Name: 1895 Bancorp of Wisconsin, Inc. /MD/ Q2 2022 Earnings Call
Start: 2022-08-09T00:00:00.000Z

Executive Summary

Q2 2022 delivered a net loss of $0.24 million and diluted EPS of $(0.04), as noninterest income collapsed on market-driven deferred compensation plan losses and lower mortgage banking activity; NIM expanded modestly on securities deployment strategy .
Net interest income rose year over year (+5.7%) and sequentially (versus Q1), aided by higher interest and dividend income and lower funding costs; NIM was 2.65% (+8 bps YoY) and net interest spread was 2.52% (+8 bps YoY) .
Balance sheet pivot continued: cash fell sharply as excess liquidity was deployed into AFS securities (+$14.2M YTD) and net loans grew (+$25.8M YTD); stockholders’ equity declined on AOCI from rising rates .
No formal guidance or call transcript was available; Street consensus via S&P Global was unavailable at the time of retrieval, limiting beat/miss validation. Near‑term stock narrative hinges on NIM trajectory versus mortgage banking headwinds and AOCI impacts from rates .

What Went Well and What Went Wrong

Net interest income increased to $3.30M (+5.7% YoY), driven by higher interest on taxable securities and lower FHLB interest expense; management reiterated the strategy to deploy excess liquidity into securities to lift earnings .
Net interest margin expanded to 2.65% (vs. 2.57% YoY), and net interest spread to 2.52% (vs. 2.44% YoY), reflecting improved asset yields and disciplined funding .
Net loans held for investment rose to $349.6M (+$25.8M YTD), with asset quality stable (nonaccrual loans 0.23% of total; ALLL/loans 0.89%) .

Noninterest income fell 89.6% YoY to $0.12M, driven by a $0.76M decline in the market value of mutual funds in the deferred compensation plan and lower gain on sale of loans, reflecting softer mortgage activity .
The Company reported a net loss of $0.24M (EPS $(0.04)), compared to a $(0.05)M net loss in Q2 2021 and $(0.06)M in Q1 2022, as noninterest income weakness outweighed NII improvements .
Stockholders’ equity fell to $81.0M (from $90.9M at 12/31/21) primarily due to higher net unrealized losses on AFS securities amid rising rates, pressuring tangible capital metrics despite core banking stability .

Metric ($USD Millions unless noted)	Q2 2021	Q1 2022	Q2 2022
Total Interest & Dividend Income	$3.511	$3.886	$3.667
Total Interest Expense	$0.393	$0.341	$0.370
Net Interest Income	$3.118	$3.545	$3.297
Provision for Loan Losses	$0.000	$0.105	$0.105
Noninterest Income	$1.134	$0.391	$0.118
Noninterest Expense	$4.361	$3.946	$3.684
Pre‑Tax (Loss) Income	$(0.109)	$(0.115)	$(0.374)
Income Tax (Expense)/Benefit	$(0.058)	$(0.060)	$(0.133)
Net (Loss) Income	$(0.051)	$(0.055)	$(0.241)
EPS – Basic ($)	$(0.01)	$(0.01)	$(0.04)
EPS – Diluted ($)	$(0.01)	$(0.01)	$(0.04)
Net Interest Margin (%)	2.57%	2.85%	2.65%
Net Interest Spread (%)	2.44%	2.71%	2.52%

Balance Sheet and KPIs

Metric ($USD Millions unless noted)	12/31/2021	3/31/2022	6/30/2022
Total Assets	$539.6	$546.3	$535.6
Cash & Cash Equivalents	$66.8	$50.6	$20.2
AFS Securities (FV)	$112.4	$132.7	$126.7
Loans Held for Sale	$1.183	$0.944	$0.262
Gross Loans	$326.6	$326.7	$352.8
Allowance for Loan Losses	$2.858	$3.017	$3.132
Net Loans	$323.8	$323.7	$349.6
Deposits	$384.5	$391.0	$383.1
FHLB Advances	$55.4	$58.4	$57.4
Other Liabilities	$8.8	$11.7	$14.2
Total Liabilities	$448.7	$461.1	$454.7
Stockholders’ Equity	$90.9	$85.2	$81.0
Nonaccrual/Total Loans (%)	0.31%	0.29%	0.23%
ALLL/Total Loans (%)	0.88%	0.93%	0.89%

Notes: Management attributes the equity decline primarily to net unrealized losses on AFS securities due to rising market interest rates .

Metric	Period	Previous Guidance	Current Guidance	Change
Formal financial guidance	Q3–FY	None provided	None provided	Maintained (no guidance)

Note: No Q2 2022 earnings call transcript was found; themes derived from press releases.

Topic	Previous Mentions (Q-2: Q4 2021; Q-1: Q1 2022)	Current Period (Q2 2022)	Trend
Liquidity deployment into securities	Emphasized to improve future earnings; AFS +$53.7M in 2021	Continued; NII up, interest income rose on taxable securities	Ongoing execution
Mortgage banking activity/gain on sale	2021: lower originations and gain on sale; 2021 noninterest income down	Net gain on sale of loans down YoY/QoQ; mortgage sales lower	Headwind persists
Deferred comp plan market valuation impact	Noted market value fluctuations affecting results in 2021	$0.76M decline in market value reduced noninterest income; drove lower salaries/benefits	Volatility elevated
NIM/spread trajectory	Q1 2022 NIM 2.85%, spread 2.71%	Q2 2022 NIM 2.65%, spread 2.52%	Moderated sequentially; improved YoY
Asset quality	2021 nonaccrual 0.31% of loans	Nonaccrual down to 0.23%; ALLL/loans ~0.89%	Stable/Improving
Capital/AOCI sensitivity	Equity boosted by 2021 capital raise ; AFS unrealized loss hit Q1 equity	Equity lower on rising-rate AFS losses	Rates pressure capital via OCI

“Interest and dividend income increased due primarily to an increase in interest earned on taxable securities, as a result of our strategy to deploy excess liquidity into securities.”
“Non-interest income decreased $1.0 million… The decrease was primarily the result of a $763,000 decline in the market value of marketable equity securities held in our deferred compensation plan and a $241,000 decrease in net gain on sale of loans.”
“Provision for loan losses… was $105,000… The increase in provision was primarily due to the increase in loans outstanding.”
“Total stockholders’ equity decreased… primarily due to an $11.9 million increase in net unrealized losses on available-for-sale securities… resulting primarily from changes in market interest rates.”

No Q2 2022 earnings call transcript was available; consequently, there were no disclosed analyst Q&A exchanges or guidance clarifications for the quarter [ListDocuments result showed none].

Wall Street consensus (S&P Global) for Q2 2022 EPS and revenue was unavailable at the time of retrieval due to a request limit, so we cannot assess beats/misses versus Street expectations. Coverage for microcap banks may be limited; investors should focus on sequential/YoY trends and NIM/OCI sensitivity until estimates can be sourced [GetEstimates attempt error].

Core spread/NIM improved year over year on higher securities yields and lower funding costs, supporting baseline earnings power despite noninterest income volatility .
Noninterest income is highly sensitive to market valuations of deferred comp plan investments and to mortgage banking volumes; both were significant drags this quarter .
Balance sheet repositioning continues: cash down materially, AFS securities higher YTD, and net loans up 8% since year‑end, indicating risk‑asset deployment and loan growth .
Capital optics pressured by AOCI from rising rates; equity declined ~$9.9M YTD, which may constrain buybacks/dividends near term absent rate stabilization .
Asset quality remains solid (nonaccrual 0.23%; ALLL/loans 0.89%), mitigating credit concerns amid loan growth and providing cushion for continued provisioning .
With no formal guidance and no transcript, trading narrative will pivot around NIM progression, mortgage banking trends, and rate‑driven OCI impacts; watch rates, mortgage volumes, and securities portfolio marks as catalysts .
Near term, a stabilization or rebound in noninterest income (market valuations and gain‑on‑sale) would be the clearest upside lever; conversely, further rate increases pressuring AFS marks could weigh on reported equity and sentiment .