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 June 30, 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	65806
Springfield, Missouri
(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 07/31/2023
Common Stock, Par Value $0.01 per share	595,125
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		SYSTEMATIC SAVINGS BANK
		INDEX
Part I	Financial Information	Page
Item 1.	Financial Statements
	Statements of Financial Condition (unaudited)	3
	Statements of Income (Loss) (unaudited)	4
	Statements of Comprehensive Income (Loss) (unaudited)	5
	Statements of Stockholders' Equity (unaudited)	5
	Statements of Cash Flows (unaudited)	7
	Condensed Notes to Financial Statements (unaudited)	8
	Item 2. Management's Discussion and Analysis of Financial
	Condition and Results of Operations	25
	Item 3.	Quantitative and Qualitative Disclosures About	35
	Market Risk
	Item 4.	Controls and Procedures	35
Part II	Other Information	36
	Item 1.	Legal Proceedings	36
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	36
	Item 3.	Defaults Upon Senior Securities	36
	Item 4.	Mine Safety Disclosures	36
	Item 5.	Other Information	36
	Item 6.	Exhibits	36
Signatures		37

2

PART I FINANCIAL INFORMATION

Item 1. Financial Statements

Statements Of Financial Condition

June 30, 2023 (unaudited) and December 31, 2022

			6/30/2023			12/31/2022
		(Unaudited)
Assets
Cash and due from banks	$	3,928,028	$	3,320,110
Fed Funds Sold		783,000			--
Cash and cash equivalents		4,711,028			3,320,110
Interest-bearing time deposits		590,000			590,000
Available-for-sale securities		6,251,386			6,561,431
Loans receivable, net of allowance for credit losses of $465,000 at June 30,
2023 and net of allowance for loan losses of $418,112 December 31, 2022		48,926,362			44,697,995
Interest receivable		213,776			187,083
Prepaid expenses and other assets		517,807			377,641
Premises and equipment, net		580,755			582,992
		$	61,791,094	$	56,317,252
Liabilities
Deposits	$	44,954,770	$	42,714,845
Advances from borrowers for taxes and insurance		44,052			17,443
Fed Funds Purchased		500			360,000
FHLB Advances		6,892,360			3,161,360
Accrued expenses and other liabilities		126,708			96,926
Total liabilities		52,018,390			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		5,363,406			5,435,301
Accumulated other comprehensive loss		(645,361)			(543,261)
Total Stockholders' Equity		9,772,704			9,966,679
Total Liabilities and Stockholders' Equity	$	61,791,094	$	56,317,252

See Notes to Financial Statements

3

Systematic Bank

Statements Of Income (Loss)

Three Months and Six Months Ended June 30, 2023 and 2022 (Unaudited)

		Three Months Ended			Six Months ended
	6/30/2023	6/30/2022			6/30/2023			6/30/2022
Interest Income
Loans, including fees	$	645,115	$	487,699	$	1,220,324	$	961,861
Investments		65,305			33,985			126,619			58,570
Deposits with financial institutions		83,025			5,058			122,497			10,298
and other
Interest Expense		793,445			526,742			1,469,440			1,030,729
Checking accounts		138,946			49,397			253,978			95,656
Savings accounts		86			49			212			88
Certificate accounts		187,975			54,149			332,216			108,237
FHLB borrowings		94,845			236			145,993			262
		421,852			103,831			732,399			204,243
Net Interest Income		371,593			422,911			737,041			826,486
Provision for Credit or Loan Losses		--			--			--			--
Net Interest Income
After Provision for Credit or Loan
Losses		371,593			422,911			737,041			826,486
Noninterest Income		16,676			13,225			32,909			28,362
Noninterest Expense
Salaries and benefits		183,495			183,949			366,751			368,264
Net occupancy expense		22,038			21,318			43,894			44,398
Professional fees		37,265			36,310			70,165			68,646
Other		150,835			120,208			288,208			246,636
		393,633			359,785			769,018			727,944
Net Income (Loss) Before Income Taxes		(5,364)			76,351			932			126,904
Provision (Benefit) for income taxes		(2,358)			2,275			(63)			3,775
Net Income (Loss)	$	(3,006)	$	74,076	$	995	$	123,129
Net income (Loss) per share - Basic	$	(0.01)		$	0.12		$	0.00		$	0.21

See Notes to Financial Statements

4

Systematic Bank

Statements Of Comprehensive Income (Loss)

Three Months and Six Months Ended June 30, 2023 and 2022 (Unaudited)

								Three Months Ended					Six Months Ended
Net Income (Loss)						6/30/2023					6/30/2022						6/30/2023			6/30/2022
					$	(3,006)				$	74,076					$995			$	123,129
Other Comprehensive (Loss)
Unrealized holding (losses)
on available-for-sale securities					(186,808)					(161,889)					(102,080)					(290,897)
Other comprehensive (loss), net of tax					(186,808)					(161,889)					(102,080)					(290,897)
Comprehensive (loss)						$	(186,814)				$	(87,813)					(101,085)			$	(167,768)
							Systematic Savings Bank
				Statements Of Stockholders' Equity
			Three Months and Six Months Ended June 30, 2023 (Unaudited)
																			Accumulated
						Additional											Other
			Common				Paid-In				Retained			Comprehensive
Balance, January 1,		Stock				Capital				Earnings				Income (Loss)			Total
2023		$	5,951	$	5,068,688		$		5,435,301		$	(543,261)				$ 9,966,679
Net income		--					--						4,001						--				4,001
Other comprehensive
income		--					--						--						84,728				84,728
Impact of ASC 326
adoption		--					--						(92,890)						--					(92,890)
Balance, March 31, 2023		5,951				5,068,688					5,366,412						(458,533)				9,962,518
Net Loss													(3,006)											(3,006)
Other comprehensive loss		--					--						--						(186,808)				(186,808)
Balance, June 30, 2023		$	5,951		$	5,068,688		$	5,363,406			$	(645,361)			$	9,772,704

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