Servbank to acquire IF Bancorp for $89.8 million

Oswego, Ill.-based ServBanc Holdo is expanding in the central part of the state by acquiring Watseka-based IF Bancorp and its subsidiary Iroquois Federal Savings and Loan Association for nearly $90 million..The all-cash deal was announced Oct. 30 and is expected to close in the first quarter of next year. ServBanc Holdco is the parent company of Servbank NA. As of June 30, the bank, 47 miles southwest of Chicago,had $932 million in assets, $546 million in deposits and $358 million in net loans and leases. The $887 million Iroquois Federal Bancorp has seven branches in Illinois along with a loan production office in Missouri. The bank also has $727 million in deposits and $633 million in net loans and leases. “The combination of two storied franchises presents compelling opportunities for our communities, customers, employees and shareholders,” said Stavros Papastavrou, chair of ServBanc Holdco and Servbank.Chip Hasselbring III, chair and CEO of IF Bancorp and Iroquois Federal, said the partnership meets the mission of his company. “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,” he added. Chicago-based Performance Trust Capital Partners served as financial advisor and Richmond, Va.-based law firm Hunton Andrews Kurth was legal counsel to ServBanc Holdco. New York City-based Keefe, Bruyette & Woods served as financial advisor and Washington, D.C.-based Luse Gorman, PC was legal counsel to IF Bancorp.