☒ |
QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
☐ |
TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Maryland
|
61-1993378
|
|
(State or Other Jurisdiction of
Incorporation or Organization)
|
(I.R.S. Employer
Identification No.)
|
|
7001 West Edgerton Avenue
Greenfield, Wisconsin
|
53220
|
|
(Address of Principal Executive Offices)
|
(Zip Code)
|
Title of each class
|
Trading
Symbol(s)
|
Name of each exchange on
which registered
|
||
Common Stock, par value $0.01 per share
|
BCOW
|
The NASDAQ Stock Market, LLC
|
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated
filer
|
☒ | Smaller reporting company | ☒ | |||
Emerging growth company | ☒ |
Item 1.
|
Financial Statements
|
June 30,
2021 |
December 31,
2020 |
|||||||
(unaudited)
|
||||||||
Assets
|
||||||||
Cash and due from banks
|
$ | 144,491 | $ | 87,977 | ||||
Fed funds sold
|
1,326 | 4,549 | ||||||
|
|
|
|
|||||
Cash and cash equivalents
|
145,817 | 92,526 | ||||||
Marketable equity securities, stated at fair value
|
3,419 | 2,992 | ||||||
Available for sale securities, stated at fair value
|
91,406 | 58,703 | ||||||
Loans held for sale
|
1,340 | 2,484 | ||||||
Loans, net
|
330,903 | 329,073 | ||||||
Premises and equipment, net
|
6,038 | 6,275 | ||||||
Mortgage servicing rights, net
|
2,109 | 1,806 | ||||||
Federal Home Loan Bank (FHLB) stock, at cost
|
3,032 | 3,032 | ||||||
Accrued interest receivable
|
879 | 912 | ||||||
Cash value of life insurance
|
13,686 | 13,485 | ||||||
Other assets
|
6,948 | 5,469 | ||||||
|
|
|
|
|||||
TOTAL ASSETS
|
$ | 605,577 | $ | 516,757 | ||||
|
|
|
|
|||||
Liabilities and Stockholders’ Equity
|
||||||||
Deposits
|
466,184 | 379,848 | ||||||
Advance payments by borrowers for taxes and insurance
|
9,167 | 2,737 | ||||||
FHLB advances
|
63,423 | 68,398 | ||||||
Accrued interest payable
|
130 | 183 | ||||||
Other liabilities
|
6,373 | 5,583 | ||||||
|
|
|
|
|||||
Total liabilities
|
545,277 | 456,749 | ||||||
|
|
|
|
|||||
Common stock (par value $0.01 per share)
Authorized—90,000,000 shares at June 30, 2021 and December 31, 2020 Issued—4,967,271 at June 30, 2021 and 4,961,626 at December 31, 2020 (includes 79,394 and 84,949 unvested shares, respectively) Outstanding – 4,840,046 at June 30, 2021 and 4,834,401 at December 31, 2020 (includes 79,394 and 84,949 unvested shares, respectively)
|
49 | 49 | ||||||
Additional
paid-in
capital
|
20,188 | 20,134 | ||||||
Unallocated common stock of Employee Stock Ownership Plan (ESOP), 157,976 and 161,486 shares at June 30, 2021 and December 31, 2020, respectively
|
(1,580 | ) | (1,615 | ) | ||||
Less treasury stock at cost, 127,225 shares at June 30, 2021 and December 31, 2020
|
(1,228 | ) | (1,228 | ) | ||||
Retained earnings
|
42,000 | 41,530 | ||||||
Accumulated other comprehensive income, net of income taxes
|
871 | 1,138 | ||||||
|
|
|
|
|||||
Total stockholders’ equity
|
60,300 | 60,008 | ||||||
|
|
|
|
|||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
|
$ | 605,577 | $ | 516,757 | ||||
|
|
|
|
Three months ended
June 30
|
Six months ended
June 30
|
|||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
Interest and dividend income:
|
||||||||||||||||
Loans, including fees
|
$ | 3,125 | $ | 3,197 | $ | 6,418 | $ | 6,610 | ||||||||
Securities, taxable
|
335 | 381 | 603 | 788 | ||||||||||||
Other
|
51 | 8 | 107 | 48 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total interest and dividend income
|
3,511 | 3,586 | 7,128 | 7,446 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Interest expense:
|
||||||||||||||||
Interest-bearing deposits
|
193 | 615 | 449 | 1,465 | ||||||||||||
Borrowed funds
|
200 | 200 | 400 | 309 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total interest expense
|
393 | 815 | 849 | 1,774 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net interest income
|
3,118 | 2,771 | 6,279 | 5,672 | ||||||||||||
Provision for loan losses
|
— | — | — | — | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net interest income after provision for loan losses
|
3,118 | 2,771 | 6,279 | 5,672 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Noninterest income:
|
||||||||||||||||
Service charges and other fees
|
249 | 160 | 470 | 363 | ||||||||||||
Loan servicing, net
|
193 | (126 | ) | 767 | (139 | ) | ||||||||||
Net gain on sale of loans
|
347 | 1,075 | 913 | 1,728 | ||||||||||||
Net gain on sale of securities
|
— | — | 12 | 7 | ||||||||||||
Increase in cash surrender value of insurance
|
101 | 99 | 201 | 198 | ||||||||||||
Unrealized gain on marketable equity securities
|
241 | 396 | 372 | 72 | ||||||||||||
Other
|
3 | 19 | 8 | — | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total noninterest income
|
1,134 | 1,623 | 2,743 | 2,229 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Noninterest expense:
|
||||||||||||||||
Salaries and employee benefits
|
2,698 | 2,403 | 5,153 | 4,087 | ||||||||||||
Foreclosed assets, net
|
— | 1 | — | (8 | ) | |||||||||||
Advertising and promotions
|
14 | 40 | 32 | 72 | ||||||||||||
Data processing
|
208 | 184 | 405 | 367 | ||||||||||||
Occupancy and equipment
|
361 | 324 | 734 | 697 | ||||||||||||
FDIC assessment
|
35 | 31 | 68 | 50 | ||||||||||||
Other
|
1,045 | 992 | 2,058 | 1,783 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total noninterest expense
|
4,361 | 3,975 | 8,450 | 7,048 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
(Loss) income before income taxes
|
(109 | ) | 419 | 572 | 853 | |||||||||||
Income tax (benefit) expense
|
(58 | ) | 225 | 102 | 372 | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net (loss) income
|
$ | (51 | ) | $ | 194 | $ | 470 | $ | 481 | |||||||
|
|
|
|
|
|
|
|
|||||||||
Earnings per common share:
|
||||||||||||||||
Basic
|
$ | (0.01 | ) | $ | 0.04 | $ | 0.10 | $ | 0.11 | |||||||
|
|
|
|
|
|
|
|
|||||||||
Diluted
|
$ | (0.01 | ) | $ | 0.04 | $ | 0.10 | $ | 0.11 | |||||||
|
|
|
|
|
|
|
|
|||||||||
Average common shares outstanding:
|
||||||||||||||||
Basic
|
4,599,878 | 4,519,978 | 4,594,314 | 4,521,953 | ||||||||||||
Diluted
|
4,682,634 | 4,553,546 | 4,656,037 | 4,555,295 |
Three months ended
June 30
|
Six months ended
June 30
|
|||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
Net (loss) income
|
$ | (51 | ) | $ | 194 | $ | 470 | $ | 481 | |||||||
|
|
|
|
|
|
|
|
|||||||||
Other comprehensive income (loss):
|
||||||||||||||||
Unrealized holding gains (losses) arising during the period
|
447 | 2,503 | (354 | ) | 2,340 | |||||||||||
Reclassification adjustment for gains realized in net income
|
— | — | (12 | ) | (7 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Other comprehensive income (loss) before tax effect
|
447 | 2,503 | (366 | ) | 2,333 | |||||||||||
Tax effect of other comprehensive income (loss) items
|
120 | 676 | (99 | ) | 630 | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Other comprehensive income (loss), net of tax
|
327 | 1,827 | (267 | ) | 1,703 | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Comprehensive income
|
$ | 276 | $ | 2,021 | $ | 203 | $ | 2,184 | ||||||||
|
|
|
|
|
|
|
|
Common
stock |
Additional
paid-in
capital |
Treasury
Stock |
Unallocated
common stock of ESOP |
Retained
earnings |
Accumulated
other comprehensive income (loss) |
Total
|
||||||||||||||||||||||
Balance as of January 1, 2020
|
$ | 49 | $ | 19,981 | $ | — | $ | (1,685 | ) | $ | 40,213 | $ | 107 | $ | 58,665 | |||||||||||||
Net income
|
— | — | — | — | 287 | — | 287 | |||||||||||||||||||||
1895 Bancorp of Wisconsin, Inc. common stock held by PyraMax Bank reclassified to treasury stock
|
— | — | (175 | ) | — | — | — | (175 | ) | |||||||||||||||||||
Other comprehensive loss
|
— | — | — | — | — | (124 | ) | (124 | ) | |||||||||||||||||||
ESOP shares committed to be released (1,755 shares)
|
— | 1 | — | 17 | — | — | 18 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance as of March 31, 2020
|
$ | 49 | $ | 19,982 | $ | (175) | $ | (1,668 | ) | $ | 40,500 | $ | (17 | ) | $ | 58,671 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net income
|
— | — | — | — | 194 | — | 194 | |||||||||||||||||||||
Other comprehensive income
|
— | — | — | — | — | 1,827 | 1,827 | |||||||||||||||||||||
Repurchase of 1895 Bancorp of Wisconsin, Inc. common stock (25,476 shares repurchased)
|
— | — | (231 | ) | — | — | — | (231 | ) | |||||||||||||||||||
ESOP shares committed to be released (1,755 shares)
|
— | (4 | ) | — | 18 | — | — | 14 | ||||||||||||||||||||
Stock compensation expense
|
— | 44 | — | — | — | — | 44 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance as of June 30, 2020
|
$ | 49 | $ | 20,022 | $ | (406) | $ | (1,650 | ) | $ | 40,694 | $ | 1,810 | $ | 60,519 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance as of January 1, 2021
|
$ | 49 | $ | 20,134 | $ | (1,228 | ) | $ | (1,615 | ) | $ | 41,530 | $ | 1,138 | $ | 60,008 | ||||||||||||
Net income
|
— | — | — | — | 521 | — | 521 | |||||||||||||||||||||
Other comprehensive loss
|
— | — | — | — | — | (594 | ) | (594 | ) | |||||||||||||||||||
Purchase of treasury stock
|
— | — | (15 | ) | — | — | — | (15 | ) | |||||||||||||||||||
ESOP shares committed to be released (1,755 shares)
|
— | 3 | — | 18 | — | — | 21 | |||||||||||||||||||||
Issuance of treasury stock – stock compensation plan
|
— | (15 | ) | 15 | — | — | — | — | ||||||||||||||||||||
Stock compensation expense
|
— | 58 | — | — | — | — | 58 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance as of March 31, 2021
|
$ | 49 | $ | 20,180 | $ | (1,228 | ) | $ | (1,597 | ) | $ | 42,051 | $ | 544 | $ | 59,999 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net loss
|
— | — | — | — | (51 | ) | — | (51 | ) | |||||||||||||||||||
Other comprehensive income
|
— | — | — | — | — | 327 | 327 | |||||||||||||||||||||
ESOP shares committed to be released (1,755 shares)
|
13 | 17 | 30 | |||||||||||||||||||||||||
Retirement of common stock
|
— | (70 | ) | — | — | — | — | (70 | ) | |||||||||||||||||||
Stock compensation expense
|
— | 65 | — | — | — | — | 65 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance as of June 30, 2021
|
$ | 49 | $ | 20,188 | $ | (1,228 | ) | $ | (1,580 | ) | $ | 42,000 | $ | 871 | $ | 60,300 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended
June 30, |
||||||||
2021
|
2020
|
|||||||
(unaudited)
|
||||||||
Cash flows from operating activities:
|
||||||||
Net income
|
$ | 470 | $ | 481 | ||||
Adjustments to reconcile net income to net cash from operating activities:
|
||||||||
Net amortization of investment securities
|
15 | 134 | ||||||
Depreciation
|
331 | 329 | ||||||
Net loss on sale of premises and equipment
|
— | 33 | ||||||
Change in fair value of marketable equity securities
|
(372 | ) | (72 | ) | ||||
Net gain on sale of available for sale securities
|
(12 | ) | (7 | ) | ||||
Stock compensation expense
|
123 | 44 | ||||||
Adjustment to mortgage servicing rights valuation
|
(369 | ) | 570 | |||||
Provision for deferred income tax
|
102 | 740 | ||||||
Originations of mortgage loans held for sale
|
(67,969 | ) | (103,968 | ) | ||||
Proceeds from sales of mortgage loans held for sale
|
70,026 | 100,783 | ||||||
Net gain on sale of mortgage loans held for sale
|
(913 | ) | (1,728 | ) | ||||
ESOP compensation
|
51 | 32 | ||||||
Net change in cash value of life insurance
|
(201 | ) | (198 | ) | ||||
Changes in operating assets and liabilities:
|
||||||||
Mortgage servicing rights
|
66 | 15 | ||||||
Accrued interest receivable and other assets
|
(1,492 | ) | (764 | ) | ||||
Accrued interest payable and other liabilities
|
667 | (744 | ) | |||||
|
|
|
|
|||||
Net cash provided by (used in) operating activities
|
523 | (4,320 | ) | |||||
|
|
|
|
|||||
Cash Flows From Investing Activities
|
||||||||
Proceeds from sales of available for sale securities
|
1,018 | 279 | ||||||
Maturities, prepayments, and calls of available for sale securities
|
5,116 | 7,825 | ||||||
Purchases of available for sale securities
|
(39,218 | ) | — | |||||
Net increase in loans
|
(1,830 | ) | (10,360 | ) | ||||
Net capital expenditures for premises and equipment
|
(94 | ) | (158 | ) | ||||
Net increase in Federal Home Loan Bank stock
|
— | (2,120 | ) | |||||
|
|
|
|
|||||
Net cash used in investing activities
|
(35,008 | ) | (4,534 | ) | ||||
|
|
|
|
|||||
Cash Flows From Financing Activities
|
||||||||
Net increase in deposits
|
86,336 | 5,411 | ||||||
Net increase in advance payments by borrowers for taxes and insurance
|
6,430 | 8,942 | ||||||
Proceeds from issuance of Federal Home Loan Bank advances
|
— | 52,000 | ||||||
Principal payments on Federal Home Loan Bank advances
|
(4,975 | ) | (256 | ) | ||||
Purchases of treasury stock
|
(15 | ) | (231 | ) | ||||
|
|
|
|
|||||
Net cash provided by financing activities
|
87,776 | 65,866 | ||||||
|
|
|
|
|||||
Net increase in cash and cash equivalents
|
53,291 | 57,012 | ||||||
Cash and cash equivalents at beginning of period
|
92,526 | 11,707 | ||||||
|
|
|
|
|||||
Cash and cash equivalents at end of period
|
$ | 145,817 | $ | 68,719 | ||||
|
|
|
|
|||||
Supplemental cash flow information:
|
||||||||
Cash paid during the year for interest
|
$ | 902 | $ | 1,843 | ||||
Noncash activities:
|
||||||||
Retirement of common stock
|
$ | 70 | $ | — | ||||
Loans transferred to loans held for sale
|
— | 124 | ||||||
Issuance of treasury stock – stock compensation plans
|
15 | — | ||||||
1895 Bancorp of Wisconsin, Inc. common stock held by PyraMax Bank reclassified to treasury stock
|
— | 175 |
June 30, 2021
|
||||||||||||||||
Amortized
Cost |
Gross
Unrealized Gains |
Gross
Unrealized Losses |
Fair
Value |
|||||||||||||
(in thousands)
|
||||||||||||||||
Obligations of states and political subdivisions
|
$ | 21,029 | $ | 230 | $ | (172 | ) | $ | 21,087 | |||||||
Government-sponsored mortgage-backed securities
|
60,091 | 1,087 | (125 | ) | 61,053 | |||||||||||
Corporate collateralized mortgage obligations
|
763 | 1 | — | 764 | ||||||||||||
Asset-backed securities
|
6,873 | 71 | — | 6,944 | ||||||||||||
Certificates of deposit
|
1,458 | 100 | — | 1,558 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total
|
$ | 90,214 | $ | 1,489 | $ | (297 | ) | $ | 91,406 | |||||||
|
|
|
|
|
|
|
|
December 31, 2020
|
||||||||||||||||
Amortized
Cost |
Gross
Unrealized Gains |
Gross
Unrealized Losses |
Fair
Value |
|||||||||||||
(in thousands)
|
||||||||||||||||
Obligations of states and political subdivisions
|
$ | 11,570 | $ | 244 | $ | (11 | ) | $ | 11,803 | |||||||
Government-sponsored mortgage-backed securities
|
36,886 | 1,165 | (12 | ) | 38,039 | |||||||||||
Asset-backed securities
|
7,231 | 57 | (7 | ) | 7,281 | |||||||||||
Certificates of deposit
|
1,458 | 122 | — | 1,580 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total
|
$ | 57,145 | $ | 1,588 | $ | (30 | ) | $ | 58,703 | |||||||
|
|
|
|
|
|
|
|
June 30, 2021
|
||||||||
Amortized
Cost |
Fair Value
|
|||||||
(in thousands)
|
||||||||
Debt and other securities:
|
||||||||
Due in one year or less
|
$ | 1,736 | $ | 1,759 | ||||
Due after one through 5 years
|
4,125 | 4,297 | ||||||
Due after 5 through 10 years
|
5,108 | 5,130 | ||||||
Due after 10 years
|
11,518 | 11,459 | ||||||
|
|
|
|
|||||
Total debt and other securities
|
22,487 | 22,645 | ||||||
Mortgage-related securities
|
60,854 | 61,817 | ||||||
Asset-backed securities
|
6,873 | 6,944 | ||||||
|
|
|
|
|||||
Total
|
$ | 90,214 | $ | 91,406 | ||||
|
|
|
|
June 30, 2021
|
||||||||||||||||||||||||
Less than 12 months
|
12 months or
longer |
Total
|
||||||||||||||||||||||
Fair
Value |
Unrealized
Loss |
Fair
Value |
Unrealized
Loss |
Fair
Value |
Unrealized
Loss |
|||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||
Obligations of states and political subdivisions
|
$ | 9,578 | $ | (172 | ) | $ | — | $ | — | $ | 9,578 | $ | (172 | ) | ||||||||||
Government-sponsored mortgage-backed securities
|
21,982 | (125 | ) | — | — | 21,982 | (125 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total
|
$ | 31,560 | $ | (297 | ) | $ | — | $ | — | $ | 31,560 | $ | (297 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2020
|
||||||||||||||||||||||||
Less than 12 months
|
12 months or
longer |
Total
|
||||||||||||||||||||||
Fair
Value |
Unrealized
Loss |
Fair
Value |
Unrealized
Loss |
Fair
Value |
Unrealized
Loss |
|||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||
Obligations of states and political subdivisions
|
$ | 4,235 | $ | (11 | ) | $ | — | $ | — | $ | 4,235 | $ | (11 | ) | ||||||||||
Government-sponsored mortgage-backed securities
|
4,984 | (12 | ) | — | — | 4,984 | (12 | ) | ||||||||||||||||
Asset-backed securities
|
— | — | 638 | (7 | ) | 638 | (7 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total
|
$ | 9,219 | $ | (23 | ) | $ | 638 | $ | (7 | ) | $ | 9,857 | $ | (30 | ) | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
June 30, |
Six months ended
June 30,
|
|||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
(in thousands)
|
(in thousands)
|
|||||||||||||||
Proceeds from sales of securities
available-for-sale
|
$ | — | $ | — | $ | 1,018 | $ | 279 | ||||||||
Gross realized gains
|
— | — | 12 | 7 | ||||||||||||
Gross realized losses
|
— | — | — | — |
June 30,
2021 |
December 31,
2020 |
|||||||
(in thousands)
|
||||||||
Commercial:
|
||||||||
Real estate
|
$ | 179,729 | $ | 189,291 | ||||
Land development
|
1,442 | 1,492 | ||||||
Other
|
41,287 | 46,184 | ||||||
Residential real estate:
|
||||||||
First mortgage
|
88,564 | 68,968 | ||||||
Construction
|
2,346 | 2,954 | ||||||
Consumer:
|
||||||||
Home equity and lines of credit
|
19,672 | 22,348 | ||||||
Other
|
215 | 361 | ||||||
|
|
|
|
|||||
Subtotal
|
333,255 | 331,598 | ||||||
Net deferred loan costs
|
380 | 178 | ||||||
Allowance for loan losses
|
(2,732 | ) | (2,703 | ) | ||||
|
|
|
|
|||||
Loans, net
|
$ | 330,903 | $ | 329,073 | ||||
|
|
|
|
June 30, 2021
|
||||||||||||||||||||
30-89 Days
Past Due |
90 Days or
More Past Due |
Total Past
Due |
Current
|
Total Loans
|
||||||||||||||||
(in thousands)
|
||||||||||||||||||||
Commercial:
|
||||||||||||||||||||
Real estate
|
$ | 276 | $ | — | $ | 276 | $ | 179,453 | $ | 179,729 | ||||||||||
Land development
|
— | — | — | 1,442 | 1,442 | |||||||||||||||
Other
|
— | — | — | 41,287 | 41,287 | |||||||||||||||
Residential real estate:
|
||||||||||||||||||||
First mortgage
|
292 | — | 292 | 88,272 | 88,564 | |||||||||||||||
Construction
|
— | — | — | 2,346 | 2,346 | |||||||||||||||
Consumer:
|
||||||||||||||||||||
Home equity and lines of credit
|
— | — | — | 19,672 | 19,672 | |||||||||||||||
Other
|
— | — | — | 215 | 215 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total
|
$ | 568 | $ | — | $ | 568 | $ | 332,687 | $ | 333,255 | ||||||||||
|
|
|
|
|
|
|
|
|
|
December 31, 2020
|
||||||||||||||||||||
30-89 Days
Past Due |
90 Days or
More Past Due |
Total Past
Due |
Current
|
Total Loans
|
||||||||||||||||
(in thousands)
|
||||||||||||||||||||
Commercial:
|
||||||||||||||||||||
Real estate
|
$ | 241 | $ | — | $ | 241 | $ | 189,050 | $ | 189,291 | ||||||||||
Land development
|
— | — | — | 1,492 | 1,492 | |||||||||||||||
Other
|
33 | — | 33 | 46,151 | 46,184 | |||||||||||||||
Residential real estate:
|
||||||||||||||||||||
First mortgage
|
684 | 137 | 821 | 68,147 | 68,968 | |||||||||||||||
Construction
|
— | — | — | 2,954 | 2,954 | |||||||||||||||
Consumer:
|
||||||||||||||||||||
Home equity and lines of credit
|
121 | 23 | 144 | 22,204 | 22,348 | |||||||||||||||
Other
|
— | — | — | 361 | 361 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total
|
$ | 1,079 | $ | 160 | $ | 1,239 | $ | 330,359 | $ | 331,598 | ||||||||||
|
|
|
|
|
|
|
|
|
|
Commercial
|
Residential
|
Consumer
|
Total
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Three months ended June 30, 2021
|
||||||||||||||||
Allowance for loan losses
|
||||||||||||||||
Beginning balance
|
$ | 1,614 | $ | 745 | $ | 340 | $ | 2,699 | ||||||||
Provision (credit) for loan losses
|
— | — | — | — | ||||||||||||
Loans
charged-off
|
— | — | (1 | ) | (1 | ) | ||||||||||
Recoveries
|
4 | — | 30 | 34 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Ending balance
|
$ | 1,618 | $ | 745 | $ | 369 | $ | 2,732 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Three months ended June 30, 2020
|
||||||||||||||||
Allowance for loan losses
|
||||||||||||||||
Beginning balance
|
$ | 1,241 | $ | 573 | $ | 194 | $ | 2,008 | ||||||||
Provision (credit) for loan losses
|
— | — | — | — | ||||||||||||
Loans
charged-off
|
— | — | — | — | ||||||||||||
Recoveries
|
2 | — | 104 | 106 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Ending balance
|
$ | 1,243 | $ | 573 | $ | 298 | $ | 2,114 | ||||||||
|
|
|
|
|
|
|
|
Commercial
|
Residential
|
Consumer
|
Total
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Six months ended June 30, 2021
|
||||||||||||||||
Allowance for loan losses
|
||||||||||||||||
Beginning balance
|
$ | 1,609 | $ | 745 | $ | 349 | $ | 2,703 | ||||||||
Provision (credit) for loan losses
|
— | — | — | — | ||||||||||||
Loans
charged-off
|
— | — | (17 | ) | (17 | ) | ||||||||||
Recoveries
|
9 | — | 37 | 46 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Ending balance
|
$ | 1,618 | $ | 745 | $ | 369 | $ | 2,732 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Six months ended June 30, 2020
|
||||||||||||||||
Allowance for loan losses
|
||||||||||||||||
Beginning balance
|
$ | 1,235 | $ | 573 | $ | 192 | $ | 2,000 | ||||||||
Provision (credit) for loan losses
|
— | — | — | — | ||||||||||||
Loans
charged-off
|
— | — | (5 | ) | (5 | ) | ||||||||||
Recoveries
|
8 | — | 111 | 119 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Ending balance
|
$ | 1,243 | $ | 573 | $ | 298 | $ | 2,114 | ||||||||
|
|
|
|
|
|
|
|
June 30, 2021
|
||||||||||||||||
Commercial
|
Residential
|
Consumer
|
Total
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Loans:
|
||||||||||||||||
Individually evaluated for impairment
|
$ | 7,840 | $ | 614 | $ | — | $ | 8,454 | ||||||||
Collectively evaluated for impairment
|
214,618 | 90,296 | 19,887 | 324,801 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total loans
|
$ | 222,458 | $ | 90,910 | $ | 19,887 | $ | 333,255 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Allowance for loan losses:
|
||||||||||||||||
Individually evaluated for impairment
|
$ | — | $ | — | $ | — | $ | — | ||||||||
Collectively evaluated for impairment
|
1,618 | 745 | 369 | 2,732 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total allowance for loan losses
|
$ | 1,618 | $ | 745 | $ | 369 | $ | 2,732 | ||||||||
|
|
|
|
|
|
|
|
December 31, 2020
|
||||||||||||||||
Commercial
|
Residential
|
Consumer
|
Total
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Loans:
|
||||||||||||||||
Individually evaluated for impairment
|
$ | 10,573 | $ | 411 | $ | 21 | $ | 11,005 | ||||||||
Collectively evaluated for impairment
|
226,394 | 71,511 | 22,688 | 320,593 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total loans
|
$ | 236,967 | $ | 71,922 | $ | 22,709 | $ | 331,598 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Allowance for loan losses:
|
||||||||||||||||
Individually evaluated for impairment
|
$ | — | $ | — | $ | — | $ | — | ||||||||
Collectively evaluated for impairment
|
1,609 | 745 | 349 | 2,703 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total allowance for loan losses
|
$ | 1,609 | $ | 745 | $ | 349 | $ | 2,703 | ||||||||
|
|
|
|
|
|
|
|
June 30, 2021
|
||||||||||||||||
Pass
|
Watch and
Special Mention |
Substandard
|
Total
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Commercial:
|
||||||||||||||||
Real estate
|
$ | 160,088 | $ | 14,401 | $ | 5,241 | $ | 179,729 | ||||||||
Land development
|
— | — | 1,442 | 1,442 | ||||||||||||
Other
|
38,847 | 1,282 | 1,157 | 41,286 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total
|
$ | 198,935 | $ | 15,683 | $ | 7,840 | $ | 222,458 | ||||||||
|
|
|
|
|
|
|
|
December 31, 2020
|
||||||||||||||||
Pass
|
Watch and
Special Mention |
Substandard
|
Total
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Commercial:
|
||||||||||||||||
Real estate
|
$ | 163,961 | $ | 19,272 | $ | 6,058 | $ | 189,291 | ||||||||
Land development
|
— | — | 1,492 | 1,492 | ||||||||||||
Other
|
37,675 | 5,705 | 2,804 | 46,184 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total
|
$ | 201,636 | $ | 24,977 | $ | 10,354 | $ | 236,967 | ||||||||
|
|
|
|
|
|
|
|
June 30, 2021
|
||||||||||||
Performing
|
Non
Performing |
Total
|
||||||||||
(in thousands)
|
||||||||||||
Residential real estate:
|
||||||||||||
First mortgage
|
$ | 87,595 | $ | 969 | $ | 88,564 | ||||||
Construction
|
2,346 | — | 2,346 | |||||||||
Consumer:
|
||||||||||||
Home equity and lines of credit
|
19,586 | 86 | 19,672 | |||||||||
Other
|
215 | — | 215 | |||||||||
|
|
|
|
|
|
|||||||
Total
|
$ | 109,742 | $ | 1,055 | $ | 110,797 | ||||||
|
|
|
|
|
|
December 31, 2020
|
||||||||||||
Performing
|
Non
Performing |
Total
|
||||||||||
(in thousands)
|
||||||||||||
Residential real estate:
|
||||||||||||
First mortgages
|
$ | 67,817 | $ | 1,151 | $ | 68,968 | ||||||
Construction
|
2,954 | — | 2,954 | |||||||||
Consumer:
|
||||||||||||
Home equity and lines of credit
|
22,212 | 136 | 22,348 | |||||||||
Other
|
361 | — | 361 | |||||||||
|
|
|
|
|
|
|||||||
Total
|
$ | 93,344 | $ | 1,287 | $ | 94,631 | ||||||
|
|
|
|
|
|
As of and for the Six Months Ended June 30, 2021
|
||||||||||||||||||||
Recorded
Investment |
Unpaid
Principal |
Reserve
|
Average
Investment |
Interest
Recognized |
||||||||||||||||
(in thousands)
|
||||||||||||||||||||
Impaired loans with reserve:
|
||||||||||||||||||||
Commercial:
|
||||||||||||||||||||
Real estate
|
$ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Land development
|
— | — | — | — | — | |||||||||||||||
Other
|
— | — | — | — | — | |||||||||||||||
Residential real estate:
|
||||||||||||||||||||
First mortgages
|
— | — | — | — | — | |||||||||||||||
Construction
|
— | — | — | — | — | |||||||||||||||
Consumer:
|
||||||||||||||||||||
Home equity and lines of credit
|
— | — | — | — | — | |||||||||||||||
Other
|
— | — | — | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total impaired loans with reserve
|
— | — | — | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Impaired loans with no reserve:
|
||||||||||||||||||||
Commercial:
|
||||||||||||||||||||
Real estate
|
5,241 | 5,240 | NA | 6,193 | 118 | |||||||||||||||
Land development
|
1,442 | 1,442 | NA | 1,468 | 33 | |||||||||||||||
Other
|
1,157 | 1,209 | NA | 1,834 | 18 | |||||||||||||||
Residential real estate:
|
||||||||||||||||||||
First mortgages
|
614 | 702 | NA | 623 | 8 | |||||||||||||||
Construction
|
— | — | NA | — | — | |||||||||||||||
Consumer:
|
||||||||||||||||||||
Home equity and lines of credit
|
— | — | NA | 14 | 22 | |||||||||||||||
Other
|
— | — | NA | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total impaired loans with no reserve
|
8,454 | 8,593 | NA | 10,132 | 199 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total impaired loans
|
$ | 8,454 | $ | 8,593 | $ | — | $ | 10,132 | $ | 199 | ||||||||||
|
|
|
|
|
|
|
|
|
|
As of and for the Year Ended December 31, 2020
|
||||||||||||||||||||
Recorded
Investment |
Unpaid
Principal |
Reserve
|
Average
Investment |
Interest
Recognized |
||||||||||||||||
(in thousands)
|
||||||||||||||||||||
Impaired loans with reserve:
|
||||||||||||||||||||
Commercial:
|
||||||||||||||||||||
Real estate
|
$ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Land development
|
— | — | — | — | — | |||||||||||||||
Other
|
— | — | — | — | — | |||||||||||||||
Residential real estate:
|
||||||||||||||||||||
First mortgages
|
— | — | — | 36 | — | |||||||||||||||
Construction
|
— | — | — | — | — | |||||||||||||||
Consumer:
|
||||||||||||||||||||
Home equity and lines of credit
|
— | — | — | 4 | — | |||||||||||||||
Other
|
— | — | — | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total impaired loans with reserve
|
— | — | — | 40 | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Impaired loans with no reserve:
|
||||||||||||||||||||
Commercial:
|
||||||||||||||||||||
Real estate
|
6,277 | 6,277 | NA | 6,268 | 332 | |||||||||||||||
Land development
|
1,492 | 1,492 | NA | 503 | 40 | |||||||||||||||
Other
|
2,804 | 2,804 | NA | 2,301 | 138 | |||||||||||||||
Residential real estate:
|
||||||||||||||||||||
First mortgages
|
411 | 495 | NA | 568 | 261 | |||||||||||||||
Construction
|
— | — | NA | — | — | |||||||||||||||
Consumer:
|
||||||||||||||||||||
Home equity and lines of credit
|
21 | 51 | NA | 24 | 3 | |||||||||||||||
Other
|
— | — | NA | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total impaired loans with no reserve
|
11,005 | 11,119 | NA | 9,664 | 774 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total impaired loans
|
$ | 11,005 | $ | 11,119 | $ | — | $ | 9,704 | $ | 774 | ||||||||||
|
|
|
|
|
|
|
|
|
|
June 30,
2021 |
December 31,
2020 |
|||||||
(in thousands)
|
||||||||
Nonaccrual loans, other than troubled debt restructurings
|
$ | 861 | $ | 1,068 | ||||
Nonaccrual loans, troubled debt restructurings
|
194 | 219 | ||||||
|
|
|
|
|||||
Total nonperforming loans (NPLs)
|
$ | 1,055 | $ | 1,287 | ||||
|
|
|
|
|||||
Troubled debt restructurings, accruing
|
$ | 425 | $ | 432 | ||||
|
|
|
|
June 30,
2021 |
December 31,
2020 |
|||||||
(in thousands)
|
||||||||
Commercial:
|
||||||||
Real estate
|
$ | — | $ | — | ||||
Land development
|
— | — | ||||||
Other
|
— | — | ||||||
Residential real estate:
|
||||||||
First mortgages
|
969 | 1,151 | ||||||
Construction
|
— | — | ||||||
Consumer:
|
||||||||
Home equity and lines of credit
|
86 | 136 | ||||||
Other
|
— | — | ||||||
|
|
|
|
|||||
Total
non-accrual
loans
|
$ | 1,055 | $ | 1,287 | ||||
|
|
|
|
|||||
Total
non-accrual
loans to total loans
|
0.32 | % | 0.39 | % | ||||
Total
non-accrual
loans to total assets
|
0.17 | % | 0.25 | % |
Three Months Ended
June 30, 2021 |
Three Months Ended
June 30, 2020 |
Six Months Ended
June 30, 2021 |
Six Months Ended
June 30, 2020 |
|||||||||||||
(in thousands)
|
(in thousands)
|
|||||||||||||||
Mortgage servicing rights beginning balance
|
$ | 2,147 | $ | 1,936 | $ | 1,806 | $ | 2,172 | ||||||||
Additions
|
117 | 247 | 320 | 346 | ||||||||||||
Amortization
|
(155 | ) | (243 | ) | (386 | ) | (361 | ) | ||||||||
Increase (decrease) in valuation allowance
|
— | (353 | ) | 369 | (570 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Mortgage servicing rights ending balance
|
$ | 2,109 | $ | 1,587 | $ | 2,109 | $ | 1,587 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Fair value at beginning of period
|
$ | 2,153 | $ | 1,958 | $ | 1,806 | $ | 2,404 | ||||||||
Fair value at end of period
|
$ | 2,361 | $ | 1,587 | $ | 2,361 | $ | 1,587 |
(in thousands)
|
||||
Estimated future amortization as of June 30, 2021:
|
||||
2021
|
$ | 447 | ||
2022
|
417 | |||
2023
|
390 | |||
2024
|
363 | |||
2025
|
332 | |||
Thereafter
|
160 | |||
|
|
|||
Total
|
$ | 2,109 | ||
|
|
June 30,
2021 |
December 31,
2020 |
|||||||
(in thousands)
|
||||||||
Non-interest
bearing checking
|
$ | 191,173 | $ | 98,970 | ||||
Interest bearing checking
|
32,990 | 30,630 | ||||||
Money market
|
94,075 | 103,724 | ||||||
Statement savings
|
66,685 | 58,895 | ||||||
Certificates of deposit1
|
81,261 | 87,629 | ||||||
|
|
|
|
|||||
Total
|
$ | 466,184 | $ | 379,848 | ||||
|
|
|
|
1
|
Included in these amounts are brokered deposits of $5.5 million at December 31, 2020. There were no brokered deposits at June 30, 2021.
|
June 30, 2021
|
||||
(in thousands)
|
||||
2021
|
$ | 35,847 | ||
2022
|
42,800 | |||
2023
|
892 | |||
2024
|
926 | |||
2025
|
619 | |||
Thereafter
|
177 | |||
|
|
|||
Total
|
$ | 81,261 | ||
|
|
June 30, 2021
|
December 31, 2020
|
|||||||||||||||
Rate
|
Amount
|
Rate
|
Amount
|
|||||||||||||
(dollars in thousands)
|
||||||||||||||||
Fixed rate, fixed term advance, maturing Jul 2021
|
1.41 | % | $ | 7,000 | 1.41 | % | $ | 7,000 | ||||||||
Fixed rate, fixed term advance, maturing Feb 2022
|
1.62 | % | 6,500 | 1.62 | % | 6,500 | ||||||||||
Fixed rate, fixed term advance, maturing Feb 2023
|
1.62 | % | 6,500 | 1.62 | % | 6,500 | ||||||||||
Putable advance, maturing Oct 2029 first put option date Nov 2020
|
1.03 | % | 10,000 | 1.03 | % | 10,000 | ||||||||||
Putable advance, maturing Feb 2030 first put option date Feb 2023
|
0.98 | % | 5,000 | 0.98 | % | 5,000 | ||||||||||
Putable advance, maturing Mar 2030 first put option date Mar 2025
|
0.89 | % | 10,000 | 0.89 | % | 10,000 | ||||||||||
Advance structured note, payments due monthly, maturing Feb 2030
|
7.47 | % | 563 | 7.47 | % | 584 | ||||||||||
Advance structured note, payments due monthly, maturing April 2030
|
1.05 | % | 8,887 | 1.05 | % | 9,365 | ||||||||||
Advance structured note, payments due monthly, maturing May 2030
|
1.19 | % | 8,973 | 1.19 | % | 9,449 | ||||||||||
Fixed rate,
COVID-19
Relief Advance, maturing May 2021
|
— | — | 0 | % | 4,000 | |||||||||||
|
|
|
|
|||||||||||||
Total
|
$ | 63,423 | $ | 68,398 | ||||||||||||
|
|
|
|
June 30, 2021
|
||||||||
Weighted
Average Rate |
Amount
|
|||||||
(dollars in thousands)
|
||||||||
2021
|
1.26 | % | $ | 7,981 | ||||
2022
|
1.54 | % | 8,481 | |||||
2023
|
1.54 | % | 8,506 | |||||
2024
|
1.28 | % | 2,032 | |||||
2025
|
1.30 | % | 2,059 | |||||
Thereafter
|
1.07 | % | 34,364 | |||||
|
|
|||||||
Total
|
$ | 63,423 | ||||||
|
|
June 30, 2021
|
||||||||||||
Fixed Rate
|
Variable Rate
|
Total
|
||||||||||
(in thousands)
|
||||||||||||
Commitments to extend credit
|
$ | 17,101 | $ | 46,019 | $ | 63,120 | ||||||
Standby letters of credit
|
23 | 2,150 | 2,173 | |||||||||
Credit enhancement under the FHLB of Chicago Mortgage Partnership Finance Program
|
1,110 | — | 1,110 | |||||||||
Commitments to sell loans
|
17,632 | — | 17,632 | |||||||||
Overdraft protection program commitments
|
4,047 | — | 4,047 | |||||||||
|
|
|
|
December 31, 2020
|
||||||||||||
Fixed Rate
|
Variable Rate
|
Total
|
||||||||||
(in thousands)
|
||||||||||||
Commitments to extend credit
|
$ | 12,084 | $ | 41,778 | $ | 53,862 | ||||||
Standby letters of credit
|
23 | 2,150 | 2,173 | |||||||||
Credit enhancement under the FHLB of Chicago Mortgage Partnership Finance Program
|
1,087 | — | 1,087 | |||||||||
Commitments to sell loans
|
53,847 | — | 53,847 | |||||||||
Overdraft protection program commitments
|
4,104 | — | 4,104 |
June 30,
2021 |
December 31,
2020 |
|||||||
(dollars in thousands)
|
||||||||
Shares committed to be released
|
3,510 | 7,021 | ||||||
Total allocated shares
|
14,042 | 7,021 | ||||||
Total unallocated shares
|
157,976 | 161,486 | ||||||
|
|
|
|
|||||
Total ESOP shares
|
175,528 | 175,528 | ||||||
|
|
|
|
|||||
Fair value of unallocated shares (based on $15.03 and $9.96 share price as of June 30, 2021 and December 31, 2020, respectively)
|
$ | 2,374 | $ | 1,608 | ||||
|
|
|
|
June 30,
2021 |
December 31,
2020 |
|||||||
(in thousands)
|
||||||||
Beginning balance
|
$ | 1,034 | $ | 1,172 | ||||
New loans
|
32 | 512 | ||||||
Repayments
|
(270 | ) | (650 | ) | ||||
|
|
|
|
|||||
Ending balance
|
$ | 796 | $ | 1,034 | ||||
|
|
|
|
|
Recurring Fair Value Measurements Using
|
|||||||||||||||
June 30,
2021 |
Level 1
|
Level 2
|
Level 3
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Marketable equity securities:
|
$ | 3,419 | $ | 3,419 | $ | — | $ | — | ||||||||
Securities
available-for-sale:
|
||||||||||||||||
Obligations of states and political subdivisions
|
21,087 | — | 21,087 | — | ||||||||||||
Government-sponsored mortgage-backed securities
|
61,053 | — | 61,053 | — | ||||||||||||
Corporate collateralized mortgage obligations
|
764 | — | 764 | — | ||||||||||||
Asset-backed securities
|
6,944 | — | 6,944 | — | ||||||||||||
Certificates of deposit
|
1,558 | — | 1,558 | — | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total
|
$ | 94,825 | $ | 3,419 | $ | 91,406 | $ | — | ||||||||
|
|
|
|
|
|
|
|
|
Recurring Fair Value Measurements Using
|
|||||||||||||||
December 31,
2020 |
Level 1
|
Level 2
|
Level 3
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Marketable equity securities:
|
$ | 2,992 | $ | 2,992 | $ | — | $ | — | ||||||||
Securities
available-for-sale:
|
||||||||||||||||
Obligations of states and political subdivisions
|
11,803 | — | 11,803 | — | ||||||||||||
Government-sponsored mortgage-backed securities
|
38,039 | — | 38,039 | — | ||||||||||||
Asset-backed securities
|
7,281 | — | 7,281 | — | ||||||||||||
Certificates of deposit
|
1,580 | — | 1,580 | — | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total
|
$ | 61,695 | $ | 2,992 | $ | 58,703 | $ | — | ||||||||
|
|
|
|
|
|
|
|
June 30, 2021
|
||||||||||||||||
Carrying Value
|
Level 1
|
Level 2
|
Level 3
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Financial assets:
|
||||||||||||||||
Cash and cash equivalents
|
$ | 145,817 | $ | 145,817 | $ | — | $ | — | ||||||||
Available for sale securities
|
91,406 | — | 91,406 | — | ||||||||||||
Marketable equity securities
|
3,419 | 3,419 | — | — | ||||||||||||
Loans held for sale
|
1,340 | — | 1,340 | — | ||||||||||||
Loans
|
330,903 | — | — | 332,871 | ||||||||||||
Rate lock commitments
|
123 | — | — | 123 | ||||||||||||
Accrued interest receivable
|
879 | 879 | — | — | ||||||||||||
Federal Home Loan Bank stock
|
3,032 | — | — | 3,032 | ||||||||||||
Cash value of life insurance
|
13,686 | — | — | 13,686 | ||||||||||||
Financial liabilities:
|
||||||||||||||||
Deposits
|
466,184 | 384,924 | — | 81,340 | ||||||||||||
Advance payments by borrowers for taxes and insurance
|
9,167 | 9,167 | — | — | ||||||||||||
Federal Home Loan Bank advances
|
63,423 | — | — | 64,817 | ||||||||||||
Accrued interest payable
|
130 | 130 | — | — |
December 31, 2020
|
||||||||||||||||
Carrying Value
|
Level 1
|
Level 2
|
Level 3
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Financial assets:
|
||||||||||||||||
Cash and cash equivalents
|
$ | 92,526 | $ | 92,526 | $ | — | $ | — | ||||||||
Available for sale securities
|
58,703 | — | 58,703 | — | ||||||||||||
Marketable equity securities
|
2,992 | 2,992 | — | — | ||||||||||||
Loans held for sale
|
2,484 | — | 2,484 | — | ||||||||||||
Loans
|
329,073 | — | — | 332,882 | ||||||||||||
Rate lock commitments
|
354 | — | — | 354 | ||||||||||||
Accrued interest receivable
|
912 | 912 | — | — | ||||||||||||
Federal Home Loan Bank Stock
|
3,032 | — | — | 3,032 | ||||||||||||
Cash value of life insurance
|
13,485 | — | — | 13,485 | ||||||||||||
Financial liabilities:
|
||||||||||||||||
Deposits
|
379,848 | 292,219 | — | 87,884 | ||||||||||||
Advance payments by borrowers for taxes and insurance
|
2,737 | 2,737 | — | — | ||||||||||||
Federal Home Loan Bank advances
|
63,398 | — | — | 70,561 | ||||||||||||
Accrued interest payable
|
183 | 183 | — | — |
June 30, 2021
|
||||||||||||||||||||||||
Actual
|
For Capital Adequacy
Purposes |
To Be Well Capitalized
Under Prompt Corrective Action Provisions |
||||||||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||||||||
(dollars in thousands)
|
||||||||||||||||||||||||
PyraMax Bank
|
||||||||||||||||||||||||
Leverage (Tier 1)
|
$ | 50,739 | 9.7 | % | $ | 20,933 | 4.0 | % | $ | 26,167 | 5.0 | % | ||||||||||||
Risk-based:
|
||||||||||||||||||||||||
Common Equity Tier 1
|
50,739 | 15.3 | % | 14,955 | 4.5 | % | 21,601 | 6.5 | % | |||||||||||||||
Tier 1
|
50,739 | 15.3 | % | 19,940 | 6.0 | % | 26,586 | 8.0 | % | |||||||||||||||
Total
|
53,471 | 16.1 | % | 26,586 | 8.0 | % | 33,233 | 10.0 | % |
December 31, 2020
|
||||||||||||||||||||||||
Actual
|
For Capital Adequacy
Purposes |
To Be Well Capitalized
Under Prompt Corrective Action Provisions |
||||||||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||||||||
(dollars in thousands)
|
||||||||||||||||||||||||
PyraMax Bank
|
||||||||||||||||||||||||
Leverage (Tier 1)
|
$ | 49,534 | 9.8 | % | $ | 20,195 | 4.0 | % | $ | 25,243 | 5.0 | % | ||||||||||||
Risk-based:
|
||||||||||||||||||||||||
Common Equity Tier 1
|
49,534 | 15.1 | % | 14,725 | 4.5 | % | 21,269 | 6.5 | % | |||||||||||||||
Tier 1
|
49,534 | 15.1 | % | 19,633 | 6.0 | % | 26,177 | 8.0 | % | |||||||||||||||
Total
|
52,237 | 16.0 | % | 26,177 | 8.0 | % | 32,722 | 10.0 | % |
Three months ended June 30,
|
Six months ended June 30,
|
|||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
(In thousands, except per share
amounts) |
(In thousands, except per share
amounts) |
|||||||||||||||
Net (loss) income
|
$ | (51 | ) | $ | 194 | $ | 470 | $ | 481 | |||||||
|
|
|
|
|
|
|
|
|||||||||
Weighted shares outstanding for basic EPS
|
||||||||||||||||
Weighted average shares outstanding
|
4,759 | 4,686 | 4,754 | 4,689 | ||||||||||||
Less: Weighted average unallocated ESOP shares
|
159 | 166 | 160 | 167 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Weighted average shares outstanding for basic EPS
|
4,600 | 4,520 | 4,594 | 4,522 | ||||||||||||
Additional dilutive shares
|
83 | 34 | 62 | 33 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Weighted average shares outstanding for dilutive EPS
|
4,683 | 4,554 | 4,656 | 4,555 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Basic (loss) income per share
|
$ | (0.01 | ) | $ | 0.04 | $ | 0.10 | $ | 0.11 | |||||||
Diluted (loss) income per share
|
$ | (0.01 | ) | $ | 0.04 | $ | 0.10 | $ | 0.11 | |||||||
|
|
|
|
|
|
|
|
June 30,
2021
|
||||
Dividend yield
|
0.00 | % | ||
Risk-free interest rate
|
0.96 | % | ||
Expected volatility
|
24.64 | % | ||
Weighted average expected life
|
6.5 | |||
Weighted average per share value of options
|
$ | 2.76 |
Stock Options
|
Shares
|
Weighted
Average Exercise Price |
Weighted
Average Remaining in Contractual Term (Years) |
Aggregate
Intrinsic Value |
||||||||||||
Outstanding December 31, 2020
|
218,115 | $ | 7.89 | 9.30 | 451,154 | |||||||||||
Granted
(1)
|
28,350 | 10.21 | 9.67 | — | ||||||||||||
Exercised
|
— | — | — | — | ||||||||||||
Forfeited
|
— | — | — | — | ||||||||||||
|
|
|
|
|||||||||||||
Outstanding June 30, 2021
|
246,465 | 8.16 | 8.98 | 1,654,221 | ||||||||||||
|
|
|
|
|||||||||||||
Options exercisable at June 30, 2021
|
43,625 | 7.89 | 8.88 | 304,434 | ||||||||||||
|
|
|
|
(1) |
Includes 7,998 shares granted as a nonqualified stock option inducement award to the Company’s President and Chief Operating Officer.
|
Stock Options
|
Shares
|
Weighted Average
Grant Date Fair Value |
||||||
Nonvested at December 31, 2020
|
218,115 | $ | 1.98 | |||||
Granted
(1)
|
28,350 | 2.76 | ||||||
Vested
|
(43,625 | ) | 1.98 | |||||
Forfeited
|
— | — | ||||||
|
|
|
|
|||||
Nonvested at June 30, 2021
|
202,840 | $ | 2.09 | |||||
|
|
|
|
(1) |
Includes 7,998 shares granted as a nonqualified stock option inducement award to the Company’s President and Chief Operating Officer.
|
Restricted Stock
|
Shares
|
Weighted Average
Grant Date Fair Value |
||||||
Nonvested at December 31, 2020
|
84,949 | $ | 7.87 | |||||
Granted
(1)
|
11,436 | 10.21 | ||||||
Vested
|
(16,991 | ) | 7.87 | |||||
Forfeited
|
— | — | ||||||
|
|
|
|
|||||
Nonvested at June 30, 2021
|
79,394 | $ | 8.21 | |||||
|
|
|
|
|||||
(1) |
Includes 7,998 shares granted as a nonqualified stock option inducement award to the Company’s President and Chief Operating Officer.
|
Item 2.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
• |
statements of our goals, intentions and expectations;
|
• |
statements regarding our business plans, prospects, growth and operating strategies;
|
• |
statements regarding the quality of our loan and investment portfolios; and
|
• |
estimates of our risks and future costs and benefits.
|
• |
general economic conditions, either nationally or in our market areas, that are worse than expected;
|
• |
changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for loan losses;
|
• |
our ability to access cost-effective funding;
|
• |
fluctuations in real estate values and both residential and commercial real estate market conditions;
|
• |
demand for loans and deposits in our market area;
|
• |
our ability to implement and change our business strategies;
|
• |
competition among depository and other financial institutions;
|
• |
inflation and changes in the interest rate environment that reduce our margins and yields, our mortgage banking revenues, the fair value of financial instruments or our level of loan originations, or increase the level of defaults, losses and prepayments on loans we have made and make;
|
• |
adverse changes in the securities or secondary mortgage markets;
|
• |
changes in laws or government regulations or policies affecting financial institutions, including changes in regulatory fees and capital requirements, including as a result of Basel III;
|
• |
the impact of the Dodd-Frank Act and the implementing regulations;
|
• |
changes in the quality or composition of our loan or investment portfolios;
|
• |
technological changes that may be more difficult or expensive than expected;
|
• |
the inability of third-party providers to perform as expected;
|
• |
our ability to manage market risk, credit risk and operational risk in the current economic environment;
|
• |
our ability to enter new markets successfully and capitalize on growth opportunities;
|
• |
our ability to successfully integrate into our operations any assets, liabilities, customers, systems and management personnel we may acquire and our ability to realize related revenue synergies and cost savings within expected time frames, and any goodwill charges related thereto;
|
• |
changes in consumer spending, borrowing and savings habits;
|
• |
changes in accounting policies and practices, as may be adopted by the bank regulatory agencies, the Financial Accounting Standards Board, the Securities and Exchange Commission or the Public Company Accounting Oversight Board;
|
• |
our ability to retain key employees;
|
• |
our compensation expense associated with equity allocated or awarded to our employees; and
|
• |
changes in the financial condition, results of operations or future prospects of issuers of securities that we own.
|
Three Months Ended June 30,
|
||||||||||||||||||||||||
2021
|
2020
|
|||||||||||||||||||||||
Average
Outstanding Balance |
Interest and
Dividends |
Yield/Cost
Rate |
Average
Outstanding Balance |
Interest and
Dividends |
Yield/Cost
Rate |
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||
Loans
|
$ | 336,634 | $ | 3,125 | 3.72 | % | $ | 328,948 | $ | 3,197 | 3.90 | % | ||||||||||||
Securities
available-for-sale
|
79,527 | 335 | 1.69 | % | 67,597 | 381 | 2.26 | % | ||||||||||||||||
Other interest-earning assets
|
73,231 | 51 | 0.28 | % | 46,246 | 8 | 0.07 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Total interest-earning assets
|
489,392 | 3,511 | 2.88 | % | 442,791 | 3,586 | 3.25 | % | ||||||||||||||||
Non-interest-earning
assets
|
37,690 | 37,616 | ||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Total assets
|
$ | 527,082 | $ | 480,407 | ||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Interest-earning liabilities:
|
||||||||||||||||||||||||
NOW accounts
|
$ | 33,596 | $ | 10 | 0.12 | % | $ | 26,112 | $ | 11 | 0.17 | % | ||||||||||||
Money market accounts
|
98,513 | 61 | 0.25 | % | 71,786 | 101 | 0.57 | % | ||||||||||||||||
Savings accounts
|
65,042 | 8 | 0.05 | % | 52,182 | 14 | 0.11 | % | ||||||||||||||||
Certificates of deposit
|
81,329 | 114 | 0.56 | % | 109,813 | 489 | 1.79 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Total interest-bearing deposits
|
278,480 | 193 | 0.28 | % | 259,893 | 615 | 0.95 | % | ||||||||||||||||
Federal Home Loan Bank advances
|
65,009 | 200 | 1.23 | % | 67,777 | 200 | 1.18 | % | ||||||||||||||||
Other interest-bearing liabilities
|
7,733 | — | — | 8,153 | — | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Total interest-bearing liabilities
|
351,222 | 393 | 0.45 | % | 335,823 | 815 | 0.97 | % | ||||||||||||||||
Non-interest-bearing
deposits
|
114,195 | 87,551 | ||||||||||||||||||||||
Other
non-interest-bearing
liabilities
|
5,697 | 4,170 | ||||||||||||||||||||||
|
|
|
|
Three Months Ended June 30,
|
||||||||||||||||||||||||
2021
|
2020
|
|||||||||||||||||||||||
Average
Outstanding Balance |
Interest and
Dividends |
Yield/Cost
Rate |
Average
Outstanding Balance |
Interest and
Dividends |
Yield/Cost
Rate |
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
Total liabilities
|
471,114 | 427,544 | ||||||||||||||||||||||
Total stockholders’ equity
|
55,968 | 52,863 | ||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Total liabilities and stockholders’ equity
|
$ | 527,082 | $ | 480,407 | ||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Net interest income
|
$ | 3,118 | $ | 2,771 | ||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Net interest-earning assets
|
$ | 138,170 | $ | 106,968 | ||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Interest rate spread
(1)
|
2.43 | % | 2.27 | % | ||||||||||||||||||||
Net interest margin
(2)
|
2.56 | % | 2.50 | % | ||||||||||||||||||||
Average interest-earning assets to average interest-bearing liabilities
|
139.34 | % | 131.85 | % |
(1) |
Interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.
|
(2) |
Net interest margin represents net interest income divided by average total interest-earning assets.
|
Six Months Ended June 30,
|
||||||||||||||||||||||||
2021
|
2020
|
|||||||||||||||||||||||
Average
Outstanding Balance |
Interest and
Dividends |
Yield/Cost
Rate |
Average
Outstanding Balance |
Interest and
Dividends |
Yield/Cost
Rate |
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||
Loans
|
$ | 334,682 | $ | 6,418 | 3.87 | % | $ | 319,441 | $ | 6,610 | 4.15 | % | ||||||||||||
Securities
available-for-sale
|
69,905 | 603 | 1.74 | % | 68,737 | 788 | 2.30 | % | ||||||||||||||||
Other interest-earning assets
|
78,602 | 107 | 0.27 | % | 31,149 | 48 | 0.31 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Total interest-earning assets
|
483,189 | 7,128 | 2.97 | % | 419,327 | 7,446 | 3.56 | % | ||||||||||||||||
Non-interest-earning
assets
|
36,569 | 36,285 | ||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Total assets
|
$ | 519,758 | $ | 455,612 | ||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Interest-earning liabilities:
|
||||||||||||||||||||||||
NOW accounts
|
$ | 32,720 | $ | 19 | 0.12 | % | $ | 25,859 | $ | 30 | 0.23 | % | ||||||||||||
Money market accounts
|
100,285 | 140 | 0.28 | % | 69,618 | 252 | 0.73 | % | ||||||||||||||||
Savings accounts
|
63,532 | 18 | 0.06 | % | 50,037 | 30 | 0.12 | % | ||||||||||||||||
Certificates of deposit
|
82,809 | 272 | 0.66 | % | 120,826 | 1,153 | 1.91 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Total interest-bearing deposits
|
279,346 | 449 | 0.32 | % | 266,340 | 1,465 | 1.10 | % | ||||||||||||||||
Federal Home Loan Bank advances
|
66,544 | 400 | 1.21 | % | 49,035 | 309 | 1.26 | % | ||||||||||||||||
Other interest-bearing liabilities
|
6,480 | — | — | 5,986 | — | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Total interest-bearing liabilities
|
352,370 | 849 | 0.49 | % | 321,361 | 1,774 | 1.11 | % | ||||||||||||||||
Non-interest-bearing
deposits
|
106,114 | 77,146 | ||||||||||||||||||||||
Other
non-interest-bearing
liabilities
|
5,436 | 3,477 | ||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Total liabilities
|
463,920 | 401,984 | ||||||||||||||||||||||
Total stockholders’ equity
|
55,838 | 53,628 | ||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Total liabilities and stockholders’ equity
|
$ | 519,758 | $ | 455,612 | ||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Net interest income
|
$ | 6,279 | $ | 5,672 | ||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Net interest-earning assets
|
$ | 130,819 | $ | 97,966 | ||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Interest rate spread
(1)
|
2.48 | % | 2.45 | % | ||||||||||||||||||||
Net interest margin
(2)
|
2.62 | % | 2.71 | % | ||||||||||||||||||||
Average interest-earning assets to average interest-bearing liabilities
|
137.13 | % | 130.48 | % |
(1) |
Interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.
|
(2) |
Net interest margin represents net interest income divided by average total interest-earning assets.
|
Three Months Ended June 30,
2021 vs. 2020 |
||||||||||||
Increase (Decrease) Due to
|
Total
Increase (Decrease) |
|||||||||||
Volume
|
Rate
|
|||||||||||
(Dollars in thousands)
|
||||||||||||
Interest-earning assets:
|
||||||||||||
Loans
|
$ | 78 | (150 | ) | (72 | ) | ||||||
Securities
|
106 | (152 | ) | (46 | ) | |||||||
Other
|
7 | 36 | 43 | |||||||||
|
|
|
|
|
|
|||||||
Total interest-earning assets
|
191 | (266 | ) | (75 | ) | |||||||
|
|
|
|
|
|
|||||||
Interest-bearing liabilities:
|
||||||||||||
NOW
|
(39 | ) | 40 | 1 | ||||||||
Money market deposits
|
(79 | ) | 119 | 40 | ||||||||
Savings
|
(6 | ) | 12 | 6 | ||||||||
Certificates of deposit
|
103 | 272 | 375 | |||||||||
|
|
|
|
|
|
|||||||
Total interest-bearing deposits
|
(21 | ) | 443 | 422 | ||||||||
Borrowings
|
4 | (4 | ) | — | ||||||||
Other
|
— | — | — | |||||||||
|
|
|
|
|
|
|||||||
Total interest-bearing liabilities
|
(17 | ) | 439 | 422 | ||||||||
|
|
|
|
|
|
|||||||
Change in net interest income
|
$ | 174 | 173 | 347 | ||||||||
|
|
|
|
|
|
Six Months Ended June 30,
2021 vs. 2020 |
||||||||||||
Increase (Decrease) Due to
|
Total
Increase (Decrease) |
|||||||||||
Volume
|
Rate
|
|||||||||||
(Dollars in thousands)
|
||||||||||||
Interest-earning assets:
|
||||||||||||
Loans
|
$ | 358 | (550 | ) | (192 | ) | ||||||
Securities
|
14 | (199 | ) | (185 | ) | |||||||
Other
|
64 | (5 | ) | 59 | ||||||||
|
|
|
|
|
|
|||||||
Total interest-earning assets
|
436 | (754 | ) | (318 | ) | |||||||
|
|
|
|
|
|
|||||||
Interest-bearing liabilities:
|
||||||||||||
NOW
|
(12 | ) | 23 | 11 | ||||||||
Money market deposits
|
(284 | ) | 396 | 112 | ||||||||
Savings
|
(13 | ) | 25 | 12 | ||||||||
Certificates of deposit
|
286 | 595 | 881 | |||||||||
|
|
|
|
|
|
|||||||
Total interest-bearing deposits
|
(23 | ) | 1,039 | 1,016 | ||||||||
Borrowings
|
(105 | ) | 14 | (91 | ) | |||||||
Other
|
— | — | — | |||||||||
|
|
|
|
|
|
|||||||
Total interest-bearing liabilities
|
(128 | ) | 1,053 | 925 | ||||||||
|
|
|
|
|
|
|||||||
Change in net interest income
|
$ | 308 | 299 | 607 | ||||||||
|
|
|
|
|
|
• |
originating commercial real estate and commercial loans, which tend to have shorter terms and higher interest rates than owner occupied
one-
to four-family residential real estate loans, and which generate customer relationships that can result in larger
non-interest-bearing
checking accounts;
|
• |
selling substantially all of our conforming and eligible jumbo, longer-term, fixed-rate
one-
to four-family residential real estate loans and retaining the
non-conforming
and shorter-term, fixed-rate and adjustable-rate
one-
to four-family residential real estate loans that we originate, subject to market conditions and periodic review of our asset/liability management needs; and
|
• |
reducing our dependence on jumbo and brokered certificates of deposit to support lending and investment activities and increasing our reliance on core deposits, including checking accounts and savings accounts, which are less interest rate sensitive than certificates of deposit.
|
Change in Interest
Rates (basis points)
(1)
|
Net Interest Income
Year 1 Forecast |
Year 1 Change
from Level |
||||||
(Dollars in thousands)
|
||||||||
+400
|
$ | 17,003 | 42.92 | % | ||||
+300
|
15,807 | 32.86 | % | |||||
+200
|
14,533 | 22.15 | % | |||||
+100
|
13,225 | 11.16 | % | |||||
Level
|
11,897 | — | % | |||||
-100
|
11,245 | (5.49 | )% |
(1) |
Assumes an immediate uniform change in interest rates at all maturities.
|
Estimated Increase (Decrease) in EVE
|
||||||||||||
Basis Point (“bp”) Change in
Interest Rates
(1)
|
Estimated EVE
(2)
|
Amount
|
Percent
|
|||||||||
(Dollars in thousands)
|
||||||||||||
400
|
$ | 85,813 | $ | 18,848 | 28.15 | % | ||||||
300
|
81,691 | 14,726 | 21.99 | % | ||||||||
200
|
77,899 | 10,934 | 16.33 | % | ||||||||
100
|
73,225 | 6,260 | 9.35 | % | ||||||||
—
|
66,965 | — | — | % | ||||||||
(100)
|
60,164 | (6,801 | ) | (10.16 | %) |
(1) |
Assumes an instantaneous uniform change in interest rates at all maturities.
|
(2) |
EVE is the discounted present value of expected cash flows from assets, liabilities and
off-balance
sheet contracts.
|
June 30, 2021
|
||||||||||||||||||||||||
Actual
|
For Capital Adequacy
Purposes |
To Be Well Capitalized
Under Prompt Corrective Action Provisions |
||||||||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||||||||
(dollars in thousands)
|
||||||||||||||||||||||||
Leverage (Tier 1)
|
$ | 50,739 | 9.7 | % | $ | 20,933 | 4.0 | % | $ | 26,167 | 5.0 | % | ||||||||||||
Risk-based:
|
||||||||||||||||||||||||
Common Tier 1
|
50,739 | 15.3 | % | 14,955 | 4.5 | % | 21,601 | 6.5 | % | |||||||||||||||
Tier 1
|
50,739 | 15.3 | % | 19,940 | 6.0 | % | 26,586 | 8.0 | % | |||||||||||||||
Total
|
53,471 | 16.1 | % | 26,586 | 8.0 | % | 33,233 | 10.0 | % |
Payments Due by Period
|
||||||||||||||||||||
Contractual Obligations
|
Total
|
Less Than
One Year |
One to Three
Years |
Three to Five
Years |
More Than
Five Years |
|||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
At June 30, 2021:
|
||||||||||||||||||||
Long-term debt obligations
|
$ | 63,423 | $ | 15,469 | $ | 10,513 | $ | 4,118 | $ | 33,323 | ||||||||||
Operating lease obligations
|
266 | 77 | 167 | 22 | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total
|
$ | 63,689 | $ | 15,546 | $ | 10,680 | $ | 4,140 | $ | 33,323 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
At December 31, 2020:
|
||||||||||||||||||||
Long-term debt obligations
|
$ | 68,398 | $ | 12,956 | $ | 16,987 | $ | 4,091 | $ | 34,364 | ||||||||||
Operating lease obligations
|
20 | 20 | — | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total
|
$ | 68,418 | $ | 12,976 | $ | 16,987 | $ | 4,091 | $ | 34,364 | ||||||||||
|
|
|
|
|
|
|
|
|
|
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk
|
Item 4.
|
Controls and Procedures
|
Item 1.
|
Legal Proceedings
|
Item 1A.
|
Risk Factors
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
Item 3.
|
Defaults Upon Senior Securities
|
Item 4.
|
Mine Safety Disclosures
|
Item 5.
|
Other Information
|
Item 6.
|
Exhibits
|
* |
Furnished, not filed.
|
1895 BANCORP OF WISCONSIN, INC.
|
||||||
Date: August 13, 2021 |
/s/ Richard B. Hurd
|
|||||
Richard B. Hurd | ||||||
President and Chief Executive Officer | ||||||
Date: August 13, 2021 |
/s/ Richard J. Krier
|
|||||
Richard J. Krier | ||||||
Chief Financial Officer
(Principal Financial and Accounting Officer)
|
Exhibit 31.1
Certification of Chief Executive Officer and Chief Financial Officer
Pursuant to Section 312 of the Sarbanes-Oxley Act of 2002
I, Richard B. Hurd, certify that:
1. |
I have reviewed this Quarterly Report on Form 10-Q of 1895 Bancorp of Wisconsin, Inc.; |
2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. |
The registrants other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under out supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) |
Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) |
Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
5. |
The registrants other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants board of directors: |
a) |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and |
b) |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting. |
Date: August 13, 2021 |
/s/ Richard B. Hurd |
|||
Richard B. Hurd | ||||
President and Chief Executive Officer |
Exhibit 31.2
Certification of Chief Executive Officer and Chief Financial Officer
Pursuant to Section 312 of the Sarbanes-Oxley Act of 2002
I, Richard J. Krier, certify that:
1. |
I have reviewed this Quarterly Report on Form 10-Q of 1895 Bancorp of Wisconsin, Inc.; |
2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. |
The registrants other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under out supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) |
Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) |
Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
5. |
The registrants other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants board of directors: |
a) |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and |
b) |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting. |
Date: August 13, 2021 |
/s/ Richard J. Krier |
|||
Richard J. Krier | ||||
Senior Vice President and Chief Financial Officer |
Exhibit 32.1
Certification of Chief Executive Officer and Chief Financial Officer
Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
Richard B. Hurd, President and Chief Executive Officer of 1895 Bancorp of Wisconsin, Inc. (the Company), and Richard J. Krier, Senior Vice President and Chief Financial Officer of the Company, each certifies in his capacity as an executive officer of the Company that he has reviewed the Quarterly Report on Form 10-Q for the quarter ended June 30, 2021 (the Report) and that, to the best of his knowledge:
1. |
The Report fully complies with the requirements of Sections 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. |
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: August 13, 2021 |
/s/ Richard B. Hurd |
|||
Richard B. Hurd | ||||
President and Chief Executive Officer |
Date: August 13, 2021 |
/s/ Richard J. Krier |
|||
Richard J. Krier | ||||
Senior Vice President and Chief Financial Officer |
A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.