Executive Summary

IF Bancorp delivered stronger profitability in Q1 FY2026: net income rose to $1.39M ($0.43 EPS) vs $0.63M ($0.20) a year ago, driven by net interest margin (NIM) expansion and lower interest expense .
Management cited continued loan repricing and an improved funding mix as key drivers of NIM expansion to 2.97% (vs 2.47% for FY2025) .
Deposits fell to $680.3M from $721.3M sequentially, largely due to $59.3M seasonal withdrawals by a public entity distributing real estate tax receipts; borrowings increased to $87.3M to backfill funding .
Strategic catalyst: company entered a definitive agreement to be acquired by ServBanc Holdco for approximately $27.20 per share in cash, subject to tangible common equity adjustments and regulatory/shareholder approvals; one company director will join Servbank’s board post-close .
Street consensus via S&P Global was not available for EPS or revenue; beat/miss vs estimates cannot be assessed (S&P Global).

What Went Well and What Went Wrong

What Went Well
- Net interest margin expanded to 2.97%, supporting higher net income; management attributed this to continued repricing of the loan portfolio and an improved funding mix in the current rate environment .
- Net interest income increased to $6.18M from $4.82M YoY, while interest expense declined to $4.91M from $6.09M, improving spread dynamics YoY .
- Book value per share improved to $25.22 (from $24.42 on June 30), aided by lower AOCI losses and earnings; equity rose to $84.5M from $81.8M .
What Went Wrong
- Noninterest income decreased to $1.14M from $1.41M YoY, while noninterest expense rose to $5.46M from $5.00M, tempering the operating leverage from NIM gains .
- Asset quality metrics worsened: non‑performing assets rose to $1.06M (0.12% of assets) from $0.21M (0.02%) at June 30; ACL declined modestly to $6.49M from $6.63M .
- Deposits declined $41.0M QoQ (to $680.3M), driven by a $59.3M withdrawal by a public entity related to real estate tax distributions, increasing reliance on borrowings (to $87.3M from $72.9M) .

Financial Results

Summary P&L and ratio comparison (oldest → newest)

Metric	Q3 FY2025 (3/31/25)	Q4 FY2025 (6/30/25)	Q1 FY2026 (9/30/25)
Net Income ($USD Millions)	$1.011	$1.441	$1.392
Diluted EPS ($)	$0.31	$0.45	$0.43
Net Interest Income ($USD Millions)	$5.224	$5.752	$6.183
Noninterest Income ($USD Millions)	$1.176	$1.103	$1.142
Noninterest Expense ($USD Millions)	$5.271	$5.233	$5.463
Provision for Credit Losses ($USD Millions)	($0.262)	($0.371)	($0.042)
Pre‑Tax Income ($USD Millions)	$1.391	$1.993	$1.904
Net Interest Margin (%)	2.38% (9M FY25)	2.47% (FY25)	2.97%
ROAA (%)	—	0.49% (FY25)	0.64%
ROAE (%)	—	5.52% (FY25)	6.69%

Balance sheet and credit KPIs

Metric	3/31/25	6/30/25	9/30/25
Total Assets ($USD Millions)	$879.1	$887.7	$862.3
Cash & Equivalents ($USD Millions)	$8.9	$20.1	$8.0
Investment Securities ($USD Millions)	$184.6	$187.8	$189.8
Net Loans ($USD Millions)	$638.2	$633.6	$619.3
Deposits ($USD Millions)	$684.0	$721.3	$680.3
Borrowings incl. Repos ($USD Millions)	$104.9	$72.9	$87.3
Stockholders’ Equity ($USD Millions)	$78.9	$81.8	$84.5
Book Value per Share ($)	$23.55	$24.42	$25.22
Non‑Performing Assets ($USD Thousands)	$377	$211	$1,057
NPA / Assets (%)	0.04%	0.02%	0.12%
Allowance for Credit Losses ($USD Thousands)	$7,094	$6,627	$6,491
ACL / Total Loans (%)	1.10%	1.04%	1.04%

Notes: For banking “revenue,” we present net interest income and noninterest income separately rather than a single revenue line.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Financial guidance (revenue, margins, opex, tax)	Q1 FY2026	None	None provided	Maintained (no formal guidance)
Dividend	Q4 FY2025	—	$0.20 per share; payable Oct 17, 2025 (record Sep 26, 2025)	Declared
Strategic transaction terms	Announced Oct 30, 2025	—	Cash merger consideration approx $27.20/share, subject to tangible common equity (TCE) adjustments; Minimum Equity $77.8M; Total Cash Consideration $89.8M	New transaction disclosure

Earnings Call Themes & Trends

(Company materials for Q1 FY2026 did not include an earnings call transcript in our document set; themes below reflect press releases and 8-Ks.)

Topic	Previous Mentions (Q3 FY25 and Q4 FY25)	Current Period (Q1 FY26)	Trend
Net interest margin trajectory	Q3: “NIM continued to improve” amid tough deposit competition . Q4: “continued to improve our net interest margin” .	Management highlighted “expansion of our net interest margin”; NIM 2.97% .	Improving
Funding mix & deposit environment	Q3: Deposit competition remained difficult .	Funding mix and loan repricing supported profitability; noted $59.3M seasonal public-entity deposit outflow .	Stabilizing mix; seasonal volatility
Asset quality	NPA 0.04% at 3/31/25 .	NPA rose to 0.12% (to $1.06M); ACL stable at 1.04% of loans .	Deteriorated near-term
Capital/book value	BVPS $23.55 (3/31/25) ; $24.42 (6/30/25) .	BVPS $25.22 (9/30/25) .	Improving
Strategic actions	Q3/Q4: “evaluating and exploring opportunities to enhance shareholder value” .	Announced definitive agreement to be acquired by ServBanc Holdco; one director to join Servbank board .	Executing transaction

Management Commentary

“The quarterly results move our profitability in the right direction as demonstrated by the expansion of our net interest margin. The continued repricing of our loan portfolio and funding mix in the current interest rate environment has contributed to the bottom line.” – CEO Walter H. “Chip” Hasselbring .
“Though interest rates remained unchanged in the quarter ending June 30, 2025, we continued to improve our net interest margin resulting in higher earnings per share and net income than in the prior fiscal year end… the Board and management are always evaluating and exploring opportunities to enhance shareholder value.” – CEO Walter H. “Chip” Hasselbring .
“The Federal Reserve’s easing of short-term rates stalled this quarter and the competitive environment for deposits remains difficult. That being said, our net interest margin continued to improve…” – CEO Walter H. “Chip” Hasselbring .

Q&A Highlights

No Q1 FY2026 earnings call transcript was available in our document set; no Q&A disclosures to summarize.

Estimates Context

S&P Global consensus estimates for Q1 FY2026 were not available for EPS or revenue; therefore, we cannot assess beat/miss versus Street expectations (S&P Global).
S&P Global shows reported revenue (company-reported “actual”) of $7.367M for Q1 FY2026, but no consensus mean was available to compare; EPS consensus was also unavailable (S&P Global).

Values retrieved from S&P Global.

Metric	Q1 FY2026
Primary EPS Consensus Mean	N/A (S&P Global)
Revenue Consensus Mean	N/A (S&P Global)
Reported Revenue (Actual)	$7.367M (S&P Global)

Key Takeaways for Investors

Profitability improved sequentially and YoY as NIM expanded and interest expense fell; EPS of $0.43 compares to $0.45 in Q4 FY2025 and $0.31 in Q3 FY2025 .
Funding dynamics were volatile due to seasonal public‑entity deposit withdrawals ($59.3M), but equity and book value strengthened; borrowings rose to support liquidity .
Asset quality requires monitoring: NPAs rose to 0.12% of assets (from 0.02% at June 30) even as ACL/loans remained 1.04% .
Strategic catalyst dominates near‑term narrative: definitive agreement to be acquired for approximately $27.20 per share cash, subject to TCE adjustments and regulatory/shareholder approvals .
Dividend support remains evident with a $0.20/share payment in October (declared August 13), though future distributions are subject to merger timelines and closing .
With no available Street consensus, focus on internal drivers: sustained NIM improvement, disciplined opex, and funding mix amid seasonal deposit flows should frame interim performance until transaction close .
Watch regulatory approvals, shareholder vote, and TCE‑based price adjustments as key closing risks/variables; one IROQ director is expected to join Servbank’s board post‑close .

Citations:

Q1 FY2026 results and KPIs:
Q4 FY2025 results and KPIs:
Q3 FY2025 results and KPIs:
Merger agreement details:

IF Bancorp, Inc. (IROQ)·Q1 2026 Earnings Summary