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Blackhawk Bancorp Announces Record Earnings for 2021

BELOIT, WI / ACCESSWIRE / January 24, 2022 / Blackhawk Bancorp, Inc. (OTCQX:BHWB) reported record earnings for the year ended December 31, 2021 with net income of $13.62 million exceeding the previous year's net income of $10.85 million by 26%. Diluted Earnings per Share (EPS) for 2021 increased 38% to $4.47 compared to the previous record of $3.25 reported for 2020. The Company's results for the year ended 2021 produced a Return on Average Equity (ROAE) of 12.99% and a Return on Average Assets of 1.06%.

The increase in earnings for 2021 as compared to 2020 includes an increase in net interest income of $1.43 million and a decrease in the provision for loan losses of $7.10 million. These earnings improvements were partially offset by a $0.68 million decrease in noninterest income and a $3.94 million increase in operating expenses.

The Company reported net income of $2.91 million for the quarter ended December 31, 2021, a $0.31 million, or 10%, decrease compared to the $3.22 million earned the previous quarter, and a $0.44 million, or 13%, decrease compared to the $3.35 million earned the fourth quarter of 2020. EPS for the fourth quarter was $1.02, a decrease of $0.11 as compared to $1.13 for the quarter ended September 30, 2021, and an increase of $0.02 as compared to $1.00 reported for the quarter ended December 31, 2020. The 2021 fourth quarter results produced a ROAE of 11.41% and a ROAA of 0.89%.

The $0.44 million decrease in net income for the fourth quarter of 2021 compared to the fourth quarter of the prior year reflects a $1.34 million decrease in revenue from the sale and servicing of mortgage loans, a $0.43 million decrease in net gain on sale of securities, and a $1.18 million increase in operating expenses. These earnings declines were partially offset by a $1.72 million decrease in the provision for loan losses. Despite the 13% decrease in net income compared to the fourth quarter of 2020, EPS increased by 2%, reflecting the repurchase of 525,546 shares, or 15.6%, of the Company's outstanding common stock in the second quarter of 2021.

"We're extremely pleased to be reporting another year of record earnings," said Todd James, the Company's Chairman and CEO. "While the 2021 performance was boosted by several factors that aren't expected to be as strong going forward such as Paycheck Protection Program (PPP) fees, low provision costs and strong mortgage activity, the Company is well positioned going into 2022. In 2021 we transitioned our Kane County, IL loan production office to a full service branch in downtown St. Charles, IL, added several experienced business bankers to our team, and gained momentum in our campground and RV park lending initiative, all of which contributed to the 6% loan growth we realized in the fourth quarter," added James.

Total assets of the Company increased by $23.5 million, or 2%, to $1.34 billion as of December 31, 2021 compared to $1.32 billion at September 30, 2021. Total gross loans increased by $40.5 million, or 6%, to $710.0 million compared to $669.5 million as of September 30, 2021. Total deposits grew by $28.0 million during the quarter to $1.20 billion compared to $1.17 billion at September 30, 2021.

Total assets of the Company increased by $199.9 million, or 18%, to $1.34 billion as of December 31, 2021, compared to $1.14 billion as of December 31, 2020. Total gross loans increased by $30.9 million, or 5%, and total investment securities increased $154.8 million, or 44%, during the year ended 2021. Total deposits increased by $209.8 million, or 21%, to $1.20 billion compared to $987.3 million at the end of 2020.

Net Interest Income

Net interest income for the year ended December 31, 2021 increased by $1.43 million, or 4%, to $39.28 million compared to $37.85 million for 2020. The increase in net interest income includes a $1.50 million increase in PPP loan fees recognized. As of December 31, 2021, the balance of PPP loans was $22.6 with $0.90 million of deferred fees remaining, which will be recognized in future periods. While net interest income increased, the net interest margin for 2021 decreased by 55 basis points to 3.27% compared to 3.82% for 2020. The decrease in the net interest margin compared to the prior year reflects a $219.1 million, or 24%, increase in average deposits that were deployed in cash equivalent investments and the investment securities portfolio. The deposit growth was driven by the tremendous amount of economic stimulus that was distributed through the various COVID relief programs, which when combined with the labor and supply chain issues being experienced by our commercial customers, dampened loan demand. Average total loans for the year increased by $8.4 million, or 1% to $683.9 million compared to $675.5 million in 2020. Net of PPP loans, average total loans for the full year 2021 decreased by $3.5 million compared to the prior year. The Company achieved a 17 basis point decrease in the cost of deposits to 0.14% compared to 0.31% for the twelve months ended December 31, 2020; however, the decrease was more than offset by a 71 basis point decrease in the tax-equivalent yield on average total earning assets to 3.48% as compared to 4.19% for 2020.

For the fourth quarter of 2021 net interest income totaled $9.63 million, a decrease of $0.15 million, or 1%, compared to the third quarter of 2021, and an increase of $0.18 million, or 2%, compared to the fourth quarter of the prior year. The net interest margin was 3.12% for the fourth quarter of 2021 compared to 3.11% for the quarter ended September 30, 2021, and 3.63% for the fourth quarter of 2020. The tax-equivalent yield on earning assets for the fourth quarter of 2021 dropped 56 basis points to 3.32%, compared to 3.88% for the fourth quarter of 2020, while at the same time, the cost of deposits decreased only eight basis points to 0.11% compared to 0.19% the same quarter the year before. In addition, interest expense on subordinated debentures increased by $0.16 million reflecting the issuance of $15 million of subordinated debt, which was used to fund the share repurchase in the second quarter of 2021. Average total deposits for the fourth quarter of 2021 increased by $203.5 million to $1.16 billion compared to $956.1 million in the fourth quarter of 2020. Average total loans for the fourth quarter of 2021 decreased by $3.5 million, or 1%, compared to the fourth quarter of the prior year. Excluding PPP loans, average total loans increased by $38.4 million to $645.9 million compared to $607.5 million for the fourth quarter of 2020.

Provision for Loan Losses and Asset Quality

The provision for loan losses for 2021 decreased by $7.10 million, or 93%, to $.50 million compared to $7.60 million for 2020. The decrease in provision reflects the improved credit outlook, especially as it related to potential losses related to the pandemic. There was no provision for loan losses recorded for the quarter ended December 31, 2021, or September 30, 2021, compared to $1.72 million for the quarter ended December 31, 2020.

Total nonperforming assets, which include troubled debt restructures performing in accordance with their modified terms, equaled $7.3 million as of December 31, 2021, as compared to $9.8 million as of September 30, 2021, and $9.1 million at December 31, 2020. At December 31, 2021, the ratio of nonperforming loans to total loans equaled 1.02%, as compared to 1.46% at September 30, 2021, and 1.34% at December 31, 2020. The allowance for loan losses to total loans was 1.57% as of December 31, 2021, as compared to 1.68% at September 30, 2021, and 1.59% as of December 31, 2020. The allowance for loan losses to nonperforming loans increased to 153.0% as of December 31, 2021, compared to 114.5% at September 30, 2021, and 118.7% at December 31, 2020. As of December 31, 2021, all but $2.4 million of credits that were granted modifications for COVID relief have been returned to normal payments, or are included in the nonperforming asset numbers above. The majority of this amount relates to one commercial credit that is returning to normal payments in January of 2022.

NonInterest Income and Operating Expenses

Noninterest income for 2021 decreased $0.68 million, or 3%, to $19.0 million as compared to $19.68 million for the prior year, including a $1.38 million decrease in revenue from the sale and servicing of mortgage loans and a $0.54 million decrease in net gains on sale of securities. These declines were partially offset by a $0.82 million increase in debit card revenue.

Noninterest income for the quarter ended December 31, 2021, totaled $4.52 million, a $0.24 million decrease compared to $4.76 million the prior quarter and a $1.45 million decrease from the $5.97 million recorded in the fourth quarter of 2020. The decrease in noninterest income compared to the fourth quarter of 2020 was due to a $1.34 million decrease in revenue from the sale and servicing of mortgage loans and a $0.43 million decrease in the net gain on sale of securities. These declines were partially offset by a $0.19 million increase in debit card revenue and a $0.12 million increase in deposit service fees.

Operating expenses for 2021, totaled $40.0 million, a $3.94 million, or 11%, increase over the twelve months of 2020. The increase compared to the twelve months of 2020 included an increase of $2.1 million in salary and employee benefits.

Operating expenses for the quarter ended December 31, 2021, totaled $10.51 million, an increase of $0.19 million, or 2%, compared to the quarter ended September 30, 2021, and an increase of $1.18 million, or 13%, compared to the fourth quarter of 2020. The increase compared to the fourth quarter of 2020 included a $0.55 million increase in salary and employee benefits.

About Blackhawk Bancorp

Blackhawk Bancorp, Inc. is headquartered in Beloit, Wisconsin and is the parent company of Blackhawk Bank. The combined entity operates twelve full-service banking centers which are located in Rock County, Wisconsin and the Illinois counties of Winnebago, Boone, McHenry, Lake, and Kane. 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
tjames@blackhawkbank.com
Phone: (608) 364-8911

Matthew McDonnell, SVP & CFO
mmcdonnell@blackhawkbank.com

BLACKHAWK BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2021 AND DECEMBER 31, 2020
(UNAUDITED)

December 31, December 31,
Assets
2021 2020
(Dollars in thousands, except
share and per share data)
Cash and due from banks
$10,846 $12,012
Interest-bearing deposits in banks and other institutions
55,721 42,119
Total cash and cash equivalents
66,567 54,131
Certificates of deposit in banks and other institutions
2,161 4,159
Equity securities at fair value
2,553 2,517
Securities available-for-sale
504,341 349,565
Loans held for sale
2,585 6,096
Federal Home Loan Bank stock, at cost
2,150 2,150
Loans, less allowance for loan losses of $11,125 and $10,764
at December 31, 2021 and December 31, 2020, respectively
696,292 662,225
Premises and equipment, net
20,778 20,254
Goodwill and core deposit intangible
11,628 12,018
Mortgage servicing rights
3,833 3,409
Cash surrender value of bank-owned life insurance
11,440 11,126
Other assets
17,227 13,949
Total assets
$1,341,555 $1,141,599
Liabilities and Stockholders' Equity
Liabilities
Deposits:
Noninterest-bearing
$380,601 $268,866
Interest-bearing
816,440 718,388
Total deposits
1,197,041 987,254
Subordinated debentures and notes (including $1,031 at fair value at
December 31, 2021 and December 31, 2020)
20,155 5,155
Senior secured term note
11,278 12,833
Other borrowings
5,000 14,000
Other liabilities
6,985 10,602
Total liabilities
1,240,459 1,029,844
Stockholders' equity
Common stock, $0.01 par value, 10,000,000 shares authorized;
3,479,069 and 3,435,348 shares issued as of December 31, 2021 and
December 31, 2020, respectively
35 35
Additional paid-in capital
35,890 35,062
Retained earnings
81,987 69,676
Treasury stock, 630,991 and 62,999 shares at cost as of December 31, 2021
and December 31, 2020, respectively
(18,952) (941)
Accumulated other comprehensive income (loss)
2,136 7,923
Total stockholders' equity
101,096 111,755
Total liabilities and stockholders' equity
$1,341,555 $1,141,599

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

Twelve months ended December 31,
2021 2020
(Amounts in thousands, except per share data)
Interest Income:
Interest and fees on loans
$32,832 $33,441
Interest and dividends on available-for-sale securities:
Taxable
7,269 6,328
Tax-exempt
1,550 1,451
Interest on deposits in other financial institutions
183 276
Total interest income
41,834 41,496
Interest Expense:
Interest on deposits
1,576 2,840
Interest on subordinated debentures
548 182
Interest on senior secured term note
412 498
Interest on other borrowings
21 127
Total interest expense
2,557 3,647
Net interest income before provision for loan losses
39,277 37,849
Provision for loan losses
500 7,600
Net interest income after provision for loan losses
38,777 30,249
Noninterest Income:
Service charges on deposits accounts
3,041 3,035
Net gain on sale of loans
8,592 11,080
Net loan servicing income
681 (431)
Debit card interchange fees
4,559 3,738
Net gains on sales of securities available-for-sale
- 535
Net other gains (losses)
106 -
Increase in cash surrender value of bank-owned life insurance
314 310
Change in value of equity securities
(28) 70
Other
1,739 1,347
Total noninterest income
19,004 19,684
Noninterest Expenses:
Salaries and employee benefits
24,008 21,948
Occupancy and equipment
4,656 4,278
Data processing
2,614 2,383
Debit card processing and issuance
1,950 1,584
Advertising and marketing
425 297
Amortization of core deposit intangible
390 437
Professional fees
1,660 1,531
Office Supplies
371 363
Telephone
568 577
Other
3,355 2,655
Total noninterest expenses
39,997 36,053
Income before income taxes
17,784 13,880
Provision for income taxes
4,165 3,033
Net income
$13,619 $10,847
Key Ratios
Basic Earnings Per Common Share
$4.47 $3.25
Diluted Earnings Per Common Share
4.47 3.25
Dividends Per Common Share
0.44 0.44
Net Interest Margin (1)
3.27% 3.82%
Efficiency Ratio (1)(2)
68.63% 63.14%
Return on Assets
1.06% 1.02%
Return on Common Equity
12.99% 10.35%

(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

December 31, September 30, June 30, March 31, December 31,

2021 2021 2021 2021 2020

(Dollars in thousands, except per share data)
Interest Income:
Interest and fees on loans
$7,876 $8,180 $8,621 $8,155 $8,079
Interest on available-for-sale securities:
Taxable
1,960 1,830 1,759 1,721 1,598
Tax-exempt
369 419 378 384 384
Interest on deposits in other financial institutions
33 61 48 41 33
Total interest income
10,238 10,490 10,806 10,301 10,094
Interest Expense:
Interest on deposits
319 421 421 415 458
Interest on subordinated debentures
196 195 117 41 41
Interest on senior secured term note
98 103 104 107 113
Interest on other borrowings
- - - 20 40
Total interest expense
613 719 642 583 652
Net interest income before provision for loan losses
9,625 9,771 10,164 9,718 9,442
Provision for loan losses
- - - 500 1,715
Net interest income after provision for loan losses
9,625 9,771 10,164 9,218 7,727
Noninterest Income:
Service charges on deposits accounts
901 787 663 690 781
Net gain on sale of loans
1,865 2,147 2,217 2,362 3,572
Net loan servicing income
186 90 36 369 (177)
Debit card interchange fees
1,168 1,146 1,218 1,027 979
Net gains on sales of securities available-for-sale
- - - - 428
Net other gains (losses)
5 52 7 42 -
Increase in cash surrender value of bank-owned life insurance
77 78 72 87 75
Other
317 457 479 458 310
Total noninterest income
4,519 4,757 4,692 5,035 5,968
Noninterest Expenses:
Salaries and employee benefits
6,403 6,118 5,753 5,734 5,851
Occupancy and equipment
1,109 1,273 1,092 1,182 986
Data processing
694 689 641 591 683
Debit card processing and issuance
533 489 503 425 384
Advertising and marketing
115 141 70 99 75
Amortization of intangibles
95 96 96 104 107
Professional fees
436 434 399 390 373
Office Supplies
127 74 93 77 90
Telephone
143 139 144 141 140
Other
850 865 673 968 637
Total noninterest expenses
10,505 10,318 9,464 9,711 9,326
Income before income taxes
3,639 4,210 5,392 4,542 4,369
Provision for income taxes
728 988 1,337 1,112 1,021
Net income
$2,911 $3,222 $4,055 $3,430 $3,348
Key Ratios
Basic Earnings Per Common Share
$1.02 $1.13 $1.30 $1.02 $1.00
Diluted Earnings Per Common Share
1.02 1.13 1.30 1.02 1.00
Dividends Per Common Share
0.11 0.11 0.11 0.11 0.11
Book Value Per Common Share
35.50 35.29 34.97 32.95 33.14
Tangible Book Value Per Share
31.41 31.17 30.81 29.40 29.57
Number of Shares Outstanding
2,848,078 2,848,078 2,842,828 3,359,613 3,372,349
Average Number of Shares Outstanding
2,848,109 2,848,109 3,118,265 3,372,684 3,360,579
Net Interest Margin (1)
3.12% 3.11% 3.37% 3.52% 3.63%
Efficiency Ratio (1)(2)
73.75% 70.70% 63.28% 65.53% 61.80%
Return on Assets
0.89% 0.96% 1.26% 1.16% 1.20%
Return on Common Equity
11.41% 12.57% 15.74% 12.44% 12.08%

(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

December 31, September 30, June 30, March 31, December 31,

2021 2021 2021 2021 2020


(Amounts in thousands, except per share data)
Cash and due from banks
$10,846 $16,536 $16,418 $15,108 $12,012
Interest-bearing deposits in banks and other
57,882 104,722 140,073 50,199 46,278
Securities
506,894 472,472 448,072 379,187 352,082
Net loans/leases
698,877 658,323 666,738 700,399 668,321
Goodwill and core deposit intangible
11,628 11,723 11,819 11,914 12,018
Other assets
55,428 54,218 53,629 50,826 50,888
Total assets
$1,341,555 $1,317,994 $1,336,749 $1,207,633 $1,141,599
Deposits
$1,197,041 $1,169,085 $1,188,997 $1,068,197 $987,254
Subordinated debentures
20,155 20,155 20,155 5,155 5,155
Senior secured term note
11,278 11,667 12,056 12,445 12,833
Borrowings
5,000 5,000 5,000 4,000 14,000
Other liabilities
6,985 11,585 11,131 7,138 10,602
Stockholders' equity
101,096 100,502 99,410 110,698 111,755
Total liabilities and stockholders' equity
$1,341,555 $1,317,994 $1,336,749 $1,207,633 $1,141,599
ASSET QUALITY DATA





(Amounts in thousands)
December 31, September 30, June 30, March 31, December 31,

2021 2021 2021 2021 2020






Non-accrual loans
$5,430 $7,827 $8,228 $6,361 $7,013
Accruing loans past due 90 days or more
- - - - -
Troubled debt restructures - accruing
1,843 1,975 1,958 1,996 2,057
Total nonperforming loans
$7,273 $9,802 $10,186 $8,357 $9,070
Other real estate owned
24 - - - 1
Total nonperforming assets
$7,297 $9,802 $10,186 $8,357 $9,071

Total loans
$710,002 $669,547 $677,967 $711,515 $679,085
Allowance for loan losses
11,125 11,224 11,229 11,116 10,764
Loans, less allowance for loan losses
$698,877 $658,323 $666,738 $700,399 $668,321
Nonperforming Assets to total Assets
0.54% 0.74% 0.76% 0.69% 0.79%
Nonperforming loans to total loans
1.02% 1.46% 1.50% 1.17% 1.34%
Allowance for loan losses to total loans
1.57% 1.68% 1.66% 1.56% 1.59%
Allowance for loan losses to nonperforming loans
153.0% 114.5% 110.2% 133.0% 118.7%

For the Quarter Ended

December 31, September 30, June 30, March 31, December 31,
ROLLFORWARD OF ALLOWANCE
2021 2021 2021 2021 2020
Beginning Balance
$11,224 $11,229 $11,116 $10,764 $9,943
Provision
- - - 500 1,715
Loans charged off
181 103 61 582 1,334
Loan recoveries
82 98 174 434 440
Net charge-offs
99 5 (113) 148 894
Ending Balance
$11,125 $11,224 $11,229 $11,116 $10,764

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 Twelve Months Ended
December 31, 2021 December 31, 2020
Average Average Average Average

Balance Interest Rate Balance Interest Rate
Interest Earning Assets:
Interest-bearing deposits and other
$90,300 $183 0.20% $31,899 $276 0.86%
Investment securities:
Taxable investment securities
387,361 7,269 1.88% 247,389 6,328 2.56%
Tax-exempt investment securities
52,435 1,550 3.76% 46,594 1,451 4.01%
Total Investment securities
439,796 8,819 2.10% 293,983 7,779 2.79%
Loans
683,859 32,832 4.80% 675,466 33,441 4.95%
Total Earning Assets
$1,213,955 $41,834 3.48% $1,001,348 $41,496 4.19%
Allowance for loan losses
(11,180) (9,535)
Cash and due from banks
16,640 16,453
Other assets
60,379 58,475
Total Assets
$1,279,794 $1,066,741
Interest Bearing Liabilities:
Interest bearing checking accounts
$299,213 $636 0.21% $281,053 $807 0.29%
Savings and money market deposits
400,323 366 0.09% 318,169 676 0.21%
Time deposits
78,553 574 0.73% 97,747 1,357 1.39%
Total interest bearing deposits
778,089 1,576 0.20% 696,969 2,840 0.41%
Subordinated debentures
14,689 548 3.73% 5,155 182 3.53%
Borrowings
18,928 433 2.29% 34,227 625 1.83%
Total Interest-Bearing Liabilities
$811,706 $2,557 0.32% $736,351 $3,647 0.50%
Interest Rate Spread
3.16% 3.69%
Noninterest checking accounts
356,227 218,254
Other liabilities
6,995 7,357
Total liabilities
1,174,928 961,962
Total Stockholders' equity
104,866 104,779
Total Liabilities and
Stockholders' Equity
$1,279,794 $1,066,741
Net Interest Income/Margin
$39,277 3.27% $37,849 3.82%

(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
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

December 31, 2021 September 30, 2021 December 31, 2020

Average
Average Average
Average Average
Average

Balance Interest Rate Balance Interest Rate Balance Interest Rate
Interest Earning Assets:









Interest-bearing deposits and other
$61,530 $33 0.21% $119,991 $61 0.20% $30,058 $32 0.43%
Investment securities:
Taxable investment securities
447,836 1,960 1.74% 413,853 1,830 1.75% 285,167 1,598 2.23%
Tax-exempt investment securities
52,749 369 3.57% 52,663 420 4.05% 51,902 384 3.78%
Total Investment securities
500,585 2,329 1.93% 466,516 2,250 2.01% 337,069 1,982 2.47%
Loans
674,818 7,876 4.63% 675,070 8,180 4.81% 678,335 8,079 4.74%
Total Earning Assets
$1,236,933 $10,238 3.32% $1,261,577 $10,491 3.34% $1,045,462 $10,093 3.88%
Allowance for loan losses
(11,192) (11,229) (10,313)
Cash and due from banks
16,557 16,821 16,032
Other assets
62,310 61,274 58,663
Total Assets
$1,304,608 $1,328,443 $1,109,844
Interest Bearing Liabilities:
Interest bearing checking accounts
$308,166 $116 0.15% $300,935 $180 0.24% $261,739 $150 0.23%
Savings and money market deposits
423,311 77 0.07% 423,894 109 0.10% 349,028 98 0.11%
Time deposits
78,625 126 0.64% 76,682 133 0.69% 84,166 210 0.99%
Total interest bearing deposits
810,102 319 0.16% 801,511 422 0.21% 694,933 458 0.26%
Subordinated debentures and notes
20,155 196 3.85% 20,155 195 3.83% 5,155 41 3.19%
Borrowings
16,306 98 2.40% 16,670 103 2.45% 30,186 152 2.01%
Total Interest-Bearing Liabilities
$846,563 $613 0.29% $838,336 $720 0.34% $730,274 $651 0.36%
Interest Rate Spread
3.03% 3.00% 3.52%
Noninterest checking accounts
349,482 381,046 261,182
Other liabilities
7,342 7,381 8,202
Total liabilities
1,203,387 1,226,763 999,658
Total Stockholders' equity
101,221 101,680 110,186
Total Liabilities and
Stockholders' Equity
$1,304,608 $1,328,443 $1,109,844
Net Interest Income/Margin
$9,625 3.12% $9,771 3.11% $9,442 3.63%

(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.



View source version on accesswire.com:
https://www.accesswire.com/685190/Blackhawk-Bancorp-Announces-Record-Earnings-for-2021

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