BELOIT, WI / ACCESSWIRE / April 8, 2021 / Blackhawk Bancorp, Inc. (OTCQX:BHWB) reported net income of $3.43 million for the quarter ended March 31, 2021, a 2% increase over the $3.35 million earned the previous quarter, and a 65% increase compared to the $2.07 million earned the first quarter of 2020. Fully diluted earnings per share (EPS) for the quarter was $1.02, an increase of $0.02 as compared to $1.00 for the quarter ended December 31, 2020 and an increase of $0.39, or 62%, as compared to $0.63 reported for the quarter ended March 31, 2020. The first quarter 2021 results produced a Return on Average Equity (ROAE) of 12.44% and a Return on Average Assets (ROAA) of 1.16%.
The increase in earnings compared to the most recent quarter included a $1.22 million decrease in the provision for loan losses and a $0.28 million increase in net interest income. These earnings gains were offset by a $0.66 million decrease in revenue from the sale and servicing of mortgage loans, a $0.43 million decrease in net gains from the sale of securities and a $0.39 million increase in operating expenses.
The increase in net income for the first quarter of 2021 compared to the first quarter of the prior year reflects a $1.1 million increase in net interest income and a $1.7 million increase in revenue from the sale and servicing of mortgage loans. These increases were partially offset by a $1.22 million increase in operating expenses.
"We are extremely pleased with our first quarter results" said Todd James, the Company's Chairman and CEO. "While the uncertain path and speed of the post-pandemic recovery creates elevated risk, credit quality is holding up well and supports the reduction in provision expense. In addition, despite the decrease from the fourth quarter of 2020, mortgage banking activity remained strong, and exceeded our expectations for the first quarter."
Total assets of the company increased by $66 million, or 6%, to $1.2 billion as of March 31, 2021 compared to $1.1 billion as of December 31, 2020. Total gross loans increased by $32.4 million, or 5%, and total investment securities increased $27.1 million, or 8%, during the first three months of 2021. Total Deposits increased by $81.0 million, or 8%, to $1.1 billion compared to $987.3 million at the end of 2020.
Net Interest Income
Net interest income for the first quarter of 2021 totaled $9.72 million, an increase of $0.28 million, or 3%, compared to the fourth quarter of 2020, and up $1.10 million, or 13%, compared to the first quarter of last year. The net interest margin was 3.52% for the first quarter of 2021 as compared to 3.63% for the quarter ended December 31, 2020, and 3.83% for the first quarter of the prior year.
The increase in net interest income compared to the first quarter of last year was due to an increase in average total earning assets, which increased by $220.8 million, or 24%, to $1.13 billion compared to $911.9 million the first quarter of 2020. The increase included a $56.9 million increase in average total loans, a $127.5 million increase in average investment securities and a $36.4 increase in interest bearing deposits at other financial institutions. The $56.9 million increase in average total loans includes $85.8 million in average Paycheck Protection Program (PPP) loans. During the first quarter of 2021 $0.79 million of PPP fees were recognized, resulting in a 4.77% annualized yield on average PPP loans for three months ended March 31, 2021. The PPP, pandemic-related stimulus payments and an overall influx of deposits drove a $204.5 million, or 24%, increase in total average deposits for the first quarter of 2021 compared to the first quarter of last year. With the majority of this liquidity being deployed in the investment securities portfolio or held in interest-bearing deposit accounts at other financial institutions, the net interest margin dropped thirty-one basis points to 3.52% compared to 3.83% for the first quarter of the prior year. Further decreases in the net interest margin were mitigated by Blackhawk's ability to react quickly, lowering overall cost of interest-bearing liabilities by fifty basis points for the first quarter compared to the first quarter of last year.
Provision for Loan Losses and Asset Quality
The provision for loan losses for the quarter ended March 31, 2021 totaled $0.50 million, as compared to $1.72 million for the quarter ended December 31, 2020, and $0.77 million for the first quarter of 2020. The decreased provision reflects an improved outlook, especially as it relates to pandemic related losses. Net charge-offs for the first quarter equaled $0.15 million.
Total nonperforming assets, which include troubled debt restructures performing in accordance with their modified terms, equaled $8.4 million as of March 31, 2021, as compared to $9.1 million as of December 31, 2020, and $13.4 million at March 31, 2020. At March 31, 2021, the ratio of nonperforming loans to total loans equaled 1.17%, as compared to 1.34% at December 31, 2020, and 2.09% at March 31, 2020. The allowance for loan losses to total loans was 1.56% as of March 31, 2020, as compared to 1.59% at December 31, 2020, and 1.29% as of March 31, 2020. The ratio of the allowance for loan losses to nonperforming loans increased to 133.0% as of March 31, 2021, as compared to 118.7% at December 31, 2020, and 61.4% at March 31, 2020.
While non-performing asset levels have decreased, management believes that there is still a high level of uncertainty as to the path and breadth of the economic recovery, elevating the risk of losses in future quarters. Many borrowers have taken advantage of PPP, other stimulus programs, and the loan modifications provided by Blackhawk, which has the potential to mask underlying issues. Management continues to work closely with borrowers to ensure credit issues are identified and addressed as early as possible, improving the overall probability of repayment.
Blackhawk has provided payment relief to borrowers negatively affected by the COVID-19 pandemic, including full payment deferrals, principal payment deferrals and other modifications providing payment relief since the beginning of the pandemic. While many of those customers have returned to normal payments, as of March 31, 2021 loans totaling $21.8 million are performing under the original or extended modified terms, including $10.3 million in hospitality and food service sectors.
Non-Interest Income and Operating Expenses
Non-interest income for the quarter ended March 31, 2021 totaled $5.03 million, a $0.93 million decrease compared to $5.97 million the prior quarter, and a $1.83 million increase over the $3.20 million recorded in the first quarter of 2020. The decrease compared to the fourth quarter of 2020 includes decreases of $0.66 million in net revenue from the sale and servicing of mortgage loans, $0.09 million in deposit service charges and $0.43 million in net gains on sales of securities. The increase in non-interest income compared to the first quarter of 2020 is primarily due to a $1.72 million increase in revenue from the sale and servicing of mortgage loans.
Operating expenses for the quarter ended March 31, 2021 totaled $9.71 million, increasing by $0.39 million, or 4%, compared to the quarter ended December 31, 2020, and increasing by $1.22 million, or 14%, compared to the first quarter of 2020. Other expense for the first quarter of 2021 included a $0.26 million penalty related to the prepayment of a Federal Home Loan Bank advance accounting for much of the increase compared to the most recent quarter. The increase compared to the first quarter of 2020 also included a $0.70 million increase in compensation expense, which was partially due to an increase in variable compensation related to mortgage loan production.
Outlook
The outlook for Blackhawk, like much of the banking industry, is clouded by uncertainty related to the COVID-19 pandemic crisis. Blackhawk believes there continues to be risk of elevated credit losses in future quarters as the economic impact of the crisis plays out, and will continue taking steps to increase revenue, implement government stimulus programs and work with credit customers to offset and mitigate losses to the extent possible. Management believes the Company's financial position is strong and it has ample resources to withstand a potentially severe and protracted recession. Blackhawk will continue to pursue creditworthy and profitable business and consumer relationships in its Wisconsin and Illinois markets, emphasizing the value of its personal attention and service that remains unmatched by larger competitors. In addition to organic growth opportunities, Blackhawk may also pursue growth through selective acquisitions. Ability to grow or maintain profitability may be affected by uncertain economic conditions, competitive pressures, changes in regulatory burden and the interest rate environment.
About Blackhawk Bancorp
Blackhawk Bancorp, Inc. is headquartered in Beloit, Wisconsin and is the parent company of Blackhawk Bank. The combined entity operates eleven full-service banking centers and a dedicated commercial office, which are located in Rock County, Wisconsin and the Illinois counties of Winnebago, Boone, McHenry, Lake, and Kane. The Company's footprint stretches along the I-90 corridor from Janesville, Wisconsin to Elgin, Illinois and into the Northwest collar counties of the Chicagoland area. The company offers a variety of value-added consultative services to its business customers and their employees related to the financial products it provides.
Disclosures Regarding non-GAAP Measures
This report refers to financial measures that are identified as non-GAAP that the Company believes help to evaluate and measure the Company's performance, including the presentation of the net interest margin ratio and efficiency ratio calculations on a taxable-equivalent basis. Non-GAAP measures are also used to assist investor comparison by identifying nonrecurring events such as acquisition-related expenses, nonrecurring securities gains and the impact such items have on the performance measures of return on average assets, return on average equity, diluted earnings per share, and the efficiency ratio. This supplemental information should not be considered in isolation or as a substitute for the related GAAP measures.
Forward-Looking Statements
When used in this communication, the words "believes," "expects," "likely", "would", and similar expressions are intended to identify forward-looking statements. The company's actual results may differ materially from those described in the forward-looking statements. Factors which could cause such a variance to occur include, but are not limited to: heightened competition; adverse state and federal regulation; failure to obtain new or retain existing customers; ability to attract and retain key executives and personnel; changes in interest rates; unanticipated changes in industry trends; unanticipated changes in credit quality and risk factors, including general economic conditions particularly in the Company's markets; potential deterioration in real estate values, success in gaining regulatory approvals when required; changes in the Federal Reserve Board monetary policies; unexpected outcomes of new and existing litigation in which Blackhawk or its subsidiaries, officers, directors or employees is named defendants; technological changes; changes in accounting principles generally accepted in the United States; changes in assumptions or conditions affecting the application of "critical accounting policies"; inability to recover previously recorded losses as anticipated, and the inability of third party vendors to perform critical services for the company or its customers. The inclusion of forward-looking information should not be construed as a representation by the Company or any person that future events or plans contemplated by the Company will be achieved. The Company undertakes no obligation to publicly update or revise any forward-looking statements whether as a result of new information or otherwise.
Further information is available on the company's website at www.blackhawkbank.com.
| BLACKHAWK BANCORP, INC. AND SUBSIDIARIES |
| CONSOLIDATED BALANCE SHEETS |
| MARCH 31, 2021 AND DECEMBER 31, 2020 |
| (UNAUDITED) |
|
|
March 31, | December 31, | ||||||
|
Assets
|
2021 | 2020 | ||||||
|
|
(Dollars in thousands, except | |||||||
|
|
share and per share data) | |||||||
|
Cash and due from banks
|
$ | 15,108 | $ | 12,012 | ||||
|
Interest-bearing deposits in banks and other institutions
|
46,284 | 42,119 | ||||||
|
Total cash and cash equivalents
|
61,392 | 54,131 | ||||||
|
|
||||||||
|
Certificates of deposit in banks and other institutions
|
3,915 | 4,159 | ||||||
|
Equity securities at fair value
|
2,501 | 2,517 | ||||||
|
Securities available-for-sale
|
376,686 | 349,565 | ||||||
|
Loans held for sale
|
6,304 | 6,096 | ||||||
|
Federal Home Loan Bank stock, at cost
|
2,150 | 2,150 | ||||||
|
Loans, less allowance for loan losses of $11,116 and $10,764
|
||||||||
|
at March 31, 2021 and December 31, 2020, respectively
|
694,095 | 662,225 | ||||||
|
Premises and equipment, net
|
19,919 | 20,254 | ||||||
|
Goodwill and core deposit intangible
|
11,914 | 12,018 | ||||||
|
Mortgage servicing rights
|
3,746 | 3,409 | ||||||
|
Cash surrender value of bank-owned life insurance
|
11,213 | 11,126 | ||||||
|
Other assets
|
13,798 | 13,949 | ||||||
|
Total assets
|
$ | 1,207,633 | $ | 1,141,599 | ||||
|
|
||||||||
|
Liabilities and Stockholders' Equity
|
||||||||
|
|
||||||||
|
Liabilities
|
||||||||
|
Deposits:
|
||||||||
|
Noninterest-bearing
|
$ | 321,830 | $ | 268,866 | ||||
|
Interest-bearing
|
746,367 | 718,388 | ||||||
|
Total deposits
|
1,068,197 | 987,254 | ||||||
|
Subordinated debentures and notes (including $1,031 at fair value at
|
||||||||
|
March 31, 2021 and December 31, 2020)
|
5,155 | 5,155 | ||||||
|
Senior secured term note
|
12,445 | 12,833 | ||||||
|
Other borrowings
|
4,000 | 14,000 | ||||||
|
Other liabilities
|
7,138 | 10,602 | ||||||
|
Total liabilities
|
1,096,935 | 1,029,844 | ||||||
|
|
||||||||
|
Stockholders' equity
|
||||||||
|
Common stock, $0.01 par value, 10,000,000 shares authorized;
|
||||||||
|
3,464,917 and 3,435,348 shares issued as of March 31, 2021 and
|
||||||||
|
December 31, 2020, respectively
|
35 | 35 | ||||||
|
Additional paid-in capital
|
35,267 | 35,062 | ||||||
|
Retained earnings
|
72,736 | 69,676 | ||||||
|
Treasury stock, 105,304 and 62,999 shares at cost as of March 31, 2021
|
||||||||
|
and December 31, 2020, respectively
|
(2,130 | ) | (941 | ) | ||||
|
Accumulated other comprehensive income (loss)
|
4,790 | 7,923 | ||||||
|
Total stockholders' equity
|
110,698 | 111,755 | ||||||
|
Total liabilities and stockholders' equity
|
$ | 1,207,633 | $ | 1,141,599 | ||||
BLACKHAWK BANCORP, INC. AND SUBSIDIARIES |
| CONSOLIDATED STATEMENTS OF INCOME |
| (UNAUDITED) |
| Three Months Ended March 31, | ||||||||
|
|
2021 | 2020 | ||||||
|
|
(Amounts in thousands, except per share data) | |||||||
|
|
||||||||
|
Interest Income:
|
||||||||
|
Interest and fees on loans
|
$ | 8,155 | $ | 8,033 | ||||
|
Interest and dividends on available-for-sale securities:
|
||||||||
|
Taxable
|
1,721 | 1,505 | ||||||
|
Tax-exempt
|
384 | 323 | ||||||
|
Interest on deposits in other financial institutions
|
41 | 162 | ||||||
|
Total interest income
|
10,301 | 10,023 | ||||||
|
Interest Expense:
|
||||||||
|
Interest on deposits
|
415 | 1,177 | ||||||
|
Interest on subordinated debentures
|
41 | 53 | ||||||
|
Interest on senior secured term note
|
107 | 156 | ||||||
|
Interest on other borrowings
|
20 | 22 | ||||||
|
Total interest expense
|
583 | 1,408 | ||||||
|
Net interest income before provision for loan losses
|
9,718 | 8,615 | ||||||
|
Provision for loan losses
|
500 | 765 | ||||||
|
Net interest income after provision for loan losses
|
9,218 | 7,850 | ||||||
|
|
||||||||
|
Noninterest Income:
|
||||||||
|
Service charges on deposits accounts
|
690 | 897 | ||||||
|
Net gain on sale of loans
|
2,362 | 905 | ||||||
|
Net loan servicing income
|
369 | 110 | ||||||
|
Debit card interchange fees
|
1,027 | 832 | ||||||
|
Net gains on sales of securities available-for-sale
|
- | 99 | ||||||
|
Net other gains (losses)
|
42 | - | ||||||
|
Increase in cash surrender value of bank-owned life insurance
|
87 | 85 | ||||||
|
Change in value of equity securities
|
(35 | ) | (70 | ) | ||||
|
Other
|
493 | 343 | ||||||
|
Total noninterest income
|
5,035 | 3,201 | ||||||
|
|
||||||||
|
Noninterest Expenses:
|
||||||||
|
Salaries and employee benefits
|
5,734 | 5,035 | ||||||
|
Occupancy and equipment
|
1,182 | 1,083 | ||||||
|
Data processing
|
591 | 510 | ||||||
|
Debit card processing and issuance
|
425 | 397 | ||||||
|
Advertising and marketing
|
99 | 97 | ||||||
|
Amortization of core deposit intangible
|
104 | 115 | ||||||
|
Professional fees
|
390 | 367 | ||||||
|
Office Supplies
|
77 | 90 | ||||||
|
Telephone
|
141 | 150 | ||||||
|
Other
|
968 | 646 | ||||||
|
Total noninterest expenses
|
9,711 | 8,490 | ||||||
|
Income before income taxes
|
4,542 | 2,561 | ||||||
|
Provision for income taxes
|
1,112 | 487 | ||||||
|
Net income
|
$ | 3,430 | $ | 2,074 | ||||
|
|
||||||||
|
Key Ratios
|
||||||||
|
|
||||||||
|
Basic Earnings Per Common Share
|
$ | 1.02 | $ | 0.63 | ||||
|
Diluted Earnings Per Common Share
|
1.02 | 0.63 | ||||||
|
Dividends Per Common Share
|
0.11 | 0.11 | ||||||
|
|
||||||||
|
Net Interest Margin (1)
|
3.52 | % | 3.83 | % | ||||
|
Efficiency Ratio (1)(2)
|
65.53 | % | 71.89 | % | ||||
|
Return on Assets
|
1.16 | % | 0.85 | % | ||||
|
Return on Common Equity
|
12.44 | % | 8.31 | % | ||||
(1) Non-GAAP Presentations: Management discloses certain non-GAAP financial measures to evaluate and measure the Company's performance, including the presentation of the net interest margin and efficiency ratio calculations on a taxable equivalent basis ("TE"). The net interest margin ratio is calculated by dividing net interest income on a tax equivalent basis by average earning assets for the period. Management believes this measure provides investors with information regarding comparative balance sheet profitability.
(2) The efficiency ratio is calculated as noninterest expense divided by the sum of net interest income on a TE basis, noninterest income less any securities gains (losses) or other gains (losses), and also includes a TE adjustment on the increases in cash surrender value of bank-owned life insurance.
|
BLACKHAWK BANCORP, INC. AND SUBSIDIARIES
|
||||||||||||||||||||
|
CONSOLIDATED STATEMENTS OF INCOME
|
||||||||||||||||||||
|
(UNAUDITED)
|
||||||||||||||||||||
|
|
For the Quarter Ended
|
|||||||||||||||||||
|
|
March 31,
|
|
|
December 31,
|
|
|
September 30,
|
|
|
June 30,
|
|
|
March 31,
|
|||||||
|
|
2021
|
|
|
2020
|
|
|
2020
|
|
|
2020
|
|
|
2020
|
|||||||
|
|
(Dollars in thousands, except per share data) | |||||||||||||||||||
|
Interest Income:
|
||||||||||||||||||||
|
Interest and fees on loans
|
$ | 8,155 | $ | 8,079 | $ | 8,671 | $ | 8,658 | $ | 8,033 | ||||||||||
|
Interest on available-for-sale securities:
|
||||||||||||||||||||
|
Taxable
|
1,721 | 1,598 | 1,607 | 1,618 | 1,505 | |||||||||||||||
|
Tax-exempt
|
384 | 384 | 372 | 371 | 323 | |||||||||||||||
|
Interest on deposits in other financial institutions
|
41 | 33 | 41 | 40 | 162 | |||||||||||||||
|
Total interest income
|
10,301 | 10,094 | 10,691 | 10,687 | 10,023 | |||||||||||||||
|
Interest Expense:
|
||||||||||||||||||||
|
Interest on deposits
|
415 | 458 | 565 | 639 | 1,177 | |||||||||||||||
|
Interest on subordinated debentures
|
41 | 41 | 42 | 45 | 53 | |||||||||||||||
|
Interest on senior secured term note
|
107 | 113 | 119 | 111 | 156 | |||||||||||||||
|
Interest on other borrowings
|
20 | 40 | 47 | 19 | 22 | |||||||||||||||
|
Total interest expense
|
583 | 652 | 773 | 814 | 1,408 | |||||||||||||||
|
Net interest income before provision for loan losses
|
9,718 | 9,442 | 9,918 | 9,873 | 8,615 | |||||||||||||||
|
Provision for loan losses
|
500 | 1,715 | 2,615 | 2,505 | 765 | |||||||||||||||
|
Net interest income after provision for loan losses
|
9,218 | 7,727 | 7,303 | 7,368 | 7,850 | |||||||||||||||
|
|
||||||||||||||||||||
|
Noninterest Income:
|
||||||||||||||||||||
|
Service charges on deposits accounts
|
690 | 781 | 747 | 610 | 897 | |||||||||||||||
|
Net gain on sale of loans
|
2,362 | 3,572 | 3,412 | 3,192 | 905 | |||||||||||||||
|
Net loan servicing income
|
369 | (177 | ) | 26 | (389 | ) | 110 | |||||||||||||
|
Debit card interchange fees
|
1,027 | 979 | 1,002 | 924 | 832 | |||||||||||||||
|
Net gains on sales of securities available-for-sale
|
- | 428 | - | 8 | 99 | |||||||||||||||
|
Net other gains (losses)
|
42 | - | 58 | 6 | - | |||||||||||||||
|
Increase in cash surrender value of bank-owned life insurance
|
87 | 75 | 76 | 74 | 85 | |||||||||||||||
|
Other
|
458 | 310 | 344 | 425 | 273 | |||||||||||||||
|
Total noninterest income
|
5,035 | 5,968 | 5,665 | 4,850 | 3,201 | |||||||||||||||
|
|
||||||||||||||||||||
|
Noninterest Expenses:
|
||||||||||||||||||||
|
Salaries and employee benefits
|
5,734 | 5,851 | 5,585 | 5,477 | 5,035 | |||||||||||||||
|
Occupancy and equipment
|
1,182 | 986 | 1,137 | 1,074 | 1,083 | |||||||||||||||
|
Data processing
|
591 | 683 | 629 | 561 | 510 | |||||||||||||||
|
Debit card processing and issuance
|
425 | 384 | 409 | 394 | 397 | |||||||||||||||
|
Advertising and marketing
|
99 | 75 | 87 | 38 | 97 | |||||||||||||||
|
Amortization of intangibles
|
104 | 107 | 107 | 107 | 115 | |||||||||||||||
|
Professional fees
|
390 | 373 | 386 | 405 | 367 | |||||||||||||||
|
Office Supplies
|
77 | 90 | 94 | 88 | 90 | |||||||||||||||
|
Telephone
|
141 | 140 | 138 | 149 | 150 | |||||||||||||||
|
Other
|
968 | 637 | 714 | 659 | 646 | |||||||||||||||
|
Total noninterest expenses
|
9,711 | 9,326 | 9,286 | 8,952 | 8,490 | |||||||||||||||
|
Income before income taxes
|
4,542 | 4,369 | 3,682 | 3,266 | 2,561 | |||||||||||||||
|
Provision for income taxes
|
1,112 | 1,021 | 819 | 704 | 487 | |||||||||||||||
|
Net income
|
$ | 3,430 | $ | 3,348 | $ | 2,863 | $ | 2,562 | $ | 2,074 | ||||||||||
|
|
||||||||||||||||||||
|
Key Ratios
|
||||||||||||||||||||
|
|
||||||||||||||||||||
|
Basic Earnings Per Common Share
|
$ | 1.02 | $ | 1.00 | $ | 0.86 | $ | 0.77 | $ | 0.63 | ||||||||||
|
Diluted Earnings Per Common Share
|
1.02 | 1.00 | 0.86 | 0.77 | 0.63 | |||||||||||||||
|
Dividends Per Common Share
|
0.11 | 0.11 | 0.11 | 0.11 | 0.11 | |||||||||||||||
|
|
||||||||||||||||||||
|
Net Interest Margin (1)
|
3.52 | % | 3.63 | % | 3.83 | % | 3.99 | % | 3.83 | % | ||||||||||
|
Efficiency Ratio (1)(2)
|
65.53 | % | 61.80 | % | 59.39 | % | 60.43 | % | 71.89 | % | ||||||||||
|
Return on Assets
|
1.16 | % | 1.20 | % | 1.03 | % | 0.96 | % | 0.85 | % | ||||||||||
|
Return on Common Equity
|
12.44 | % | 12.08 | % | 10.64 | % | 10.16 | % | 8.31 | % | ||||||||||
(1) Non-GAAP Presentations: Management discloses certain non-GAAP financial measures to evaluate and measure the Company's performance, including the presentation of net interest income, net interest margin and efficiency ratio calculations on a taxable equivalent basis ("TE"). The net interest margin is calculated by dividing net interest income on a TE basis by average earning assets for the period. Management believes this measure provides investors with information regarding comparative balance sheet profitability.
(2) The efficiency ratio is calculated as noninterest expense divided by the sum of net interest income on an TE basis, noninterest income less any securities gains (losses) or other gains (losses), and also includes a TE adjustment on interest on tax-exempt securities, loans, and the increases in cash surrender value of bank-owned life insurance.
|
(UNAUDITED)
|
As of | |||||||||||||||||||
|
|
March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||
|
|
2021 | 2020 | 2020 | 2020 | 2020 | |||||||||||||||
|
|
(Amounts in thousands, except per share data) | |||||||||||||||||||
|
Cash and due from banks
|
$ | 15,108 | $ | 12,012 | $ | 17,403 | $ | 14,527 | $ | 15,240 | ||||||||||
|
Interest-bearing deposits in banks and other
|
50,199 | 46,278 | 47,848 | 25,246 | 6,775 | |||||||||||||||
|
Securities
|
379,187 | 352,082 | 317,761 | 301,726 | 265,165 | |||||||||||||||
|
Net loans/leases
|
700,399 | 668,321 | 681,060 | 697,881 | 626,797 | |||||||||||||||
|
Goodwill and core deposit intangible
|
11,914 | 12,018 | 12,125 | 12,232 | 12,340 | |||||||||||||||
|
Other assets
|
50,826 | 50,888 | 50,105 | 49,485 | 50,688 | |||||||||||||||
|
Total assets
|
$ | 1,207,633 | $ | 1,141,599 | $ | 1,126,302 | $ | 1,101,097 | $ | 977,005 | ||||||||||
|
|
||||||||||||||||||||
|
Deposits
|
$ | 1,068,197 | $ | 987,254 | $ | 960,773 | $ | 939,066 | $ | 843,061 | ||||||||||
|
Subordinated debentures
|
5,155 | 5,155 | 5,155 | 5,155 | 5,155 | |||||||||||||||
|
Senior secured term note
|
12,445 | 12,833 | 13,222 | 13,611 | 14,000 | |||||||||||||||
|
Borrowings
|
4,000 | 14,000 | 29,000 | 29,000 | 10,000 | |||||||||||||||
|
Other liabilities
|
7,138 | 10,602 | 10,161 | 9,758 | 6,083 | |||||||||||||||
|
Stockholders' equity
|
110,698 | 111,755 | 107,991 | 104,507 | 98,706 | |||||||||||||||
|
Total liabilities and stockholders' equity
|
$ | 1,207,633 | $ | 1,141,599 | $ | 1,126,302 | $ | 1,101,097 | $ | 977,005 | ||||||||||
|
|
||||||||||||||||||||
|
|
||||||||||||||||||||
|
ASSET QUALITY DATA
|
||||||||||||||||||||
|
(Amounts in thousands)
|
March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||
|
|
2021 | 2020 | 2020 | 2020 | 2020 | |||||||||||||||
|
|
||||||||||||||||||||
|
Non-accrual loans
|
$ | 6,361 | $ | 7,013 | $ | 8,584 | $ | 8,427 | $ | 9,680 | ||||||||||
|
Accruing loans past due 90 days or more
|
- | - | 196 | - | 845 | |||||||||||||||
|
Troubled debt restructures - accruing
|
1,996 | 2,057 | 2,176 | 2,361 | 2,770 | |||||||||||||||
|
Total nonperforming loans
|
$ | 8,357 | $ | 9,070 | $ | 10,956 | $ | 10,788 | $ | 13,295 | ||||||||||
|
Other real estate owned
|
- | 1 | 1 | 762 | 123 | |||||||||||||||
|
Total nonperforming assets
|
$ | 8,357 | $ | 9,071 | $ | 10,957 | $ | 11,550 | $ | 13,418 | ||||||||||
|
|
||||||||||||||||||||
|
Total loans
|
$ | 711,515 | $ | 679,085 | $ | 691,003 | $ | 707,983 | $ | 634,957 | ||||||||||
|
Allowance for loan losses
|
$ | 11,116 | $ | 10,764 | $ | 9,943 | $ | 10,102 | $ | 8,160 | ||||||||||
|
|
$ | 700,399 | $ | 668,321 | $ | 681,060 | $ | 697,881 | $ | 626,797 | ||||||||||
|
Nonperforming Assets to total Assets
|
0.69 | % | 0.79 | % | 0.97 | % | 1.05 | % | 1.37 | % | ||||||||||
|
Nonperforming loans to total loans
|
1.17 | % | 1.34 | % | 1.59 | % | 1.52 | % | 2.09 | % | ||||||||||
|
Allowance for loan losses to total loans
|
1.56 | % | 1.59 | % | 1.44 | % | 1.43 | % | 1.29 | % | ||||||||||
|
Allowance for loan losses to nonperforming loans
|
133.0 | % | 118.7 | % | 90.8 | % | 93.6 | % | 61.4 | % | ||||||||||
|
|
For the Quarter Ended | |||||||||||||||||||
|
|
March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||
|
ROLLFORWARD OF ALLOWANCE
|
2021 | 2020 | 2020 | 2020 | 2020 | |||||||||||||||
|
|
||||||||||||||||||||
|
Beginning Balance
|
$ | 10,764 | $ | 9,943 | $ | 10,102 | $ | 8,160 | $ | 7,941 | ||||||||||
|
Provision
|
500 | 1,715 | 2,615 | 2,505 | 765 | |||||||||||||||
|
Loans charged off
|
582 | 1,334 | 2,892 | 639 | 633 | |||||||||||||||
|
Loan recoveries
|
434 | 440 | 118 | 76 | 87 | |||||||||||||||
|
Net charge-offs
|
148 | 894 | 2,774 | 563 | 546 | |||||||||||||||
|
Ending Balance
|
$ | 11,116 | $ | 10,764 | $ | 9,943 | $ | 10,102 | $ | 8,160 | ||||||||||
BLACKHAWK BANCORP, INC. AND SUBSIDIARIES
ANALYSIS of AVERAGE BALANCES & TAX EQUIVALENT INTEREST RATES
|
Average Balance Sheet with Resultant Interest and Rates
|
||||||||||||||||||||||||||||||||||||
|
(Dollars in thousands - unaudited)
|
||||||||||||||||||||||||||||||||||||
|
(Yields on a tax-equivalent basis) (1)
|
For the Quarter Ended | |||||||||||||||||||||||||||||||||||
|
|
March 31, 2021 | December 31, 2020 | March 31, 2020 | |||||||||||||||||||||||||||||||||
|
|
Average | Average | Average | Average | Average | Average | ||||||||||||||||||||||||||||||
|
|
Balance | Interest | Rate | Balance | Interest | Rate | Balance | Interest | Rate | |||||||||||||||||||||||||||
|
Interest Earning Assets:
|
||||||||||||||||||||||||||||||||||||
|
Interest-bearing deposits and other
|
$ | 74,108 | $ | 41 | 0.22 | % | $ | 30,058 | $ | 32 | 0.43 | % | $ | 37,668 | $ | 162 | 1.74 | % | ||||||||||||||||||
|
Investment securities:
|
||||||||||||||||||||||||||||||||||||
|
Taxable investment securities
|
320,740 | 1,721 | 2.18 | % | 285,167 | 1,598 | 2.23 | % | 204,526 | 1,505 | 2.96 | % | ||||||||||||||||||||||||
|
Tax-exempt investment securities
|
52,122 | 384 | 3.83 | % | 51,902 | 384 | 3.78 | % | 40,876 | 323 | 4.09 | % | ||||||||||||||||||||||||
|
Total Investment securities
|
372,862 | 2,105 | 2.41 | % | 337,069 | 1,982 | 2.47 | % | 245,402 | 1,828 | 3.15 | % | ||||||||||||||||||||||||
|
Loans
|
685,654 | 8,155 | 4.82 | % | 678,335 | 8,079 | 4.74 | % | 628,802 | 8,033 | 5.14 | % | ||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||||||
|
Total Earning Assets
|
$ | 1,132,624 | $ | 10,301 | 3.73 | % | $ | 1,045,462 | $ | 10,093 | 3.88 | % | $ | 911,872 | $ | 10,023 | 4.46 | % | ||||||||||||||||||
|
Allowance for loan losses
|
(11,075 | ) | (10,313 | ) | (8,015 | ) | ||||||||||||||||||||||||||||||
|
Cash and due from banks
|
16,052 | 16,032 | 15,623 | |||||||||||||||||||||||||||||||||
|
Other assets
|
58,706 | 58,663 | 58,984 | |||||||||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||||||
|
Total Assets
|
$ | 1,196,307 | $ | 1,109,844 | $ | 978,464 | ||||||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||||||
|
Interest Bearing Liabilities:
|
||||||||||||||||||||||||||||||||||||
|
Interest bearing checking accounts
|
$ | 284,527 | $ | 161 | 0.23 | % | $ | 261,739 | $ | 150 | 0.23 | % | $ | 270,849 | $ | 334 | 0.50 | % | ||||||||||||||||||
|
Savings and money market deposits
|
356,615 | 84 | 0.10 | % | 349,028 | 98 | 0.11 | % | 282,113 | 362 | 0.52 | % | ||||||||||||||||||||||||
|
Time deposits
|
81,807 | 170 | 0.84 | % | 84,166 | 210 | 0.99 | % | 113,865 | 481 | 1.70 | % | ||||||||||||||||||||||||
|
Total interest bearing deposits
|
722,949 | 415 | 0.23 | % | 694,933 | 458 | 0.26 | % | 666,827 | 1,177 | 0.71 | % | ||||||||||||||||||||||||
|
Subordinated debentures and notes
|
5,155 | 41 | 3.23 | % | 5,155 | 41 | 3.19 | % | 5,155 | 53 | 4.15 | % | ||||||||||||||||||||||||
|
Borrowings
|
26,369 | 127 | 1.96 | % | 30,186 | 152 | 2.01 | % | 24,601 | 178 | 2.91 | % | ||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||||||
|
Total Interest-Bearing Liabilities
|
$ | 754,473 | $ | 583 | 0.31 | % | $ | 730,274 | $ | 651 | 0.36 | % | $ | 696,583 | $ | 1,408 | 0.81 | % | ||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||||||
|
Interest Rate Spread
|
3.42 | % | 3.52 | % | 3.65 | % | ||||||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||||||
|
Noninterest checking accounts
|
322,667 | 261,182 | 174,607 | |||||||||||||||||||||||||||||||||
|
Other liabilities
|
7,373 | 8,202 | 6,868 | |||||||||||||||||||||||||||||||||
|
Total liabilities
|
1,084,513 | 999,658 | 878,058 | |||||||||||||||||||||||||||||||||
|
Total Stockholders' equity
|
111,794 | 110,186 | 100,406 | |||||||||||||||||||||||||||||||||
|
Total Liabilities and
|
||||||||||||||||||||||||||||||||||||
|
Stockholders' Equity
|
$ | 1,196,307 | $ | 1,109,844 | $ | 978,464 | ||||||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||||||
|
Net Interest Income/Margin
|
$ | 9,718 | 3.52 | % | $ | 9,442 | 3.63 | % | $ | 8,615 | 3.83 | % | ||||||||||||||||||||||||
(1) Management discloses certain non-GAAP financial measures to evaluate and measure the Company's performance including a presentation of net interest income with a net interest margin ratio on a tax-equivalent (TE) basis. The net interest margin is calculated by dividing net interest income on a TE basis by average earning assets for the period. Management believes this measure provides investors with information regarding comparative balance sheet profitability. Nonaccrual loans are included in the above-stated average balances.
Blackhawk Bancorp, Inc.
Todd J. James, Chairman & CEO
[email protected]
Matthew McDonnell, SVP & CFO
[email protected]
Phone: (608) 364-8911
SOURCE: Blackhawk Bancorp, Inc.