BELOIT, WI / ACCESSWIRE / July 21, 2021 / Blackhawk Bancorp, Inc. (OTCQX:BHWB) reported net income of $4.06 million for the quarter ended June 30, 2021, an 18% increase over the $3.43 million earned the previous quarter, and a 58% increase compared to the $2.56 million earned the second quarter of 2020. Fully diluted earnings per share (EPS) for the quarter was $1.30, an increase of $0.28 as compared to $1.02 for the quarter ended March 31, 2021 and an increase of $0.53, or 69%, as compared to $0.77 reported for the quarter ended June 30, 2020. The second quarter 2021 results produced a Return on Average Equity (ROAE) of 15.74% and a Return on Average Assets (ROAA) of 1.26%.
The increase in earnings compared to the most recent quarter included a $0.50 million decrease in the provision for loan losses, a $0.45 million increase in net interest income, and a $0.25 million decrease in operating expenses. These earnings gains were offset by a $0.48 million decrease in revenue from the sale and servicing of mortgage loans.
The increase in net income for the second quarter of 2021 compared to the second quarter of the prior year reflects a $2.51 million decrease in provision for loan losses. This improvement was partially offset by a $0.55 million decrease in revenue from the sale and servicing of mortgage loans and a $0.51 million increase in operating expenses.
The increase in earnings per share for the quarter compared to the most recent quarter and the second quarter of 2020 was boosted by the recently completed tender offer and stock repurchase. On May 18, 2021 the Company repurchased 525,546 shares, or 15.6%, of its outstanding common stock, contributing $0.08 to earnings per share for the quarter.
For the six months ended June 30, 2021, the company reported net income of $7.49 million, a 61% increase over the $4.64 million reported for the first six months of 2020. Diluted earnings per share for the first half of 2021 increased by 65% to $2.31 compared to $1.40 for the first six months of 2020. The Company's results for the first six months of 2021 produced a return on average assets of 1.21% and a return on average equity of 13.93%.
"The strong second quarter results were driven primarily by the recognition of PPP (Paycheck Protection Program) loan fees, an abnormally low provision for loan losses and a continuing high level of mortgage banking activity," said Todd James, the Company's Chairman and CEO. "While we're pleased with the overall performance, we know these earnings tailwinds are unsustainable and future performance will be driven by loan growth and efficiency gains." he added.
Total assets of the company increased by $195.2 million, or 17%, to $1.33 billion as of June 30, 2021 compared to $1.14 billion as of December 31, 2020. Total gross loans decreased by $1.1 million, or less than 1%, and total investment securities increased $96.0 million, or 27%, during the first six months of 2021. Total Deposits increased by $201.7 million, or 20%, to $1.19 billion compared to $987.3 million at the end of 2020.
Net Interest Income
Net interest income for the second quarter of 2021 totaled $10.16 million, an increase of $0.45 million, or 5%, compared to the first quarter of 2021, and up $0.29 million, or 3%, compared to the second quarter of last year. The net interest margin was 3.37% for the second quarter of 2021 as compared to 3.52% for the quarter ended March 31, 2021, and 3.99% for the second quarter of the prior year.
The increase in net interest income compared to the second quarter of last year was due to a $216.6 million, or 22%, increase in average total earning assets to $1.22 billion compared to $1.01 billion the second quarter of 2020. The increase included a $129.3 million increase in average investment securities and a $88.3 increase in interest bearing deposits at other financial institutions. Total average loans decreased by $1.0 million. The decrease in average total loans included a decrease of $6.9 million in average Paycheck Protection Program (PPP) loans, which averaged $78.9 million for the quarter. During the second quarter of 2021 $1.10 million of PPP fees were recognized, resulting in a 6.60% annualized yield on average PPP loans for three months ended June, 30 2021. The PPP, pandemic-related stimulus payments and an overall influx of deposits drove a $228.9 million, or 25%, increase in total average deposits for the second quarter of 2021 compared to the second quarter of last year. With the majority of this liquidity being deployed in the investment securities portfolio or held in interest-bearing deposit accounts at other financial institutions, the net interest margin dropped 62 basis points to 3.37% compared to 3.99% for the second quarter of the prior year.
Net interest income for the six months ended June 30, 2021, increased by $1.39 million, or 8%, to $19.88 million as compared to $18.49 million for the first six months of 2020. The net interest margin for the first six months of 2021 decreased by 48 basis points to 3.44% compared to 3.92% for the first six months of 2020. Average total loans for the first six months of 2021 were $692.9 million, an increase of $28.0 million, or 4%, as compared to $664.9 million for the first six months of 2020. Average total deposits for the first six months of 2021 were $1.10 billion, an increase of $216.9 million, or 25%, as compared to $880.1 million for the first six months of 2020.
Provision for Loan Losses and Asset Quality
There was no provision for loan losses recorded for the quarter ended June 30, 2021, as compared to $0.50 million for the quarter ended March 31, 2021, and $2.51 million for the second quarter of 2020. The decreased provision reflects an improved credit outlook, especially as it relates to pandemic related losses. Net recoveries for the second quarter equaled $0.11 million.
Total nonperforming assets, which include troubled debt restructures performing in accordance with their modified terms, equaled $10.2 million as of June 30, 2021, as compared to $8.4 million as of March 31, 2021, and $11.6 million at June 30, 2020. At June 30, 2021, the ratio of nonperforming loans to total loans equaled 1.50%, as compared to 1.17% at March 31, 2021, and 1.52% at June 30, 2020. The allowance for loan losses to total loans was 1.66% as of June 30, 2021, as compared to 1.56% at March 31, 2021, and 1.43% as of June 30, 2020. The ratio of the allowance for loan losses to nonperforming loans decreased to 110.2% as of June 30, 2021, as compared to 133.0% at March 31, 2021, and 93.6% at June 30, 2020.
Management continues to work closely with borrowers to ensure credit issues are identified and addressed as early as possible, improving the overall probability of repayment. Blackhawk provided payment relief to borrowers negatively affected by the COVID-19 pandemic. Loans with an aggregate balance in excess of $70 million were modified, and as of June 30, 2021 all of the modified credits have either returned to normal payments or are reflected in the nonperforming loan numbers, except for a small number of credits totaling $2.4 million for which the modified terms have been extended and the borrowers are continuing to perform under the modified terms.
Non-Interest Income and Operating Expenses
Non-interest income for the quarter ended June 30, 2021 totaled $4.69 million, a $0.34 million decrease compared to $5.04 million the prior quarter, and a $0.16 million decrease from the $4.85 million recorded in the second quarter of 2020. The decrease compared to the first quarter of 2021 included a decrease of $0.48 million in net revenue from the sale and servicing of mortgage loans. This was partially offset by a $0.19 million increase in debit card interchange fees. The decrease in non-interest income compared to the second quarter of 2020 was primarily due to a $0.55 million decrease in revenue from the sale and servicing of mortgage loans that was partially offset by a $0.29 million increase in debit card interchange fees.
Non-interest income for the first six months of 2021 increased $1.38 million, or 17%, to $9.73 million as compared to $8.35 million for the first six months of 2020, including a $1.17 million increase in the sale and servicing of loans and a $0.49 million increase in debit card interchange fees.
Operating expenses for the quarter ended June 30, 2021 totaled $9.46 million, a decrease of $0.25 million, or 3%, compared to the quarter ended March 31, 2021, and increased by $0.51 million, or 6%, compared to the second quarter of 2020.
Operating expenses for the six-month period ended June 30, 2021, totaled $19.18 million, a $1.44 million, or 8%, increase over the first six month of 2020.
About Blackhawk Bancorp
Blackhawk Bancorp, Inc. is headquartered in Beloit, Wisconsin and is the parent company of Blackhawk Bank. The combined entity operates eleven full-service banking centers and a dedicated commercial office, which are located in Rock County, Wisconsin and the Illinois counties of Winnebago, Boone, McHenry, Lake, and Kane. The Company's footprint stretches along the I-90 corridor from Janesville, Wisconsin to Elgin, Illinois and into the Northwest collar counties of the Chicagoland area. The company offers a variety of value-added consultative services to its business customers and their employees related to the financial products it provides.
Disclosures Regarding non-GAAP Measures
This report refers to financial measures that are identified as non-GAAP that the Company believes help to evaluate and measure the Company's performance, including the presentation of the net interest margin ratio and efficiency ratio calculations on a taxable-equivalent basis. Non-GAAP measures are also used to assist investor comparison by identifying nonrecurring events such as acquisition-related expenses, nonrecurring securities gains and the impact such items have on the performance measures of return on average assets, return on average equity, diluted earnings per share, and the efficiency ratio. This supplemental information should not be considered in isolation or as a substitute for the related GAAP measures.
Forward-Looking Statements
When used in this communication, the words "believes," "expects," "likely", "would", and similar expressions are intended to identify forward-looking statements. The company's actual results may differ materially from those described in the forward-looking statements. Factors which could cause such a variance to occur include, but are not limited to: heightened competition; adverse state and federal regulation; failure to obtain new or retain existing customers; ability to attract and retain key executives and personnel; changes in interest rates; unanticipated changes in industry trends; unanticipated changes in credit quality and risk factors, including general economic conditions particularly in the Company's markets; potential deterioration in real estate values, success in gaining regulatory approvals when required; changes in the Federal Reserve Board monetary policies; unexpected outcomes of new and existing litigation in which Blackhawk or its subsidiaries, officers, directors or employees is named defendants; technological changes; changes in accounting principles generally accepted in the United States; changes in assumptions or conditions affecting the application of "critical accounting policies"; inability to recover previously recorded losses as anticipated, and the inability of third party vendors to perform critical services for the company or its customers. The inclusion of forward-looking information should not be construed as a representation by the Company or any person that future events or plans contemplated by the Company will be achieved. The Company undertakes no obligation to publicly update or revise any forward-looking statements whether as a result of new information or otherwise.
Further information is available on the company's website at www.blackhawkbank.com.
Blackhawk Bancorp, Inc.
Todd J. James, Chairman & CEO
[email protected]
Matthew McDonnell, SVP & CFO
[email protected]
Phone: (608) 364-8911
BLACKHAWK BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
JUNE 30, 2021 AND DECEMBER 31, 2020
(UNAUDITED)
| June 30, | December 31, | |||||||
Assets | 2021 | 2020 | ||||||
| (Dollars in thousands, except | ||||||||
| share and per share data) | ||||||||
Cash and due from banks | $ | 16,418 | $ | 12,012 | ||||
Interest-bearing deposits in banks and other institutions | 136,657 | 42,119 | ||||||
Total cash and cash equivalents | 153,075 | 54,131 | ||||||
Certificates of deposit in banks and other institutions | 3,416 | 4,159 | ||||||
Equity securities at fair value | 2,521 | 2,517 | ||||||
Securities available-for-sale | 445,551 | 349,565 | ||||||
Loans held for sale | 6,469 | 6,096 | ||||||
Federal Home Loan Bank stock, at cost | 2,150 | 2,150 | ||||||
Loans, less allowance for loan losses of $11,229 and $10,764 | ||||||||
at June 30, 2021 and December 31, 2020, respectively | 660,269 | 662,225 | ||||||
Premises and equipment, net | 20,915 | 20,254 | ||||||
Goodwill and core deposit intangible | 11,819 | 12,018 | ||||||
Mortgage servicing rights | 3,720 | 3,409 | ||||||
Cash surrender value of bank-owned life insurance | 11,285 | 11,126 | ||||||
Other assets | 15,559 | 13,949 | ||||||
Total assets | $ | 1,336,749 | $ | 1,141,599 | ||||
Liabilities and Stockholders' Equity | ||||||||
Liabilities | ||||||||
Deposits: | ||||||||
Noninterest-bearing | $ | 389,940 | $ | 268,866 | ||||
Interest-bearing | 799,057 | 718,388 | ||||||
Total deposits | 1,188,997 | 987,254 | ||||||
Subordinated debentures and notes (including $1,031 at fair value at | ||||||||
June 30, 2021 and December 31, 2020) | 20,155 | 5,155 | ||||||
Senior secured term note | 12,056 | 12,833 | ||||||
Other borrowings | 5,000 | 14,000 | ||||||
Other liabilities | 11,131 | 10,602 | ||||||
Total liabilities | 1,237,339 | 1,029,844 | ||||||
Stockholders' equity | ||||||||
Common stock, $0.01 par value, 10,000,000 shares authorized; | ||||||||
3,473,819 and 3,435,348 shares issued as of June 30, 2021 and | ||||||||
December 31, 2020, respectively | 35 | 35 | ||||||
Additional paid-in capital | 35,455 | 35,062 | ||||||
Retained earnings | 76,479 | 69,676 | ||||||
Treasury stock, 630,991 and 62,999 shares at cost as of June 30, 2021 | ||||||||
and December 31, 2020, respectively | (18,952 | ) | (941 | ) | ||||
Accumulated other comprehensive income (loss) | 6,393 | 7,923 | ||||||
Total stockholders' equity | 99,410 | 111,755 | ||||||
Total liabilities and stockholders' equity | $ | 1,336,749 | $ | 1,141,599 | ||||
BLACKHAWK BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
| Six months ended June 30, | ||||||||
| 2021 | 2020 | |||||||
| (Amounts in thousands, except per share data) | ||||||||
Interest Income: | ||||||||
Interest and fees on loans | $ | 16,776 | $ | 16,691 | ||||
Interest and dividends on available-for-sale securities: | ||||||||
Taxable | 3,479 | 3,123 | ||||||
Tax-exempt | 762 | 695 | ||||||
Interest on deposits in other financial institutions | 89 | 202 | ||||||
Total interest income | 21,106 | 20,711 | ||||||
Interest Expense: | ||||||||
Interest on deposits | 836 | 1,816 | ||||||
Interest on subordinated debentures | 158 | 98 | ||||||
Interest on senior secured term note | 210 | 267 | ||||||
Interest on other borrowings | 20 | 41 | ||||||
Total interest expense | 1,224 | 2,223 | ||||||
Net interest income before provision for loan losses | 19,882 | 18,488 | ||||||
Provision for loan losses | 500 | 3,270 | ||||||
Net interest income after provision for loan losses | 19,382 | 15,218 | ||||||
Noninterest Income: | ||||||||
Service charges on deposits accounts | 1,354 | 1,507 | ||||||
Net gain on sale of loans | 4,579 | 4,097 | ||||||
Net loan servicing income | 404 | (280 | ) | |||||
Debit card interchange fees | 2,245 | 1,757 | ||||||
Net gains on sales of securities available-for-sale | - | 107 | ||||||
Net other gains (losses) | 49 | 6 | ||||||
Increase in cash surrender value of bank-owned life insurance | 159 | 159 | ||||||
Change in value of equity securities | (30 | ) | 60 | |||||
Other | 967 | 935 | ||||||
Total noninterest income | 9,727 | 8,348 | ||||||
Noninterest Expenses: | ||||||||
Salaries and employee benefits | 11,487 | 10,512 | ||||||
Occupancy and equipment | 2,274 | 2,156 | ||||||
Data processing | 1,232 | 1,071 | ||||||
Debit card processing and issuance | 928 | 791 | ||||||
Advertising and marketing | 169 | 135 | ||||||
Amortization of core deposit intangible | 199 | 223 | ||||||
Professional fees | 789 | 772 | ||||||
Office Supplies | 170 | 178 | ||||||
Telephone | 286 | 299 | ||||||
Other | 1,641 | 1,601 | ||||||
Total noninterest expenses | 19,175 | 17,738 | ||||||
Income before income taxes | 9,934 | 5,828 | ||||||
Provision for income taxes | 2,449 | 1,191 | ||||||
Net income | $ | 7,485 | $ | 4,637 | ||||
Key Ratios | ||||||||
Basic Earnings Per Common Share | $ | 2.31 | $ | 1.40 | ||||
Diluted Earnings Per Common Share | 2.31 | 1.40 | ||||||
Dividends Per Common Share | 0.22 | 0.22 | ||||||
Net Interest Margin (1) | 3.44 | % | 3.92 | % | ||||
Efficiency Ratio (1)(2) | 64.64 | % | 65.89 | % | ||||
Return on Assets | 1.21 | % | 0.90 | % | ||||
Return on Common Equity | 13.93 | % | 9.19 | % | ||||
(1) Non-GAAP Presentations: Management discloses certain non-GAAP financial measures to evaluate and measure the Company's performance, including the presentation of the net interest margin and efficiency ratio calculations on a taxable equivalent basis ("TE"). The net interest margin ratio is calculated by dividing net interest income on a tax equivalent basis by average earning assets for the period. Management believes this measure provides investors with information regarding comparative balance sheet profitability.
(2) The efficiency ratio is calculated as noninterest expense divided by the sum of net interest income on a TE basis, noninterest income less any securities gains (losses) or other gains (losses), and also includes a TE adjustment on the increases in cash surrender value of bank-owned life insurance.
BLACKHAWK BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
| For the Quarter Ended | ||||||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||
| 2021 | 2021 | 2020 | 2020 | 2020 | ||||||||||||||||
| (Dollars in thousands, except per share data) | ||||||||||||||||||||
Interest Income: | ||||||||||||||||||||
Interest and fees on loans | $ | 8,621 | $ | 8,155 | $ | 8,079 | $ | 8,671 | $ | 8,658 | ||||||||||
Interest on available-for-sale securities: | ||||||||||||||||||||
Taxable | 1,759 | 1,721 | 1,598 | 1,607 | 1,618 | |||||||||||||||
Tax-exempt | 378 | 384 | 384 | 372 | 371 | |||||||||||||||
Interest on deposits in other financial institutions | 48 | 41 | 33 | 41 | 40 | |||||||||||||||
Total interest income | 10,806 | 10,301 | 10,094 | 10,691 | 10,687 | |||||||||||||||
Interest Expense: | ||||||||||||||||||||
Interest on deposits | 421 | 415 | 458 | 565 | 639 | |||||||||||||||
Interest on subordinated debentures | 117 | 41 | 41 | 42 | 45 | |||||||||||||||
Interest on senior secured term note | 104 | 107 | 113 | 119 | 111 | |||||||||||||||
Interest on other borrowings | - | 20 | 40 | 47 | 19 | |||||||||||||||
Total interest expense | 642 | 583 | 652 | 773 | 814 | |||||||||||||||
Net interest income before provision for loan losses | 10,164 | 9,718 | 9,442 | 9,918 | 9,873 | |||||||||||||||
Provision for loan losses | - | 500 | 1,715 | 2,615 | 2,505 | |||||||||||||||
Net interest income after provision for loan losses | 10,164 | 9,218 | 7,727 | 7,303 | 7,368 | |||||||||||||||
Noninterest Income: | ||||||||||||||||||||
Service charges on deposits accounts | 663 | 690 | 781 | 747 | 610 | |||||||||||||||
Net gain on sale of loans | 2,217 | 2,362 | 3,572 | 3,412 | 3,192 | |||||||||||||||
Net loan servicing income | 36 | 369 | (177 | ) | 26 | (389 | ) | |||||||||||||
Debit card interchange fees | 1,218 | 1,027 | 979 | 1,002 | 924 | |||||||||||||||
Net gains on sales of securities available-for-sale | - | - | 428 | - | 8 | |||||||||||||||
Net other gains (losses) | 7 | 42 | - | 58 | 6 | |||||||||||||||
Increase in cash surrender value of bank-owned life insurance | 72 | 87 | 75 | 76 | 74 | |||||||||||||||
Other | 479 | 458 | 310 | 344 | 425 | |||||||||||||||
Total noninterest income | 4,692 | 5,035 | 5,968 | 5,665 | 4,850 | |||||||||||||||
Noninterest Expenses: | ||||||||||||||||||||
Salaries and employee benefits | 5,753 | 5,734 | 5,851 | 5,585 | 5,477 | |||||||||||||||
Occupancy and equipment | 1,092 | 1,182 | 986 | 1,137 | 1,074 | |||||||||||||||
Data processing | 641 | 591 | 683 | 629 | 561 | |||||||||||||||
Debit card processing and issuance | 503 | 425 | 384 | 409 | 394 | |||||||||||||||
Advertising and marketing | 70 | 99 | 75 | 87 | 38 | |||||||||||||||
Amortization of intangibles | 96 | 104 | 107 | 107 | 107 | |||||||||||||||
Professional fees | 399 | 390 | 373 | 386 | 405 | |||||||||||||||
Office Supplies | 93 | 77 | 90 | 94 | 88 | |||||||||||||||
Telephone | 144 | 141 | 140 | 138 | 149 | |||||||||||||||
Other | 673 | 968 | 637 | 714 | 659 | |||||||||||||||
Total noninterest expenses | 9,464 | 9,711 | 9,326 | 9,286 | 8,952 | |||||||||||||||
Income before income taxes | 5,392 | 4,542 | 4,369 | 3,682 | 3,266 | |||||||||||||||
Provision for income taxes | 1,337 | 1,112 | 1,021 | 819 | 704 | |||||||||||||||
Net income | $ | 4,055 | $ | 3,430 | $ | 3,348 | $ | 2,863 | $ | 2,562 | ||||||||||
Key Ratios | ||||||||||||||||||||
Basic Earnings Per Common Share | $ | 1.30 | $ | 1.02 | $ | 1.00 | $ | 0.86 | $ | 0.77 | ||||||||||
Diluted Earnings Per Common Share | 1.30 | 1.02 | 1.00 | 0.86 | 0.77 | |||||||||||||||
Dividends Per Common Share | 0.11 | 0.11 | 0.11 | 0.11 | 0.11 | |||||||||||||||
Net Interest Margin (1) | 3.37 | % | 3.52 | % | 3.63 | % | 3.83 | % | 3.99 | % | ||||||||||
Efficiency Ratio (1)(2) | 63.28 | % | 65.53 | % | 61.80 | % | 59.39 | % | 60.43 | % | ||||||||||
Return on Assets | 1.26 | % | 1.16 | % | 1.20 | % | 1.03 | % | 0.96 | % | ||||||||||
Return on Common Equity | 15.74 | % | 12.44 | % | 12.08 | % | 10.64 | % | 10.16 | % | ||||||||||
(1) Non-GAAP Presentations: Management discloses certain non-GAAP financial measures to evaluate and measure the Company's performance, including the presentation of net interest income, net interest margin and efficiency ratio calculations on a taxable equivalent basis ("TE"). The net interest margin is calculated by dividing net interest income on a TE basis by average earning assets for the period. Management believes this measure provides investors with information regarding comparative balance sheet profitability.
(2) The efficiency ratio is calculated as noninterest expense divided by the sum of net interest income on an TE basis, noninterest income less any securities gains (losses) or other gains (losses), and also includes a TE adjustment on interest on tax-exempt securities, loans, and the increases in cash surrender value of bank-owned life insurance.
(UNAUDITED)
| As of | ||||||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||
| 2021 | 2021 | 2020 | 2020 | 2020 | ||||||||||||||||
| (Amounts in thousands, except per share data) | ||||||||||||||||||||
Cash and due from banks | $ | 16,418 | $ | 15,108 | $ | 12,012 | $ | 17,403 | $ | 14,527 | ||||||||||
Interest-bearing deposits in banks and other | 140,073 | 50,199 | 46,278 | 47,848 | 25,246 | |||||||||||||||
Securities | 448,072 | 379,187 | 352,082 | 317,761 | 301,726 | |||||||||||||||
Net loans/leases | 666,738 | 700,399 | 668,321 | 681,060 | 697,881 | |||||||||||||||
Goodwill and core deposit intangible | 11,819 | 11,914 | 12,018 | 12,125 | 12,232 | |||||||||||||||
Other assets | 53,629 | 50,826 | 50,888 | 50,105 | 49,485 | |||||||||||||||
Total assets | $ | 1,336,749 | $ | 1,207,633 | $ | 1,141,599 | $ | 1,126,302 | $ | 1,101,097 | ||||||||||
Deposits | $ | 1,188,997 | $ | 1,068,197 | $ | 987,254 | $ | 960,773 | $ | 939,066 | ||||||||||
Subordinated debentures | 20,155 | 5,155 | 5,155 | 5,155 | 5,155 | |||||||||||||||
Senior secured term note | 12,056 | 12,445 | 12,833 | 13,222 | 13,611 | |||||||||||||||
Borrowings | 5,000 | 4,000 | 14,000 | 29,000 | 29,000 | |||||||||||||||
Other liabilities | 11,131 | 7,138 | 10,602 | 10,161 | 9,758 | |||||||||||||||
Stockholders' equity | 99,410 | 110,698 | 111,755 | 107,991 | 104,507 | |||||||||||||||
Total liabilities and stockholders' equity | $ | 1,336,749 | $ | 1,207,633 | $ | 1,141,599 | $ | 1,126,302 | $ | 1,101,097 | ||||||||||
ASSET QUALITY DATA
(Amounts in thousands) | June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||||||
| 2021 | 2021 | 2020 | 2020 | 2020 | ||||||||||||||||
Non-accrual loans | $ | 8,228 | $ | 6,361 | $ | 7,013 | $ | 8,584 | $ | 8,427 | ||||||||||
Accruing loans past due 90 days or more | - | - | - | 196 | - | |||||||||||||||
Troubled debt restructures - accruing | 1,958 | 1,996 | 2,057 | 2,176 | 2,361 | |||||||||||||||
Total nonperforming loans | $ | 10,186 | $ | 8,357 | $ | 9,070 | $ | 10,956 | $ | 10,788 | ||||||||||
Other real estate owned | - | - | 1 | 1 | 762 | |||||||||||||||
Total nonperforming assets | $ | 10,186 | $ | 8,357 | $ | 9,071 | $ | 10,957 | $ | 11,550 | ||||||||||
Total loans | $ | 677,967 | $ | 711,515 | $ | 679,085 | $ | 691,003 | $ | 707,983 | ||||||||||
Allowance for loan losses | $ | 11,229 | $ | 11,116 | $ | 10,764 | $ | 9,943 | $ | 10,102 | ||||||||||
| $ | 666,738 | $ | 700,399 | $ | 668,321 | $ | 681,060 | $ | 697,881 | |||||||||||
Nonperforming Assets to total Assets | 0.76 | % | 0.69 | % | 0.79 | % | 0.97 | % | 1.05 | % | ||||||||||
Nonperforming loans to total loans | 1.50 | % | 1.17 | % | 1.34 | % | 1.59 | % | 1.52 | % | ||||||||||
Allowance for loan losses to total loans | 1.66 | % | 1.56 | % | 1.59 | % | 1.44 | % | 1.43 | % | ||||||||||
Allowance for loan losses to nonperforming loans | 110.2 | % | 133.0 | % | 118.7 | % | 90.8 | % | 93.6 | % | ||||||||||
| For the Quarter Ended | ||||||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||
ROLLFORWARD OF ALLOWANCE | 2021 | 2021 | 2020 | 2020 | 2020 | |||||||||||||||
Beginning Balance | $ | 11,116 | $ | 10,764 | $ | 9,943 | $ | 10,102 | $ | 8,160 | ||||||||||
Provision | - | 500 | 1,715 | 2,615 | 2,505 | |||||||||||||||
Loans charged off | 61 | 582 | 1,334 | 2,892 | 639 | |||||||||||||||
Loan recoveries | 174 | 434 | 440 | 118 | 76 | |||||||||||||||
Net charge-offs | (113 | ) | 148 | 894 | 2,774 | 563 | ||||||||||||||
Ending Balance | $ | 11,229 | $ | 11,116 | $ | 10,764 | $ | 9,943 | $ | 10,102 | ||||||||||
BLACKHAWK BANCORP, INC. AND SUBSIDIARIES
ANALYSIS of AVERAGE BALANCES & TAX EQUIVALENT INTEREST RATES
Average Balance Sheet with Resultant Interest and Rates
(Dollars in thousands - unaudited)
(Yields on a tax-equivalent basis) (1) | For the Quarter Ended | |||||||||||||||||||||||||||||||||||
| June 30, 2021 | March 31, 2021 | June 30, 2020 | ||||||||||||||||||||||||||||||||||
| Average | Average | Average | Average | Average | Average | |||||||||||||||||||||||||||||||
| Balance | Interest | Rate | Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||||||||||||||||||||
Interest Earning Assets: | ||||||||||||||||||||||||||||||||||||
Interest-bearing deposits and other | $ | 105,385 | $ | 48 | 0.18 | % | $ | 74,108 | $ | 41 | 0.22 | % | $ | 17,056 | $ | 40 | 0.95 | % | ||||||||||||||||||
Investment securities: | ||||||||||||||||||||||||||||||||||||
Taxable investment securities | 365,329 | 1,759 | 1.93 | % | 320,740 | 1,721 | 2.18 | % | 241,831 | 1,618 | 2.69 | % | ||||||||||||||||||||||||
Tax-exempt investment securities | 52,197 | 378 | 3.73 | % | 52,122 | 384 | 3.83 | % | 46,443 | 371 | 4.13 | % | ||||||||||||||||||||||||
Total Investment securities | 417,526 | 2,137 | 2.16 | % | 372,862 | 2,105 | 2.41 | % | 288,274 | 1,989 | 2.92 | % | ||||||||||||||||||||||||
Loans | 700,109 | 8,621 | 4.94 | % | 685,654 | 8,155 | 4.82 | % | 701,080 | 8,658 | 4.97 | % | ||||||||||||||||||||||||
Total Earning Assets | $ | 1,223,020 | $ | 10,806 | 3.58 | % | $ | 1,132,624 | $ | 10,301 | 3.73 | % | $ | 1,006,410 | $ | 10,687 | 4.31 | % | ||||||||||||||||||
Allowance for loan losses | (11,221 | ) | (11,075 | ) | (8,769 | ) | ||||||||||||||||||||||||||||||
Cash and due from banks | 17,124 | 16,052 | 15,232 | |||||||||||||||||||||||||||||||||
Other assets | 58,008 | 58,706 | 58,475 | |||||||||||||||||||||||||||||||||
Total Assets | $ | 1,286,931 | $ | 1,196,307 | $ | 1,071,348 | ||||||||||||||||||||||||||||||
Interest Bearing Liabilities: | ||||||||||||||||||||||||||||||||||||
Interest bearing checking accounts | $ | 302,946 | $ | 180 | 0.24 | % | $ | 284,527 | $ | 161 | 0.23 | % | $ | 298,831 | $ | 157 | 0.21 | % | ||||||||||||||||||
Savings and money market deposits | 396,476 | 96 | 0.10 | % | 356,615 | 84 | 0.10 | % | 305,966 | 105 | 0.14 | % | ||||||||||||||||||||||||
Time deposits | 77,155 | 145 | 0.75 | % | 81,807 | 170 | 0.84 | % | 101,808 | 377 | 1.49 | % | ||||||||||||||||||||||||
Total interest bearing deposits | 776,577 | 421 | 0.22 | % | 722,949 | 415 | 0.23 | % | 706,605 | 639 | 0.36 | % | ||||||||||||||||||||||||
Subordinated debentures and notes | 13,067 | 117 | 3.59 | % | 5,155 | 41 | 3.23 | % | 5,155 | 45 | 3.53 | % | ||||||||||||||||||||||||
Borrowings | 16,501 | 104 | 2.51 | % | 26,369 | 127 | 1.96 | % | 39,436 | 130 | 1.32 | % | ||||||||||||||||||||||||
Total Interest-Bearing Liabilities | $ | 806,145 | $ | 642 | 0.32 | % | $ | 754,473 | $ | 583 | 0.31 | % | $ | 751,196 | $ | 814 | 0.44 | % | ||||||||||||||||||
Interest Rate Spread | 3.26 | % | 3.42 | % | 3.87 | % | ||||||||||||||||||||||||||||||
Noninterest checking accounts | 371,146 | 322,667 | 212,196 | |||||||||||||||||||||||||||||||||
Other liabilities | 6,283 | 7,373 | 6,570 | |||||||||||||||||||||||||||||||||
Total liabilities | 1,183,574 | 1,084,513 | 969,962 | |||||||||||||||||||||||||||||||||
Total Stockholders' equity | 103,357 | 111,794 | 101,386 | |||||||||||||||||||||||||||||||||
Total Liabilities and | ||||||||||||||||||||||||||||||||||||
Stockholders' Equity | $ | 1,286,931 | $ | 1,196,307 | $ | 1,071,348 | ||||||||||||||||||||||||||||||
Net Interest Income/Margin | $ | 10,164 | 3.37 | % | $ | 9,718 | 3.52 | % | $ | 9,873 | 3.99 | % | ||||||||||||||||||||||||
(1) Management discloses certain non-GAAP financial measures to evaluate and measure the Company's performance including a presentation of net interest income with a net interest margin ratio on a tax-equivalent (TE) basis. The net interest margin is calculated by dividing net interest income on a TE basis by average earning assets for the period. Management believes this measure provides investors with information regarding comparative balance sheet profitability. Nonaccrual loans are included in the above-stated average balances.
BLACKHAWK BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCE SHEET WITH RESULTANT INTEREST AND RATES
Average Balance Sheet with Resultant Interest and Rates
(Amounts in thousands) | ||||||||||||||||||||||||
(yields on a tax-equivalent basis)(1) | For the Six Months Ended | |||||||||||||||||||||||
| June 30, 2021 | June 30, 2020 | |||||||||||||||||||||||
| Average | Average | Average | Average | |||||||||||||||||||||
| Balance | Interest | Rate | Balance | Interest | Rate | |||||||||||||||||||
Interest Earning Assets: | ||||||||||||||||||||||||
Interest-bearing deposits and other | $ | 89,833 | $ | 89 | 0.20 | % | $ | 27,362 | $ | 202 | 1.48 | % | ||||||||||||
Investment securities: | ||||||||||||||||||||||||
Taxable investment securities | 343,158 | 3,479 | 2.04 | % | 223,178 | 3,123 | 2.81 | % | ||||||||||||||||
Tax-exempt investment securities | 52,160 | 762 | 3.78 | % | 43,659 | 695 | 4.11 | % | ||||||||||||||||
Total Investment securities | 395,318 | 4,241 | 2.27 | % | 266,837 | 3,818 | 3.03 | % | ||||||||||||||||
Loans | 692,921 | 16,776 | 4.88 | % | 664,941 | 16,691 | 5.05 | % | ||||||||||||||||
Total Earning Assets | $ | 1,178,072 | $ | 21,106 | 3.65 | % | $ | 959,140 | $ | 20,711 | 4.38 | % | ||||||||||||
Allowance for loan losses | (11,148 | ) | (8,392 | ) | ||||||||||||||||||||
Cash and due from banks | 16,591 | 15,427 | ||||||||||||||||||||||
Other assets | 59,141 | 58,696 | ||||||||||||||||||||||
Total Assets | $ | 1,242,656 | $ | 1,024,871 | ||||||||||||||||||||
Interest Bearing Liabilities: | ||||||||||||||||||||||||
Interest bearing checking accounts | $ | 293,787 | $ | 341 | 0.23 | % | $ | 284,840 | $ | 491 | 0.35 | % | ||||||||||||
Savings and money market deposits | 376,656 | 180 | 0.10 | % | 294,040 | 467 | 0.32 | % | ||||||||||||||||
Time deposits | 79,468 | 315 | 0.80 | % | 107,837 | 858 | 1.60 | % | ||||||||||||||||
Total interest bearing deposits | 749,911 | 836 | 0.22 | % | 686,717 | 1,816 | 0.53 | % | ||||||||||||||||
Subordinated debentures | 9,133 | 158 | 3.49 | % | 5,155 | 98 | 3.81 | % | ||||||||||||||||
Borrowings | 21,408 | 230 | 2.17 | % | 32,018 | 308 | 1.93 | % | ||||||||||||||||
Total Interest-Bearing Liabilities | $ | 780,452 | $ | 1,224 | 0.32 | % | $ | 723,890 | $ | 2,222 | 0.62 | % | ||||||||||||
Interest Rate Spread | 3.33 | % | 3.76 | % | ||||||||||||||||||||
Noninterest checking accounts | 347,041 | 193,372 | ||||||||||||||||||||||
Other liabilities | 6,825 | 6,715 | ||||||||||||||||||||||
Total liabilities | 1,134,318 | 923,977 | ||||||||||||||||||||||
Total Stockholders' equity | 108,338 | 100,894 | ||||||||||||||||||||||
Total Liabilities and | ||||||||||||||||||||||||
Stockholders' Equity | $ | 1,242,656 | $ | 1,024,871 | ||||||||||||||||||||
Net Interest Income/Margin | $ | 19,882 | 3.44 | % | $ | 18,489 | 3.92 | % | ||||||||||||||||
(1) Management discloses certain non-GAAP financial measures to evaluate and measure the Company's performance including a presentation of net interest income with a net interest margin ratio on a tax-equivalent (TE) basis. The net interest margin is calculated by dividing net interest income on a TE basis by average earning assets for the period. Management believes this measure provides investors with information regarding comparative balance sheet profitability. Nonaccrual loans are included in the above-stated average balances.
SOURCE: Blackhawk Bancorp, Inc.