BELOIT, WI / ACCESSWIRE / July 23, 2018 / Blackhawk Bancorp, Inc. (OTCQX: BHWB) reported net income of $2.02 million for the quarter ended June 30, 2018, a 39% increase over the $1.5 million earned the previous quarter, and a 16% increase over the $1.75 million earned the second quarter of 2017. Fully diluted earnings per share for the second quarter increased $0.17 to $0.61 compared to $0.44 the quarter ended March 31, 2018, and increased by $0.08 compared to $0.53 for the quarter ended June 30, 2017. The quarterly results produced a return on average assets of 1.06% and a return on average equity of 10.25%.
For the six months ended June 30, 2108 the company reported net income of $3.5 million, a 20% increase over the $2.9 million reported for the first half of 2017. Diluted earnings per share for the first six months of 2018 increased 6% to $1.05 compared to $0.99 the first half of 2017. The six month results produced a return on average assets of 0.94% and a return on average equity of 8.92%.
Total assets increased by $60.8 million, or 8%, to $781.4 million at June 30, 2018 compared to $720.6 million as of December 31, 2017. Gross loans increased by $15.9 million, or 3%, during the first six months of 2018 to $501.5 million compared to $485.6 million at the end of the prior year. Total deposits increased by $76.0 million, or 12%, to $693.0 million compared to $617.0 million at the end of 2017.
The following table summarizes the net income and the key ratios for the last five quarters:
Quarter Ended | ||||||||||||||||||||
(dollars in thousands, except per share data) | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | |||||||||||||||
Net income | $ | 2,016 | $ | 1,452 | $ | 1,371 | $ | 1,932 | $ | 1,745 | ||||||||||
Diluted EPS | $ | 0.61 | $ | 0.44 | $ | 0.42 | $ | 0.59 | $ | 0.53 | ||||||||||
ROAA | 1.06 | % | .81 | % | .77 | % | 1.09 | % | 1.01 | % | ||||||||||
ROAE | 10.25 | % | 7.56 | % | 6.89 | % | 10.01 | % | 9.38 | % | ||||||||||
Net interest margin (1) | 3.91 | % | 3.83 | % | 3.79 | % | 3.77 | % | 3.68 | % | ||||||||||
Efficiency ratio (1) (2) | 70.4 | % | 73.8 | % | 72.5 | % | 65.8 | % | 66.2 | % | ||||||||||
- Net interest margin and efficiency ratio are calculated on a tax-equivalent basis
- Efficiency ratio is calculated excluding net securities gains (losses) and other gains (losses)
"The investments we've made in attracting talent, expanding our footprint and updating technology are beginning to generate the revenue growth we expected," said Todd James the company's Chief Executive Officer. "Thanks to the visionary leadership of Rick Bastian, who has recently announced his retirement, Blackhawk is well positioned to capitalize on current and future growth opportunities. We have a strong team in place and plan to continue building on our entrepreneurial culture and the unique value proposition that we offer to customers," he added.
Net Interest Income
Net interest income for the second quarter totaled $6.78 million, increasing $505 thousand, or 8%, compared to $6.28 million for the quarter ended March 31, 2018, and by $1.12 million, or 20%, compared to $5.66 million for the second quarter last year. The net interest margin for the quarter ended June 30, 2018 was 3.91%, an eight basis point increase compared to 3.83% for the quarter ended March 31, 2018 and a twenty-three basis point increase over the 3.68% net interest margin for the second quarter of last year.
Net interest income for the six months ended June 30, 2018 increased by $2.2million, or 20%, compared to the first half of 2017. The net interest margin for the first half of 2018 increased by twenty-six basis points to 3.87% compared to 3.61% for the first half of 2017.
The increases in net interest income and improvements in the net interest margin are the result of strong loan and deposit growth. Average total loans for the quarter ended June 30, 2017 equaled $517.4 million, a 7% increase over the most recent quarter ended March 31, 2018 and a 22% increase over the same quarter a year ago. Near the end of the second quarter 2018 there were some anticipated pay-offs and sale of a participation interest in a large credit, which reduced total loans to $501.5 million at the end of the quarter compared to total average loans for the quarter of $517.4 million.
"Prospects for continued growth remain strong," said David Adkins, the company's Chief Operating Officer and CEO of the bank subsidiary. "A robust economy and the market disruption due to industry consolidation has created an opportunity to attract customers that expect the attention and service that only a true community bank can provide," he added.
Average total loans for the first half of the year increased $81.9 million, or 20%, to $501.4 million compared to $419.5 million the first six months of 2017. Total average total deposits increased $61.3 million, or 10%, to $652.9 million compared to $591.6 the first half of 2017.
Provision for Loan Losses and Credit Quality
The provision for loan losses for the quarter ended June 30, 2018 totaled $370 thousand, compared to $510 thousand for quarter ended March 31, 2018 and $360 thousand for the second quarter of 2017. The provision for loan losses for the first six months of 2018 totaled $880 thousand, a 22% increase over the $720 thousand provision recorded in the first half of 2017. While credit metrics continue to improve, the company has continued to record loan loss provisions to accommodate loan growth.
Total nonperforming assets, which include troubled debt restructures that are performing in accordance with their modified terms, equaled $8.56 million as of June 30, 2018 compared to $8.62 million as of March 31, 2018 and $11.3 million at June 30, 2017. At June 30, 2018, the ratio of nonperforming assets to total assets equaled 1.10% compared to 1.16% at March 31, 2018 and 1.60% at June 30, 2017.
While total nonperforming assets are little changed from the most recent quarter, other measures of credit quality continue to improve. The company realized net loan recoveries of $116 thousand for the first half of 2018, with additional recoveries expected in the third quarter. The net recoveries, combined with the $880 thousand provision for loan losses has increased the ratio of the allowance for loan losses to total loans to 1.30% as of June 30, 2018 compared to 1.22% at March 31, 2018 and 1.09% at the end of 2017. The ratio of the allowance for loan losses to nonperforming loans increased to 79.2% as of June 30, 2018 compared to 75.9% at March 31, 2018 and 67.2% at the end of 2017.
Non-Interest Income and Operating Expenses
Non-interest income for the quarter ended June 30, 2018 totaled $3.04 million, a $544 thousand increase compared to $2.49 million for the quarter ended March 31, 2018 and a $486 thousand increase over $2.55 million for the second quarter of 2017. The increase compared to the most recent quarter included a $490 thousand increase in gain on sale of loans. The increase in non-interest income compared to the second quarter of 2017 includes growth in gain on sale of loans, debit card revenue and gains on the sale of securities available-for-sale.
Operating expenses for the quarter ended June 30, 2018 totaled $6.96 million, increasing by $406 thousand compared to the quarter ended March 31, 2018, and by $1.4 million, or 24%, compared to the second quarter of 2017. The increase in expenses compared to the second quarter of last year included a $921 thousand increase in salary and benefits and a $266 thousand increase in occupancy and equipment expense.
Operating expenses for the six-month period ended June 30, 2018 totaled $13.5 million, a 20% increase over the first half of 2017. The increase included a $1.6 million increase on salary and benefits and a $492 thousand increase on occupancy and equipment. The increases are the result of talent added to increase capacity in the company's business and mortgage banking areas. The increase also includes costs related to the Janesville, Wisconsin full service branch, which opened in the fourth 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 six months of the year increased by $13 thousand, or 2%, compared to the first half of 2017 despite a 16% increase in pre-tax income. The company realized approximately $300 thousand of savings in the first half of the year due to 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, emphasizing the value of its personal attention and service that remains unmatched by larger competitors. Growth, combined with ongoing strengthening of the company's credit quality, is expected to lead to improved earnings. Growth and earnings could however be tempered by 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 one commercial office in 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 is available on the company's website at www.blackhawkbank.com.
For further information:
Blackhawk Bancorp, Inc.
Todd James
tjames@blackhawkbank.com
David Adkins
dadkins@blackhawkbank.com
Phone: (608) 364-8911
BLACKHAWK BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
JUNE 30, 2018 AND DECEMBER 31, 2017
(UNAUDITED)
June 30, | December 31, | |||||||
Assets | 2018 | 2017 | ||||||
(Amounts in thousands, except | ||||||||
share and per share data) | ||||||||
Cash and due from banks | $ | 16,942 | $ | 19,326 | ||||
Interest-bearing deposits in banks and other | 43,001 | 2,215 | ||||||
Total cash and cash equivalents | 59,943 | 21,541 | ||||||
Securities available-for-sale | 181,466 | 176,350 | ||||||
Loans held for sale | 6,496 | 747 | ||||||
Federal Home Loan Bank stock, at cost | 491 | 654 | ||||||
Loans, less allowance for loan losses of $6,499 and $5,503 | ||||||||
at June 30, 2018 and December 31, 2017, respectively | 488,509 | 479,539 | ||||||
Premises and equipment, net | 12,133 | 11,120 | ||||||
Goodwill | 5,037 | 5,037 | ||||||
Mortgage Servicing rights | 2,677 | 2,508 | ||||||
Cash surrender value of bank-owned life insurance | 10,666 | 10,512 | ||||||
Other assets | 14,011 | 12,613 | ||||||
Total assets | $ | 781,429 | $ | 720,621 | ||||
Liabilities and Stockholders' Equity | ||||||||
Liabilities | ||||||||
Deposits: | ||||||||
Noninterest-bearing | $ | 116,304 | $ | 115,724 | ||||
Interest-bearing | 576,664 | 501,271 | ||||||
Total deposits | 692,968 | 616,995 | ||||||
Subordinated debentures and notes (including $1,031 at fair value at | ||||||||
June 30, 2018 and December 31, 2017) | 5,155 | 5,155 | ||||||
Other borrowings | - | 16,228 | ||||||
Other liabilities | 3,856 | 4,109 | ||||||
Total liabilities | 701,979 | 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 June 30, 2018 and | ||||||||
December 31, 2017, respectively | 34 | 34 | ||||||
Additional paid-in capital | 33,198 | 32,874 | ||||||
Retained earnings | 47,963 | 45,114 | ||||||
Treasury stock, 91,613 and 91,043 shares at cost as of June 30, 2018 | ||||||||
and December 31, 2017, respectively | (1,032 | ) | (1,124 | ) | ||||
Accumulated other comprehensive income (loss) | (713 | ) | 1,236 | |||||
Total stockholders' equity | 79,450 | 78,134 | ||||||
Total liabilities and stockholders' equity | $ | 781,429 | $ | 720,621 | ||||
BLACKHAWK BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
For the Quarter Ended | ||||||||||||||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||
2018 | 2018 | 2017 | 2017 | 2017 | ||||||||||||||||
(Amounts in thousands, except per share data) | ||||||||||||||||||||
Interest Income: | ||||||||||||||||||||
Interest and fees on loans | $ | 6,610 | $ | 5,875 | $ | 5,659 | $ | 5,357 | $ | 4,980 | ||||||||||
Interest on available-for-sale securities: | ||||||||||||||||||||
Taxable | 839 | 772 | 685 | 806 | 802 | |||||||||||||||
Tax-exempt | 359 | 375 | 402 | 384 | 389 | |||||||||||||||
Interest on interest-bearing deposits and other | 59 | 73 | 13 | 44 | 45 | |||||||||||||||
Total interest income | 7,867 | 7,095 | 6,759 | 6,591 | 6,216 | |||||||||||||||
Interest Expense: | ||||||||||||||||||||
Interest on deposits | 991 | 752 | 635 | 527 | 438 | |||||||||||||||
Interest on subordinated debentures and notes | 59 | 53 | 47 | 47 | 85 | |||||||||||||||
Interest on senior secured term note | - | - | - | - | - | |||||||||||||||
Interest on other borrowings | 34 | 12 | 29 | 44 | 32 | |||||||||||||||
Total interest expense | 1,084 | 817 | 711 | 618 | 555 | |||||||||||||||
Net interest income before provision for loan losses | 6,783 | 6,278 | 6,048 | 5,973 | 5,661 | |||||||||||||||
Provision for loan losses | 370 | 510 | 710 | 360 | 360 | |||||||||||||||
Net interest income after provision for loan losses | 6,413 | 5,768 | 5,338 | 5,613 | 5,301 | |||||||||||||||
Noninterest Income: | ||||||||||||||||||||
Service charges on deposits accounts | 769 | 741 | 787 | 791 | 730 | |||||||||||||||
Net gain on sale of loans | 960 | 470 | 695 | 687 | 679 | |||||||||||||||
Net loan servicing income | 173 | 177 | 175 | 179 | 186 | |||||||||||||||
Debit card interchange fees | 675 | 695 | 623 | 608 | 605 | |||||||||||||||
Net gains on sales of securities available-for-sale | 59 | 6 | (159 | ) | 104 | (13 | ) | |||||||||||||
Net other gains (losses) | (17 | ) | (6 | ) | 1 | (7 | ) | (12 | ) | |||||||||||
Increase in cash surrender value of bank-owned life insurance | 73 | 81 | 74 | 74 | 74 | |||||||||||||||
Other | 346 | 330 | 337 | 344 | 303 | |||||||||||||||
Total noninterest income | 3,038 | 2,494 | 2,533 | 2,780 | 2,552 | |||||||||||||||
Noninterest Expenses: | ||||||||||||||||||||
Salaries and employee benefits | 4,050 | 3,867 | 3,828 | 3,355 | 3,129 | |||||||||||||||
Occupancy and equipment | 891 | 832 | 709 | 637 | 625 | |||||||||||||||
Data processing | 417 | 395 | 362 | 382 | 374 | |||||||||||||||
Debit card processing and issuance | 336 | 293 | 300 | 309 | 301 | |||||||||||||||
Advertising and marketing | 143 | 153 | 180 | 111 | 101 | |||||||||||||||
Professional fees | 316 | 256 | 305 | 305 | 250 | |||||||||||||||
Office Supplies | 79 | 110 | 82 | 66 | 59 | |||||||||||||||
Telephone | 126 | 124 | 122 | 118 | 116 | |||||||||||||||
Other | 604 | 526 | 615 | 560 | 644 | |||||||||||||||
Total noninterest expenses | 6,962 | 6,556 | 6,503 | 5,843 | 5,599 | |||||||||||||||
Income before income taxes | 2,489 | 1,706 | 1,368 | 2,550 | 2,254 | |||||||||||||||
Provision for income taxes | 473 | 254 | (3 | ) | 618 | 509 | ||||||||||||||
Net income | $ | 2,016 | $ | 1,452 | $ | 1,371 | $ | 1,932 | $ | 1,745 | ||||||||||
Key Ratios | ||||||||||||||||||||
Basic Earnings Per Common Share | $ | 0.61 | $ | 0.44 | $ | 0.42 | $ | 0.59 | $ | 0.53 | ||||||||||
Diluted Earnings Per Common Share | 0.61 | 0.44 | 0.42 | 0.59 | 0.53 | |||||||||||||||
Dividends Per Common Share | 0.10 | 0.08 | 0.08 | 0.08 | 0.08 | |||||||||||||||
Net Interest Margin (1) | 3.91 | % | 3.83 | % | 3.79 | % | 3.77 | % | 3.68 | % | ||||||||||
Efficiency Ratio (1)(2) | 70.41 | % | 73.79 | % | 72.45 | % | 65.77 | % | 66.23 | % | ||||||||||
Return on Assets | 1.06 | % | 0.81 | % | 0.77 | % | 1.09 | % | 1.01 | % | ||||||||||
Return on Common Equity | 10.25 | % | 7.56 | % | 6.89 | % | 10.01 | % | 9.38 | % | ||||||||||
(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 | ||||||||||||||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||
2018 | 2018 | 2017 | 2017 | 2017 | ||||||||||||||||
(Amounts in thousands, except per share data) | ||||||||||||||||||||
Cash and due from banks | $ | 16,942 | $ | 16,727 | $ | 19,326 | $ | 16,633 | $ | 17,251 | ||||||||||
Interest-bearing deposits in banks and other | 43,001 | 13,503 | 2,215 | 7,415 | 7,368 | |||||||||||||||
Securities | 181,466 | 171,814 | 176,350 | 177,702 | 195,409 | |||||||||||||||
Net loans/leases | 495,005 | 497,630 | 480,286 | 460,684 | 428,827 | |||||||||||||||
Goodwill | 5,037 | 5,037 | 5,037 | 5,037 | 5,037 | |||||||||||||||
Other assets | 39,978 | 37,743 | 37,407 | 37,165 | 36,561 | |||||||||||||||
Total assets | $ | 781,429 | $ | 742,454 | $ | 720,621 | $ | 704,636 | $ | 690,453 | ||||||||||
Deposits | $ | 692,968 | $ | 656,114 | $ | 616,995 | $ | 606,539 | $ | 591,949 | ||||||||||
Subordinated debentures | 5,155 | 5,155 | 5,155 | 5,155 | 5,155 | |||||||||||||||
Borrowings | - | - | 16,228 | 11,858 | 14,583 | |||||||||||||||
Other liabilities | 3,856 | 3,185 | 4,109 | 3,815 | 3,120 | |||||||||||||||
Stockholders' equity | 79,450 | 78,000 | 78,134 | 77,269 | 75,646 | |||||||||||||||
Total liabilities and stockholders' equity | $ | 781,429 | $ | 742,454 | $ | 720,621 | $ | 704,636 | $ | 690,453 | ||||||||||
ASSET QUALITY DATA | ||||||||||||||||||||
(Amounts in thousands) | June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||||||
| 2018 | 2018 | 2017 | 2017 | 2017 | ||||||||||||||||
Non-accrual loans | $ | 3,539 | $ | 3,511 | $ | 3,657 | $ | 5,852 | $ | 5,679 | ||||||||||
Accruing loans past due 90 days or more | 388 | 139 | - | - | - | |||||||||||||||
Troubled debt restructures - accruing | 4,283 | 4,456 | 4,527 | 4,886 | 5,177 | |||||||||||||||
Total nonperforming loans | $ | 8,210 | $ | 8,106 | $ | 8,184 | $ | 10,738 | $ | 10,856 | ||||||||||
Other real estate owned | 350 | 511 | 470 | 343 | 442 | |||||||||||||||
Total nonperforming assets | $ | 8,560 | $ | 8,617 | $ | 8,654 | $ | 11,081 | $ | 11,298 | ||||||||||
Total loans | $ | 501,504 | $ | 503,779 | $ | 485,789 | $ | 465,929 | $ | 434,657 | ||||||||||
Allowance for loan losses | $ | 6,499 | $ | 6,149 | $ | 5,503 | $ | 5,864 | $ | 5,613 | ||||||||||
| $ | 495,005 | $ | 497,630 | $ | 480,286 | $ | 460,065 | $ | 429,044 | |||||||||||
Nonperforming Assets to total Assets | 1.10 | % | 1.16 | % | 1.17 | % | 1.54 | % | 1.60 | % | ||||||||||
Nonperforming loans to total loans | 1.64 | % | 1.61 | % | 1.63 | % | 2.30 | % | 2.50 | % | ||||||||||
Allowance for loan losses to total loans | 1.30 | % | 1.22 | % | 1.09 | % | 1.26 | % | 1.29 | % | ||||||||||
Allowance for loan losses to nonperforming loans | 79.2 | % | 75.9 | % | 67.2 | % | 54.6 | % | 51.7 | % | ||||||||||
For the Quarter Ended | ||||||||||||||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||
ROLLFORWARD OF ALLOWANCE | 2018 | 2018 | 2017 | 2017 | 2017 | |||||||||||||||
Beginning Balance | $ | 6,149 | $ | 5,503 | $ | 5,864 | $ | 5,613 | $ | 5,307 | ||||||||||
Provision | 370 | 510 | 710 | 360 | 360 | |||||||||||||||
Loans charged off | 178 | 52 | 1,326 | 156 | 224 | |||||||||||||||
Loan recoveries | 158 | 188 | 255 | 47 | 170 | |||||||||||||||
Net charge-offs | 20 | (136 | ) | 1,071 | 109 | 54 | ||||||||||||||
Ending Balance | $ | 6,499 | $ | 6,149 | $ | 5,503 | $ | 5,864 | $ | 5,613 | ||||||||||
BLACKHAWK BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Six months ended June 30, | ||||||||
2018 | 2017 | |||||||
(Amounts in thousands, except per share data) | ||||||||
Interest Income: | ||||||||
Interest and fees on loans | $ | 12,485 | $ | 9,668 | ||||
Interest on available-for-sale securities: | ||||||||
Taxable | 1,611 | 1,566 | ||||||
Tax-exempt | 734 | 760 | ||||||
Interest on interest-bearing deposits and other | 132 | 59 | ||||||
Total interest income | 14,962 | 12,053 | ||||||
Interest Expense: | ||||||||
Interest on deposits | 1,743 | 839 | ||||||
Interest on subordinated debentures and notes | 112 | 247 | ||||||
Interest on senior secured term note | - | 67 | ||||||
Interest on other borrowings | 46 | 41 | ||||||
Total interest expense | 1,901 | 1,194 | ||||||
Net interest income before provision for loan losses | 13,061 | 10,859 | ||||||
Provision for loan losses | 880 | 720 | ||||||
Net interest income after provision for loan losses | 12,181 | 10,139 | ||||||
Noninterest Income: | ||||||||
Service charges on deposits accounts | 1,510 | 1,398 | ||||||
Net gain on sale of loans | 1,430 | 1,057 | ||||||
Net loan servicing income | 350 | 378 | ||||||
Debit card interchange fees | 1,370 | 1,181 | ||||||
Net gains (losses) on sales of securities available-for-sale | 65 | (13 | ) | |||||
Net other gains (losses) | (23 | ) | (26 | ) | ||||
Increase in cash surrender value of bank-owned life insurance | 154 | 157 | ||||||
Other | 676 | 614 | ||||||
Total noninterest income | 5,532 | 4,746 | ||||||
Noninterest Expenses: | ||||||||
Salaries and employee benefits | 7,917 | 6,311 | ||||||
Occupancy and equipment | 1,723 | 1,231 | ||||||
Data processing | 812 | 772 | ||||||
Debit card processing and issuance | 629 | 573 | ||||||
Advertising and marketing | 296 | 202 | ||||||
Professional fees | 572 | 509 | ||||||
Office Supplies | 189 | 140 | ||||||
Telephone | 250 | 228 | ||||||
Other | 1,130 | 1,309 | ||||||
Total noninterest expenses | 13,518 | 11,275 | ||||||
Income before income taxes | 4,195 | 3,610 | ||||||
Provision for income taxes | 727 | 714 | ||||||
Net income | $ | 3,468 | $ | 2,896 | ||||
Key Ratios | ||||||||
Basic Earnings Per Common Share | $ | 1.05 | $ | 0.99 | ||||
Diluted Earnings Per Common Share | 1.05 | 0.99 | ||||||
Dividends Per Common Share | 0.18 | 0.12 | ||||||
Net Interest Margin (1) | 3.87 | % | 3.61 | % | ||||
Efficiency Ratio (1)(2) | 72.01 | % | 70.22 | % | ||||
Return on Assets | 0.94 | % | 0.84 | % | ||||
Return on Common Equity | 8.92 | % | 7.83 | % | ||||
(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
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) | For the Quarter Ended | |||||||||||||||||||||||||||||||||||
June 30, 2018 | March 31, 2018 | June 30, 2017 | ||||||||||||||||||||||||||||||||||
Average | Average | Average | Average | Average | Average | |||||||||||||||||||||||||||||||
Balance | Interest | Rate | Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||||||||||||||||||||
Interest Earning Assets: | ||||||||||||||||||||||||||||||||||||
Interest-bearing deposits and other | $ | 14,326 | $ | 59 | 1.64 | % | $ | 20,001 | $ | 73 | 1.48 | % | $ | 17,945 | $ | 45 | 1.00 | % | ||||||||||||||||||
Investment securities: | ||||||||||||||||||||||||||||||||||||
Taxable investment securities | 127,448 | 839 | 2.64 | % | 120,523 | 772 | 2.60 | % | 146,999 | 802 | 2.19 | % | ||||||||||||||||||||||||
Tax-exempt investment securities | 47,889 | 359 | 3.92 | % | 51,004 | 375 | 3.83 | % | 53,339 | 389 | 4.56 | % | ||||||||||||||||||||||||
Total Investment securities | 175,337 | 1,198 | 2.99 | % | 171,527 | 1,147 | 2.96 | % | 200,338 | 1,191 | 2.82 | % | ||||||||||||||||||||||||
Loans | 517,412 | 6,610 | 5.12 | % | 485,284 | 5,875 | 4.91 | % | 423,430 | 4,980 | 4.73 | % | ||||||||||||||||||||||||
Total Earning Assets | $ | 707,075 | $ | 7,867 | 4.52 | % | $ | 676,812 | $ | 7,095 | 4.32 | % | $ | 641,713 | $ | 6,216 | 4.03 | % | ||||||||||||||||||
Allowance for loan losses | (6,403 | ) | (5,800 | ) | (5,473 | ) | ||||||||||||||||||||||||||||||
Cash and due from banks | 17,228 | 18,080 | 15,204 | |||||||||||||||||||||||||||||||||
Other assets | 41,613 | 41,744 | 41,452 | |||||||||||||||||||||||||||||||||
Total Assets | $ | 759,513 | $ | 730,836 | $ | 692,896 | ||||||||||||||||||||||||||||||
Interest Bearing Liabilities: | ||||||||||||||||||||||||||||||||||||
Interest bearing checking accounts | $ | 225,104 | $ | 294 | 0.52 | % | $ | 224,529 | $ | 241 | 0.43 | % | $ | 216,514 | $ | 181 | 0.34 | % | ||||||||||||||||||
Savings and money market deposits | 225,411 | 397 | 0.71 | % | 207,427 | 250 | 0.49 | % | 179,203 | 74 | 0.17 | % | ||||||||||||||||||||||||
Time deposits | 90,779 | 300 | 1.33 | % | 90,261 | 261 | 1.17 | % | 80,043 | 183 | 0.95 | % | ||||||||||||||||||||||||
Total interest bearing deposits | 541,294 | 991 | 0.73 | % | 522,217 | 752 | 0.58 | % | 475,760 | 438 | 0.37 | % | ||||||||||||||||||||||||
Subordinated debentures and notes | 5,155 | 59 | 4.59 | % | 5,155 | 53 | 4.16 | % | 6,831 | 85 | 5.01 | % | ||||||||||||||||||||||||
Borrowings | 6,999 | 34 | 1.95 | % | 3,242 | 12 | 1.55 | % | 12,595 | 32 | 1.04 | % | ||||||||||||||||||||||||
Total Interest-Bearing Liabilities | $ | 553,448 | $ | 1,084 | 0.79 | % | $ | 530,614 | $ | 817 | 0.62 | % | $ | 495,186 | $ | 555 | 0.45 | % | ||||||||||||||||||
Interest Rate Spread | 3.73 | % | 3.70 | % | 3.58 | % | ||||||||||||||||||||||||||||||
Noninterest checking accounts | 123,689 | 118,376 | 119,466 | |||||||||||||||||||||||||||||||||
Other liabilities | 3,472 | 3,935 | 3,665 | |||||||||||||||||||||||||||||||||
Total liabilities | 680,609 | 652,925 | 618,317 | |||||||||||||||||||||||||||||||||
Total Stockholders' equity | 78,904 | 77,911 | 74,579 | |||||||||||||||||||||||||||||||||
Total Liabilities and | ||||||||||||||||||||||||||||||||||||
Stockholders' Equity | $ | 759,513 | $ | 730,836 | $ | 692,896 | ||||||||||||||||||||||||||||||
Net Interest Income/Margin | $ | 6,783 | 3.91 | % | $ | 6,278 | 3.83 | % | $ | 5,661 | 3.68 | % | ||||||||||||||||||||||||
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) | For the Six Months Ended | |||||||||||||||||||||||
June 30, 2018 | June 30, 2017 | |||||||||||||||||||||||
Average | Average | Average | Average | |||||||||||||||||||||
Balance | Interest | Rate | Balance | Interest | Rate | |||||||||||||||||||
Interest Earning Assets: | ||||||||||||||||||||||||
Interest-bearing deposits and other | $ | 17,148 | $ | 132 | 1.55 | % | $ | 13,104 | $ | 59 | 0.93 | % | ||||||||||||
Investment securities: | ||||||||||||||||||||||||
Taxable investment securities | 124,005 | 1,611 | 2.62 | % | 144,365 | 1,566 | 2.19 | % | ||||||||||||||||
Tax-exempt investment securities | 49,438 | 734 | 3.90 | % | 52,114 | 760 | 4.54 | % | ||||||||||||||||
Total Investment securities | 173,443 | 2,345 | 2.99 | % | 196,479 | 2,326 | 2.81 | % | ||||||||||||||||
Loans | 501,437 | 12,485 | 5.02 | % | 419,495 | 9,668 | 4.65 | % | ||||||||||||||||
Total Earning Assets | $ | 692,028 | $ | 14,962 | 4.42 | % | $ | 629,078 | $ | 12,053 | 4.00 | % | ||||||||||||
Allowance for loan losses | (6,103 | ) | (5,318 | ) | ||||||||||||||||||||
Cash and due from banks | 17,652 | 16,498 | ||||||||||||||||||||||
Other assets | 41,676 | 40,701 | ||||||||||||||||||||||
Total Assets | $ | 745,253 | $ | 680,959 | ||||||||||||||||||||
Interest Bearing Liabilities: | ||||||||||||||||||||||||
Interest bearing checking accounts | $ | 224,818 | $ | 535 | 0.48 | % | $ | 212,878 | $ | 329 | 0.31 | % | ||||||||||||
Savings and money market deposits | 216,469 | 647 | 0.60 | % | 177,535 | 143 | 0.16 | % | ||||||||||||||||
Time deposits | 90,521 | 561 | 1.25 | % | 82,903 | 367 | 0.89 | % | ||||||||||||||||
Total interest bearing deposits | 531,808 | 1,743 | 0.66 | % | 473,316 | 839 | 0.36 | % | ||||||||||||||||
Subordinated debentures | 5,155 | 112 | 4.38 | % | 9,031 | 247 | 5.52 | % | ||||||||||||||||
Borrowings | 5,131 | 46 | 1.82 | % | 11,840 | 108 | 1.85 | % | ||||||||||||||||
Total Interest-Bearing Liabilities | $ | 542,094 | $ | 1,901 | 0.71 | % | $ | 494,187 | $ | 1,194 | 0.49 | % | ||||||||||||
Interest Rate Spread | 3.71 | % | 3.51 | % | ||||||||||||||||||||
Noninterest checking accounts | 121,047 | 118,235 | ||||||||||||||||||||||
Other liabilities | 3,702 | 3,717 | ||||||||||||||||||||||
Total liabilities | 666,843 | 616,139 | ||||||||||||||||||||||
Total Stockholders' equity | 78,410 | 64,820 | ||||||||||||||||||||||
Total Liabilities and | ||||||||||||||||||||||||
Stockholders' Equity | $ | 745,253 | $ | 680,959 | ||||||||||||||||||||
Net Interest Income/Margin | $ | 13,061 | 3.87 | % | $ | 10,859 | 3.61 | % | ||||||||||||||||
SOURCE: Blackhawk Bancorp, Inc.
