GREENFIELD, Wis., May 11, 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 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
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Condensed
Consolidated Balance Sheets -Unaudited
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(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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Condensed
Consolidated Statements of Operations-Unaudited
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(In thousands, except
ahare 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 recognition to the exchange ratio
applied in the Conversion (1.3163).
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Contact: Richard B.
Hurd
Telephone: (414) 235-5207
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SOURCE PyraMax Bank / 1895 Bancorp of Wisconsin, Inc.