GREENFIELD, Wis., Aug. 9, 2022
/PRNewswire/ -- 1895 Bancorp of Wisconsin, Inc. (NASDAQ: BCOW) (the
"Company"), the holding company for PyraMax Bank, today announced
unaudited financial results for the quarter and six months ended
June 30, 2022.
Financial Summary
Operating Results for the Three Months Ended June 30, 2022
Net Loss. We recorded a net loss of
$241,000 for the three months ended
June 30, 2022, an increase of
$190,000 from a net loss of
$51,000 recorded for the three months
ended June 30, 2021. This increase
was primarily due to a $1.0 million
decrease in non-interest income, which was partially offset by a
$678,000 decrease in noninterest
expense, a $74,000 increase in net
interest income after provision for loan losses and a $75,000 increase in income tax benefit.
Net Interest Income. Net interest income
increased $179,000, or 5.7%, to
$3.3 million for the three months
ended June 30, 2022, from
$3.1 million for the three months
ended June 30, 2021. This increase
was due to a $156,000 increase in
interest income and a $23,000
decrease in interest expense. Interest and dividend income
increased due primarily to an increase in interest earned on
taxable securities, as a result of our strategy to deploy excess
liquidity into securities. Interest expense decreased primarily due
to a decline in interest expense on FHLB advances, as average
balances of FHLB advances decreased. Our net interest rate spread
increased 8 basis points to 2.52% for the three months ended
June 30, 2022, from 2.44% for the
three months ended June 30, 2021. Our
net interest margin also increased 8 basis points to 2.65% from
2.57% over the same period.
Provision for Loan Losses. Provision for
loan losses for the three months ended June
30, 2022 was $105,000 compared
to no provision for the three months ended June 30, 2021. The increase in provision
was primarily due to the increase in loans outstanding.
Non-interest Income. Non-interest
income decreased $1.0 million, or
89.6%, to $118,000 for the three
months ended June 30, 2022, from
$1.1 million for the three months
ended June 30, 2021. The
decrease was primarily the result of a $763,000 decline in the market value of
marketable equity securities held in our deferred compensation plan
and a $241,000 decrease in net gain
on sale of loans.
Non-interest Expense. Non-interest expense
decreased $677,000, or 15.5%, to
$3.7 million for the three months
ended June 30, 2022 from $4.4 million for the three months ended
June 30, 2021. This decrease
was primarily due to a $664,000
decrease in salaries and employee benefits, which was due primarily
to a $763,000 decrease in the market
value of mutual funds held in our deferred compensation plan.
Operating Results for the Six Months Ended June 30, 2022 and 2021
Net (Loss) Income. We recorded net loss of
$296,000 for the six months ending
June 30, 2022, compared to net income
of $470,000 recorded for the six
months ending June 30, 2021. This
decrease was primarily due to a $2.2
million decrease in non-interest income, which was partially
offset by an $822,000 decrease in
noninterest expense, a $353,000
increase in net interest income after provision for loan losses and
a $294,000 decrease in income tax
expense.
Net Interest Income. Net interest income
increased $563,000, or 9.0%, to
$6.8 million for the six months
ended June 30, 2022 from $6.3 million for the six months ended
June 30, 2021. The increase was due
primarily to an increase in interest earned on taxable securities,
which increased $511,000, or 84.7%
from $603,000 in the first six months
of 2021 to $1.1 million in the first
six months of 2022, as a result of our strategy to deploy excess
liquidity into securities. Our net interest rate spread
increased 13 basis points to 2.60% for the six months ended
June 30, 2022, from 2.47% for the six
months ended June 30, 2021, while our
net interest margin increased 14 basis points to 2.74% from 2.60%
over the same period.
Provision for Loan Losses. Provision for
loan losses for the six months ended June
30, 2022 was $210,000 compared
to no provision for the six months ended June 30, 2021. The increase in provision
was primarily due to the increase in loans outstanding.
Non-interest Income. Non-interest
income decreased $2.2 million, or
81.5%, to $508,000 for the six months
ended June 30, 2022 from $2.7 million for the six months ended
June 30, 2021. This decrease was due
primarily to a $1.1 million decline
in the market value of marketable equity securities held in our
deferred compensation plan, a $729,000 decrease in net gains on the sale of
loans, due to a decrease in the sale of mortgage loans, and a
$419,000 decrease in loan servicing
fees.
Non-interest Expense. Non-interest expense
decreased $822,000, or 9.7%, to
$7.6 million for the six months ended
June 30, 2022 from $8.5 million for the six months ended
June 30, 2021. This decrease was
primarily due to an $835,000 decrease
in salaries and employee benefits, as a result of a $1.1 million decline in the market value of
marketable equity securities held in our deferred compensation
plan.
Financial Condition at June 30,
2022
Total Assets. Total assets decreased
$4.0 million, or 0.7%, to
$535.6 million at June 30, 2022 from $539.6 million at December 31, 2021.
Cash and Cash Equivalents. Cash and cash
equivalents decreased $46.6 million, or 69.7%, to $20.2 million at June
30, 2022 from $66.8 million at December 31, 2021, primarily due to the purchase
of $37.1 million in
available-for-sale securities, $26.0
million of net loan growth, $13.8
million in originations of loans held for sale and
$8.0 million in principal payments on
FHLB advances.
Available-for-Sale Securities.
Available-for-sale securities increased $14.2 million, or 12.7%, to $126.7 million at June 30,
2022, from $112.4 million at
December 31, 2021.
Net Loans. Net loans held for investment
increased $25.8 million, or 8.0%, to
$349.6 million at June 30, 2022, from $323.8
million at December 31,
2021.
Deposits. Deposits decreased $1.4 million, or 0.4%, to $383.1 million at June 30,
2022, from $384.5 million at
December 31, 2021.
Borrowings. Borrowings, consisting entirely
of FHLB advances, increased $2.0
million, or 3.6%, to $57.4
million at June 30, 2022, from
$55.4 million at December 31, 2021.
Total Stockholders' Equity. Total
stockholders' equity decreased $9.9
million to $81.0 million at
June 30, 2022, from $90.9 million at December
31, 2021. The decrease was primarily due to an $11.9 million increase in net unrealized losses
on available-for-sale securities, which net of taxes, resulted in a
$8.7 million decrease in
stockholders' equity. The increase in net unrealized losses on
available-for-sale securities resulted primarily from changes in
market interest rates.
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 most recent Annual Report on Form 10-K,
filed with the U.S. Securities and Exchange Commission (the "SEC")
on March 29, 2022, as supplemented by
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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6/30/2022
|
|
3/31/2022
|
|
12/31/2021
|
Assets
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
|
$
20,221
|
|
$ 50,586
|
|
$ 66,803
|
Available for sale
securities, stated at fair value
|
|
126,676
|
|
132,722
|
|
112,440
|
Loans, held for
sale
|
|
|
|
262
|
|
944
|
|
1,183
|
Loans
|
|
|
|
|
|
352,751
|
|
326,703
|
|
326,647
|
Allowance for loan
losses
|
|
|
|
3,132
|
|
3,017
|
|
2,858
|
Net loans
|
|
|
|
|
349,619
|
|
323,686
|
|
323,789
|
Other assets
|
|
|
|
|
38,848
|
|
38,347
|
|
35,424
|
TOTAL
ASSETS
|
|
|
|
|
$
535,626
|
|
$
546,285
|
|
$
539,639
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
Deposits
|
|
|
|
|
|
$
383,062
|
|
$
390,953
|
|
$
384,501
|
FHLB
advances
|
|
|
|
|
57,435
|
|
58,449
|
|
55,442
|
Other
liabilities
|
|
|
|
|
14,163
|
|
11,681
|
|
8,803
|
Total
Liabilities
|
|
|
|
|
454,660
|
|
461,083
|
|
448,746
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
80,966
|
|
85,202
|
|
90,893
|
Total Liabilities
and Stockholders' Equity
|
|
$
535,626
|
|
$
546,285
|
|
$
539,639
|
|
|
|
|
|
|
|
|
|
|
|
Selected Asset
Quality Data:
|
|
|
|
|
|
|
|
Nonaccrual to total
loans
|
|
|
|
0.23 %
|
|
0.29 %
|
|
0.31 %
|
ALLL to total loans
(Excluding Loans held for sale)
|
0.89 %
|
|
0.93 %
|
|
0.88 %
|
1895 Bancorp of
Wisconsin, Inc.
|
Condensed
Consolidated Statements of Operations-Unaudited
|
(In thousands, except
share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
|
|
|
|
|
6/30/2022
|
|
6/30/2021
|
|
6/30/2022
|
|
6/30/2021
|
Total interest and
dividend income
|
|
|
$
3,667
|
|
$
3,511
|
|
$
7,552
|
|
$
7,128
|
Total interest
expense
|
|
|
|
370
|
|
393
|
|
710
|
|
849
|
Net interest
income
|
|
|
|
3,297
|
|
3,118
|
|
6,842
|
|
6,279
|
Provision for loan
losses
|
|
|
|
105
|
|
0
|
|
210
|
|
0
|
Net interest income
after provision for loan losses
|
3,192
|
|
3,118
|
|
6,632
|
|
6,279
|
Noninterest
income
|
|
|
|
118
|
|
1,134
|
|
508
|
|
2,743
|
Noninterest
expense
|
|
|
|
3,684
|
|
4,361
|
|
7,628
|
|
8,450
|
(Loss) income before
income taxes
|
|
|
(374)
|
|
(109)
|
|
(488)
|
|
572
|
Income tax
expense
|
|
|
|
(133)
|
|
(58)
|
|
(192)
|
|
102
|
Net (loss)
income
|
|
|
|
|
$
(241)
|
|
$
(51)
|
|
$
(296)
|
|
$
470
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) earnings per
common share:
|
|
|
|
|
|
|
|
|
|
Basic
(1)
|
|
|
|
|
$
(0.04)
|
|
$
(0.01)
|
|
$
(0.05)
|
|
$
0.10
|
Diluted
(1)
|
|
|
|
|
$
(0.04)
|
|
$
(0.01)
|
|
$
(0.05)
|
|
$
0.10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average common
shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
(1)
|
|
|
|
|
5,843,104
|
|
4,599,878
|
|
5,858,449
|
|
4,594,314
|
Diluted
(1)
|
|
|
|
|
5,843,104
|
|
4,599,878
|
|
5,858,449
|
|
4,656,037
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected
Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate
spread
|
|
|
|
2.52 %
|
|
2.44 %
|
|
2.60 %
|
|
2.47 %
|
Net interest
margin
|
|
|
|
|
2.65 %
|
|
2.57 %
|
|
2.74 %
|
|
2.60 %
|
(1) Amounts related to
periods prior to the date of Conversion (July 2021) have not been
restated to give the retroactive recognition to the
exchange ratio applied in the Conversion (1.3163).
|
Contact: Richard B.
Hurd
Telephone: (414) 235-5207
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SOURCE PyraMax Bank / 1895 Bancorp of Wisconsin Inc.