

Customer service fees and transaction services such as bill pay and ACH.

Insurance agency6 %

Property and casualty insurance products sold through the subsidiary agency.

Wealth management and brokerage7 %

Annuities, mutual funds, securities and managed accounts offered through affiliates.

Customers

The company serves retail households, small businesses, and local commercial borrowers in its Illinois and Missouri markets. Deposits are sourced mainly from communities around its branch network, while loans are extended to consumers, homeowners, farmers and local businesses that need relationship-based banking. It also sells insurance and investment products to existing banking customers seeking one-stop financial services.

Retail deposit customers

Individuals and households that place savings, checking, money market and CD balances with the bank for convenience and local relationship banking.

Mortgage and consumer borrowers

Homebuyers and consumers using mortgage, home-related and personal lending products for local underwriting and service.

Small business and commercial customers

Local businesses that need operating deposits, ACH, treasury-style services and commercial loans.

Insurance and wealth management clients

Bank customers and local residents buying insurance, annuities, retirement plans and brokerage services.

Retirement-oriented borrowers in Missouri

Residents in the Lake of the Ozarks area who support mortgage demand and wealth-management cross-sell.

Strategy

The company is focused on relationship banking in its core Illinois markets while using a Missouri office to expand mortgage and wealth-management activity. Management also emphasizes cross-selling insurance and investment products to deepen customer relationships and diversify fee income beyond spread-based banking. A pending merger with ServBanc Holdco, Inc. is part of the current strategic backdrop and could reshape the platform if completed.

Grow core deposits and local lending relationshipsShort term

Low-cost local funding and relationship lending are central to spread income and franchise value.

Increase noninterest income through cross-sellMedium term

Insurance and wealth-management products reduce reliance on net interest margin.

Develop the Osage Beach marketMedium term

The Lake of the Ozarks region offers mortgage demand and retirement-related financial services opportunities.

Complete or manage the ServBanc merger processShort term

The transaction could alter scale, operating structure and execution priorities.

Geography

Business is concentrated in eastern Illinois, especially the communities surrounding the bank's offices in Iroquois and Vermilion Counties. The company also operates in Champaign and Kankakee Counties and has a loan production and wealth-management office in Osage Beach, Missouri serving the Lake of the Ozarks region. Geography matters because deposit gathering is highly local, while the Missouri office targets a growing retirement and permanent-residence market that supports mortgage demand.

Risks

Earnings are highly sensitive to interest-rate movements because the business depends on net interest income from deposits, loans and borrowings. The company also faces local competition for both deposits and loans, plus operational and cybersecurity risk from high transaction volumes and third-party service providers. Credit quality can weaken if customer supply chains, federal funding or local economic conditions disrupt borrowers' cash flow.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Interest rate sensitivity1Cybersecurity and third-party processing risk2Borrower credit deterioration3Local deposit and loan competition4
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Interest rate sensitivityImpact: HighLikelihood: Medium

    Profitability depends on the spread between asset yields and funding costs.

    Exposure: Net interest income and margin

  2. Cybersecurity and third-party processing riskImpact: HighLikelihood: Medium

    The company relies on vendors and internal controls to process customer transactions and protect data.

    ExposureOperationsReputationRegulatory scrutiny
  3. Borrower credit deteriorationImpact: HighLikelihood: Medium

    Supply-chain disruptions, federal funding changes or local downturns can impair repayment capacity.

    Exposure: Loan losses and provision expense

  4. Local deposit and loan competitionImpact: MediumLikelihood: Medium

    The bank competes with banks, credit unions, mortgage brokers and insurers in its markets.

    Exposure: Growth and pricing

  5. Merger execution riskImpact: Medium

    A delayed or disrupted ServBanc transaction could distract management and affect strategic plans.

    Exposure: Integration and timing

Accounting

Judgemental items
Allowance for credit losses

Management judgment on borrower risk directly affects provision expense and earnings.

Impact: Loan loss reserve and net income

Net interest income recognition

Yield and funding-cost changes flow quickly through reported spread income.

Impact: Core earnings and margin

Fee income recognition

Insurance commissions, brokerage income and mortgage banking fees can vary with transaction timing.

Impact: Noninterest income volatility

Fair value of securities

Market movements can affect investment valuations and comprehensive income.

Impact: Equity and reported gains/losses

Publicly listed companies with a comparable business focus.

Last updated: 24/09/2026

IF Bancorp, Inc. – Savings Institution, Federally Chartered | Financial Analysis – Clarifo