EWSB Bancorp, Inc. - Annual Investor Guide

I’ve put together this guide to help you understand how EWSB Bancorp performed this year. My goal is to explain the financial details in plain English so you can see exactly what is happening with the company.

1. What does this company do?

EWSB Bancorp is the parent company of East Wisconsin Savings Bank. Think of them as a traditional, neighborhood bank. They take deposits from folks in Outagamie County, Wisconsin, and use that money to fund loans. Most of these are home mortgages, but they also finance boats, campers, construction projects, and small businesses. With just one office in Kaukauna, Wisconsin, they rely on community relationships rather than a large geographic footprint.

2. A Big Year: The IPO

The biggest news is that EWSB became a publicly traded company in September 2024. They sold 752,500 shares at $10.00 each, raising $7.5 million. After paying $1.1 million in expenses, the bank kept $6.4 million. This cash acts as a safety net, helping the bank meet regulatory requirements and providing the cushion needed to grow its lending business.

3. Financial Snapshot (As of Dec 31, 2025)

The bank is currently operating with:

• Total Assets: $271.0 million.
• Total Deposits: $217.3 million.
• Stockholders' Equity: $13.2 million.
• Profit: The bank earned $1.1 million in profit for the year, representing a return on assets of about 0.41%.

4. How the Loan Portfolio Looks

The bank focuses heavily on home loans, which make up 68% of its $218.5 million loan portfolio. They also have a niche in boat and RV loans, which make up 16% of the portfolio and generally pay higher interest than home loans.

To manage risk, they are careful about lending:

• No "Risky" Loans: They avoid subprime loans. The average credit score for their home borrowers is high, typically over 740.
• Adjustable Rates: About 47% of their home loans have adjustable rates. This protects the bank’s profit margins if interest rates change, though it means borrower payments could rise if rates go up.
• Quality Control: They are conservative with commercial loans, which account for 12% of the portfolio. They limit risk by buying pieces of professional and healthcare loans from a national firm that uses strict vetting standards.

5. Major Wins and Challenges

• Competition: They are a small player, holding about 5.2% of the local deposit market. They face tough competition from national banks and apps that offer higher interest rates to attract customers.
• Regulatory Oversight: The bank is under a "Memorandum of Understanding" with state and federal regulators. This is an informal agreement requiring the bank to improve its internal audits, board oversight, and capital planning.
• Clean Slate: At the end of 2025, the bank had zero foreclosed properties. This shows that borrowers are keeping up with their payments.

6. Key Risks to Watch

• Regulatory Pressure: If the bank fails to meet the requirements of its agreement with regulators, it could face stricter rules, such as limits on dividends or growth.
• Loan Delinquencies: Some loans are 30–90+ days late. As of late 2025, about 0.9% of total loans were past due. Investors should watch these to ensure they don't become losses.
• Concentration: Because they are a small, local bank, their success depends entirely on the health of the Outagamie County economy.

7. Future Outlook

The bank is in a steady phase. They are using their new cash to grow their loan portfolio while remaining selective to keep their capital ratios strong. They aren't trying to scale nationally. Instead, they are balancing their mortgage holdings with higher-yielding loans. Management’s main goal is to satisfy regulators and return to standard standing while keeping the balance sheet safe and conservative.

Investor Takeaway: When considering an investment in EWSB, weigh the stability of their conservative lending practices against the regulatory oversight they are currently navigating. Their success is tied closely to the local economy, making this a play on the long-term health of the Kaukauna area.