Waukesha-based First Federal Bank of Wisconsin has completed its previously announced reorganization, bringing in $29.5 million in the stock offering for its new holding company, FFBW Inc.
FFBW Inc. sold 2,950,625 shares of common stock, or 45 percent of its outstanding shares, at $10 per share. The employee stock ownership plan bought 259,210 of those shares and the company contributed 25,000 shares to Brookfield-based FFBW Community Foundation, which was formed Oct. 6. The remainder of the shares have been issued to FFBW MHC, its federally chartered mutual holding company. First Federal is now a wholly-owned subsidiary of FFBW Inc.
Shares of FFBW Inc. began trading today on the Nasdaq Capital Market under the symbol FFBW, opening at $12.21.
“We want to thank our customers and our employees for their support and vote of confidence in the future of the bank,” said Edward Schaefer, president and chief executive officer of FFBW. “Our customers, employees and community have all been the key to First Federal’s enduring history of success, and the bank and the company will remain committed to their customers, employees, community and shareholders going forward.”
Schaefer joined First Federal last year, succeeding Gary Riley. The bank, previously headquartered in Brookfield, this year has adjusted its office footprint, eliminating an administrative office at 134 Wisconsin Ave. in Waukesha and consolidating its operations at the now-headquarters office in Waukesha. FFBW also has three branch offices, located in Waukesha, Brookfield and Milwaukee’s Bay View neighborhood.
First Federal’s net income was $171 million in 2016, down from $978 million in 2015, driven by a higher provision for loan losses in 2016. The lower profit did not factor into First Federal’s decision to consolidate its operations, Schaefer said in May. The company had 39 full-time employees as of June 30.
