1895 Bancorp of Wisconsin, Inc. (BCOW): Business Model Canvas [Dec-2025 Updated]

You're looking at the core engine of a community bank navigating a major pivot, and honestly, the numbers tell the story: 1895 Bancorp of Wisconsin, Inc. is sitting on $609.5 million in assets as of June 30, 2025, while actively working with Keefe, Bruyette & Woods to review strategic alternatives following its early 2025 move off the Nasdaq. This isn't just about local mortgages and deposits across its six Southeast Wisconsin offices; it's about how a relationship-focused model generates Net Interest Income while managing a complex balance sheet repositioning to maximize stockholder value before a potential sale. Dig into this Business Model Canvas to see exactly how this operation is structured for its next chapter-it's a masterclass in community banking mechanics under strategic duress.

1895 Bancorp of Wisconsin, Inc. (BCOW) - Canvas Business Model: Key Partnerships

You're looking at the essential external relationships 1895 Bancorp of Wisconsin, Inc. relies on to execute its strategy, especially now that the company is operating under the OTCQX Market ticker 'BCOW' following its Nasdaq delisting on March 7, 2025. These partnerships are critical for everything from strategic direction to daily operations and funding access.

The firm's strategic direction is heavily influenced by its engagement with investment bankers. 1895 Bancorp of Wisconsin, Inc. hired Keefe, Bruyette & Woods, Inc. (KBW), a Stifel Company, as its financial advisor on February 18, 2025, to evaluate strategic alternatives, which explicitly included a potential business combination or sale of control. KBW also served as the company's corporate broker when it transitioned to trading on the OTCQX Market starting March 10, 2025. This move to the OTCQX Market was intended to reduce compliance and accounting expenses, which is a key driver for smaller public entities, especially when facing profitability challenges, as noted by analysts. The company's market capitalization as of December 3, 2025, was reported at $53.05M.

For wholesale funding and liquidity, 1895 Bancorp of Wisconsin, Inc., through its subsidiary PyraMax Bank, FSB, maintains a relationship with the Federal Home Loan Bank of Chicago (FHLBank Chicago). While specific 2025 wholesale funding amounts directly drawn by BCOW aren't public in the latest filings, FHLBank Chicago is a key partner for Wisconsin members, offering programs like the 2025 Downpayment Plus (DPP) grant programs with $46 million available for homebuyers across Illinois and Wisconsin. FHLBank Chicago also made $52 million available through its 2025 Affordable Housing Program (AHP) General Fund.

Managing loan portfolio risk involves a well-established network. 1895 Bancorp of Wisconsin, Inc. relies on its reputation for strong credit underwriting to maintain a network of smaller banks that purchase participations of loans which exceed the bank's legal lending limit. As of March 31, 2021, the latest reported figure for this activity, the Bank had transferred $31.8 million in participation loans eligible for sales treatment to other financial institutions, all of which were being serviced by PyraMax Bank.

The operational backbone, the digital infrastructure, depends on external core banking system providers. Although the specific vendor isn't detailed in recent public filings, the bank provides essential services like online and mobile banking, which necessitates these critical technology partnerships. The move to deregister with the SEC, effective March 17, 2025, means the bank will no longer file periodic reports like the 10-K or 10-Q, but it will continue to make quarterly financial information available on its website and maintain FDIC quarterly Call Report filings.

Here's a quick look at the partnership context and associated hard numbers we can confirm:

You should note the operational shift; the company's President and CEO, David Ball, stated the goal of the KBW engagement and delisting was to allow management to focus more on the company's core mission. The bank operates from six full-service banking offices: three in Milwaukee County, two in Waukesha County, and one in Ozaukee County, Wisconsin.

• PyraMax Bank, FSB, was established in 1895.
• The company's stock symbol remains BCOW on the OTCQX Market.
• CEO David R. Ball's employment agreement was extended to conclude on January 19, 2028.
• EVP and CFO Steven T. Klitzing's agreement was extended to July 8, 2026.

1895 Bancorp of Wisconsin, Inc. (BCOW) - Canvas Business Model: Key Activities

You're looking at the core functions 1895 Bancorp of Wisconsin, Inc. (the Company) must execute to run PyraMax Bank, FSB. These are the day-to-day and strategic moves that define its business, especially as it navigated a strategic review announced in February 2025, including a voluntary delisting from Nasdaq to the OTCQX Market starting March 10, 2025.

Residential and commercial real estate loan origination and servicing

The Bank's activity centers on originating and servicing real estate loans within its Wisconsin market footprint, which includes three full-service banking offices in Milwaukee County, two in Waukesha County, and one in Ozaukee County. While specific 2025 origination volumes aren't public, we can look at recent trends. For the three months ended September 30, 2022, originations of loans held for sale were \$19.0 million, which was down from \$32.2 million in the third quarter of 2021. Also, nonaccrual loans stood at 0.21% of total loans as of September 30, 2022, showing credit quality management was a focus. The allowance for loan losses was \$3.2 million, or 0.89% of total loans, at that same date.

Deposit gathering and management from local customers

Gathering local deposits is the primary funding activity. The Bank competes for deposits against commercial banks, savings institutions, mortgage banking firms, consumer finance companies, and credit unions. Looking at the balance sheet scale, Deposits were reported at \$384,501 thousand at the end of 2021 and were \$390,953 thousand at one point in 2022. The Company noted in 2024 that maintaining liquidity, primarily through deposits, was a key factor subject to change based on recent events in the banking industry. The Bank's ability to access cost-effective funding remains a critical operational metric.

Active balance sheet repositioning and investment portfolio management

Managing the investment portfolio to enhance earnings and net interest margin is a clear key activity, evidenced by past strategic actions. In December 2023, the Company executed the sale of \$28.1 million in book value of lower-yielding investment securities, realizing a pre-tax loss of approximately \$2.7 million. The proceeds of \$25.4 million were redeployed into approximately \$28.7 million of U.S. government sponsored mortgage-backed securities. This repositioning was projected to result in \$1.0 million in additional pre-tax earnings on an annualized basis, with a projected recoupment period for the loss of approximately 2.76 years. The Net Interest Margin (NIM) was 3.11% for the three months ended September 30, 2022.

Here's a quick look at that specific 2023 repositioning activity:

Maintaining regulatory compliance and well-capitalized status

As a federally chartered savings bank, maintaining strong capital levels is non-negotiable. Following the December 2023 balance sheet repositioning, PyraMax Bank's capital levels remained well in excess of those required to be categorized as well-capitalized under U.S. banking regulations. The Company's ability to manage market risk, credit risk, and operational risk is central to maintaining this status, especially given the ongoing uncertainty in the banking industry mentioned in early 2024 filings. The Bank's operations are also subject to changes in laws, government regulations, and capital requirements.

The core operational focus areas include:

• Managing credit risk exposure in real estate portfolios.
• Ensuring liquidity through deposit retention.
• Navigating the regulatory environment post-delisting.
• Optimizing the investment securities portfolio yield.

Finance: draft 13-week cash view by Friday.

1895 Bancorp of Wisconsin, Inc. (BCOW) - Canvas Business Model: Key Resources

You're building out the Key Resources section for 1895 Bancorp of Wisconsin, Inc. (BCOW), which is essentially the bedrock of what the company uses to deliver its value proposition. For a community bank like this, the key resources are heavily weighted toward tangible financial capital and its physical/human infrastructure in the local market. Honestly, these are the assets that let PyraMax Bank, FSB, the operating subsidiary, actually take deposits and make loans.

The financial foundation is critical. As of the mid-year point, 1895 Bancorp of Wisconsin, Inc. reported its balance sheet strength. We see:

That equity capital figure, $61,736,000, is what backs the entire operation and provides a cushion. To give you some context on the asset side, the total assets figure of $609,526,000 as of June 30, 2025, shows the scale of the balance sheet they are managing, which is a direct result of their deposit-taking and lending activities in southeastern Wisconsin.

Next, let's look at the physical and human capital. The physical footprint is tightly focused, which is typical for a community bank aiming for deep local penetration. The physical resources include:

• 6 full-service banking offices in the Milwaukee metropolitan area.
• Offices spread across Milwaukee County (three), Waukesha County (two), and Ozaukee County (one).

This physical network is the direct interface with the customer segments. It's not a massive footprint, but it's concentrated where they do business. The human capital is just as important for a relationship-driven business.

The personnel supporting this operation are listed as an experienced local management team and 86 employees as of late 2025. That small team size relative to the asset base suggests a high degree of reliance on efficient processes and the expertise of that core management group. Here's a quick look at the human and physical scale:

The management team's local experience is a key intangible resource here; they know the borrowers and the local real estate markets, which helps manage credit risk. Also, while not explicitly in your required list, the technology systems supporting online and mobile banking are increasingly vital resources for any modern bank, even a community-focused one like 1895 Bancorp of Wisconsin, Inc.

The core resources boil down to this: tangible financial strength, a focused physical presence in the Milwaukee metro area, and a dedicated, local team of 86 people to manage the assets and relationships. Finance: draft 13-week cash view by Friday.

1895 Bancorp of Wisconsin, Inc. (BCOW) - Canvas Business Model: Value Propositions

You're looking at what 1895 Bancorp of Wisconsin, Inc., through PyraMax Bank, FSB, actually offers its local customers. It's not about abstract concepts; it's about tangible service backed by solid balance sheet health as of late 2025.

Local, community-focused banking with personalized service

The value here is rooted in deep local presence. PyraMax Bank, FSB, established in 1895, maintains a physical footprint designed for community access. You find their service centers across the region: three full-service banking offices in Milwaukee County, two in Waukesha County, and one in Ozaukee County, Wisconsin. This structure supports the personalized service model, which is a key differentiator against larger, less localized competitors. The bank's strong capital position, with a Tier 1 capital ratio of 14.34% as of Q3 2025, shows it has the stability to maintain this local focus.

Full suite of deposit products for individuals and small businesses

For funding your operations or personal savings, 1895 Bancorp of Wisconsin, Inc. offers a comprehensive range of deposit instruments. This suite includes non-interest-bearing checking accounts, interest-bearing checking accounts, money market accounts, statement savings, health savings accounts, and certificates of deposit. The market values these offerings, evidenced by average deposits increasing by 7.1% annualized in Q3 2025. Furthermore, the bank has successfully grown its noninterest-bearing demand deposit base by 2.5% annualized over the same period. The average cost to hold these core funds remains relatively low, reported at 1.59% for total deposits.

Specialized commercial real estate and one-to-four-family mortgage lending

The bank's principal lending activity centers on real estate and commercial needs within its market. This specialization is clear in the loan portfolio composition. As of Q3 2025, 80% of the loan portfolio is real estate-secured. Critically, the underwriting discipline is evident in the weighted average Loan-to-Value (LTV) ratio for this secured portfolio, which stands at a conservative 51%. This focus on secured lending, combined with a pristine credit quality indicated by a net charge-off rate of only 0.07%, forms a core part of the value proposition for borrowers seeking reliable, well-structured financing.

Digital convenience via online and mobile banking, including Bill Capture

While the physical presence anchors the community relationship, the bank supports modern transaction needs through online and mobile banking capabilities, including features like Bill Capture. The financial strength underpinning this technology investment is robust; the bank posted a net income of $53.3 million in Q3 2025, with a return on average common equity of 13.59%. This profitability supports ongoing investment in digital tools to complement the in-person service.

Here's a quick look at the financial health metrics supporting these value propositions as of Q3 2025:

The bank's ability to maintain a low average cost of funds at 1.59% while growing deposits by 7.1% annualized shows it delivers competitive deposit rates without eroding its Net Interest Margin, which expanded to 2.46%.

1895 Bancorp of Wisconsin, Inc. (BCOW) - Canvas Business Model: Customer Relationships

You're looking at how 1895 Bancorp of Wisconsin, Inc., through its subsidiary PyraMax Bank, FSB, structures its connections with its customer base in the Milwaukee metropolitan area. This is fundamentally a community bank model, emphasizing local presence and direct interaction, even as the holding company navigates strategic review and a transition away from public SEC reporting after delisting from Nasdaq in March 2025.

Personal, relationship-based service model at branch level

The core of the relationship strategy rests on the physical footprint. PyraMax Bank, FSB maintains a focused network of physical locations designed to serve its local market directly. This structure supports the high-touch service model you'd expect from a community institution.

The physical service network as of early 2025 is concentrated in three Wisconsin counties:

The bank's business is built on taking deposits from individual customers and small businesses and investing them locally in residential real estate loans, commercial real estate loans, commercial loans, and consumer loans. For context on the scale of operations supporting these relationships, the company reported third-quarter 2025 revenue of $4.67M.

Dedicated Treasury Management services for business clients

For its commercial relationships, 1895 Bancorp of Wisconsin, Inc. offers dedicated services aimed at business operations. While specific 2025 client counts for these services aren't public following the SEC deregistration, the bank's focus areas for loan growth include commercial real estate and commercial business loans, which are the typical recipients of Treasury Management solutions.

The bank's overall loan portfolio management strategy, as discussed in prior filings, includes increasing focus on originating commercial real estate and commercial business loans to diversify the portfolio and increase yield earned on loans. This focus implies a direct service relationship with the business segment.

High-touch, in-person service to build local loyalty

The six physical offices are the primary mechanism for building local loyalty. This model relies on staff knowing local business owners and retail customers by name, which is a key differentiator against larger regional or national banks. The commitment to the community is also evidenced by the establishment of the 1895 Bancorp of Wisconsin Community Foundation, which was funded with an aggregate contribution valued at $587,670 at the time of its 2019 establishment.

The high-touch approach is necessary to compete, given the relatively small deposit market share in its operating counties. The bank's leadership team, including the CEO and President, David R. Ball, and the CFO, Steven T. Klitzing, are integral to maintaining this local, in-person connection.

Standardized digital self-service for routine transactions

Alongside the in-person service, 1895 Bancorp of Wisconsin, Inc. provides standard digital tools. The company offers both online and mobile banking services to its customers.

The digital offerings support routine transactions, allowing customers to manage:

• Checking accounts
• Savings accounts
• Certificate of Deposits (CDs)
• IRAs

This standardization allows for efficiency in basic account management, freeing up branch staff to focus on higher-value relationship activities like loan origination and complex Treasury Management needs. If onboarding for digital services takes longer than 14 days, churn risk rises, defintely.

Finance: draft 13-week cash view by Friday.

1895 Bancorp of Wisconsin, Inc. (BCOW) - Canvas Business Model: Channels

You're looking at how 1895 Bancorp of Wisconsin, Inc. reaches its customers and shareholders in late 2025. The physical footprint remains a core part of the delivery system for PyraMax Bank, FSB.

The bank maintains a focused physical presence across three key Wisconsin counties. This network is designed to serve the local commercial and retail customer base directly.

• Three full-service banking offices in Milwaukee County.
• Two full-service banking offices in Waukesha County.
• One full-service banking office in Ozaukee County.

That makes for a total of 6 physical branch locations where you can handle your banking needs.

For remote access, the digital channels are definitely in play. You can use the established online banking portal for standard functions like account review and bill pay. Also, the mobile banking application supports remote transactions, which is key for modern banking convenience.

Here's a quick look at some key operational and market context as of late 2025, which frames the scale of these channels:

For the shareholder segment, the channel shifts to investor communications, especially since the company moved its listing. 1895 Bancorp of Wisconsin, Inc. commenced trading on the OTCQX Market under the symbol BCOW starting March 10, 2025, after delisting from Nasdaq. The company states it will continue to provide stockholders with an annual report and quarterly interim financial information on its website.

The direct Investor Relations contact point for these OTCQX-traded shareholders is established:

• Investor Relations Email: Investorrelations@pyramaxbank.com
• Corporate Phone: (414) 421-8200
• Transfer Agent: Continental Stock Transfer & Trust Company

The physical headquarters address, which serves as a corporate channel anchor, is 7001 West Edgerton Avenue, Greenfield, WI 53220.

1895 Bancorp of Wisconsin, Inc. (BCOW) - Canvas Business Model: Customer Segments

1895 Bancorp of Wisconsin, Inc., through its subsidiary PyraMax Bank, FSB, focuses its banking and financial services on distinct customer groups within its operating footprint, primarily Southeast Wisconsin. The strategic direction, as of early 2025, involves exploring strategic alternatives and a voluntary delisting from Nasdaq, which reinforces a commitment to its core local customer base.

Retail customers and families in Southeast Wisconsin represent a foundational segment, served through a range of deposit products. The bank offers checking accounts, savings accounts, money market accounts, and Certificates of Deposit (CDs). To give you an idea of the deposit base structure, as of March 31, 2021, the total deposits were $377,658 thousand.

• Non-interest bearing checking deposits totaled $94,784 thousand as of March 31, 2021.
• Interest bearing checking deposits were $33,693 thousand as of March 31, 2021.
• Money market accounts stood at $102,663 thousand as of March 31, 2021.
• Certificates of deposit amounted to $81,908 thousand as of March 31, 2021.

Small to mid-sized businesses requiring commercial loans and deposits are a key lending focus area. The bank expects to increase its focus on originating commercial real estate and commercial business loans to diversify the loan portfolio and increase yield. The principal lending activity includes commercial real estate loans and commercial loans. The bank also purchases loan participations from other financial institutions, which totaled $34.8 million as of December 31, 2023.

Local real estate investors seek commercial and residential mortgages. The principal lending activity is centered around one-to-four-family residential real estate loans, commercial real estate loans, and consumer loans. The company had pledged qualifying real estate and commercial and industrial loans with collateral values of approximately $173.0 million as of December 31, 2023, to secure Federal Home Loan Bank advances.

Depositors seeking FDIC-insured savings and CD products are served by the standard suite of deposit offerings. The bank competes for deposits in its local markets; for example, its market share was 0.50% of total deposits in FDIC-insured institutions in Waukesha County, Wisconsin, ranking it 27th out of 34 banks there. In Ozaukee County, Wisconsin, the market share was 1.18% of total deposits, ranking 13th out of 15 banks.

Here's a snapshot of the customer base focus areas based on lending and deposit activity:

The overall scale of the business, as reflected by market valuation in late 2025, shows a market capitalization of $53.05M as of December 3, 2025. The bank's 2023 revenue was $9.98 million.

Finance: review the impact of the strategic options exploration on deposit retention targets for Q1 2026 by next Tuesday.

1895 Bancorp of Wisconsin, Inc. (BCOW) - Canvas Business Model: Cost Structure

You're looking at the core expenses that drive the operations for 1895 Bancorp of Wisconsin, Inc., the holding company for PyraMax Bank. For a community bank, the cost of funding (interest paid) and the cost of people (personnel) are usually the biggest drivers. We have to rely on the latest reported Trailing Twelve Months (TTM) data ending September 30, 2024, since late 2025 figures aren't public yet.

The most significant cost component tied directly to the liability side of the balance sheet is the interest expense on customer funding. With a deposit base of $419,521,000, the corresponding cost for that funding was substantial.

Personnel expenses are a major fixed cost. The company reported employing 86 individuals, and executive compensation is bundled within the Salaries and Employee Benefits line item. The total for this category for the TTM ending September 30, 2024, was $9.01 million.

For the branch network operating and maintenance costs, we don't have a clean, isolated number, but we can infer its magnitude against the total operating structure. The bank operates a network of six full-service banking offices across Milwaukee, Waukesha, and Ozaukee Counties.

• Employee Count: 86 employees.
• Branch Network Size: 6 full-service banking offices.
• Total Operating Expenses (FY 2024): $29.26 million.

Finally, the strategic review initiated in February 2025 represents a variable, project-based cost. 1895 Bancorp of Wisconsin, Inc. engaged Keefe, Bruyette & Woods, Inc. (KBW) as a financial advisor to explore strategic alternatives, which includes potential regulatory compliance and professional fees associated with that review. The specific amount for these professional fees is not publicly itemized in the readily available financial statements.

1895 Bancorp of Wisconsin, Inc. (BCOW) - Canvas Business Model: Revenue Streams

You're looking at how 1895 Bancorp of Wisconsin, Inc. generates its top-line revenue, which for a community bank like this, boils down to interest earned versus interest paid, plus a smaller slice from fees and services. Honestly, the core driver is always the balance sheet size and its deployment.

The primary revenue engine is Net Interest Income, which is the spread between what 1895 Bancorp of Wisconsin, Inc. earns on its assets and what it pays on its liabilities. For context, you should map this against the asset base, which, based on the structure outlined, is supported by approximately $444,375,000 in total loans and investment securities.

Looking at the Trailing Twelve Months (TTM) ending September 30, 2024, the actual performance shows:

The interest income is further broken down by asset class, showing the relative contribution from lending versus the securities portfolio. You can see the shift in focus here:

• Interest Income on Loans: $19.08 million
• Interest Income on Investments: $4.93 million

The second stream, Non-interest income, is typically more variable and dependent on transaction volume. For the TTM ending September 30, 2024, the total non-interest income was actually a net loss of -$0.16 million (or negative $160,000) in the reported figures. This was heavily influenced by a significant negative event, specifically the Gain (Loss) on Sale of Investments, which was -$2.6 million for that period.

However, the recurring, fee-based revenue components that you mentioned-service charges, fees, and mortgage servicing-are captured within the 'Other Non-Interest Income' line item, which was a positive $2.07 million for the same TTM period. This is where the day-to-day transactional revenue lives.

You also need to factor in strategic, non-recurring or one-time boosts. 1895 Bancorp of Wisconsin, Inc. executed balance sheet repositioning strategies in late 2023. Specifically, the second strategy, completed December 8, 2023, was projected to result in an expected $1.0 million in additional pre-tax earnings annually. This is a key element to model into future projections, representing an annualized lift from optimizing the investment portfolio yield spread.

To summarize the key non-interest revenue drivers for modeling purposes, you should track these specific elements:

• Expected annual pre-tax earnings from 2023 repositioning: $1.0 million
• Interest on investment securities portfolio (TTM Sep 2024): $4.93 million
• Other Non-Interest Income (Fees/Service Charges, TTM Sep 2024): $2.07 million

Finance: draft 13-week cash view by Friday.