BELOIT, WI / ACCESSWIRE / October 16, 2018 / Blackhawk Bancorp, Inc. (OTCQX: BHWB) reported net income of $2.58 million for the quarter ended September 30, 2018, which was a $562 thousand, or 28%, increase over the $2.02 million earned the previous quarter of 2018, and a $646,000, or 33%, increase over the $1.93 million earned in the third quarter of 2017. Fully diluted earnings per share ( "EPS") for the third quarter increased $0.17, to $0.78, as compared to $0.61, for the quarter ended June 30, 2018, and increased by $0.19, as compared to $0.59, for the quarter ended September 30, 2017. The quarterly results produced a return on average assets of 1.29% and a return on average equity of 12.67%.
For the nine months ended September 30, 2018, the company reported net income of $6.0 million, which was a $1.2 million, or 25%, increase over the $4.8 million reported for the first nine months of 2017. Diluted earnings per share for the first nine months of 2018 increased 14%, to $1.83, as compared to $1.60 the first nine months of 2017. The nine-month results produced a return on average assets ("ROAA") of 1.06% and a return on average equity ( "ROAE") of 10.21%.
Total assets increased by $51.7 million, or 7%, to $772.4 million at September 30, 2018, as compared to $720.6 million as of December 31, 2017. Gross loans increased by $23.9 million, or 5%, during the first nine months of 2018, to $509.7 million, as compared to $485.8 million at December 31, 2017. At the same time, total deposits increased by $63.1 million, or 10%, to $680.1 million, as compared to $617.0 million as of December 31, 2017.
The following table summarizes the net income and includes other key ratios for the last five quarters:
| Quarter Ended | ||||||||||||||||||||
|
(dollars in thousands, except per share data)
|
Sep 30,
2018
|
Jun 30,
2018
|
Mar 31,
2018
|
Dec 31,
2017
|
Sep 30,
2017
|
|||||||||||||||
|
Net income
|
$ | 2,578 | $ | 2,016 | $ | 1,452 | $ | 1,371 | $ | 1,932 | ||||||||||
|
Diluted EPS
|
$ | 0.78 | $ | 0.61 | $ | 0.44 | $ | 0.42 | $ | 0.59 | ||||||||||
|
ROAA
|
1.29% | 1.06% | .81% | .77% | 1.09% | |||||||||||||||
|
ROAE
|
12.67% | 10.25% | 7.56% | 7.00% | 10.01% | |||||||||||||||
|
Net interest margin(1)
|
3.91% | 3.91% | 3.83% | 3.79% | 3.77% | |||||||||||||||
|
Efficiency ratio(1) (2)
|
66.6% | 70.4% | 73.8% | 72.5% | 65.8% | |||||||||||||||
"We continue to invest in our people, strategically expand our business footprint, and leverage the use of technology that will best serve our marketplace and provide opportunities for sustained revenue growth and those decisions are being reflected in our performance results", said Todd James the company's Chief Executive Officer. "We remain grateful for the leadership of Rick Bastian, who recently announced his retirement but has instilled an entrepreneurial culture at Blackhawk that is focused on delivering personalized attention and value-added products and services that enhance the financial success of our customers," he added.
Net Interest Income
Net interest income for the third quarter totaled $7.19 million, increasing $406 thousand, or 6%, compared to $6.78 million for the quarter ended June 30, 2018, and by $1.22 million, or 20%, as compared to $5.97 million for the third quarter of last year. The net interest margin for the quarter ended September 30, 2018, was 3.91%, which is a fourteen basis point increase over the 3.77% net interest margin for the third quarter of 2017, and was unchanged from the second quarter of 2018.
Net interest income for the nine months ended September 30, 2018, increased by $3.4 million, or 20%, as compared to the first nine months of 2017. The net interest margin ratio increased by twenty-two basis points for the first nine months of 2018, to 3.88%, as compared to 3.66% for the first nine months of 2017.
The Company's strong 2018 financial performance has been driven by 20% increases in net interest income for both the third quarter and year-to-date periods ending September 30, 2018, as compared to the same respective periods in 2017. The increases in net interest income and the net interest margin ratios substantially reflect the strong growth in average earning assets, particularly loans, which were funded by deposit growth with a simultaneous reduction in borrowings.
"We remain bullish on our ability to continue our profitable growth momentum within our expanded footprint," said David Adkins, the company's Chief Operating Officer and CEO of the bank subsidiary. "The economy remains robust and interest rates remain favorable despite the recent increase by the Federal Open Market Committee. We are attracting customers in our expanded market areas and expect additional opportunities in our traditional footprint as recent consolidation has customers seeking more responsive service levels and local decision making that only a true community bank can provide," he added.
Average total loans for the first nine months of this year increased $75.2 million, or 18%, to $504.8 million as compared to $429.6 million the first nine months of 2017. Total average total deposits increased $73.1 million, or 12%, to $668.7 million as compared to $595.7 million for the first nine months of 2017.
Provision for Loan Losses and Credit Quality
The provision for loan losses for the quarter ended September 30, 2018, totaled $150 thousand, as compared to $370 thousand for the quarter ended June 30, 2018, and $360 thousand for the third quarter of 2017. The provision for loan losses for the first nine months of 2018 totaled $1.03 million, which was a decrease of $50,000, or 4.6%, as compared to the $1.08 million provision expense recorded in the first nine months of 2017. As of September 30, 2018, the company has continued to record a loan loss provision to accommodate loan growth despite continued improvement in credit metrics.
Total nonperforming assets, which includes impaired loans, troubled debt restructurings that performed in accordance with their modified terms, and a small other-real-estate portfolio, decreased $1.09 million, to $7.47 million as of September 30, 2018, as compared to $8.56 million as of June 30, 2018, and $11.1 million at September 30, 2017. As a result, the ratio of non-performing assets to total assets as of September 30, 2018, was .97%, as compared to 1.10% at June 30, 2018, and 1.57% at September 30, 2017.
In addition to the reduction in non-performing assets at September 30, 2018, other measures of credit quality also showed improvement. The company realized net loan recoveries of $678 thousand for the first nine months of 2018. Those net recoveries, combined with the $1.03 million provision for loan losses, increased the ratio of the allowance for loan losses to total loans to 1.41%, as of September 30, 2018, as compared to 1.30% at June 30, 2018, and 1.13% as of December 31, 2017. The ratio of the allowance for loan losses to nonperforming loans increased to 99.7% as of September 30, 2018, as compared to 79.2% at June 30, 2018, and 67.2% as of December 31, 2017.
Non-Interest Income and Operating Expenses
Non-interest income for the quarter ended September 30, 2018, totaled $3.14 million, a $103 thousand increase, as compared to $3.04 million for the quarter ended June 30, 2018, and a $361 thousand increase over the $2.78 million reported for the third quarter of 2017. The increase compared to the most recent quarter included a $110 thousand increase in gain on sale of loans. The increase in non-interest income compared to the third quarter of 2017 is primarily attributable to growth in gain on sale of loans and debit card revenue.
Operating expenses for the quarter ended September 30, 2018, totaled $6.91 million, a decrease of $55 thousand as compared to the quarter ended June 30, 2018, and was an increase of $1.06 million, or 18%, as compared to the third quarter of 2017. The increase in expenses compared to the third quarter of last year included a $726 thousand increase in salary and benefit related expenditures and a $189 thousand increase in occupancy and equipment expense.
Operating expenses for the nine-month period, ended September 30, 2018, totaled $20.4 million, which was a $3.3 million, or 19%, increase over the first nine months of 2017. That increase included a $2.3 million increase in salary and benefit costs, a $681 thousand increase in occupancy and equipment expenses, and a $109 thousand increase in marketing expenses. These increases are the primarily the result of the talent added to increase capacity in the company's business and mortgage banking units. The increases also include costs related to the Janesville, Wisconsin full-service branch, which opened in the fourth quarter of 2017 and the Elgin, Illinois loan production office, which opened during the first quarter of 2018.
Income Taxes
The provision for income taxes for the first nine months of the year increased by $90 thousand, or 7%, as compared to the first nine months of 2017 despite a 21% increase in pre-tax income. The company has realized approximately $650 thousand of savings in the first nine of the year due to the reduction in the federal income tax rate that was included in the Tax Cuts and Jobs Act of 2017.
Outlook
Blackhawk expects to grow by pursuing creditworthy and profitable business and consumer relationships in its Wisconsin and Illinois markets and by emphasizing the value of its personal attention and service delivery that remains unmatched by larger competitors. Growth, combined with an ongoing strengthening of the company's credit quality, is expected to lead to improved earnings. Growth and earnings could, however, be tempered by factors outside of company control including uncertain economic conditions, competitive pressures, 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, which operates eight banking centers and a dedicated commercial office that together services south central Wisconsin and north central Illinois along the I-90 corridor from Elgin, Illinois, to Janesville, Wisconsin. The company offers a variety of value-added consultative services to its business customers and their employees related to the financial products it provides.
Forward-Looking Statements
When used in this communication, the words "believes," "expects," 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; 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.
Further information:
www.blackhawkbank.com
Blackhawk Bancorp, Inc.
Todd James
[email protected]
Phone: (608) 364-8911
BLACKHAWK BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, 2018 AND DECEMBER 31, 2017
(UNAUDITED)
|
|
September 30, | December 31, | ||||||
|
Assets
|
2018 | 2017 | ||||||
|
|
(Amounts in thousands, except | |||||||
|
|
share and per share data) | |||||||
|
Cash and due from banks
|
$ | 19,526 | $ | 19,326 | ||||
|
Interest-bearing deposits in banks and other
|
5,878 | 2,215 | ||||||
|
Total cash and cash equivalents
|
25,404 | 21,541 | ||||||
|
Securities available-for-sale
|
197,507 | 176,350 | ||||||
|
Loans held for sale
|
4,623 | 747 | ||||||
|
Federal Home Loan Bank stock, at cost
|
540 | 654 | ||||||
|
Loans, less allowance for loan losses of $7,211 and $5,503
|
||||||||
|
at September 30, 2018 and December 31, 2017, respectively
|
497,840 | 479,539 | ||||||
|
Premises and equipment, net
|
13,131 | 11,120 | ||||||
|
Goodwill
|
5,037 | 5,037 | ||||||
|
Mortgage Servicing rights
|
2,871 | 2,508 | ||||||
|
Cash surrender value of bank-owned life insurance
|
10,738 | 10,512 | ||||||
|
Other assets
|
14,663 | 12,613 | ||||||
|
Total assets
|
$ | 772,354 | $ | 720,621 | ||||
|
|
||||||||
|
Liabilities and Stockholders' Equity
|
||||||||
|
|
||||||||
|
Liabilities
|
||||||||
|
Deposits:
|
||||||||
|
Noninterest-bearing
|
$ | 129,376 | $ | 115,724 | ||||
|
Interest-bearing
|
550,760 | 501,271 | ||||||
|
Total deposits
|
680,136 | 616,995 | ||||||
|
Subordinated debentures and notes (including $1,031 at fair value at
|
||||||||
|
September 30, 2018 and December 31, 2017)
|
5,155 | 5,155 | ||||||
|
Other borrowings
|
- | 16,228 | ||||||
|
Other liabilities
|
6,241 | 4,109 | ||||||
|
Total liabilities
|
691,532 | 642,487 | ||||||
|
|
||||||||
|
Stockholders' equity
|
||||||||
|
Common stock, $0.01 par value, 10,000,000 shares authorized;
|
||||||||
|
3,366,192 and 3,364,092 shares issued as of September 30, 2018 and
|
||||||||
|
December 31, 2017, respectively
|
34 | 34 | ||||||
|
Additional paid-in capital
|
33,339 | 32,874 | ||||||
|
Retained earnings
|
50,215 | 45,114 | ||||||
|
Treasury stock, 91,613 and 91,043 shares at cost as of September 30, 2018
|
||||||||
|
and December 31, 2017, respectively
|
(1,032 | ) | (1,124 | ) | ||||
|
Accumulated other comprehensive income (loss)
|
(1,734 | ) | 1,236 | |||||
|
Total stockholders' equity
|
80,822 | 78,134 | ||||||
|
Total liabilities and stockholders' equity
|
$ | 772,354 | $ | 720,621 | ||||
|
|
||||||||
BLACKHAWK BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
| Nine months ended September 30, | ||||||||
|
|
2018 | 2017 | ||||||
|
|
(Amounts in thousands, except per share data) | |||||||
|
|
||||||||
|
Interest Income:
|
||||||||
|
Interest and fees on loans
|
$ | 19,369 | $ | 15,025 | ||||
|
Interest on available-for-sale securities:
|
||||||||
|
Taxable
|
2,591 | 2,372 | ||||||
|
Tax-exempt
|
1,123 | 1,144 | ||||||
|
Interest on interest-bearing deposits and other
|
340 | 103 | ||||||
|
Total interest income
|
23,423 | 18,644 | ||||||
|
Interest Expense:
|
||||||||
|
Interest on deposits
|
2,956 | 1,366 | ||||||
|
Interest on subordinated debentures and notes
|
171 | 294 | ||||||
|
Interest on senior secured term note
|
- | 67 | ||||||
|
Interest on other borrowings
|
46 | 85 | ||||||
|
Total interest expense
|
3,173 | 1,812 | ||||||
|
Net interest income before provision for loan losses
|
20,250 | 16,832 | ||||||
|
Provision for loan losses
|
1,030 | 1,080 | ||||||
|
Net interest income after provision for loan losses
|
19,220 | 15,752 | ||||||
|
|
||||||||
|
Noninterest Income:
|
||||||||
|
Service charges on deposits accounts
|
2,339 | 2,189 | ||||||
|
Net gain on sale of loans
|
2,500 | 1,744 | ||||||
|
Net loan servicing income
|
521 | 557 | ||||||
|
Debit card interchange fees
|
2,033 | 1,789 | ||||||
|
Net gains (losses) on sales of securities available-for-sale
|
65 | 91 | ||||||
|
Net other gains (losses)
|
46 | (33 | ) | |||||
|
Increase in cash surrender value of bank-owned life insurance
|
226 | 231 | ||||||
|
Other
|
943 | 958 | ||||||
|
Total noninterest income
|
8,673 | 7,526 | ||||||
|
|
||||||||
|
Noninterest Expenses:
|
||||||||
|
Salaries and employee benefits
|
11,998 | 9,666 | ||||||
|
Occupancy and equipment
|
2,549 | 1,868 | ||||||
|
Data processing
|
1,240 | 1,154 | ||||||
|
Debit card processing and issuance
|
968 | 882 | ||||||
|
Advertising and marketing
|
422 | 313 | ||||||
|
Professional fees
|
922 | 814 | ||||||
|
Office Supplies
|
266 | 206 | ||||||
|
Telephone
|
375 | 346 | ||||||
|
Other
|
1,685 | 1,869 | ||||||
|
Total noninterest expenses
|
20,425 | 17,118 | ||||||
|
Income before income taxes
|
7,468 | 6,160 | ||||||
|
Provision for income taxes
|
1,422 | 1,332 | ||||||
|
Net income
|
$ | 6,046 | $ | 4,828 | ||||
|
|
||||||||
|
Key Ratios
|
||||||||
|
|
||||||||
|
Basic Earnings Per Common Share
|
$ | 1.83 | $ | 1.60 | ||||
|
Diluted Earnings Per Common Share
|
1.83 | 1.60 | ||||||
|
Dividends Per Common Share
|
0.28 | 0.20 | ||||||
|
|
||||||||
|
Net Interest Margin (1)
|
3.88 | % | 3.66 | % | ||||
|
Efficiency Ratio (1)(2)
|
70.07 | % | 68.64 | % | ||||
|
Return on Assets
|
1.06 | % | 0.94 | % | ||||
|
Return on Common Equity
|
10.21 | % | 9.39 | % | ||||
(1) Net interest margin and the efficiency ratio are calculated on a taxable-equivalent basis
(2) Efficiency ratio is calculated excluding net securities gains (losses) and other gains (losses)
BLACKHAWK BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
|
For the Quarter Ended
|
||||||||||||||||||||
|
September 30,
|
June 30,
|
March 31,
|
December 31,
|
September 30,
|
||||||||||||||||
|
2018
|
2018
|
2018
|
2017
|
2017
|
||||||||||||||||
|
(Amounts in thousands, except per share data)
|
||||||||||||||||||||
|
Interest Income:
|
||||||||||||||||||||
|
Interest and fees on loans
|
$ | 6,884 | $ | 6,610 | $ | 5,875 | $ | 5,659 | $ | 5,357 | ||||||||||
|
Interest on available-for-sale securities:
|
||||||||||||||||||||
|
Taxable
|
980 | 839 | 772 | 685 | 806 | |||||||||||||||
|
Tax-exempt
|
389 | 359 | 375 | 402 | 384 | |||||||||||||||
|
Interest on interest-bearing deposits and other
|
208 | 59 | 73 | 13 | 44 | |||||||||||||||
|
Total interest income
|
8,461 | 7,867 | 7,095 | 6,759 | 6,591 | |||||||||||||||
|
Interest Expense:
|
||||||||||||||||||||
|
Interest on deposits
|
1,213 | 991 | 752 | 635 | 527 | |||||||||||||||
|
Interest on subordinated debentures and notes
|
59 | 59 | 53 | 47 | 47 | |||||||||||||||
|
Interest on senior secured term note
|
- | - | - | - | - | |||||||||||||||
|
Interest on other borrowings
|
- | 34 | 12 | 29 | 44 | |||||||||||||||
|
Total interest expense
|
1,272 | 1,084 | 817 | 711 | 618 | |||||||||||||||
|
Net interest income before provision for loan losses
|
7,189 | 6,783 | 6,278 | 6,048 | 5,973 | |||||||||||||||
|
Provision for loan losses
|
150 | 370 | 510 | 710 | 360 | |||||||||||||||
|
Net interest income after provision for loan losses
|
7,039 | 6,413 | 5,768 | 5,338 | 5,613 | |||||||||||||||
|
Noninterest Income:
|
||||||||||||||||||||
|
Service charges on deposits accounts
|
829 | 769 | 741 | 787 | 791 | |||||||||||||||
|
Net gain on sale of loans
|
1,070 | 960 | 470 | 695 | 687 | |||||||||||||||
|
Net loan servicing income
|
171 | 173 | 177 | 175 | 179 | |||||||||||||||
|
Debit card interchange fees
|
663 | 675 | 695 | 623 | 608 | |||||||||||||||
|
Net gains on sales of securities available-for-sale
|
- | 59 | 6 | (159 | ) | 104 | ||||||||||||||
|
Net other gains (losses)
|
69 | (17 | ) | (6 | ) | 1 | (7 | ) | ||||||||||||
|
Increase in cash surrender value of bank-owned life insurance
|
72 | 73 | 81 | 74 | 74 | |||||||||||||||
|
Other
|
267 | 346 | 330 | 337 | 344 | |||||||||||||||
|
Total noninterest income
|
3,141 | 3,038 | 2,494 | 2,533 | 2,780 | |||||||||||||||
|
Noninterest Expenses:
|
||||||||||||||||||||
|
Salaries and employee benefits
|
4,081 | 4,050 | 3,867 | 3,828 | 3,355 | |||||||||||||||
|
Occupancy and equipment
|
826 | 891 | 832 | 709 | 637 | |||||||||||||||
|
Data processing
|
428 | 417 | 395 | 362 | 382 | |||||||||||||||
|
Debit card processing and issuance
|
339 | 336 | 293 | 300 | 309 | |||||||||||||||
|
Advertising and marketing
|
126 | 143 | 153 | 180 | 111 | |||||||||||||||
|
Professional fees
|
350 | 316 | 256 | 305 | 305 | |||||||||||||||
|
Office Supplies
|
77 | 79 | 110 | 82 | 66 | |||||||||||||||
|
Telephone
|
125 | 126 | 124 | 122 | 118 | |||||||||||||||
|
Other
|
555 | 604 | 526 | 615 | 560 | |||||||||||||||
|
Total noninterest expenses
|
6,907 | 6,962 | 6,556 | 6,503 | 5,843 | |||||||||||||||
|
Income before income taxes
|
3,273 | 2,489 | 1,706 | 1,368 | 2,550 | |||||||||||||||
|
Provision for income taxes
|
695 | 473 | 254 | (3 | ) | 618 | ||||||||||||||
|
Net income
|
$ | 2,578 | $ | 2,016 | $ | 1,452 | $ | 1,371 | $ | 1,932 | ||||||||||
|
Key Ratios
|
||||||||||||||||||||
|
Basic Earnings Per Common Share
|
$ | 0.78 | $ | 0.61 | $ | 0.44 | $ | 0.42 | $ | 0.59 | ||||||||||
|
Diluted Earnings Per Common Share
|
0.78 | 0.61 | 0.44 | 0.42 | 0.59 | |||||||||||||||
|
Dividends Per Common Share
|
0.10 | 0.10 | 0.08 | 0.08 | 0.08 | |||||||||||||||
|
Net Interest Margin (1)
|
3.91 | % | 3.91 | % | 3.83 | % | 3.79 | % | 3.77 | % | ||||||||||
|
Efficiency Ratio (1)(2)
|
66.55 | % | 70.41 | % | 73.79 | % | 72.45 | % | 65.77 | % | ||||||||||
|
Return on Assets
|
1.29 | % | 1.06 | % | 0.81 | % | 0.77 | % | 1.09 | % | ||||||||||
|
Return on Common Equity
|
12.67 | % | 10.25 | % | 7.56 | % | 7.00 | % | 10.01 | % | ||||||||||
(1) Net interest margin and the efficiency ratio are calculated on a taxable-equivalent basis
(2) Efficiency ratio is calculated excluding net securities gains (losses) and other gains (losses)
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
|
As of
|
||||||||||||||||||||
|
September 30,
|
June 30,
|
March 31,
|
December 31,
|
September 30,
|
||||||||||||||||
|
2018
|
2018
|
2018
|
2017
|
2017
|
||||||||||||||||
| (Amounts in thousands, except per share data) | ||||||||||||||||||||
|
Cash and due from banks
|
$ | 19,526 | $ | 16,942 | $ | 16,727 | $ | 19,326 | $ | 16,633 | ||||||||||
|
Interest-bearing deposits in banks and other
|
5,878 | 43,001 | 13,503 | 2,215 | 7,415 | |||||||||||||||
|
Securities
|
197,507 | 181,466 | 171,814 | 176,350 | 177,702 | |||||||||||||||
|
Net loans/leases
|
502,463 | 495,005 | 497,630 | 480,286 | 460,684 | |||||||||||||||
|
Goodwill
|
5,037 | 5,037 | 5,037 | 5,037 | 5,037 | |||||||||||||||
|
Other assets
|
41,943 | 39,978 | 37,743 | 37,407 | 37,165 | |||||||||||||||
|
Total assets
|
$ | 772,354 | $ | 781,429 | $ | 742,454 | $ | 720,621 | $ | 704,636 | ||||||||||
|
Deposits
|
$ | 680,136 | $ | 692,968 | $ | 656,114 | $ | 616,995 | $ | 606,539 | ||||||||||
|
Subordinated debentures
|
5,155 | 5,155 | 5,155 | 5,155 | 5,155 | |||||||||||||||
|
Borrowings
|
- | - | - | 16,228 | 11,858 | |||||||||||||||
|
Other liabilities
|
6,241 | 3,856 | 3,185 | 4,109 | 3,815 | |||||||||||||||
|
Stockholders' equity
|
80,822 | 79,450 | 78,000 | 78,134 | 77,269 | |||||||||||||||
|
Total liabilities and stockholders' equity
|
$ | 772,354 | $ | 781,429 | $ | 742,454 | $ | 720,621 | $ | 704,636 | ||||||||||
|
ASSET QUALITY DATA
|
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(Amounts in thousands)
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September 30,
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June 30,
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March 31,
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December 31,
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September 30,
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| 2018 | 2018 | 2018 | 2017 | 2017 | ||||||||||||||||
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Non-accrual loans
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$ | 3,362 | $ | 3,539 | $ | 3,511 | $ | 3,657 | $ | 5,852 | ||||||||||
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Accruing loans past due 90 days or more
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- | 388 | 139 | - | - | |||||||||||||||
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Troubled debt restructures - accruing
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3,873 | 4,283 | 4,456 | 4,527 | 4,886 | |||||||||||||||
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Total nonperforming loans
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$ | 7,235 | $ | 8,210 | $ | 8,106 | $ | 8,184 | $ | 10,738 | ||||||||||
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Other real estate owned
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237 | 350 | 511 | 470 | 343 | |||||||||||||||
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Total nonperforming assets
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$ | 7,472 | $ | 8,560 | $ | 8,617 | $ | 8,654 | $ | 11,081 | ||||||||||
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Total loans
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$ | 509,674 | $ | 501,504 | $ | 503,779 | $ | 485,789 | $ | 466,548 | ||||||||||
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Allowance for loan losses
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$ | 7,211 | $ | 6,499 | $ | 6,149 | $ | 5,503 | $ | 5,864 | ||||||||||
| $ | 502,463 | $ | 495,005 | $ | 497,630 | $ | 480,286 | $ | 460,684 | |||||||||||
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Nonperforming Assets to total Assets
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0.97 | % | 1.10 | % | 1.16 | % | 1.20 | % | 1.57 | % | ||||||||||
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Nonperforming loans to total loans
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1.42 | % | 1.64 | % | 1.61 | % | 1.68 | % | 2.30 | % | ||||||||||
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Allowance for loan losses to total loans
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1.41 | % | 1.30 | % | 1.22 | % | 1.13 | % | 1.26 | % | ||||||||||
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Allowance for loan losses to nonperforming loans
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99.7 | % | 79.2 | % | 75.9 | % | 67.2 | % | 54.6 | % | ||||||||||
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For the Quarter Ended
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September 30,
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June 30,
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March 31,
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December 31,
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September 30,
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ROLLFORWARD OF ALLOWANCE
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2018 | 2018 | 2018 | 2017 | 2017 | |||||||||||||||
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Beginning Balance
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$ | 6,499 | $ | 6,149 | $ | 5,503 | $ | 5,864 | $ | 5,613 | ||||||||||
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Provision
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150 | 370 | 510 | 710 | 360 | |||||||||||||||
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Loans charged off
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105 | 178 | 52 | 1,326 | 156 | |||||||||||||||
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Loan recoveries
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667 | 158 | 188 | 255 | 47 | |||||||||||||||
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Net charge-offs
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(562 | ) | 20 | (136 | ) | 1,071 | 109 | |||||||||||||
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Ending Balance
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$ | 7,211 | $ | 6,499 | $ | 6,149 | $ | 5,503 | $ | 5,864 | ||||||||||
BLACKHAWK BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCE SHEET WITH RESULTANT INTEREST AND RATES
| Average Balance Sheet with Resultant Interest and Rates | ||||||||||||||||||||||||||||||||||||
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(Amounts in thousands)
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(Yields on a tax-equivalent basis)
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For the Quarter Ended | |||||||||||||||||||||||||||||||||||
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September 30, 2018 | June 30, 2018 | September 30, 2017 | |||||||||||||||||||||||||||||||||
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Average | Average | Average | Average | Average | Average | ||||||||||||||||||||||||||||||
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Balance | Interest | Rate | Balance | Interest | Rate | Balance | Interest | Rate | |||||||||||||||||||||||||||
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Interest Earning Assets:
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Interest-bearing deposits and other
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$ | 41,362 | $ | 208 | 1.99 | % | $ | 14,326 | $ | 59 | 1.64 | % | $ | 14,318 | $ | 44 | 1.23 | % | ||||||||||||||||||
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Investment securities:
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Taxable investment securities
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136,841 | 980 | 2.84 | % | 127,448 | 839 | 2.64 | % | 137,483 | 806 | 2.33 | % | ||||||||||||||||||||||||
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Tax-exempt investment securities
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51,527 | 389 | 3.90 | % | 47,889 | 359 | 3.92 | % | 52,838 | 384 | 4.61 | % | ||||||||||||||||||||||||
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Total Investment securities
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188,368 | 1,369 | 3.13 | % | 175,337 | 1,198 | 2.99 | % | 190,321 | 1,190 | 2.96 | % | ||||||||||||||||||||||||
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Loans
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511,279 | 6,884 | 5.34 | % | 517,412 | 6,610 | 5.12 | % | 449,410 | 5,357 | 4.74 | % | ||||||||||||||||||||||||
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Total Earning Assets
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$ | 741,009 | $ | 8,461 | 4.59 | % | $ | 707,075 | $ | 7,867 | 4.52 | % | $ | 654,049 | $ | 6,591 | 4.15 | % | ||||||||||||||||||
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Allowance for loan losses
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(7,092 | ) | (6,403 | ) | (5,766 | ) | ||||||||||||||||||||||||||||||
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Cash and due from banks
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16,755 | 17,228 | 14,254 | |||||||||||||||||||||||||||||||||
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Other assets
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40,487 | 41,613 | 41,504 | |||||||||||||||||||||||||||||||||
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Total Assets
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$ | 791,159 | $ | 759,513 | $ | 704,041 | ||||||||||||||||||||||||||||||
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Interest Bearing Liabilities:
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Interest bearing checking accounts
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$ | 245,050 | $ | 338 | 0.55 | % | $ | 225,104 | $ | 294 | 0.52 | % | $ | 210,082 | $ | 270 | 0.40 | % | ||||||||||||||||||
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Savings and money market deposits
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234,935 | 496 | 0.84 | % | 225,411 | 397 | 0.71 | % | 183,826 | 74 | 0.19 | % | ||||||||||||||||||||||||
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Time deposits
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94,937 | 379 | 1.58 | % | 90,779 | 300 | 1.33 | % | 91,072 | 183 | 1.00 | % | ||||||||||||||||||||||||
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Total interest bearing deposits
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574,922 | 1,213 | 0.84 | % | 541,294 | 991 | 0.73 | % | 484,980 | 527 | 0.43 | % | ||||||||||||||||||||||||
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Subordinated debentures and notes
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5,155 | 59 | 4.52 | % | 5,155 | 59 | 4.59 | % | 5,155 | 47 | 3.65 | % | ||||||||||||||||||||||||
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Borrowings
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160 | - | 2.32 | % | 6,999 | 34 | 1.95 | % | 14,203 | 44 | 1.22 | % | ||||||||||||||||||||||||
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Total Interest-Bearing Liabilities
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$ | 580,237 | $ | 1,272 | 0.87 | % | $ | 553,448 | $ | 1,084 | 0.79 | % | $ | 504,338 | $ | 618 | 0.49 | % | ||||||||||||||||||
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Interest Rate Spread
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3.72 | % | 3.73 | % | 3.66 | % | ||||||||||||||||||||||||||||||
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Noninterest checking accounts
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125,074 | 123,689 | 118,748 | |||||||||||||||||||||||||||||||||
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Other liabilities
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5,126 | 3,472 | 4,382 | |||||||||||||||||||||||||||||||||
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Total liabilities
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710,437 | 680,609 | 627,468 | |||||||||||||||||||||||||||||||||
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Total Stockholders' equity
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80,722 | 78,904 | 76,573 | |||||||||||||||||||||||||||||||||
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Total Liabilities and
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Stockholders' Equity
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$ | 791,159 | $ | 759,513 | $ | 704,041 | ||||||||||||||||||||||||||||||
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Net Interest Income/Margin
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$ | 7,189 | 3.91 | % | $ | 6,783 | 3.91 | % | $ | 5,973 | 3.77 | % | ||||||||||||||||||||||||
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BLACKHAWK BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCE SHEET WITH RESULTANT INTEREST AND RATES
| Average Balance Sheet with Resultant Interest and Rates | ||||||||||||||||||||||||
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(Amounts in thousands)
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(yields on a tax-equivalent basis)
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For the Nine Months Ended | |||||||||||||||||||||||
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September 30, 2018 | September 30, 2017 | ||||||||||||||||||||||
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Average | Average | Average | Average | ||||||||||||||||||||
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Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||||||||||
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Interest Earning Assets:
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Interest-bearing deposits and other
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$ | 25,308 | $ | 340 | 1.80 | % | $ | 13,513 | $ | 103 | 1.03 | % | ||||||||||||
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Investment securities:
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Taxable investment securities
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128,330 | 2,591 | 2.70 | % | 142,046 | 2,372 | 2.23 | % | ||||||||||||||||
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Tax-exempt investment securities
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50,142 | 1,123 | 3.90 | % | 52,358 | 1,144 | 4.56 | % | ||||||||||||||||
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Total Investment securities
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178,472 | 3,714 | 3.04 | % | 194,404 | 3,516 | 2.86 | % | ||||||||||||||||
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Loans
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504,754 | 19,369 | 5.13 | % | 429,576 | 15,025 | 4.68 | % | ||||||||||||||||
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Total Earning Assets
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$ | 708,534 | $ | 23,423 | 4.48 | % | $ | 637,493 | $ | 18,644 | 4.04 | % | ||||||||||||
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Allowance for loan losses
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(6,436 | ) | (5,469 | ) | ||||||||||||||||||||
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Cash and due from banks
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17,350 | 15,742 | ||||||||||||||||||||||
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Other assets
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41,128 | 40,973 | ||||||||||||||||||||||
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Total Assets
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$ | 760,576 | $ | 688,739 | ||||||||||||||||||||
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Interest Bearing Liabilities:
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Interest bearing checking accounts
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$ | 231,636 | $ | 873 | 0.50 | % | $ | 211,936 | $ | 539 | 0.34 | % | ||||||||||||
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Savings and money market deposits
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222,692 | 1,143 | 0.69 | % | 179,654 | 231 | 0.17 | % | ||||||||||||||||
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Time deposits
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92,010 | 940 | 1.37 | % | 85,656 | 596 | 0.93 | % | ||||||||||||||||
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Total interest bearing deposits
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546,338 | 2,956 | 0.72 | % | 477,246 | 1,366 | 0.38 | % | ||||||||||||||||
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Subordinated debentures
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5,155 | 171 | 4.43 | % | 7,725 | 294 | 5.10 | % | ||||||||||||||||
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Borrowings
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3,455 | 46 | 1.83 | % | 12,636 | 152 | 1.61 | % | ||||||||||||||||
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Total Interest-Bearing Liabilities
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$ | 554,948 | $ | 3,173 | 0.76 | % | $ | 497,607 | $ | 1,812 | 0.49 | % | ||||||||||||
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Interest Rate Spread
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3.72 | % | 3.55 | % | ||||||||||||||||||||
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Noninterest checking accounts
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122,404 | 118,408 | ||||||||||||||||||||||
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Other liabilities
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4,035 | 3,944 | ||||||||||||||||||||||
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Total liabilities
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681,387 | 619,959 | ||||||||||||||||||||||
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Total Stockholders' equity
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79,189 | 68,780 | ||||||||||||||||||||||
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Total Liabilities and
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Stockholders' Equity
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$ | 760,576 | $ | 688,739 | ||||||||||||||||||||
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Net Interest Income/Margin
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$ | 20,250 | 3.88 | % | $ | 16,832 | 3.66 | % | ||||||||||||||||
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SOURCE: Blackhawk Bancorp, Inc.