Systematic Savings Bank : Form 10-Q~Quarterly Report

FEDERAL DEPOSIT INSURANCE CORPORATION

Washington, DC 20429

FORM 10-Q

(Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT

OF 1934

For the quarterly period ended March 31, 2023

OR

• TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from

to

.

FDIC Certificate Number 29143

Systematic Savings Bank

(Exact name of registrant as specified in its charter)

Missouri	44-0456185
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)
318 South Ave
Springfield, Missouri	65806
(Address of principal executive offices)	(Zip Code)

Registrant's telephone number: 417-862-5036

Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class	Trading Symbol	Name of Exchange on which registered
Common Stock, Par Value $0.01 per share	SSSB	OTC Pink Sheets

Indicate by check mark if the registrant is well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☒

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act. Yes

• No ☒

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes ☒No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definitions of "large accelerated filer", "accelerated filer", "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐ Accelerated filer ☐Non-accelerated filer ☐ Smaller reporting company ☒ Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period of complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act. Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

Class	Outstanding as of 04/30/2023
Common Stock, Par Value $0.01 per share	595,125
	1

		SYSTEMATIC SAVINGS BANK
		INDEX
Part I	Financial Information	Page
Item 1.	Financial Statements
	Statements of Financial Condition (unaudited)	3
	Statements of Income (unaudited)	4
	Statements of Comprehensive Income (Loss) (unaudited)	5
	Statements of Stockholders' Equity (unaudited)	5
	Statements of Cash Flows (unaudited)	6
	Condensed Notes to Financial Statements (unaudited)	7
	Item 2. Management's Discussion and Analysis of Financial
	Condition and Results of Operations	24
	Item 3.	Quantitative and Qualitative Disclosures About	33
	Market Risk
	Item 4.	Controls and Procedures	33
Part II	Other Information	34
	Item 1.	Legal Proceedings	34
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	34
	Item 3.	Defaults Upon Senior Securities	34
	Item 4.	Mine Safety Disclosures	34
	Item 5.	Other Information	34
	Item 6.	Exhibits	34
Signatures		35

2

PART I FINANCIAL INFORMATION

Item 1. Financial Statements

Statements Of Financial Condition

March 31, 2023 (unaudited) and December 31, 2022

			3/31/2023	12/31/2022
			(Unaudited)
Assets
Cash and due from banks	$		4,097,958	$	3,320,110
Cash and cash equivalents			4,097,958			3,320,110
Interest-bearing time deposits			590,000			590,000
Available-for-sale securities			6,538,416			6,561,431
Loans receivable, net of allowance for credit losses of $455,000 at March 31, 2023
and net of allowance for loan losses of $418,112 December 31, 2022			46,025,230			44,697,995
Interest receivable			232,340			187,083
Prepaid expenses and other assets			601,602			377,641
Premises and equipment, net			587,467			582,992
		$		58,673,013	$	56,317,252
Liabilities
Deposits		$	40,676,955	$	42,714,845
Advances from borrowers for taxes and insurance			29,764			17,443
Fed Funds Purchased			--			360,000
FHLB Advances			7,846,361			3,161,360
Accrued expenses and other liabilities			157,415			96,926
Total liabilities			48,710,495			46,350,573
Stockholders' Equity
Common Stock, $0.01 par value
Authorized - 10,000,000 shares
Issued and outstanding, 595,125 shares			5,951			5,951
Additional paid in capital			5,068,688			5,068,688
Retained earnings			5,346,412			5,435,301
Accumulated other comprehensive loss			(458,533)			(543,261)
Total Stockholders' Equity			9,962,518			9,966,679
Total Liabilities and Stockholders' Equity		$	58,673,013	$	56,317,252

See Notes to Financial Statements

3

Systematic Savings Bank

Statements Of Income

Three Months Ended March 31, 2023 and 2022 (Unaudited)

			Three Months Ended
		3/31/2023	3/31/2022
Interest Income
Loans, including fees	$	575,209	$	474,162
Investments		61,314			24,585
Deposits with financial institutions
and other		39,472			5,240
			675,995			503,987
Interest Expense
Checking accounts		115,032			46,259
Savings accounts		126			39
Certificate accounts		144,241			54,088
FHLB borrowings		51,148			26
			310,547			100,412
Net Interest Income		365,448			403,575
Provision for Credit or Loan Losses		--			--
Net Interest Income
After Provision for Credit or Loan Losses		365,448			403,575
Noninterest Income		16,233			15,137
Noninterest Expense
Salaries and benefits		183,256			184,315
Net occupancy expense		21,856			23,080
Professional fees		32,900			34,336
Other		137,373			126,428
			375,385			368,159
Net Income before income taxes		6,296			50,553
Provision for income taxes		2,295			1,500
Net Income Available to Stockholders	$	4,001	$	49,053
Net income per share - Basic	$0.01	$0.08

See Notes to Financial Statements

4

Systematic Savings Bank

Statements Of Comprehensive Income (Loss)

Three Months Ended March 31, 2023 and 2022 (Unaudited)

			Three Months Ended
		3/31/2023			3/31/2022
Net Income	$	4,001	$	49,053
Other Comprehensive Income (Loss)
Unrealized holding gains (losses)
on available-for-sale securities		84,728			(129,009)
Other comprehensive income (loss), net of tax		84,728			(129,009)
Comprehensive Income (Loss)	$	88,729	$	(79,956)

Systematic Savings Bank

Statements Of Stockholders' Equity

Three Months Ended March 31, 2023(Unaudited)

																Accumulated Other
							Additional Paid-In							Comprehensive
			Common Stock		Capital		Retained Earnings		Income (Loss)		Total
Balance, January 1, 2023	5,951	5,068,688			5,435,301	(543,261)	9,966,679
Net income	--	--			4,001	--	4,001
Other comprehensive income	--	--			--	84,278	84,278
Impact of ASC 326 adoption		--		--			(92,890)		--		(92,890)
Balance March 31, 2023		5,951		5,068,688			5,346,412		(458,533)		9,962,068
					Systematic Savings Bank
			Statements Of Stockholders' Equity
			Three Months Ended March 31, 2022 (Unaudited)
														Accumulated Other
					Additional Paid-In	Retained			Comprehensive Income
		Common Stock		Capital	Earnings					(Loss)		Total
Balance, January 1, 2022	5,951			5,068,688			5,228,747			13,970			10,317,356
Net income	--			--			49,053			--			49,053
Other comprehensive loss		--			--					--			(129,009)			(129,009)
Balance, March 31, 2022		5,951			5,068,688			5,277,800			(115,039)			10,237,400
See Notes to Financial Statements

5