Blackhawk Bancorp Announces 2020 First Quarter Earnings

BELOIT, WI / ACCESSWIRE / April 20, 2020 / Blackhawk Bancorp, Inc. (OTCQX:BHWB) reported net income of $2.07 million for the three months ended March 31, 2020, as compared to $2.35 million for the previous quarter, and $1.08 million for the quarter ended March 31, 2019. Fully diluted earnings per share for the three months ended March 31, 2020 decreased 11% to $0.63, as compared to $0.71 for the quarter ended December 31, 2019, but increased by $0.30, or 91%, compared to $0.33 for the quarter ended March 31, 2019. The first quarter results produced a Return on Average Equity (ROAE) of 8.31% and a Return on Average Assets (ROAA) of 0.85%.

The decrease in earnings as compared to the most recent quarter was driven by a $673,000 decrease in noninterest income, reflecting decreases of $352,000 in gain on sale of mortgage loans and $359,000 in other income. The decrease in other income was due to non-recurring items in the previous quarter. The reduction in non-interest income was partially offset by a $215,000 decrease in the provision for loan losses.

The increase in net income and earnings per share compared to the first quarter of 2019 was due to the prior year’s first quarter results including $1.34 million (after tax) of non-recurring merger and integration related expenses. Excluding the prior year’s non-recurring merger and integration expenses, net income for the first quarter of 2020 decreased by $346,000, and diluted earnings per share decreased by $0.10, or 14%, compared to the first quarter of last year. The decrease included a $495,000, or 183% increase in the provision for loan losses.

“The first quarter’s results reflect minimal impact related to the COVID-19 global pandemic that has gripped the nation,” said Todd James, the Company’s Chairman and CEO. “We expect increased loan losses in the quarters ahead, and we’re in the process of running credit stress tests and assessing the effectiveness of the government stimulus programs that were enacted to soften the impact of the crisis. Our first priority was and is the safety and well-being of our employees, customers and the communities we serve. We have implemented appropriate social distancing protocols and measures to comply with the “Safer at Home” orders and similar guidance issued by authorities, and have accordingly continued to provide essential services. We have also made helping our customers understand and gain access to the stimulus programs available to them a priority. Our dedicated credit team and business bankers processed over six hundred Payroll Protection Program applications over a two-week period, securing over $70 million under the program, getting funds into the hands of businesses that need it. I could not be more proud of the way our employees have stepped up to the challenges of this crisis, and have continued to provide the products, services, counseling and financial guidance that our customers have come to expect from Blackhawk,” added James.

Total assets increased by $13.1 million, or 1.4%, to $977 million at March 31, 2020, as compared to $963.9 million as of December 31, 2019. The increase in assets reflects a $27.8 million increase in securities available for sale, which was funded by $13.5 million of deposit growth and a $16.8 million reduction in cash equivalents. Net loans increased $0.9 million during the first quarter to $626.8 million, as compared to $625.9 million at the end of the prior year.

Net Interest Income

Net interest income totaled $8.62 million for the quarter ending March 31, 2020, an increase of $44,000, or 0.5%, as compared to $8.57 million for the fourth quarter of 2019, and an increase of $822,000, or 10.5%, as compared to $7.79 million for the quarter ended March 31, 2019. The net interest margin for the quarter stayed flat at 3.83% compared to the most recent quarter ended December 31, 2019, and decreased by nine basis points compared to the 3.92% reported for the first quarter of last year.

Average total earning assets for the quarter ended March 31, 2020 increased $15 million to $911.9 million compared to $896.9 million in the fourth quarter of 2019, despite a $13.6 million decrease in average total loans. The decrease in average total loans was offset by an $11.5 million increase in investment securities, a shift in the asset mix, which had a negative effect on net interest income and the net interest margin. The negative effect of that change in asset mix was offset by a $13.2 million increase in average non-interest checking accounts, which primarily funded a $17.1 million increase in average interest-bearing deposits in other financial institutions.

The increase in net interest income for the quarter compared to the first quarter of 2019 was driven by a $91.7 million increase in earning assets. This includes a $64.9 million, or 11.5% growth in average total loans. Total average deposits for the quarter increased by $77.3 million, or 10.1% compared to the first quarter of 2019.

Provision for Loan Losses and Credit Quality

The provision for loan losses for the quarter ended March 31, 2020, totaled $765,000 as compared to $980,000 for the quarter ended December 31, 2019, and $270,000 for the first quarter of 2019. The decrease in the provision compared the most recent quarter was due to the previous quarter including elevated provisions related to a specific credit with exposure to the energy related frac sand industry. The loss on this credit, which was provisioned for in the fourth quarter of 2019, was charged off during the first quarter of 2020, accounting for $450,000 of the first quarter net charge-offs, which equaled $546,000.

The increase in the provision compared to the first quarter of 2019 was driven by uncertainty around the COVID-19 crisis. The Company’s management expects loan losses to increase in future quarters. The company is in process of developing stress tests and related assumptions regarding depth, breadth and longevity of the impending recession, and the effectiveness of the stimulus packages being implemented to soften the impact.

Total nonperforming assets, which include troubled debt restructures that are performing in accordance with their modified terms, equaled $13.4 million as of March 31, 2020, as compared to $13.6 million as of December 31, 2019, and $7.70 million at March 31, 2019. At March 31, 2020, the ratio of nonperforming assets to total assets equaled 1.37%, as compared to 1.41% at December 31, 2019, and 0.80% at March 31, 2019. The allowance for loan losses to total loans was 1.29% as of March 31, 2020, as compared to 1.25% at December 31, 2019, and 1.28% as of March 31, 2019. The ratio of the allowance for loan losses to nonperforming loans was 61.4% as of March 31, 2020, as compared to 58.8% at December 31, 2019, and 102.5% at March 31, 2019.

Non-Interest Income and Operating Expenses

Non-interest income for the quarter ended March 31, 2020, totaled $3.2 million, which was a $673,000 decrease as compared to $3.87 million for the quarter ended December 31, 2019, and a $221,000 increase compared to $2.98 million for the first quarter of 2019. The decrease compared to the most recent quarter included decreases of $353,000 and $105,000 in gain on sale of loans and service charges on deposits, respectively. In addition, other income decreased by $359,000 due to non-recurring income realized in the fourth quarter of 2019, including $208,000 of recoveries on acquired charged-off loans, and $125,000 in life insurance proceeds. The $221,000 increase in non-interest income compared to the same quarter a year ago includes an increase of $262,000 from the sale and servicing of loans and an increase of $89,000 in deposit service charges. These increases were offset by decreases of $60,000 and $115,000 in net gains on sale of securities and other income, respectively.

Operating expenses for the first quarter ending March 31, 2020, totaled $8.49 million, which were flat compared to the quarter ended December 31, 2019, and down by $761,000 compared to the first quarter of 2019. The decrease compared to the first quarter of 2019 was due to $1.83 million in non-recurring merger and integration expenses being included in the 2019 first quarter results. Excluding the prior year merger and integration expenses, total operating expenses for the first quarter of 2020 increased by $1.07 million, or 14.4%, with $675,000 of the increase being in salaries and employee benefits.

Outlook

The outlook for Blackhawk as well as the entire banking industry is clouded by uncertainty related to the COVID-19 pandemic crisis. Blackhawk expects to see elevated credit losses in future quarters as the economic impact of the crisis plays out, and will be 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. In addition to responding to this crisis, 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 the 2019 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, 2020 AND DECEMBER 31, 2019
(UNAUDITED)

 
  March 31,     December 31,  
Assets
  2020     2019  
 
  (Dollars in thousands, except  
 
  share and per share data)  
Cash and due from banks
  15,240     12,320  
Interest-bearing deposits in banks and other institutions
    1,010       20,761  
Total cash and cash equivalents
    16,250       33,081  
Certificates of deposit in banks and other institutions
    5,765       6,325  
Equity securities at fair value
    2,319       2,365  
Securities available-for-sale
    262,846       235,083  
Loans held for sale
    6,255       6,540  
Federal Home Loan Bank stock, at cost
    900       742  
Loans, less allowance for loan losses of $8,160 and $7,941
               
   at March 31, 2020 and December 31, 2019, respectively
    620,542       619,359  
Premises and equipment, net
    20,808       21,025  
Goodwill and core deposit intangible
    12,340       12,455  
Mortgage servicing rights
    3,119       3,106  
Cash surrender value of bank-owned life insurance
    10,903       11,118  
Other assets
    14,958       12,662  
Total assets
  977,005     963,861  
 
               
Liabilities and Stockholders’ Equity
               
 
               
Liabilities
               
   Deposits:
               
      Noninterest-bearing
  161,674     155,978  
      Interest-bearing
    681,387       673,631  
   Total deposits
    843,061       829,609  
Short-term borrowings
           
Subordinated debentures and notes (including $1,031 at fair value at
               
   March 31, 2020 and December 31, 2019)
    5,155       5,155  
Senior secured term note
    14,000       14,000  
Other borrowings
    10,000       10,000  
Other liabilities
    6,083       7,773  
Total liabilities
    878,299       866,537  
 
               
Stockholders’ equity
               
Common stock, $0.01 par value, 10,000,000 shares authorized;
               
  3,421,675 and 3,399,803 shares issued as of March 31, 2020 and
               
  December 31, 2019, respectively
    34       34  
Additional paid-in capital
    34,151       33,989  
Retained earnings
    62,007       60,295  
Treasury stock, 106,018 and 105,185 shares at cost as of March 31, 2020
               
  and December 31, 2019, respectively
    (1,433 )     (1,408 )
Accumulated other comprehensive income (loss)
    3,947       4,414  
Total stockholders’ equity
    98,706       97,324  
Total liabilities and stockholders’ equity
  977,005     963,861  
                 

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

 
  Three months ended March 31,  
 
  2020     2019  
 
  (Amounts in thousands, except per share data)  
 
           
Interest Income:
           
Interest and fees on loans
  8,033     7,542  
Interest and dividends on available-for-sale securities:
               
Taxable
    1,505       1,345  
Tax-exempt
    323       448  
Interest on other financial institutions
    162       158  
Total interest income
    10,023       9,493  
Interest Expense:
               
Interest on deposits
    1,177       1,463  
Interest on short-term borrowings
    1       105  
Interest on subordinated debentures
    53       65  
Interest on senior secured term note
    156       67  
Interest on other
    21        
Total interest expense
    1,408       1,700  
Net interest income before provision for loan losses
    8,615       7,793  
Provision for loan losses
    765       270  
Net interest income after provision for loan losses
    7,850       7,523  
 
               
Noninterest Income:
               
Service charges on deposits accounts
    897       808  
Net gain on sale of loans
    905       581  
Net loan servicing income
    110       172  
Debit card interchange fees
    832       789  
Net gains on sales of securities available-for-sale
    99       159  
Net other gains (losses)
           
Increase in cash surrender value of bank-owned life insurance
    85       83  
Change in value of equity securities
    (70 )     23  
Other
    343       365  
Total noninterest income
    3,201       2,980  
 
               
Noninterest Expenses:
               
Salaries and employee benefits
    5,035       4,585  
Occupancy and equipment
    1,083       992  
Data processing
    510       1,827  
Debit card processing and issuance
    397       334  
Advertising and marketing
    97       108  
Amortization of core deposit intangible
    115       40  
Professional fees
    367       579  
Office Supplies
    90       86  
Telephone
    150       116  
Other
    646       584  
Total noninterest expenses
    8,490       9,251  
Income before income taxes
    2,561       1,252  
Provision for income taxes
    487       173  
Net income
  2,074     1,079  
 
               
Key Ratios
           
 
           
Basic Earnings Per Common Share
  0.63     0.33  
Diluted Earnings Per Common Share
    0.63       0.33  
Dividends Per Common Share
    0.11       0.10  
 
               
Net Interest Margin (1)
    3.83 %     3.92 %
Efficiency Ratio (1)(2)
    71.89 %     86.07 %
Return on Assets
    0.85 %     0.50 %
Return on Common Equity
    8.31 %     5.12 %

(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,  
 
  2020     2019     2019     2019     2019  
 
  (Dollars in thousands, except per share data)  
Interest Income:
                             
Interest and fees on loans
  8,033     8,284     8,580     8,043     7,542  
Interest on available-for-sale securities:
                                       
Taxable
    1,505       1,496       1,591       1,659       1,345  
Tax-exempt
    323       331       356       451       448  
Interest on other financial institutions
    162       107       133       130       158  
Total interest income
    10,023       10,218       10,660       10,283       9,493  
Interest Expense:
                                       
Interest on deposits
    1,177       1,400       1,485       1,458       1,463  
Interest on subordinated debentures
    53       58       61       65       65  
Interest on senior secured term note
    156       165       173       186       67  
Interest on other borrowings
    22       24       97       98       105  
Total interest expense
    1,408       1,647       1,816       1,807       1,700  
Net interest income before provision for loan losses
    8,615       8,571       8,844       8,476       7,793  
Provision for loan losses
    765       980       580       180       270  
Net interest income after provision for loan losses
    7,850       7,591       8,264       8,296       7,523  
 
                                       
Noninterest Income:
                                       
Service charges on deposits accounts
    897       1,002       1,019       885       808  
Net gain on sale of loans
    905       1,257       1,333       1,040       581  
Net loan servicing income
    110       119       (91 )     171       172  
Debit card interchange fees
    832       876       910       827       789  
Net gains on sales of securities available-for-sale
    99             866       146       159  
Net other gains (losses)
          (87 )     81       94        
Increase in cash surrender value of bank-owned life insurance
    85       75       74       74       83  
Other
    273       632       455       390       388  
Total noninterest income
    3,201       3,874       4,647       3,627       2,980  
 
                                       
Noninterest Expenses:
                                       
Salaries and employee benefits
    5,035       4,964       4,992       4,841       4,585  
Occupancy and equipment
    1,083       1,038       1,085       1,000       992  
Data processing
    510       520       657       571       1,827  
Debit card processing and issuance
    397       449       402       389       334  
Advertising and marketing
    97       101       100       142       108  
Amortization of intangibles
    115       119       119       119       40  
Professional fees
    367       300       387       393       579  
Office Supplies
    90       118       112       89       86  
Telephone
    150       153       137       130       116  
Other
    646       730       505       701       584  
Total noninterest expenses
    8,490       8,492       8,496       8,375       9,251  
Income before income taxes
    2,561       2,973       4,415       3,548       1,252  
Provision for income taxes
    487       621       996       794       173  
Net income
  2,074     2,352     3,419     2,754     1,079  
                                         
Key Ratios
                             
 
                             
Basic Earnings Per Common Share
  0.63     0.71     1.03     0.83     0.33  
Diluted Earnings Per Common Share
    0.63       0.71       1.03       0.83       0.33  
Dividends Per Common Share
    0.11       0.10       0.10       0.10       0.10  
 
                                       
Net Interest Margin (1)
    3.83 %     3.83 %     3.93 %     3.88 %     3.92 %
Efficiency Ratio (1)(2)
    71.89 %     67.25 %     67.19 %     69.77 %     86.07 %
Return on Assets
    0.85 %     0.97 %     1.40 %     1.15 %     0.50 %
Return on Common Equity
    8.31 %     9.60 %     14.25 %     12.54 %     5.12 %

(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,  
 
  2020     2019     2019     2019     2019  
 
  (Amounts in thousands, except per share data)  
Cash and due from banks
  15,240     12,320     18,778     17,364     14,581  
Interest-bearing deposits in banks and other
    6,775       27,086       22,478       16,442       35,862  
Securities
    265,165       237,448       232,165       256,262       270,665  
Net loans/leases
    626,797       625,899       640,576       616,925       583,350  
Goodwill and core deposit intangible
    12,340       12,455       12,575       12,649       12,768  
Other assets
    50,688       48,653       49,786       49,829       49,210  
Total assets
  977,005     963,861     976,358     969,471     966,436  
 
                                       
Deposits
  843,061     829,609     843,703     837,319     854,505  
Subordinated debentures
    5,155       5,155       5,155       5,155       5,155  
Senior secured term note
    14,000       14,000       14,000       14,000       14,000  
Borrowings
    10,000       10,035       10,042       13,992        
Other liabilities
    6,083       7,738       7,516       6,614       5,360  
Stockholders’ equity
    98,706       97,324       95,942       92,391       87,416  
Total liabilities and stockholders’ equity
  977,005     963,861     976,358     969,471     966,436  
                                         
ASSET QUALITY DATA
                             
(Amounts in thousands)
  March 31,     December 31,     September 30,     June 30,     March 31,  
 
  2020     2019     2019     2019     2019  
 
                             
Non-accrual loans
  9,680     10,642     5,524     3,712     3,815  
Accruing loans past due 90 days or more
    845             104       272        
Troubled debt restructures – accruing
    2,770       2,866       3,163       3,321       3,546  
Total nonperforming loans
  13,295     13,508     8,791     7,305     7,361  
Other real estate owned
    123       54       319       307       339  
Total nonperforming assets
  13,418     13,562     9,110     7,612     7,700  
 
                                       
Total loans
  634,957     633,840     648,900     624,674     590,895  
Allowance for loan losses
  8,160     7,941     8,324     7,749     7,545  
 
  626,797     625,899     640,576     616,925     583,350  
Nonperforming Assets to total Assets
    1.37 %     1.41 %     0.93 %     0.79 %     0.80 %
Nonperforming loans to total loans
    2.09 %     2.13 %     1.35 %     1.17 %     1.25 %
Allowance for loan losses to total loans
    1.29 %     1.25 %     1.28 %     1.24 %     1.28 %
Allowance for loan losses to nonperforming loans
    61.4 %     58.8 %     94.7 %     106.1 %     102.5 %
                                         
 
  For the Quarter Ended  
 
  March 31,     December 31,     September 30,     June 30,     March 31,  
ROLLFORWARD OF ALLOWANCE
  2020     2019     2019     2019     2019  
 
                             
Beginning Balance
  7,941     8,324     7,749     7,545     7,339  
Provision
    765       980       580       180       270  
Loans charged off
    633       1,463       52       11       102  
Loan recoveries
    87       100       47       35       38  
Net charge-offs
    546       1,363       5       (24 )     64  
Ending Balance
  8,160     7,941     8,324     7,749     7,545  
                                         

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, 2020     December 31, 2019     March 31, 2019  
 
  Average
Balance
    Interest     Average
Rate
    Average
Balance
    Interest     Average
Rate
    Average
Balance
    Interest     Average
Rate
 
Interest Earning Assets:
                                                     
  Interest-bearing deposits and other
  37,668     162       1.74 %   20,557     107       2.09 %   27,139     158       2.37 %
  Investment securities:
                                                                       
Taxable investment securities
    204,526       1,505       2.96 %     193,439       1,496       3.07 %     170,477       1,345       3.20 %
Tax-exempt investment securities
    40,876       323       4.09 %     40,513       331       4.16 %     58,645       448       4.03 %
Total Investment securities
    245,402       1,828       3.15       233,952       1,827       3.26 %     229,122       1,793       3.41 %
  Loans
    628,802       8,033       5.14 %     642,399       8,284       5.12 %     563,927       7,542       5.42 %
 
                                                                       
Total Earning Assets
  911,872     10,023       4.46 %   896,908     10218       4.56 %   820,188     9,493       4.76 %
  Allowance for loan losses
    (8,015 )                     (8,154 )                     (7,446 )                
  Cash and due from banks
    15,623                       15,207                       16,567                  
  Other assets
    58,984                       59,337                       52,023                  
 
                                                                       
Total Assets
  978,464                     963,298                     881,332                  
 
                                                                       
Interest Bearing Liabilities:
                                                                       
  Interest bearing checking accounts
  270,849     334       0.50 %   255,516     361       0.56 %   243,543     315       0.52 %
  Savings and money market deposits
    282,113       362       0.52 %     294,580       513       0.69 %     267,052       642       0.97 %
  Time deposits
    113,865       481       1.70 %     118,497       526       1.76 %     111,365       506       1.84 %
Total interest bearing deposits
    666,827       1,177       0.71 %     668,593       1,400       0.83 %     621,960       1,463       0.95 %
    Subordinated debentures and notes
    5,155       53       4.15 %     5,155       58       4.45 %     5,155       65       5.11 %
Borrowings
    24,601       178       2.91 %     24,243       189       3.09 %     21,616       172       3.23 %
 
                                                                       
Total Interest-Bearing Liabilities
  696,583     1,408       0.81 %   697,991     1,647       0.94 %   648,731     1,700       1.06 %
 
                                                                       
Interest Rate Spread
                    3.65 %                     3.62 %                     3.70 %
 
                                                                       
Noninterest checking accounts
    174,607                       161,432                       142,178                  
Other liabilities
    6,868                       6,641                       4,993                  
Total liabilities
    878,058                       866,064                       795,902                  
Total Stockholders’ equity
    100,406                       97,234                       85,430                  
Total Liabilities and
                                                                       
 Stockholders’ Equity
  978,464                     963,298                     881,332                  
 
                                                                       
Net Interest Income/Margin
          8,615       3.83 %           8,571       3.83 %           7,793       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.

Blackhawk Bancorp, Inc.

Todd J. James, Chairman & CEO
tjames@blackhawkbank.com
(608) 364-8911

Matthew McDonnell, SVP & CFO
mmcdonnell@blackhawkbank.com
Phone: (608) 364-8911

SOURCE: Blackhawk Bancorp, Inc.

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https://www.accesswire.com/586021/Blackhawk-Bancorp-Announces-2020-First-Quarter-Earnings

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