EWSB Bancorp (EWSB) 10-Q 2024 Q3 Quarterly report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended September 30, 2024

OR

☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from             to             

Commission File Number: 333-277828

EWSB BANCORP, INC.

(Exact Name of Registrant as Specified in Its Charter)

Maryland	Applied For
(State of Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)

109 West Second Street, Kaukauna, Wisconsin 54130

(Address of Principal Executive Offices) (Zip Code)

(920) 766-4646

(Registrant’s Telephone Number, Including Area Code)

Not applicable

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	EWSB	OTCQB Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer	☐	Accelerated Filer	☐
Non-accelerated Filer	☒	Smaller Reporting Company	☒
Emerging growth company	☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of November 13, 2024, the Registrant had 752,538 shares of common stock, par value $0.01 per share issued and outstanding.

TABLE OF CONTENTS

		Page
PART I.	FINANCIAL INFORMATION
Item 1.	Financial Statements	1
	Consolidated Balance Sheets as of September 30, 2024 (unaudited) and December 31, 2023	1
	Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2024 and 2023 (unaudited)	2
	Consolidated Statements of Comprehensive Income (Loss) for the Three and Nine Months Ended September 30, 2024 and 2023 (unaudited)	4
	Consolidated Statements of Changes in Equity for the Three and Nine Months Ended September 30, 2024 and 2023 (unaudited)	5
	Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2024 and 2023 (unaudited)	6
	Notes to Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	24
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	38
Item 4.	Controls and Procedures	38
PART II.	OTHER INFORMATION
Item 1.	Legal Proceedings	39
Item 1A.	Risk Factors	39
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	39
Item 3.	Defaults Upon Senior Securities	39
Item 4.	Mine Safety Disclosures	39
Item 5.	Other Information	39
Item 6.	Exhibits	40
Signatures		40

i

EXPLANATORY NOTE

EWSB Bancorp, Inc. (the “Company,” “we” or “our”) is the stock holding company for East Wisconsin Savings Bank (the “Bank”). The Company became the holding company for the Bank upon the completion of the conversion of Wisconsin Mutual Bancorp, MHC (the “MHC”) from the mutual holding company to the stock holding company form of organization on September 20, 2024 the date of the conversion transaction closing.

The unaudited consolidated financial statements and other financial information contained in this Quarterly Report on Form 10-Q should be read in conjunction with the audited consolidated financial statements and related notes of the MHC as of and for the years ended December 31, 2023 and 2022 contained in the Company’s definitive prospectus dated June 28, 2024 (the “Prospectus”), as filed with the Securities and Exchange Commission on July 8, 2024 pursuant to Rule 424(b)(3) promulgated under the Securities Act of 1933, as amended.

ii

EWSB BANCORP, INC. AND SUBSIDIARY

UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2024

Consolidated Balance Sheets

	September 30, 2024		December 31, 2023
	(unaudited)
Assets
Cash and cash equivalents	$	1,146,500	$	1,608,709
Time deposits with other financial institutions		4,498,496		4,497,669
Debt securities available for sale (amortized cost of $26,993,882 and $27,880,997 as of September 30, 2024 and December 31, 2023, respectively)		23,765,336		23,947,775
Debt securities held to maturity (fair value of $39,853,800 and $39,804,828 as of September 30, 2024 and December 31, 2023, respectively)		39,457,460		40,050,858
Loans, net of allowance of $1,113,453 and $1,056,796 as of September 30, 2024 and December 31, 2023, respectively		181,495,684		174,315,171
Land held for sale		435,328		435,328
Office properties and equipment, net		2,886,487		2,910,169
Federal Home Loan Bank stock		1,334,963		1,084,273
Cash value of life insurance		7,636,646		7,462,397
Net deferred tax assets		4,952,205		4,857,846
Accrued interest receivable and other assets		1,592,076		1,396,766
TOTAL ASSETS	$	269,201,181	$	262,566,961
Liabilities and Equity
Deposits:
Non-interest bearing	$	9,148,598	$	10,250,495
Interest bearing		214,691,621		220,217,134
Total deposits		223,840,219		230,467,629
Borrowed funds		25,301,000		19,030,000
Advance payments by borrowers for taxes and insurance		1,749,185		280,026
Accrued interest payable and other liabilities		1,866,588		1,252,482
Total liabilities		252,756,992		251,030,137
Equity:
Common stock ($0.01 par value, 4,000,000 shares authorized, 752,538 shares issued and outstanding)		7,525		—
Additional paid-in capital		5,470,717		—
Retained earnings		18,027,068		19,198,973
Unallocated common shares held by Employee Stock Ownership Plan (ESOP)		(523,967)		—
Accumulated other comprehensive income (loss)		(6,537,154)		(7,662,149)
Total stockholders' equity		16,444,189		11,536,824
TOTAL LIABILITIES AND EQUITY	$	269,201,181	$	262,566,961

See accompanying notes to unaudited consolidated financial statements.

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EWSB BANCORP, INC. AND SUBSIDIARY

Consolidated Statements of Operations (unaudited)

	Three Months Ended		Three Months Ended		Nine Months Ended		Nine Months Ended
	September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
Interest income:
Loans, including fees	$	2,165,404	$	1,921,256	$	6,232,409	$	5,625,429
Securities:
Taxable		261,963		273,481		794,457		925,954
Tax-exempt		9,400		9,407		28,200		28,217
Other		37,507		34,936		122,731		88,839
Total interest income		2,474,274		2,239,080		7,177,797		6,668,439
Interest expense:
Deposits		1,341,142		982,665		3,832,847		2,500,610
Borrowed funds		326,489		205,269		898,110		512,349
Total interest expense		1,667,631		1,187,934		4,730,957		3,012,959
Net interest income		806,643		1,051,146		2,446,840		3,655,480
Provision for credit losses		9,652		36,322		130,142		262,761
Net interest income after provision for credit losses		796,991		1,014,824		2,316,698		3,392,719
Noninterest income:
Service charges on deposit accounts		19,860		13,734		60,212		44,889
Interchange income		60,606		59,655		179,950		182,846
Mortgage banking income		129,007		144,647		358,159		306,729
Increase in cash value of life insurance		60,554		54,949		174,248		158,293
Gain on interest rate swap		88,246		—		261,691		—
Gain on sale of fixed assets		—		207,738		—		207,738
Gain on sale of other real estate owned		—		—		—		71,012
Other		152,034		90,033		371,138		192,441
Total noninterest income		510,307		570,756		1,405,398		1,163,948

See accompanying notes to unaudited consolidated financial statements.

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EWSB BANCORP, INC. AND SUBSIDIARY

Consolidated Statements of Operations (unaudited) Continued

	Three Months Ended		Three Months Ended		Nine Months Ended		Nine Months Ended
	September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
Noninterest expense:
Salaries and related benefits		1,027,241		935,770		3,075,624		2,961,553
Occupancy expense, net		165,351		162,493		499,010		556,045
Data processing		247,212		235,100		811,875		717,955
Advertising		25,282		39,257		109,635		128,145
FDIC insurance premiums		79,809		68,189		231,292		223,195
Other		244,175		299,642		678,266		692,662
Total noninterest expense		1,789,070		1,740,451		5,405,702		5,279,555
Income (loss) before provision for (benefit from) income taxes		(481,772)		(154,871)		(1,683,606)		(722,888)
Provision for (benefit from) income taxes		(150,223)		(33,028)		(511,701)		(191,956)
Net income (loss)	$	(331,549)	$	(121,843)	$	(1,171,905)	$	(530,932)

See accompanying notes to unaudited consolidated financial statements.

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EWSB BANCORP, INC. AND SUBSIDIARY

Consolidated Statements of Comprehensive Income (Loss) (unaudited)

	Three Months Ended		Three Months Ended		Nine Months Ended		Nine Months Ended
	September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
Net income (loss)	$	(331,549)	$	(121,843)	$	(1,171,905)	$	(530,932)
Other comprehensive income (loss), before tax:
Unrealized holding gain (loss) on available for sale debt securities		959,567		(745,647)		704,677		(335,440)
Reclassification adjustment for (accretion) amortization of unrealized holding gain (loss) included in accumulated other comprehensive income from the securities transferred from available for sale to held to maturity		272,479		349,354		826,554		941,362
Other comprehensive income (loss), before tax		1,232,046		(396,293)		1,531,231		605,922
Tax effect of other comprehensive income (loss) items		(326,862)		118,012		(406,236)		(160,751)
Other comprehensive income (loss), net of tax		905,184		(278,281)		1,124,995		445,171
Comprehensive income (loss)	$	573,635	$	(400,124)	$	(46,910)	$	(85,761)

See accompanying notes to unaudited consolidated financial statements.

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EWSB BANCORP, INC. AND SUBSIDIARY

Consolidated Statements of Changes in Equity (unaudited)

									Unallocated		Accumulated
									Common		Other
	Common		Common		Additional Paid-		Retained		Shares Held		Comprehensive
	Shares		Stock		In Capital		Earnings		by ESOP		Income (Loss)		Total Equity
	Three and Nine Months Ended September 30, 2023
Balance at June 30, 2023		—	$	—	$	—	$	19,725,124	$	—	$	(8,491,320)	$	11,233,804
Net income (loss)		—		—		—		(121,843)		—		—		(121,843)
Other comprehensive income (loss)		—		—		—		—		—		(278,281)		(278,281)
Balance at September 30, 2023		—	$	—	$	—	$	19,603,281	$	—	$	(8,769,601)	$	10,833,680
Balance at January 1, 2023		—	$	—	$	—	$	20,134,213	$	—	$	(9,214,772)	$	10,919,441
Net income (loss)		—		—		—		(530,932)		—		—		(530,932)
Other comprehensive income (loss)		—		—		—		—		—		445,171		445,171
Balance at September 30, 2023		—	$	—	$	—	$	19,603,281	$	—	$	(8,769,601)	$	10,833,680
	Three and Nine Months Ended September 30, 2024
Balance at June 30, 2024		—	$	—	$	—	$	18,358,617	$	—	$	(7,442,338)	$	10,916,279
Net income (loss)		—		—		—		(331,549)		—		—		(331,549)
Proceeds of stock offering and issuance of common shares (net of issuance cost of $2.0 million)		752,538		7,525		5,470,717		—		—		—		5,478,242
Purchase of common shares by ESOP (52,678 shares)		—		—		—		—		(526,780)		—		(526,780)
ESOP shares committed to be released		—		—		—		—		2,813		—		2,813
Other comprehensive income (loss)		—		—		—		—		—		905,184		905,184
Balance at September 30, 2024		752,538	$	7,525	$	5,470,717	$	18,027,068	$	(523,967)	$	(6,537,154)	$	16,444,189
Balance at January 1, 2024		—	$	—	$	—	$	19,198,973	$	—	$	(7,662,149)	$	11,536,824
Net income (loss)		—		—		—		(1,171,905)		—		—		(1,171,905)
Proceeds of stock offering and issuance of common shares (net of issuance cost of $2.0 million)		752,538		7,525		5,470,717		—		—		—		5,478,242
Purchase of common shares by ESOP (52,678 shares)		—		—		—		—		(526,780)		—		(526,780)
ESOP shares committed to be released		—		—		—		—		2,813		—		2,813
Other comprehensive income (loss)		—		—		—		—		—		1,124,995		1,124,995
Balance at September 30, 2024		752,538	$	7,525	$	5,470,717	$	18,027,068	$	(523,967)	$	(6,537,154)	$	16,444,189

See accompanying notes to unaudited consolidated financial statements.

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EWSB BANCORP, INC. AND SUBSIDIARY

Condensed Consolidated Statements of Cash Flows (unaudited)

	Nine Months Ended		Nine Months Ended
	September 30, 2024		September 30, 2023
Cash flows from operating activities:	$	(1,355,426)	$	(852,137)
Cash flows from investing activities:
Proceeds from maturities of certificates of deposit		—		200,000
Proceeds from maturities and paydowns of securities available for sale		931,069		10,627,563
Proceeds from maturities and paydowns of securities held to maturity		1,500,000		—
Purchase of FHLB stock		(250,690)		—
Net decrease/(increase) in loans		(7,245,859)		(3,077,499)
Purchase of office properties and equipment		(105,514)		(29,487)
Proceeds from sale of office properties and equipment		—		148,817
Proceeds from sale of land held for sale		—		180,062
Net cash flows provided by (used in) investing activities		(5,170,994)		8,049,456
Cash flows from financing activities:
Net change in deposits	$	(6,627,410)	$	(16,828,990)
Net change in advance payments by borrowers for taxes and insurance		1,469,159		647,406
Principal payments on notes payable		(400,000)		—
Net increase/(decrease) from FHLB advances activity		3,171,000		7,088,000
Net increase from Federal Reserve Bank Term Funding Program borrowing		3,500,000		—
Proceeds from issuance of common stock, net of costs		5,478,242		—
Loan to ESOP		(526,780)		—
Net cash flows provided by (used in) financing activities		6,064,211		(9,093,584)
Net change in cash and cash equivalents		(462,209)		(1,896,265)
Cash and cash equivalents at beginning of period		1,608,709		3,142,403
Cash and cash equivalents at end of period	$	1,146,500	$	1,246,138
Supplemental cash flow information:
Cash paid during the period for:
Interest	$	4,464,935	$	2,805,614

See accompanying notes to unaudited consolidated financial statements.

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EWSB BANCORP, INC. AND SUBSIDIARY

Notes to Unaudited Consolidated Financial Statements

Note 1: Summary of Significant Accounting Policies

Organization

EWSB Bancorp, Inc. (the “Company”), a Maryland corporation and registered bank holding company, was formed to serve as the holding company for East Wisconsin Savings Bank (the “Bank”), upon conversion of Wisconsin Mutual Bancorp, MHC to the stock form of organization, which was completed on September 20, 2024. In connection with the conversion, the Company sold 752,538 shares of common stock, par value $0.01, including 52,678 shares sold to the Bank’s Employee Stock Ownership Plan, at $10.00 per share in its subscription offering for gross proceeds (before deducting offering expenses) of approximately $7.5 million. Shares of the Company’s common stock began trading on September 24, 2024 on the OTCQB Market under the trading symbol “EWSB”.

The Bank provides a variety of financial services to individual and corporate customers. The Bank operates as a full-service financial institution with a primary market area including, but not limited to, east central Wisconsin. The Company is subject to the regulations of certain federal and state agencies and undergoes periodic examinations by those regulatory authorities.

Principles of Consolidation

The financial statements include the accounts of EWSB Bancorp, Inc. and its subsidiary, East Wisconsin Savings Bank. All significant intercompany balances and transactions have been eliminated.

Basis of Presentation

The accompanying unaudited Consolidated Financial Statements were prepared in accordance with GAAP and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the audited financial statements and related notes of Wisconsin Mutual Bancorp, MHC and its subsidiaries at and for the year ended December 31, 2023 contained in the Company’s prospectus dated June 28, 2024  (the “Prospectus”), as filed with the Securities and Exchange Commission pursuant to Securities Act Rule 424(b)(3) on July 8, 2024. The Company has not changed its significant accounting and reporting policies from those disclosed in the audited financial statements for the year ended December 31, 2023, contained in the Prospectus.

Use of Estimates in Preparation of Financial Statements

The preparation of the accompanying financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. The determination of the allowance for credit losses and valuation allowance on deferred tax assets are particularly subject to change in the near term. Actual results may differ from these estimates. The results of operations for the three and nine months ended September 30, 2024, are not necessarily indicative of results that may be expected for any other interim period or the entire fiscal year ending December 31, 2024.

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EWSB BANCORP, INC. AND SUBSIDIARY

Note 2: Debt Securities

Our debt securities portfolio consists of an available for sale (“AFS”) and a held to maturity (“HTM”) securities portfolio, both of which represent interest earning debt securities.

Debt Securities AFS

The following table summarizes the amortized cost and estimated fair value of securities available for sale on September 30, 2024 and December 31, 2023, and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss):

			Gross		Gross
	Amortized		Unrealized		Unrealized		Estimated
	Cost		Gains		(Losses)		Fair Value
September 30, 2024
Securities available for sale:
Mortgage-backed securities	$	9,337,334	$	—	$	(987,220)	$	8,350,114
State and political subdivisions		14,191,468		—		(1,723,111)		12,468,357
Corporate securities		3,465,080		—		(518,215)		2,946,865
Total securities available for sale	$	26,993,882	$	—	$	(3,228,546)	$	23,765,336

			Gross		Gross
	Amortized		Unrealized		Unrealized		Estimated
	Cost		Gains		(Losses)		Fair Value
December 31, 2023
Securities available for sale:
Mortgage-backed securities	$	10,164,358	$	—	$	(1,123,653)	$	9,040,705
State and political subdivisions		14,255,188		—		(2,172,143)		12,083,045
Corporate securities		3,461,451		—		(637,426)		2,824,025
Total securities available for sale	$	27,880,997	$	—	$	(3,933,222)	$	23,947,775

There were no sales of securities available for sale during the nine months ended September 30, 2024 and 2023.

The following tables show the fair value and gross unrealized losses of available for sale debt securities in an unrealized loss position at September 30, 2024 and December 31, 2023, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position:

	Less Than 12 Months				12 Months or More				Total
		Estimated		Unrealized	Estimated		Unrealized		Estimated		Unrealized
		Fair Value		Loss	Fair Value		Loss		Fair Value		Loss
September 30, 2024
Securities available for sale:
Mortgage-backed securities	$	—	$	—	$	8,350,114	$	(987,220)	$	8,350,114	$	(987,220)
State and political subdivisions		—		—		12,468,357		(1,723,111)		12,468,357		(1,723,111)
Corporate securities		—		—		2,946,865		(518,215)		2,946,865		(518,215)
Totals	$	—	$	—	$	23,765,336	$	(3,228,546)	$	23,765,336	$	(3,228,546)

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EWSB BANCORP, INC. AND SUBSIDIARY

	Less Than 12 Months				12 Months or More				Total
	Estimated		Unrealized		Estimated		Unrealized		Estimated		Unrealized
	Fair Value		Loss		Fair Value		Loss		Fair Value		Loss
December 31, 2023
Securities available for sale:
Mortgage-backed securities	$	—	$	—	$	9,040,705	$	(1,123,653)	$	9,040,705	$	(1,123,653)
State and political subdivisions		—		—		12,083,045		(2,172,143)		12,083,045		(2,172,143)
Corporate securities		—		—		2,824,025		(637,426)		2,824,025		(637,426)
Totals	$	—	$	—	$	23,947,775	$	(3,933,222)	$	23,947,775	$	(3,933,222)

At September 30, 2024, 51 debt securities designated as AFS are in an unrealized loss position. Based on our analysis of these securities, the decline in value is unrelated to credit loss and is related to changes in market interest rates since purchase, and therefore, changes in value for securities are included in other comprehensive income. In analyzing whether unrealized losses on debt securities are not related to credit losses, management takes into consideration, as applicable, whether the securities are issued by a governmental body or agency, whether the rating agency has downgraded the securities, industry analysts’ reports, the financial condition and performance of the issuer, and the quality of any underlying assets or credit enhancements. Market valuations and credit loss analysis on assets in the AFS securities portfolio are reviewed and monitored on a quarterly basis. None of the investments in our AFS securities portfolio were past due as of September 30, 2024. Management has the ability and intent to hold the securities for the foreseeable future and no declines are deemed to be related to credit losses; therefore, no provision for expected credit losses or allowance is carried for the AFS portfolio.

The following is a summary of amortized cost and estimated fair value of debt securities by contractual maturity as of September 30, 2024. Contractual maturities will differ from expected maturities for mortgage-backed securities because borrowers may have the right to call or prepay obligations without penalties.

	September 30, 2024
			Estimated
Available-for-sale	Amortized Cost		Fair Value
Due in one year or less	$	790,869	$	780,145
Due after one year through five years		3,720,443		3,363,423
Due after five years through ten years		12,497,923		10,763,145
Due after ten years		647,313		508,509
Subtotal		17,656,548		15,415,222
Mortgage-backed securities		9,337,334		8,350,114
Total	$	26,993,882	$	23,765,336

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EWSB BANCORP, INC. AND SUBSIDIARY

Debt Securities HTM

The following table summarizes the amortized cost and estimated fair value of securities held to maturity at September 30, 2024 and December 31, 2023, and the corresponding amounts of gross unrealized gains and losses.

			Gross		Gross
	Amortized		Unrealized		Unrealized		Estimated
September 30, 2024	Cost		Gains		Losses		Fair Value
Securities held to maturity:
U.S. government sponsored agencies	$	28,846,673	$	331,691	$	(567)	$	29,177,797
U.S. Treasury securities		10,610,787		65,216		—		10,676,003
Total securities held to maturity	$	39,457,460	$	396,907	$	(567)	$	39,853,800

			Gross		Gross
	Amortized		Unrealized		Unrealized		Estimated
December 31, 2023	Cost		Gains		Losses		Fair Value
Securities held to maturity:
U.S. government sponsored agencies	$	28,223,324	$	12,819	$	(245,870)	$	27,990,273
U.S. Treasury securities		11,827,534		3,234		(16,213)		11,814,555
Total securities held to maturity	$	40,050,858	$	16,053	$	(262,083)	$	39,804,828

Investment securities classified as HTM are recorded at amortized cost subject to measurement of credit losses on financial instruments, also known as Current Expected Credit Losses (“CECL”). This methodology consists of measuring the value of investments on a collective basis when similar risk characteristics exist. Our investment policy requires securities designated as HTM to carry an explicit or implicit guarantee of the United States Government (i.e., issued by the U.S. Treasury and federal agencies of the United States). Market valuations and credit loss analysis on assets in the HTM securities portfolio are reviewed and monitored on a quarterly basis. None of the investments in our HTM securities portfolio were past due as of September 30, 2024. An allowance for credit losses (“ACL”) is not calculated or recorded based on the implied guarantee of these securities.

The following table summarizes the remaining contractual principal maturities of investment securities classified as HTM as of September 30, 2024. For United States agency debentures, the expected maturity is the actual contractual maturity of the notes. Expected remaining maturities for certain United States agency debentures may occur earlier than their contractual maturities because the note issuers have the right to call outstanding amounts ahead of their contractual maturity.

	September 30, 2024
	Amortized		Estimated
Held-to-maturity	Cost		Fair Value
Due in one year or less	$	2,205,232	$	2,205,142
Due after one year through five years		16,841,113		16,975,312
Due after five years through ten years		16,466,240		16,661,101
Due after ten years		3,944,875		4,012,245
Total	$	39,457,460	$	39,853,800

At September 30, 2024 and December 31, 2023, the Company has pledged HTM securities with a par value of $17.0 million to support borrowings at the Federal Reserve Bank and $1.5 million related to a fair value hedge.

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EWSB BANCORP, INC. AND SUBSIDIARY

Note 3: Loans and Allowance for Credit Losses

A summary of loans by major category as of September 30, 2024 and December 31, 2023 is a follows:

	September 30, 2024		December 31, 2023
Real estate
One to four family residential	$	124,421,076	$	122,239,967
Home equity		2,359,365		2,063,651
Equity line of credit		4,911,671		4,146,620
Construction		7,672,265		3,978,450
Multi-family		1,427,793		1,485,002
Commercial		2,481,247		2,333,631
Commercial installment		3,699,708		4,373,435
Consumer
Marine and recreational		31,650,430		30,800,279
Other consumer		4,119,178		4,038,013
Subtotal		182,742,733		175,459,048
Allowance for credit losses		(1,113,453)		(1,056,796)
Unearned loan fees		(133,596)		(87,081)
Loans, net	$	181,495,684	$	174,315,171

Changes in the allowance for the three months ended September 30, 2024 and 2023, are as follows:

	For the three months ended September 30, 2024
	Beginning		Provision for						Ending
	Balance		Credit Loss		Charge-offs			Recoveries	Balance
Real estate:
One to four family residential	$	654,119	$	(45,311)	$	—	$	—	$	608,808
Home equity		11,691		(146)		—		—		11,545
Equity line of credit		24,073		(40)		—		—		24,033
Construction		86,964		(3,734)		—		—		83,230
Multi-family		7,689		(703)		—		—		6,986
Commercial		22,848		6,456		—		—		29,304
Commercial Installment		51,140		(6,395)		—		—		44,745
Consumer:
Marine and recreational		275,279		(4,593)		—		—		270,686
Other consumer		34,595		(678)		—		199		34,116
Total	$	1,168,398	$	(55,144)	$	—	$	199	$	1,113,453

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EWSB BANCORP, INC. AND SUBSIDIARY

	For the three months ended September 30, 2023
	Beginning		Provision for						Ending
	Balance		Credit Loss		Charge-offs		Recoveries		Balance
Real estate:
One to four family residential	$	692,206	$	25,851	$	—	$	—	$	718,057
Home equity		11,611		405		—		—		12,016
Equity line of credit		23,475		921		—		—		24,396
Construction		52,154		668		—		—		52,822
Multi-family		9,084		317		—		—		9,401
Commercial		26,541		532		—		—		27,073
Commercial Installment		45,630		896		—		—		46,526
Consumer:
Marine and recreational		223,862		5,760		—		—		229,622
Other consumer		29,400		972		—		600		30,972
Total	$	1,113,963	$	36,322	$	—	$	600	$	1,150,885

Changes in the allowance for the nine months ended September 30, 2024 and 2023, are as follows:

	For the nine months ended September 30, 2024
	Beginning		Provision for						Ending
	Balance		Credit Loss		Charge-offs			Recoveries	Balance
Real estate:
One to four family residential	$	654,754	$	(45,946)	$	—	$	—	$	608,808
Home equity		11,045		500		—		—		11,545
Equity line of credit		22,193		1,840		—		—		24,033
Construction		21,293		61,937		—		—		83,230
Multi-family		7,948		(962)		—		—		6,986
Commercial		26,323		2,981		—		—		29,304
Commercial Installment		44,972		(227)		—		—		44,745
Consumer:
Marine and recreational		241,624		38,951		(9,889)		—		270,686
Other consumer		26,644		6,272		—		1,200		34,116
Total	$	1,056,796	$	65,346	$	(9,889)	$	1,200	$	1,113,453

	For the nine months ended September 30, 2023
	Beginning		Provision for						Ending
	Balance		Credit Loss		Charge-offs		Recoveries		Balance
Real estate:
One to four family residential	$	571,728	$	146,329	$	—	$	—	$	718,057
Home equity		5,884		6,132		—		—		12,016
Equity line of credit		19,696		4,700		—		—		24,396
Construction		6,170		46,652		—		—		52,822
Multi-family		11,260		(1,859)		—		—		9,401
Commercial		42,319		(15,246)		—		—		27,073
Commercial Installment		44,752		1,774		—		—		46,526
Consumer:
Marine and recreational		183,492		69,537		(23,407)		—		229,622
Other consumer		24,056		4,742		—		2,174		30,972
Total	$	909,357	$	262,761	$	(23,407)	$	2,174	$	1,150,885

A provision for credit loss on unfunded loan commitments of $64,796 was made for the nine months ended September 30, 2024. No provision for credit loss on unfunded commitments was recorded for the nine months ended September 30, 2023.

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EWSB BANCORP, INC. AND SUBSIDIARY

There were no collateral dependent loans as of September 30, 2024.

As of December 31, 2023, there was one collateral dependent loan totaling $9,888 in the marine and recreational loan segment. This loan was collateralized by a licensed recreational vehicle and had $4,889 in the ACL as of December 31, 2023. There were no other collateral dependent loans as of December 31, 2023.

The Company regularly evaluates various attributes of loans to determine the appropriateness of the allowance for credit losses. The credit quality indicators monitored differ depending on the class of loan.

Multi-family, commercial real estate, and commercial installment loans are generally evaluated using the following internally prepared ratings:

● Pass ratings are assigned to loans with adequate collateral and debt service ability such that collectability of the contractual loan payments is highly probable.

● Special mention ratings are assigned to loans where management has some concern that the collateral or debt service ability may not be adequate, though the collectability of the contractual loan payments is still probable.

● Substandard ratings are assigned to loans that do not have adequate collateral and/or debt service ability such that collectability of the contractual loan payments is no longer probable.

● Doubtful ratings are assigned to loans that do not have adequate collateral and/or debt service ability, and collectability of the contractual loan payments is unlikely.

One to four family residential, home equity, equity line of credit, construction, marine and recreational, and other consumer loans are generally evaluated based on whether the loan is performing according to the contractual terms of the loan.

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EWSB BANCORP, INC. AND SUBSIDIARY

The following tables present the credit risk profile of the Company’s loan portfolio based on risk rating category and year of origination at September 30, 2024 and December 31, 2023.

	Total Loans by Origination Year
	2024		2023		2022		Prior		Revolving		Total
At September 30, 2024
Real estate
One to four family residential
Performing	$	10,504,333	$	9,098,450	$	34,020,014	$	70,798,279	$	—	$	124,421,076
Non performing		—		—		—		—		—		—
Total one to four family residential	$	10,504,333	$	9,098,450	$	34,020,014	$	70,798,279	$	—	$	124,421,076
Home equity
Performing	$	695,998	$	840,467	$	552,170	$	270,730	$	—	$	2,359,365
Non performing		—		—		—		—		—		—
Total home equity	$	695,998	$	840,467	$	552,170	$	270,730	$	—	$	2,359,365
Equity line of credit
Performing	$	—	$	—	$	—	$	—	$	4,911,671	$	4,911,671
Non performing		—		—		—		—		—		—
Total equity line of credit	$	—	$	—	$	—	$	—	$	4,911,671	$	4,911,671
Construction
Performing	$	4,578,205	$	2,959,561	$	77,801	$	56,698	$	—	$	7,672,265
Non performing		—		—		—		—		—		—
Total construction	$	4,578,205	$	2,959,561	$	77,801	$	56,698	$	—	$	7,672,265
Multi-family
Pass	$	—	$	—	$	—	$	1,427,793	$	—	$	1,427,793
Special mention		—		—		—		—		—		—
Substandard		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—
Total multi-family	$	—	$	—		—	$	1,427,793	$	—	$	1,427,793
Commercial
Pass	$	687,638	$	132,223	$	1,395,444	$	265,942	$	—	$	2,481,247
Special mention		—		—		—		—		—		—
Substandard		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—
Total commercial	$	687,638	$	132,223	$	1,395,444	$	265,942	$	—	$	2,481,247
Commercial installment
Pass	$	—	$	132,238	$	285,698	$	3,281,772	$	—	$	3,699,708
Special mention		—		—		—		—		—		—
Substandard		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—
Total commercial installment	$	—	$	132,238	$	285,698	$	3,281,772	$	—	$	3,699,708
Consumer
Marine and recreational
Performing	$	6,044,344	$	8,325,618	$	3,267,708	$	13,986,841	$	—	$	31,624,511
Non performing		11,554		14,365		—		—		—		25,919
Total marine and recreational	$	6,055,898	$	8,339,983	$	3,267,708	$	13,986,841	$	—	$	31,650,430
Other consumer
Performing	$	611,578	$	575,972	$	688,851	$	2,242,777	$	—	$	4,119,178
Non performing		—		—		—		—		—		—
Total other consumer	$	611,578	$	575,972	$	688,851	$	2,242,777	$	—	$	4,119,178
Total loans	$	23,133,650	$	22,078,894	$	40,287,686	$	92,330,832	$	4,911,671	$	182,742,733

14

EWSB BANCORP, INC. AND SUBSIDIARY

	Total Loans by Origination Year
	2023		2022		2021		Prior		Revolving		Total
At December 31, 2023
Real estate
One to four family residential
Performing	$	9,639,759	$	34,992,254	$	13,184,881	$	64,423,073	$	—	$	122,239,967
Non performing		—		—		—		—		—		—
Total one to four family residential	$	9,639,759	$	34,992,254	$	13,184,881	$	64,423,073	$	—	$	122,239,967
Home equity
Performing	$	991,616	$	714,749	$	119,200	$	238,086	$	—	$	2,063,651
Non performing		—		—		—		—		—		—
Total home equity	$	991,616	$	714,749	$	119,200	$	238,086	$	—	$	2,063,651
Equity line of credit
Performing	$	—	$	—	$	—	$	—	$	4,146,620	$	4,146,620
Non performing		—		—		—		—		—		—
Total equity line of credit	$	—	$	—	$	—	$	—	$	4,146,620	$	4,146,620
Construction
Performing	$	2,258,809	$	1,194,457	$	295,614	$	229,570	$	—	$	3,978,450
Non performing		—		—		—		—		—		—
Total construction	$	2,258,809	$	1,194,457	$	295,614	$	229,570	$	—	$	3,978,450
Multi-family
Pass	$	—	$	—	$	218,321	$	1,266,681	$	—	$	1,485,002
Special mention		—		—		—		—		—		—
Substandard		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—
Total multi-family	$	—	$	—	$	218,321	$	1,266,681	$	—	$	1,485,002
Commercial
Pass	$	439,270	$	1,348,841	$	353,171	$	192,349	$	—	$	2,333,631
Special mention		—		—		—		—		—		—
Substandard		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—
Total commercial	$	439,270	$	1,348,841	$	353,171	$	192,349	$	—	$	2,333,631
Commercial installment
Pass	$	360,575	$	410,038	$	1,379,228	$	2,223,594	$	—	$	4,373,435
Special mention		—		—		—		—		—		—
Substandard		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—
Total commercial installment	$	360,575	$	410,038	$	1,379,228	$	2,223,594	$	—	$	4,373,435
Consumer
Marine and recreational
Performing	$	9,291,668	$	3,297,641	$	719,234	$	17,491,736	$	—	$	30,800,279
Non performing		—		—		—		—		—		—
Total marine and recreational	$	9,291,668	$	3,297,641	$	719,234	$	17,491,736	$	—	$	30,800,279
Other consumer
Performing	$	1,433,967	$	1,645,920	$	562,650	$	377,505	$	—	$	4,020,042
Non performing		—		17,971		—		—		—		17,971
Total other consumer	$	1,433,967	$	1,663,891	$	562,650	$	377,505	$	—	$	4,038,013
Total loans	$	24,415,664	$	43,621,871	$	16,832,299	$	86,442,594	$	4,146,620	$	175,459,048

Year-to-date gross charge-offs for the periods presented are not included in the above tables as the amounts are considered insignificant.

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EWSB BANCORP, INC. AND SUBSIDIARY

Loan aging information as of September 30, 2024 and December 31, 2023, follows:

	Accruing
			Loans Past		Loans				Nonaccrual
	Current		Due 31-89		Past Due				with an
	Loans		Days		90+ Days		Nonaccrual		ACL		Total Loans
September 30, 2024
Real estate:
One to four family residential	$	123,976,820	$	444,256	$	—	$	—	$	—	$	124,421,076
Home equity		2,359,365		—		—		—		—		2,359,365
Equity line of credit		4,911,671		—		—		—		—		4,911,671
Construction		7,672,265		—		—		—		—		7,672,265
Multi-family		1,427,793		—		—		—		—		1,427,793
Commercial		2,481,247		—		—		—		—		2,481,247
Commercial installment		3,699,708		—		—		—		—		3,699,708
Consumer
Marine and recreational		31,500,931		123,579		—		25,920		—		31,650,430
Other consumer		4,119,178		—		—		—		—		4,119,178
Totals	$	182,148,978	$	567,835	$	—	$	25,920	$	—	$	182,742,733

	Accruing
			Loans Past		Loans				Nonaccrual
	Current		Due 31-89		Past Due				with an
	Loans		Days		90+ Days		Nonaccrual		ACL		Total Loans
December 31, 2023
Real estate:
One to four family residential	$	120,678,966	$	1,561,001	$	—	$	—	$	—	$	122,239,967
Home equity		2,063,651		—		—		—		—		2,063,651
Equity line of credit		4,086,622		59,998		—		—		—		4,146,620
Construction		3,978,450		—		—		—		—		3,978,450
Multi-family		1,485,002		—		—		—		—		1,485,002
Commercial		2,333,631		—		—		—		—		2,333,631
Commercial installment		4,373,435		—		—		—		—		4,373,435
Consumer
Marine and recreational		30,550,492		249,787		—		—		—		30,800,279
Other consumer		4,020,042		—		—		17,971		—		4,038,013
Totals	$	173,570,291	$	1,870,786	$	—	$	17,971	$	—	$	175,459,048

The Bank may modify loans to borrowers experiencing financial difficulty by providing modifications to repayment terms. There were no loans subject to such modifications as of September 30, 2024 or December 31, 2023.

A summary of loans to directors, executive officers, and their affiliates as of September 30, 2024 and December 31, 2023 is as follows:

	September 30, 2024		December 31, 2023
Balance at beginning of period	$	27,004	$	42,708
New loans		7,901		—
Repayments		(7,866)		(15,704)
Balance at end of period	$	27,039	$	27,004

16

EWSB BANCORP, INC. AND SUBSIDIARY

Note 4: Deposits

The composition of deposits at September 30, 2024 December 31, 2023 is as follows:

	September 30, 2024		December 31, 2023
Non-interest-bearing demand	$	9,148,598	$	10,250,495
Interest-bearing demand		29,508,510		32,900,701
Savings		30,205,826		32,888,853
Money market		40,850,803		49,911,872
Certificates of deposit		114,126,482		104,515,708
Total deposits	$	223,840,219	$	230,467,629

The aggregate amount of certificates of deposit in denominations of $250,000 or more at September 30, 2024 and December 31, 2023 was approximately $21,118,000 and $18,488,000, respectively.

The scheduled maturities of certificates of deposit as of September 30, 2024 are summarized as follows:

Twelve months ended September 30,		Amount
2025	$	94,417,853
2026		9,485,948
2027		3,227,225
2028		4,261,907
2029		2,733,549
Total	$	114,126,482

Deposits from directors, executive officers, and their affiliates totaled $2,357,705 and $1,300,864 at September 30, 2024 and December 31, 2023, respectively.

Note 5: Borrowed Funds

Borrowed funds consisted of the following at September 30, 2024 and December 31, 2023:

	September 30, 2024					December 31, 2023
	Average Rate			Amount		Average Rate			Amount
Federal Home Loan Bank:
Fixed rate, short term advances		4.92	%	$	2,301,000		5.43	%	$	12,630,000
Fixed rate, fixed term advances		3.82	%		19,500,000		3.40	%		6,000,000
Federal Reserve Bank Term Funding Program ("BTFP")		4.76	%		3,500,000		—	%		—
Related party subordinated promissory notes		—	%		—		7.00	%		400,000
Total borrowings				$	25,301,000				$	19,030,000

The Company utilizes fixed rate short term advances from the Federal Home Loan Bank (“FHLB”) as a flexible source of liquidity. Terms of these advances range from 1 – 27 days.

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EWSB BANCORP, INC. AND SUBSIDIARY

The following is a summary of scheduled maturities of non-short term borrowed funds as of September 30, 2024:

	Average Rate			Amount
2025		4.40	%	$	11,000,000
2026		3.74	%	$	6,000,000
2028		3.40	%	$	6,000,000
Total				$	23,000,000

Actual maturities may differ from the scheduled principal maturities due to call options on the various advances.

The Company has a master contract agreement with the FHLB that provides for borrowing up to a FHLB determined percent of the book value of the Company’s qualifying one- to four-family residential real estate loans. The loans pledged as security for FHLB borrowings totaled approximately $67,164,000 and $65,826,000 at September 30, 2024 and December 31, 2023, respectively. FHLB advances are also secured by $1,334,963 and $1,084,273 of FHLB stock owned by the Company at September 30, 2024 and December 31, 2023, respectively. At September 30, 2024, the Company has current borrowing capacity of $44,767,000 based on total collateral pledged as of this date. The Company will be required to purchase FHLB activity stock to support additional borrowings beyond current activity stock holding.

In 2023, the Company entered into subordinated promissory note agreements with various directors and officers of the Company to support future capital contributions. The notes were issued on February 6, 2023, with an aggregate par value of $400,000 carrying an annual fixed interest rate of 7.0% paid semi-annually. The notes were issued with a 3-year term and were continuously callable by the Company. The promissory notes balances were paid in full during the quarter ended September 30, 2024.

In January 2024, the Company obtained a collateralized borrowing of $17.0 million through the Federal Reserve Bank’s Bank Term Funding Program (“BTFP”). The borrowing under BTFP has a maturity date of January 26, 2025, and an interest rate of 4.76%. The Company pledged investment securities as collateral to support this borrowing. The Company made a principal payment of $13.5 million on this borrowing on September 30, 2024. The outstanding balance is $3.5 million at September 30, 2024.

At September 30, 2024 and December 31, 2023, the Company has short-term borrowing availability through the Federal Reserve Bank’s discount window of up to $25 million. The Company is required to pledge securities and/or loans in order to borrow at the discount window. The Company had no short-term borrowings through the Federal Reserve discount window and did not pledge securities or loans as of September 30, 2024 and December 31, 2023.

At September 30, 2024 and December 31, 2023, the Company had an unsecured $6.0 million federal funds line of credit with a correspondent bank.

Note 6: Equity and Regulatory Matters

The payment of dividends by the Bank would be restricted if the Bank does not meet the minimum Capital Conservation Buffer as defined by Basel III regulatory capital guidelines and/or if, after payment of the dividend, the Bank would be unable to maintain satisfactory regulatory capital ratios.

The Bank is subject to various regulatory capital requirements administered by federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities, and certain off balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.

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EWSB BANCORP, INC. AND SUBSIDIARY

Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum regulatory capital amounts and ratios (set forth in the table on the next page). It is management’s opinion, as of September 30, 2024, that the Bank meets all applicable statutory capital adequacy requirements.

As of September 30, 2024, the Bank is categorized as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Bank must maintain minimum regulatory capital ratios as set forth in the table. There are no conditions or events since that notification that management believes have changed the Bank’s category.

The Bank’s actual capital amounts and ratios as of September 30, 2024 and December 31, 2023, are presented in the following tables:

									To Be Well Capitalized
					For Capital Adequacy				Under Prompt Corrective
	Actual				Purposes				Action Provisions
(Dollars in Thousands)	Amount		Ratio		Amount		Ratio		Amount		Ratio
September 30, 2024
Bank
Common Equity Tier 1 capital (to risk-weighted assets)	$	19,703	12.7	%		≥ $6,985	≥ 4.5	%		≥ $10,090	≥ 6.5	%
Tier 1 capital (to risk-weighted assets)		19,703	12.7	%		≥ 9,314	≥ 6.0	%		≥ 12,418	≥ 8.0	%
Total capital (to risk-weighted assets)		20,981	13.5	%		≥ 12,418	≥ 8.0	%		≥ 15,523	≥ 10.0	%
Tier 1 capital (to average assets)		19,703	7.4	%		≥ 10,668	≥ 4.0	%		≥ 13,332	≥ 5.0	%
December 31, 2023
Bank
Common Equity Tier 1 capital (to risk-weighted assets)	$	16,464	11.2	%		≥ $6,634	≥ 4.5	%		≥ $9,582	≥ 6.5	%
Tier 1 capital (to risk-weighted assets)		16,464	11.2	%		≥ 8,845	≥ 6.0	%		≥ 11,794	≥ 8.0	%
Total capital (to risk-weighted assets)		17,521	11.9	%		≥ 11,794	≥ 8.0	%		≥ 14,742	≥ 10.0	%
Tier 1 capital (to average assets)		16,464	6.3	%		≥ 10,386	≥ 4.0	%		≥ 12,982	≥ 5.0	%

In addition to the above minimum regulatory capital measures, the Board of Directors has designated that the Bank will have and maintain its tier one capital as a percentage of average total assets at a minimum of 8.0% and its level of total capital to risk-weighted assets at a minimum of 11.0%. At September 30, 2024, the Bank’s tier one capital as a percentage of average total assets capital ratio of 7.4% was not in compliance with the minimum ratio as designated by the Board of Directors. The Bank’s total capital to risk-weighted assets ratio of 13.5% was in compliance with the minimum ratio designated by the Board of Directors.

In addition to the above minimum regulatory capital measures, the State of Wisconsin requires a state-chartered savings bank to maintain a net worth ratio in an amount not less than 6.0%. At September 30, 2024, the Bank’s net worth ratio of 6.04% was in compliance with the minimum requirement.

Note 7: Fair Value Measurements

Accounting standards describe three levels of inputs that may be used to measure fair value (the fair value hierarchy). The level of an asset or liability within the fair value hierarchy is based on the lowest level of input significant to the fair value measurement of that asset or liability.

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EWSB BANCORP, INC. AND SUBSIDIARY

Following is a brief description of each level of the fair value hierarchy:

Level 1 - Fair value measurement is based on quoted prices for identical assets or liabilities in active observable markets.

Level 2 - Fair value measurement is based on: (1) quoted prices for similar assets or liabilities in active markets; (2) quoted prices for identical or similar assets or liabilities in markets that are not active; or (3) valuation models and methodologies for which all significant assumptions are or can be corroborated by observable market data.

Level 3 - Fair value measurement is based on valuation models and methodologies that incorporate at least one significant assumption that cannot be corroborated by observable market data. Level 3 measurements reflect the Company’s estimates about assumptions market participants would use if measured at fair value on a recurring basis under GAAP.

Some assets and liabilities, such as securities available for sale, are measured at fair value on a recurring basis under GAAP. Other assets and liabilities, such as individually evaluated loans, may be measured at fair value on a nonrecurring basis. As of September 30, 2024 and December 31, 2023, the Company did not have any significant assets or liabilities that were measured at fair value on a nonrecurring basis.

Following is a description of the valuation methodology and significant inputs used for each asset measured at fair value on a recurring basis, as well as the classification of the asset within the fair value hierarchy.

Securities available for sale- Securities available for sale are classified as Level 2 measurements within the fair value hierarchy. Level 2 securities include U.S. government sponsored agencies, obligations of states and political subdivisions, corporate securities, and mortgaged-backed securities. The fair value measurement of a Level 2 security is based on recent sales of similar securities and other observable market data.

Fair value hedge – Fair value hedges are classified as Level 2 measurements within the fair value hierarchy. The fair value measurement is based on current observable market interest rates.

20

EWSB BANCORP, INC. AND SUBSIDIARY

Information regarding the fair value of assets and liabilities measured at fair value on a recurring basis as of September 30, 2024 and December 31, 2023, follows:

			Recurring Fair Value Measurements Using
			Quoted Prices
			in Active		Significant
			Markets for		Other			Significant
	Assets		Identical		Observable			Unobservable
	Measured at		Instruments		Inputs			Inputs
	Fair Value		(Level 1)		(Level 2)			(Level 3)
September 30, 2024
Financial assets:
Securities available for sale:
Mortgage-backed securities	$	8,350,114	$	—	$	8,350,114	$	—
State and political subdivisions		12,468,357		—		12,468,357		—
Corporate securities		2,946,865		—		2,946,865		—
Total securities available for sale	$	23,765,336	$	—	$	23,765,336	$	—
Financial liabilities:
Fair value hedge on fixed rate loans	$	291,662	$	—	$	291,662	$	—
December 31, 2023
Financial assets:
Securities available for sale:
Mortgage-backed securities	$	9,040,705	$	—	$	9,040,705	$	—
State and political subdivisions		12,083,045		—		12,083,045		—
Corporate securities		2,824,025		—		2,824,025		—
Total securities available for sale	$	23,947,775	$	—	$	23,947,775	$	—
Financial liabilities:
Fair value hedge on fixed rate loans	$	140,321	$	—	$	140,321	$	—

Note 8: Fair Value of Financial Instruments

Financial instruments are classified within the fair value hierarchy using the methodologies described in Note 7 – Fair Value Measurements. The following disclosures include financial instruments that are not carried at fair value on the Consolidated Balance Sheets. The calculation of estimated fair values is based on market conditions at a specific point in time and may not reflect current or future fair values.

Certain financial instruments generally expose the Company to limited credit risk and have no stated maturities or have short-term maturities and carry interest rates that approximate market. The carrying value of these financial instruments assumes to approximate the fair value of these instruments. These instruments include cash and cash equivalents, non-interest-bearing deposit accounts, time deposits with other financial institutions, FHLB stock, escrow deposits, FHLB advances and accrued interest receivable and payable. The fair market values of loans and interest-bearing deposits are calculated using the discounted cash flow (present value) method.

21

EWSB BANCORP, INC. AND SUBSIDIARY

The carrying amounts and estimated fair values by fair value hierarchy of certain financial instruments as of September 30, 2024 and December 31, 2023, follows:

	Carrying								Estimated
	Amount		(Level 1)		(Level 2)		(Level 3)		Fair Value
September 30, 2024
Financial assets:
HTM debt securities:
U.S. government sponsored agencies	$	28,846,673	$	—	$	29,177,797	$	—	$	29,177,797
U.S. Treasury securities	$	10,610,787	$	10,676,003	$	—	$	—	$	10,676,003
Loans, net	$	181,495,684	$	—	$	—	$	173,352,000	$	173,352,000
Financial liabilities:
Interest-bearing deposits	$	214,691,621	$	—	$	205,974,000	$	—	$	205,974,000
December 31, 2023
Financial assets:
HTM debt securities:
U.S. government sponsored agencies	$	28,223,324	$	—	$	27,990,273	$	—	$	27,990,273
U.S. Treasury securities	$	11,827,534	$	11,814,555	$	—	$	—	$	11,814,555
Loans, net	$	174,315,171	$	—	$	—	$	165,086,000	$	165,086,000
Financial liabilities:
Interest-bearing deposits	$	220,217,134	$	—	$	207,001,000	$	—	$	207,001,000

Note 9: Derivatives

The Company’s objectives in using interest rate derivatives are to add stability to interest income and expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. The aggregate fair value of the swaps are recorded in other assets or other liabilities with changes in fair value recorded as gains or losses in noninterest income or noninterest expense on the consolidated statements of income (loss).

The Company utilizes interest rate swap agreements as part of its asset liability management strategy to help manage its interest rate risk position. The notional amount of the interest rate swap does not represent amounts exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the individual interest rate swap agreements.

Fair Value Hedge: An interest rate swap with a notional amount totaling $25.0 million as of September 30, 2024 was designated as a fair value last of layer hedge for certain fixed rate prepayable loans.

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EWSB BANCORP, INC. AND SUBSIDIARY

Note 10: Earnings Per Share (“EPS”)

Basic EPS represents income available to common stockholders divided by weighted-average number of common shares outstanding during the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common shares (such as stock options) were exercised or converted into additional common shares that should then share in the earnings of the Company. Diluted EPS is computed by dividing net income attributed to common stockholders by the weighted-average number of common shares outstanding for the period, plus the effect of potential dilutive common share equivalents.

There were no securities or other contracts that had a dilutive effect during the three and nine months ended September 30, 2024, and therefore the weighted-average common shares outstanding used to calculate both basic and diluted EPS are the same. Shares held by the Employee Stock Ownership Plan (“ESOP”) that have not been allocated to employees in accordance with the terms of the ESOP, referred to as “unallocated ESOP shares”, are not deemed outstanding for EPS calculations. All unallocated ESOP shares have been excluded from the calculation of basic and diluted EPS. The Company did not present earnings per share for the three and nine months ended September 30, 2024 because the year-to-date weighted average computation, as a result of the conversion during the period, would present a figure that would not aid investors in understanding the Company’s financial results.

Note 11: ESOP

Employees of the Bank may participate in the Bank’s Employee Stock Ownership Plan (“ESOP”). The ESOP borrowed funds from the Company to purchase 52,678 shares of stock at $10 per share. The Bank makes discretionary contributions to the ESOP and the ESOP uses funds it receives to repay the loan. When payments are made, ESOP shares are allocated to participants based on relative compensation. The cost of shares issued to the ESOP, but not yet allocated to participants, is shown as a reduction of stockholders’ equity.

Eash December, the Bank makes discretionary contributions to the ESOP, which are equal to principal and interest payments required on the term loan. Expense recorded during the three months ended September 30, 2024 is $2,813.

Shares held by the ESOP as of September 30, 2024, were as follows:

	As of September 30, 2024
Shares committed for allocation		281
Unallocated		52,397
Total ESOP shares		52,678
Fair value of unearned shares at September 30, 2024	$	550,169

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

General

Management’s discussion and analysis is intended to enhance your understanding of our financial condition and results of operations. The financial information in this section is derived from the accompanying financial statements. You should read the financial information in this section in conjunction with the business and financial information contained in this Quarterly Report on Form 10-Q and in the Company’s Prospectus.

Cautionary Note Regarding Forward-Looking Statements

This Quarterly Report on Form 10-Q contains forward-looking statements, which can be identified by the use of words such as “estimate,” “project,” “believe,” “intend,” “anticipate,” “assume,” “plan,” “seek,” “expect,” “will,” “may,” “should,” “could,” “indicate,” “would,” “believe,” “contemplate,” “continue,” “intend,” “target” and words of similar meaning. These forward-looking statements include, but are not limited to:

● statements of our goals, intentions and expectations;

● statements regarding our business plans, prospects, growth and operating strategies;

● statements regarding the quality of our loan portfolio; and

● estimates of our risks and future costs and benefits.

These forward-looking statements are based on our current beliefs and expectations and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. We are under no duty to and do not undertake any obligation to update any forward-looking statements after the date of this prospectus.

The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements:

● our ability to manage our vulnerability to interest rates;

● general economic conditions, either nationally or in our market areas, that are worse than expected including as a result of employment levels and labor shortages, and the effects of inflation, a potential recession or slowed economic growth caused by supply chain disruptions or otherwise;

● inflation and changes in the interest rate environment that reduce our margins and yields, our mortgage banking revenues, the fair value of financial instruments, including our mortgage servicing rights asset, or our level of loan originations, or increase the level of defaults, losses and prepayments on loans we have made and make;

● changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for credit losses;

● our ability to comply with the confidential memorandum of understanding (“MOU”) with the Wisconsin Department of Financial Institutions (the “Department”) and the Federal Deposit Insurance Corporation (the “FDIC”);

● changes in liquidity, including the size and composition of our deposit portfolio, including the percentage of uninsured deposits in the portfolio;

24

● our ability to access cost-effective funding;

● fluctuations in real estate values and residential real estate market conditions;

● demand for loans and deposits in our market area;

● our ability to execute on our business strategies, including increasing our loan originations;

● competition among depository and other financial institutions;

● changes in the securities or secondary mortgage markets;

● changes in laws or government regulations or policies affecting financial institutions, including changes in regulatory fees, capital requirements and insurance premiums;

● 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;

● a failure or breach of our operational or security systems or infrastructure, including cyberattacks;

● our ability to manage market risk, credit risk and operational risk;

● 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 attract and retain key employees; and

● changes in the financial condition, results of operations or future prospects of issuers of securities that we own.

Because of these and other uncertainties, our actual future results may be materially different from the results indicated by these forward-looking statements. Except as required by law or regulation, we do not undertake, and we specifically disclaim any obligation, to release publicly the results of any revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

Critical Accounting Policies and Use of Critical Accounting Estimates

Our accounting policies are integral to understanding the results reported. We consider accounting policies that require management to exercise significant judgment or discretion or to make significant assumptions that have, or could have, a material impact on the carrying value of certain assets or on income to be critical accounting policies. As of September 30, 2024, there have been no material changes to our critical accounting policies as compared to the critical accounting policies disclosed under “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Prospectus.

25

Comparison of Financial Condition at September 30, 2024 and December 31, 2023

Total Assets. Total assets increased $6.6 million, or 2.5%, to $269.2 million at September 30, 2024 from $262.6 million at December 31, 2023. The change was primarily the result of a $7.2 million increase in portfolio loans offset by a $776,000 decrease in total investment securities.

Cash and Cash Equivalents and Time Deposits with Other Financial Institutions. Total cash and due from banks and time deposits with other financial institutions decreased $461,000, or 7.6% to $5.6 million at September 30, 2024 from $6.1 million at December 31, 2023. The change was related to general business activity.

Securities Available-for-Sale. Securities available-for-sale decreased $182,000, or 7.6%, to $23.8 million at September 30, 2024 from $23.9 million at December 31, 2023. The decrease was due to principal paydowns of $931,000 on mortgage-backed securities offset by a $705,000 increase in the market value of the portfolio due to a decrease in market interest rates during the three months ended September 30, 2024. The proceeds from principal paydowns are utilized to manage liquidity and support loan growth.

Securities Held-to-Maturity. Securities held-to-maturity decreased $593,000, or 1.5%, to $39.5 million at September 30, 2024 from $40.1 million at December 31, 2023. The decrease in securities held-to-maturity was due to maturities of $1.5 million, offset by $827,000 in amortization of unrealized losses.

Loans, net. Loans, net increased $7.2 million, or 4.2%, to $181.5 million at September 30, 2024 from $174.3 million at December 31, 2023. Construction, one- to four-family, home equity loans and lines of credit, marine and recreational vehicles, other commercial real estate and other consumer loans increased $3.7 million, $2.2 million, $1.1 million, $850,000, $148,000 and $81,000, respectively, to $7.7 million, $124.4 million, $7.3 million, $31.7 million, $2.5 million and $4.1 million at September 30, 2024, respectively, as a result of loan production exceeding payoffs and amortization. These increases were partially offset by decreases to commercial and multifamily of $674,000 and $57,000 respectively, to $3.7 million and $1.4 million at September 30, 2024, respectively.

Deposits. Total deposits decreased $6.7 million or 2.9% to $223.8 million at September 30, 2024 from $230.5 million at December 31, 2023. Non-interest bearing deposits decreased $1.1 million, or 10.7%, to $9.2 million at September 30, 2024 from $10.3 million at December 31, 2023. Total interest-bearing deposits, other than time deposits, decreased approximately $15.1 million, or 15.1%, to $100.6 million at September 30, 2024, from $115.7 million at December 31, 2023. Certificates of deposits increased $9.6 million, or 9.2%, to $114.1 million at September 30, 2024, from $104.5 million at December 31, 2023. The deposit mix changes were consistent with industry trends as consumers continue to transition to higher yielding term deposits due to the interest rate environment.

Borrowings. We had $25.3 million of borrowings at September 30, 2024 as compared to $19.0 million at December 31, 2023. We borrowed $17.0 million from the Federal Reserve Bank under its Bank Term Funding Program (“BTFP”) in January 2024. We paid back $13.5 million of the BTFP in September 2024 bringing the outstanding balance to $3.5 million at September 30, 2024. The $13.5 million paydown was funded by additional advances of $8.1 million from the FHLB obtained in the third quarter and utilization of proceeds received from the stock offering.

Stockholders’ Equity. Total stockholders’ equity increased $4.9 million, or 42.5%, to $16.4 million at September 30, 2024 from $11.5 million at December 31, 2023, due to net proceeds of $5.5 million from the stock offering and an increase in other comprehensive income of $1.1 million. These increases were partially offset by a decrease in retained earnings of $1.2 million, which resulted from the net loss incurred for the nine months ended September 30, 2024 and the $524,000 value of the unallocated common shares held by the ESOP.

26

Comparison of Operating Results for the Three Months Ended September 30, 2024 and 2023

Net Income/(Loss). We recorded a net loss of $332,000 for the three months ended September 30, 2024, compared to a net loss of $122,000 for the three months ended September 30, 2023, a change of $210,000 year-over-year. The increase in our net loss year-over-year resulted primarily from a $245,000 decrease in net interest income due to increased funding costs, a decrease of $60,000 in noninterest income and an increase of $113,000 in total noninterest expense.

Interest Income. Interest income increased $235,000, or 10.5%, to $2.5 million for the three months ended September 30, 2024, from $2.2 million for the three months ended September 30, 2023, due to a $244,000 increase in interest and fees on loans. The increase in interest and fees on loans was primarily due to an increase of 48 basis points in the weighted average yield on the loan portfolio to 4.82% for the three months ended September 30, 2024 from 4.34% for the same period in 2023. Interest income on securities and other investments decreased $9,000 to $309,000 for the three months ended September 30, 2024 primarily due to a $560,000 decrease in average balance of investment securities year-over-year. The average balance decrease was primarily related to security maturities in the second quarter of 2024.

Interest Expense. Total interest expense increased $479,000, or 40.3%, to $1.7 million for the three months ended September 30, 2024, from $1.2 million for the three months ended September 30, 2023. Interest expense on deposits increased $358,000, or 36.5%, to $1.3 million for the three months ended September 30, 2024 from $1.0 million for the three months ended September 30, 2023. This increase was due primarily to an increase in the weighted average rate paid on certificates of deposit of 113 basis points to 4.52% for the three months ended September 30, 2024 from 3.39% for the three months ended September 30, 2023, combined with an increase in the average balance of such deposits of $7.7 million year-over-year and a $12.4 million decrease in the average balance of lower-cost money market accounts year-over-year.

Interest expense on borrowed funds increased $121,000, or 59.0%, to $326,000 for the three months ended September 30, 2024, from $206,000 for the three months ended September 30, 2023. The rate paid on borrowed funds increased 81 basis points to 4.64% for the three months ended September 30, 2024, from 3.83% for the three months ended September 30, 2023 while the average balance of borrowed funds increased $7.4 million, or 35.6%, to $28.2 million for the three months ended September 30, 2024 from $20.8 million for the three months ended September 30, 2023. The increase in the average balance was generally related to the measured use of borrowings to offset deposit outflows and to support the increase in the loan portfolio.

Net Interest Income. Net interest income decreased $244,000, or 23.2%, to $807,000 for the three months ended September 30, 2024 from $1.1 million for the three months ended September 30, 2023, primarily due to a decrease in the interest rate spread to 1.25% for the three months ended September 30, 2024 from 1.66% for the three months ended September 30, 2023 and a decrease in the net interest margin to 1.30% for the three months ended September 30, 2024, from 1.69% for the three months ended September 30, 2023. The decreases in the interest rate spread and the net interest margin were primarily due to an increase in the rates paid on interest-bearing liabilities in conjunction with an increase in other borrowings, partially offset by a 37 basis point increase in the weighted average yield on our interest earning assets.

Provision for Credit Losses. Based on management’s analysis of the adequacy of the ACL and unfunded loan commitments, a net provision of $10,000 comprising of a benefit of $55,000 to the ACL and a provision of $65,000 to the ACL for unfunded loan commitments was recorded for the three months ended September 30, 2024, compared to a provision of $36,000 to the ACL for the same period in 2023. The $26,000 change in provision expense is based on an analysis of current credit characteristics in conjunction with loss history of the loan portfolio and peer group loss data.

27

Noninterest Income. Noninterest income declined $60,000, or 10.6%, to $510,000 for the three months ended September 30, 2024 from $571,000 for the three months ended September 30, 2023. The change resulted primarily from a non-recurring $208,000 gain on the sale of fixed assets related to a branch property sale recognized in 2023. There was no such gain recognized in the 2024 period. This decline in non-interest income was offset by an $88,000 gain on an interest rate swap entered into late in 2023 and a $62,000 increase in other income, partially offset by a $16,000 decrease in mortgage banking income. The table below sets forth our noninterest income for the quarters ended September 30, 2024 and 2023:

	Three Months Ended
	September 30,				Change
	2024		2023		Amount		Percent
Service charges on deposit accounts	$	19,860	$	13,734	$	6,126	44.6	%
Interchange income		60,606		59,655		951	1.6	%
Mortgage banking income		129,007		144,647		(15,640)	(10.8)	%
Increase in cash value of life insurance		60,554		54,949		5,605	10.2	%
Gain on sale of fixed assets		—		207,738		(207,738)	(100.0)	%
Gain on sale of land held for sale		—		—
Gain on interest rate swap		88,246		—		88,246	—	%
Other		152,034		90,033		62,001	68.9	%
Total noninterest income	$	510,307	$	570,756	$	(60,449)	(10.6)	%

Noninterest Expense. Noninterest expense increased $49,000, or 2.8%, to $1.8 million for the three months ended September 30, 2024 from $1.7 million for the three months ended September 30, 2023. Salary and benefit expenses increased $91,000 related to additional salary expense, data processing and information technology expense increased $12,000 due to the implementation of additional network services, and an increase of $12,000 in FDIC insurance premiums. These increases were offset by an overall decrease in other expense primary related to a $45,000 reduction in professional services expense. The table below sets forth our noninterest expense for the three months ended September 30, 2024 and 2023:

	Three Months Ended
	September 30,				Change
	2024		2023		Amount		Percent
Salaries and related benefits	$	1,027,241	$	935,770	$	91,471	9.8	%
Occupancy expense, net		165,351		162,493		2,858	1.8	%
Data processing		247,212		235,100		12,112	5.2	%
Advertising		25,282		39,257		(13,975)	(35.6)	%
FDIC insurance premiums		79,809		68,189		11,620	17.0	%
Other		244,175		299,642		(55,467)	(18.5)	%
Total noninterest expense	$	1,789,070	$	1,740,451	$	48,619	2.8	%

Income Tax Expense. Our benefit for income taxes increased $117,000 to a benefit of $150,000 for the three months ended September 30, 2024, from a benefit of $33,000 for the three months ended September 30, 2023 due to an increase in loss before income taxes.

28

Average Balances and Yields. The following tables set forth average balance sheets, average yields and costs, and certain other information at the dates and for the periods indicated. No tax-equivalent yield adjustments have been made, as the effects would be immaterial. Average yields include the effect of net deferred fee income, discounts and premiums that are amortized or accreted to interest income or interest expense. Average balances are calculated using daily average balances. Non-accrual loans are included in the computation of average balances only. Average loan balances exclude any loans held for sale.

	For the Three Months Ended September 30,
	2024							2023
	Average							Average
	Outstanding					Average		Outstanding					Average
	Balance			Interest		Yield/Rate		Balance			Interest		Yield/Rate
	(Dollars in thousands)
Interest-earning assets:
Loans (1)	$	180,501		$	2,165	4.82	%	$	177,888		$	1,921	4.34	%
Securities available for sale		23,415			135	2.32	%		23,715			145	2.46	%
Securities held to maturity		39,263			136	1.39	%		39,523			138	1.40	%
Cash, cash equivalents and other interest-earning assets		7,138			38	2.14	%		8,639			35	1.63	%
Total interest-earning assets	$	250,317		$	2,474	3.98	%	$	249,765		$	2,239	3.61	%
Noninterest-earning assets	$	17,844						$	16,980
Total assets	$	268,161						$	266,745
Interest-bearing liabilities:
Interest-bearing demand deposits	$	30,244		$	8	0.11	%	$	29,518		$	8	0.11	%
Savings deposits		32,517			4	0.05	%		35,653			5	0.06	%
Money market		42,998			76	0.71	%		55,398			96	0.70	%
Certificates of deposit		111,489			1,253	4.52	%		103,820			874	3.39	%
Total interest-bearing deposits	$	217,248		$	1,341	2.48	%	$	224,389		$	983	1.76	%
Borrowed funds		28,165			326	4.66	%		20,766			205	3.97	%
Total interest-bearing liabilities	$	245,413		$	1,667	2.73	%	$	245,155		$	1,188	1.95	%
Noninterest-bearing demand deposits		11,160							10,053
Other noninterest-bearing liabilities		1,215							789
Total liabilities		257,788							255,997
Total equity		10,373							10,748
Total liabilities and equity	$	268,161						$	266,745
Net interest income				$	807						$	1,051
Net interest rate spread (2)						1.25	%						1.66	%
Net interest-earning assets (3)	$	4,904						$	4,610
Net interest margin (4)						1.30	%						1.69	%
Average interest-earning assets to interest-bearing liabilities		102.0	%						101.9	%

(1) Net deferred fee income included in interest earned on loans totaled $61,000 for the three months ended September 30, 2024 and $82,000 for the three months ended September 30, 2023.

(2) Net interest rate spread represents the difference between the weighted average earned yield on interest-earning assets and the weighted average rate paid on interest-bearing liabilities.

(3) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.

(4) Net interest margin represents net interest income divided by average total interest-earning assets.

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	For the Nine Months Ended September 30,
	2024							2023
	Average							Average
	Outstanding					Average		Outstanding					Average
	Balance			Interest		Yield/Rate		Balance			Interest		Yield/Rate
	(Dollars in thousands)
Interest-earning assets:
Loans (1)	$	177,510		$	6,233	4.69	%	$	177,888		$	5,660	4.25	%
Securities available for sale		23,416			412	2.35	%		23,716			542	3.05	%
Securities held to maturity		39,797			410	1.38	%		39,523			412	1.39	%
Cash, cash equivalents and other interest-earning assets		7,627			123	2.15	%		7,669			54	0.94	%
Total interest-earning assets	$	248,350		$	7,178	3.86	%	$	248,796		$	6,668	3.58	%
Noninterest-earning assets	$	17,364						$	17,949
Total assets	$	265,714						$	266,745
Interest-bearing liabilities:
Interest-bearing demand deposits	$	30,411		$	24	0.11	%	$	29,518		$	21	0.10	%
Savings deposits		32,648			13	0.05	%		35,653			14	0.05	%
Money market		46,422			243	0.70	%		55,398			308	0.74	%
Certificates of deposit		109,343			3,553	4.34	%		103,820			2,158	2.78	%
Total interest-bearing deposits	$	218,824		$	3,833	2.34	%	$	224,389		$	2,501	1.48	%
Borrowed funds		25,882			898	4.63	%		20,766			512	3.30	%
Total interest-bearing liabilities	$	244,706		$	4,731	2.58	%	$	245,155		$	3,013	1.64	%
Noninterest-bearing demand deposits		9,684							10,053
Other noninterest-bearing liabilities		1,242							789
Total liabilities		255,632							255,997
Total equity		10,082							10,748
Total liabilities and equity	$	265,714						$	266,745
Net interest income				$	2,447						$	3,655
Net interest rate spread (2)						1.28	%						1.94	%
Net interest-earning assets (3)	$	3,644						$	3,641
Net interest margin (4)						1.32	%						1.96	%
Average interest-earning assets to interest-bearing liabilities		101.5	%						101.5	%

(1) Net deferred fee income included in interest earned on loans totaled $162,000 for the nine months ended September 30, 2024 and $255,000 for the nine months ended September 30, 2023.

(2) Net interest rate spread represents the difference between the weighted average earned yield on interest-earning assets and the weighted average rate paid on interest-bearing liabilities.

(3) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.

(4) Net interest margin represents net interest income divided by average total interest-earning assets.

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Rate/Volume Analysis. The following table presents the effects of changing rates and volumes on our net interest income for the periods indicated. The rate column shows the effects attributable to changes in rate (changes in rate multiplied by prior volume). The volume column shows the effects attributable to changes in volume (changes in volume multiplied by prior rate). The total column represents the sum of the prior columns. For purposes of this table, changes attributable to both rate and volume, which cannot be segregated, have been allocated proportionately based on the changes due to rate and the changes due to volume. There were no out-of-period items or adjustments required to be excluded from the table below.

	Three Months Ended September 30,						Nine Months Ended September 30,
	2024 vs. 2023						2024 vs. 2023
					Total						Total
	Increase (Decrease) Due to				Increase		Increase (Decrease) Due to				Increase
	Volume		Rate		(Decrease)		Volume		Rate		(Decrease)
	(In thousands)
Interest-earning assets:
Loans	$	29	$	215	$	244	$	(12)	$	585	$	573
Securities available-for-sale		(2)		(8)		(10)		(7)		(123)		(130)
Securities held-to-maturity		(1)		(1)		(2)		3		(5)		(2)
Cash, cash equivalents and other interest-earning assets		(6)		9		3		—		69		69
Total interest-earning assets		20		215		235		(16)		526		510
Interest-bearing liabilities:
Interest-bearing demand deposits		0		(0)		—		1		2		3
Savings deposits		(0)		(1)		(1)		(1)		—		(1)
Money market		(22)		2		(20)		(50)		(15)		(65)
Certificates of deposit		65		314		379		115		1,280		1,395
Total interest-bearing deposits		43		315		358		65		1,267		1,332
Borrowed funds		74		47		121		126		259		385
Total interest-bearing liabilities		117		362		479		191		1,526		1,717
Change in net interest income	$	(97)	$	(147)	$	(244)	$	(207)	$	(1,000)	$	(1,207)

Comparison of Operating Results for the Nine Months Ended September 30, 2024 and 2023

Net Income/(Loss). We recorded a net loss of $1.2 million for the nine months ended September 30, 2024, compared to a net loss of $531,000 for the nine months ended September 30, 2023, a change of $641,000 year-over-year. The increase in our net loss year-over-year resulted primarily from a $1.2 million decrease in net interest income due to increased funding costs and an increase of $126,000 in total noninterest expense, partially offset by a decrease of $133,000 in the provision for credit losses, an increase of $241,000 in noninterest income and an increase of $320,000 in the benefit for income taxes.

Interest Income. Interest income increased $510,000 or 7.6%, to $7.2 million for the nine months ended September 30, 2024, from $6.7 million for the nine months ended September 30, 2023, due to a $607,000 increase in interest and fees on loans. The increase in interest and fees on loans was primarily due to an increase of 44 basis points in the weighted average yield on the loan portfolio to 4.69% for the nine months ended September 30, 2024 from 4.25% for the same period in 2023. Interest income on securities and other investments decreased $98,000 to $945,000 for the nine months ended September 30, 2024 primarily due to $2.4 million in security maturities and paydowns during the nine months ended September 30, 2024.

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Interest Expense. Total interest expense increased $1.7 million, or 57.0%, to $4.7 million for the nine months ended September 30, 2024, from $3.0 million for the nine months ended September 30, 2023. Interest expense on deposits increased $1.3 million or 53.3%, to $3.8 million for the nine months ended September 30, 2024 from $2.5 million for the nine months ended September 30, 2023. This increase was due primarily to an increase in the weighted average rate paid on certificates of deposit of 156 basis points to 4.34% for the nine months ended September 30, 2024 from 2.78% for the nine months ended September 30, 2023, combined with an increase in the average balance of such deposits of $5.5 million year-over-year and a $12.0 million decrease in the average balance of lower-cost savings and money market accounts year-over-year.

Interest expense on borrowed funds increased $386,000, or 75.4%, to $898,000 for the nine months ended September 30, 2024, from $512,000 for the nine months ended September 30, 2023. The rate paid on borrowed funds increased 138 basis points to 4.56% for the nine months ended September 30, 2024, from 3.18% for the nine months ended September 30, 2023 while the average balance of borrowed funds increased $5.1 million, or 24.6%, to $25.9 million for the nine months ended September 30, 2024 from $20.8 million for the nine months ended September 30, 2023. The increase in the average balance was generally related to the measured use of borrowings to offset deposit outflows and to support the increase in the loan portfolio.

Net Interest Income. Net interest income decreased $1.2 million, or 33.1%, to $2.4 million for the nine months ended September 30, 2024 from $3.6 million for the nine months ended September 30, 2023, primarily due to a decrease in the interest rate spread to 1.29% for the nine months ended September 30, 2024 from 1.95% for the nine months ended September 30, 2023 and a decrease in the net interest margin to 1.32% for the nine months ended September 30, 2024, from 1.97% for the nine months ended September 30, 2023. The decreases in the interest rate spread and the net interest margin were primarily due to an increase in the rates paid on interest-bearing liabilities in conjunction with an increase in other borrowings, partially offset by a 28 basis point increase in the weighted average yield on our interest earning assets.

Provision for Credit Losses. Based on management’s analysis of the adequacy of the ACL and unfunded loan commitments, a net provision of $130,000 comprising of a provision of $65,000 to the ACL and a provision of $65,000 to the ACL for unfunded loan commitments was recorded for the nine months ended September 30, 2024, compared to $263,000 for the same period in 2023.

Noninterest Income. Noninterest income increased $241,000, or 20.7%, to $1.4 million for the nine months ended September 30, 2024 from $1.2 million for the nine months ended September 30, 2023. The increase resulted primarily from a $51,000 increase in mortgage banking revenue due to increased activity, a $262,000 gain on an interest rate swap entered into late in 2023, and an increase of $179,000 in other noninterest income due to an increase of $25,000 in investment advisory income, a $78,000 increase in insurance agency income and a $78,000 increase in fee income related to off balance sheet deposit services. These increases were partially offset on a comparative basis due to a $208,000 gain on the sale on fixed assets related to a branch property sale and a $71,000 gain on other real estate owned that was recognized in the nine months ended September 30, 2023 while there were no such gains in the 2024 period. The table below sets forth our noninterest income for the nine months ended September 30, 2024 and 2023:

	Nine Months Ended
	September 30,				Change
	2024		2023		Amount		Percent
Service charges on deposit accounts	$	60,212	$	44,889	$	15,323	34.1	%
Interchange income		179,950		182,846		(2,896)	(1.6)	%
Mortgage banking income		358,159		306,729		51,430	16.8	%
Increase in cash value of life insurance		174,248		158,293		15,955	10.1	%
Gain on sale of fixed assets		—		207,738		(207,738)	(100.0)
Gain on sale of land held for sale		—		71,012		(71,012)	(100.0)	%
Gain on interest rate swap		261,691		—		261,691	—	%
Other		371,138		192,441		178,697	92.9	%
Total noninterest income	$	1,405,398	$	1,163,948	$	241,450	20.7	%

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Noninterest Expense. Noninterest expense increased $126,000, or 2.4%, to $5.4 million for the nine months ended September 30, 2024 from $5.3 million for the nine months ended September 30, 2023. Data processing and information technology expense increased $94,000 due to the implementation of additional network services and an increase in other noninterest expense was due in large part to additional accounting and audit-related services. Salary and related benefits increased $114,000. The increase in noninterest expense when comparing the two periods was partially offset by a $57,000 decrease in net occupancy expense for the nine months ended September 30, 2024, which resulted primarily from the closing of one of our branch offices in the third quarter of 2023 combined with additional operational efficiencies that we implemented in 2023. The table below sets forth our noninterest expense for the nine months ended September 30, 2024 and 2023:

	Nine Months Ended
	September 30,				Change
	2024		2023		Amount		Percent
Salaries and related benefits	$	3,075,624	$	2,961,553	$	114,071	3.9	%
Occupancy expense, net		499,010		556,045		(57,035)	(10.3)	%
Data processing		811,875		717,955		93,920	13.1	%
Advertising		109,635		128,145		(18,510)	(14.4)	%
FDIC insurance premiums		231,292		223,195		8,097	3.6	%
Other		678,266		692,662		(14,396)	(2.1)	%
Total noninterest expense	$	5,405,702	$	5,279,555	$	126,147	2.4	%

Income Tax Expense. Our benefit for income taxes increased $320,000 to a benefit of $512,000 for the nine months ended September 30, 2024, from a benefit of $192,000 for the nine months ended September 30, 2023 due to an increase in loss before provision (benefit from) income taxes.

Management of Market Risk

General. Our most significant form of market risk is interest rate risk because, as a financial institution, the majority of our assets and liabilities are sensitive to changes in interest rates. Therefore, a principal part of our operations is to manage interest rate risk and limit the exposure of our financial condition and results of operations to changes in market interest rates. Our Asset Liability Committee is responsible for evaluating the interest rate risk inherent in our assets and liabilities, for determining the level of risk that is appropriate, given our business strategy, operating environment, capital, liquidity and performance objectives, and for managing this risk consistent with the policy and guidelines approved by our board of directors. The Asset Liability Committee, which is a management-level committee, meets at least quarterly, or more frequently when necessary, is comprised of our President/Chief Executive Officer, Senior Vice President of Finance, Vice President of Lending and Vice President of Member Relations, and reports to the full board of directors on at least a quarterly basis. The Asset Liability Committee is responsible for recommending to the board of directors policies and procedures regarding asset/liability management, while it is the responsibility of the board of directors to determine whether to adopt such policies and procedures. We currently utilize a third-party modeling program, prepared on a quarterly basis, to evaluate our sensitivity to changing interest rates, given our business strategy, operating environment, capital, liquidity and performance objectives, and for managing this risk consistent with the guidelines approved by the board of directors.

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Management of interest rate risk is one of the Bank’s highest priorities. In 2023, the Bank adopted a new asset/liability management policy and revamped its interest rate risk management processes and procedures to reduce interest rate risk exposure. Over the last year, the Bank has refined the input assumptions and various other input and output metrics, such as deposit decay rates, to enhance modeling accuracy. The Bank has also instituted education and training processes to provide management with information regarding emerging market forces and asset/liability-related management issues, practices and governance. Through these and other enhancements, we have significantly improved our ability to manage our interest rate risk and minimize the exposure of our earnings and capital to changes in interest rates. Pursuant to our new asset/liability management policy, we are seeking to implement the following strategies to further improve the management of our interest rate risk:

● maintaining capital levels that exceed the thresholds for well-capitalized status under federal regulations;

● maintaining a prudent level of liquidity, including through maintaining a portfolio of cash, short-term investments or investments with amortizing features;

● originating shorter term or adjustable-rate loans for portfolio, which have become somewhat more attractive to many borrowers in the current rate environment, and selling the majority of our longer term, fixed-rate residential loans;

● attempting to increase the balances of core deposits, which are less sensitive to interest rate fluctuations;

● managing our utilization of wholesale funding with borrowings from the FHLB in a prudent manner;

● managing the terms of our certificates of deposit; and

● emphasizing asset quality to maximize the level of interest-earning assets.

Shortening the average term of our interest-earning assets by increasing our investments in shorter term assets, as well as originating loans with variable interest rates, helps to match the maturities and interest rates of our assets and liabilities better, thereby reducing the exposure of our net interest income to changes in market interest rates.

We recently entered into an interest rate swap for the purpose of mitigating interest rate risk, but it is not our policy to enter into such transactions on a regular basis. The interest rate swap was designated as a fair value last of layer hedge for certain fixed-rate prepayable loans and had a notional value of $25.0 million at September 30, 2024.

Net Interest Income. We analyze our sensitivity to changes in interest rates through a net interest income model. Net interest income is the difference between the interest income we earn on our interest-earning assets, such as loans and securities, and the interest we pay on our interest-bearing liabilities, such as deposits and borrowings. We estimate what our net interest income would be for a 12-month period. We then calculate what the net interest income would be for the same period under the assumptions that the U.S. Treasury yield curve increases or decreases instantaneously by various basis point increments, with changes in interest rates representing immediate and permanent, parallel shifts in the yield curve. A basis point equals one-hundredth of one percent, and 100 basis points equals one percent. An increase in interest rates from 3% to 4% would mean, for example, a 100-basis point increase in the “Change in Interest Rates” column below.

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The following table sets forth, as of September 30, 2024, the calculation of the estimated changes in our net interest income that would result from the designated immediate changes in the U.S. Treasury yield curve.

At September 30, 2024
Change in Interest Rates	Net Interest Income Year 1		Year 1 Change from
(basis points) (1)	Forecast		Level
(Dollars in thousands)
300	$	(96)	(2.77)	%
200		(45)	(1.31)	%
100		(18)	(0.51)	%
Level		—	—	%
(100)		155	4.50	%
(200)		302	8.77	%
(300)		439	12.75	%

(1) Assumes an immediate uniform change in interest rates at all maturities.

The table above indicates that at September 30, 2024, we would have experienced a 1.31% decrease in net interest income in the event of an instantaneous parallel 200 basis point increase in market interest rates and a 8.77% increase in net interest income in the event of an instantaneous parallel 200 basis point decrease in market interest rates.

Economic Value of Equity. We also compute amounts by which the net present value of our assets and liabilities (economic value of equity or “EVE”) would change in the event of a range of assumed changes in market interest rates. This model uses a discounted cash flow analysis and an option-based pricing approach to measure the interest rate sensitivity of net portfolio value. The model estimates the economic value of each type of asset, liability and off-balance sheet contract under the assumptions that the U.S. Treasury yield curve increases instantaneously by 100, 200 and 300 basis point increments or decreases instantaneously by 100, 200 and 300 basis point increments, with changes in interest rates representing immediate and permanent, parallel shifts in the yield curve.

The following table sets forth, as of September 30, 2024, the calculation of the estimated changes in our EVE that would result from the designated immediate changes in the U.S. Treasury yield curve.

At September 30, 2024
			Estimated Increase
Change in Interest Rates	Estimated		(Decrease) in EVE
(basis points) (1)	EVE (2)		Amount		Percent
(Dollars in thousands)
300	$	12,274	$	(8,379)	(40.57)	%
200		15,662		(4,991)	(24.17)	%
100		18,112		(2,541)	(12.30)	%
Level		20,653		n/a	—	%
(100)		23,316		2,663	12.89	%
(200)		26,031		5,378	26.04	%
(300)		28,184		7,531	36.46	%

(1) Assumes an immediate 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.

(3) Present value of assets represents the discounted present value of incoming cash flows on interest-earning assets.

(4) EVE ratio represents EVE divided by the present value of assets.

The table above indicates that at September 30, 2024, we would have experienced a 24.17% decrease in EVE in the event of an instantaneous parallel 200 basis point increase in market interest rates and a 26.04% increase in EVE in the event of an instantaneous parallel 200 basis point decrease in market interest rates. The decrease in EVE that we would experience in the event of an instantaneous parallel 200 basis point increase in market interest rates is outside of

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the limits set forth in the Bank’s new asset/liability management policy. While the Bank has developed policies and procedures that it believes will help reduce its interest rate exposure, any targeted improvement is expected to be realized gradually given the constraints imposed by the Bank’s current balance sheet composition and capital structure as well as regulatory requirements. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Management of Market Risk” and “Supervision and Regulation—Informal Agreements with Regulators” included in the Prospectus dated June 28, 2024.

Certain shortcomings are inherent in the methodologies used in the above interest rate risk measurements. Modeling changes require making certain assumptions that may or may not reflect the manner in which actual yields and costs respond to changes in market interest rates. The net interest income and net economic value tables presented assume that the composition of our interest-sensitive assets and liabilities existing at the beginning of a period remains constant over the period being measured and assumes that a particular change in interest rates is reflected uniformly across the yield curve regardless of the duration or repricing of specific assets and liabilities. Accordingly, although the tables provide an indication of our interest rate risk exposure at a particular point in time, such measurements are not intended to and do not provide a precise forecast of the effect of changes in market interest rates, and actual results may differ.

Interest rate risk calculations also may not reflect the fair values of financial instruments. For example, decreases in market interest rates can increase the fair values of our loans, mortgage servicing rights, deposits and borrowings.

Liquidity and Capital Resources

Liquidity describes our ability to meet the financial obligations that arise in the ordinary course of business. Liquidity is primarily needed to meet the borrowing and deposit withdrawal requirements of our customers and to fund current and planned expenditures. In 2023, the Bank developed and implemented an improved process to project the sources and uses of funds over short- and long-term horizons, and, in concert with our asset/liability management policy, implemented guidelines to better identify potential funding gaps. Further, we have established an early warning system for measuring and monitoring liquidity, including through the establishment of early warning indicators.

Our primary sources of funds are deposits, principal and interest payments on loans and securities, and proceeds from maturities of securities. We are also able to borrow from the FHLB. At September 30, 2024, we had outstanding advances of $21.8 million from the FHLB. At September 30, 2024, we had unused borrowing capacity of $44.8 million from the FHLB. At September 30, 2024, we also had a $25.0 million available line of credit with the Discount Window at the Federal Reserve Bank of Chicago. In addition, at September 30, 2024 we had a $6.0 million line of credit with a correspondent bank. We have not drawn against the Discount Window or the line of credit. Additionally, we participated in the Federal Reserve Board’s BTFP in January 2024 and had a $3.5 million outstanding borrowing at September 30, 2024.

While maturities and scheduled amortization of loans and securities are predictable sources of funds, deposit flows and loan prepayments are greatly influenced by general interest rates, economic conditions, and competition. Our most liquid assets are cash and short-term investments. The levels of these assets are dependent on our operating, financing, lending, and investing activities during any given period.

Our cash flows are comprised of three primary classifications: cash flows from operating activities, investing activities, and financing activities. For additional information, see the condensed consolidated statements of cash flows for the nine months ended September 30, 2024 and 2023 included as part of the consolidated financial statements appearing elsewhere in this filing.

We are committed to maintaining a strong liquidity position. We monitor our liquidity position on a daily basis. We anticipate that we will have sufficient funds to meet our current funding commitments. Based on our deposit retention experience and current pricing strategy and regulatory restrictions, we anticipate that a significant portion of maturing time deposits will be retained, and that we can supplement our funding with borrowings in the event that we allow these deposits to run off at maturity.

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As a Wisconsin-chartered savings bank, we must maintain a net worth ratio of 6.0% (with “net worth ratio” defined under Wisconsin law as the Bank’s total liabilities subtracted from its total assets, plus unallocated general loan loss reserves, all divided by the Bank’s total assets). At September 30, 2024 and December 31, 2023, we had a net worth ratio of 6.04% and 4.50%, respectively.

At September 30, 2024 and December 31, 2023, our capital levels at the Bank level exceeded the levels required to be technically considered “well capitalized” under federal regulatory capital regulations. However, we operate under an MOU with the Department and the FDIC pursuant to which, among other things, we have agreed to achieve and maintain Tier 1 capital and total risk-based capital ratio levels above that which are required under federal regulatory capital regulations and a net worth ratio (as defined under Wisconsin law) of 6.0%. At September 30, 2024, we had Tier 1 capital equal to 7.4% of total average assets, total risk-based capital equal to 13.5% of risk-weighted assets and a net worth ratio of 6.04%. At December 31, 2023, we had Tier 1 capital equal to 6.3% of total average assets, total risk-based capital equal to 11.9% of risk-weighted assets and a net worth ratio of 4.50%. Our net worth ratio for purposes of compliance with Wisconsin law is calculated differently from the federal regulatory capital regulations in that it reflects the impact of the Bank’s unallocated general loan loss reserves. The Bank’s unallocated general loan loss reserves do not impact the calculation of the federal regulatory capital ratios.

The net proceeds contributed to the Bank from the stock offering completed on September 20, 2024, have significantly increased our liquidity and capital resources. Over time, the initial level of liquidity will be reduced as net proceeds from the stock offering are used for general corporate purposes, including funding loans. Our financial condition and results of operations will be enhanced by the net proceeds from the offering, which will increase our net interest-earning assets and net interest income. However, due to the increase in equity resulting from the net proceeds raised in the offering, as well as other factors associated with the offering, our return on equity may be adversely affected for a period of time following the offering. This could negatively affect the trading price of our shares of common stock.

Off-Balance Sheet Arrangements and Aggregate Contractual Obligations

Commitments. As a financial services provider, we routinely are a party to various financial instruments with off-balance-sheet risks, such as commitments to extend credit and unused lines of credit. While these contractual obligations represent our future cash requirements, a significant portion of commitments to extend credit may expire without being drawn upon. Such commitments are subject to the same credit policies and approval process accorded to loans we make. At September 30, 2024, we had outstanding commitments to originate loans of $18.0 million. We anticipate that we will have sufficient funds available to meet our current lending commitments. Certificates of deposit that are scheduled to mature in one year or less from September 30, 2024 totaled $94.4 million. Management expects that a substantial portion of these time deposits will be retained. However, if a substantial portion of these time deposits is not retained, we may utilize advances from the FHLB or raise interest rates on deposits to attract new accounts, which may result in higher levels of interest expense.

Our off-balance sheet credit exposures are limited to unfunded loan commitments primarily related to residential real estate loans. The unfunded commitments are evaluated on a quarterly basis. Our losses related to the unfunded commitments as of September 30, 2024 were estimated to be $68;000. We have provisioned for this exposure and recorded a reserve of $68,000 as of September 30, 2024.

Contractual Obligations. In the ordinary course of our operations, we enter into certain contractual obligations. Such obligations include data processing services, operating contracts for premises and equipment, agreements with respect to borrowed funds and deposit liabilities.

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Item 3. Quantitative and Qualitative Disclosures About Market Risk

Not applicable, as the Company is a smaller reporting company.

Item 4. Controls and Procedures

An evaluation was performed under the supervision and with the participation of the Company’s management, including the Chief Executive Officer and the Chief Financial Officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) promulgated under the Securities and Exchange Act of 1934, as amended) as of September 30, 2024. Based on that evaluation, the Company’s management, including the Chief Executive Officer and the Chief Financial Officer, concluded that the Registrant’s disclosure controls and procedures were effective.

During the quarter ended September 30, 2024, there have been no changes in the Company’s internal controls over financial reporting that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

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Part II – Other Information

Item 1. Legal Proceedings

The Company is subject to various legal actions arising in the normal course of business. In the opinion of management, the resolution of these legal actions is not expected to have a material adverse effect on the Company’s financial condition or results of operations.

Item 1A. Risk Factors

In addition to the other information set forth in this Quarterly Report on Form 10-Q, you should carefully consider the factors discussed under the heading “Risk Factors” contained in the Prospectus. The Company’s evaluation of the risk factors applicable to it has not changed materially from those disclosed in the Prospectus.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Not applicable.

Item 3. Defaults Upon Senior Securities

Not applicable.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

During the three months ended September 30, 2024, none of our directors or executive officers adopted or terminated any contract, instruction or written plan for the purchase or sale of the Company’s securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1 or any “non-Rule 10b5-1 trading arrangement.”

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Item 6. Exhibits

3.1	Articles of Incorporation of EWSB Bancorp, Inc. (1)
3.2	Bylaws of EWSB Bancorp, Inc. (2)
4	Form of Common Stock of EWSB Bancorp, Inc. (3)
31	Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32	Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101	The following materials for the nine months ended September 30, 2024, formatted in Inline XBRL (Extensible Business Reporting Language): (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Income, (iii) Consolidated Statements of Comprehensive Income, (iv) Consolidated Statements of Changes in Stockholders’ Equity, (v) Consolidated Statements of Cash Flows, and (vi) Notes to Consolidated Financial Statements
104	Cover Page Interactive Data File (embedded within the Inline XBRL document and included in Exhibit 101)

(1) Incorporated by reference to Exhibit 3.1 to the Company’s Registration Statement on Form S-1, (Commission File No. 333-277828), initially filed on March 11, 2024.

(2) Incorporated by reference to Exhibit 3.2 to the Company’s Registration Statement on Form S-1, (Commission File No. 333-277828), initially filed on March 11, 2024.

(3) Incorporated by reference to Exhibit 4 to the Company’s Registration Statement on Form S-1 (Commission File No. 333-277828), initially filed on March 11, 2024

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	EWSB BANCORP, INC.
Date: November 13, 2024	/s/ Charles D. Schmalz
	Charles D. Schmalz
	President, Chief Executive Officer and Chief Financial Officer

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