BELOIT, WI / ACCESSWIRE / April 29, 2019 / Blackhawk Bancorp, Inc. (OTCQX: BHWB) reported that for the three months ended March 31, 2019, the Company’s net income totaled $1.08 million, as compared to $2.10 million for the previous quarter, and $1.45 million for the quarter ended March 31, 2018. The 2019 first quarter results included $1.34 million (after-tax) of acquisition, transition, and integration expenses. Excluding these expenses, the 2019 first-quarter net income would have been $2.42 million, a $324,000, or 15%, increase compared to the linked quarter ending December 31, 2018, and a $968,000, or 67%, increase over the first quarter of last year.
Fully diluted earnings per share for the three months ended March 31, 2019, was $0.33, a decrease of $0.31, as compared to $0.64 for the quarter ended December 31, 2018, and a decrease of $0.11 as compared to $0.44 for the quarter ended March 31, 2018. Excluding the acquisition, transition and integration expenses mentioned above, fully diluted earnings per share for the first quarter of 2019 would have been $0.73, increasing by 14% and 66% compared to the quarters ended December 31, 2018, and March 31, 2018, respectively.
The first quarter results produced a Return on Average Equity (ROAE) of 5.12% and a Return on Average Assets (ROAA) of .50%. Excluding the acquisition, transition, and integration expenses the first quarter ROAE and ROAA would have been 11.49% and 1.11%, respectively. “What a great start to the new year,” said Todd James, Chairman and Chief Executive Officer. “Our strategy of expansion and investment in talent and infrastructure continues to drive core earnings growth, producing meaningful value for our customers and shareholders”, he added.
On March 1, 2019, the Company completed its previously announced acquisition of First McHenry Corporation (First McHenry). The transaction was a $23.0 million all-cash purchase that was funded with cash on hand and a $14.0 million senior note. “The integration process is progressing as planned and we couldn’t be more pleased with how the employees have come together to ensure a smooth transition for our new customers,” said James. “The actual acquisition costs incurred are in line with our initial projections and the Company is on track to merge First McHenry’s subsidiary, First National Bank of McHenry, into Blackhawk Bank in the third quarter of this year,” James concluded.
Total assets increased by $149.1 million, or 18.2%, to $966.4 million at March 31, 2019, as compared to $817.3 million as of December 31, 2018. The asset growth in the first quarter was essentially all attributable to the closing of the First McHenry transaction. At closing, $174.3 million of assets were added to the Company’s balance sheet, including a core deposit intangible of $2.6 million and goodwill of $5.1 million. After the closing, approximately $40 million of the acquired securities were sold, with the proceeds being used primarily to reduce borrowings. Net loans grew by $38.2 million, or 7.1%, during the first quarter to $580.0 million, as compared to $541.8 million, at the end of the prior year. However, excluding $41.5 million of net loans from the acquisition, net loans decreased by $3.3 million during the first quarter. Total deposits increased by $168.9 million, or 24.6%, to $854.5 million as compared to $685.6 million at the end of 2018, including $150.1 million of deposits from the First McHenry acquisition.
Net Interest Income
Net interest income totaled $7.79 million for the quarter ending March 31, 2019, an increase of $572,000, or 7.9%, as compared to $7.22 million for the fourth quarter of 2018, and an increase of $1.51 million, or 24.1%, as compared $6.28 million for the quarter ended March 31, 2018. The increase in net interest income compared to the most recent quarter was driven by growth in earnings assets, while the net interest margin increased by just one basis point to 3.92%. This growth included a $28.3 million, or 5.3% increase in average total loans, a $27.9 million, or 13.9% increase in average investment securities and a $19.6 million increase in average interest-bearing deposits at other banks. The First McHenry acquisition contributed $14.3 million and $23.7 million to the increases in total average loans and total average investment securities, respectively. Average total deposits increased by $76.5 million, or 11.1%, including a $52.1 million contribution from the First McHenry acquisition. The increase in net interest income compared to the first quarter of 2018 was driven by both growth and an improvement in the net interest margin, with average total earning assets increasing by $143.4 million, or 21.2%, and the net interest margin improving by nine basis points to 3.91%. The earning asset growth included a $78.6 million, or 16.2% increase in average total loans and a $57.6 million, or 33.6%, increase average investment securities. Average total deposits increased by $123.5 million, or 19.3%.
Provision for Loan Losses and Credit Quality
The provision for loan losses for the quarter ended March 31, 2019, totaled $270,000, as compared to $150,000 for the quarter ended December 31, 2018, and $510,000 for the first quarter of 2018.
Total nonperforming assets, which include troubled debt restructures that are performing in accordance with their modified terms, equaled $7.70 million as of March 31, 2019, as compared to $6.23 million as of December 31, 2018, and $8.62 million at March 31, 2018. The First McHenry acquisition contributed $801,000 to the increase of nonperforming assets as of March 31, 2019. At March 31, 2019, the ratio of nonperforming assets to total assets equaled 0.80%, as compared to 0.76% at December 31, 2018, and 1.16% at March 31, 2018. The allowance for loan losses to total loans was 1.28% as of March 31, 2019, as compared to 1.32% at December 31, 2018, and 1.22% as of March 31, 2018. The ratio of the allowance for loan losses to nonperforming loans decreased to 102.5% as of March 31, 2019, as compared to 119.8% at December 31, 2018, and 75.9% at March 31, 2018. In addition to the balance of the allowance for loan losses, the balance sheet includes a $621,000 credit-related valuation discount attributable to the non-credit impaired loans acquired in the First McHenry transaction.
Non-Interest Income and Operating Expenses
Non-interest income for the quarter ended March 31, 2019, totaled $2.98 million, which was a $111,000 increase as compared to $2.87 million for the quarter ended December 31, 2018, and a $486,000 increase over the $2.49 million total for the first quarter of 2018. The 2019 first quarter results included a total of $47,000 of deposit service fees, debit interchange and other fee income from the First McHenry acquisition. Excluding the First McHenry contribution, the non-interest income increase compared to the most recent quarter was driven by a $178,000 increase in net securities gains, an $83,000 increase in interchange fees, and a $155,000 increase in other income. The increases were offset by decreases in revenue from the sale and servicing of mortgage loans and deposit service fees. When compared to the first quarter of 2018 non-interest income excluding the First McHenry Contribution, increased $439,000. The increase included a $153,000 increase in net securities gains, a $106,000 increase revenue from the sale and servicing of mortgage loans and a $178,000 increase in deposit service fees, interchange fees, and other income.
Operating expenses for the first quarter ending March 31, 2019, totaled $9.25 million, increasing $1.95 million, or 26.6%, as compared to the quarter ended December 31, 2018, and $2.70 million, or 41.1%, as compared to the first quarter of 2018. The 2019 first quarter expenses include $1.83 million in nonrecurring expenses related to the First McHenry acquisition and integration, including integrative salaries and benefits expense of $225,000, $1.35 million in data-processing contract termination and negotiated conversion fees and $257,000 in professional fees. In addition, the First McHenry acquisition contributed an additional $287,000 to operating expenses related to on-going operations.
Income Taxes
The provision for income taxes was $173,000 in the first quarter of 2019 as compared to $538,000 for the quarter ended December 31, 2018, and $254,000 for the first quarter of 2018. Note that the Company’s effective tax rate differs from statutory tax rates primarily due to tax-exempt income from municipal securities and loans, increases in cash surrender value of life insurance, tax benefits of a captive insurance company, and tax credits related to a Low-Income Housing Tax Credit investment.
Capital
Shareholders’ equity increased $3.1 million to $87.4 million as of March 31, 2019, as compared to $84.3 million at December 31, 2018, and $78.0 million at March 31, 2018. With the completion of the First McHenry transaction, $174.3 million of assets were added to the Company’s balance sheet, which included a core deposit intangible asset of $2.6 million and goodwill of $5.1 million. With those additions, tangible capital to tangible assets decreased to 7.83% as of March 31, 2019, as compared to 9.76% at December 31, 2018, and 9.89% as of March 31, 2018. The Company is considered well capitalized under all regulatory requirements.
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. In addition to such organic growth opportunities, Blackhawk may also pursue growth through selective acquisition opportunities. Growth, combined with the ongoing strengthening of the company’s credit quality, is expected to lead to continued earnings growth. Growth and earnings could, however, be tempered by such occurrences as uncertain economic conditions, competitive pressures, changes in 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 and First National Bank of McHenry. 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 net interest income to interest-earning assets, the net interest margin ratio, and efficiency ratio calculations on a taxable-equivalent basis. The Company believes that these non-GAAP measures are helpful because they provide investors additional information to compare operating performance in a manner similar to management, the industry, bank stock analysts, and bank regulators. Non-GAAP measures are also used to assist investor comparison by identifying nonrecurring events such as the 2019 acquisition-related expenses (estimated after-tax) and the impact such net expenses 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 this 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.
CONTACT:
Blackhawk Bancorp, Inc.
Todd J. James, Chairman & CEO
tjames@blackhawkbank.com
Mary King McGovern, SVP & CFO
mmcgovern@blackhawkbank.com
Phone: (608) 364-8911
BLACKHAWK BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
MARCH 31, 2019 AND DECEMBER 31, 2018
(UNAUDITED)
March 31,
December 31,
Assets
2019
2018
(Dollars in thousands, except
share and per share data)
Cash and due from banks
$
14,581
$
16,677
Interest-bearing deposits in banks and other
35,862
2,760
Total cash and cash equivalents
50,443
19,437
Equity securities at fair value
2,295
2,250
Securities available-for-sale
268,370
198,670
Loans held for sale
3,347
5,164
Federal Home Loan Bank stock, at cost
708
1,643
Loans, less allowance for loan losses of $7,545 and $7,339
at March 31, 2019 and December 31, 2018, respectively
580,003
541,760
Premises and equipment, net
21,004
14,874
Goodwill
10,183
5,037
Core Deposit Intangible
2,585
–
Mortgage servicing rights
3,005
2,969
Cash surrender value of bank-owned life insurance
10,895
10,812
Other assets
13,598
14,671
Total assets
$
966,436
$
817,287
Liabilities and Stockholders’ Equity
Liabilities
Deposits:
Noninterest-bearing
$
158,086
$
121,024
Interest-bearing
696,419
564,615
Total deposits
854,505
685,639
Subordinated debentures and notes (including $1,031 at fair value at
March 31, 2019 and December 31, 2018)
5,155
5,155
Senior secured term note
14,000
–
Other borrowings
–
36,500
Other liabilities
5,360
5,701
Total liabilities
879,020
732,995
Stockholders’ equity
Common stock, $0.01 par value, 10,000,000 shares authorized;
3,391,166 and 3,369,192 shares issued as of March 31, 2019 and
December 31, 2018, respectively
34
34
Additional paid-in capital
33,632
33,478
Retained earnings
52,759
52,011
Treasury stock, 104,570 and 97,570 shares at cost as of March 31, 2019
and December 31, 2018, respectively
(1,391
)
(1,204
)
Accumulated other comprehensive income (loss)
2,382
(27
)
Total stockholders’ equity
87,416
84,292
Total liabilities and stockholders’ equity
$
966,436
$
817,287
BLACKHAWK BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Three Months Ended March 31,
2019
2018
(Amounts in thousands, except per share data)
Interest Income:
Interest and fees on loans
$
7,542
$
5,875
Interest on available-for-sale securities:
Taxable
1,345
772
Tax-exempt
448
375
Interest on interest-bearing deposits and other
158
73
Total interest income
9,493
7,095
Interest Expense:
Interest on deposits
1,463
752
Interest on subordinated debentures and notes
65
53
Interest on senior secured term note
67
–
Interest on other borrowings
105
12
Total interest expense
1,700
817
Net interest income before provision for loan losses
7,793
6,278
Provision for loan losses
270
510
Net interest income after provision for loan losses
7,523
5,768
Noninterest Income:
Service charges on deposits accounts
808
741
Net gain on sale of loans
581
470
Net loan servicing income
172
177
Debit card interchange fees
789
695
Net gains on sales of securities available-for-sale
159
6
Increase in cash surrender value of bank-owned life insurance
83
81
Other
388
324
Total noninterest income
2,980
2,494
Noninterest Expenses:
Salaries and employee benefits
4,585
3,867
Occupancy and equipment
992
832
Data processing
1,827
395
Debit card processing and issuance
334
293
Advertising and marketing
108
153
Amortization of intangibles
40
–
Professional fees
579
256
Office Supplies
86
110
Telephone
116
124
Other
584
526
Total noninterest expenses
9,251
6,556
Income before income taxes
1,252
1,706
Provision for income taxes
173
254
Net income
$
1,079
$
1,452
Key Ratios
Basic Earnings Per Common Share
$
0.33
$
0.44
Diluted Earnings Per Common Share
0.33
0.44
Dividends Per Common Share
0.10
0.08
Net Interest Margin (1)
3.92
%
3.83
%
Efficiency Ratio (1)(2)
86.07
%
73.79
%
Return on Assets
0.50
%
0.81
%
Return on Common Equity
5.12
%
7.56
%
(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
March 31,
December 31,
September 30,
June 30,
March 31,
2019
2018
2018
2018
2018
(Dollars in thousands, except per share data)
Interest Income:
Interest and fees on loans
$
7,542
$
7,174
$
6,884
$
6,610
$
5,875
Interest on available-for-sale securities:
Taxable
1,345
1,062
980
839
772
Tax-exempt
448
431
389
359
375
Interest on interest-bearing deposits and other
158
41
208
59
73
Total interest income
9,493
8,708
8,461
7,867
7,095
Interest Expense:
Interest on deposits
1,463
1,336
1,213
991
752
Interest on subordinated debentures and notes
65
62
59
59
53
Interest on senior secured term note
67
–
–
–
–
Interest on other borrowings
105
89
–
34
12
Total interest expense
1,700
1,487
1,272
1,084
817
Net interest income before provision for loan losses
7,793
7,221
7,189
6,783
6,278
Provision for loan losses
270
150
150
370
510
Net interest income after provision for loan losses
7,523
7,071
7,039
6,413
5,768
Noninterest Income:
Service charges on deposits accounts
808
849
829
769
741
Net gain on sale of loans
581
886
1,070
960
470
Net loan servicing income
172
170
171
173
177
Debit card interchange fees
789
683
663
675
695
Net gains on sales of securities available-for-sale
159
(19
)
–
59
6
Increase in cash surrender value of bank-owned life insurance
83
73
72
73
81
Other
388
227
336
329
324
Total noninterest income
2,980
2,869
3,141
3,038
2,494
Noninterest Expenses:
Salaries and employee benefits
4,585
4,279
4,081
4,050
3,867
Occupancy and equipment
992
824
826
891
832
Data processing
1,827
425
428
417
395
Debit card processing and issuance
334
334
339
336
293
Advertising and marketing
108
176
126
143
153
Amortization of intangibles
40
–
–
–
–
Professional fees
579
443
350
316
256
Office Supplies
86
91
77
79
110
Telephone
116
129
125
126
124
Other
584
605
555
604
526
Total noninterest expenses
9,251
7,306
6,907
6,962
6,556
Income before income taxes
1,252
2,634
3,273
2,489
1,706
Provision for income taxes
173
538
695
473
254
Net income
$
1,079
$
2,096
$
2,578
$
2,016
$
1,452
Key Ratios
Basic Earnings Per Common Share
$
0.33
$
0.64
$
0.78
$
0.61
$
0.44
Diluted Earnings Per Common Share
0.33
0.64
0.78
0.61
0.44
Dividends Per Common Share
0.10
0.10
0.10
0.10
0.08
Net Interest Margin (1)
3.92
%
3.91
%
3.91
%
3.91
%
3.83
%
Efficiency Ratio (1)(2)
86.07
%
71.37
%
66.55
%
70.41
%
73.79
%
Return on Assets
0.50
%
1.05
%
1.29
%
1.06
%
0.81
%
Return on Common Equity
5.12
%
10.13
%
12.67
%
10.25
%
7.56
%
(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
March 31,
December 31,
September 30,
June 30,
March 31,
2019
2018
2018
2018
2018
(Amounts in thousands, except per share data)
Cash and due from banks
$
14,581
$
16,677
$
19,526
$
16,942
$
16,727
Interest-bearing deposits in banks and other
35,862
2,760
5,878
43,001
13,503
Securities
270,665
200,920
197,507
181,466
171,814
Net loans/leases
583,350
546,924
502,463
495,005
497,630
Goodwill
10,183
5,037
5,037
5,037
5,037
Other assets
51,795
44,969
41,943
39,978
37,743
Total assets
$
966,436
$
817,287
$
772,354
$
781,429
$
742,454
Deposits
$
854,505
$
685,639
$
680,136
$
692,968
$
656,114
Subordinated debentures
5,155
5,155
5,155
5,155
5,155
Borrowings
14,000
36,500
–
–
–
Other liabilities
5,360
5,701
6,241
3,856
3,185
Stockholders’ equity
87,416
84,292
80,822
79,450
78,000
Total liabilities and stockholders’ equity
$
966,436
$
817,287
$
772,354
$
781,429
$
742,454
ASSET QUALITY DATA
(Amounts in thousands)
March 31,
December 31,
September 30,
June 30,
March 31,
2019
2018
2018
2018
2018
Non-accrual loans
$
3,815
$
2,312
$
3,362
$
3,539
$
3,511
Accruing loans past due 90 days or more
–
17
–
388
139
Troubled debt restructures – accruing
3,546
3,797
3,873
4,283
4,456
Total nonperforming loans
$
7,361
$
6,126
$
7,235
$
8,210
$
8,106
Other real estate owned
339
104
237
350
511
Total nonperforming assets
$
7,700
$
6,230
$
7,472
$
8,560
$
8,617
Total loans
$
590,895
$
554,263
$
509,674
$
501,504
$
503,779
Allowance for loan losses
$
7,545
$
7,339
$
7,211
$
6,499
$
6,149
$
583,350
$
546,924
$
502,463
$
495,005
$
497,630
Nonperforming Assets to total Assets
0.80
%
0.76
%
0.97
%
1.10
%
1.16
%
Nonperforming loans to total loans
1.25
%
1.11
%
1.42
%
1.64
%
1.61
%
Allowance for loan losses to total loans
1.28
%
1.32
%
1.41
%
1.30
%
1.22
%
Allowance for loan losses to nonperforming loans
102.5
%
119.8
%
99.7
%
79.2
%
75.9
%
For the Quarter Ended
March 31,
December 31,
September 30,
June 30,
March 31,
ROLLFORWARD OF ALLOWANCE
2019
2018
2018
2018
2018
Beginning Balance
$
7,339
$
7,211
$
6,499
$
6,149
$
5,503
Provision
270
150
150
370
510
Loans charged off
102
76
105
178
52
Loan recoveries
38
54
667
158
188
Net charge-offs
64
22
(562
)
20
(136
)
Ending Balance
$
7,545
$
7,339
$
7,211
$
6,499
$
6,149
BLACKHAWK BANCORP, INC. AND SUBSIDIARIES
ANALYSIS of AVERAGE BALANCES WITH RESULTANT INTEREST and TAX-EQUIVALENT RATES
Average Balance Sheet with Resultant Interest and Rates
(Dollars in thousands – unaudited)
(Yields on a tax-equivalent basis) (1)
For the Quarter Ended
March 31, 2019
December 31, 2018
March 31, 2018
Average
Average
Average
Average
Average
Average
Balance
Interest
Rate
Balance
Interest
Rate
Balance
Interest
Rate
Interest Earning Assets:
Interest-bearing deposits and other
$
27,139
$
158
2.37
%
$
7,554
$
41
2.18
%
$
20,001
$
73
1.48
%
Investment securities:
Taxable investment securities
170,477
1,345
3.20
%
144,565
1,062
2.91
%
120,523
772
2.60
%
Tax-exempt investment securities
58,645
448
4.03
%
56,653
431
3.86
%
51,004
375
3.83
%
Total Investment securities
229,122
1,793
3.41
%
201,218
1,493
3.18
%
171,527
1,147
2.96
%
Loans
563,927
7,542
5.42
%
535,659
7,174
5.31
%
485,284
5,875
4.91
%
Total Earning Assets
$
820,188
$
9,493
4.76
%
$
744,431
$
8,708
4.71
%
$
676,812
$
7,095
4.32
%
Allowance for loan losses
(7,446
)
(7,277
)
(5,800
)
Cash and due from banks
16,567
17,442
18,080
Other assets
52,023
39,495
41,744
Total Assets
$
881,332
$
794,091
$
730,836
Interest Bearing Liabilities:
Interest bearing checking accounts
$
243,543
$
315
0.52
%
$
220,536
$
267
0.48
%
$
224,529
$
241
0.43
%
Savings and money market deposits
267,052
642
0.97
%
232,669
559
0.95
%
207,427
250
0.49
%
Time deposits
111,365
506
1.84
%
107,599
510
1.88
%
90,261
261
1.17
%
Total interest bearing deposits
621,960
1,463
0.95
%
560,804
1,336
0.95
%
522,217
752
0.58
%
Subordinated debentures and notes
5,155
65
5.11
%
5,155
62
4.76
%
5,155
53
4.16
%
Borrowings
21,616
172
3.23
%
14,257
89
2.43
%
3,242
12
1.55
%
Total Interest-Bearing Liabilities
$
648,731
$
1,700
1.06
%
$
580,216
$
1,487
1.02
%
$
530,614
$
817
0.62
%
Interest Rate Spread
3.70
%
3.69
%
3.70
%
Noninterest checking accounts
142,178
126,816
118,376
Other liabilities
4,993
4,956
3,935
Total liabilities
795,902
711,988
652,925
Total Stockholders’ equity
85,430
82,103
77,911
Total Liabilities and
Stockholders’ Equity
$
881,332
$
794,091
$
730,836
Net Interest Income/Margin (1)
$
7,793
3.92
%
$
7,221
3.91
%
$
6,278
3.83
%
(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 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.
ReleaseID: 543418
