IF Bancorp, Inc. 8-K

What Happened
IF Bancorp, Inc. (IROQ) filed an 8-K on March 10, 2026 reporting that, on March 9, 2026, it and ServBanc Holdco, Inc. entered a Contingent Payment Agreement related to a loan participation of Iroquois Federal Savings & Loan Association ahead of their planned merger. The parties expect to close the Merger (per the October 29, 2025 Merger Agreement) on March 12, 2026. Under the Agreement, the Bank may renew a loan participation of $13,995,617 for a 120‑day period (with a possible 60‑day extension) if it establishes a $7,000,000 specific reserve. ServBanc will deposit $5,004,650 (the “Contingent Payment Fund”) into a contingent payment account; those funds may be distributed pro rata to IF Bancorp common stockholders only if the Loan is repaid in excess of the unreserved amount during the Renewal Period.

Key Details

• Loan participation amount: $13,995,617.
• Required reserve against the Loan: $7,000,000.
• Contingent Payment Fund deposited by ServBanc: $5,004,650 (net of certain expenses before distribution).
• Renewal Period: 120 days, with a potential 60‑day extension; funds paid only if repayment exceeds the unreserved loan amount during that period; otherwise funds revert to ServBanc.
• Merger cash consideration preliminarily expected to be $26.40 per share (excluding any contingent payment). If the full Contingent Payment Fund is distributed to stockholders, it would add roughly $1.51 per share (net of estimated fees/expenses).

Why It Matters
This agreement affects the amount and timing of potential cash coming to IF Bancorp shareholders in connection with the announced merger. The $5.0M contingent fund is conditional — shareholders will receive it only if the loan is repaid above the unreserved portion during the limited Renewal Period. If repayment does not occur, the fund reverts to ServBanc and the per‑share merger cash remains the stated $26.40. The filing underscores that the contingent payment is uncertain and subject to the events and risks described in the merger filings.