Blackhawk Bancorp Announces 2021 First Quarter Earnings

Rhea-AI Summary

Blackhawk Bancorp (OTCQX:BHWB) reported a net income of $3.43 million for Q1 2021, marking a 2% increase quarter-over-quarter and a 65% increase year-over-year. Fully diluted EPS rose to $1.02, up 62% from $0.63 in Q1 2020. Total assets increased by $66 million to $1.2 billion, while total deposits grew by $81 million to $1.1 billion. Despite a decrease in net interest margin to 3.52%, strong net interest income growth at 13% year-over-year is notable. However, risks remain due to economic uncertainties stemming from the pandemic.

Positive

• Net income increased by $1.08 million, or 65%, compared to Q1 2020.
• Fully diluted EPS rose by $0.39, or 62%, compared to Q1 2020.
• Total assets increased by $66 million, or 6%, from Q4 2020.
• Total loans increased by $32.4 million, or 5%.

Negative

• Net interest margin decreased from 3.83% in Q1 2020 to 3.52% in Q1 2021.
• Operating expenses rose by $1.22 million, or 14%, compared to Q1 2020.
• Concerns over elevated credit loss risks due to pandemic-related economic impacts.

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
tjames@blackhawkbank.com

Matthew McDonnell, SVP & CFO
mmcdonnell@blackhawkbank.com

Phone: (608) 364-8911

SOURCE: Blackhawk Bancorp, Inc.

View source version on accesswire.com:
https://www.accesswire.com/639579/Blackhawk-Bancorp-Announces-2021-First-Quarter-Earnings

FAQ

What were Blackhawk Bancorp's earnings for Q1 2021?

Blackhawk Bancorp reported a net income of $3.43 million for Q1 2021.

What is the EPS for Blackhawk Bancorp in Q1 2021?

The fully diluted EPS for Blackhawk Bancorp in Q1 2021 was $1.02.

How did Blackhawk Bancorp's total assets change in Q1 2021?

Total assets increased by $66 million to $1.2 billion in Q1 2021.

What are the risks highlighted by Blackhawk Bancorp in their press release?

Blackhawk Bancorp noted risks of elevated credit losses due to ongoing economic uncertainties from the pandemic.

How much did Blackhawk Bancorp's total deposits increase in Q1 2021?

Total deposits grew by $81 million to $1.1 billion in Q1 2021.