BELOIT, WI / ACCESSWIRE / April 20, 2022 / Blackhawk Bancorp, Inc. (OTCQX:BHWB), (the "Company") parent company of Blackhawk Bank (the "Bank"), today reported net income of $2.62 million for the quarter ended March 31, 2022, a 10% decrease from the $2.91 million earned the in the preceding quarter, and a 24% decrease compared to the $3.43 million earned during the first quarter of 2021. Diluted Earnings per Share (EPS) for the current quarter was $0.92, a decrease of $0.10, or 10%, compared to both the linked quarter and the quarter ended March 31, 2021. The first quarter of 2022 results produced a Return on Average Equity (ROAE) of 10.82% and a Return on Average Assets (ROAA) of 0.80%.
The decrease in earnings during the current quarter, compared to the linked quarter, included a $503,000 decrease in income from the sale and servicing of mortgage loans as a result of rising interest rates and a slowing housing market. This was partially offset by a $181,000 decrease in salaries and employee benefits.
The decrease in net income for the first quarter of 2022, compared to the first quarter of the prior year, included a $1.18 million decrease in income from the sale and servicing of mortgage loans and a $460,000 increase in operating expenses, which was partially offset by a $500,000 decrease in provision for loan losses.
"Our first quarter results reflect the continued successful implementation of our growth strategies, which resulted in the expansion of the loan portfolio," said Todd James, Chairman and CEO. "Operating results for the first quarter were strong, benefitting from Paycheck Protection Program ("PPP") loan fee income and low credit costs. As we continue to wind down from the unprecedented events of the pandemic, and PPP loan forgiveness nears its conclusion, we have shifted our efforts towards our strategic growth plan of enhancing product offerings, improving the effectiveness and efficiency of delivery channels and pursuing organic growth opportunities within our markets."
"We had another solid quarter of loan production, with good growth in commercial and CRE loan categories," James continued. "As a result, loans held for investment excluding PPP grew by $31.3 million during the quarter, or 18.4% annualized. We are achieving strong growth in our target markets of RV parks and campgrounds and local manufacturers. While our pipeline remains strong and we are optimistic about our business outlook in the near term, we remain cautious about our growth prospects in the long term, as inflation concerns and a possible recession could impact loan growth towards the end of the year."
First Quarter 2022 Financial Highlights (at or for the three months ended March 31, 2022)
- Net income of $2.62 million, or $0.92 per diluted share, compared to $3.43 million, or $1.02 per diluted share, in the first quarter of 2021.
- Net interest margin of 3.13%, compared to 3.12% in the preceding quarter and 3.52% in the first quarter a year ago.
- Annualized return on average assets was 0.80%, compared to 1.16% in the first quarter of 2021.
- Annualized return on average equity was 10.82%, compared to 12.44% in the first quarter a year ago.
- Excluding Paycheck Protection Program (PPP) loans, loans held for investment increased $103.6 million, or 16.9% to $716.0 million at March 31, 2022, compared to $612.5 million a year ago.
- Total deposits grew by $131.4 million to $1.20 billion at March 31, 2022 compared to $1.07 billion a year earlier.
- Allowance for loan losses to total loans of 1.51% at quarter end.
- Nonperforming assets to total assets of 0.52% at March 31, 2022 compared to 0.69% a year ago.
- On February 16, 2022, paid a quarterly cash dividend of $0.12 per share, marking the 31 st consecutive quarterly cash dividend paid, and a 9% increase compared to the last 8 quarterly cash dividends.
Net Interest Income
Net interest income totaled $9.66 million for the quarter ended March 31, 2022, which was essentially flat compared to the fourth quarter of 2021, and a decrease of $61,000, or less than one percent, compared to the first quarter of the prior year. Interest income benefitted from the recognition of PPP loan fees as loans are forgiven by the SBA. During the first quarter of 2022, the Company recognized PPP fee income of $539,000 compared to $535,000 the most recent quarter and $795,000 the first quarter of 2021. As of March 31, 2022, there was $366,000 of net deferred PPP fee income remaining.
The Company's net interest margin was 3.13% for the first quarter of 2022, compared to 3.12% for the quarter ended December 31, 2021, and 3.52% for the first quarter of 2021. "While loan growth and loan yields are starting to improve, the influx of deposits over the last year has hampered NIM expansion. Going forward, we plan to capitalize on new loan growth by converting some of those lower yielding investments into the loan portfolio at higher yields," said James. "Additionally, with the recent rate increase enacted by the Federal Reserve at the end of the quarter, we anticipate improvement in our NIM in future quarters, especially with the possibility of additional rate increases throughout the year."
The tax-equivalent yield on earning assets and cost of deposits remained even for the first quarter of 2022, compared to the fourth quarter of 2021, at 3.32% and 0.11%, respectively. While earning assets dropped 41 basis points compared to 3.73% for the first quarter of 2021, and the cost of deposits decreased five basis points compared to 0.16% in the first quarter of 2021.
In addition, interest expense on subordinated debentures increased by $154,000, reflecting the issuance of $15.0 million of subordinated debt, which was used to fund the share repurchase in the second quarter of 2021. Average total deposits for the first quarter of 2022 increased by $148.3 million to $1.19 billion compared to $1.05 billion in the first quarter of 2021. Average total loans for the first quarter of 2022 increased by $29.0 million, or 4%, compared to the prior year's first quarter. Excluding PPP loans, average total loans increased by $51.9 million, or 8%, to $697.8 million compared to $645.9 million for the quarter ended December 31, 2021 and increased $98.2 million, or 16%, compared to $599.5 million for the first quarter of 2021.
Provision for Loan Losses and Asset Quality
Due to the improvement in economic conditions, especially as it related to potential losses associated to the pandemic, along with the overall quality of the loan portfolio, the Company recorded no provision for loan losses for the quarters ended March 31, 2022, and December 31, 2021. This compared to a $500,000 provision for loan losses for the quarter ended March 31, 2021.
Total nonperforming assets, which include troubled debt restructures performing in accordance with their modified terms, equaled $6.9 million as of March 31, 2022, as compared to $7.3 million as of December 31, 2021, and $8.4 million at March 31, 2021. At March 31, 2022, the ratio of nonperforming loans to total loans equaled 0.93%, as compared to 1.02% at December 31, 2021, and 1.17% at March 31, 2021.
The allowance for loan losses to total loans was 1.51% as of March 31, 2022, compared to 1.57% at December 31, 2021, and 1.56% as of March 31, 2021. The Company expects that the allowance for loan losses will continue to shift downward as it reflects a more moderate allowance level compared to the higher allowance levels held during the course of the pandemic. The allowance for loan losses to nonperforming loans increased to 162.0% as of March 31, 2022, compared to 153.0% at December 31, 2021, and 133.0% at March 31, 2021.
Noninterest Income and Operating Expenses
Noninterest income for the quarter ended March 31, 2022, totaled $3.92 million, a $601,000 decrease compared to $4.52 million the prior quarter and a $1.12 million decrease from the $5.04 million recorded in the first quarter of 2021. The net revenue from the sale and servicing of mortgage loans decreased $503,000 and debit card interchange fees decreased $89,000 compared to the fourth quarter of 2021. The decline in noninterest income compared to the first quarter of 2021 was primarily due to a $1.18 million decrease in revenue from the sale and servicing of mortgage loans, which was partially offset by a $223,000 increase in deposit service fees.
Operating expenses for the quarter ended March 31, 2022, totaled $10.17 million, a decrease of $334,000, or 3%, compared to the quarter ended December 31, 2021, and an increase of $460,000, or 5%, compared to the first quarter of 2021. The increase compared to the first quarter of 2021 included a $488,000 increase in salary and employee benefits.
Capital
Tangible book value per share was $26.58 at March 31, 2022, compared to $31.41 at December 31, 2021 and $29.40 at March 31, 2021. The decrease in tangible book value per share during the current quarter was primarily due to a $15.7 million decrease in accumulated other comprehensive income ("AOCI") related primarily to an increase in the unrealized loss on available for sale securities reflecting the increase in interest rates during the current quarter. Excluding AOCI, tangible book value per share was $31.27 at March 31, 2022, an increase of $0.63 and $3.29 compared to December 21, 2021 and March 31, 2021, respectively.
About Blackhawk Bancorp
Blackhawk Bancorp, Inc. is headquartered in Beloit, Wisconsin, and is the parent company of Blackhawk Bank. The combined entity operates twelve full-service banking centers located in Rock County, Wisconsin, and the Illinois counties of Winnebago, Boone, McHenry, Lake, and Kane. 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
tjames@blackhawkbank.com
Phone: (608) 364-8911
Matthew McDonnell, SVP & CFO
mmcdonnell@blackhawkbank.com
BLACKHAWK BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
MARCH 31, 2022 AND DECEMBER 31, 2021
(UNAUDITED)
| March 31, | December 31, | |||||||
Assets | 2022 | 2021 | ||||||
| (Dollars in thousands, except | ||||||||
| share and per share data) | ||||||||
Cash and due from banks | $ | 13,413 | $ | 10,846 | ||||
Interest-bearing deposits in banks and other institutions | 40,189 | 55,720 | ||||||
Total cash and cash equivalents | 53,602 | 66,566 | ||||||
Certificates of deposit in banks and other institutions | 1,914 | 2,161 | ||||||
Equity securities at fair value | 2,500 | 2,553 | ||||||
Securities available-for-sale | 481,920 | 504,341 | ||||||
Loans held for sale | 1,711 | 2,585 | ||||||
Federal Home Loan Bank stock, at cost | 2,150 | 2,150 | ||||||
Loans, less allowance for loan losses of $10,995 and $11,125 | ||||||||
at March 31, 2022 and December 31, 2021, respectively | 714,745 | 696,292 | ||||||
Premises and equipment, net | 20,670 | 20,778 | ||||||
Goodwill and core deposit intangible | 11,536 | 11,628 | ||||||
Mortgage servicing rights | 4,042 | 3,833 | ||||||
Cash surrender value of bank-owned life insurance | 11,526 | 11,440 | ||||||
Other assets | 24,327 | 16,911 | ||||||
Total assets | $ | 1,330,643 | $ | 1,341,238 | ||||
Liabilities and Stockholders' Equity | ||||||||
Liabilities | ||||||||
Deposits: | ||||||||
Noninterest-bearing | $ | 380,292 | $ | 380,601 | ||||
Interest-bearing | 819,335 | 816,440 | ||||||
Total deposits | 1,199,627 | 1,197,041 | ||||||
Subordinated debentures and notes, net of issuance costs (including $1,031 | ||||||||
at fair value at March 31, 2022 and December 31, 2021) | 19,812 | 19,775 | ||||||
Senior secured term note | 10,889 | 11,278 | ||||||
Other borrowings | 5,000 | 5,000 | ||||||
Other liabilities | 7,414 | 6,985 | ||||||
Total liabilities | 1,242,742 | 1,240,079 | ||||||
Stockholders' equity | ||||||||
Common stock, $0.01 par value, 10,000,000 shares authorized; | ||||||||
3,506,214 and 3,479,069 shares issued as of March 31, 2022 and | ||||||||
December 31, 2021, respectively | 35 | 35 | ||||||
Additional paid-in capital | 36,115 | 35,890 | ||||||
Retained earnings | 84,261 | 81,987 | ||||||
Treasury stock, 632,686 and 630,991 shares at cost as of March 31, 2022 | ||||||||
and December 31, 2021, respectively | (19,010 | ) | (18,952 | ) | ||||
Accumulated other comprehensive income (loss) | (13,500 | ) | 2,199 | |||||
Total stockholders' equity | 87,901 | 101,159 | ||||||
Total liabilities and stockholders' equity | $ | 1,330,643 | $ | 1,341,238 | ||||
BLACKHAWK BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
| Three months ended March 31, | ||||||||
| 2022 | 2021 | |||||||
| (Amounts in thousands, except per share data) | ||||||||
Interest Income: | ||||||||
Interest and fees on loans | $ | 7,808 | $ | 8,155 | ||||
Interest and dividends on available-for-sale securities: | ||||||||
Taxable | 2,068 | 1,721 | ||||||
Tax-exempt | 365 | 384 | ||||||
Interest on deposits in other financial institutions | 24 | 41 | ||||||
Total interest income | 10,265 | 10,301 | ||||||
Interest Expense: | ||||||||
Interest on deposits | 322 | 415 | ||||||
Interest on subordinated debentures | 195 | 41 | ||||||
Interest on senior secured term note | 91 | 107 | ||||||
Interest on other borrowings | - | 20 | ||||||
Total interest expense | 608 | 583 | ||||||
Net interest income before provision for loan losses | 9,657 | 9,718 | ||||||
Provision for loan losses | - | 500 | ||||||
Net interest income after provision for loan losses | 9,657 | 9,218 | ||||||
Noninterest Income: | ||||||||
Service charges on deposits accounts | 913 | 690 | ||||||
Net gain on sale of loans | 1,146 | 2,362 | ||||||
Net loan servicing income | 402 | 369 | ||||||
Debit card interchange fees | 1,079 | 1,027 | ||||||
Net gains on sales of securities available-for-sale | - | - | ||||||
Net other gains (losses) | (4 | ) | 42 | |||||
Increase in cash surrender value of bank-owned life insurance | 86 | 87 | ||||||
Change in value of equity securities | (64 | ) | (35 | ) | ||||
Other | 360 | 493 | ||||||
Total noninterest income | 3,918 | 5,035 | ||||||
Noninterest Expenses: | ||||||||
Salaries and employee benefits | 6,222 | 5,734 | ||||||
Occupancy and equipment | 1,212 | 1,182 | ||||||
Data processing | 708 | 591 | ||||||
Debit card processing and issuance | 513 | 425 | ||||||
Advertising and marketing | 108 | 99 | ||||||
Amortization of core deposit intangible | 96 | 104 | ||||||
Professional fees | 389 | 390 | ||||||
Office Supplies | 86 | 77 | ||||||
Telephone | 140 | 141 | ||||||
Other | 697 | 968 | ||||||
Total noninterest expenses | 10,171 | 9,711 | ||||||
Income before income taxes | 3,404 | 4,542 | ||||||
Provision for income taxes | 785 | 1,112 | ||||||
Net income | $ | 2,619 | $ | 3,430 | ||||
Key Ratios | ||||||||
Basic Earnings Per Common Share | $ | 0.92 | $ | 1.02 | ||||
Diluted Earnings Per Common Share | 0.92 | 1.02 | ||||||
Dividends Per Common Share | 0.12 | 0.11 | ||||||
Net Interest Margin (1) | 3.13 | % | 3.52 | % | ||||
Efficiency Ratio (1)(2) | 74.35 | % | 65.53 | % | ||||
Return on Assets | 0.80 | % | 1.16 | % | ||||
Return on Common Equity | 10.82 | % | 12.44 | % | ||||
(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, | ||||||||||||||||
| 2022 | 2021 | 2021 | 2021 | 2021 | ||||||||||||||||
| (Dollars in thousands, except per share data) | ||||||||||||||||||||
Interest Income: | ||||||||||||||||||||
Interest and fees on loans | $ | 7,808 | $ | 7,876 | $ | 8,180 | $ | 8,621 | $ | 8,155 | ||||||||||
Interest on available-for-sale securities: | ||||||||||||||||||||
Taxable | 2,068 | 1,960 | 1,830 | 1,759 | 1,721 | |||||||||||||||
Tax-exempt | 365 | 369 | 419 | 378 | 384 | |||||||||||||||
Interest on deposits in other financial institutions | 24 | 33 | 61 | 48 | 41 | |||||||||||||||
Total interest income | 10,265 | 10,238 | 10,490 | 10,806 | 10,301 | |||||||||||||||
Interest Expense: | ||||||||||||||||||||
Interest on deposits | 322 | 319 | 421 | 421 | 415 | |||||||||||||||
Interest on subordinated debentures | 195 | 196 | 195 | 117 | 41 | |||||||||||||||
Interest on senior secured term note | 91 | 98 | 103 | 104 | 107 | |||||||||||||||
Interest on other borrowings | - | - | - | - | 20 | |||||||||||||||
Total interest expense | 608 | 613 | 719 | 642 | 583 | |||||||||||||||
Net interest income before provision for loan losses | 9,657 | 9,625 | 9,771 | 10,164 | 9,718 | |||||||||||||||
Provision for loan losses | - | - | - | - | 500 | |||||||||||||||
Net interest income after provision for loan losses | 9,657 | 9,625 | 9,771 | 10,164 | 9,218 | |||||||||||||||
Noninterest Income: | ||||||||||||||||||||
Service charges on deposits accounts | 913 | 901 | 787 | 663 | 690 | |||||||||||||||
Net gain on sale of loans | 1,146 | 1,865 | 2,147 | 2,217 | 2,362 | |||||||||||||||
Net loan servicing income | 402 | 186 | 90 | 36 | 369 | |||||||||||||||
Debit card interchange fees | 1,079 | 1,168 | 1,146 | 1,218 | 1,027 | |||||||||||||||
Net gains on sales of securities available-for-sale | - | - | - | - | - | |||||||||||||||
Net other gains (losses) | (4 | ) | 5 | 52 | 7 | 42 | ||||||||||||||
Increase in cash surrender value of bank-owned life insurance | 86 | 77 | 78 | 72 | 87 | |||||||||||||||
Other | 296 | 317 | 457 | 479 | 458 | |||||||||||||||
Total noninterest income | 3,918 | 4,519 | 4,757 | 4,692 | 5,035 | |||||||||||||||
Noninterest Expenses: | ||||||||||||||||||||
Salaries and employee benefits | 6,222 | 6,403 | 6,118 | 5,753 | 5,734 | |||||||||||||||
Occupancy and equipment | 1,212 | 1,109 | 1,273 | 1,092 | 1,182 | |||||||||||||||
Data processing | 708 | 694 | 689 | 641 | 591 | |||||||||||||||
Debit card processing and issuance | 513 | 533 | 489 | 503 | 425 | |||||||||||||||
Advertising and marketing | 108 | 115 | 141 | 70 | 99 | |||||||||||||||
Amortization of intangibles | 96 | 95 | 96 | 96 | 104 | |||||||||||||||
Professional fees | 389 | 436 | 434 | 399 | 390 | |||||||||||||||
Office Supplies | 86 | 127 | 74 | 93 | 77 | |||||||||||||||
Telephone | 140 | 143 | 139 | 144 | 141 | |||||||||||||||
Other | 697 | 850 | 865 | 673 | 968 | |||||||||||||||
Total noninterest expenses | 10,171 | 10,505 | 10,318 | 9,464 | 9,711 | |||||||||||||||
Income before income taxes | 3,404 | 3,639 | 4,210 | 5,392 | 4,542 | |||||||||||||||
Provision for income taxes | 785 | 728 | 988 | 1,337 | 1,112 | |||||||||||||||
Net income | $ | 2,619 | $ | 2,911 | $ | 3,222 | $ | 4,055 | $ | 3,430 | ||||||||||
Key Ratios | ||||||||||||||||||||
Basic Earnings Per Common Share | $ | 0.92 | $ | 1.02 | $ | 1.13 | $ | 1.30 | $ | 1.02 | ||||||||||
Diluted Earnings Per Common Share | 0.92 | 1.02 | 1.13 | 1.30 | 1.02 | |||||||||||||||
Dividends Per Common Share | 0.12 | 0.11 | 0.11 | 0.11 | 0.11 | |||||||||||||||
Book Value Per Common Share | 30.59 | 35.50 | 35.29 | 34.97 | 32.95 | |||||||||||||||
Tangible Book Value Per Share | 26.58 | 31.41 | 31.17 | 30.81 | 29.40 | |||||||||||||||
Tangible Book Value Excluding AOCI Per Share | 31.27 | 30.64 | 29.64 | 28.56 | 27.98 | |||||||||||||||
Number of Shares Outstanding | 2,873,528 | 2,848,078 | 2,848,078 | 2,842,828 | 3,359,613 | |||||||||||||||
Average Number of Shares Outstanding | 2,864,082 | 2,848,109 | 2,848,109 | 3,118,265 | 3,372,684 | |||||||||||||||
Net Interest Margin (1) | 3.13 | % | 3.12 | % | 3.11 | % | 3.37 | % | 3.52 | % | ||||||||||
Efficiency Ratio (1)(2) | 74.35 | % | 73.75 | % | 70.70 | % | 63.28 | % | 65.53 | % | ||||||||||
Return on Assets | 0.80 | % | 0.89 | % | 0.96 | % | 1.26 | % | 1.16 | % | ||||||||||
Return on Common Equity | 10.82 | % | 11.41 | % | 12.57 | % | 15.74 | % | 12.44 | % | ||||||||||
(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, | ||||||||||||||||
| 2022 | 2021 | 2021 | 2021 | 2021 | ||||||||||||||||
| (Amounts in thousands, except per share data) | ||||||||||||||||||||
Cash and due from banks | $ | 13,413 | $ | 10,846 | $ | 16,536 | $ | 16,418 | $ | 15,108 | ||||||||||
Interest-bearing deposits in banks and other | 42,103 | 57,882 | 104,722 | 140,073 | 50,199 | |||||||||||||||
Securities | 484,420 | 506,894 | 472,472 | 448,072 | 379,187 | |||||||||||||||
Net loans/leases | 716,456 | 698,877 | 658,323 | 666,738 | 700,399 | |||||||||||||||
Goodwill and core deposit intangible | 11,536 | 11,628 | 11,723 | 11,819 | 11,914 | |||||||||||||||
Other assets | 62,715 | 55,428 | 54,218 | 53,629 | 50,826 | |||||||||||||||
Total assets | $ | 1,330,643 | $ | 1,341,555 | $ | 1,317,994 | $ | 1,336,749 | $ | 1,207,633 | ||||||||||
Deposits | $ | 1,199,627 | $ | 1,197,041 | $ | 1,169,085 | $ | 1,188,997 | $ | 1,068,197 | ||||||||||
Subordinated debentures | 19,812 | 20,155 | 20,155 | 20,155 | 5,155 | |||||||||||||||
Senior secured term note | 10,889 | 11,278 | 11,667 | 12,056 | 12,445 | |||||||||||||||
Borrowings | 5,000 | 5,000 | 5,000 | 5,000 | 4,000 | |||||||||||||||
Other liabilities | 7,414 | 6,985 | 11,585 | 11,131 | 7,138 | |||||||||||||||
Stockholders' equity | 87,901 | 101,096 | 100,502 | 99,410 | 110,698 | |||||||||||||||
Total liabilities and stockholders' equity | $ | 1,330,643 | $ | 1,341,555 | $ | 1,317,994 | $ | 1,336,749 | $ | 1,207,633 | ||||||||||
ASSET QUALITY DATA | ||||||||||||||||||||
(Amounts in thousands) | March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||
| 2022 | 2021 | 2021 | 2021 | 2021 | ||||||||||||||||
Non-accrual loans | $ | 4,983 | $ | 5,430 | $ | 7,827 | $ | 8,228 | $ | 6,361 | ||||||||||
Accruing loans past due 90 days or more | - | - | - | - | - | |||||||||||||||
Troubled debt restructures - accruing | 1,802 | 1,843 | 1,975 | 1,958 | 1,996 | |||||||||||||||
Total nonperforming loans | $ | 6,785 | $ | 7,273 | $ | 9,802 | $ | 10,186 | $ | 8,357 | ||||||||||
Other real estate owned | 75 | 24 | - | - | - | |||||||||||||||
Total nonperforming assets | $ | 6,860 | $ | 7,297 | $ | 9,802 | $ | 10,186 | $ | 8,357 | ||||||||||
Total loans | $ | 727,451 | $ | 710,002 | $ | 669,547 | $ | 677,967 | $ | 711,515 | ||||||||||
Allowance for loan losses | 10,995 | 11,125 | 11,224 | 11,229 | 11,116 | |||||||||||||||
Loans, less allowance for loan losses | $ | 716,456 | $ | 698,877 | $ | 658,323 | $ | 666,738 | $ | 700,399 | ||||||||||
Nonperforming Assets to total Assets | 0.52 | % | 0.54 | % | 0.74 | % | 0.76 | % | 0.69 | % | ||||||||||
Nonperforming loans to total loans | 0.93 | % | 1.02 | % | 1.46 | % | 1.50 | % | 1.17 | % | ||||||||||
Allowance for loan losses to total loans | 1.51 | % | 1.57 | % | 1.68 | % | 1.66 | % | 1.56 | % | ||||||||||
Allowance for loan losses to nonperforming loans | 162.0 | % | 153.0 | % | 114.5 | % | 110.2 | % | 133.0 | % | ||||||||||
| For the Quarter Ended | ||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
ROLLFORWARD OF ALLOWANCE | 2022 | 2021 | 2021 | 2021 | 2021 | |||||||||||||||
Beginning Balance | $ | 11,125 | $ | 11,224 | $ | 11,229 | $ | 11,116 | $ | 10,764 | ||||||||||
Provision | - | - | - | - | 500 | |||||||||||||||
Loans charged off | 214 | 181 | 103 | 61 | 582 | |||||||||||||||
Loan recoveries | 84 | 82 | 98 | 174 | 434 | |||||||||||||||
Net charge-offs | 130 | 99 | 5 | (113 | ) | 148 | ||||||||||||||
Ending Balance | $ | 10,995 | $ | 11,125 | $ | 11,224 | $ | 11,229 | $ | 11,116 | ||||||||||
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, 2022 | December 31, 2021 | March 31, 2021 | ||||||||||||||||||||||||||||||||||
| Average | Average | Average | Average | Average | Average | |||||||||||||||||||||||||||||||
| Balance | Interest | Rate | Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||||||||||||||||||||
Interest Earning Assets: | ||||||||||||||||||||||||||||||||||||
Interest-bearing deposits and other | $ | 48,261 | $ | 24 | 0.20 | % | $ | 61,530 | $ | 33 | 0.21 | % | $ | 74,108 | $ | 41 | 0.22 | % | ||||||||||||||||||
Investment securities: | ||||||||||||||||||||||||||||||||||||
Taxable investment securities | 448,643 | 2,068 | 1.87 | % | 447,836 | 1,960 | 1.74 | % | 320,740 | 1,721 | 2.18 | % | ||||||||||||||||||||||||
Tax-exempt investment securities | 53,820 | 365 | 3.50 | % | 52,749 | 369 | 3.57 | % | 52,122 | 384 | 3.83 | % | ||||||||||||||||||||||||
Total Investment securities | 502,463 | 2,433 | 2.04 | % | 500,585 | 2,329 | 1.93 | % | 372,862 | 2,105 | 2.41 | % | ||||||||||||||||||||||||
Loans | 714,666 | 7,808 | 4.43 | % | 674,818 | 7,876 | 4.63 | % | 685,654 | 8,155 | 4.82 | % | ||||||||||||||||||||||||
Total Earning Assets | $ | 1,265,390 | $ | 10,265 | 3.32 | % | $ | 1,236,933 | $ | 10,238 | 3.32 | % | $ | 1,132,624 | $ | 10,301 | 3.73 | % | ||||||||||||||||||
Allowance for loan losses | (11,136 | ) | (11,192 | ) | (11,075 | ) | ||||||||||||||||||||||||||||||
Cash and due from banks | 14,956 | 16,557 | 16,052 | |||||||||||||||||||||||||||||||||
Other assets | 65,912 | 62,310 | 58,706 | |||||||||||||||||||||||||||||||||
Total Assets | $ | 1,335,122 | $ | 1,304,608 | $ | 1,196,307 | ||||||||||||||||||||||||||||||
Interest Bearing Liabilities: | ||||||||||||||||||||||||||||||||||||
Interest bearing checking accounts | $ | 313,986 | $ | 139 | 0.18 | % | $ | 308,166 | $ | 116 | 0.15 | % | $ | 284,527 | $ | 161 | 0.23 | % | ||||||||||||||||||
Savings and money market deposits | 423,755 | 68 | 0.06 | % | 423,311 | 77 | 0.07 | % | 356,615 | 84 | 0.10 | % | ||||||||||||||||||||||||
Time deposits | 77,755 | 115 | 0.60 | % | 78,625 | 126 | 0.64 | % | 81,807 | 170 | 0.84 | % | ||||||||||||||||||||||||
Total interest bearing deposits | 815,496 | 322 | 0.16 | % | 810,102 | 319 | 0.16 | % | 722,949 | 415 | 0.23 | % | ||||||||||||||||||||||||
Subordinated debentures and notes | 20,037 | 195 | 3.94 | % | 20,155 | 196 | 3.85 | % | 5,155 | 41 | 3.23 | % | ||||||||||||||||||||||||
Borrowings | 16,071 | 91 | 2.29 | % | 16,306 | 98 | 2.40 | % | 26,369 | 127 | 1.96 | % | ||||||||||||||||||||||||
Total Interest-Bearing Liabilities | $ | 851,604 | $ | 608 | 0.29 | % | $ | 846,563 | $ | 613 | 0.29 | % | $ | 754,473 | $ | 583 | 0.31 | % | ||||||||||||||||||
Interest Rate Spread | 3.03 | % | 3.03 | % | 3.42 | % | ||||||||||||||||||||||||||||||
Noninterest checking accounts | 378,414 | 349,482 | 322,667 | |||||||||||||||||||||||||||||||||
Other liabilities | 6,899 | 7,342 | 7,373 | |||||||||||||||||||||||||||||||||
Total liabilities | 1,236,917 | 1,203,387 | 1,084,513 | |||||||||||||||||||||||||||||||||
Total Stockholders' equity | 98,205 | 101,221 | 111,794 | |||||||||||||||||||||||||||||||||
Total Liabilities and | ||||||||||||||||||||||||||||||||||||
Stockholders' Equity | $ | 1,335,122 | $ | 1,304,608 | $ | 1,196,307 | ||||||||||||||||||||||||||||||
Net Interest Income/Margin | $ | 9,657 | 3.13 | % | $ | 9,625 | 3.12 | % | $ | 9,718 | 3.52 | % | ||||||||||||||||||||||||
(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.
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