BLACKHAWK BANCORP, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

MARCH 31, 2022 AND DECEMBER 31, 2021 (UNAUDITED)

Assets

March 31, 2022

December 31, 2021

(Dollars in thousands, except share and per share data)

Cash and due from banks

Interest-bearing deposits in banks and other institutions

Total cash and cash equivalents

$

13,413 $ 10,846

40,189 55,720

53,602 66,566

Certificates of deposit in banks and other institutions Equity securities at fair value

Securities available-for-sale Loans held for sale

Federal Home Loan Bank stock, at cost

Loans, less allowance for loan losses of $10,995 and $11,125 at March 31, 2022 and December 31, 2021, respectively Premises and equipment, net

Goodwill and core deposit intangible Mortgage servicing rights

Cash surrender value of bank-owned life insurance Other assets

Total assets

Liabilities and Stockholders' Equity

Liabilities

Deposits: Noninterest-bearing Interest-bearing

Total deposits

  • $ 1,330,643

$

1,199,627 1,197,041

1,914 2,161

2,500 2,553

481,920 504,341

1,711 2,585

2,150 2,150

714,745 696,292

20,670 20,778

11,536 11,628

4,042 3,833

11,526 11,440

24,327 16,911

$ 1,341,238

380,292

$ 380,601

819,335 816,440

Subordinated debentures and notes, net of issuance costs (including $1,031 at fair value at March 31, 2022 and December 31, 2021)

Senior secured term note

Other borrowings

Other liabilities

Total liabilities

Stockholders' equity

Common stock, $0.01 par value, 10,000,000 shares authorized; 3,506,214 and 3,479,069 shares issued as of March 31, 2022 and December 31, 2021, respectively

Additional paid-in capital Retained earnings

36,115 35,890

84,261 81,987

19,812 19,775

10,889 11,278

5,000 5,000

7,414 6,985

1,242,742

35

Treasury stock, 632,686 and 630,991 shares at cost as of March 31, 2022 and December 31, 2021, respectively

Accumulated other comprehensive income (loss)

Total stockholders' equity

Total liabilities and stockholders' equity

$

(19,010) (13,500) 87,901 1,330,643

1,240,079

35

(18,952)

2,199 101,159 $ 1,341,238

BLACKHAWK BANCORP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

Three months ended March 31,2022

2021

(Amounts in thousands, except per share data)Interest Income:

Interest and fees on loans

$

7,808 $ 8,155

Interest and dividends on available-for-sale securities:

Taxable

2,068 1,721

Tax-exempt

365 384

Interest on deposits in other financial institutions

24 41

Total interest income

10,265 10,301

Interest Expense:

Interest on deposits

322 415

Interest on subordinated debentures Interest on senior secured term note Interest on other borrowings

195 41

91 107

- 20

Total interest expense

608 583

Net interest income before provision for loan losses Provision for loan losses

9,657 9,718

- 500

Net interest income after provision for loan losses

9,657 9,218

Noninterest Income:

Service charges on deposits accounts Net gain on sale of loans

913 690

1,146 2,362

Net loan servicing income Debit card interchange fees

402 369

1,079 1,027

Net gains on sales of securities available-for-sale Net other gains (losses)

Increase in cash surrender value of bank-owned life insuran Change in value of equity securities

- (4) 86

- 42 87

(64) (35)

Other

360 493

Total noninterest income

3,918 5,035

Noninterest Expenses:

Salaries and employee benefits Occupancy and equipment Data processing

6,222 5,734

1,212 1,182

708 591

Debit card processing and issuance Advertising and marketing Amortization of core deposit intangible Professional fees

513 425

108 99

96 104

389 390

Office Supplies Telephone Other

86 77

140 141

697 968

Total noninterest expenses

10,171 9,711

Income before income taxes Provision for income taxes

3,404 4,542

785 1,112

Net income

$

2,619 $ 3,430

Key Ratios

Basic Earnings Per Common Share Diluted Earnings Per Common Share Dividends Per Common Share

$

0.92

$ 1.02

0.92 1.02

0.12 0.11

Net Interest Margin (1) Efficiency Ratio (1)(2) Return on Assets

3.13% 3.52%

74.35% 65.53%

0.80% 1.16%

Return on Common Equity

10.82% 12.44%

(1) Non-GAAP Presentations: Management discloses certain non-GAAP financial measures to evaluate and measure the Company's performance, including the presentation of the net interest margin and efficiency ratio calculations on a taxable equivalent basis ("TE"). The net interest margin ratio is calculated by dividing net interest income on a tax equivalent basis by average earning assets for the period. Management believes this measure provides investors with information regarding comparative balance sheet profitability.

(2) The efficiency ratio is calculated as noninterest expense divided by the sum of net interest income on a TE basis, noninterest income less any securities gains (losses) or other gains (losses), and also includes a TE adjustment on the increases in cash surrender value of bank-owned life insurance.

BLACKHAWK BANCORP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

For the Quarter EndedMarch 31, 2022

December 31, 2021

September 30, 2021

June 30, 2021

March 31, 2021

(Dollars in thousands, except per share data)Interest Income:

Interest and fees on loans

$

  • 7,808 $

Interest on available-for-sale securities:

Taxable

Tax-exempt

Interest on deposits in other financial institutions

Total interest income

2,068 365 24 10,265

  • 7,876 $ 1,960 369 33 10,238

  • 8,180 $ 1,830 419 61 10,490

8,621 $ 8,155

1,759 1,721

378 384

48 41

10,806 10,301

Interest Expense:

Interest on deposits

322

319

421

421 415

Interest on subordinated debentures Interest on senior secured term note Interest on other borrowings

195

196

195

117 41

91 -

98 -

103 -

104 107

- 20

Total interest expense

608

613

719

642 583

Net interest income before provision for loan losses Provision for loan losses

9,657 -

9,625 -

9,771 -

10,164 9,718

- 500

Net interest income after provision for loan losses

9,657

9,625

9,771

10,164 9,218

Noninterest Income:

Service charges on deposits accounts Net gain on sale of loans

913

901

787

663 690

1,146

1,865

2,147

2,217 2,362

Net loan servicing income Debit card interchange fees

402

186

90

36 369

Net gains on sales of securities available-for-sale Net other gains (losses)

1,079 -

1,168 -

1,146 -

1,218 1,027

(4)

5

52

Increase in cash surrender value of bank-owned life insurance Other

86

77

78

296

317

457

- 7 72 479

- 42 87 458

Total noninterest income

3,918

4,519

4,757

4,692 5,035

Noninterest Expenses:

Salaries and employee benefits Occupancy and equipment Data processing

6,222

6,403

6,118

5,753 5,734

1,212

1,109

1,273

1,092 1,182

708

694

689

641 591

Debit card processing and issuance Advertising and marketing Amortization of intangibles Professional fees

513

533

489

503 425

108

115

141

70 99

96

95

96

96 104

389

436

434

399 390

Office Supplies Telephone Other

86

127

74

93 77

140

143

139

144 141

697

850

865

673 968

Total noninterest expenses

10,171

10,505

10,318

9,464 9,711

Income before income taxes Provision for income taxes

3,404

3,639

4,210

5,392 4,542

785

728

988

1,337 1,112

Net income

$

2,619

$

2,911

$

3,222

$

4,055

$ 3,430

Key Ratios

Basic Earnings Per Common Share Diluted Earnings Per Common Share Dividends Per Common Share

$

  • 0.92 $ 0.92 0.12

  • 1.02 $ 1.02 0.11

Book Value Per Common Share Tangible Book Value Per Share

30.59

35.50

26.58

31.41

Tangible Book Value Excluding AOCI Per Share Number of Shares Outstanding

31.27

30.64

  • 1.13 $ 1.13 0.11 35.29 31.17 29.64

1.30 $ 1.02

1.30 1.02

0.11 0.11

34.97 32.95

30.81 29.40

28.56 27.98

2,873,528

2,848,078

  • 2,848,078 2,842,828 3,359,613

Average Number of Shares Outstanding

2,864,082

2,848,109

2,848,109

3,118,265 3,372,684

Net Interest Margin (1)

Efficiency Ratio (1)(2) Return on Assets

Return on Common Equity

3.13% 74.35% 0.80% 10.82%

3.12% 73.75% 0.89% 11.41%

3.11% 70.70% 0.96% 12.57%

3.37% 3.52%

63.28% 65.53%

1.26% 1.16%

15.74% 12.44%

(1) Non-GAAP Presentations: Management discloses certain non-GAAP financial measures to evaluate and measure the Company's performance, including the presentation of net interest income, net interest margin and efficiency ratio calculations on a taxable equivalent basis ("TE"). The net interest margin is calculated by dividing net interest income on a TE basis by average earning assets for the period. Management believes this measure provides investors with information regarding comparative balance sheet profitability.

(2) The efficiency ratio is calculated as noninterest expense divided by the sum of net interest income on an TE basis, noninterest income less any securities gains (losses) or other gains (losses), and also includes a TE adjustment on interest on tax-exempt securities, loans, and the increases in cash surrender value of bank-owned life insurance.

(UNAUDITED)

Cash and due from banks

Interest-bearing deposits in banks and other Securities

Net loans/leases

Goodwill and core deposit intangible Other assets

Total assets

March 31, 2022

As of

December 31,

September 30,

June 30,

March 31,

2021

2021

2021

2021

(Amounts in thousands, except per share data)

$

  • 13,413 $

10,846 $

16,536 $

16,418 $ 15,108

42,103

57,882

104,722

140,073 50,199

484,420

506,894

472,472

448,072 379,187

716,456

698,877

658,323

666,738 700,399

11,536

11,628

11,723

11,819 11,914

62,715

55,428

54,218

53,629 50,826

  • $ 1,330,643

    $

    1,341,555

    $

    1,317,994

    $

    1,336,749

    $ 1,207,633

    Deposits

    Subordinated debentures Senior secured term note Borrowings

    Other liabilities Stockholders' equity

    Total liabilities and stockholders' equity

    $

    • 1,199,627 $

    • 1,197,041 $

    • 1,169,085 $

    1,188,997 $ 1,068,197

    19,812

    20,155

    20,155

    20,155 5,155

    10,889

    11,278

    11,667

    12,056 12,445

    5,000

    5,000

    5,000

    5,000 4,000

    7,414

    6,985

    11,585

    11,131 7,138

    87,901

    101,096

    100,502

    99,410 110,698

  • $ 1,330,643

    $

    1,341,555

    $

    1,317,994

    $

    1,336,749

    $

    1,207,633

    ASSET QUALITY DATA (Amounts in thousands)

    March 31, 2022

    December 31, 2021

    September 30, 2021

    June 30, 2021

    March 31, 2021

    Non-accrual loans

    Accruing loans past due 90 days or more Troubled debt restructures - accruing Total nonperforming loans

    Other real estate owned Total nonperforming assetsTotal loans

    Allowance for loan losses

    Loans, less allowance for loan losses Nonperforming Assets to total Assets Nonperforming loans to total loans Allowance for loan losses to total loans Allowance for loan losses to nonperforming loans

    ROLLFORWARD OF ALLOWANCE

    $

    4,983 - 1,802

    $

    5,430 - 1,843

    $

    7,827 - 1,975

    $

    8,228 -$

    6,361 -

    1,958 1,996

    $ $ $

    6,785 75

    $

    7,273 24

    $

    9,802 -$

    10,186 -$ 8,357 -6,860

    $

    7,297

    $

    9,802

    $

    10,186

    $ 8,357

    • 727,451 $ 10,995

    • 710,002 $ 11,125

    • 669,547 $ 11,224

    677,967 $ 711,515

    11,229 11,116

  • $ 716,456 $

698,877 $

658,323 $

0.52%

666,738 $ 700,399

0.54%

0.74%

0.93%

0.76% 0.69%

1.02%

1.46%

1.51%

1.50% 1.17%

1.57%

1.68%

162.0%

1.66% 1.56%

153.0%

114.5%

For the Quarter Ended

110.2% 133.0%

March 31, 2022

December 31, 2021

September 30, 2021

June 30, 2021

March 31, 2021

Beginning Balance

Provision

Loans charged off Loan recoveries Net charge-offs Ending Balance

$

11,125 -$

11,224 -$

11,229

$

11,116

$ 10,764

- - 500

214

181

103 61 582

84

82

98 174 434

130

99

5

(113) 148

$

10,995

$

11,125

$

11,224

$

11,229

$ 11,116

BLACKHAWK BANCORP, INC. AND SUBSIDIARIES

ANALYSIS of AVERAGE BALANCES & TAX EQUIVALENT INTEREST RATES

Average Balance Sheet with Resultant Interest and Rates

(Dollars in thousands - unaudited)

(Yields on a tax-equivalent basis) (1)

For the Quarter EndedMarch 31, 2022 Average

December 31, 2021

March 31, 2021

Average

Balance Interest

RateAverage BalanceAverageInterestInterest Earning Assets: Interest-bearing deposits and other Investment securities:

$

  • 48,261 $

24

Taxable investment securities Tax-exempt investment securities

Total Investment securities Loans

448,643 53,820 502,463 714,666

2,068 365 2,433 7,808

  • 0.20% $ 1.87% 3.50% 2.04% 4.43%

    • 61,530 $

    33

    447,836 52,749 500,585 674,818

    1,960 369 2,329 7,876

    Rate 0.21% $ 1.74% 3.57% 1.93% 4.63%Average BalanceAverageInterest

    Rate

    • 74,108 $

    • 41 0.22%

      320,740 52,122 372,862 685,654

    • 1,721 2.18%

    • 384 3.83%

    • 2,105 2.41%

    • 8,155 4.82%

    Total Earning Assets Allowance for loan losses Cash and due from banks Other assets

    • $ 1,265,390 $ 10,265

  • 3.32% $ 1,236,933 $

10,238

3.32% $ 1,132,624 $ 10,301 3.73%

  • (11,136)

    (11,192) (11,075)

    14,956 65,912

    16,557 16,052

    62,310 58,706

    Total Assets

  • $ 1,335,122

$ 1,304,608

$ 1,196,307

Interest Bearing Liabilities:

Interest bearing checking accounts Savings and money market deposits Time deposits

$

  • 313,986 $

139

0.18%

$

  • 308,166 $

116

0.15%

$

284,527

  • $ 161 0.23%

    423,755

    68

    0.06%

    423,311

    77

    0.07%

    356,615

  • 84 0.10%

    77,755

    115

    0.60%

    78,625

    126

    0.64%

    81,807

  • 170 0.84%

Total interest bearing deposits Subordinated debentures and notes Borrowings

815,496

322

0.16%

810,102

319

0.16%

722,949

  • 415 0.23%

    20,037

    195

    3.94%

    20,155

    196

    3.85%

    5,155

  • 41 3.23%

    16,071

    91

    2.29%

    16,306

    98

    2.40%

    26,369

  • 127 1.96%

Total Interest-Bearing Liabilities

$

851,604

  • $ 608

    Interest Rate Spread

    0.29% 3.03%

    $

    846,563

    • $ 613

      0.29%

      • $ 754,473

        $ 583 0.31%

        3.03% 3.42%

        Noninterest checking accounts

        Other liabilities

        Total liabilities

        Total Stockholders' equity Total Liabilities and Stockholders' Equity

        378,414 6,899 1,236,917 98,205

        349,482 322,667 7,342 7,373

        1,203,387 101,221

        1,084,513 111,794

        • $ 1,335,122

        • $ 1,304,608

      • $ 1,196,307

      Net Interest Income/Margin

  • $ 9,657

3.13%

  • $ 9,625

3.12%

$ 9,718 3.52%

(1) Management discloses certain non-GAAP financial measures to evaluate and measure the Company's performance including a presentation of net interest income with a net interest margin ratio on a tax-equivalent (TE) basis. The net interest margin is calculated by dividing net interest income on a TE basis by average earning assets for the period. Management believes this measure provides investors with information regarding comparative balance sheet profitability. Nonaccrual loans are included in the above-stated average balances.

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Blackhawk Bancorp Inc. published this content on 26 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 April 2022 19:02:01 UTC.