VWF Bancorp Inc (OTCQX: VWFB) is a bank holding company that operates Van Wert Federal Savings Bank, a community savings institution offering residential and commercial real estate loans, consumer loans, and deposit products. The company earns money through net interest income, the spread between interest collected on loans and investment securities and interest paid on deposits and borrowings. For the year ended June 30, 2024, total interest income on interest-earning assets was $12.0 million against average interest-earning assets of $225.3 million, at a blended yield of 5.34%. Loans averaged $100.3 million at a 4.83% yield and investment securities averaged $113.8 million at a 5.81% yield during FY2024. The bank had $33.1 million in outstanding loan commitments as of June 30, 2024. VWF Bancorp went public via a mutual-to-stock conversion, with its S-1 filed March 11, 2022. As of June 30, 2024, there were 1,914,965 shares of common stock outstanding and 254 stockholders of record. Michael D. Cahill serves as President and CEO, and Richard W. Brackin serves as EVP and CFO. The company has not paid cash dividends.

Revenue model

Net interest income: spread between interest earned on loans (4.83% yield, FY2024), investment securities (5.81% yield, FY2024), and interest-bearing deposits, minus interest paid on demand deposits, savings and money market accounts, certificates of deposit, and borrowings. Net interest income increased by $1.0 million in FY2024 versus FY2023, per the 10-K filed September 27, 2024.

Products and services

Loan products include one-to-four family residential real estate loans, commercial real estate loans, agricultural real estate loans, commercial construction loans (including construction-to-permanent structures), speculative residential construction loans, and consumer loans secured by automobiles, trucks, trailers, and other consumer assets (consumer loans were $955,000, or 0.7% of total loans, as of June 30, 2024). Deposit products include interest-bearing demand accounts, savings and money market accounts, and certificates of deposit (certificates of deposit maturing within one year totaled $46.1 million as of June 30, 2024). Investment securities held as interest-earning assets averaged $113.8 million in FY2024.

Customers and end markets

Retail and commercial borrowers in the Van Wert, Ohio area. End markets include residential homebuyers, commercial real estate operators, agricultural real estate borrowers, contractors, homebuilders, and individual consumers seeking auto and personal asset financing.

Value-chain role

Community savings bank and thrift holding company. Originates, underwrites, and holds loans on balance sheet. Funds loans primarily through retail deposits and Federal Home Loan Bank of Cincinnati advances.

Geographic exposure

Van Wert, Ohio. Community-focused institution serving a local market. No multi-state or international footprint disclosed in the 10-K filed September 27, 2024.

Source: SEC 10-K, filed 2024-09-27

Industry: Savings Institutions, Not Federally Chartered