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Blackhawk Bancorp Announces 2021 Second Quarter Earnings – Stocks News Feed

BELOIT, WI / ACCESSWIRE / July 21, 2021 / Blackhawk Bancorp, Inc. (OTCQX:BHWB) reported net income of $4.06 million for the quarter ended June 30, 2021, an 18% increase over the $3.43 million earned the previous quarter, and a 58% increase compared to the $2.56 million earned the second quarter of 2020. Fully diluted earnings per share (EPS) for the quarter was $1.30, an increase of $0.28 as compared to $1.02 for the quarter ended March 31, 2021 and an increase of $0.53, or 69%, as compared to $0.77 reported for the quarter ended June 30, 2020. The second quarter 2021 results produced a Return on Average Equity (ROAE) of 15.74% and a Return on Average Assets (ROAA) of 1.26%.

The increase in earnings compared to the most recent quarter included a $0.50 million decrease in the provision for loan losses, a $0.45 million increase in net interest income, and a $0.25 million decrease in operating expenses. These earnings gains were offset by a $0.48 million decrease in revenue from the sale and servicing of mortgage loans.

The increase in net income for the second quarter of 2021 compared to the second quarter of the prior year reflects a $2.51 million decrease in provision for loan losses. This improvement was partially offset by a $0.55 million decrease in revenue from the sale and servicing of mortgage loans and a $0.51 million increase in operating expenses.

The increase in earnings per share for the quarter compared to the most recent quarter and the second quarter of 2020 was boosted by the recently completed tender offer and stock repurchase. On May 18, 2021 the Company repurchased 525,546 shares, or 15.6%, of its outstanding common stock, contributing $0.08 to earnings per share for the quarter.




For the six months ended June 30, 2021, the company reported net income of $7.49 million, a 61% increase over the $4.64 million reported for the first six months of 2020. Diluted earnings per share for the first half of 2021 increased by 65% to $2.31 compared to $1.40 for the first six months of 2020. The Company’s results for the first six months of 2021 produced a return on average assets of 1.21% and a return on average equity of 13.93%.

“The strong second quarter results were driven primarily by the recognition of PPP (Paycheck Protection Program) loan fees, an abnormally low provision for loan losses and a continuing high level of mortgage banking activity,” said Todd James, the Company’s Chairman and CEO. “While we’re pleased with the overall performance, we know these earnings tailwinds are unsustainable and future performance will be driven by loan growth and efficiency gains.” he added.

Total assets of the company increased by $195.2 million, or 17%, to $1.33 billion as of June 30, 2021 compared to $1.14 billion as of December 31, 2020. Total gross loans decreased by $1.1 million, or less than 1%, and total investment securities increased $96.0 million, or 27%, during the first six months of 2021. Total Deposits increased by $201.7 million, or 20%, to $1.19 billion compared to $987.3 million at the end of 2020.

Net Interest Income

Net interest income for the second quarter of 2021 totaled $10.16 million, an increase of $0.45 million, or 5%, compared to the first quarter of 2021, and up $0.29 million, or 3%, compared to the second quarter of last year. The net interest margin was 3.37% for the second quarter of 2021 as compared to 3.52% for the quarter ended March 31, 2021, and 3.99% for the second quarter of the prior year.

The increase in net interest income compared to the second quarter of last year was due to a $216.6 million, or 22%, increase in average total earning assets to $1.22 billion compared to $1.01 billion the second quarter of 2020. The increase included a $129.3 million increase in average investment securities and a $88.3 increase in interest bearing deposits at other financial institutions. Total average loans decreased by $1.0 million. The decrease in average total loans included a decrease of $6.9 million in average Paycheck Protection Program (PPP) loans, which averaged $78.9 million for the quarter. During the second quarter of 2021 $1.10 million of PPP fees were recognized, resulting in a 6.60% annualized yield on average PPP loans for three months ended June, 30 2021. The PPP, pandemic-related stimulus payments and an overall influx of deposits drove a $228.9 million, or 25%, increase in total average deposits for the second quarter of 2021 compared to the second 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 62 basis points to 3.37% compared to 3.99% for the second quarter of the prior year.

Net interest income for the six months ended June 30, 2021, increased by $1.39 million, or 8%, to $19.88 million as compared to $18.49 million for the first six months of 2020. The net interest margin for the first six months of 2021 decreased by 48 basis points to 3.44% compared to 3.92% for the first six months of 2020. Average total loans for the first six months of 2021 were $692.9 million, an increase of $28.0 million, or 4%, as compared to $664.9 million for the first six months of 2020. Average total deposits for the first six months of 2021 were $1.10 billion, an increase of $216.9 million, or 25%, as compared to $880.1 million for the first six months of 2020.

Provision for Loan Losses and Asset Quality

There was no provision for loan losses recorded for the quarter ended June 30, 2021, as compared to $0.50 million for the quarter ended March 31, 2021, and $2.51 million for the second quarter of 2020. The decreased provision reflects an improved credit outlook, especially as it relates to pandemic related losses. Net recoveries for the second quarter equaled $0.11 million.

Total nonperforming assets, which include troubled debt restructures performing in accordance with their modified terms, equaled $10.2 million as of June 30, 2021, as compared to $8.4 million as of March 31, 2021, and $11.6 million at June 30, 2020. At June 30, 2021, the ratio of nonperforming loans to total loans equaled 1.50%, as compared to 1.17% at March 31, 2021, and 1.52% at June 30, 2020. The allowance for loan losses to total loans was 1.66% as of June 30, 2021, as compared to 1.56% at March 31, 2021, and 1.43% as of June 30, 2020. The ratio of the allowance for loan losses to nonperforming loans decreased to 110.2% as of June 30, 2021, as compared to 133.0% at March 31, 2021, and 93.6% at June 30, 2020.

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 provided payment relief to borrowers negatively affected by the COVID-19 pandemic. Loans with an aggregate balance in excess of $70 million were modified, and as of June 30, 2021 all of the modified credits have either returned to normal payments or are reflected in the nonperforming loan numbers, except for a small number of credits totaling $2.4 million for which the modified terms have been extended and the borrowers are continuing to perform under the modified terms.

Non-Interest Income and Operating Expenses

Non-interest income for the quarter ended June 30, 2021 totaled $4.69 million, a $0.34 million decrease compared to $5.04 million the prior quarter, and a $0.16 million decrease from the $4.85 million recorded in the second quarter of 2020. The decrease compared to the first quarter of 2021 included a decrease of $0.48 million in net revenue from the sale and servicing of mortgage loans. This was partially offset by a $0.19 million increase in debit card interchange fees. The decrease in non-interest income compared to the second quarter of 2020 was primarily due to a $0.55 million decrease in revenue from the sale and servicing of mortgage loans that was partially offset by a $0.29 million increase in debit card interchange fees.

Non-interest income for the first six months of 2021 increased $1.38 million, or 17%, to $9.73 million as compared to $8.35 million for the first six months of 2020, including a $1.17 million increase in the sale and servicing of loans and a $0.49 million increase in debit card interchange fees.

Operating expenses for the quarter ended June 30, 2021 totaled $9.46 million, a decrease of $0.25 million, or 3%, compared to the quarter ended March 31, 2021, and increased by $0.51 million, or 6%, compared to the second quarter of 2020.

Operating expenses for the six-month period ended June 30, 2021, totaled $19.18 million, a $1.44 million, or 8%, increase over the first six month of 2020.

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.

Todd J. James, Chairman & CEO 
[email protected]

Matthew McDonnell, SVP & CFO
[email protected]

Phone: (608) 364-8911

BLACKHAWK BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
JUNE 30, 2021 AND DECEMBER 31, 2020
(UNAUDITED)

              

 

 June 30,  December 31, 

Assets

 2021  2020 

 

 (Dollars in thousands, except 

 

 share and per share data) 

Cash and due from banks

 $16,418  $12,012 

Interest-bearing deposits in banks and other institutions

  136,657   42,119 

Total cash and cash equivalents

  153,075   54,131 

 

        

Certificates of deposit in banks and other institutions

  3,416   4,159 

Equity securities at fair value

  2,521   2,517 

Securities available-for-sale

  445,551   349,565 

Loans held for sale

  6,469   6,096 

Federal Home Loan Bank stock, at cost

  2,150   2,150 

Loans, less allowance for loan losses of $11,229 and $10,764

        

at June 30, 2021 and December 31, 2020, respectively

  660,269   662,225 

Premises and equipment, net

  20,915   20,254 

Goodwill and core deposit intangible

  11,819   12,018 

Mortgage servicing rights

  3,720   3,409 

Cash surrender value of bank-owned life insurance

  11,285   11,126 

Other assets

  15,559   13,949 

Total assets

 $1,336,749  $1,141,599 

 

        

Liabilities and Stockholders’ Equity

        

 

        

Liabilities

        

Deposits:

        

Noninterest-bearing

 $389,940  $268,866 

Interest-bearing

  799,057   718,388 

Total deposits

  1,188,997   987,254 

Subordinated debentures and notes (including $1,031 at fair value at

        

June 30, 2021 and December 31, 2020)

  20,155   5,155 

Senior secured term note

  12,056   12,833 

Other borrowings

  5,000   14,000 

Other liabilities

  11,131   10,602 

Total liabilities

  1,237,339   1,029,844 

 

        

Stockholders’ equity

        

Common stock, $0.01 par value, 10,000,000 shares authorized;

        

3,473,819 and 3,435,348 shares issued as of June 30, 2021 and

        

December 31, 2020, respectively

  35   35 

Additional paid-in capital

  35,455   35,062 

Retained earnings

  76,479   69,676 

Treasury stock, 630,991 and 62,999 shares at cost as of June 30, 2021

        

and December 31, 2020, respectively

  (18,952)  (941)

Accumulated other comprehensive income (loss)

  6,393   7,923 

Total stockholders’ equity

  99,410   111,755 

Total liabilities and stockholders’ equity

 $1,336,749  $1,141,599                   

BLACKHAWK BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)

 

 Six months ended June 30, 

 

 2021  2020 

 

 (Amounts in thousands, except per share data) 

 

 
   
  

Interest Income:

 
   
  

Interest and fees on loans

 $ 16,776  $ 16,691 

Interest and dividends on available-for-sale securities:

        

Taxable

  3,479   3,123 

Tax-exempt

  762   695 

Interest on deposits in other financial institutions

  89   202 

Total interest income

  21,106   20,711 

Interest Expense:

        

Interest on deposits

  836   1,816 

Interest on subordinated debentures

  158   98 

Interest on senior secured term note

  210   267 

Interest on other borrowings

  20   41 

Total interest expense

  1,224   2,223 

Net interest income before provision for loan losses

  19,882   18,488 

Provision for loan losses

  500   3,270 

Net interest income after provision for loan losses

  19,382   15,218 

 

        

Noninterest Income:

        

Service charges on deposits accounts

  1,354   1,507 

Net gain on sale of loans

  4,579   4,097 

Net loan servicing income

  404   (280)

Debit card interchange fees

  2,245   1,757 

Net gains on sales of securities available-for-sale

  –   107 

Net other gains (losses)

  49   6 

Increase in cash surrender value of bank-owned life insurance

  159   159 

Change in value of equity securities

  (30)  60 

Other

  967   935 

Total noninterest income

  9,727   8,348 

 

        

Noninterest Expenses:

        

Salaries and employee benefits

  11,487   10,512 

Occupancy and equipment

  2,274   2,156 

Data processing

  1,232   1,071 

Debit card processing and issuance

  928   791 

Advertising and marketing

  169   135 

Amortization of core deposit intangible

  199   223 

Professional fees

  789   772 

Office Supplies

  170   178 

Telephone

  286   299 

Other

  1,641   1,601 

Total noninterest expenses

  19,175   17,738 

Income before income taxes

  9,934   5,828 

Provision for income taxes

  2,449   1,191 

Net income

 $ 7,485  $ 4,637 

 

        

Key Ratios

        

 

        

Basic Earnings Per Common Share

 $ 2.31  $ 1.40 

Diluted Earnings Per Common Share

  2.31   1.40 

Dividends Per Common Share

  0.22   0.22 

 

        

Net Interest Margin (1)

  3.44%  3.92%

Efficiency Ratio (1)(2)

  64.64%  65.89%

Return on Assets

  1.21%  0.90%

Return on Common Equity

  13.93%  9.19%         

(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 

 

 June 30,  March 31,  December 31,  September 30,  June 30, 

 

 2021  2021  2020  2020  2020 

 

 (Dollars in thousands, except per share data) 

Interest Income:

 
   
   
   
   
  

Interest and fees on loans

 $ 8,621  $ 8,155  $ 8,079  $ 8,671  $ 8,658 

Interest on available-for-sale securities:

                    

Taxable

  1,759   1,721   1,598   1,607   1,618 

Tax-exempt

  378   384   384   372   371 

Interest on deposits in other financial institutions

  48   41   33   41   40 

Total interest income

  10,806   10,301   10,094   10,691   10,687 

Interest Expense:

                    

Interest on deposits

  421   415   458   565   639 

Interest on subordinated debentures

  117   41   41   42   45 

Interest on senior secured term note

  104   107   113   119   111 

Interest on other borrowings

  –   20   40   47   19 

Total interest expense

  642   583   652   773   814 

Net interest income before provision for loan losses

  10,164   9,718   9,442   9,918   9,873 

Provision for loan losses

  –   500   1,715   2,615   2,505 

Net interest income after provision for loan losses

  10,164   9,218   7,727   7,303   7,368 

 

                    

Noninterest Income:

                    

Service charges on deposits accounts

  663   690   781   747   610 

Net gain on sale of loans

  2,217   2,362   3,572   3,412   3,192 

Net loan servicing income

  36   369   (177)  26   (389)

Debit card interchange fees

  1,218   1,027   979   1,002   924 

Net gains on sales of securities available-for-sale

  –   –   428   –   8 

Net other gains (losses)

  7   42   –   58   6 

Increase in cash surrender value of bank-owned life insurance

  72   87   75   76   74 

Other

  479   458   310   344   425 

Total noninterest income

  4,692   5,035   5,968   5,665   4,850 

 

                    

Noninterest Expenses:

                    

Salaries and employee benefits

  5,753   5,734   5,851   5,585   5,477 

Occupancy and equipment

  1,092   1,182   986   1,137   1,074 

Data processing

  641   591   683   629   561 

Debit card processing and issuance

  503   425   384   409   394 

Advertising and marketing

  70   99   75   87   38 

Amortization of intangibles

  96   104   107   107   107 

Professional fees

  399   390   373   386   405 

Office Supplies

  93   77   90   94   88 

Telephone

  144   141   140   138   149 

Other

  673   968   637   714   659 

Total noninterest expenses

  9,464   9,711   9,326   9,286   8,952 

Income before income taxes

  5,392   4,542   4,369   3,682   3,266 

Provision for income taxes

  1,337   1,112   1,021   819   704 

Net income

 $ 4,055  $ 3,430  $ 3,348  $ 2,863  $ 2,562 

 

                    

Key Ratios

                    

 

                    

Basic Earnings Per Common Share

 $ 1.30  $ 1.02  $ 1.00  $ 0.86  $ 0.77 

Diluted Earnings Per Common Share

  1.30   1.02   1.00   0.86   0.77 

Dividends Per Common Share

  0.11   0.11   0.11   0.11   0.11 

 

                    

Net Interest Margin (1)

  3.37%  3.52%  3.63%  3.83%  3.99%

Efficiency Ratio (1)(2)

  63.28%  65.53%  61.80%  59.39%  60.43%

Return on Assets

  1.26%  1.16%  1.20%  1.03%  0.96%

Return on Common Equity

  15.74%  12.44%  12.08%  10.64%  10.16%                     

(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 

 

 June 30,  March 31,  December 31,  September 30,  June 30, 

 

 2021  2021  2020  2020  2020 

 

 (Amounts in thousands, except per share data) 

Cash and due from banks

 $ 16,418  $ 15,108  $ 12,012  $ 17,403  $ 14,527 

Interest-bearing deposits in banks and other

  140,073   50,199   46,278   47,848   25,246 

Securities

  448,072   379,187   352,082   317,761   301,726 

Net loans/leases

  666,738   700,399   668,321   681,060   697,881 

Goodwill and core deposit intangible

  11,819   11,914   12,018   12,125   12,232 

Other assets

  53,629   50,826   50,888   50,105   49,485 

Total assets

 $ 1,336,749  $ 1,207,633  $ 1,141,599  $ 1,126,302  $ 1,101,097 

 

                    

Deposits

 $ 1,188,997  $ 1,068,197  $ 987,254  $ 960,773  $ 939,066 

Subordinated debentures

  20,155   5,155   5,155   5,155   5,155 

Senior secured term note

  12,056   12,445   12,833   13,222   13,611 

Borrowings

  5,000   4,000   14,000   29,000   29,000 

Other liabilities

  11,131   7,138   10,602   10,161   9,758 

Stockholders’ equity

  99,410   110,698   111,755   107,991   104,507 

Total liabilities and stockholders’ equity

 $ 1,336,749  $ 1,207,633  $ 1,141,599  $ 1,126,302  $ 1,101,097 

ASSET QUALITY DATA

(Amounts in thousands)

 June 30,  March 31,  December 31,  September 30,  June 30, 

 

 2021  2021  2020  2020  2020 

 

 
   
   
   
   
  

Non-accrual loans

 $ 8,228  $ 6,361  $ 7,013  $ 8,584  $ 8,427 

Accruing loans past due 90 days or more

  –   –   –   196   – 

Troubled debt restructures – accruing

  1,958   1,996   2,057   2,176   2,361 

Total nonperforming loans

 $ 10,186  $ 8,357  $ 9,070  $ 10,956  $ 10,788 

Other real estate owned

  –   –   1   1   762 

Total nonperforming assets

 $ 10,186  $ 8,357  $ 9,071  $ 10,957  $ 11,550 

 

                    

Total loans

 $ 677,967  $ 711,515  $ 679,085  $ 691,003  $ 707,983 

Allowance for loan losses

 $ 11,229  $ 11,116  $ 10,764  $ 9,943  $ 10,102 

 

 $ 666,738  $ 700,399  $ 668,321  $ 681,060  $ 697,881 

Nonperforming Assets to total Assets

  0.76%  0.69%  0.79%  0.97%  1.05%

Nonperforming loans to total loans

  1.50%  1.17%  1.34%  1.59%  1.52%

Allowance for loan losses to total loans

  1.66%  1.56%  1.59%  1.44%  1.43%

Allowance for loan losses to nonperforming loans

  110.2%  133.0%  118.7%  90.8%  93.6%

 

 

 For the Quarter Ended 

 

 June 30,  March 31,  December 31,  September 30,  June 30, 

ROLLFORWARD OF ALLOWANCE

 2021  2021  2020  2020  2020 

 

 
   
   
   
   
  

Beginning Balance

 $ 11,116  $ 10,764  $ 9,943  $ 10,102  $ 8,160 

Provision

  –   500   1,715   2,615   2,505 

Loans charged off

  61   582   1,334   2,892   639 

Loan recoveries

  174   434   440   118   76 

Net charge-offs

  (113)  148   894   2,774   563 

Ending Balance

 $ 11,229  $ 11,116  $ 10,764  $ 9,943  $ 10,102 

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 

 

 June 30, 2021  March 31, 2021  June 30, 2020 

 

 Average  
   Average  Average  
   Average  Average  
   Average 

 

 Balance  Interest  Rate  Balance  Interest  Rate  Balance  Interest  Rate 

Interest Earning Assets:

 
   
   
   
   
   
   
   
   
  

Interest-bearing deposits and other

 $ 105,385  $ 48   0.18% $ 74,108  $ 41   0.22% $ 17,056  $ 40   0.95%

Investment securities:

                                    

Taxable investment securities

  365,329   1,759   1.93%  320,740   1,721   2.18%  241,831   1,618   2.69%

Tax-exempt investment securities

  52,197   378   3.73%  52,122   384   3.83%  46,443   371   4.13%

Total Investment securities

  417,526   2,137   2.16%  372,862   2,105   2.41%  288,274   1,989   2.92%

Loans

  700,109   8,621   4.94%  685,654   8,155   4.82%  701,080   8,658   4.97%

 

                                    

Total Earning Assets

 1,223,020  10,806   3.58% 1,132,624  10,301   3.73% 1,006,410  10,687   4.31%

Allowance for loan losses

  (11,221)          (11,075)          (8,769)        

Cash and due from banks

  17,124           16,052           15,232         

Other assets

  58,008           58,706           58,475         

 

                                    

Total Assets

 $ 1,286,931          $ 1,196,307          $ 1,071,348         

 

                                    

Interest Bearing Liabilities:

                                    

Interest bearing checking accounts

 $ 302,946  $ 180   0.24% $ 284,527  $ 161   0.23% $ 298,831  $ 157   0.21%

Savings and money market deposits

  396,476   96   0.10%  356,615   84   0.10%  305,966   105   0.14%

Time deposits

  77,155   145   0.75%  81,807   170   0.84%  101,808   377   1.49%

Total interest bearing deposits

  776,577   421   0.22%  722,949   415   0.23%  706,605   639   0.36%

Subordinated debentures and notes

  13,067   117   3.59%  5,155   41   3.23%  5,155   45   3.53%

Borrowings

  16,501   104   2.51%  26,369   127   1.96%  39,436   130   1.32%

 

                                    

Total Interest-Bearing Liabilities

 806,145  642   0.32% 754,473  583   0.31% 751,196  814   0.44%

 

                                    

Interest Rate Spread

          3.26%          3.42%          3.87%

 

                                    

Noninterest checking accounts

  371,146           322,667           212,196         

Other liabilities

  6,283           7,373           6,570         

Total liabilities

  1,183,574           1,084,513           969,962         

Total Stockholders’ equity

  103,357           111,794           101,386         

Total Liabilities and

                                    

Stockholders’ Equity

 $ 1,286,931          $ 1,196,307          $ 1,071,348         

 

                                    

Net Interest Income/Margin

     10,164   3.37%     9,718   3.52%     9,873   3.99%

 

                                    

(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. AND SUBSIDIARIES
AVERAGE BALANCE SHEET WITH RESULTANT INTEREST AND RATES
Average Balance Sheet with Resultant Interest and Rates

(Amounts in thousands)

 
   
   
   
   
   
  

(yields on a tax-equivalent basis)(1)

 For the Six Months Ended 

 

 June 30, 2021  June 30, 2020 

 

 Average  
   Average  Average  
   Average 

 

 Balance  Interest  Rate  Balance  Interest  Rate 

Interest Earning Assets:

 
   
   
   
   
   
  

Interest-bearing deposits and other

 $ 89,833  $ 89   0.20% $ 27,362  $ 202   1.48%

Investment securities:

                        

Taxable investment securities

  343,158   3,479   2.04%  223,178   3,123   2.81%

Tax-exempt investment securities

  52,160   762   3.78%  43,659   695   4.11%

Total Investment securities

  395,318   4,241   2.27%  266,837   3,818   3.03%

Loans

  692,921   16,776   4.88%  664,941   16,691   5.05%

 

                        

Total Earning Assets

 1,178,072  21,106   3.65% 959,140  20,711   4.38%

Allowance for loan losses

  (11,148)          (8,392)        

Cash and due from banks

  16,591           15,427         

Other assets

  59,141           58,696         

 

                        

Total Assets

 $ 1,242,656          $ 1,024,871         

 

                        

Interest Bearing Liabilities:

                        

Interest bearing checking accounts

 $ 293,787  $ 341   0.23% $ 284,840  $ 491   0.35%

Savings and money market deposits

  376,656   180   0.10%  294,040   467   0.32%

Time deposits

  79,468   315   0.80%  107,837   858   1.60%

Total interest bearing deposits

  749,911   836   0.22%  686,717   1,816   0.53%

Subordinated debentures

  9,133   158   3.49%  5,155   98   3.81%

Borrowings

  21,408   230   2.17%  32,018   308   1.93%

 

                        

Total Interest-Bearing Liabilities

 780,452  1,224   0.32% 723,890  2,222   0.62%

 

                        

Interest Rate Spread

          3.33%          3.76%

 

                        

Noninterest checking accounts

  347,041           193,372         

Other liabilities

  6,825           6,715         

Total liabilities

  1,134,318           923,977         

Total Stockholders’ equity

  108,338           100,894         

Total Liabilities and

                        

Stockholders’ Equity

 $ 1,242,656          $ 1,024,871         

 

                        

Net Interest Income/Margin

     19,882   3.44%     18,489   3.92%

 

                        

(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.

SOURCE: Blackhawk Bancorp, Inc.

View source version on accesswire.com:
https://www.accesswire.com/656488/Blackhawk-Bancorp-Announces-2021-Second-Quarter-Earnings

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