| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 405.25 | 1394 |
| Intrinsic value (DCF) | 26.91 | -1 |
| Graham-Dodd Method | 25.66 | -5 |
| Graham Formula | 18.98 | -30 |
IF Bancorp, Inc. (NASDAQ: IROQ) is a savings and loan holding company for Iroquois Federal Savings and Loan Association, serving individual and corporate clients with a comprehensive suite of banking and financial services. Founded in 1883 and headquartered in Watseka, Illinois, the company operates seven full-service banking offices across Illinois and a loan production and wealth management office in Missouri. IF Bancorp offers a diverse range of deposit accounts, including savings, certificates of deposit, and checking accounts, alongside loan products such as residential mortgages, commercial real estate loans, and consumer loans. Additionally, the company provides wealth management services, including insurance, annuities, and retirement planning. With a strong regional presence and a focus on community banking, IF Bancorp leverages digital banking solutions like online and mobile banking to enhance customer convenience. The company’s conservative financial approach, reflected in its low beta (0.342), positions it as a stable player in the regional banking sector.
IF Bancorp presents a conservative investment opportunity with steady revenue ($22.1M in FY 2023) and modest profitability ($1.8M net income). Its low beta suggests resilience to market volatility, appealing to risk-averse investors. However, the company’s small market cap (~$81.3M) and regional focus limit growth scalability. The dividend yield (~1.97% based on a $0.40/share payout) is modest but sustainable given its stable cash flow ($2.3M operating cash flow). Risks include exposure to local economic conditions and competitive pressures from larger banks. Investors should weigh its stability against limited upside potential.
IF Bancorp’s competitive advantage lies in its deep community roots and personalized service, differentiating it from larger, impersonal regional banks. Its diversified product mix—spanning traditional banking, lending, and wealth management—allows cross-selling opportunities. However, its small scale restricts technological investments compared to national peers, potentially hindering digital competitiveness. The company’s loan portfolio, heavily weighted toward residential and commercial real estate, aligns with its regional expertise but exposes it to local property market fluctuations. While its low-cost deposit base supports net interest margins, competition from credit unions and online banks pressures pricing. IF Bancorp’s conservative balance sheet (modest leverage, ample liquidity) mitigates risks but may limit aggressive expansion. Its niche focus on rural and semi-urban Illinois markets provides stability but narrows growth avenues unless it pursues M&A or geographic diversification.