EWSB Bancorp Reports Q2 Loss, Non-Compliance with Key Capital Ratios Amid Recent Capital Raises
EWSB sits 22% above its 52-week low of $8.45.
Summary
EWSB Bancorp reported a larger Q2 net loss but improved year-to-date results, supported by recent capital raises. However, the bank remains non-compliant with key internal and state capital ratios and faces significant interest rate risk.
Key Events · Financing and Capital Events · EWSB
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Q2 Net Loss Increased, YTD Loss Decreased
The company reported a net loss of $(314,524) for Q2 2026, a larger loss compared to $(278,660) in Q2 2025. However, the year-to-date net loss for H1 2026 was $(679,304), an improvement from $(847,301) in H1 2025.
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Successful Capital Raises Confirmed
EWSB Bancorp confirmed the completion of a $2.6 million common stock offering on June 29, 2026, and an $0.88 million Series A Preferred Stock offering on July 16, 2026. The common stock offering resulted in 25.8% dilution for non-participating shareholders.
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Non-Compliance with Capital Ratios
As of June 30, 2026, the bank's Tier 1 capital ratio of 7.1% was below its Board-designated minimum of 8.0%. Its Wisconsin state net worth ratio of 5.77% was also below the 6.0% minimum requirement, despite meeting federal 'well capitalized' thresholds.
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Significant Interest Rate Risk
The bank's Economic Value of Equity (EVE) sensitivity analysis indicates that a 200 basis point increase or decrease in market interest rates would result in changes outside the limits set by its asset/liability management policy.
Analysis · EWSB · Finance
EWSB Bancorp reported an increased net loss for Q2 2026 compared to the prior year, though its year-to-date net loss decreased. The company successfully completed a $2.6 million common stock offering and an $0.88 million preferred stock offering, which were previously disclosed. Despite these capital raises and improved net interest income, the bank remains non-compliant with its Board-designated Tier 1 capital ratio (7.1% vs 8.0% minimum) and the state-mandated net worth ratio (5.77% vs 6.0% minimum). Additionally, the bank's economic value of equity (EVE) sensitivity to interest rate changes falls outside its internal policy limits, indicating significant unmanaged interest rate risk. These capital and risk management issues highlight ongoing financial fragility despite efforts to improve liquidity.
At the time of this filing, EWSB was trading at $10.29 on OTC in the Finance sector. The 52-week trading range was $8.45 to $11.75. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.