Breaking Down 1895 Bancorp of Wisconsin, Inc. (BCOW) Financial Health: Key Insights for Investors

You're looking at 1895 Bancorp of Wisconsin, Inc. (BCOW) because the stock is trading around $10.76 as of November 2025, and you want to know if that 0.76 times book value is a deep-value opportunity or a classic trap. Honestly, the bank's story is complex right now, a mix of strategic maneuvering and underlying profitability struggles.

The near-term risk is clear: the company is voluntarily delisting from Nasdaq on March 7, 2025, and deregistering with the SEC, which will significantly reduce reporting requirements and liquidity, a major red flag for some investors. Still, the underlying business showed a flicker of life in the second fiscal quarter of 2025, reporting a net income of $0.42 million on $8.02 million in revenue, an EPS of $0.08. That's a decent quarterly snapshot, but it's just one quarter.

Here's the quick math: BCOW's total assets stood at $611.73 million at the end of Q2 2025, but the trailing twelve months (TTM) net income remains a loss of -$3.26 million, translating to a TTM EPS of -$0.60. So, the question isn't just about the Q2 profit; it's whether the management can sustain that positive momentum while navigating a major corporate change and a challenging interest rate environment. We need to map out the real risks and opportunities behind the balance sheet.

Revenue Analysis

You need to know where the money is coming from to judge the stability of 1895 Bancorp of Wisconsin, Inc. (BCOW). The direct takeaway is that, like most community banks, BCOW's revenue is overwhelmingly driven by lending, but recent quarterly results show a strong rebound in top-line growth.

The company's Trailing Twelve Months (TTM) revenue, a solid proxy for the 2025 fiscal year performance, stood at approximately $29 Million as of June 30, 2025. This revenue is generated almost entirely through two primary streams: Net Interest Income (NII) and Non-Interest Income. NII is the core business-the difference between interest earned on loans and securities and the interest paid out on deposits and borrowings. Non-Interest Income comes from things like service fees, ATM charges, and gains or losses on the sale of loans or investments.

Here's the quick math on where BCOW's operating revenue comes from, based on the latest available financial structure, which is typical for a bank holding company like this one:

• Net Interest Income (NII): This is the dominant segment, representing the bulk of the revenue. For a recent TTM period ending September 30, 2024, NII was $12.29 Million.
• Non-Interest Income: This segment is smaller and more volatile, often including gains or losses on the sale of investments. For the same TTM period, Total Non-Interest Income was a net loss of $0.16 Million, indicating a drag on total revenue.

The core business is lending, plain and simple. You can see a deeper dive into who is investing in the bank and why at Exploring 1895 Bancorp of Wisconsin, Inc. (BCOW) Investor Profile: Who's Buying and Why?

Mapping Near-Term Revenue Growth

While the trailing twelve months revenue of $11.83 Million as of September 30, 2024, reflected a year-over-year decline of -11.03%, you need to look at the recent trend for a clear picture. The good news is that the company is showing a significant near-term turnaround, suggesting the interest rate environment might be starting to favor their asset-liability structure.

For the third quarter of 2025 (Q3 2025), 1895 Bancorp of Wisconsin, Inc. reported quarterly revenue of $4.67 Million. Crucially, this figure represents a year-over-year revenue growth rate of +27.75%. That's a defintely strong jump. This suggests that their loan portfolio is repricing higher, or they are managing their interest expense on deposits more effectively, which directly boosts the Net Interest Income component.

What this estimate hides, however, is the ongoing pressure from Non-Interest Income, which has historically been volatile due to fluctuations in mortgage banking and investment sales. The key action for you is to monitor the NII margin in the next few quarters; if that +27.75% growth rate holds, the bank is on a much better footing.

Profitability Metrics

You're looking for a clear picture of 1895 Bancorp of Wisconsin, Inc.'s (BCOW) financial health, and honestly, the profitability metrics for the trailing twelve months (TTM) leading into late 2025 show significant challenges. The core takeaway is simple: the bank is losing money, and its operational efficiency is a serious concern.

For a bank, the closest analog to a traditional company's Gross Profit is the Net Interest Income (NII), which is the revenue from lending activities minus the cost of funding deposits and borrowings. This is where 1895 Bancorp of Wisconsin, Inc. generates its primary revenue. The TTM revenue, which includes NII and non-interest income, stands at approximately $13.2 million.

The industry benchmark, the Net Interest Margin (NIM), for community banks averaged 3.46% in the first quarter of 2025. A healthy NIM is essential for any community bank, but BCOW's overall revenue has declined by 11% over the past year, which is a clear red flag on its core lending profitability trend.

Operating Efficiency and Margin

Operational efficiency-how well a bank controls its costs-is measured by the Efficiency Ratio (Non-Interest Expense as a percentage of Net Interest Income plus Non-Interest Income). The industry average for community banks in Q1 2025 was a solid 56.2%. This means the average bank spends about 56 cents to generate a dollar of operating revenue.

1895 Bancorp of Wisconsin, Inc. has a serious cost management issue. For example, Salaries and Employee Benefits alone consumed $9.01 million of the bank's revenue in the TTM period ending September 2024. When you map out the total operating expenses against the total revenue, the strain on the bank's operating profit (or pre-tax, pre-provision income, which is the bank's true operational profit) is immense. The cost structure is simply too heavy for the revenue base.

Here's the quick math on the ultimate bottom line:

• Net Income (TTM): -$3.3 million
• Total Revenue (TTM): $13.2 million
• Net Profit Margin (TTM): -25.0%

Net Profit and Industry Comparison

The most critical metric is the Net Profit Margin, which for 1895 Bancorp of Wisconsin, Inc. sits at a loss of -25.0% for the TTM period. This means for every dollar of revenue the bank brings in, it is losing 25 cents. This negative profitability is the single biggest risk factor you face as an investor right now. The US Banks industry, in contrast, returned 11% over the past year, which BCOW significantly underperformed.

This negative trend is compounded by a few key factors:

• Revenue Contraction: Total revenue has been in decline, falling 11% year-over-year.
• Negative Net Income: The bank reported a Net Loss of -$3.3 million.
• Underperformance: The bank's Return on Equity (ROE) is only 0.31%, which is far below what any investor should accept. The industry is profitable; BCOW is not.

What this estimate hides is the impact of the voluntary delisting from Nasdaq in March 2025, which reduces regulatory costs but also limits public scrutiny and liquidity. Still, the numbers are the numbers. You can dig deeper into the ownership structure and market sentiment in Exploring 1895 Bancorp of Wisconsin, Inc. (BCOW) Investor Profile: Who's Buying and Why?

The table below summarizes the critical profitability metrics based on the latest available 2025-proximate data:

Debt vs. Equity Structure

You need to know how 1895 Bancorp of Wisconsin, Inc. (BCOW) funds its operations, and the quick takeaway is that while its regulatory capital is sound, its debt-to-equity ratio is currently elevated compared to its peers, signaling a higher reliance on non-equity funding. For a bank, the funding structure is defintely unique.

As of the most recent data for 2025, 1895 Bancorp of Wisconsin, Inc. (BCOW) reports total liabilities of approximately $546.41 million, against total equity of about $71.03 million. Here's the quick math: the bulk of a bank's liabilities is customer deposits, which are technically debt, but they are a stable, low-cost funding source. The company's overall funding mix shows a significant reliance on these liabilities to fuel its loan portfolio.

The company's Debt-to-Equity (D/E) ratio, which typically uses interest-bearing debt like Federal Home Loan Bank (FHLB) advances and subordinated debt, is a key metric. As of November 2025, the D/E ratio sits at about 1.04. This is a critical figure because the industry average for US Regional Banks is much lower, around 0.5.

• BCOW D/E Ratio (Nov 2025): 1.04
• Regional Bank Industry Average D/E: 0.5
• Actionable Insight: BCOW is carrying roughly twice the debt per dollar of equity compared to its average peer.

This higher ratio suggests 1895 Bancorp of Wisconsin, Inc. (BCOW) is using more debt financing (borrowings beyond deposits) to drive growth than its competitors. Still, you should look at the trend; the D/E ratio was recently at 1.73 for the quarter ending June 30, 2025, so the latest figure of 1.04 shows some improvement or a shift in the balance sheet composition.

In terms of recent activity, the most significant financial event isn't a debt issuance, but a fundamental shift in its public status. In March 2025, the company announced it would voluntarily delist from Nasdaq and deregister with the SEC. This move is coupled with the engagement of a financial advisor to explore strategic alternatives, which could mean a sale or business combination. This signals a potential shift away from public equity funding and towards a strategic exit or recapitalization, which will dramatically reshape the debt and equity structure in the near future.

The company balances its funding by relying heavily on customer deposits, which are its primary liability, and supplementing with borrowings (the 'debt' portion of the D/E ratio) and its relatively stable equity base. The current focus is less on organic debt/equity balance and more on a strategic transaction to maximize shareholder value. For a deeper look at the risks and opportunities this presents, you can check out the full analysis at Breaking Down 1895 Bancorp of Wisconsin, Inc. (BCOW) Financial Health: Key Insights for Investors.

Liquidity and Solvency

When you're evaluating a financial institution like 1895 Bancorp of Wisconsin, Inc. (BCOW), you need to look past the standard industrial metrics. Liquidity-a company's ability to meet its short-term obligations-is paramount for a bank, but it's measured differently. We focus on the quality of their liquid assets relative to deposits and short-term debt.

Assessing 1895 Bancorp of Wisconsin, Inc. (BCOW)'s Liquidity Positions

For the second quarter of 2025, BCOW's liquidity position shows a positive, albeit tight, relationship between current assets and liabilities. The traditional Current Ratio (Current Assets / Current Liabilities) for BCOW stood at approximately 1.12 as of June 30, 2025, derived from current assets of $469.83 million and current liabilities of $419.29 million. This means the bank has about $1.12 in short-term assets for every dollar of short-term debt, which is generally acceptable for a bank due to the nature of their assets (loans being less 'current' than inventory).

The Working Capital (Current Assets - Current Liabilities) for BCOW was a positive $50.54 million in the same period. This positive working capital is a good sign, showing a buffer to manage short-term operational needs. However, the Quick Ratio (or 'acid-test' ratio), which strips out less-liquid assets, is less useful here because a bank's primary asset-loans-is inherently illiquid over the very short term, and their primary liability-deposits-is highly liquid.

• Current Ratio (Q2 2025): 1.12
• Working Capital (Q2 2025): $50.54 million
• Liquidity strength comes from cash and high-quality securities, not inventory.

Cash Flow Statements Overview: Trends and Concerns

The real story lies in the cash flow trends, particularly after BCOW's voluntary delisting from Nasdaq in March 2025, which reduced their public reporting frequency. A quick look at the change in cash and equivalents gives us a strong near-term signal. The net change in cash and cash equivalents, including federal funds sold, for the second quarter of 2025 was a positive $12.29 million (moving from $11.44 million at the end of Q1 2025 to $23.73 million at the end of Q2 2025). This shows a defintely improving cash position in the first half of the year.

While the full breakdown isn't publicly available in an SEC filing format anymore, the overall cash flow picture suggests the bank is generating or attracting more cash than it is spending or lending out in the short term. This cash generation is critical for a community bank in a rising-rate environment, as it provides the necessary funds to manage deposit outflows or capitalize on new lending opportunities without relying on expensive wholesale funding.

Near-Term Liquidity Strengths and Opportunities

The main strength for BCOW's liquidity is the $23.73 million in cash, cash equivalents, and federal funds sold as of the end of Q2 2025. This is the ultimate buffer. The opportunity here is to efficiently deploy this liquidity into higher-yielding loans or securities, but that must be balanced against the risk of rising deposit costs. The biggest potential liquidity concern is the bank's reliance on deposits, which are highly rate-sensitive. Keep an eye on the cost of deposits in the next earnings release. For a deeper dive into who is investing in BCOW and why, you should read Exploring 1895 Bancorp of Wisconsin, Inc. (BCOW) Investor Profile: Who's Buying and Why?

Valuation Analysis

When you look at 1895 Bancorp of Wisconsin, Inc. (BCOW), the key question is always: are you paying too much for the business? Based on the latest fiscal year 2025 data, the stock appears undervalued on a book value basis, but the negative earnings tell a more cautious story. The closing price as of mid-November 2025 was around $10.76 a share.

Is 1895 Bancorp of Wisconsin, Inc. Overvalued or Undervalued?

For a bank, Price-to-Book (P/B) is often the most telling metric. BCOW's P/B ratio is currently at a low 0.77. This means you are buying the company for 77 cents for every dollar of its net assets (book value), which typically suggests an undervalued stock. However, this discount is a major red flag because it often points to deeper issues with profitability or asset quality that the market is pricing in. You don't get a discount like that for no reason, defintely not in a stable market.

The Price-to-Earnings (P/E) ratio confirms the profitability concern. The company has a negative P/E of -17.93, which simply means 1895 Bancorp of Wisconsin, Inc. is currently operating at a loss. A negative P/E makes the ratio meaningless for valuation comparison, but it clearly signals that the company is not generating net income for its shareholders right now. The trailing 12-month P/E was also reported as high as 67.25, further underscoring the volatility and lack of consistent earnings.

• P/E Ratio: -17.93 (Indicates a net loss).
• P/B Ratio: 0.77 (Suggests undervaluation relative to assets).

Enterprise Value and Analyst Sentiment

The Enterprise Value (EV) for BCOW is approximately $172.90 million as of November 2025 (TTM). The Enterprise Value-to-EBITDA (EV/EBITDA) ratio, a common metric for non-financial companies, is less useful here. Since BCOW is a bank, its core business involves interest expense, making the EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) metric less relevant for peer comparison; interest is an operating cost, not a financing one. So, we rely more on P/B.

Looking at the stock's performance, the price has seen a moderate increase of +7.86% over the last 12 months, trading within a 52-week range of $8.67 to $11.39. Still, the analyst community is cautious. One perspective suggests a Sell rating, while other sources indicate no consensus recommendation, which is common for smaller, illiquid stocks like this. The lack of a strong 'Buy' signal from Wall Street analysts, combined with the negative P/E, tells me the market is waiting for a clear turnaround in profitability.

Here's the quick math on dividends: 1895 Bancorp of Wisconsin, Inc. currently does not pay a dividend, meaning the dividend yield and payout ratio are both 0%. This is a crucial point for income-focused investors-your return will rely entirely on capital appreciation, not quarterly payouts.

Your next step should be to dig into the Breaking Down 1895 Bancorp of Wisconsin, Inc. (BCOW) Financial Health: Key Insights for Investors to understand the core drivers of that negative P/E. That's where the real risk lies.

Risk Factors

You're looking at 1895 Bancorp of Wisconsin, Inc. (BCOW) and trying to map out the real risks, which is smart, because the landscape for this regional bank has changed dramtically in 2025. The core takeaway is that the biggest near-term risks are tied to a major strategic pivot and the resulting loss of public transparency.

In February 2025, the company announced two massive shifts: hiring Keefe, Bruyette & Woods (KBW) to explore strategic alternatives-which could mean a sale or business combination-and the voluntary delisting from Nasdaq. The last day of trading on Nasdaq was March 7, 2025, and the company deregistered with the SEC on March 17, 2025, moving to the OTCQX Market. This is a huge change for investors. You should defintely be aware of the implications.

• Strategic Uncertainty: The KBW review creates a near-term ceiling and floor for the stock, but the outcome is unknown.
• Liquidity and Transparency: Delisting reduces the stock's visibility and liquidity, making it harder to buy or sell shares quickly.
• Profitability Challenges: Weak financial health metrics persist, with a recent GAAP EPS of -$0.04 and revenue of $3.41 million.

Here's the quick math on the financial health: InvestingPro analysis from early 2025 flagged the company for ongoing profitability challenges and weak financial health, plus the lack of dividend payments. This financial pressure is likely what drove the strategic review in the first place. You can see the market's reaction, with the stock trading at $10.76 as of November 14, 2025, reflecting the uncertainty and the delisting. For a deeper dive into who is still holding BCOW shares, check out Exploring 1895 Bancorp of Wisconsin, Inc. (BCOW) Investor Profile: Who's Buying and Why?

The operational and market risks are now magnified by the deregistration. While the company will still provide annual audited financial statements and quarterly information on its website, the regular, standardized filing of Forms 10-K, 10-Q, and 8-K with the SEC is gone. This lack of mandated, frequent disclosure is a risk premium you have to factor into your valuation.

Mitigation and Forward View

The company's primary mitigation strategy is to lean into cost reduction and the strategic review. The board decided that eliminating the significant compliance and accounting expenses associated with SEC reporting and Nasdaq listing was in the best interest of stockholders. That's a clear action to improve the bottom line by cutting overhead, but it sacrifices public market access. The engagement of KBW is the other key mitigation, a clear signal that management is actively trying to 'enhance stockholder value' through a potential transaction.

Still, external risks remain. Like all regional banks, 1895 Bancorp of Wisconsin, Inc. is exposed to changes in the interest rate environment and general economic conditions. A prolonged period of high interest rates could continue to stress the loan portfolio and funding costs, while a recession would increase credit risk. The focus is now on the core banking business, PyraMax Bank, FSB, which will maintain its regulatory filings with the FDIC, giving you some continued insight into its health.

In short, the biggest risk is the uncertainty of the strategic review, but the biggest immediate action is the cost-cutting from deregistration. You need to keep a close eye on any announcements regarding the KBW review. Finance: track BCOW's OTCQX trading volume and price action daily until a strategic decision is announced.

Growth Opportunities

For 1895 Bancorp of Wisconsin, Inc. (BCOW), the future growth prospect isn't about opening new branches or launching a mobile app; it's about a strategic value realization (a potential sale). The company's most significant near-term driver is the ongoing evaluation of strategic alternatives, which could mean a business combination or an outright sale of control. Honestly, for a small-cap community bank, this is often the clearest path to maximizing shareholder returns.

The company hired Keefe, Bruyette & Woods (KBW) as a financial advisor in February 2025 to explore these options. This process is the core of their current strategy to enhance stockholder value, and it completely overshadows any organic growth initiatives. You should view the stock through the lens of a potential acquisition premium, not a multi-year earnings-per-share (EPS) growth story.

The strategic shift became even clearer when 1895 Bancorp of Wisconsin voluntarily delisted from the Nasdaq Stock Market on March 7, 2025, and deregistered with the SEC on March 17, 2025. This move cuts compliance costs, but it also signals that the focus is internal and on the strategic review. The stock now trades on the OTCQX Market under the same 'BCOW' symbol.

• Primary Growth Driver: Strategic sale or merger (M&A).
• Strategic Initiative: KBW engagement to explore control sale.
• Trading Status: Moved from Nasdaq to OTCQX Market in March 2025.

When we look at the financials, the most recent reported figures reflect a business focused on its core market. For the Third Quarter of 2025, 1895 Bancorp of Wisconsin reported a revenue of approximately $4.67 million and earnings per share (EPS) of $0.09. Here's the quick math: the trailing twelve months (TTM) revenue is around $11.83 million, which is a decline of -11.03% year-over-year. This highlights why the strategic review is the main event; organic growth has been challenging in the current rate environment.

The company's competitive advantage is its hyper-local focus. As the holding company for PyraMax Bank, FSB, it operates six full-service banking offices across the Milwaukee metropolitan area in Wisconsin. This deep community presence, established since 1895, provides a stable deposit base and strong local relationships, which are highly valuable to a larger regional bank looking for an easy, low-risk entry or expansion into the Milwaukee market. This is the real asset a buyer is paying for.

To be fair, the lack of SEC reporting post-March 2025 means fewer public disclosures, so you need to rely on the annual audited financial statements and quarterly information provided on their website. The current stock price of $10.76 (as of November 14, 2025) reflects market sentiment that is now heavily weighted toward the outcome of the strategic review. You can dive deeper into who is holding the shares and their motivations by Exploring 1895 Bancorp of Wisconsin, Inc. (BCOW) Investor Profile: Who's Buying and Why?

This is defintely a special situation investment now, not a traditional growth stock.