Financial Position - Total assets increased by $6.6 million, or 1.2%, to $564.2 million at March 31, 2024, from $557.6 million at December 31, 2023[89] - Cash and cash equivalents rose by $9.7 million, or 72.9%, to $23.0 million at March 31, 2024, primarily due to a $9.0 million increase in FHLB advances[89] - Available-for-sale securities decreased by $3.2 million, or 2.9%, to $106.4 million at March 31, 2024, attributed to maturities and a $750,000 increase in net unrealized loss[89] - Loans held for investment decreased by $1.5 million, or 0.4%, to $397.1 million at March 31, 2024, mainly due to a $4.5 million decrease in commercial loans[91] - Deposits decreased by $4.4 million, or 1.1%, to $399.3 million at March 31, 2024, with significant declines in noninterest-bearing checking accounts and money market accounts[92] - FHLB advances increased by $9.0 million, or 12.7%, to $80.0 million at March 31, 2024, to fund anticipated cash outflows[92] - Total stockholders' equity decreased by $1.3 million to $71.5 million at March 31, 2024, primarily due to an other comprehensive loss of $592,000[92] Income and Expenses - Net interest income for the three months ended March 31, 2024, was $3.063 million, compared to $3.235 million for the same period in 2023[93] - The interest rate spread decreased to 1.73% for the three months ended March 31, 2024, down from 2.23% in the same period of 2023[93] - The company recorded a net loss of $306,000 for Q1 2024, an improvement from a net loss of $361,000 in Q1 2023, primarily due to a $144,000 decrease in noninterest expenses and a $134,000 increase in noninterest income[96] - Interest and dividend income increased by $1.3 million, or 27.7%, to $6.0 million in Q1 2024, driven by a $1.0 million increase in interest and fees on loans and a $438,000 increase in interest income on securities[96] - Interest expense surged by $1.5 million, or 100.0%, to $3.0 million in Q1 2024, mainly due to a $1.4 million increase in interest expense on deposits[97] - Net interest income decreased by $172,000, or 5.3%, to $3.1 million in Q1 2024, attributed to a $1.5 million rise in interest expense[97] - Noninterest income rose by $134,000 to $904,000 in Q1 2024, primarily due to a $117,000 increase in unrealized gains on marketable equity securities[97] - Noninterest expense decreased by $144,000, or 3.2%, to $4.3 million in Q1 2024, largely due to a $328,000 reduction in salaries and benefits expense[97] - The provision for credit losses remained stable at $75,000 for both Q1 2024 and Q1 2023, reflecting an increase in unfunded loan commitments[97] Capital and Liquidity - As of March 31, 2024, the company had a Tier 1 leverage capital level of $63.1 million, representing 11.2% of adjusted total assets, exceeding the well-capitalized requirement of 5.0%[104] - The total risk-based capital was $67.8 million, or 15.9% of risk-weighted assets, above the well-capitalized requirement of 10.0%[104] - The company experienced a net cash used in operating activities of $398,000 for the three months ended March 31, 2024, compared to $1.1 million for the same period in 2023[103] - Net cash provided by financing activities was $6.7 million for the three months ended March 31, 2024, compared to $7.6 million for the same period in 2023[103] - The company had $80.0 million outstanding in advances from the FHLB as of March 31, 2024[102] - At March 31, 2024, the company had $93.2 million in additional borrowing capacity at the Federal Home Loan Bank of Chicago[102] - The company had a $12.0 million federal funds line of credit with BMO Harris Bank, none of which was drawn as of March 31, 2024[102] - The company had not drawn on the $11.5 million line of credit at the Federal Reserve as of March 31, 2024[102] - The company is committed to maintaining a strong liquidity position and anticipates sufficient funds to meet current funding commitments[102] Interest Rate Sensitivity - As of March 31, 2024, a 100-basis point increase in interest rates would result in a 1.28% decrease in the company's economic value of equity (EVE)[99] - The company reported a 2.15% decrease in EVE with a 200-basis point decrease in interest rates, while a 100-basis point increase would result in a 1.28% decrease in EVE[102] - The company's net interest rate spread decreased by 50 basis points to 1.73% in Q1 2024, while the net interest margin decreased by 27 basis points to 2.37%[97]
1895 Bancorp of Wisconsin(BCOW) - 2024 Q1 - Quarterly Report