Blackhawk Bancorp : Blackhawk Bancorp, Inc.

Blackhawk Bancorp Announces 2021 Second Quarter Earnings

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
[e-mail]

Matthew McDonnell, SVP & CFO
[e-mail]

Phone: [phone]

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.

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https://www.accesswire.com/656488/Blackhawk-Bancorp-Announces-2021-Second-Quarter-Earnings

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