1895 Bancorp Of Wis Stock Price, News & Analysis

1895 Bancorp of Wisconsin, Inc. (NASDAQ: BCOW) is the savings and loan holding company for PyraMax Bank, FSB, a federally chartered savings bank headquartered in Greenfield, Wisconsin. According to company disclosures, PyraMax Bank was established in 1895 and has operated continuously since that time in the Milwaukee, Wisconsin market. The bank serves customers in Milwaukee, Waukesha and Ozaukee counties through multiple full-service banking offices.

The company identifies itself as the holding company for a full-service stock savings bank. Public information describes PyraMax Bank as operating from three full-service banking offices in Milwaukee County, two full-service banking offices in Waukesha County and one full-service banking office in Ozaukee County, Wisconsin. As a commercial banking institution in the finance and insurance sector, 1895 Bancorp of Wisconsin, Inc. reports on its balance sheet items such as loans held for investment, loans held for sale, available-for-sale securities, deposits, Federal Home Loan Bank advances and other assets and liabilities.

Company releases highlight a focus on balance sheet management and securities portfolio repositioning. In separate announcements, 1895 Bancorp of Wisconsin, Inc. described balance sheet repositioning strategies involving the sale of lower-yielding investment and U.S. Treasury securities classified as available-for-sale and the redeployment of proceeds into U.S. government sponsored mortgage-backed securities, also classified as available-for-sale upon purchase. The company stated that these transactions were intended to increase yields on its securities portfolio, affect net interest income, and provide greater flexibility in managing balance sheet growth, while maintaining capital levels at PyraMax Bank that exceed the thresholds to be categorized as well-capitalized.

Public financial updates from the company discuss net interest income, net interest margin, interest rate spread, provision for loan losses, non-interest income, non-interest expense and overall net income or net loss for given reporting periods. Management commentary in those releases links changes in net interest income to factors such as growth in average loans outstanding, deployment of excess liquidity into securities, and changes in yields on loans and securities. The company also reports on changes in non-interest income related to gains on the sale of loans, loan servicing fees and the market value of marketable equity securities held in a deferred compensation plan, as well as changes in non-interest expense, including salaries and employee benefits.

1895 Bancorp of Wisconsin, Inc. has also disclosed capital management actions. In one announcement, the company reported adopting a second stock repurchase program, subject to regulatory non-objection, authorizing repurchases of up to a specified percentage of its outstanding common shares. The company indicated that repurchases may occur in open market or private transactions, including block trades or transactions under a Rule 10b5-1 trading plan, and that the timing and amount of repurchases may be adjusted or discontinued based on factors such as market conditions, the trading price of the stock, alternative uses of capital, liquidity and financial performance.

Corporate governance and leadership developments are another recurring theme in company communications. 1895 Bancorp of Wisconsin, Inc. has announced executive appointments, including changes in the roles of its President and Chief Executive Officer, Chief Operating Officer, Chief Financial Officer and Chief Lending Officer. The company has also reported board of director transitions, such as the retirement of a long-term board member and the appointment of new directors who bring experience in banking, financial services and related areas. These announcements emphasize the company’s focus on board diversity, governance and experience in areas such as retail banking, treasury management and strategic planning.

In a more recent development, 1895 Bancorp of Wisconsin, Inc. announced that it engaged Keefe, Bruyette & Woods, Inc., a Stifel Company, as financial advisor to assist the company in evaluating strategic alternatives. The company stated that this engagement is broad in scope and could involve consideration of a strategic business combination or sale of control, while noting that no timeline has been established for the conclusion of the strategic review or any particular strategic action.

The same announcement described plans for a voluntary delisting and deregistration of the company’s common stock. 1895 Bancorp of Wisconsin, Inc. reported that it notified Nasdaq of its intent to delist its common stock from the Nasdaq Stock Market and to withdraw the registration of its common stock under the Securities Exchange Act of 1934. The company indicated that it intends to file a Form 25 (Notification of Removal from Listing) with the SEC and expects the last trading day of its common stock on Nasdaq to coincide with that filing date. Following delisting from Nasdaq, the company stated that it expects its common stock to be quoted on the OTCQX Market and to retain the symbol "BCOW."

The company further disclosed its intention to file a Form 15 (Certification and Notice of Termination From Registration) with the SEC. Upon filing Form 15, 1895 Bancorp of Wisconsin, Inc. stated that its obligation to file periodic reports with the SEC, including Forms 10-K, 10-Q and 8-K, will be suspended. The company has indicated that it will continue to provide stockholders with an annual report containing audited consolidated financial statements and that quarterly interim financial information will be made available on its website. It also noted that PyraMax Bank will continue to file quarterly Call Reports with the Federal Deposit Insurance Corporation.

In explaining the rationale for delisting and deregistration, the company’s Board of Directors stated that this course of action is expected to reduce compliance and accounting expenses and allow management to focus additional time on its core mission. Throughout these communications, 1895 Bancorp of Wisconsin, Inc. presents itself as a holding company centered on the operations of PyraMax Bank, a community-oriented savings bank serving customers in the Milwaukee metropolitan area through its network of full-service offices.

Business model and operations

Based on the company’s public financial summaries, 1895 Bancorp of Wisconsin, Inc. generates results that reflect interest income from loans and securities, interest expense on deposits and borrowings, and non-interest income and expenses associated with banking operations. The company reports on net interest income, net interest margin and interest rate spread, and discusses strategies such as deploying excess liquidity into securities with higher yields and growing commercial and commercial real estate loans within its loan portfolio.

The company’s disclosures describe changes in its loan portfolio, including growth in commercial real estate loans and non-real estate commercial loans, as part of a long-term strategy to increase the level of commercial and commercial real estate loans. It also reports on the volume of mortgage loans originated and sold into the secondary market, and on the level of loans held for sale. On the funding side, the company reports on deposit balances across categories such as money market accounts, certificates of deposit, interest-bearing checking accounts, statement savings accounts and noninterest bearing checking accounts, as well as on borrowings in the form of Federal Home Loan Bank advances.

Geographic focus

According to company statements, PyraMax Bank has operated in the Milwaukee, Wisconsin market since its founding in 1895. The bank is described as a full-service stock savings bank with its corporate office in Greenfield, Wisconsin, serving customers in Milwaukee, Waukesha and Ozaukee counties through six banking offices. Another company release specifies that the bank operates from three full-service banking offices in Milwaukee County, two in Waukesha County and one in Ozaukee County, Wisconsin.

Capital and balance sheet management

1895 Bancorp of Wisconsin, Inc. has publicly discussed its approach to capital and balance sheet management. In its balance sheet repositioning announcements, the company emphasized that PyraMax Bank’s capital levels remained well in excess of those required to be categorized as well-capitalized after the repositioning transactions. The company also noted that the realized losses on the sale of securities in those transactions had a neutral impact on shareholders’ equity and book value per share, and that the repositioning was projected to affect metrics such as earnings, net interest margin and return on assets.

In addition, the company has used stock repurchase programs as a capital management tool. It has described adopting a second repurchase program that would allow repurchases of a portion of its outstanding common stock, subject to regulatory non-objection and other conditions, and has noted that repurchases may be adjusted based on market and company-specific factors.

Corporate governance and leadership

Company announcements describe changes in the composition of the board of directors and executive leadership team. These include the retirement of a long-serving director, the appointment of new board members with backgrounds in banking and financial services, and promotions or role changes for senior executives responsible for areas such as strategic planning, operations, finance and lending. The company characterizes these changes as part of its efforts to maintain a diverse and experienced board and management team aligned with its strategic goals.

Company status and trading venue

1895 Bancorp of Wisconsin, Inc. has publicly stated that it intends to voluntarily delist its common stock from the Nasdaq Stock Market and to deregister its common stock under the Securities Exchange Act of 1934 by filing Form 25 and Form 15 with the SEC. The company has indicated that, following delisting from Nasdaq, it expects its common stock to be quoted on the OTCQX Market and to continue using the symbol "BCOW." It has also stated that, after filing Form 15, its obligation to file periodic reports with the SEC will be suspended, although it plans to continue providing audited annual financial statements and interim financial information through other channels.