TEB Bancorp, Inc (TBBA) Stock Analysis

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• A 9-signal quantitative MoonshotScore built from filings, insider activity, and market data — computed from the numbers, not from opinion.
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TEB Bancorp, Inc (TBBA) Financial Services Profile

TEB Bancorp, Inc. operates as a regional bank holding company, offering comprehensive financial services including diverse deposit accounts and a robust lending portfolio across southeastern Wisconsin. Established in 1927, it maintains a focused presence in the metropolitan Milwaukee area, serving individuals and businesses through its branch network.

What Is the Investment Thesis for TBBA?

TEB Bancorp, Inc. (TBBA) operates as an established regional bank holding company, leveraging its nearly century-long presence in southeastern Wisconsin to maintain a stable deposit base and diverse lending portfolio. With a market capitalization of $24.1M and a P/E ratio of 35.1, the company demonstrates profitability with a profit margin of 4.3% and a gross margin of 59.1%. Its business model, centered on traditional banking services like deposit accounts and varied lending (mortgages, commercial real estate, consumer, C&I loans), provides a foundation for consistent interest income. The company's beta of 0.32 suggests lower volatility compared to the broader market. Growth catalysts include continued economic development in its core Wisconsin markets, driving demand for both commercial and residential lending, and the potential for strategic expansion of its customer base through its existing branch network and loan production office. However, as an OTC Other listed stock, investors face risks associated with limited liquidity and regulatory oversight, which could impact valuation and trading dynamics. The absence of a dividend yield also means returns are solely dependent on capital appreciation.

Based on FMP financials and quantitative analysis

TBBA Key Highlights

Market Capitalization: $0.02 billion, reflecting its scale as a regional bank holding company within its operating markets.

• P/E Ratio: 35.15, indicating the market's valuation of the company relative to its earnings.
• Profit Margin: 4.3%, demonstrating the company's ability to convert revenue into net income from its financial services operations.
• Gross Margin: 59.1%, highlighting the efficiency of its core banking activities before operating expenses.
• Established Presence: Operating since 1927, TEB Bancorp, Inc. has a long-standing history serving southeastern Wisconsin with a main office, five branch locations, and a dedicated loan production office.

Who Are TBBA's Competitors?

TBBA is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are TBBA's Key Strengths?

Established presence since 1927 in southeastern Wisconsin, fostering strong local relationships.

• Diverse lending portfolio including residential, commercial real estate, consumer, and C&I loans.
• Stable deposit base from checking, savings, IRAs, and CDs.
• Physical branch network across Milwaukee, Racine, and Waukesha Counties, plus a loan production office.
• Profit margin of 4.3% and gross margin of 59.1% indicate operational efficiency.

What Are TBBA's Weaknesses?

Small market capitalization of $24.1M, potentially limiting access to capital.

• OTC Other listing implies limited liquidity and less stringent regulatory oversight compared to major exchanges.
• No dividend yield, which may not appeal to income-focused investors.
• Geographic concentration primarily in southeastern Wisconsin, making it susceptible to regional economic downturns.
• Disclosure status is 'Unknown', potentially impacting investor confidence.

What Could Drive TBBA Stock Higher?

TBBA catalyst: Regional economic growth in southeastern Wisconsin, particularly in Milwaukee, Racine, Waukesha, and Ozaukee Counties, which could increase demand for residential and commercial loans.

• Continued expansion and diversification of its commercial lending portfolio, which may lead to higher interest income and improved profitability.
• Strategic optimization of its securities investment portfolio to enhance yields and contribute to non-interest income, supporting overall financial performance.

What Are the Key Risks for TBBA?

Financial-distress signal — its Altman Z-Score of 0.19 sits in the distress zone (elevated bankruptcy risk).

• Rich valuation — a P/E of 35.1 runs well above the Financial Services sector’s ~18x, leaving little room for a miss.
• Limited liquidity and lower regulatory oversight associated with its OTC Other listing, which could impact investor confidence and the ability to trade shares efficiently.
• Fluctuations in interest rates, which can compress net interest margins if the cost of funds rises faster than loan yields, or if loan demand softens.
• Increased competition within the regional banking sector from larger financial institutions and emerging fintech solutions, potentially impacting market share and profitability.
• Economic downturns or localized recessions in southeastern Wisconsin, leading to higher loan defaults, increased provisions for credit losses, and reduced asset quality.
• The 'Unknown' disclosure status for its OTC listing could deter potential investors seeking higher transparency and comprehensive financial reporting.

What Are the Growth Opportunities for TBBA?

• Expanding Commercial Lending in Southeastern Wisconsin: TEB Bancorp, Inc. has an opportunity to deepen its penetration in the commercial real estate and commercial and industrial (C&I) loan markets within its established operating counties, including Milwaukee, Racine, Waukesha, and Ozaukee. As regional economic activity in southeastern Wisconsin continues, demand for business financing is expected to grow. By leveraging its local market expertise and existing relationships, the bank can strategically target small to medium-sized businesses, offering tailored credit facilities and potentially increasing its interest income. This focus on commercial lending can provide higher yields compared to residential mortgages and diversify its revenue streams, with the regional commercial loan market size being substantial.
• Enhancing Digital Banking Services for Customer Acquisition: The ongoing digital transformation in the financial services sector presents a significant growth opportunity for TEB Bancorp, Inc. By investing in and enhancing its online and mobile banking platforms, the company can improve customer convenience, attract younger demographics, and expand its reach beyond physical branch locations. Offering seamless digital account opening, loan applications, and money management tools can reduce operational costs while broadening its customer base. The market for digital banking users continues to expand, driven by consumer preference for convenient, anytime access to financial services, making this a critical area for future growth and competitive positioning.
• Deepening Community Engagement and Local Market Penetration: With its long history since 1927 and established branch network across Milwaukee, Racine, and Waukesha Counties, TEB Bancorp, Inc. can further capitalize on its community-bank status. By actively participating in local events, sponsoring community initiatives, and fostering strong relationships with local businesses and residents, the bank can enhance its brand loyalty and attract new customers. This strategy reinforces its competitive advantage against larger, more impersonal institutions. A strong community presence can lead to increased deposit gathering and loan origination, particularly in consumer and small business segments, solidifying its position as a trusted financial partner in southeastern Wisconsin.
• Strategic Expansion of Deposit Base through Targeted Offerings: Growing its deposit base is crucial for a regional bank as it provides a stable and often lower-cost source of funding for its lending activities. TEB Bancorp, Inc. can pursue growth by introducing competitive new deposit products, such as high-yield savings accounts or specialized individual retirement accounts, tailored to specific customer segments. Targeted marketing campaigns within its operating counties (Milwaukee, Racine, Waukesha, Ozaukee) can attract new checking and savings account holders. A larger, more diversified deposit base enhances the bank's liquidity, reduces reliance on wholesale funding, and supports further expansion of its lending portfolio, contributing to overall profitability.
• Optimizing Securities Investment Portfolio for Enhanced Returns: The company actively invests in securities, presenting an ongoing opportunity to optimize this portfolio for yield and risk management. By strategically adjusting the composition and duration of its securities holdings in response to market conditions and interest rate forecasts, TEB Bancorp, Inc. can enhance its non-interest income and overall profitability. This involves careful monitoring of economic indicators and market trends to identify opportunities for higher-yielding assets while maintaining appropriate liquidity and risk levels. A well-managed securities portfolio can provide a stable income stream and contribute significantly to the bank's financial performance, complementing its core lending operations.

What Threats Does TBBA Face?

• Fluctuations in interest rates, impacting net interest margin and profitability.
• Increased competition from larger regional banks, national banks, and fintech companies.
• Economic downturns or localized recessions in southeastern Wisconsin leading to higher loan defaults.
• Changes in banking regulations or compliance requirements increasing operational costs.
• Risks associated with the OTC Other listing, including price volatility and difficulty in raising capital.

What Are TBBA's Competitive Advantages?

• Established Regional Presence: Nearly a century of operation since 1927 in southeastern Wisconsin, fostering deep local market knowledge and community trust.
• Diverse Lending Portfolio: Offers a broad range of loan products (residential, commercial real estate, consumer, C&I) catering to varied customer needs and diversifying risk.
• Local Branch Network: Six physical locations and a loan production office provide convenient access and personalized service, strengthening customer relationships.
• Stable Deposit Base: Long-standing community ties contribute to a consistent and cost-effective source of funding through customer deposits.
• Regulatory Compliance and Expertise: Operating as a regulated bank holding company ensures adherence to financial standards and builds confidence among local stakeholders.

What Does TBBA Do?

TEB Bancorp, Inc. functions as the holding company for The Equitable Bank, S.S.B., a financial institution with a deep-rooted history dating back to its establishment in 1927. Headquartered in Wauwatosa, Wisconsin, the company has evolved to become a key provider of financial services primarily within the metropolitan Milwaukee area and the broader southeastern Wisconsin region. Its core offerings cater to both individual and commercial clients, encompassing a wide array of deposit accounts, including checking, savings, and individual retirement accounts, alongside various certificates of deposit. The institution's lending portfolio is notably diverse, designed to meet a broad spectrum of financing needs. This includes traditional mortgages for single-family to multi-family residences, essential commercial real estate financing for local businesses, and a suite of consumer loans such such as home equity lines of credit. Furthermore, TEB Bancorp, Inc. is actively involved in providing construction and land development loans, as well as commercial and industrial credit facilities, supporting regional economic growth. Beyond its direct banking services, the company strategically invests in securities to optimize its financial position. Operations are strategically distributed across its main office and five branch locations, which are situated in Milwaukee, Racine, and Waukesha Counties in Wisconsin. This physical presence is further augmented by a dedicated loan production office located in Ozaukee County, ensuring accessibility and tailored service delivery across its target markets.

What Products and Services Does TBBA Offer?

• Operates as a bank holding company for The Equitable Bank, S.S.B.
• Provides a wide array of financial services to individuals and businesses.
• Offers various deposit accounts including checking, savings, and individual retirement accounts.
• Facilitates certificates of deposit for customers seeking fixed-term savings.
• Originates mortgages for single-family to multi-family residences.
• Provides financing for commercial real estate projects.
• Offers consumer loans, including home equity lines of credit.
• Extends construction and land development loans.
• Provides commercial and industrial credit facilities to businesses.
• Actively invests in securities as part of its financial operations.

How Does TBBA Make Money?

• Generates interest income primarily from its diverse lending portfolio, including mortgages, commercial real estate, consumer, and commercial & industrial loans.
• Attracts and manages customer deposits (checking, savings, IRAs, CDs) which serve as a cost-effective funding source for its lending activities.
• Earns non-interest income through fees for banking services and strategic investments in securities.
• Maintains a network of physical branches and a loan production office to serve its local customer base in southeastern Wisconsin.
• Manages a balanced portfolio of assets and liabilities to optimize net interest margin and overall profitability.

What Industry Does TBBA Operate In?

TEB Bancorp, Inc. operates within the highly competitive Banks - Regional industry, a segment of the broader Financial Services sector. This industry is characterized by institutions providing traditional banking services, including deposit-taking and lending, to local and regional communities. Regional banks like TEB Bancorp, Inc. typically compete based on local market knowledge, personalized customer service, and community engagement, differentiating themselves from larger national banks. The market trends influencing this sector include interest rate fluctuations, which impact net interest margins, and the ongoing shift towards digital banking services, requiring investment in technology. The competitive landscape in southeastern Wisconsin likely includes other regional banks, credit unions, and larger national banking chains. TEB Bancorp, Inc.'s established presence since 1927 and its network of six physical locations plus a loan production office position it as a local incumbent, relying on its deep community ties and diverse lending portfolio to maintain its market share amidst these dynamics.

Who Are TBBA's Key Customers?

• Individuals and families seeking deposit accounts, mortgages, and consumer loans in southeastern Wisconsin.
• Small to medium-sized businesses requiring commercial real estate financing, construction loans, and commercial & industrial credit facilities.
• Local residents in Milwaukee, Racine, Waukesha, and Ozaukee Counties.
• Savers looking for individual retirement accounts and certificates of deposit.
• Property developers and investors seeking construction and land development financing.

TEB Bancorp, Inc's Piotroski F-Score is 4/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 0.19 places it in the distress zone, a signal of elevated financial risk.

TBBA Valuation & Market Position

With a $24.1M market cap, TEB Bancorp, Inc sits in the micro-cap segment of the market. Relative to its peer group, TBBA's quantitative score of 44/100 is below the peer average of 92/100.

Return on equity for TEB Bancorp, Inc stands at 1.7%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 0.1%, showing how much profit it generates from its asset base. TBBA trades at a trailing price-to-earnings ratio of 35.09, above the Financial Services sector average of ~18x. Its free cash flow yield is 0.0%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.00 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 2.4%, the inverse of the P/E and a quick read on earnings relative to price.

Company Profile

TEB Bancorp, Inc operates in the Banks - Regional industry within the Financial Services sector. It is headquartered in Wauwatosa, US. The company is led by CEO Thomas Sattler. TBBA has traded publicly since 2019.

TBBA Financials

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TEB Bancorp, Inc Financial Services Stock: Key Questions Answered

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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