IF Bancorp (IROQ) AI Stock Analysis

• Market Cap: $93.00M
• Dividend Yield: 1.48%
• Average Volume (3M): 7.75K
• Price to Earnings (P/E): 17.4
• Beta (1Y): -0.09
• Revenue Growth: 1.93%
• EPS Growth: 157.35%
• Country: US
• Employees: 109
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.41
• Shares Outstanding: 3,351,526
• 10 Day Avg. Volume: 4,179
• 30 Day Avg. Volume: 7,755
• PEG Ratio: 0.13
• Price to Book (P/B): 0.97
• Price to Sales (P/S): 1.65
• P/FCF Ratio: 12.24
• Enterprise Value/Market Cap: 1.82
• Enterprise Value/Revenue: 3.53
• Enterprise Value/Gross Profit: 5.94
• Enterprise Value/Ebitda: 24.28
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: $29.00 ▲(8.70% Upside)
• Action: Reiterated Date: 02/13/26
• Date: Action: Reiterated 02/13/26

The score is driven primarily by improving profitability and strong cash conversion, tempered by sharp revenue volatility and increased leverage. Technicals are mildly supportive, valuation is neutral-to-slightly supportive, and the pending merger is a constructive catalyst but carries legal and integration-related risk.

Positive Factors

Strong cash generation

Free cash flow nearly equals reported net income and grew strongly in the TTM, indicating core earnings reliably convert to cash. This durable cash generation supports capital needs, deposit flexibility, and gives acquirers or management optionality for investment, dividends, or loan loss absorption.

Improving profitability margins

Material margin recovery over recent periods shows operating leverage and margin sustainability returning after prior compression. Higher and improving net margins support internal capital generation and resilience to cyclical pressure, helping long-term ROI on the bank's loan and deposit franchise.

Merger progress with approvals and shareholder vote

Regulatory approvals and shareholder consent for the pending ServBanc merger create a structural shift: potential scale, expanded deposit base, and combined operations. If closed, the transaction can strengthen competitive position, broaden product reach and drive cost synergies over the medium term.

Negative Factors

Severe revenue volatility

A very steep TTM revenue decline signals unstable top-line drivers and reliance on episodic items or mix shifts. Persistent revenue volatility undermines forecasting, makes margin recovery harder to sustain, and increases execution risk for funding loan growth or supporting expense base.

Rising leverage

Material increase in leverage versus prior years reduces financial flexibility and raises interest and refinancing exposure. Higher debt ratios constrain capital management, increase sensitivity to rate or funding stress, and limit the bank's ability to absorb credit shocks or pursue organic growth.

Merger litigation and disclosure issues

Ongoing lawsuits and supplemental disclosures create legal and execution risk that can delay or alter merger economics. Protracted litigation increases costs, distracts management, and could force deal adjustments, reducing the certainty of anticipated synergies and prolonging integration uncertainty.

IF Bancorp Business Overview & Revenue Model

Company Description

IF Bancorp, Inc. operates as the savings and loan holding company for Iroquois Federal Savings and Loan Association that provides a range of banking and financial services to individual and corporate clients. The company offers various deposit accounts, including savings accounts, certificates of deposit, money market accounts, commercial and personal checking accounts, individual retirement accounts, and health savings accounts. It also provides loans comprising one- to four-family residential mortgage loans; multi-family mortgage loans; commercial real estate loans, such as farm loans; home equity lines of credit; commercial business loans; and consumer loans primarily consisting of automobile loans, as well as construction loans and land development loans. In addition, the company sells property and casualty insurance, as well as offers annuities; mutual funds; individual and group retirement plans; life, disability, and health insurance; individual securities; managed accounts; and other financial services. Further, it invests in securities; and provides ATM, online banking and bill pay, mobile banking, ACH origination, remote deposit capture, and telephone banking services. As of August 31, 2021, it operated a network of seven full-service banking offices located in Watseka, Danville, Clifton, Hoopeston, Savoy, Bourbonnais, and Champaign, Illinois; and a loan production and wealth management office in Osage Beach, Missouri. IF Bancorp, Inc. was founded in 1883 and is headquartered in Watseka, Illinois.

How the Company Makes Money

IF Bancorp generates revenue primarily through interest income from loans and fees associated with various banking services. The key revenue streams include interest earned on mortgage loans, commercial loans, and consumer loans, which typically represent the largest portion of the company's income. Additionally, IF Bancorp earns non-interest income from service charges on deposit accounts, transaction fees, and other banking services. The company's profitability is influenced by its net interest margin, which is the difference between the interest earned on loans and the interest paid on deposits. Effective cost management and a focus on maintaining a strong loan portfolio also contribute to its overall earnings. Any strategic partnerships, such as collaborations with local businesses or community organizations, can enhance customer acquisition and retention, further supporting revenue growth.

IF Bancorp Financial Statement Overview

Summary

Profitability is recovering (net margin improved to 8.9% in 2025 annual and 10.8% TTM), and cash conversion is strong (FCF ~0.96–0.98x net income). Offsetting this, revenue is highly volatile (TTM revenue growth -77.2%) and leverage has risen meaningfully versus 2021–2023 (debt-to-equity ~0.89–0.96 recently).

Income Statement

Profitability rebounded meaningfully versus prior annual periods: net margin improved from 3.9% (2024) to 8.9% (2025 annual) and 10.8% in TTM (Trailing-Twelve-Months), with operating margins also higher. However, the top line is volatile—TTM revenue shows a steep decline (-77.2% growth rate) after modest growth in the latest annual period (+6.6%) and stronger growth in 2024 (+25.4%). Earlier years (2021–2022) show much stronger margins than recent periods, highlighting a multi-year compression and recovery pattern rather than steady expansion.

Balance Sheet

Leverage is moderate-to-elevated for the recent periods: debt-to-equity is ~0.89 (2025 annual) and ~0.96 in TTM (Trailing-Twelve-Months), up from much lower levels in 2021–2023 (~0.34–0.42), indicating a meaningful leverage build. Equity remains substantial (roughly $82–$87M recently) and return on equity has improved versus 2024 (2.4%) to ~5.3% (2025 annual) and ~6.2% (TTM), but it is still below the stronger levels seen in 2022 (~8.1%). Total assets are broadly stable to slightly lower recently versus 2024–2025 annual levels.

Cash Flow

Cash generation is a relative strength: free cash flow is close to net income in both the latest annual period (~0.96x) and TTM (Trailing-Twelve-Months) (~0.98x), suggesting earnings are translating into cash. Free cash flow growth is strong in TTM (+44.9%) and positive in the latest annual period (+2.2%), and operating cash flow is consistently positive across periods. A weak spot is the provided operating cash flow coverage figure (notably 0.0 in TTM), which raises questions about debt service/coverage quality in the dataset even as cash flow itself looks solid.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	47.81M	48.37M	45.37M	36.17M	30.29M	30.59M
Gross Profit	28.46M	26.47M	22.08M	26.32M	27.27M	25.56M
EBITDA	6.96M	6.54M	3.03M	6.92M	8.50M	8.06M
Net Income	5.17M	4.30M	1.79M	4.66M	5.78M	5.35M
Balance Sheet
Total Assets	830.38M	887.66M	887.75M	848.98M	857.56M	797.34M
Cash, Cash Equivalents and Short-Term Investments	192.44M	4.97M	200.30M	213.54M	298.22M	254.88M
Total Debt	83.61M	72.92M	76.02M	30.29M	24.24M	34.24M
Total Liabilities	743.01M	805.82M	813.83M	777.22M	785.90M	712.04M
Stockholders Equity	87.37M	81.84M	73.92M	71.75M	71.66M	85.30M
Cash Flow
Free Cash Flow	5.91M	6.52M	2.04M	516.00K	8.28M	6.59M
Operating Cash Flow	6.01M	6.76M	2.28M	2.77M	8.67M	6.87M
Investing Cash Flow	64.38M	14.06M	-39.75M	-57.12M	-68.80M	-36.04M
Financing Cash Flow	-67.51M	-10.30M	36.05M	-10.47M	73.21M	58.44M

IF Bancorp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 26.68
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IROQ, the sentiment is Positive. The current price of 26.68 is below the 20-day moving average (MA) of 27.61, below the 50-day MA of 27.21, and above the 200-day MA of 25.64, indicating a bullish trend. The MACD of 0.17 indicates Positive momentum. The RSI at 56.51 is Neutral, neither overbought nor oversold. The STOCH value of 61.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IROQ.

IF Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LSBK	78 Outperform	$119.31M	15.96	6.28%	2.12%	2.27%	66.15%
AUBN	69 Neutral	$84.20M	11.61	8.22%	4.16%	24.17%	739.42%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
IROQ	62 Neutral	$93.00M	17.37	6.20%	1.48%	1.93%	157.35%
PBHC	54 Neutral	$81.07M	-13.78	2.26%	2.86%	0.84%	―
SSBI	45 Neutral	$87.26M	12.94	-1.41%	―	-0.81%	-129.22%

IF Bancorp Corporate Events

IF Bancorp shareholders approve pending merger with ServBanc

On February 3, 2026, IF Bancorp, Inc. announced that its shareholders approved the company’s pending merger with ServBanc Holdco, Inc. at a special shareholders’ meeting held the same day. The parties indicated that, subject to the satisfaction of customary closing conditions, they expect to complete the merger on March 12, 2026, marking a key milestone in IF Bancorp’s strategic transaction process and signaling an impending change in ownership structure and future operations for the company and its stakeholders.

The most recent analyst rating on (IROQ) stock is a Buy with a $30.00 price target. To see the full list of analyst forecasts on IF Bancorp stock, see the IROQ Stock Forecast page.

IF Bancorp issues supplemental proxy amid merger litigation

On October 29, 2025, IF Bancorp, Inc. agreed to a multi-step merger with ServBanc Holdco, Inc., under which IF Bancorp will first merge into SBHI Holdings, Inc., then into ServBanc itself, followed by the merger of its banking subsidiary, Iroquois Federal Savings and Loan Association, into Servbank, National Association. After the definitive proxy statement for the transaction was filed on December 30, 2025 and mailed to shareholders, purported shareholders filed two lawsuits in New York in January 2026 and sent four demand letters alleging the proxy was false and misleading and that the company and its directors were negligent or liable for misrepresentation; IF Bancorp denies all allegations but, to prevent delays to the shareholder meeting and closing and to avoid litigation costs, it has issued supplemental proxy disclosures, including additional detail on valuation multiples, selected transactions, discount-rate assumptions, its financial advisor’s fee structure, and unaudited prospective financial information for 2025 and 2026 used in the board’s and financial advisor’s analyses.

The most recent analyst rating on (IROQ) stock is a Hold with a $29.00 price target. To see the full list of analyst forecasts on IF Bancorp stock, see the IROQ Stock Forecast page.

IF Bancorp, ServBanc secure approvals for planned merger

On January 14, 2026, ServBanc Holdco, Inc. and IF Bancorp, Inc. announced that they had received all required regulatory approvals to proceed with their pending merger, including the merger of their subsidiary banks, Servbank, National Association and Iroquois Federal Savings and Loan Association. The parties said they expected to close the transaction in the first quarter of 2026, contingent on customary closing conditions, notably approval from IF Bancorp shareholders at a special meeting scheduled for February 3, 2026, underscoring that successful completion would advance their consolidation plans but still carries execution and integration risks for customers, employees and investors.

The most recent analyst rating on (IROQ) stock is a Hold with a $26.00 price target. To see the full list of analyst forecasts on IF Bancorp stock, see the IROQ Stock Forecast page.