1895 Bancorp of Wisconsin Inc (NASDAQ: BCOW) is a Wisconsin-based bank holding company that operates through its subsidiary PyraMax Bank, FSB, a federally chartered savings bank. The company earns revenue primarily through net interest income, the spread between interest collected on loans and investments and interest paid on deposits and borrowings. PyraMax Bank originates residential and commercial real estate loans, construction loans, and land development loans, and funds these assets through core deposits including checking accounts, money market accounts, and statement savings. The company completed its mutual-to-stock conversion on July 14, 2021, becoming a fully public stock holding company. As of December 31, 2023, BCOW had 6,084,665 shares of common stock outstanding. The bank competes against commercial banks, savings institutions, credit unions, mortgage brokerage firms, and non-bank financial entities, many of which are substantially larger with greater resources and higher lending limits.

Revenue model

Net interest income from the spread between yields on interest-earning assets (loans, investment securities including government-sponsored mortgage-backed securities, municipal obligations, and asset-backed securities) and rates paid on interest-bearing liabilities (deposits, Federal Home Loan Bank advances). Secondary revenue sources include fee income from Treasury Management services and gains on sale of mortgage loans held for sale in the secondary market.

Products and services

Residential mortgage loans (fixed-rate up to 30 years and adjustable-rate with five- to seven-year terms), construction loans (converting to amortizing loans upon project completion), land development loans, checking accounts, money market accounts, statement savings accounts, and Treasury Management services for business depositors.

Customers and end markets

Retail and business deposit customers in the company's Wisconsin market areas. Loan customers include residential homebuyers, real estate developers, and commercial property owners. Business deposit customers are served through a dedicated Treasury Management unit.

Value-chain role

Community savings bank originating and holding loans on balance sheet, with selective loan sales to the secondary market. Deposit-funded balance sheet with Federal Home Loan Bank advances as supplemental funding.

Geographic exposure

Wisconsin, specific market areas not further detailed in the filing excerpts.

Competitors

Commercial banks, Savings institutions, Credit unions, Mortgage brokerage firms, Finance companies, Mutual funds, Insurance companies, Brokerage and investment banking firms

Source: SEC 10-K, filed 2024-03-29

Industry: Savings Institutions, Not Federally Chartered Peers: Catalyst Bancorp Inc FFBW, Inc. /MD/ First Seacoast Bancorp Home Federal Bancorp Inc of Louisiana IF Bancorp, Inc. Skyline Bankshares Inc Rocket Companies Inc TC Bancshares, Inc.