BCOW 8-K
1895 Bancorp of Wisconsin, Inc. /MD/ (BCOW)
8-K
2022-05-11
For: 2022-05-11
View Original
Added on
April 06, 2026
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): May 11, 2022
(Exact Name of Registrant as Specified in Charter)
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(State or Other Jurisdiction
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(Commission File No.)
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(I.R.S. Employer
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(Address of Principal Executive Offices)
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Registrant's telephone number, including area code: (414 ) 421-8200
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Securities registered pursuant to Section 12(b) of the Act:
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Title of each class
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Trading
Symbol(s)
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Name of each exchange on which registered
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter)
or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☒
If an emerging growth company, indicate by check mark if the registrant has
elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition
On May 11, 2022, 1895 Bancorp of Wisconsin, Inc., the holding company to PyraMax Bank, FSB, announced its financial
results for the quarter ended March 31, 2022. The press release containing the financial results is included as Exhibit 99.1 to this Current Report on Form 8-K and shall not be deemed “filed” for any purpose.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
Exhibit Description
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104
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Cover Page Interactive Data File (embedded within the inline XBRL document)
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned, hereunto duly authorized.
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1895 BANCORP OF WISCONSIN, INC.
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DATE: May 11, 2022
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By:
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/s/ Richard B. Hurd
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Richard B. Hurd
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Chief Executive Officer
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EXHIBIT 99.1
FOR IMMEDIATE RELEASE
Contact: Richard B. Hurd
Telephone: (414) 235-5207
1895 Bancorp of Wisconsin, Inc., Greenfield, Wisconsin
Announces Financial Results for the Quarter Ended March 31, 2022
Greenfield, Wisconsin – May 11, 2022 - 1895 Bancorp of
Wisconsin, Inc., (NASDAQ: BCOW) (the “Company”), the holding company for PyraMax Bank, today announced unaudited financial results for the quarter ended March 31, 2022.
Financial Summary
Net Income. The Company recorded
a net loss of $55,000 for the three months ended March 31, 2022, a decrease of $576,000 from net income of $521,000 recorded for the three months ended March 31, 2021. This decrease was primarily due to a $1.2 million decrease in non-interest income,
which was partially offset by a $279,000 increase in net interest income after provision for loan losses, a $221,000 decrease in income tax expense and a $143,000 decrease in non-interest expense.
Net Interest Income. Net interest
income increased $384,000, or 12.2%, to $3.5 million for the three months ended March 31, 2022, from $3.2 million for the three months ended March 31, 2021. This increase was due to a $269,000 increase in interest income and a $115,000 decrease in
interest expense. Our net interest rate spread increased 18 basis points to 2.71% for the three months ended March 31, 2022, from 2.53% for the three months ended March 31, 2021. Our net interest margin also increased 18 basis points to 2.85% from
2.67% over the same period.
Interest and Dividend Income. Interest
and dividend income increased $269,000, or 7.4%, to $3.9 million for the three months ended March 31, 2022, from $3.6 million for the three months ended March 31, 2021. The increase was due primarily to an increase in interest earned on taxable
securities, which increased $281,000, or 105.2% from $267,000 in the first quarter of 2021 to $548,000 in the first quarter of 2022. This increase was primarily due to the Company’s strategy to deploy excess liquidity into securities, which resulted
in the average outstanding balance of securities increasing $73.7 million, or 122.2%, from $60.3 million for the first quarter of 2021 to $134.0 million for the first quarter of 2022.
Interest Expense. Interest
expense decreased $115,000, or 25.2%, to $341,000 for the three months ended March 31, 2022, from $456,000 for the three months ended March 31, 2021. This decrease was primarily due to a decline in the cost of our interest-bearing deposits, which
decreased 13 basis points from 0.37% for the first quarter of 2021 to 0.24% for the first quarter of 2022. This decline was primarily due to the continued low interest rate environment.
Provision for Loan Losses. Provision
for loan losses for the three months ended March 31, 2022 was $105,000 compared to zero for the three months ended March 31, 2021.
Non-interest Income. Non-interest income decreased $1.2 million, or 75.7%, to $391,000 for the three months ended March 31, 2022, from $1.6 million for the three months
ended March 31, 2021. The decrease was primarily the result of a $489,000 decrease in net gain on sale of loans, a $397,000 decrease in loan servicing fees and a $341,000 decline in the market value of marketable equity securities. The decrease in
the net gain on sale of loans was primarily due to the decrease in the sale of mortgage loans held for sale, which decreased $33.6 million, from $40.4 million in the first quarter of 2021 to $6.8 million in the first quarter of 2022. The reduction
in loan servicing fees was primarily the result of a
$369,000 decrease in the valuation allowance for our mortgage servicing rights during the first quarter of 2021. The decrease in the market value of
marketable equity securities was due to a decrease in the market value of mutual funds held in our deferred compensation plan.
Non-interest Expense. Non-interest
expense decreased $143,000, or 3.5%, to $3.9 million for the three months ended March 31, 2022 from $4.1 million for the three months ended March 31, 2021. This decrease was primarily due to a $170,000 decrease in salaries and employee benefits.
The decrease in salaries and benefits was due primarily to a $341,000 decrease in the market value of mutual funds held in our deferred compensation plan, offset by $197,000 increase in the accrual for discretionary bonus expense.
Total Assets. Total assets
increased $6.7 million, or 1.2%, to $546.3 million at March 31, 2022 from $539.6 million at December 31, 2021. This increase was primarily due to a $20.3 million increase in available-for-sale securities and a $3.0 million increase in other assets,
offset by a $16.2 million decrease in cash and cash equivalents.
Cash and Cash Equivalents. Cash
and cash equivalents decreased $16.2 million, or 24.3%, to $50.6 million at March 31, 2022 from $66.8 million at December 31, 2021. This decrease was primarily due to the purchase of $31.2 million in available-for-sale securities, $7.0 million in
principal payments on FHLB advances and $6.5 million in originations of mortgage loans held for sale, partially offset by $10.0 million from the issuance of an FHLB advance, $6.8 million from the sale of mortgage loans held for sale, a $6.5 increase
in deposits and $3.7 million from maturities, prepayments and calls of available-for-sale securities.
Available-for-Sale Securities.
Available for sale securities increased $20.3 million, or 18.0%, to $132.7 million at March 31, 2022, from $112.4 million at December 31, 2021. The increase was primarily due to purchases of securities totaling $31.2 million during the three months
ended March 31, 2022, partially offset by maturities, prepayments and calls of securities totaling $3.7 million and a reduction in the unrealized gain held within the portfolio of $7.1 million. The purchases consisted primarily of
government-sponsored mortgage-backed securities, which increased $12.4 million and U.S. Treasury notes, which increased $8.5 million.
Net Loans. Net loans decreased
$103,000, to $323.7 million at March 31, 2022, from $323.8 million at December 31, 2021.
Deposits. Deposits increased $6.5
million, or 1.7%, to $391.0 million at March 31, 2022, from $384.5 million at December 31, 2021.
Borrowings. Borrowings,
consisting entirely of FHLB advances, increased $3.0 million, or 5.4%, to $58.4 million at March 31, 2022, from $55.4 million at December 31, 2021. The increase was due to an advance of $10.0 million borrowed during the quarter ended March 31, 2022,
offset by maturities and principal repayments on existing advances of $7.0 million.
Total Stockholders’ Equity. Total
stockholders’ equity decreased $5.7 million to $85.2 million at March 31, 2022, from $90.9 million at December 31, 2021. The decrease was primarily due to a $7.1 million increase in the gross unrealized losses on available-for-sale securities, which
net of taxes, resulted in a $5.2 million decrease in stockholders’ equity.
About 1895 Bancorp of Wisconsin, Inc.
1895 Bancorp of Wisconsin, Inc. is the savings and loan holding company for PyraMax Bank. The Company’s stock trades on the NASDAQ Capital Market under the
symbol “BCOW”. PyraMax Bank was established in 1895 as South Milwaukee Savings and Loan Association and has operated in the Milwaukee, Wisconsin market since that time. PyraMax Bank is a full-service stock savings bank with its corporate office in
Greenfield, Wisconsin, servicing customers in Milwaukee, Waukesha and Ozaukee counties through our six banking offices.
Forward-Looking Statements
This release may contain certain “forward-looking statements” that represent 1895 Bancorp of Wisconsin, Inc.’s current expectations or
beliefs concerning future events. Forward-looking statements can be identified by the use of words such as “estimate,” “project,” “believe,” “intend,” “anticipate,” “assume,” “plan,” “seek,” “expect,” “will,” “may,” “should,” “indicate,” “would,”
“believe,” “contemplate,” “continue,” “target” and words of similar meaning. Forward-looking statements are subject to numerous risks and uncertainties, as described in the “Risk Factors” disclosures included in our Registration Statement on Form
S-1, initially filed with the U.S. Securities and Exchange Commission (the “SEC”) on March 3, 2021, as supplemented in our subsequent Quarterly Reports on Form 10-Q and other reports that we file with the SEC. Our SEC filings are available free of
charge at www.sec.gov. Because of the risks and uncertainties inherent in forward-looking statements, readers are cautioned not to place undue reliance on
them, whether included in this news release or made elsewhere from time to time by 1895 Bancorp of Wisconsin, Inc. or on its behalf. 1895 Bancorp of Wisconsin, Inc. disclaims any obligation to update such forward-looking statements.
1895 BANCORP OF WISCONSIN, INC.
Condensed Consolidated Balance Sheets -Unaudited
(In thousands)
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3/31/2022
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3/31/2021
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Assets
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Cash and cash equivalents
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$ 50,586
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$ 83,481
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Available for sale securities, stated at fair value
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132,722
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67,940
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Loans, held for sale
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944
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2,828
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Loans
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326,703
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330,264
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Allowance for loan losses
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3,017
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2,699
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Net loans
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323,686
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327,565
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Other assets
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38,347
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35,302
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TOTAL ASSETS
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$ 546,285
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$ 517,116
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Liabilities and Stockholders' Equity
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Deposits
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$ 390,953
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$ 377,658
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FHLB advances
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58,449
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67,912
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Other liabilities
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11,681
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11,547
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Total Liabilities
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461,083
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457,117
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Stockholders' Equity
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85,202
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59,999
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Total Liabilities and Stockholders' Equity
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$ 546,285
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$ 517,116
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Selected Asset Quality Data:
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Nonaccrual to total loans
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0.29%
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0.38%
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ALLL to total loans (Excluding Loans held for sale)
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0.93%
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0.82%
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1895 BANCORP OF WISCONSIN, INC.
Condensed Consolidated Statements of Operations-Unaudited
(In thousands, except share and per share data)
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Three months ended
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3/31/2022
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3/31/2021
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Total interest and dividend income
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$ 3,886
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$ 3,617
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Total interest expense
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341
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456
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Net interest income
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3,545
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3,161
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Provision for loan losses
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105
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0
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Net interest income after provision for loan losses
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3,440
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3,161
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Noninterest income
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391
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1,610
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Noninterest expense
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3,946
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4,089
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(Loss) income before income taxes
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(115)
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682
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Income tax expense
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(60)
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161
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Net (loss) income
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$ (55)
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$ 521
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(Loss) earnings per common share:
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Basic (1)
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$ (0.01)
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$ 0.11
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Diluted (1)
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$ (0.01)
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$ 0.11
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Average common shares outstanding:
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Basic (1)
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5,873,964
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4,588,688
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Diluted (1)
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5,873,964
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4,697,342
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Selected Ratios:
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Net interest margin
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2.85%
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2.67%
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Net interest spread
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2.71%
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2.53%
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(1) Amounts related to periods prior to the date of Conversion (July 2021) have not been restated to give the retroactive recongnition to the
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exchange ratio applied in the Conversion (1.3163).
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