Blackhawk Bancorp Announces 2019 First Quarter Earnings

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

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

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

Total interest income

9,493

7,095

Interest Expense:

Interest on deposits

1,463

752

Interest on subordinated debentures and notes

Interest on senior secured term note

–

Interest on other borrowings

105

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

Increase in cash surrender value of bank-owned life insurance

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

–

Professional fees

579

256

Office Supplies

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

(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

208

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

Interest on senior secured term note

–

Interest on other borrowings

105

–

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

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
)

–

Increase in cash surrender value of bank-owned life insurance

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

339

336

293

Advertising and marketing

108

176

126

143

153

Amortization of intangibles

–

Professional fees

579

443

350

316

256

Office Supplies

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

0.08

Net Interest Margin (1)

3.92
%

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

(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

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

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

Non-accrual loans

$
3,815

$
2,312

$
3,362

$
3,539

$
3,511

Accruing loans past due 90 days or more

–

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

Beginning Balance

$
7,339

$
7,211

$
6,499

$
6,149

$
5,503

Provision

270

150

370

510

Loans charged off

102

105

178

Loan recoveries

667

158

188

Net charge-offs

(562
)

(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

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

5.11
%

5,155

4.76
%

5,155

4.16
%

Borrowings

21,616

172

3.23
%

14,257

2.43
%

3,242

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

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