IF Bancorp, Inc. Acquisition by ServBanc Holdco, Inc. - Key Investor Update

For investors and followers of IF Bancorp, Inc. (formerly traded as IROQ), a major change has taken place: ServBanc Holdco, Inc. has acquired the company. This acquisition marks the end of IF Bancorp as an independent public entity, directly impacting its former shareholders, employees, and customers.

Here's a clear breakdown of what happened and what it means:

1. The Core Event: Acquisition and Cash Payout

ServBanc Holdco, Inc. has fully acquired IF Bancorp, Inc., including its banking subsidiary, Iroquois Federal Savings and Loan Association. As a result:

• IF Bancorp is no longer an independent public company.
• Its stock, IROQ, ceased trading and delisted from the Nasdaq stock market.
• Former IF Bancorp shareholders received $26.40 in cash for each share they owned.
• ServBanc also established a contingent payment fund of over $5 million. This fund may pay former shareholders an additional amount, estimated at up to $1.51 per share. However, this payment is not guaranteed; it depends on the future repayment of a specific, previously identified loan.

2. The Timeline

• The merger officially closed on the evening of March 12, 2024.
• Nasdaq suspended and removed trading in IF Bancorp's stock (IROQ) before the market opened on March 13, 2024.
• This acquisition resulted from a planned transaction initially announced in a definitive Merger Agreement in October 2023.

3. Strategic Rationale: Why This Happened

This acquisition was a strategic move for both companies:

• For ServBanc Holdco, Inc.: The acquisition allows ServBanc to expand its geographic reach, market share, and operational scale within the competitive banking sector. ServBanc likely aimed to leverage IF Bancorp's customer base and branch network to drive growth and achieve operational efficiencies.
• For IF Bancorp, Inc.: The merger offered IF Bancorp shareholders an opportunity to receive immediate, certain value for their investment at a premium. For smaller financial institutions, mergers can help address increasing regulatory burdens, capital requirements, and competitive pressures by joining a larger, more diversified entity.

4. Impact on Stakeholders

• Former Shareholders: Your IF Bancorp investment converted to cash. While you no longer participate in the company's future performance, you received a fixed cash payment with the potential for an additional contingent payment.
• Company Structure: IF Bancorp's legal structure, including its Articles of Incorporation and Bylaws, is no longer valid. The company will stop filing reports with the SEC. Its banking subsidiary, Iroquois Federal Savings and Loan Association, merged into Servbank, National Association (ServBanc's banking entity).
• Employees and Management: IF Bancorp's directors and executive officers no longer hold their previous roles. However, ServBanc appointed Walter H. Hasselbring III, IF Bancorp's former CEO, as a director of Servbank, National Association, providing some continuity. ServBanc will likely integrate other employees into its operations.
• Customers: Customers of Iroquois Federal Savings and Loan Association are now Servbank, National Association customers. They can expect changes to branding, services, or branch operations as the integration progresses.

5. Understanding the Contingent Payment

The potential additional payment of up to $1.51 per share depends on the repayment of a specific, previously identified loan. This loan often relates to a non-performing asset or a particular commercial borrower IF Bancorp held before the merger.

• Key Detail: The payment is contingent on the successful and full repayment of this specific loan.
• Risk: ServBanc does not guarantee repayment of this loan, in full or at all. Therefore, the contingent payment might not materialize or could be less than the estimated $1.51 per share. Investors should view this as a potential bonus, not guaranteed income.

6. What Happens Next

• ServBanc will continue integrating IF Bancorp's operations, systems, and customer base.
• ServBanc will formally terminate IF Bancorp's reporting obligations with the SEC.
• Former IF Bancorp shareholders should monitor communications from ServBanc or their brokerage for updates on the contingent payment.

7. Key Investor Considerations

• No More Trading: IF Bancorp (IROQ) stock is no longer traded. You cannot buy or sell shares.
• Cash Received: You should have received your $26.40 per share cash payment.
• Contingent Payment Uncertainty: The additional $1.51 per share is a potential bonus, but it is not guaranteed. Do not consider it certain income in your investment calculations.
• Finality: This transaction marks the definitive end of IF Bancorp as a public investment.