☒ | 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 |
001-40609
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) |
YES ☒ NO ☐
YES ☒ NO ☐
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer | ☒ | Smaller reporting company | ☒ | |||
Emerging growth company | ☒ |
YES ☐ NO ☒
The Registrant had no
EXPLANATORY NOTE
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 | 0— | 0— | 0— | 0— | ||||||||||||
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 | 0 | 0 | 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 | 0 | ||||||||||||
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 | 0 | 1 | 0 | (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 | 0 | 0 | (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 | 0— | 0— | 0— | 0— | ||||||||||||
Loans charged-off | 0— | 0— | (1 | ) | (1 | ) | ||||||||||
Recoveries | 4 | 0— | 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 | 0— | 0— | 0— | 0— | ||||||||||||
Loans charged-off | 0— | 0— | 0— | 0— | ||||||||||||
Recoveries | 2 | 0— | 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 | 0— | 0— | 0— | 0— | ||||||||||||
Loans charged-off | 0— | 0— | (17 | ) | (17 | ) | ||||||||||
Recoveries | 9 | 0— | 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 | 0— | 0— | 0— | 0— | ||||||||||||
Loans charged-off | 0— | 0— | (5 | ) | (5 | ) | ||||||||||
Recoveries | 8 | 0— | 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 | $ | 0— | $ | 0— | $ | 0— | $ | 0— | ||||||||
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 | $ | 0— | $ | 0— | $ | 0— | $ | 0— | ||||||||
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 | $ | 0 | $ | 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 | $ | 0 | $ | 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 | 0 | (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 0 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 | 0 | 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 | 0 | 0 | — | — | ||||||||||||
Forfeited | 0 | 0 | — | — | ||||||||||||
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 | 0 | 0 | ||||||
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. |
2
PART ITable of Contents
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 | — | 0 | ||||||
Nonvested at June 30, 2021 | 79,394 | $ | 8.21 | |||||
Includes 7,998 shares granted as a nonqualified stock option inducement award to the Company’s President and Chief Operating Officer. |
Not applicable. Please see
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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 | ||||||||
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 |
3
Item 1. | Legal Proceedings |
Not applicable. Please see
Item 1A. | Risk Factors |
Not applicable. Please see
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
Not applicable. Please see the “Explanatory Note.”
Item 3. | Defaults Upon Senior Securities |
Not applicable. Please see the “Explanatory Note.”
Item 4. | Mine Safety Disclosures |
Item 5. | Other Information |
Item 6. | Exhibits |
4
* | Furnished, not filed. |
1895 BANCORP OF WISCONSIN, INC. | ||||||
Date: | /s/ Richard B. Hurd | |||||
Richard B. Hurd | ||||||
President and Chief Executive Officer | ||||||
Date: | /s/ Richard J. Krier | |||||
Richard J. Krier | ||||||
Chief Financial Officer (Principal Financial and Accounting Officer) |
5